TCRLA_Public/020410.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

            Wednesday, April 10, 2002, Vol. 3, Issue 70



AGUAS PROVINCIALES: To Default On External Debt
REPSOL YPF: Hikes Fuel Prices Again To Counter Peso Drop
REPSOL YPF: To Cut 2002 Planned Capital Spending By EUR800 Mln


GLOBAL CROSSING: Adds Three Board Members As Cohen Resigns
MUTUAL RISK: Company Profile


COTEL: Continuing Dispute Threatens Status
LAB: Reveals Plan To Improve Liquidity, Settle Liabilities


ANDERSEN: Brazilian Partners Agree To Merge With Deloitte
ENRON: Amended Complaint Fingers Andersen's Brazilian Affiliates


COEUR D'ALENE: Bankruptcy Filing Likely if June Payments Missed
COEUR D'ALENE: Updates Notes Conversion Status
COEUR D'ALENE: Company Profile
TELEFONICA CTC: Analysts See Slim Chance In Tariff Fight


PAZ DEL RIO: Searching For JV Partners From Home Or Abroad
PAZ DEL RIO: Seeking Clarification on 2 Articles of Law 550
PAZ DEL RIO: President Presents Rescue Plan To Shareholders


CINTRA: Sale's Success On Attractive Investment Terms
HYLSAMEX: Expects US$30 Mln In EBITDA, Unchanged From `01
TRI-NATIONAL DEVELOPMENT: Accusations Mount Over Mexico Property


SIDERPERU: Creditors Approve Debt-Restructuring

     - - - - - - - - - -


AGUAS PROVINCIALES: To Default On External Debt
Aguas Provinciales de Santa Fe S.A., an Argentine water and
sewerage company, said it won't pay its external debt this month,
reports La Nacion. Instead, the Company, which is owned by the
Suez group (ex. Lyonnaise Des Eaux), will only pay US$135,000 of
interest, an installment on a US$574,000 credit originally given
by the IDB (Inter-American Development Bank).

Aguas Provinciales owns shares in Aguas Argentinas and Aguas
Cordobesas, holding almost 40 percent control over these services
for the country. The Company is currently trying to renegotiate
its 30-year concession contract.

          1300 New York Avenue, NW
          Washington, DC 20577
          United States of America
          Phone: 202-623-1000
          Enrique V. Iglesias, President
          K. Burke Dillon, Executive Vice President

          For Investors:
          Hakan Lon‘us, Chief, Funding Section
          Phone: +1-202-623-2441

          Office in Argentina:
          Calle Esmeralda 130, pisos 19 y 20
          Casilla de Correo N  181
          Sucursal 1
          Buenos Aires, Argentina
          Phone: 320-1800
          Fax: 320-1830
          Jorge Elena, Representative
          Juan Jose Olivella, Deputy Representative

REPSOL YPF: Hikes Fuel Prices Again To Counter Peso Drop
Spain's largest oil company Repsol YPF SA boosted gasoline and
diesel prices an average of 5 percent in Argentina, adding to
increases that may top 40 percent this year after the country
devalued its currency, reports Bloomberg.

Last month, Repsol also implemented a 4-percent hike on fuel
prices in Argentina in order to offset the country's currency

Repsol explained that higher prices would help it to reduce
losses at its refineries and keep up with increases in
international fuel prices.

In earnings reports for 2001, Repsol said Argentina's economic
problems prompted it to apply write-offs and make extraordinary
provisions, including a EUR1.45 billion write-down against
reserves, and a provision of EUR1.29 billion against 2001

           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page:
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires

REPSOL YPF: To Cut 2002 Planned Capital Spending By EUR800 Mln
Repsol YPF SA presented analysts with a plan to cut planned
capital spending by EUR800 million this year and continue with an
asset liquidation program, reports AFX.

The Company will be implementing the plans in a bid to reduce
gearing to 30 - 35 percent in 2003. At the end of 2001, gearing
stood at 42.9 percent following adjustments and write-downs to
take into account investments in Argentina, down from 51 percent
a year earlier.

Repsol YPF told analysts that in 2002 it expects to reduce
planned investments at its gas division by EUR430 million,
refining and marketing EUR200 million, exploration and production
EUR150 million and chemicals by EUR20 million.

Total investments are forecast to decline to a maximum of EUR3.2
billion in 2002 from the EUR4.456 billion made in 2001.

Repsol YPF said divestments, including the second tranche of CLH,
Enagas and other disposals, are expected to reduce group debt,
estimated at EUR16.555 billion on Dec 31, by EUR2.5 billion this

Efforts to reduce debt will also include the "dividend policy"
and "cost saving program," Repsol added.

"In 2002, we expect to achieve two thirds of cost savings
targeted for 2005," Repsol YPF said, noting that additional cost
savings of EUR200 million were obtained last year.


GLOBAL CROSSING: Adds Three Board Members As Cohen Resigns
Global Crossing announced three appointments to its board of
directors today:

    -- Alice T. Kane, a consultant for investment banking firm
Blaylock & Partners, L.P. and former chairman and president of
three mutual fund and variable annuity businesses within American
International Group;

    -- Jeremiah D. Lambert, formerly a senior partner with the
law firm of Shook, Hardy & Bacon L.L.P.; and

    -- Myron E. "Mike" Ullman, III, a former director general of
LVMH and former chairman of the Board of DeBeers LV.

"I am pleased to welcome these prominent members of the business
community to our board of directors," said Gary Winnick, chairman
of Global Crossing. "We believe that these three new members,
along with the current members of our board, will provide the
experience and independence to assist Global Crossing in its
restructuring process."

Kane, who will chair Global Crossing's compensation committee and
also serve as a member of the audit committee and special
independent committee, currently acts as a consultant for
Blaylock & Partners, L.P., a full-service investment banking firm
providing underwriting, mergers and acquisitions, and research
and trading services to a broad range of national and
international clients. Prior to joining Blaylock & Partners, Kane
was chairman and president of three mutual fund and variable
annuity businesses within American International Group, having
previously served as a highly regarded executive with New York
Life. She served in several different roles at New York Life,
including executive vice president in charge of asset management
and was the company's youngest, and first woman, executive vice
president and general counsel. During her 30-year career, Kane
has served as a director and member of various boards, including
that of the National Association of Securities Dealers.

Lambert, who will chair Global Crossing's audit committee and
special independent committee, and also serve as a member of the
compensation committee, is a nationally known lawyer whose
practice focuses on corporate clients in regulated industries,
including those in the electricity, natural gas and telecom
sectors. Prior to serving as a senior partner in Shook, Hardy &
Bacon L.L.P., from which he has withdrawn to join the Global
Crossing board of directors, Lambert was the co-founder and chair
of Peabody, Lambert & Meyers. Lambert, who began his legal
practice at Cravath, Swaine & Moore, is a frequent lecturer and
widely published author.

Ullman, who recently retired from full-time corporate activity,
will serve as a member of Global Crossing's compensation and
audit committees, as well as the special independent committee.
He has extensive experience, both domestically and
internationally, in corporations, government and academia. Over
the past 15 years, Ullman has led major businesses in Asia (Wharf
Holdings Ltd.), the U.S. (R.H. Macys & Co., Inc. and DFS Group,
Ltd.) and, most recently, in Europe (LVMH Moet Hennessy Louis
Vuitton and DeBeers LV). Ullman has also served on numerous
business, community and not-for-profit boards.

The Global Crossing board of directors now comprises Gary Winnick
(chairman), Lodwrick Cook (co-chairman), John Legere (chief
executive officer), Joseph P. Clayton (president and chief
executive officer of Sirius Satellite Radio and former president
of Global Crossing North America), Steven J. Green (former U.S.
Ambassador to Singapore), Alice T. Kane, Jeremiah D. Lambert and
Myron E. Ullman.

In separate news, Global Crossing also announced today that
Secretary William S. Cohen has stepped down from his board
position. "We thank Bill Cohen for his dedicated service to
Global Crossing," said Mr. Winnick. Mr. Cohen, who resigned due
to personal time constraints, was appointed to the board of
directors in April 2001.

About Global Crossing

Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.

          Becky Yeamans, +1-974-410-5857,

          Tisha Kresler, +1-973-410-8666

          Ken Simril, +1-310-385-5200

MUTUAL RISK: Company Profile
NAME:  Mutual Risk Management, LTd.
       44 Church Street
       Hamilton HM 12, Bermuda

TELEPHONE:  (441) 295-5688

FAX:  (441) 292-1867


    Robert A. Mulderig, Chairman
    Paul Watson, Chief Operating Officer
    Angus Ayliffe, Chief Financial Officer
    Glenn R. Partridge, Executive Vice President
    Richard O'Brien, Sr. VP, Secretary, and General Counsel
    Douglas E. Boyce, Sr. VP, Chief Underwriting Officer

TYPE OF BUSINESS:  Mutual Risk Management provides risk
management services to clients in the U.S., Bermuda, Barbados,
the Cayman Islands and Europe seeking an alternative risk funding



TRIGGER EVENT:  The Company's announcement that it had a net loss
of $99.2 million, or $2.38 a share, for 2001, compared with a net
loss in 2000 of $5.6 million, or 13 cents a share, was followed
by a number of events: The company defaulted under the terms of
its 9 3/8% convertible exchangeable debentures, its bank credit
facility and its letter of credit facility; On March 21, the
company completed the sale of its fund administration business,
principally Hemisphere Management Ltd., according to the 10-K.
The proceeds of the sale, $100 million after taxes and expenses,
are being used to repay debt. This business had revenues of $35.3
million and net income of $7.9 million in 2001; On March 25, the
company appointed its controller, Angus H. Ayliffe, as chief
financial officer, succeeding interim CFO James Kelly; and A.
Welford Tabor, Michael Esposito, Fiona Luck and K. Bruce Connell,
all designated as directors by holders of the 9 3/8% bonds,
resigned. An additional director, William Galtney, also resigned.

TOTAL REVENUES:  US$487,481,000 (Year-ended 12/31/01)

To see latest financial statements:

Last TCRLA Headline DATE:  Tuesday, April 9, 2001, Vol. 3, Issue


COTEL: Continuing Dispute Threatens Status
Bolivian local telephony cooperative may end up becoming a public
company if the dispute between its workers and its manager,
Detecon, continues without a solution.

In that event, the trade union will have its role limited, and
shareholders would manage Cotel. But such a change would require
approval from the Bolivian government.

Under the management of Detecon, Cotel signed an agreement with
AES Communications that took a 15-percent stake in the Company to
expand its services. Detecon, in May 2001, was awarded an US$8-
million contract to manage Cotel. It took over Cotel's
administration in August of the same year.

Bolivia's government intervened the cooperative in August 2000
after strikes and mismanagement threatened the viability of the
country's largest fixed line operator.

Cotel has about 160,000 lines in service.

LAB: Reveals Plan To Improve Liquidity, Settle Liabilities
Bolivia's flagship airline Lloyd Aereo Bolivia (LAB) has put a
plan on the table designed to improve the Company's liquidity,
and resolve debts made while it was still under the Brazilian air
transportation company Vasp's management.

The plan includes selling and leasing back a Boeing 737 aircraft,
changing the leasing contract of an Airbus 310, and forfeiting
real estate in Cochamba to Caja Petrolera de Salud.

In 2001, LAB posted a loss of US$24 million and now, the
management is looking to balance the Company's finances.

LAB is controlled by investor Ernesto Asbun (50.3 percent), the
pension funds Futuro and Prevision (48 percent), and workers
association (1.7 percent).


ANDERSEN: Brazilian Partners Agree To Merge With Deloitte
Arthur Andersen LLP's Brazilian partners agreed to merge its
operations with rival Deloitte Touche Tohmatsu in South America's
largest country.

The agreement deals a further blow to Arthur Andersen after
several other affiliates broke away from the embattled U.S.
company since it was charged with obstructing an investigation
into the collapse of Enron Corp.

"I have local clients who were worried," said Vitorio Trabulsi,
president of Andersen Brazil, who will be chairman of the board
of the new partnership with Andersen. "Now they have their

Combining the two firms in Brazil will create a partnership with
annual revenue of about BRL300 million (US$130 million), the
biggest of its kind in Brazil, said Alcides Hellmeister, a
managing partner of Deloitte in Brazil who will be president of
the combined firm.

The firm will represent about 200 publicly traded companies out
of about 700 in Brazil, Hellmeister said.

Andersen had 130 clients among publicly traded companies in
Brazil, including Empresa Brasileira de Aeronautica SA, the
world's fourth biggest airline, and Viacao Aerea Rio-Grandense
SA, or Varig, Brazil's biggest airline. Deloitte counts companies
like power company Light Servicos de Eletricidade SA and tobacco
company Souza Cruz SA among its publicly traded clients.


           Belo Horizonte
           Av. Alvares Cabral, 1741 - 9  andar
           Belo Horizonte - MG Brasil
           CEP: 30170-001
           Phone: 55 31 3330 1300
           Fax: 55 31 3330 1400

           R. Marechal Deodoro, 717 - 7  andar
           Curitiba - PR Brasil
           CEP: 80020-912
           Phone: 55 41 223 9511
           Fax: 55 41 232 6714

           Porto Alegre
           Av. Carlos Gomes, 403 - 10 , 11  e 12  andares
           Porto Alegre - RS Brasil
           CEP: 90480-003
           Phone: 55 51 3327 8800
           Fax: 55 51 3328 3031

           Rio de Janeiro
           Praia de Botafogo, 300 - 7  andar
           Rio de Janeiro - RJ Brasil
           CEP: 22250-040
           Phone: 55 21 2559 4141
           Fax: 55 21 2552 3253

           Sao Paulo
           R. Alexandre Dumas, 1981 - Chacar  de Santo Ant"nio
           Sao Paulo - SP Brasil
           CEP: 04717-906
           Phone: 55 11 5185 2444
           Fax: 55 11 5181 2911

ENRON: Amended Complaint Fingers Andersen's Brazilian Affiliates
The Enron fraud perpetrated by the Houston-based energy giant and
its auditors succeeded because of the active complicity of
several prominent banks and law firms, according to new
allegations filed in federal court today.

The University of California, lead plaintiff in the Enron
shareholders lawsuit, filed a consolidated complaint in the U. S.
District Court for the Southern District Court of Texas in
Houston, adding nine financial institutions, two law firms and
other new individual defendants to a list that already included
29 current and former Enron executives and the accounting firm of
Arthur Andersen LLP.

The 485-page amended complaint lays out the scheme in detail,
naming J.P. Morgan Chase, Citigroup, Merrill Lynch, Credit Suisse
First Boston, Canadian Imperial Bank of Commerce (CIBC), Bank
America, Barclays Bank, Deutsche Bank and Lehman Brothers as key
players in a series of fraudulent transactions that ultimately
cost shareholders more than $25 billion. At the same time, a
number of top bank executives profited personally from the
schemes, according to the complaint.

Two law firms were also added to the list of Enron defendants
because of their alleged significant and essential involvement in
the fraud -- Enron's Houston- based corporate counsel Vinson &
Elkins, as well as Chicago-based Kirkland & Ellis, which Enron
used to represent a number of so-called "special purpose

"These prestigious banks and law firms used their skills and
their professional reputation to help Enron executives shore up
the company's stock price and create a false appearance of
financial strength and profitability which fooled the public into
investing billions of dollars," said James E. Holst, the
university's general counsel. "In return, these firms received
multi-million-dollar fees, and some of their top executives
exploited the situation to cash in personally."

The amended complaint also documents a total of almost $1.2
billion in insider trading by 28 Enron directors and officers,
approximately $171 million more than previously disclosed. Two
Enron insiders, Kenneth Lay and Robert Belfer, together sold $144
million more than has been previously reported.

Bankers tricked investors with dual deception

Many of the financial institutions named in the complaint helped
to set up clandestinely controlled Enron partnerships, used
offshore companies to disguise loans, and facilitated the phony
sale of overvalued Enron assets. As a result, Enron executives
were able to deceive investors by moving billions of dollars of
debt off its balance sheet and artificially inflating the value
of Enron stock.

For their part, the law firms allegedly issued false legal
opinions, helped structure non-arm's-length transactions, and
helped prepare false submissions to the U. S. Securities and
Exchange Commission.

The banks played a dual role in the elaborate scheme, which the
amended complaint describes as "a hall of mirrors inside a house
of cards." While bank executives were helping conceal the true
state of Enron's precarious financial condition, securities
analysts at the same banks were making false, rosy assessments of
Enron to entice investors.

As underwriters in the sales of Enron securities, the banks also
misled the public by approving incomplete or incorrect company
statements. J.P. Morgan Chase, for instance, helped Enron raise
$2 billion in publicly traded securities that are now almost

"Instead of protecting the public from the Enron fraud, the
bankers knowingly chose to become partners in deceit," said
William Lerach, senior partner at Milberg, Weiss, Bershad, Hynes
& Lerach, the university's lead counsel. "They were not only
willing participants but profiteers. Their executives followed
the example of Enron's insiders, getting rich off thousands of
unwitting pensioners and other investors who entrusted -- and
lost -- what for many was their life savings."

Bankers made inside deal for themselves

Executives at several of the banks took advantage of their
positions to invest more than $150 million in one of the Enron-
controlled, off-the-books partnerships called LJM2, which they
knew would pay an exorbitantly high return because of "self-
dealing" transactions with Enron, according to the complaint.

From the start, the banks provided "extraordinary" assistance to
Enron to set up LJM2. In information presented for the first
time, the complaint reveals the "prefunding" of LJM2 by J.P.
Morgan Chase, CIBC, Deutsche Bank, Credit Suisse First Boston,
Lehman Brothers and Merrill Lynch at the end of December 1999 --
a critical juncture for Enron. Although under no obligation to do
so, the banks advanced nearly 100 percent of the money for LJM2,
including a $65 million credit line.

LJM2 used the money in the final days of 1999 to buy four Enron
assets that the company had failed to sell to other parties,
enabling Enron to report large gains and prevent a sudden decline
in stock prices that would have meant large losses for the
company and the banks.

The deals, described as "sham" transactions, involved the Nowa
Sarzyna power plant in Poland, the MEGS, LLC natural gas system
in the Gulf of Mexico, the Yosemite certificates and a set of
collateralized loan obligations. Later, LJM2 sold the assets back
to Enron.

The four transactions allowed Enron to overstate its profits,
conveniently meeting forecasts put out by the company and bank
analysts. Simultaneously, bank executives who had invested in
LJM2 were enriched when the special-purpose entities paid
millions to LJM2.

Banks, law firms helped Enron conceal loans and create fake

The banks and law firms are accused of playing an instrumental
role in creating a mythical picture of Enron profitability. They
helped set up transactions that appeared to be independent, but
"which, in fact, Enron controlled through a series of secret
understandings and illicit financing arrangements," said Lerach.

Loans, which should have counted as debt, were made to look like
profits from sales. The complaint explains how J.P. Morgan Chase
helped Enron hide $3.9 billion in debt through a company known as
Mahonia Ltd., located in the Channel Islands off England. The
bank disguised approximately $5 billion in back-and-forth
transactions in which Enron sold gas and oil contracts to
Mahonia, but then secretly repurchased the contracts.

The complaint also reveals that Vinson & Elkins gave J.P. Morgan
Chase and Enron legal cover for the Mahonia transactions by
writing an opinion corroborating them as legitimate.

Citigroup used its Delta subsidiary in the Cayman Islands to
carry out $2.4 billion of financial "swaps" with Enron that the
lawsuit says "perfectly replicated loans and were, in fact,
loans," but were not disclosed on Enron's books. Credit Suisse
First Boston gave Enron $150 million in a transaction that the
lawsuit says was "made to appear to be a 'swap,'" but was
actually a loan, as a bank officer later admitted.

Canadian Imperial Bank of Commerce (CIBC) also formed a
partnership with Enron, called EBS Content Systems, and pretended
to invest $115 million, enabling the energy company to report
$110 million in profits. However, because Enron secretly agreed
to guarantee the $115 million, the lawsuit calls the transaction
a "contrivance" that inflated the company's profits.

CIBC likewise lent $125 million to the Enron venture New Power
IPO, allowing the company to post fictitious profits, while again
receiving a secret guarantee that protected the bank. Later,
Enron had to reverse the entire $370 million in profits it had
created by the New Power deal.

In other cases, Enron and the banks made loans look like
investments. Barclays gave $11.4 million to two investors in
Chewco, another of Enron's off-the-books partnerships. While the
money gave the appearance of outside investment in Chewco, Enron
secretly subsidized the loans through a $6.6 million cash deposit
with Barclays. The complaint describes the two investors as

Schemes propped up Enron stock but eventually collapsed

The banks' complex maneuvers on Enron's behalf were intended to
bolster the value of Enron stock and its apparent
creditworthiness. Bank officers were aware that if the price
fell, Enron would be required to issue additional stock that
would diminish the company's investment rating and limit access
to new capital, likely collapsing the scheme from which the banks
were profiting. At one point, executives of Credit Suisse First
Boston strongly warned their Enron counterparts that the company
would be ruined if the stock dropped to $20 a share.

For the first time, the amended complaint reveals that some of
the financial institutions were themselves at risk for extensive
losses because they had written millions of dollars of "credit
default puts" on Enron securities, requiring them to make good on
Enron's publicly traded debt if the company defaulted. This gave
them strong incentives to keep Enron afloat.

When Enron's financial manipulations finally became public and
the stock collapsed in November 2001, executives from J.P. Morgan
Chase and Citigroup pressured Moody's to keep Enron's credit
rating in place until the banks could arrange a bailout sale of
Enron to avoid insolvency and forestall a full-scale
investigation into the company's dealings. A proposed sale to
Dynegy fell through, however, and Enron filed for bankruptcy on
December 2, 2001.

The losses of the plaintiffs in the shareholders class action,
who purchased Enron equity and debt securities between October
19, 1998 and November 29, 2001, are estimated at more than $25

The amended complaint also extends the responsibility of Enron's
auditing firm, Arthur Andersen, to cover the role of 24 Andersen
executives and several of the firm's international entities,
including Andersen Worldwide, SC, and affiliates in Brazil, the
Cayman Islands, India, Puerto Rico, and the United Kingdom.

"The defendants' sophisticated manipulations allowed them to
enrich themselves at the expense of millions of Americans who
lost billions of their hard-earned dollars invested in Enron for
their retirements," said Holst. "That's not fair. Our lawsuit
seeks to return those funds to their rightful owners and to
retirees and working families across the country."

CONTACT:  Trey Davis of the University of California,

          Valerie Holford
          Parker Blackman


COEUR D'ALENE: Bankruptcy Filing Likely if June Payments Missed
Coeur d'Alene Mines Corp., which is now under pressure to pay off
its debts, needs to generate about US$7 million this year to pay
for development projects at its Cerro Bayo project in Southern
Chile, its Rochester Mine in Nevada, and its Galena Mine in the
Silver Valley, according to an article released by the Spokesman-
Review. The Cerro Bayo gold-silver mine is scheduled to open this

"It's a relatively low-cost project for the Company, because it
will use milling facilities from Coeur's closed Fachinal Mine,"
said Adam Graf, an equity research associate with Bear Stearns in
New York City.

The mill will also process ore from Coeur's recently-acquired
Martha Mine in southern Argentina.

"This has worked out very well for them. We're hoping it's enough
to keep them afloat," Graf said.

Coeur d'Alene may be forced to file for bankruptcy if its last-
minute efforts to avoid defaulting on a $20 million loan fail.

In a year-end financial report filed recently, the Company stated
it has US$19.8 million in payments due June 10, and about US$18.2
million in cash. If the Company defaults on the US$19.8 million
payment, US$100 million in additional debts due in 2003 and 2004
would be payable immediately.

"Such events could cause the Company to seek relief under the
Chapter 11 of the Bankruptcy Code," the year-end report said.

The Company is studying several options to raise the additional
cash, including putting some of its assets on the block and
converting debt into stock.

High-cost mines and low silver and gold prices have hurt Coeur's
bottom line in recent years. The company has lost money for the
last five years, and took US$250 million in charges on high-cost
gold properties in Chile and Alaska.

In the financial report, accountant Arthur Anderson raised doubts
about Coeur's ability to continue as a "going concern," given its
recurring losses, debt load and declining amounts of cash.

COEUR D'ALENE: Updates Notes Conversion Status
In an official press release, Coeur d'Alene Mines Corporation
(NYSE:CDE) announced Monday that a total of $8.1 million of the
Company's 13 3/8% Convertible Senior Subordinated Notes due
December 31, 2003 ("13 3/8% Notes") have been converted by the
holders thereof into 7.2 million shares of the Company's common
stock so far this year.

The conversions have been made according to the terms of the 13
3/8% Notes indenture.

The conversion of the 13 3/8% Notes to equity plus the previously
announced exchanges of $3.4 million principal amount of the
Company's 6% Convertible Subordinated Debentures due June 2002
for equity this year have reduced Coeur's outstanding convertible
debt by approximately $11.5 million and increased shareholders'
equity by an equivalent amount.

Coeur d'Alene Mines Corporation is a leading international low-
cost primary silver producer, as well as a significant producer
of gold. The Company has mining interests in Nevada, Idaho,
Alaska, Chile, Argentina and Bolivia.

CONTACT:  Coeur d'Alene Mines Corporation
          Michael A. Steeves, 208/769-8155

COEUR D'ALENE: Company Profile
NAME: Coeur d'Alene Mines Corp.
      505 Front Avenue, P.O. Box I
      Coeur d'Alene, ID 83816

PHONE: (208) 667-3511

FAX: (208) 667-2213



     Dennis E. Wheeler, Chairman, President, and CEO
     Robert Martinez, SVP and Chief Operation Officer
     Geoffrey A. Burns, SVP and Chief Financial Officer

                    Coeur D'alene Mines Corporation
                    505 Front Ave.
                    Coeur D'alene, ID 83814
                    Phone: (208) 769-8155
                           (800) 624-2824

TYPE OF BUSINESS: Coeur d'Alene Mines Corporation, through its
subsidiaries, is engaged in the operation and/or ownership,
development and exploration of silver and gold mining properties
and companies located primarily within the United States (Nevada,
Idaho and Alaska) and South America (Bolivia and Chile), as well
as Australia. The Company has various mining properties and
interests. These include the Rochester Mine, a silver and gold
surface mining operation located in northwestern Nevada; Coeur
Silver Valley, which owns and operates the Galena underground
silver mine; the Fachinal Mine, an open pit and underground gold
and silver mine; the Petorca Mine, an underground and surface
gold and silver mine located in central Chile; the Kensington
Property, which it is developing as a proposed underground gold
Mine; and Empressa Minera Manquiri S.A., which controls the
mining rights for the San Bartolome silver project, a silver
development property in Bolivia.

SIC: Metals & Mining - Gold & Silver & Other Precious Metals

EMPLOYEES: 506 (year 2001)

LEGAL ADVISOR: Foley & Lardner
               777 E. Wisconsin Ave.
               Milwaukee, WI 53202-5367
               Phone: 414-271-2400
               Fax: 414-297-4900

AUDITOR: Arthur Andersen LLP
         1225 17th Street
         Denver, CO 80202

TRANSFER AGENT: Mellon Investor Services, LLC.
                P.O. Box 3315
                South Hackensack, NJ 07606
                Phone: (800) 522-6645
                Home Page:

To see latest financial statements:

TELEFONICA CTC: Analysts See Slim Chance In Tariff Fight
Telefonica chairman Bruno Philippi and CEO Claudio Munoz last
week held a meeting with the shareholders of Chile's largest
telco. In the meeting, the executives stressed the Company's main
objectives: to lobby for an end to asymmetric interconnection
fees with competitors; persuade regulators to give the Company
flexibility in setting local rates in different areas of the
country; and improve relations with telecoms regulator Subtel.

Analysts, however, believe that the telco is unlikely to succeed
in its quest to lobby the country's competition watchdog for
greater freedom in setting rates.

It is pointless for CTC to lobby against regulation now since
"the next tariff review is already scheduled [to start] May 2003,
but it is likely to be easier on them than the last review," UBS
Warburg strategist Ben Laidler said, in reference to upcoming
negotiations for the next five-year tariff decree that will take
effect May 2004.

In March, CTC filed a lawsuit against the government claiming
damages of US$274 million as a result of the 1999 tariff decree,
claiming there were errors in its drafting. The Company said the
five-year decree cut revenues/line by about 25 percent.

The competition regulator gave CTC limited room to adjust its
local rates in a ruling early last year, saying CTC could offer
discounted rates based on traffic volume. The Company
subsequently submitted rate proposals to Subtel for evaluation
and is still waiting for a response.

CONTACT:  Telefonica CTC (Corporacion Telefonica Chilena S.A.)
          V. Providencia 111
          Providencia - Santiago
          Phone: (2) 2320511
                 (2) 6912020
          Home Page:
          Mr. Bruno Philippi, President
          Mr. Jacinto Daz, Vice President
          Gisela Escobar,  Head of Investor Relations


PAZ DEL RIO: Searching For JV Partners From Home Or Abroad
Enrique Tobon, president of Acerias Paz del Rio, announced that
the Colombian steelmaker is in the market for joint venture
partners, domestically or otherwise, for new operations that
would be fed by the Company's large iron ore reserves, reports
Business News Americas.

The Company's mines have proven reserves of around 150Mt of iron
ore, plus coke reserves of 118Mt and some 37Mt of limestone,
revealed Tobon.

"These give us a base to form joint ventures with investors in
productive processes that would be economically and legally
independent of our [current] steelworks," Tobon said.

This independence is important, he said, because it would mean
the new ventures would not inherit Paz del Rio's hefty legacy

PAZ DEL RIO: Seeking Clarification on 2 Articles of Law 550
Acerias Paz del Rio president, Enrique Tobon, has requested the
Colombian government to provide a regulatory framework for two
articles of the country's bankruptcy protection legislation,
known as Law 550, under which the Company is currently operating.

One refers to article 41, which obliges a restructuring company
to set up a fund to handle its pension debts.

"This is in order to finance the pensions, which today weigh
heavily in our cost structure and the Company's cashflow," Tobon
said, adding, "This article has not been regulated and that is
why we are requesting the central government speed up the

The other aspect of the law that has not been regulated is
article 73, which grants a US$500-million credit to be
distributed among all those companies in bankruptcy protection to
strengthen their financial situation and incorporate new

PAZ DEL RIO: President Presents Rescue Plan To Shareholders
The new president of Colombian steelmaker Acerias Paz del Rio,
Enrique Tobon, presented shareholders with a plan aimed at
getting the Company out of its financial predicament.

In an interview with Business News Americas, Tobon revealed that
the proposal he presented to the Company's shareholders consists
of "a credit for 40 years with a 10-year grace period, with a
0.75-percent annual interest rate that would of course solve the
Company's mid-term problems."

"We are talking about a reconversion that will imply a cost
reduction of US$32/t, which would place us in a very competitive
position in the market. It will mean an approximately 50,000t/y
increase in production, placing us, in seven years, at a
production level of 500,000t/y, compared to today's 250,000t/y,
which would represent 30% of national production and a 15% share
of the [Colombian] market. The total amount to be invested, in
the case that new machinery is purchased, is about US$44.7

"Besides, there are other issues that must be solved immediately,
such as an administrative revamp, for which we need the support
of the integrated steelworks industry of Latin America, which
would allow us to boost the efficiency levels of each basic
process of the Company."


CINTRA: Sale's Success On Attractive Investment Terms
Cintra's ability to sell it assets hinges on the Mexican
government offering an attractive plan for foreign investment in
combination with domestic capital, according to Stephen C.
Donehoo, executive director of U.S. consultancy firm Kissinger-

In a Notimex report, Donehoo recalled that air industry analysts
have blamed poor conditions predominant in the industry for
causing a delay in the Cintra sale process.

According to Donehoo, the situation of Cintra-controlled
airlines, Mexicana and Aeromexico, and the lack of strategic
decisions are stopping the companies from getting competitively
stronger while smaller airline companies "are eating up the

Meanwhile, Cintra is now accepting bids from domestic and
international investment banks to decide who will manage the

Among the candidates include Merrill Lynch, JP Morgan and Salomon
Smith Barney, as well as Chase, UBS and Societe Generale.

Last month, Cintra's shareholders approved a corporate
restructuring aimed at reorganizing Cintra's subsidiaries into
two sub-holdings, Grupo Aeromexico S.A. and Grupo Mexicana de
Aviacion, S..A., which will each have control of operating and
service businesses for the airlines.

The two airlines will be sold separately, as recommended by the
Federal Competition Commission.

          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO

          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055

          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55

          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or

          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          J.P. MORGAN CHASE & CO.
          270 Park Avenue
          New York, NY 10017
          Phone: (212) 270-6000
          Fax: (212) 270-1648
          Home Page:
          William Harrison, Jr., Chairman and CEO
          Dina Dublon, Chief Financial Officer
          Geoffrey Boisi, Co-CEO of the Investment Bank

          Investor Relations
          Phone: (1-212) 270-6000

          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller

          280 Trumbull 24th Fl.
          Hartford, CT 06103
          Phone: 860-549-1674
          Fax: 860-293-4289
          David T. Chase, Chief Executive Officer
          John Redding, Chief Financial Officer

          UBS AG
          Bahnhofstrasse 45
          CH-8098 Zurich, Switzerland
          Phone: +41-1-234-4100
          Fax: +41-1-234-3415
          Home Page:
          Investor Relations in Zurich
          Phone: +1 212 713 3641
          Fax: +1 212 713 1381

          Christian Grutter
          Phone: +41 1 234 4360

          Mark Hengel
          Phone: +41 1 234 8439

          29, Boulevard Haussmann
          75009 Paris, France
          Phone: +33-1-42-14-20-00
          Fax: +33-1-42-14-54-51
          Home Page:
          Pierre-Guillaume de Pompignan, Investor Relations
          Carole Noel, Investor Relations Assistant

HYLSAMEX: Expects US$30 Mln In EBITDA, Unchanged From `01
Mexican steelmaker Hylsamex SA filed a statement with the Mexican
Stocks Exchange saying it expects to report first-quarter profit
that is unchanged from last year as higher volumes offset lower

According to a Bloomberg report, the Company, which is a unit of
industrial group Alfa SA, stated in the filing that it is likely
to post US$30 million in earnings before interest, taxes,
depreciation and amortization, known as EBITDA, in the first
quarter. That's unchanged from the same period in 2001.

Sales by volume rose 16 percent in the quarter from a year ago
according to preliminary figures, the Company said. Sales in
dollars rose just 4 percent because prices fell 11 percent in the
quarter from a year ago. In the first quarter last year, Hylsamex
reported sales of US$283 million.

Hylsamex is currently in talks with banks and bondholders to
stretch out payments on about US$1 billion of debt.

          Investor Relations
          Margarita Gutierrez

          Ricardo Sada
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452

TRI-NATIONAL DEVELOPMENT: Accusations Mount Over Mexico Property
Tri-National Development Corp. (OTCBB:TNAVQ) announced Monday
that it is presently engaged in adversarial litigation with
Senior Care Industries Inc. (OTCBB:SENC) in the United States
Bankruptcy Court, Southern District of California (Case No. 01-

At issue in this litigation is Senior Care's claim to have
purchased a number of Mexican properties from TND. TND vigorously
denies Senior Care's claim, and opposes Senior Care's repeated
representations to the public that the subject Mexican properties
represent assets of Senior Care. Based upon the evidence, TND
expects to prevail in this litigation in due course.

While this litigation between the parties is pending, and most
significantly, without disclosing the pendency of said
litigation, Senior Care issued a March 28, 2002 press release
containing false and misleading statements regarding TND's
development of property described therein as "the Vinas de
Bajamar land."

In its March 28, 2002 press release, Senior Care implies that the
subject property is inaccessible and asserts that it is "filled
with weeds" and that the office to be utilized by TND "is an
abandoned shack filled with bullet holes and a floor that has
fallen through to the ground from dry rot." In fact, the property
is accessible, with development work (including bulldozer, road
construction and lot staking operations) proceeding in a timely
fashion as previously announced by TND.

Further, TND's office at the property is a structure totally
suitable for serving as an "on-site" sales office. It contains no
bullets holes, and has a concrete floor, which is physically
incapable of suffering from "dry rot."

Senior Care additionally asserts in the same press release that
"none of the land has been subdivided into lots and that there is
no master planned community that has ever been approved by (sic)
government body." These statements are also false. Ensenada's
Office of General Ecology and Urban Development has approved TND
subsidiary Planificacion y Desarrollo Jatay, S.A. de C.V.'s plan
to develop the property and subdivision is underway.

As part of the above-described litigation pending between TND and
Senior Care, Senior Care claims to own "the Vinas de Bajamar
land" that TND is presently developing. Michael Sunstein,
president and CEO of TND said, "Senior Care's false and
misleading statements concerning TND's development of the
property appear aimed at improperly impeding TND's development of
the property, interfering with TND's relationships with potential
buyers and promoting Senior Care's position in the litigation
pending between the parties. Contrary to Senior Cares false
assertions, development on Vinas de Bajamar continues to proceed
as planned."

Tri-National Development Corp. is an international real estate
development, sales and management company focused on providing
up-scale affordable housing in the Baja region of Mexico and the
Southwestern US.

          Jason Sunstein
          Tel: 858/547-4214
          Fax: 858/547-4219


SIDERPERU: Creditors Approve Debt-Restructuring
Peruvian steelmaker Siderperu, which is operating under the
country's form of Chapter 11 bankruptcy protection, has reached
an agreement with its creditors to restructure its debts, reports

Under the agreement, debts of US$103 million, of which US$70
million is owed to banks, will be paid within 8 to 9 years. The
Company is expected to invest US$4 million this year, and US$6
million every year until the debts are settled. Aside from those,
Chimbote-based Siderperu could borrow US$10 million for working
capital and acquisition of fixed assets.

Siderperu is predicting sales to the mining and trading sectors
for this year will amount to US$33 million, while production will
total 27,283 tons, 52-percent of which is attributable to the
construction sector.

Siderperu went into a form of bankruptcy protection to completely
refinance itself in August, blaming the global steel crisis and
market "confusion" about its solidity.

The Company has a liquid steel capacity of 520,000tpy, and makes
long and flat products. Among its key clients is Moly-Cop in Peru
and Chile that manufacture steel grinding balls for mills. The
three companies are managed by GS Industries of South Carolina.

          Av. Los Rosales 245, Santa Anita
          Lima 43, Peru
          Phone: +51 1 362 0646
          Fax: [+51] 1 362 0636
               [+51] 1 362 0667
          Home Page:


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.

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