TCRLA_Public/020411.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

            Thursday, April 11, 2002, Vol. 3, Issue 71

                           Headlines


A R G E N T I N A

BANCO GALICIA/BANCO RIO: Executives Exonerated On Lack Evidence
BGN: To Shut Down For Four Months Pending Bailout Resolution
CTI HOLDINGS: Included in Verizon's $2.5B Write Down 1Q02
TELECOM ARGENTINA: Fitch Downgrades Currency Ratings To `DD'
CARIBBEAN MEDIA: Board Approves Reorganization Plan


B E R M U D A

FLAG TELECOM: Board OK's US$1B Debt Restructuring Proposal
FLAG TELECOM: Milberg Weiss Files Securities Class Action Suit
FLAG TELECOM: Scott + Scott, LLC Announces Class Action Lawsuit
FLAG TELECOM: Interest Payment Missed, S&P Cuts Ratings to 'D'
GLOBAL CROSSING: Level 3 May Enter The Bidding Fray
STIRLING COOKE: Reduced Financial Flexibility Prompts Downgrade
STIRLING COOKE: Company Profile


B R A Z I L

EMBRATEL: Joins Forces with PanAmSat
ENRON: Elektro Delays Payment Of BRL613.6 Mln Of Debt


C H I L E

ANDERSEN: Chilean Affiliate Joins Regional Rival Firm


M E X I C O

ANDERSEN: Mexican Affiliate Jumps Ship; Joins Competitor
CYDSA: Reschedules US$200-Mln Debt With Foreign Creditors
GRUPO BITAL: SCH Purchase Perceived as "Scare" Tactic
HYLSAMEX: Reports US$30M Cash Flow on Higher Sales 1Q02


     - - - - - - - - - -


=================
A R G E N T I N A
=================

BANCO GALICIA/BANCO RIO: Executives Exonerated On Lack Evidence
---------------------------------------------------------------
Citing lack of evidence, an investigating magistrate excluded 10
executives of Argentina-based commercial banks from a fraud
investigation in which they were named parties.

In his ruling, Judge Mariano Berges said no evidence was found
specific to Banco Santander Central Hispano SA unit Banco Rio de
la Plata's Jose Luis Cristofani, Citibank's Peter Baumann y
Timothy Gibbs, Banco de Galicia chairman Eduardo Escasany and
deputy chairman Antonio Garces and Manuel Sacerdote and Victor
Zerbino of BankBoston.

Berges was investigating possible fraud in connection with the
failure of banks to return deposits to savings account holders.

The government of former president Fernando de la Rua imposed
restrictions on deposit withdrawals in December of last year, but
subsequently relaxed some of the rules.

Berges noted that the commercial banks said in their own defense
that they were prevented from returning deposits to savers by the
central bank.

However, the Judge expressed skepticism at this claim, describing
it as a strategy to avoid possible legal problems, adding that he
found no evidence of a single communication from the banks to the
central bank questioning implementation of the banking
restrictions.

Recently, Spanish financial group SCH said it won't need to
advance fresh funds to Banco Rio as it doesn't perceive there to
be liquidity problems at the unit that would require such a move.

The "accountable value" of Banco Rio "is covered in totality" by
SCH's Argentine fund, in which it now maintains EUR1.29 billion
(US$1.14 billion), up from EUR1 billion it had set aside by the
end of last year's third quarter.

Given the uncertainty arising from Argentina, SCH said that this
year, it would concentrate on improving resources, strengthening
its balance sheet and prudently managing credit risk.

On the other hand, Banco Galicia, which has run out of cash
following a run on deposits, is seeking an outright buyer after
the Argentine government rejected its bailout proposal.

As of November, Galicia had more than a third of its ARS10.8
billion of assets (US$5.1 billion) in defaulted government debt.
It has borrowed more than ARS2 billion from the central bank to
cover deposit withdrawals.

CONTACT:  BANCO RIO - Investor Relations:
          Ana Patricia B. S. de Sautuola y O'Shea, Chairman
          Jose L. E. Cristofani, Executive Vice Chairman and CEO
          Pablo Caride, Corporate Finance
          Bartolome Mitre 480
          1036 Buenos Aires, Argentina
          Phone: +54-(0)14-341-1081-1580
          Fax: +54-(0)14-341-1074-1084

          BANCO DE GALICIA Y BUENOS AIRES
          Teniente General Juan D. Peron 456, Piso 3
          1038 Buenos Aires, Argentina
          Phone: +54-11-4343-7528


BGN: To Shut Down For Four Months Pending Bailout Resolution
------------------------------------------------------------
Buenos Aires-based bank Banco General de Negocios SA (BGN), which
is at the center of a fraud investigation, is awaiting approval
from the central bank on a request to suspend operations for 120
days as shareholders debate financing a bailout.

BGN is majority-owned by J.P. Morgan Chase & Co, Credit Suisse
First Boston and Dresdner Bank AG.

According to Julio Barroero, head of BGN's credit risk
department, the bank's shareholders must decide whether to
liquidate the bank or not.

BGN expects to shut down today and plans to sell assets to pay
creditors, depositors and workers while closed, relates Barroero.

The bank plans to sell through a trust its 94 percent stake in
Nuevo Banco de Santa Fe SA, a provincial bank in Argentina, and
other assets such as loans and government debt securities,
Barroero said.

In January, J.P. Morgan informed local authorities that BGN
executives may have committed fraud. Since then, the bank's vice
president Carlos Rohm has been jailed on fraud charges and his
brother Jose Rohm, the bank's president, is at large, facing an
international arrest warrant.

Jose and Carlos Rohm have denied any wrongdoing.

CONTACTS:  BANCO GENERAL DE NEGOCIOS SA
           Esmeralda 120
           Capital Federal 1035
           Buenos Aires, Argentina
           Phone: 011-4394-3003
           Fax: 011-4320-6138
           Email: interbank@bancobgn.com
           URL: http://www.bancobgn.com

           DRESDNER BANK LATEINAMERIKA AG
           Neuer Jungfernstieg 16
           20354 Hamburg, Germany
           Tel.:   (+49 40) 3595-0
           Fax:   (+49 40) 3595 3314
           Telex:   214 236-0 dl d
           S.W.I.F.T. DRES DE HL
           E-Mail:   public-relations@dbla.com

           CREDIT SUISSE GROUP
           P.O. Box 1
           CH-8070 Zrich
           Tel. +41 (1) 212 16 16
           Fax. +41 (1) 333 25 87
           Contact: Lukas Muehlemann, chairman & CEO

           J.P. MORGAN CHASE & CO.
           Investor Relations
           J.P. Morgan Chase & Co.
           270 Park Avenue
           New York, NY 10017-2070
           (1-212) 270-6000
           URL: www.jpmorganchase.com


CTI HOLDINGS: Included in Verizon's $2.5B Write Down 1Q02
---------------------------------------------------------
Verizon Communications Inc. (NYSE: VZ) on Tuesday, estimated that
adjusted diluted Earnings Per Share (EPS) would be approximately
72 cents for the first quarter of 2002, which is in the range of
analyst expectations.  The company also said that it expects a
special non-cash charge of approximately $2.5 billion in the
quarter, primarily for write-downs associated with goodwill and
other investments.

Verizon will announce complete first-quarter results on April 23.
First-quarter special items are in the process of being finalized
and will include an adjustment for new accounting rules that
require implementation of Statement of Financial Accounting
Standards No. 142.  This is expected to result in up to $500
million in after-tax charges for goodwill and other intangible
assets the company currently carries on its balance sheet.

In addition, other charges will reflect the current market values
of investments, primarily including CANTV in Venezuela, CTI
Holdings in Argentina and Metromedia Fiber Network in the
U.S.  The company estimates that the net effect of the write-down
of these investments, after taking into account asset sales and
other items, will total approximately $2 billion after-tax.

Verizon Vice Chairman and Chief Financial Officer Fred Salerno
said, "Given the change in accounting rules for goodwill and the
volatility in certain world markets, we wanted to give the
parameters of the approximate charges associated with these items
as soon as possible after the end of the first quarter."

Salerno added, "As we have said previously, we do not expect to
report an improvement in revenue growth due to the continuing
effects of the economic downturn.  Still, we expect our adjusted
first-quarter earnings to be within the range of analyst
expectations, primarily due to our continued, aggressive focus on
cost control."

Verizon Communications (NYSE: VZ) is one of the world's leading
providers of communications services.  Verizon companies are the
largest providers of wireline and wireless communications in the
United States, with 132.1 million access line equivalents and
approximately 29.6 million wireless customers. Verizon is also
the largest directory publisher in the world.  With more than $67
billion in annual revenues and approximately 247,000 employees,
Verizon's global presence extends to more than 40 countries in
the Americas, Europe, Asia and the Pacific.  More information on
Verizon is available through their website at: www.verizon.com.

CONTACT:  VERIZON COMMUNICATIONS
          Bob Varettoni, +1-212-395-7726,
          Email: robert.a.varettoni@verizon.com


TELECOM ARGENTINA: Fitch Downgrades Currency Ratings To `DD'
------------------------------------------------------------
Fitch Ratings has downgraded the foreign and local currency
ratings of Telecom Argentina S.A. (Telecom) to 'DD' from 'C'.
The 'DD' rating indicates the company is in default and that the
recovery rate is expected to be in the range of 50%-90%. The
rating action affects approximately US$3.2 billion in debt
obligations.

The decision reflects the company's announced suspension of all
principal payments on its debt obligations; although the company
intends to continue to pay interest on its obligations. However,
the ability to pay interest will still depend on receiving
Central Bank approval to make dollar transfers abroad, the
evolution and quality of collections, as well as the future
exchange rates and inflation levels, which all will affect future
cash flow generation.

The Company's decision reflects the deepening recession, the
impact of devaluation on its debt burden, the volatility
associated with the peso exchange rate, the suspension of tariff
adjustments and the tariff's pesofication. The foregoing items
have dramatically impacted the financial condition of Telecom,
given the imbalance between its peso revenues and its debt in
hard currency. As a result of the current situation, Telecom will
reserve and apply its cash flow resources to operating
activities. As of Dec. 31, 2001, total debt amounted to
approximately $3.2 billion with more than 90% denominated in US
dollars. The liabilities consist of approximately $1.6 billion of
senior unsecured notes, nearly $900 million of vendor financing
and $730 million of bank loans.

Telecom's actions underscore the uncertain outcome of the
discussions with the Argentine government regarding changes to
all public services concessions made by the Argentine Public
Emergency Law No. 25.561, which was enacted on Jan. 6, 2002. At
present, the Company is among many other regulated market
participants renegotiating their concession contracts with the
Argentine government in an effort to restore economic equilibrium
for the sector; the outcome of negotiations is still highly
uncertain.

Fitch Ratings does not believe that the negotiations will result
in the immediate increase in tariffs necessary to compensate the
combined impact of devaluation and pesofication of tariffs. While
Telecom intends to develop and propose a debt-restructuring plan,
Fitch believes that it will only take place once the political
and economic scenario is viable and an agreement with the
government has been favorably reached.

Telecom Argentina provides local exchange, long distance,
cellular, data transmission, Internet access and directory
publishing services. Until October 1999, the company was the
exclusive provider of telecommunications services in northern
Argentina and controlled nearly one-third of the Buenos Aires
metropolitan area market. Telecom Argentina is now allowed to
provide telecommunication services to southern Argentina. Nortel
Inversora, which is controlled by Telecom Italia and France
Telecom, holds 54.74% of the company's common stock. Employees
own approximately 4.68% of outstanding shares.

CONTACT:  FITCH RATINGS
          Dolores Teran, +011 541 14 327-2444
          Randy Alvarado, 312/368-3117
          James Jockle, 212/908-0547 (Media Relations)

          TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


CARIBBEAN MEDIA: Board Approves Reorganization Plan
---------------------------------------------------
The Board of the Caribbean Media Corporation (CMC) on Friday
announced approval for an interim-phased reorganisation pla.
Under the plan, it will resume additional Caribbean news and
programming services, as well as continue to undertake other
major projects such as cricket coverage, Commonwealth Games and
some World Cup related programming.

Following an all day Board meeting on Friday, the organisation
layed off 42 members of its staff, but confirmed that it will be
gradually increasing its remaining staff core team as the phased-
resumption of services demands.

The Board has also mandated that, where services need to be re-
engaged, former staff would be given first consideration.

The CMC Board has also disclosed that it is currently considering
approaches from potential investors, and expects to make an
announcement regarding those discussions by the middle of May.

The Caribbean Media Corporation (CMC) recorded its appreciation
for the continuing support from business partners regionally and
internationally, who have been sensitive to its special needs in
the last few months.



=============
B E R M U D A
=============

FLAG TELECOM: Board OK's US$1B Debt Restructuring Proposal
----------------------------------------------------------
The Board of Directors of Bermuda-based FLAG Telecom Holdings
Limited ("FLAG") approved a proposal to restructure the
obligations of FLAG and its subsidiaries. Details of the
negotiations and results were included in an official Company
statement.

The Board of Directors authorized FLAG's management and advisors
to negotiate with certain creditors, including representatives of
the FLAG Atlantic Bank Group, holders of its various Senior
Notes, and significant trade creditors, regarding a comprehensive
financial restructuring. FLAG will attempt to reach agreement
with these representatives regarding the material terms of a
financial restructuring in the coming weeks.

Under the Proposal, FLAG would exchange:

(a) The FLAG Atlantic Bank debt of approximately US$257 million
for approximately US$70 million in cash and new common equity of
FLAG; (b) US$430 million of FLAG Limited 81/4% Senior Notes due
in 2008 for approximately US$170 million of New Senior Notes of
FLAG; and (c) $US300 million and Euro 300 million of FLAG 11 5/8%
Senior Notes due in 2010 for approximately US$150 million in
cash, approximately US$40 million of New Senior Notes of FLAG and
new common equity of FLAG.

Under the Proposal, all trade creditors and equipment suppliers
would be paid in full in the ordinary course of business or
through vendor financing.

The Proposal anticipates that, as is common in restructurings of
this type, existing common equity holders will be substantially
diluted.

FLAG intends to manage its business in a focused manner,
conserving capital and reducing costs where appropriate. It will
continue to provide core backbone capacity to traditional
carriers, Internet Service Providers and other content providers.

There can be no assurance that FLAG will be able successfully to
restructure its obligations, or that any successful restructuring
would be accomplished under terms set forth in the Proposal. In
particular, at this point none of FLAG's creditors mentioned
above have agreed to the Proposal.

About FLAG Telecom

FLAG Telecom is a leading global network services provider and
independent carriers' carrier providing an innovative range of
products and services to the international carrier community,
ASPs and ISPs across an international network platform designed
to support the next generation of IP over optical data networks.
FLAG Telecom has the following cable systems in operation or
under development: FLAG Europe-Asia, FLAG Atlantic-1 and FLAG
North Asian Loop.

CONTACT:  FLAG Telecom
          David Morales, +44 20 7317 0837
          Dmorales@flagtelecom.com
                  or
          Investors:
          Sloane & Company
          Charles Southworth, 212/446-1892

          Cedar House, 41 Cedar Avenue
          Hamilton HM12, Bermuda
          Phone: (441) 296-0909
          Fax: (441) 296-0938
          Email: irelations@flagtelecom.com
          Contacts:
          Andres Bande, Chairman/CEO
          Michel Cayouette, CFO


FLAG TELECOM: Milberg Weiss Files Securities Class Action Suit
--------------------------------------------------------------
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP
announced that a class action lawsuit was filed on April 2, 2002,
on behalf of purchasers of the shares of FLAG Telecom Holdings,
Ltd. ("FLAG" or the "Company") (Nasdaq:FTHL) between March 23,
2001 and February 13, 2002, inclusive.

The action is pending in the United States District Court,
Southern District of New York, located at 500 Pearl Street, New
York NY, against defendants FLAG, Andres Bande (CEO and
Chairman), Edward McCormack (Chief Operating Officer), Andrew
Evans (Chief Technology Officer) and Larry Bautista (Chief
Financial Officer until August 2001).

The Complaint alleges that defendants violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, by issuing a series of material
misrepresentations to the market between March 23, 2001 and
February 13, 2002, thereby artificially inflating the price of
FLAG shares. The complaint alleges that throughout the Class
Period, FLAG reported strong year-over-year revenue growth.
Unbeknownst to investors, however, as alleged in the complaint,
FLAG was experiencing diminishing revenue growth. The complaint
alleges that in order to create the impression that FLAG was
continuing to experience growth, the Company engaged in a series
of reciprocal transactions with certain competitors for the
purchase and sale of dark fiber optic cable -- the so-called dark
fiber swap. The complaint alleges that, as a result of these
transactions, FLAG artificially inflated its operating results
and materially misrepresented its financial results at all
relevant times.

CONTACT:  MILBERG WEISS BERSHAD HYNES & LERACH LLP, NEW YORK
          Steven G. Schulman or Samuel H. Rudman
          One Pennsylvania Plaza
          49th fl. New York, NY
          10119-0165
          Phone: 800/320-5081
          Email: flagcase@milberg


FLAG TELECOM: Scott + Scott, LLC Announces Class Action Lawsuit
---------------------------------------------------------------
SCOTT + SCOTT, LLC, a Connecticut based law firm with offices
outside of Philadelphia commenced a class action lawsuit on April
2, 2002 in the United States District Court for the Southern
District of New York on behalf of purchasers of the shares of
FLAG Telecom Holdings, Ltd. ("FLAG" or the "Company") (Nasdaq:
FTHL) between March 23, 2001 and February 13, 2002, inclusive.

The Complaint alleges that defendants violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, by issuing a series of material
misrepresentations to the market between March 23, 2001 and
February 13, 2002, thereby artificially inflating the price of
FLAG shares. The complaint alleges that throughout the Class
Period, FLAG reported strong year-over-year revenue growth.
Unbeknownst to investors, however, as alleged in the complaint,
FLAG was experiencing diminishing revenue growth. The complaint
alleges that in order to create the impression that FLAG was
continuing to experience growth, the Company engaged in a series
of reciprocal transactions with certain competitors for the
purchase and sale of dark fiber optic cable -- the so-called dark
fiber swap. The complaint alleges that as a result of these
transactions, FLAG artificially inflated its operating results
and materially misrepresented its financial results at all
relevant times.


CONTACT:  Scott + Scott, LLC
          Neil Rothstein
          Email: nrothstein@scott-scott.com
          +1-800-404-7770

          David R. Scott
          Email: drscott@scott-scott.com
          +1-800-404-7770

          James E. Miller
          jmiller@scott-scott.com
          +1-800-404-7770


FLAG TELECOM: Interest Payment Missed, S&P Cuts Ratings to 'D'
--------------------------------------------------------------
The ratings on FLAG Telecom Holdings Ltd. (FLAG) were lowered to
'D' and removed from CreditWatch on April 2, 2002, because the
company did not make the March 30, 2002, interest payments on its
senior unsecured notes.

Standard & Poor's also lowered its ratings on FLAG subsidiary
FLAG Ltd. at that time. These ratings remained on CreditWatch
negative. The ratings on FLAG Ltd. will be lowered to 'D' when
the coupon payment on the company's notes is missed, or if a
restructuring or bankruptcy filing occurs.

Analyst: Greg Zappin, CFA, New York (1) 212-438-7872


GLOBAL CROSSING: Level 3 May Enter The Bidding Fray
---------------------------------------------------
Level 3 Communications Inc., an information and communication
services firm, may soon make a bold but risky move to acquire one
or more of its troubled competitors, including possibly Global
Crossing Ltd., according to a Dow Jones article.

If carried out, the plan will represent a strong move by one of
the telecommunications industry's apparent survivors to expand.

"The over-pessimism in the industry is creating opportunities for
us to buy assets. To buy assets makes sense when it [enables us
to] acquire customers and lower costs and create cash flow,"
Level 3 chief executive officer Jim Crowe remarked.

Last week, another group of investors vying for the assets of
Global Crossing emerged. Infonet Services Corporation and Silver
Lake Partners, a Silicon Valley investment firm, were reportedly
considering a joint bid with the Gores Technology Group for
Global Crossing.

According to people close to the companies, representatives from
Gores, Infonet and Silver Lake were due to meet with executives
from Global Crossing at its headquarters in Madison, N.J., at the
start of this week.

While an official bid from the companies is not imminent, the
Gores group does appear to be further along in analyzing Global
Crossing's assets than others that have shown interest in
bidding, according to sources.

Gores has hired Skadden, Arps, Slate, Meagher & Flom, the big New
York law firm that specializes in acquisitions and bankruptcies,
as counsel for its study of a bid for Global Crossing.

So far, the only other telecommunications companies that have
shown firm interest in Global Crossing are Hutchison Whampoa and
Singapore Technologies, which submitted a US$750 million bid
concurrently with Global Crossing's bankruptcy filing. The Asian
companies have repeatedly said that they would not sweeten their
offer.

The Hutchison group recently agreed to lower its breakup fee to
US$30 million from US$40 million if it makes its letter of intent
to buy Global Crossing into a formal agreement. It has until May
21 to formalize the offer.

The Asian companies also agreed to extend the bidding period to
180 days, making it more feasible for Global Crossing to attract
more suitors. Global Crossing could theoretically be auctioned by
July, according to the timetable agreed upon by creditors and the
Hutchison group.

Even after this agreement, though, concern has grown that Global
Crossing could fail to attract additional bidders and that its
assets could be liquidated. These worries increased last week
after Global Crossing was forced to scale back an agreement with
one of its most important customers, Swift, a worldwide provider
of messaging services to financial institutions.

Exactly how the Hutchison group will respond to increasing
interest in Global Crossing remains unclear.

CONTACT:  GLOBAL CROSSING
          Press Contacts:
          Becky Yeamans
          +1 973-410-5857
          rebecca.yeamans@globalcrossing.com

          Cynthia Artin
          +1 973-410-8820
          cynthia.artin@globalcrossing.com

          Analysts / Investors Contact:
          Ken Simril
          +1 310-385-5200
          investors@globalcrossing.com

          SKADDEN, ARPS, SLATE, MEAGHER & FLOM
          New York
          Four Times Square
          New York, New York 10036
          Telephone: 212.735.3000
          Fax: 212.735.2000/1
          Contact: Irene A. Sullivan

          LEVEL 3 COMMUNICATIONS, INC.
          1025 Eldorado Blvd.
          Broomfield, CO 80021
          Phone: 720-888-1000
          Fax: 720-888-5422
          Home Page: http://www.level3.com
          Contact:
          Investor Relations
          Robin Grey, Vice President
          E-mail: investor.relations@Level3.com
          Phone: 1 (877) LVLTCOM (585-8266)
          Fax: 1 (720) 888-5085

          Public Relations
          Josh Howell, Global Corporate Marketing Group VP
          E-mail: josh.howell@Level3.com
          Phone: 1 (720) 888-2517



STIRLING COOKE: Reduced Financial Flexibility Prompts Downgrade
----------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to C++
(Marginal) from B+ (Very Good) of Realm National Insurance
Company, New York, and has assigned it a negative outlook.

The rating action reflects Realm's exposure to a high level of
reinsurance recoverables and additional deterioration in
operating performance and capitalization through 2001. The
significant reinsurance recoverables affect not only
capitalization but also raise concerns about operating cash flow.
Additionally, A.M. Best has concerns regarding tightened
financial flexibility at Realm's ultimate parent company,
Stirling Cooke Brown Holdings, Ltd., Bermuda.

Starting in 1996, Realm significantly changed its business mix
towards program business in order to facilitate its parent's
business strategies. The rapid growth in program business has
resulted in the adverse development of loss reserves, significant
reinsurance recoverables and an increase in reinsurance disputes,
which negatively affect cash flow. While management believes the
current level of disputed reinsurance is manageable, the level of
recoverables introduces greater uncertainty regarding the
stability of capitalization.

Over the past two years, management has undertaken a number of
actions to stabilize and strengthen the overall operations at
Realm, which include setting loss reserves at higher levels,
implementing stronger agency controls and making additions to the
senior management team.

Beginning in 2000 and through 2001, Realm made the transition
from a program insurer to a direct writer, focusing prospective
underwriting efforts on its core mono-line workers' compensation,
commercial property and general liability specialty risks.
However, in 2001, Realm's operating performance further
deteriorated as legal expenses associated with its reinsurance
disputes and larger than expected losses associated with a large
program that is in run-off hindered improvement efforts.

The negative outlook reflects A.M. Best's concerns regarding
Realm's cash flow, reinsurance recoverables that represents
multiples of its statutory surplus and ongoing reserve adequacy.
Further, financial flexibility at Stirling Cooke is now somewhat
constricted, which with operational issues and legal disputes,
have increased uncertainty regarding its ability to support
Realm.

CONTACT:  A.M. Best Co.
          Public Relations
          Jim Peavy
          908/439-2200, ext. 5644
          Email: james.peavy@ambest.com
                 or
          Rachelle Striegel
          908/439-2200, ext. 5378
          Email: rachelle.striegel@ambest.com
                 or
          Analysts
          Ralph Cagnetta
          908/439-2200, ext. 5211
          Email: ralph.cagnetta@ambest.com
                 or
          Devin Inskeep
          908/439-2200, ext. 5449
          Email: devin.inskeep@ambest.com


STIRLING COOKE: Company Profile
-------------------------------
NAME: Stirling Cooke Brown Holdings Limited
      Victoria Hall, 3rd Floor
      11 Victoria Street
      Hamilton HM 11, Bermuda

PHONE: (441) 295-7556

FAX: (441) 295-9659

EMAIL: stirling@bdacos.bm

WEBSITE: None

EXECUTIVE MANAGEMENT TEAM:
     Stephen Crane, Chairman, President, and CEO
     Anthony Del Tufo, Acting Chief Financial Officer
     Len Quick, Chief Operation Officer and Director

TYPE OF BUSINESS: Stirling Cooke Brown Holdings Limited provides
insurance services and products. The Company provides services
and products to insurance and reinsurance companies, insurance
agents, and insureds. The Company is active primarily in the
workers' compensation, occupational accident and health, and
property casualty insurance markets through its subsidiaries
located in London, Bermuda and the United States. The Company has
three main business segments: Brokerage, Program Business, and
Insurance. In early 2001, following a review of its operations,
the Company decided to discontinue its loss-generating
reinsurance and underwriting management segments.

SIC: Insurance - Property & Casualty Insurance

EMPLOYEES: 228 (as of Dec. 31, 2001)

AUDITOR: Arthur Andersen LLP
         P.O. Box HM 1553
         Hamilton HMFX
         Bermuda
         Phone: 1 441 295 0001
         Fax:   1 441 292 1142
         E-mail: bermuda@andersen.com

To see latest financial statements:
http://bankrupt.com/misc/Stirling_Cooke.txt



===========
B R A Z I L
===========

EMBRATEL: Joins Forces with PanAmSat
------------------------------------
In an official company press release, PanAmSat Corporation
(NASDAQ: SPOT) announced Tuesday a sales agreement between its
Brazilian subsidiary, PanAmSat do Brasil, Ltda, and Empresa
Brasileira de Telecomunicacoes (Embratel), one of Latin America's
leading telecommunications service providers.

The collaboration supports Embratel's position as the leading
provider of VSAT services in Brazil and enhances PanAmSat's
growing position in the Latin American market.

"This agreement with Embratel achieves several key objectives.
First, it demonstrates the progress that PanAmSat has made in
opening up the Brazilian market. Equally as important, it
establishes a relationship with one of the most prominent
telecommunications carriers in Brazil and Latin America," said
Tom Eaton, executive vice president, global sales and marketing.

PanAmSat is supplying capacity on its PAS-1R Atlantic Ocean
Region satellite to support a nationwide VSAT network for
Embratel. PAS-1R's strong coverage has enabled Embratel to expand
its reach to some of the most distant parts of the region.

The agreement with Embratel follows the establishment of
PanAmSat's Brazilian subsidiary and the opening of its sales
office in Sao Paulo in late 2001. Kevin Calderone, a
telecommunications and satellite industry executive with in-depth
knowledge of the Brazilian market, is heading up the new office
as regional director of sales. PanAmSat also plans to open an
office in Rio de Janeiro later this year.

"Our first contract in Brazil is the result of our aggressive
campaign to deliver PanAmSat-quality satellite services to the
country's rapidly developing telecommunications market," Eaton
said. "We will continue to pursue opportunities in Brazil to
expand our presence, while simultaneously delivering the highest
caliber of service to our customers in this important market."

Mr. Calderone will be responsible for the introduction of
PanAmSat's premier satellite services to broadcast, cable,
Internet and telecommunications customers throughout the
Brazilian market. These offerings include the company's global
program distribution, Internet backbone access, business
communications and data services as well as special event and ad
hoc services.

Mr. Calderone comes to PanAmSat from Loral Cyberstar, where he
was responsible for attracting new customers for high-capacity
Internet services as well as the sale of VSAT hardware and
associated equipment. Prior to joining Loral, Mr. Calderone was
regional manager for Timeplex, a leading manufacturer of
electronic equipment. He began his career at Tekelec, where he
served as regional sales manager for the Latin America, Asia-
Pacific and Middle East regions. Mr. Calderone was also a
commissioned officer in the U.S. Navy.

In July 2001, ANATEL, the government agency that regulates all
telecommunications services in Brazil, authorized the company's
PAS-1R Atlantic Ocean Region satellite to deliver services
throughout the country. The authorization provided PanAmSat with
direct access to Latin America's leading economy for these
services for the first time ever.

The PAS-1R authorization permits PanAmSat to offer value-added
services throughout Brazil, including the company's global
program distribution, Internet backbone connectivity, business
communications, data transmission and webcasting services as well
as special event and ad hoc services. PAS-1R, launched in
November 2000, is one of the largest and most powerful satellites
covering Brazil.

Expansion into Brazil is one of PanAmSat's major strategic
initiatives for 2002. In addition to this major market, PanAmSat
was successful in opening up Mexico in 2001. The two markets, as
well as India, have been identified as growth opportunities for
PanAmSat.

About PanAmSat

PanAmSat Corporation is the premier provider of global video and
data broadcasting services via satellite. Operating a global
network of 21 in-orbit spacecraft, the company reaches 98 percent
of the world's population through cable television systems,
broadcast affiliates, DTH operators, ISPs, and telecommunications
companies. The company serves the top video and network services
customers in the world, such as Disney, AOL Time Warner, Viacom,
BBC, British Telecom, CCTV, NHK, Sprint and Telstra and is
expanding into new markets like Mexico and Brazil. PanAmSat is 81
percent owned by HUGHES Electronics Corporation. For more
information, visit the company's web site at www.panamsat.com.

About HUGHES Electronics

HUGHES Electronics Corporation is a world-leading provider of
digital television entertainment, broadband services, satellite-
based private business networks, and global video and data
broadcasting. HUGHES is a unit of General Motors Corporation. The
earnings of HUGHES are used to calculate the earnings per share
attributable to the General Motors Class H common stock (NYSE:
GMH).

CONTACT:  PANAMSAT CORPORATION
          Kathryn Lancioni, 203/210-8000
          Email: Klancioni@panamsat.com
          URL: www.panamsat.com


ENRON: Elektro Delays Payment Of BRL613.6 Mln Of Debt
-----------------------------------------------------
Elektro Eletricidade e Servicos SA, a Brazilian power
distribution unit of U.S. energy trading company Enron Corp.,
postponed payment of BRL613.6 million of debt, or 45 percent of
the Company's total indebtedness, says Gazeta Mercantil.

The move follows a deal made with controlled companies, and will
mainly benefit the 2002/2003 cash flow.

Elektro ended 2001 with a net profit of BRL25.4 million against a
loss of BRL63.1 million in 2000. The Company plans investments of
BRL130 million in 2002, 10 percent more than in 2001. BRL100
million will be destinated for the expansion of its network.

Elektro was acquired by Enron in 1998. In December, Brazil's
securities regulator ordered Elektro to reinstate its earnings
going back to 1998 following a similar decision by the U.S.
Securities and Exchange Commission on the controlling company.

Enron filed for bankruptcy protection early December 2001 in the
largest Chapter 11 case ever after Dynegy Inc. abandoned its
US$23 billion takeover of the Houston-based energy trader.

CONTACTS:  ENRON CORP., +1-713-853-4738
           Mark Palmer, Investor Relations Dept.
           P.O. Box 1188, Suite 4926B
           Houston, TX 77251-1188
           (713) 853-3956
           Email: investor-relations@enron.com

           Enron Corp.
           Public Relations Dept.
           P.O. Box 1188, Suite 4712
           Houston, TX 77251-1188
           (713) 853-5670

           ELEKTRO ELETRICIDADE E SERVICOS SA
           Rua Ary Antenor de Souza, 321
           Jd Nova America 13053-024 Campinas - SP
           Brazil
           Phone: +55 19 3726 1098
           Home Page: http://www.elektro.com.br
           Contact:
           Orlando Rufo Gonzalez, Chairman
           Britaldo Pedrosa Soares, Finance Director



=========
C H I L E
=========

ANDERSEN: Chilean Affiliate Joins Regional Rival Firm
-----------------------------------------------------
After severing ties Arthur Andersen LLP, Chile's Langton Clarke
Auditores Consultores Ltda. announced a new alliance with Ernst &
Young LLP, reports Bloomberg.

"Langton Clarke is joining immediately as a member of the global
network of Ernst & Young International," Langton Clarke and Ernst
& Young said in a joint statement.

Langton Clarke dropped Andersen last month in the wake of the
latter's indictment in the United States for obstructing an
investigation of Enron.

Andersen partners have broken away from the fifth-biggest
accounting firm to keep from losing customers after Andersen was
charged last month with illegally destroying documents to impede
an investigation of Enron's collapse, the biggest U.S. bankruptcy
in history. Andersen audited Enron for 16 years.

Langton Clarke, which has about 30 partners and 700 employees,
lost Banco Santiago SA, Chile's second-largest bank behind Banco
de Chile SA, as a client after Andersen's indictment.

CONTACT:  LANGTON CLARKE AUDITORES Y CONSULTORES LTDA.
          Orphans N 770 Floor 5
          Santiago, Chile
          Phone: (56-2) 676-1000
                 (56-2) 638 1320
          Fax:    638 2850
          Home Page: http://www.arthurandersen.cl/framearea.asp

          ERNST & YOUNG INTERNATIONAL
          787 7th Ave.
          New York, NY 10019
          Phone: 212-773-3000
          Fax: 212-773-6350
          Home Page: http://www.eyi.com
          Contacts:
          James Turley, Global Chairman
          William L. Kimsey, CEO




===========
M E X I C O
===========

ANDERSEN: Mexican Affiliate Jumps Ship; Joins Competitor
--------------------------------------------------------
Ruiz, Urquiza y Cia., Arthur Andersen LLP's Mexican partner,
agreed to join with rival firm Deloitte & Touche LLP, leaving the
embattled U.S accounting firm as it battles charges of
obstructing justice, according to a report by Bloomberg.

"We made the decision in the interest of our clients and our
employees," said Diana Solis, spokeswoman for Ruiz, Urquiza. "Our
clients have supported us 100 percent."

Ruiz, Urquiza, which audits such companies as leading bank Grupo
Financiero Bancomer SA and industrial group Desc SA, said it will
team up with Galaz, Gomez Morfin, Chavero, Yamazaki, forming
Mexico's largest accounting firm.

Arturo D'Acosta, Desc's Chief Financial Officer, said he's
confident the change in affiliates won't hurt the quality of
accounting by the Mexican firm.

"We understand their need to change and it's a shame, but our
relationship is with the people in the firm and we have a great
amount of confidence in them," D'Acosta said.

CONTACT:  DELOITTE TOUCHE TOHMATSU
          1633 Broadway
          New York, NY 10019-6754
          Phone: 212-492-4000
          Fax: 212-492-4111
          Home Page: http://www.deloitte.com
          Contact:
          Piet Hoogendoorn, Chairman
          James E. Copeland Jr., Chief Executive Officer
          J. Thomas Presby, Chief Operation Officer
          William A. Fowler, Chief Financial Officer

          DELOITTE TOUCHE TOHMATSU (MEXICO)
          Jaime Balmes No. 11
          Edificio B, 9 Piso, Los Morales
          Mexico City 11510
          Mexico
          Phone: +52 (55) 52 83 77 77
          Fax: +52 (55) 52 83 76 00


          RUIZ, URQUIZA AND COMPANY, SC (Aguascalientes)
          Ruiz, Urquiza and Company, SC
          University 1001, Floor 11-3
          Forests of the Prado
          20127 Aguascalientes, Ags
          Phone: 52 449 912 3567
          Fax: 52 449 912 3789

          RUIZ, URQUIZA AND COMPANY, SC (Chihuahua)
          Avenue Hidden Valley 5700
          Development The Saucito
          31125 Chihuahua, Chih
          Phone: 52 614 439 3932
          Fax: 52 614 439 3942

          E-mail: General information
          mexico@andersen.com

          Public relations
          mexico.relaciones.publicas@andersen.com

          GALAZ, GOMEZ MORFIN, CHAVERO, YAMAZAKI, S.C.
          Jaime Balmes No. 11 Piso 9
          Colonia Chapultepec Los Morales
          Distrito Federal, Mxico
          11510
          Phone: (525) 280-9255
          Fax: (525) 280-9422
          Contact: Mr. Ernesto Valenzuela, Partner Auditor


CYDSA: Reschedules US$200-Mln Debt With Foreign Creditors
---------------------------------------------------------
Mexican textile and chemicals producer Celulosa y Derivados S.A.
(CYDSA) said it reached an agreement with foreign creditors to
restructure close to US$200 million in debt, reports EFE.

The restructuring, which is part of a Financial Reinforcement
Plan initiated April 5, consists of two primary stages: the
rescheduling of US$159 million at a 7-year term, expiring on June
25, 2009 and the repurchase and payment of another US$41 million
in bonds.

"This deal is an important step in our plans to strengthen our
balance sheet, reschedule our bank and eurobond debt and divest
non-core assets," CYDSA CEO Tomas Gonzalez said.

CYDSA said it hired U.S.-based investment bank Salomon Smith
Barney, a unit of Citigroup, to negotiate with creditors and
handle the debt restructuring.

The firm, which has assets of MXN10.02 billion (US$1.11 billion),
reported revenues of MXN6.34 billion (US$705 million) and a net
loss of MXN126 million (US$14 million) for the third quarter of
2001.

According to Gonzalez, CYDSA's Financial Reinforcement Plan has
helped it cut its total debt by US$182 million, going from US$600
million in December 2001 to US$418 million in April.

CONTACT:  SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller

          CYDSA, S.A. DE C.V., IN MEXICO
          Jesus Montemayor, Treasury Director
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


GRUPO BITAL: SCH Purchase Perceived as "Scare" Tactic
----------------------------------------------------
Some Mexican analysts deemed Spain's Banco Santander Central
Hispano's (BSCH) purchase of an extra 8.3 percent stake in
Mexico's Bital for US$85 million as a move to "scare off" ING
Group, the Netherlands-based financial services group, suggests
an article released by the Financial Times.

Bital is looking to up its capital in order to comply with the
new regulatory requirements to be introduced next year, and
agreed last month to allow ING to take a US$200-million stake.
Once this money has been invested, Bital said last month, it
would have adequate capital, and would retain its independence as
a Mexican company, with ING as its largest foreign investor.

BSCH's recent purchase of the stake from BCP of Portugal,
however, means that it will now become Bital's largest foreign
investor, holding 26.6 percent of the capital, and 30 percent of
the voting rights in the Mexican bank.

According to analysts, If Bital were unable to raise the extra
capital from ING, it would probably be forced into selling ahead
of the regulatory deadline, and therefore become a bargain
purchase for BSCH.

While such a large stake would not give BSCH control over Bital,
it would almost certainly deter other foreign investors from
becoming involved.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax:57.21.26.26
          E-mail: ricaggs@bital.com.mx

          BANCO COMERCIAL PORTUGUES
          Miguel Duarte
          +35-121-321-1081;

          CITIGATE DEWE ROGERSON FOR (BPC)
          Patrick Hughes or Paul Hebert
          +1 212-688-6840

          SANTANDER CENTRAL HISPANO S.A.
          Plaza de Canalejas, 1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page: http://www.bsch.es
          Contacts:
          Emilio Botin-Sanz, Chairman
          Ana Patricia Botin, Chairman, Banesto
          Alfredo Saenz, CEO, Chairman BSN, Banif,
                              Deputy Chairman SCH Investment
          Jose Luis del Valle, EVP Finance

          ING GROEP N.V.
          Strawinskylaan 2631
          1077 ZZ Amsterdam,
          The Netherlands
          Phone: +31-20-541-54-11
          Fax: +31-20-541-54-44
          Home Page: http://www.ing.com
          Contacts:
          Ewald Kist, Chairman
          Cees Maas, Chief Financial Officer


HYLSAMEX: Reports US$30M Cash Flow on Higher Sales 1Q02
-------------------------------------------------------
Mexican iron and steel company Hylsamex posted a cash flow of
US$30 million during the first quarter of this year.

The figure, according to a Notimex report, is the same as to the
amount registered during the same period in the previous year.

Sales volume year-on-year rose by 16 percent, but income in
dollars dropped by 11 percent, the Company revealed.

Hylsa, the main subsidiary of Hylsamex, registered a 20-percent
increase in sales during the period, compared to the first three
months of 2001. The Ebitda for the first quarter 2002 totaled
US$19 million, which meant a 3-percent year-over-year increase.

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

CONTACT:  HYLSAMEX
          Investor Relations
          Margarita Gutierrez
          E-Mail: mgutierrez@hylsamex.com.mx

          Ricardo Sada
          E-Mail: rsada@hylsamex.com.mx
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452
          Mexico




               ***********


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.


* * * End of Transmission * * *