TCRLA_Public/020418.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 18, 2002, Vol. 3, Issue 76



BANCO NACION: CB Chairman Denies Privatization Rumors
BLADEX: Fitch Downgrades Ratings Over Continued Exposure Issues
ENERSIS: Wants Argentina To Pay For Losses
FLEETBOSTON: Cutting Latin America Exposure After Heavy Losses
RCI BANQUE: Moody's Cuts Rating To Ca Over Currency Restrictions


FLAG TELECOM: Bondholders Allege Fraudulent Fund Transfer
FLAG TELECOM: Seeks To Wind Up Debtor Entities In Bermuda Court
GLOBAL CROSSING: Shutters Beverly Hills Office


AES CORP.: Restructures Eletropaulo Holding Company Financing
GLOBO CABO: Shareholders Suggest Novo Mercado Listing
NRG ENERGY: Xcel Extends Buy Back Offer Until May 8
NRG ENERGY: Company Profile
TELECOM SECTOR: Regulator Shuns Report On Possible Cash Crunch
VARIG: Finds Better Demand for New York Flights


MAXCOM TELECOMUNICACIONES: Extends Exchange Time, Lowers Minimum


COPACO: Delays Privatization Sale For A Month


SIDOR: Alfa Considers Options As Steel Recovery Eludes Region

     - - - - - - - - - -


BANCO NACION: CB Chairman Denies Privatization Rumors
Argentine central bank chairman Mario Blejer denied recent
reports that the government may try to sell federal bank Banco
Nacion in order to appease the IMF and to obtain fresh funds to
fill empty state coffers.

In a Business News Americas report, Blejer said Banco Nacion, one
of the two largest banks in Argentina in terms of loans and
deposits, will not be privatized due to the country's financial

In January, Moody's Investors Service said that Banco Nacion
could become insolvent. Prior to its report, the ratings agency
downgraded Nacion's long-term foreign currency deposits to `Ca'
from `Caa3' due to the deteriorating economic, financial and
social conditions in Argentina.

          Bartolome Mitre 326
          Capital Federal, 1036
          Buenos Aires, Argentina
          Phone: 011-4347-6000
          Fax: 011-4342-2991

BLADEX: Fitch Downgrades Ratings Over Continued Exposure Issues
Fitch Ratings has downgraded the long-term foreign currency
rating of Banco Latinoamericano de Exportaciones (BLADEX) (NYSE:
BLX) to 'BBB-' from 'BBB'. The Individual rating has been
downgraded to 'D' from 'C'. Both these ratings remain on Rating
Watch Negative. The short-term foreign currency debt and support
ratings are affirmed at 'F3' and '4', respectively.

The downgrades reflect continued concern over BLADEX's exposure
to Argentina and with the bank's capacity to generate more
appropriate levels of reserves to cushion against eventual losses
that creditors will face as exposure to Argentina is
restructured. Such a restructuring process will be a prolonged
one, and cannot begin in earnest until the negotiations taking
place between Argentina and the IMF come to some conclusion.

Positively, bank management continues to proactively manage the
situation. Argentine exposure has been reduced from its peak of
US$1.54B in February 2001 to US$1.1B at end-2001, while liquidity
reserves have been bolstered; Argentine exposure has declined
modestly since year-end. Moving ahead, maintenance of current
rating levels will depend on clear evidence of continued
shareholder support for the bank in maintaining strong liquidity
and in taking the actions necessary to build reserves for its
Argentine exposure to a more adequate level in the near term.

CONTACT:  Fitch Ratings
          Ricardo Chaves
          Phone: 1-212-908-0606
          Linda Hammel
          Phone: 1-212-908-0303

          Peter Shaw
          Phone: 1-212-908-0553 (New York)

          James Jockle
          Phone: 1-212-908-0547 (New York)

          Calle 50 and Aquilino de la Guardia
          P.O. Box 6-1497, El Dorado Panama,
          Republic of Panama
          Phone:  (507) 210-8500
          Jose Castaneda, CEO
          Sebastiao Toledo Cunha, Chairman of the Board
          Tatiana Calzada, Legal Counselor

ENERSIS: Wants Argentina To Pay For Losses
Enersis SA, South America's second-biggest energy company,
demanded that Argentina should compensate it for financial losses
sustained in its investments after modifying the rules for
private public service companies.

Enersis Deputy Chief Executive Officer Juan Ignacio Dominguez
earlier predicted that the Company, which controls the Argentine
electricity distributor Edesur, may reduce earnings this year by
as much as US$100 million, before interest, taxes, depreciation
and amortization, due to the devaluation and recession in

Enersis previously unveiled plans to cut investments in the
region by 9 percent to US$650 million this year, from the US$712
million it has spent last year.

The Company's global debt now stands at US$9.3 billion, of which
US$750 million corresponds to subsidiaries in Argentina and
US$250 million to Edesur.

           Santo Domingo 789
           Santiago, Chile
           Phone: (562) 688-6840
           Alfredo Llorente, Chairman
           Enrique Garcia, CEO
           Rafael Miranda, Vice Chairman
           Mauricio Balbontin, CFO
           Domingo Valdes, Gen. Counsel

FLEETBOSTON: Cutting Latin America Exposure After Heavy Losses
Chad Gifford, chief executive of FleetBoston Financial Corp.,
said that the seventh-largest bank in the U.S. will not invest
any new capital in Latin America and will work to reduce its
overall exposure there.

According to chief financial officer Eugene McQuade, in the
fourth quarter of last year, the Company lost US$507 million, or
49 cents per share, largely due to a US$1.19 billion, or US$1.14
per share, write-down related in part to the Argentine financial
crisis. The latest quarter included US$25 million more in
Argentine write-downs drawn against a US$1 billion reserve fund.

FleetBoston is the sixth largest bank in Argentina with more than
100 offices. The bank's Latin American operations last year
accounted for 9 percent of its net revenue, with the bulk coming
from Brazil and Argentina, where FleetBoston had between US$13
billion and US$16 billion in loan portfolios.

          100 Federal St.
          Boston, MA 02110    
          Phone: 617-434-2200
          Fax: 617-434-6943
          Home Page:
          Investor Relations
          Phone: 617-434-2200

          Terrence Murray, Chairman
          Charles K. (Chad) Gifford, President, CEO, and Director
          Eugene M. McQuade, Vice Chairman and CFO

RCI BANQUE: Moody's Cuts Rating To Ca Over Currency Restrictions
Moody's Investors Service downgraded the rating of RCI Banque
Succursal Argentina to Argentina's country ceiling (Ca) due to
prevailing foreign currency and deposit restrictions in

The downgrade comes in conjunction with Moody's rating actions at
the company's parent, RCI Banque (formerly known as Renault
Credit International S.A. Banque), a 100-percent owned subsidiary
of Compagnie Financiere Renault S.A. (not rated), which in turn
is 100-percent owned by Renault S.A. (rated Baa2).

Moody's assigned long- and short-term bank deposit ratings of
Baa1/P-2 and a bank financial strength rating of C to RCI Banque.
The outlook for RCI Banque's deposit and financial strength
ratings is stable.

Moody's said that it assigned Baa1/P-2/C bank ratings to RCI
Banque following an individual assessment of the bank's
creditworthiness. In the past, the ratings of the debt issuance
programs of RCI Banque and of its issuing subsidiaries and the
rating of RCI Banque Succursal Argentina were directly aligned
with Renault's senior unsecured rating of Baa2.

Moody's, in assessing the credit standing of RCI Banque, said
that it took into consideration the financial strength of the
bank on a stand-alone basis, its relationship with its ultimate
owner Renault, and the level of protection provided to RCI
Banque's creditors by the French bank regulatory and legal

The rating agency pointed to the fact that because RCI Banque is
a regulated credit institution, its debt holders may benefit from
a relatively enhanced level of protection.

On the other hand, RCI Banque's deposit ratings remain closely
linked to Renault's Baa2 rating, given the strategic, commercial,
and governance links that exist between the car manufacturer and
its financial subsidiary.

Headquartered in Noisy-le-Grand (France), RCI Banque reported
consolidated assets of EUR19.5 billion and net profits of EUR149
million at year-end 2001.

New York
Samuel S. Theodore
Managing Director
Moody's Investors Service

New York
Patricia Dambrine
Vice President - Senior Analyst
Moody's Investors Service


FLAG TELECOM: Bondholders Allege Fraudulent Fund Transfer
A Flag Telecom bondholders' committee, which was formed before
the firm filed for bankruptcy protection last Friday, filed a
complaint with the U.S. Bankruptcy Court in Manhattan alleging
the firm fraudulently transfered funds to a nondebtor subsidiary,
reports Dow Jones.

Prior to Flag Telecom's bankruptcy filing, an ad hoc bondholders'
committee was formed to negotiate a potential restructuring of
the Company's business or a sale of its assets.

The committee holds about US$200 million of Flag Telecom's
11.625-percent senior dollar notes due 2010 and about EUR210
million of the firm's 11.625-percent senior euro notes due 2010.

In a filing last Friday, the committee alleged that Flag Telecom
transferred about US$210 million - roughly 50 percent of its
assets - "for no consideration in return" to Flag Pacific
Holdings Ltd., a unit that didn't file for bankruptcy. The
committee contends that Flag Telecom couldn't offer "any proper
justification for the fraudulent transfer."

In response to the committee's filing, Flag Telecom's attorney,
Conor D. Reilly, of the firm Gibson Dunn Crutcher LLP in New
York, said that the Company believes that the allegations of the
bondholders' committee are "totally without merit."

Reilly stated that the transfer of funds to Flag Pacific Holdings
was "not a fraudulent transfer in any sense of the term."

In its filing, the committee also alleged Flag Telecom recently
paid US$4.6 million in retention payments to nine senior
officers, amended the contract of its chief executive to increase
his severance payment to US$2.7 million, and paid US$2.5 million
to certain employees of nondebtor affiliates. The committee says
the transfer was likely the source of the US$2.5 million paid to
employees, according to the filing.

The committee is now asking the U.S. Bankruptcy Court in
Manhattan to restrict Flag Telecom from spending any cash without
court approval.

          200 Park Avenue
          New York, New York
          Phone: 212-351-4000
          Fax: 212-351-4035
          Home Page:
          Conor D Reilly
          Phone: (212) 351-3850

FLAG TELECOM: Seeks To Wind Up Debtor Entities In Bermuda Court
Flag Telecom is looking to wind up some or all of its debtor
entities and affiliates in the Supreme Court of Bermuda, says Dow

As a result, Flag Telecom would apply for the appointment of
joint provisional liquidators under Bermuda law.

Since the proceedings in Bermuda would be ancillary to the
Chapter 11 case, the Company said it shouldn't require bankruptcy
court approval to begin those proceedings.

As of March 31 in its bankruptcy petition, Flag Telecom Holdings
Ltd. listed total assets of about US$3.3 billion and total debts
of nearly US$2.6 billion.

In another filing, subsidiary Flag Ltd. cited roughly $1 billion
in total assets and about $798.3 million in total debts.

The Company's board authorized the Chapter 11 filing after the
acceleration of Flag Atlantic Ltd.'s bank debt by a syndicate of
bank lenders, which represented a cross-default under Flag
Telecom's indenture for its outstanding senior notes.

Flag Telecom provides high-speed broadband global network
services and is a carrier for independent carriers. It also uses
its network service products to address the needs of application
service providers, Internet service providers and multinational
corporate customers.

GLOBAL CROSSING: Shutters Beverly Hills Office
Bermuda-based firm Global Crossing Ltd. officially closed its
flagship Beverly Hills office Tuesday, the AP reports.

The closure comes after Judge Robert Gerber of the United States
Bankruptcy Court in Manhattan ruled that Global Crossing could
reject the US$400,000-per-month lease after the firm said the
rent due was significantly greater than the property's current
market sublease value.

Global Crossing founder and chairman Gary Winnick bought the
former MCA building in 1998 through his investment firm Pacific
Capital Group for US$41.5 million. Subsequently, he leased it to
Global Crossing through a third firm he managed. The whole
leasing arrangement drew scrutiny in the wake of Global
Crossing's bankruptcy filing on Jan. 28.

In a deal made in October 1999, Global Crossing agreed to pay
North Crescent Realty, a subsidiary of Pacific Capital,
US$400,000 a month to lease the building. Global Crossing then
subleased space back to Pacific Capital for US$53,000 a month.

The agreement also involved Global Crossing paying North Crescent
US$3.2 million toward US$7.5 million of renovations, according to
regulatory filings.


AES CORP.: Restructures Eletropaulo Holding Company Financing
The AES Corporation announced Tuesday that its subsidiaries had
reached agreement with the Brazil National Bank for Economic and
Social Development (BNDES) to restructure financing related to
Eletropaulo Metropolitana Electricidade de Sao Paulo S.A.

Under the terms of the agreement, BNDES agreed to defer a $170
million payment due on April 15 owed by an AES subsidiary for the
acquisition of common shares of Eletropaulo, S.A., the electric
distribution company for Sao Paulo, Brazil.

AES said its subsidiary had paid approximately $34 million in
interest due to BNDES and also agreed to pledge to BNDES as
additional collateral two of its Brazilian businesses, AES SUL
and AES Uruguaiana. The arrangement is part of a larger
restructuring that will amend the existing financing arrangements
by May 30 to reflect a new payment schedule.

As part of the overall agreement, principal and accrued interest
due during 2002 will be rescheduled to a payment later this year
of no less than $85 million, and the remainder, not expected to
exceed approximately $300 million, will be due in April and
December of 2003.

The agreement is subject to the execution of definitive
documentation, which the parties expect to happen within the next
45 days.

AES is a global power company comprised of competitive
generation, distribution and retail supply businesses in
Argentina, Australia, Bangladesh, Brazil, Cameroon, Canada,
Chile, China, Colombia, Czech. Republic, Dominican Republic, El
Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan,
the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Qatar,
Sri Lanka, Tanzania, Uganda, Ukraine, the United Kingdom, the
United States and Venezuela.

The company's generating assets include interests in one hundred
and eighty one facilities totaling over 63 gigawatts of capacity.
AES's electricity distribution network has over 946,000 km of
conductor and associated rights of way and sells over 135,000
gigawatt hours per year to over 19 million end-use customers.

In addition, through its various retail electricity supply
businesses, the company sells electricity to over 154,000 end-use

          Kenneth R. Woodcock, 703/522-1315

GLOBO CABO: Shareholders Suggest Novo Mercado Listing
Globo Cabo shareholders have asked the beleaguered cable
television company to list shares through Brazil's modern-style
Novo Mercado stock exchange in the "shortest timeframe possible,"
reveals Dow Jones.

The listing would be made as part of a recently announced
recapitalization plan that primarily aims to raise BRL1 billion
($1=BRR2.30) in an upcoming share offering. Globo Cabo currently
has debt totaling BRL1.6 billion. With the new capital increase,
its liabilities should be reduced to about BRL800 million.

To see financial statements:

          Investor Relations:
          Luis Henrique Martinez, +5511-5186-2684,

          Marcio Minoru, +5511-5186-2811,

          Main Office
          Av. Republica do Chile,
          100 Rio de Janeiro - RJ
          Phone: (021) 2277-7447/6978
          Home Page:

NRG ENERGY: Xcel Extends Buy Back Offer Until May 8
NRG Energy stockholders have until May 8 to consider Xcel Energy
Inc.'s offer to buy back the remaining 26 percent of its power
producer subsidiary.

The NRG board has recommended that stockholders accept the offer
under which, NRG's public shareholders will receive one-half
share of Xcel common stock in a tax-free exchange for each
outstanding share of NRG common stock they hold.

Xcel currently owns 74 percent of NRG.

Xcel spun off about one-fourth of its stake in NRG in offerings
in both 2000 and 2001. But the economic slowdown and changes in
perceptions about independent power producers and power market
capacity hurt NRG's financial performance and its ability to
raise money for projects and acquisitions.

In an announcement made Monday, NRG said it has decided to sell
some of its assets overseas, and has included in its decision to
sell its assets in Latin America. It has hired Deutsche Bank to
manage the sale of its portfolio there.

NRG owns natural gas, hydroelectric, oil, coal and geothermal
generators in Brazil, Bolivia and Peru. The Company owns natural
gas, coal and oil plants in the U.K., Germany, Hungary, the Czech
Republic and Poland.

NRG ENERGY: Company Profile
NAME:  NRG Energy, Inc.
       901 Marquette Avenue
       Suite 2300
       Minneapolis, MN 55402-3265

PHONE: 612.373.5300

FAX: 612.373.5312


     David Peterson, Chairman, President, and CEO
     Leonard Bluhm, Exec. Vice President, and CFO
     W. Mark Hart, Senior Vice President    
     Keith Hilless, Senior Vice President, Asia Pacific   
     Craig Mataczynski, Senior Vice President, North America

                    Phone: 612/313-8900

TYPE OF BUSINESS: A leading independent power producer, NRG
Energy owns interests in more than 75 power projects (mainly
fossil-fueled), some of which are under construction; its
operational generating capacity is nearly 20,000 MW. The bulk of
NRG's power plants are located in North America, but it also has
power projects in Asia, Australia, Europe, and Latin America. NRG
also has district heating and alternative energy projects in the
US. The firm sells its electricity through long-term contracts or
on the spot market; it also markets natural gas, oil, and other
commodities. Xcel Energy, which owns 74% of NRG, plans to buy
back the 26% stake that it sold to the public in 2000 and 2001.

SIC: Utilities - Independent Power Producers & Marketers

EMPLOYEES: 3,888 (last reported count)

     Goldman Sachs (For European and UK portfolios)
     85 Broad St.
     New York, NY 10004   
     Phone: 212-902-1000
     Fax: 212-902-3000
     Home Page:

     Deutsche Bank (Latin American portfolio)
     Taunusanlage 12
     60262 Frankfurt, Germany     
     Phone: +49-69-910-91000
     Fax: +49-69-910-34227
     Home Page:

     ABN-AMRO (Asia-Pacific portfolio)
     Foppingadreef 22
     1102 BS Amsterdam, The Netherlands     
     Phone: +31-20-628-9393
     Fax: +31-20-629-9111
     Home Page:

LEGAL ADVISOR: Sullivan & Cromwell
               125 Broad St.
               New York, NY 10004-2498   
               Phone: 212-558-4000
               Fax: 212-558-3588
               Home Page:

AUDITOR: PricewaterhouseCoopers LLP
         1301 Avenue of the Americas
         New York, NY 10019    
         Phone: 646-471-4000
         Fax: 646-394-1301
         Home Page:

To see financial statements:

TELECOM SECTOR: Regulator Shuns Report On Possible Cash Crunch
Brazil's telecommunications industry regulator denied a report
that that some phone companies may be running out of cash and may
collapse this year, relates Bloomberg.

"The sector is strong," said Antonio Carlos Valente, the acting
president of Anatel, as the regulator is known. "Brazil's telecom
industry has had great gains, not only in terms of expansion and
the provision of new services, but also in the creation of new

The report in question was released by the Correio Braziliense
newspaper. According to the article, Central Bank President
Arminio Fraga and Luiz Fernando Figueiredo, the bank's monetary
policy director, told government officials in a letter about
difficulties facing phone companies.

Thais Heredia, a central bank spokeswoman, denied the bank
"produced any letter."

In the article, which said Fraga knew of phone companies'
problems, Correio questioned the government's strategy to sell
some of its state-owned assets.

VARIG: Finds Better Demand for New York Flights
Brazilian air transportation company Varig, which ended 2001 with
BRL480.87 million in losses, is looking at a favorable market in
New York.

According to a report released by O Estado de Sao Paulo, the
Brazilian airline has decided to increase the number of flights
it offers in New York as the level of activity there has eclipsed
that of the pre-September 11 terrorist attacks.

Varig has also seen benefits in the cessation of United Airline
flights from New York to Brazil. The airline is seeking new
opportunities in Latin America, with flights to Mexico
increasing, and the possibility of flights to Ecuador.

Just recently, Samuel de Paula Matos, a partner at the Brazilian
business of Arthur Andersen LLP, who signed off on Varig's
accounts, revealed that Varig is in need of cash in the short-
term in order to keep flying.

Carlos Albano, an analyst at Uniao de Bancos Brasileiros SA in
Sao Paulo said that a "reasonable" estimate would be US$400
million for the amount the airline needs to reduce its debt and
fund its business.

Varig, which is Brazil's biggest airline, said it plans to offer
new equity to raise funds to pay down part of its US$900-million

Under Brazilian law, a foreign airline could acquire a maximum of
20 percent of Varig. The Ruben Berta Foundation, which is
controlled by Varig's employees, has 87 percent of the airline's
common, or voting, shares.

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page:
          Dorival Ramos Schultz, EVP Finance and CFO

          Investor Relations:
          Av. Almirante Silvio de Noronha,
          n  365-Bloco "B" - s/458 / Centro
          Rio de Janeiro, Brazil


MAXCOM TELECOMUNICACIONES: Extends Exchange Time, Lowers Minimum
In an official company news release, Maxcom Telecomunicaciones,
S.A. de C.V. announced Tuesday the extension of the exchange
offer period for its Series B Senior Notes, which was due to
expire April 16, until April 23, 2002 at 5:00 PM New York City

Also on Tuesday, Maxcom announced that it is amending the minimum
tender condition to the exchange offer, from 95.0% to 93.9% of
the total 13-3/4% Series B Senior Notes due 2007 outstanding.  As
of the close of business April 16, 2002, The Bank of New York,
the exchange agent, has received tenders representing 93.9% of
the total notes outstanding.

On March 14, 2002, the Company commenced an offer to exchange any
and all of its 13-3/4% Series B Senior Notes due 2007 for up to
$175 million aggregate principal amount of New Senior Notes and
up to an aggregate of 28,050,000 ordinary participation
certificates (CPOs), each representing one share of Series N2
Convertible Preferred Stock with limited voting rights, upon the
terms and conditions set forth in the Offering Circular dated
March 14, 2002 and accompanying Letter of Transmittal.

The $175 million New Senior Notes will bear 0% (zero) interest
through March 1, 2006 and will accrue interest thereafter at an
annual interest rate of 10%.  Interest will be payable in cash on
September 1st, 2006 and March 1st, 2007.  The Series N2
Convertible Preferred Stock, which would represent 15.9% of the
total capital stock of Maxcom, will have an initial liquidation
preference of U.S.$0.4927 per share, and limited voting rights.

As part of the exchange offer, the Company is soliciting the
consent of its holders to amend the indenture governing the 13-
3/4% Series B Senior Notes to eliminate all of the restrictive
covenants and certain events of default.

Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile connectivity
to small- and medium-sized businesses and residential customers
in the Mexican territory.  Maxcom launched commercial operations
in May 1999 and is currently offering local, long distance and
data services in Mexico City and the City of Puebla.

          Jose-Antonio Solbes, +5255-5147-1125

          Lucia Domville of Citigate Dewe Rogerson


COPACO: Delays Privatization Sale For A Month
Paraguay's government has decided to postpone the sale of state-
run telecoms monopoly Copaco by 30 days, reports Business News
Americas, citing a company source.

"Although I don't have official confirmation, [the sale] has been
postponed 30 days," the source said, adding that the government
was likely to change the date by decree on Tuesday afternoon or
Wednesday morning.

Copaco was originally slated for privatization April 30 with a
base price of US$400 million.

The five companies pre-qualified to bid for Copaco are: Brasil
Telecom; Paraguayan mobile operator Telecel (Millicom); Compania
de Telecomunicaciones, a consortium composed of Paraguay's Citsa
(Rieder Group) and Germany's Detecon; Telefonica Internacional
(TISA), a subsidiary of Spain's Telefonica (NYSE: TEF); and
Telecom Argentina.


SIDOR: Alfa Considers Options As Steel Recovery Eludes Region
Mexico's Grupo Alfa may pull out of Venezuela's Siderurgica del
Orinoco SA (Sidor) if international steel prices do not improve
and if the situation at the Guayana-based steel mill becomes
untenable. However, with a recovery in demand, the outlook is now
improving. Alfa owns a stake in Sidor through its subsidiary

Dionisio Garza Medina, president and chairman of the Alfa group,
regretted buying a share in Sidor, which it bought together with
a consortium of other steel companies. But at the time Sidor
looked just as promising as a number of other options, he said.

"After the takeover the recession came and steel prices dropped
to historic lows," he said.

Sidor is 70-percent owned by Argentina's Siderar, Hylsamex, Tubos
de Acero de Mexico SA, Brazil's Usinas Siderurgica de Minas
Gerais and Venezuela's Siderurgica Venezolana Sivensa SA. The
remaining 30 percent is owned by Venezuela's state heavy industry
company CVG.

          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page:

          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


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
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