TCRLA_Public/020503.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

            Friday, May 3, 2002, Vol. 3, Issue 87



ACINDAR: Shares Gain Strength On Steel Output Recovery  
SCOTIABANK QUILMES: Parent Refutes Cash Injection Reports
SCOTIABANK QUILMES: Analysts See Hipotecario Sale As Exit Plan
TECPETROL: Seeks To Reschedule US$230 Million Debt Repayment


FLAG TELECOM: Enters Agreement With Pakistan Telecom
FLAG TELECOM: Wolf Haldenstein Files Class Action Lawsuit


BELL CANADA: Announces Board of Directors Changes
EMBRATEL: Salomon Cuts Recommendation, Stock Price Target
EMBRATEL: Anatel Begins Antitrust Probe Into 3 Operators
ENRON: Plans To Emerge From Bankruptcy As A US$10-Bln Company
TELEGLOBE: Considers Several Financial Restructuring Options


COEUR D'ALENE: Converts US$5.4 Million Debt to Common Stock
TELEX-CHILE: Southern Cross Increases Ownership To 95.9%


PAZ DEL RIO: Reports Positive Results After Years of Losses

D O M I N I C A N   R E P U B L I C

TRICOM: Moody's Lowers Ratings On US$200 Million Debt


COPACO: World Bank Rep Decisive Government Action
COPACO: Workers Introduce Further Measures To Block Sale


SIDERPERU: Suppliers, Banks Extend $40 Million in Credit

     - - - - - - - - - -


ACINDAR: Shares Gain Strength On Steel Output Recovery  
Shares of Beleaguered Argentine steel firm Acindar on Tuesday
gained 9.6 percent to ARS0.34 on the Buenos Aires Stock Exchange
on expectations that its return to near full-capacity production
could indicate a turnaround after months of woes.

Reuters, citing an Acindar spokesman, reveals that the Company
has slowly increased its steel output to near 100,000 tonnes per
month from levels roughly half that late last year.

Traders are hopeful that the production jump signaled that long-
troubled Acindar might be slowly rebounding after last December's
default on part of its roughly US$370 million in debt due to a
grinding four-year recession.

"There were investors who were convinced that Acindar, as a
company, was finished," said a trader who asked to remain
unnamed. "Now they are showing signs of life, though obviously
the situation is still very serious."

Acindar stock lost roughly 80 percent of its value last year due
to Argentina's deteriorating economic slump and its suffocating
effect on the construction sector.

"Because of the devaluation, we're producing more, though the
profit margin on our export products is very low," said an
Acindar spokesman. "Things are still very tough."

          1609 Boulogne, San Isidro
          E. Zeballos Esq. Uruguay
          Buenos Aires, Argentina
          Phone: +54 11 47198500
          Fax:   +54 11 47198501
          Home Page:
          Lic. Jose I. Giraudo, Investor Relations Manager
          Phone: (54-11) 4 719-8674
          Fax:   (54-11) 4 719-8501 Int. 8674

          Lic. Andrea Dala, Investor Relations Officer
          Phone: (54-11) 4 719-8672
          Fax: (54-11) 4 719-8501 Int. 8672

SCOTIABANK QUILMES: Parent Refutes Cash Injection Reports
Denying reports suggesting that Bank of Nova Scotia is going to
pump cash into its ailing Argentine unit Scotiabank Quilmes SA,
the Toronto-based bank issued a press release Wednesday night

"Consistent with what we have said since December last year,
Scotiabank will not be putting new money into Argentina unless
there are clear rules in place that give confidence that the
systemic economic crisis can be turned around. We continue to
work closely and co-operatively with Argentine authorities to
manage Quilmes."

Last month, the Argentine central bank suspended most of the
operations of Scotiabank Quilmes due to liquidity problems.

The Argentine central bank and government officials have
suggested repeatedly that Scotiabank Quilmes turn to its head
office for more capital, but Bank of Nova Scotia has refused to
sink any more money into its Argentine operation.

Recent reports cited a central bank official who said he'd been
told by Bank of Nova Scotia executives that the company had
reversed its course and is now ready to provide the Argentine
subsidiary with the necessary cash. The official said talks aimed
at reopening Quilmes were almost complete.

           Alan Macdonald
           Chief Executive Officer
           Phone: (54-11) 4338-8000
           Fax: (54-11) 4338-8033
           Mail: 6th Floor
           Gral. J.D. Peron 564
           (C1038AAL) Buenos Aires

           Roy D. Scott
           Vice-President and Managing Director, Latin America
           Phone: (54-11) 4394-8726
           Fax: (54-11) 4328-1901
           Mail: P.O. Box 3955
           C1000WBN Correo Central
           Buenos Aires, Argentina

SCOTIABANK QUILMES: Analysts See Hipotecario Sale As Exit Plan
Commenting on the possible sale of Scotiabank Quilmes to Banco
Hipotecario, analysts said the move would be the beginning of the
end of Bank of Nova Scotia's difficult and costly sojourn into

Recent reports by the Argentine media suggest that Banco
Hipotecario, Argentina's largest mortgage lender, is looking to
buy assets from Scotiabank Quilmes, the Canadian bank's troubled
Argentine subsidiary.

The two banks are said to have discussed a possible sell-off.

Pam Agnew, a Scotiabank spokesperson, refused to comment on the
possible sale of assets, saying the bank "did not comment on
speculation or rumor."

While the market has largely discounted Scotiabank's Argentine
losses, the sale of its assets would nonetheless be considered as
"modestly positive" for the bank, said Quentin Broad, banking
analyst with CIBC.

According to analysts, Banco Hipotecario, which is owned by
I.R.S.A., the country's largest real estate developer whose
stakeholders include international financier George Soros, would
likely be interested in buying Scotiabank Quilmes' mortgage
portfolio, its credit card business and part of its deposit

However, Scotiabank would likely not receive any money for its
sold assets. Rather, it would be an opportunity to cut its losses
and transfer its assets and employees in order to reduce costs
associated with exiting the country, say analysts.

"This (a sale) would be an elegant way of reducing Scotiabank's
exposure in Argentina," said Gabriel Caracciolo, analyst with
ratings agency Standard & Poor's in Buenos Aires.

          151 Reconquista
          Buenos Aires, Argentina
          Phone: +54 011 4347 5546

TECPETROL: Seeks To Reschedule US$230 Million Debt Repayment
Tecpetrol, Argentina's seventh-largest oil producer, made a
bargain with creditors for an extension on the maturity of its

According to Dow Jones, if creditors agree to a plan allowing it
added time to pay its debt, the energy company will slice and
parcel out its U.S. dollar export revenue with them.

"Tecpetrol wants to improve its maturities' schedule ... and it
is giving creditors the best alternative available."

According to company officials, the exploration and production
concern is looking to reschedule payments on up to US$230 million
in debt held by banks and bondholders.

Tecpetrol is pledging to share part of the estimated US$70
million to US$80 million in revenue it nets yearly from overseas
oil sales, said Miguel Di Ranni, the Company's financing

"There's little cash in Argentina right now," Di Ranni said.
"This is an adverse environment to refinance short-term debt

If banks and bondholders accept Tecpetrol's proposal, the Company
would be able to plow working capital into its Argentine upstream
operations and keep its wells pumping and drilling for new
petrolium reserves.

Under the type of structuring the energy company has proposed,
Tecpetrol's overseas customers would deposit what they owe the
oil producer in an offshore escrow account. Investors who agree
to the debt restructuring deal would be paid from that account.

The agreement - essentially structured like a five-year bond -
would allow the company to extend maturities on its debt through
2007. The plan would also enshrine quarterly capital and interest
payments guarantees, Di Ranni explained.

Tecpetrol is the upstream investment unit of the industrial group
Techint. The Company taps roughly 4.4 percent of Argentina's
total daily average of 765,000 barrels per day.

          Carlos M. Della Paolera 299
          floor (20 C1001ADA) Buenos Aires
          Phone: (54-11) 4018-5900
          Fax: (54-11) 4018-5939
          Home Page:


FLAG TELECOM: Enters Agreement With Pakistan Telecom
Pakistan is set to open up as a hub for Internet access following
a unique deal struck between a subsidiary of FLAG Telecom
Holdings Ltd., a leading global network services provider and
independent carriers' carrier, and the state operator, Pakistan
Telecommunications Company Ltd (PTCL).

The building and operation of Pakistan's first VPoP (Virtual
Point of Presence) will initially offer Pakistan-based businesses
MBS (Managed Bandwidth Services) and IP Transit services,
providing high quality Internet access between Karachi, Fujairah
and New York and connectivity to PoPs in Europe and the US.

Service is expected to be operational by the end of May 2002 with
the new found reliability of access enabling Pakistan's business
sectors to tap directly into the international Internet market
for the first time.

Commenting on the agreement, Mr. Walid Irshaid, regional vice
president of Middle East for FLAG Telecom said, "This partnership
between PTCL and FLAG Telecom brings the benefits of high
performance and cost effective global connectivity directly to
businesses in Pakistan. It represents a huge opportunity for both
companies to develop business by serving the needs of the
expanding IT and Internet sectors."

Syed Mukhtar Ahmad, PTCL Chief Engineer said, "I am delighted to
be partnering with FLAG Telecom in this venture. Their
reliability as a global carrier's carrier, coupled with our
standing in Pakistan, will make for a long and rewarding
relationship". FLAG has already established relationships across
the Asian region, through its provision of FLAG Atlantic-1 (FA-1)
and FLAG Europe - Asia (FEA).

About FLAG Telecom

FLAG Telecom is a global network services provider and
independent carriers' carrier providing a 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. On April 12 and
April 23, 2002, FLAG Telecom and certain of its subsidiaries
filed voluntary petitions for reorganization under chapter 11 of
the United States Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of New York. FLAG Telecom
continues to operate its business as a debtor in possession under
chapter 11 protection. FLAG Telecom has the following cable
systems in operation or under development: FLAG Europe-Asia, FLAG
Atlantic-1 and FLAG North Asian Loop.

          John Draheim, +44 20 7317 0826
          David Morales, +44 20 7317 0837
          Mike Buckley, +1 212 333 3810

FLAG TELECOM: Wolf Haldenstein Files Class Action Lawsuit
Wolf Haldenstein Adler Freeman & Herz LLP announces that it filed
a class action lawsuit in the United States District Court for
the Southern District of New York on behalf of purchasers of FLAG
Telecom Holdings, Ltd. ("FLAG" or the "Company") (NASDAQ: FTHLQ)
securities between March 23, 2001 and February 13, 2002,
inclusive, (the "Class Period") against defendants FLAG and
certain of its officers and directors.

The case name and index number are McNeely v. FLAG Telecom
Holdings, Inc., et al., 02 CV 3234. A copy of the complaint filed
in this action is available from the Court, or can be viewed on
the Wolf Haldenstein Adler Freeman & Herz LLP website at The complaint alleges that defendants violated the
federal securities laws by issuing materially false and
misleading statements throughout the Class Period that had the
effect of artificially inflating the market price of the
Company's securities.

During the Class Period, FLAG accounted for strong year-over-year
revenue growth. The complaint alleges that FLAG was actually
experiencing decreasing revenue growth. FLAG undertook a series
of mutual transactions labeled the "dark-fiber" swap. Dark fiber
was fiber optic cable installed in the earth in multiple places,
yet the cable was not used by customers, and therefore not able
to provide revenues. Instead of generating revenues from
customers, the dark-fibers were utilized in a series of
reciprocal transactions with competitors for the purchase and
sale of fiber optic cable. As a result of these transactions,
FLAG was able to mask the eroding growth it was experiencing.

Generally, these mutual transactions occurred in late quarter
"swap" transactions. The Company would exchange capacity and/or
use commitments ("IRUs" or "Indefeasible Rights of Use") with its
supposed rivals, nearly simultaneously and for identical, though
undisclosed, sums of money, which would allow defendants to reach
their financial goals. However, the "dark-fiber" swap materially
misled investors about the operating performance of FLAG.

          270 Madison Avenue
          New York, New York 10016
          Tel: (800) 575-0735

          Fred Taylor Isquith, Esq.
          Thomas Burt, Esq.
          Gustavo Bruckner, Esq.
          Michael Miske
          George Peters
          Derek Behnke


BELL CANADA: Announces Board of Directors Changes
Bell Canada International Inc. announced Wednesday the election
of Mr. Siim A. Vanaselja at its annual meeting of shareholders on
Wednesday, May 1, 2002, in Montreal. Mr. Vanaselja who was
appointed as Chief Financial Officer of BCE Inc. in January 2001
previously held the position of Executive Vice-President and
Chief Financial Officer of BCI.

Also re-elected as directors of BCI at the annual meeting were:
--  Mr. William D. Anderson, Chairman and Chief Executive Officer
of BCI;

--  Mr. John (Ian) Craig, corporate director;

--  The Honourable John Crosbie, P.C., O.C., Q.C., member as
counsel of the law firm Patterson Palmer and Chancellor of
Memorial University of Newfoundland;

--  Ms. Donna S. Kaufman, lawyer and corporate director;

--  Mr. Michel Plessis-Belair, F.C.A., Vice-Chairman, Chief
Financial Officer and director of Power Corporation of Canada;

--  Mr. C. Wesley M. Scott, corporate director;

--  Mr. Louis A. Tanguay, Vice-Chairman of BCI;

--  Mr. H. Brian Thompson, Chairman, President and Chief
Executive Officer of Universal Telecommunications Inc.

Concurrent with these changes, Mr. Jean Monty former Chairman and
Chief Executive Officer of BCE, Mr. Michael Sabia, the newly
appointed Chief Executive Officer of BCE and Mr. H. Arnold
Steinberg, Principal and director of Cleman Ludmer Steinberg Inc.
depart the BCI Board after many years of valued service.

BCI, through Telecom Americas, owns and operates 4 Brazilian B
Band cellular companies serving more than 4.5 million subscribers
in territories of Brazil with a population of approximately 60
million. BCI is a subsidiary of BCE Inc., Canada's largest
communications company. BCI is listed on the Toronto Stock
Exchange under the symbol BI and on the NASDAQ National Market
under the symbol BCICF.

          Marie-Lise Gauthier, 514/392-2318

EMBRATEL: Salomon Cuts Recommendation, Stock Price Target
Salomon Smith Barney downgraded its recommendation on Brazilian
telephony service provider Embratel Participacoes SA to neutral
from outperform, says Dow Jones.

In addition, in a Wednesday research report the investment house
also lowered its price target on the stock to US$3 per American
Depositary Receipt from US$4 an ADR. Midmorning, Embratel was
down 2.7 percent at US$2.55 in scant volume, reveals Dow Jones.

Salomon's actions came after Embratel revealed that its net loss
for the first quarter of the year deepened to BRL36.4 million
(US$1=BRR2.36), compared to a BRL33.7-million loss in the same
period in the previous year.

According to the report: First quarter results "offer scant
comfort that our investment thesis - that is, growth in demand
for data services and the ability to bundle local and long
distance service to corporate customers - should be enough to
offset falling residential voice revenues, and lower tariffs will
play out."

"Our investment view now is that Embratel is an option play,
where if data revenues resume growth towards management's
guidance (of 5 to 15 percent), the stock could reach US$5 per

"But if data growth doesn't pick up again and Embratel can't
maintain its margins on voice transmission services, "net debt
could climb and the stock would be less attractive than it is
now," the firm warned.

To see Embratel's latest financial statements:

          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010

EMBRATEL: Anatel Begins Antitrust Probe Into 3 Operators
Brazil's phone regulator Anatel launched an investigation into a
complaint that Brasil Telecom Participacoes SA, Tele Norte Leste
Participacoes SA and Spain's Telefonica SA charge excessive fees
for the country's two long-distance carriers to use their local
networks, reports Bloomberg.

"Anatel's board of directors has decided to begin an
administrative process against Brasil Telecom, Telemar and
Telefonica to determine if there has been a violation of the
economic order," the regulator said in a statement.

The probe follows a complaint coming from long-distance carriers
Intelig Telecomunicacoes Ltda. and Embratel Participacoes SA, a
unit of WorldCom Inc., that interconnection rates charged by the
local carriers make them less competitive.

According to the three competitors, the rates "make inviable"
their businesses and must be passed on to consumers, Anatel

Embratel recently obtained an injunction from the federal court
in Sao Paulo temporarily suspending Telefonica's long-distance
call license, which was awarded last week by Anatel.

Embratel has repeatedly said Anatel shouldn't allow Telefonica to
expand outside of its home region in Sao Paulo state until it
unbundles its network and charges fair prices for network access.

ENRON: Plans To Emerge From Bankruptcy As A US$10-Bln Company
Enron Corp. is looking to get out of its predicament as a US$10-
billion integrated energy company built around assets in North
and South Americas.

Citing a draft copy of the Company's plans, the Wall Street
Journal reports that the top assets at the reorganized and
renamed company would include Oregon utility Portland General
Electric Co., Brazilian utility Elektro and about 15,000 miles of
pipelines on both continents, less than half the amount it once

The new company, presently dubbed OpCO Energy Co., would own
power plants, electric utilities, natural-gas pipelines and
liquefied natural-gas facilities.

Other assets would be liquidated, and the Company's workforce
would be cut to about 12,000 people from about 23,000 today. It
wasn't clear whether the job cuts would come through firings as
well as selling off assets.

Enron filed for bankruptcy in December and is expected to
continue operating under the court's protection for a number of
years, the Journal says, citing interim Chief Executive Stephen

Enron is currently the target of more than a dozen investigations
by the U.S. Securities and Exchange Commission, the U.S. Justice
Department and congressional committees. The energy company's
collapse cost at least 5,600 people their jobs. About US$78
billion in market value was eliminated since August 2000.

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

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

           Rua Ary Antenor de Souza, 321
           Jd Nova America 13053-024 Campinas - SP
           Phone: +55 19 3726 1098
           Home Page:
           Orlando Rufo Gonzalez, Chairman
           Britaldo Pedrosa Soares, Finance Director

TELEGLOBE: Considers Several Financial Restructuring Options
Teleglobe is now analyzing a range of financial restructuring
alternatives after its parent, Bell Canada Enterprises (BCE),
terminated its long-term funding for the US-based carrier of
carriers last month.

According to a Teleglobe spokesperson, the Company may seek a
partnership with another company or companies, may be bought
outright by an international corporation, or break up and sell
off the company along regional and/or business lines.

BCE, which acquired 77 percent of Teleglobe it did not already
own for CAD$7.4 billion (US$4.7 billion) in 2000, decided to cut
off any further long-term funding for Teleglobe.

BCE attributed its move to a number of factors including:
Teleglobe's revised business plan and outlook with associated
funding requirements; a pragmatic assessment of Teleglobe's
prospects; and a comprehensive analysis of the state of the

Teleglobe provides connectivity to Internet service and content
providers, business customers and carriers through its digital,
ATM, IP, satellite and fiber networks around the globe. Teleglobe
billed US$317 million worldwide in 1Q02, compared to US$334
million in the same period last year.

Rating agencies have aggressively downgraded Teleglobe's debt in
recent days. Its senior unsecured notes are now rated single-C by
Moody's Investors Service and double-C by Standard & Poor's.

Teleglobe operates throughout Latin America and has offices in
Mexico, Argentina, Brazil and Colombia.

          World Headquarters
          11480 Commerce Park Drive
          Reston, Virginia  20191
          Direct telephone: +1.703.755.2000
          Toll-free telephone: +1.800.318.3005
          Fax: +1.703.755.2600
          Toll-free +800.9333.3999
          Direct +1.514.868.7875
          Home Page:
          David L. Thompson, Executive Director-Media & Industry
                             Analyst Relations
          Phone: +1.703.755.2950

          In Brazil:
          Rua Matias Aires, 402 9* Andar
          Sao Paulo, S.P. Brazil 01309-020

          1000, Rue de La Gauchetiere Ouest, Bureau 3700
          Montreal, Quebec H3B 4Y7, Canada
          Phone: 1-888-932-6666
          Home Page:
          General Inquiries
          Phone: 514-870-8777
          Fax: 514-786-3970
          Toll Free: 800-339-6353

          BCE Investor Relations
          Tel: 1-800-339-6353
          Fax: (514) 786-3970


COEUR D'ALENE: Converts US$5.4 Million Debt to Common Stock
In an official statement, Coeur d'Alene Mines Corporation
announced Wednesday that it has recently consummated additional
individually negotiated exchange transactions with certain
holders of its 6% Convertible Subordinated Debentures due June
10, 2002 ("6% Debentures").

In these transactions, the Company issued an aggregate of 1.9
million shares of the Company's common stock in exchange for $2.0
million in principal amount of 6% Debentures. Thus far in 2002,
Coeur has issued 5.3 million shares of common stock in exchange
for $5.4 million of the Company's 6% Debentures, reducing the
principal amount outstanding of 6% Debentures to $17.7 million.

The Company also announced that it intends to offer shares of
common stock in one or more additional exchange transactions with
holders of the 6% Debentures. These additional issuances of
common stock, together with the recently completed issuances of
common stock (collectively, the "Exchange Transactions"), would
normally require approval of shareholders according to the
Shareholder Approval Policy of the New York Stock Exchange (the
"NYSE"). The NYSE generally requires that the shareholders
approve any issuance of common stock, or series of related
issuances, if more than 20% of an issuer's voting power is
involved. However, the NYSE provides an exception to this rule if
the delay caused by seeking shareholder approval could seriously
jeopardize the financial viability of the issuer and the NYSE has
accepted the Company's use of the exception.

In accordance with the NYSE's rule providing that exception, the
Audit Committee of the Company's Board of Directors has expressly
approved the Company's reliance on the exception. Additionally,
the Company is mailing to all shareholders a letter notifying
them of its intention to issue the shares of common stock without
seeking their approval. The Company may issue shares of common
stock in exchange for any outstanding 6% Debentures that are
exchanged in one or more of the Exchange Transactions ten days
after such notice is mailed.

Coeur is taking these actions in order to continue to reduce the
Company's short-term indebtedness. The Company's existing
operations continue to generate strong results and the Company
has recently commenced production at the high-grade Cerro Bayo
mine in Chile. Together, Coeur expects these operational and
financial initiatives to enhance shareholder value.

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.

          Mitchell J. Krebs
          Phone: 208/667-3511 x174

TELEX-CHILE: Southern Cross Increases Ownership To 95.9%
Southern Cross, through its majority owned subsidiary Redes
Opticas, upped its ownership of Chilean telecoms holding Telex-
Chile from 46.9 percent to approximately 95.9 percent, in a
capital increase worth CLP68 billion (US$104 million).

According to a report by Business News Americas, Southern Cross
acquired an aggregate of 3,777,161,888 Class A and B Telex shares
at a subscription price of 18 pesos/share.

With the completion of the capital increase and the conversion of
Telex's financial obligations held by Southern Cross affiliates
into capital stock, Telex has satisfied the conditions
established in its preventive judicial agreements with creditors.

As a result of the capitalization of its debt, Telex's
stockholders' equity at December 31, 2001, on a pro forma basis
for this capital increase, has gone from approximately US$42
million negative to approximately US$62.5 million positive.

The Telex capital increase is scheduled to close on May 30,
irrespective of Southern Cross's participation in the process,
and existing shareholders are likely to experience additional

Southern Cross's takeover of Telex stems from an earlier bid for
the Chilean company's principal asset - network and long distance
operator Chilesat - in November 2001, after Chilesat defaulted on
a US$8.9-million credit facility.

Telex-Chile S.A. is a Chilean telecommunications holding company
principally engaged, through its subsidiaries, in the provision
of long distance services within Chile as well as in other
selected Latin American countries and the United States. It is
one of the leading facilities-based providers of public long
distance services within Chile through Chilesat S.A., its long
distance carrier and principal subsidiary.

          Mackenzie Partners, Inc., New York
          Charlie Koons, 212/929-5708

          TELEX-CHILE SA
          Rinconada El Salto 202,
          Santiago, Chile
          Phone: +56-2-380-0171
          Fax: +56-2-382-5142
          Toll Free: 800-379-9110
          Home Page:
          Juan Eduardo Ibanez, Chairman
          Fernando Poch, CEO
          Daska Radic, Vice Chairman
          Rafael Wilhelm, CFO

          Investor Relations
          Fax: 3825142


PAZ DEL RIO: Reports Positive Results After Years of Losses
After flowing red ink for years, including losses of COP13.6
billion in 1Q01, COP50.6 billion in 2000 and COP90.3 billion in
1999, Colombian steel firm Acerias Paz del Rio is now back in the
black with net earnings of COP483 million for 1Q02.

However, according to a Business News Americas report, sales
revenues in 1Q02 were down 2.5 percent in local currency terms to
US$17.1 million, while volumes declined 12 percent to 53,500t,
reflecting Paz del Rio's policy of adding value to its products.

Paz del Rio, which makes steel products, is currently operating
under Ley 550, the Colombian version of Chapter 11 Bankruptcy

The Company is looking to joint venture projects from its assets,
including a large stable of iron ore, coking coal and limestone
mines and properties in Colombia, and has been in talks with
Japan's Kobe Steel to discuss possible investments.

D O M I N I C A N   R E P U B L I C

TRICOM: Moody's Lowers Ratings On US$200 Million Debt
A relatively flat revenue growth over the past several quarters,
as well as a deterioration in EBITDA performance over the same
period, led international credit ratings agency Moody's Investors
Services to cut the ratings for some US$200 million of debt
securities of Tricom.

Moody's also placed the Dominican Republic-based integrated
telecoms services provider on negative outlook.

According to the ratings agency, Tricom's operating performance
to date has been negatively impacted by lower international
settlement and outbound toll rates, higher operating costs
associated with new initiatives, including its Central American
strategy, and increased competitive pressures.

The ratings agency also explained that it has placed Tricom on a
negative outlook due to potential challenges that it may be
dealing with, including: the integration of its recent
acquisition of Telecable Nacionale (TCN), and its success in
marketing a bundled product to this new customer base; ramping up
of its operations in Panama; ongoing competitive pressures from
Dominican Republic-based mobile operator Codetel and various new
entrants; and the company's reliance on short-term borrowing.

Moody's said revenue growth could be impacted by Tricom's
cutbacks in capital expenditures. The agency also sees further
downward pressure on international settlement rates resulting
from the regulatory and competitive environment.

On a brighter note, Moody's cited Tricom's past success in
growing its business and its ability to generate positive
operating earnings. It also said Tricom should continue to
benefit from a relatively strong domestic economic environment.

Tricom provides international and domestic long distance, local
telephony, mobile and paging services in the Dominican Republic.

The affected debts and their ratings changes are:

- Senior Implied rating to B2 from B1
- 11.375% Guaranteed Senior Unsecured notes to B3 from B1
- The Senior Unsecured Issuer Rating to Caa1 from B3

The outlook is Negative.

          Ave. Lope de Vega No. 95
          Santo Domingo, Dominican Republic
          Home Page:
          Miguel Guerrero, Director Investor Relations
          Phone: (809) 476-4012
          Fax: (809) 476-6700

          In New York:
          Strategic Growth International, Inc.
          111 Great Neck Road, Suite 606
          Great Neck, NY 11021
          Richard Cooper / Robert Schatz
          Phone: (516) 829-7111
          Fax: (516) 829-8319


COPACO: World Bank Rep Decisive Government Action
Peter Hansen, a representative of the World Bank in Paraguay, is
urging the government to "make decisions" and not delay the
auction of state-owned telco Copaco again so as not to dampen the
trust of the WB and prospective investors, Business News Americas

Hansen made the suggestion after authorities, in mid-April,
postponed a scheduled April 30 auction for 30 to 60 days, the
third delay in the process, to allow congress to investigate
corruption charges.

Juliana Abreu, an analyst at Pyramid Research analyst, is also
backing Hansen's suggestion.

Hansen acknowledged irregularities in the process, in particular
a US$500,000-plus payment to a friend of the former president to
underwrite Copaco's charter, although he said this money was not
part of the WB financing.

"We are not going to let this act impede the sale," Hansen vowed.

Besides the corruption allegations, he complimented the
government, saying it had carried out 100 percent of the public
tender process in line with WB rules, which he said are tougher
than local rules.

The privatization also faces opposition from unions, which
started a three-day strike Monday. Abreu said the strike
indicates that the government still walks a tight line on the
labor front.

Meanwhile, enthusiasm is being diluted by a lack of information
on how long Copaco will retain its local telephony monopoly
privileges, she said, adding that Argentina's economic crisis
could pose another impediment to the sale's success.

The situation is unclear at the moment, and before the auction
can proceed, "there are points that are going to have to be
renegotiated," she added.

On the bright side, the US$400-million asking price includes
US$200-million for reinvesting in the company, Abreu pointed out,
meaning the winner will only be forking out US$200 million.

Five companies are pre-qualified to bid: 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; and Telecom

CONTACT:  COPACO S.A. (Ex. Antelco) - Paraguay
          Phone: 595-21-2192175
          Fax: 595-21-2192175

          U.S. Headquarters
          Pyramid Research
          58 Charles Street
          Cambridge, MA 02141
          Phone: 617 494 1515
          Fax: 617 494 8898
          Home Page:

          Latin America Contacts:
          Daniel Torras, Director

          Leslie Arathoon, Manager

          WORLD BANK
          World Bank Headquarters
          1818 H Street, N.W.
          Washington, D.C. 20433
          United States
          Phone: (202) 473-1000
          Fax: (202) 477-6391
          Home Page:
          Isabel Guerrero, Country Director -
          David de Ferranti, Vice President, Latin America

COPACO: Workers Introduce Further Measures To Block Sale
The Paraguayan government will now have to deal with mounting
pressure imposed by telephone workers seeking to block the May 30
sale of state-run phone company COPACO. The challenge comes after
the government failed to meet their demands.

According to an EFE report, these workers have decided to begin
new litigation and other measures designed to pressure the
administration to block COPACO's upcoming privatization.

Gustavo Vargas, of the telecommunication workers union
(SINATTEL), explained that the union, which represents more than
4,000 workers from the COPACO, is no longer interested in seeking
severance packages for those workers who will be laid off,
rather, it is trying to block the privatization of the Company
set for May 30.

The decision was made after the union called a three-day strike
to demand that the government of President Luis Gonzalez Macchi
respect the agreement signed on November 30 that provides
severance pay for laid off workers.

But the government failed to respond to the workers' request to
find out whether a private bank would make the severance payments
or whether this would first have to go to the Treasury, as
Finance Minister James Spalding suggested.

The minister said all proceeds from the sale should be turned
over to the Treasury to be reinvested in road construction and
other development programs, rather than pay the workers anything.

Vargas said that Spalding's position goes against what the
government agreed to with the unions, and because of this and
other irregularities, Macchi's administration has lost

"We're going to ask a judge to rule on whether the state is
obligated to give workers a severance package or whether this is
the responsibility of the new employer, and although the Banco
Mundial doesn't like this, this process will be immersed in a
labor dispute," he said.

The privatization of COPACO has now entered the final stretch
despite the marches and counter-marches held regarding reports of
irregularities in this process.

The lower house of Congress has begun a debate to initiate
measures to stop the COPACO sale given the lack of transparency
and the possibility that the buyer could become a "private

In the midst of these complaints, representatives from the Banco
Mundial (BM), which is monitoring and financing the privatization
process, insists there can be no further delays or the five
bidding companies will lose interest.


SIDERPERU: Suppliers, Banks Extend $40 Million in Credit
Peruvian steel major Siderperu, which is currently restructuring
liabilities worth US$103 million, obtained a US$30-million credit
from suppliers and a US$10-million credit from banks.

Siderperu, which went into a form of bankruptcy protection in
August to completely refinance itself, will be put under
supervision of a committee teaming banks and supplier creditors.

The Company is to invest US$4 million this year, and US$6 million
annually over the next 8-10 years, following its restructuring

Siderperu predicted 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.

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.

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