TCRLA_Public/020506.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

            Monday, May 6, 2002, Vol. 3, Issue 88


* A R G E N T I N A *

BANCO GALICIA: Liquidity Woes Drag Down Parent's Earnings
ENERSIS: Fitch Ratings Downgrades Enersis to 'BBB+'
IMAGEN SATELITAL: S&P Cuts Ratings to 'D' After Missing Payment
LITORAL CITRUS: Calls in Receives With ARS23.2 Mln in Debts
TECPETROL: S&P Puts Rating on CreditWatch Negative

* B E R M U D A *

FOSTER WHEELER: Announces First-Quarter Financial Results
FOSTER WHEELER: Bondholders Adopt Wait-And-See Attitude
FOSTER WHEELER: Company Profile

* B O L I V I A *

COTEL: Looks to Breakeven in Two Years' Time

* B R A Z I L *

GLOBO CABO: Sees 6.7% Drop in Number of Subscribers During 1Q02

* C H I L E *

DISPUTADA: Exxon Reaches Agreement to Sell Mine to Anglo American
MANQUEHUE NET: 1Q Loss up 233% on Losses From Other Related Firms

* C O L O M B I A *

AVIANCA: Brings More Losses to Parent
SEVEN SEAS: Provides Update on Guaduas Oil Field Production

* M E X I C O *

GRUPO SIMEC: Announces Final Results for Year Ending Dec 31, 2001
LASON INC.: Announces Approval of Its Reorganization Plan
VITRO: Deposits Funds for Payment of Yankee Bond Principal

* V E N E Z U E L A *

SIVENSA: Posts Better 2Q Results on Lower Losses at IBH Unit


BANCO GALICIA: Liquidity Woes Drag Down Parent's Earnings
Argentine financial holding Grupo Financiero Galicia (GFG) is now
feeling the troubles hitting its subsidiary, Banco de Galicia y
Buenos Aires SA, the country's largest private bank.

According to the group, its net profit fell 7.5 percent in the
fiscal year ended Dec. 31, 2001 to ARS120.1 million ($1=ARS3.10),
or ARS1.1 pesos per American Depositary Receipt, against the
ARS129.8 million, or ARS1.65 pesos per ADR, in net income posted
during all of 2000.

In the fourth quarter, Galicia lost ARS12.8 million, or 12
centavos per ADR. In the final three months of 2001, Galicia
earned 46 centavos per ADR, the group said.

Galicia, Argentina's largest private commercial banking and
investment company, is still waiting for official Central Bank
approval for a bailout plan for Banco Galicia.

The subsidiary, the group's main earner, is suffering from a
grave liquidity crunch due to Argentina's long financial crisis
after a massive exodus of deposits that has threatened the
banking system wholesale.

According to Galicia sources, the struggling bank has proposed a
new rescue plan to the Central Bank centered on capital
injections and debt forgiveness from local and foreign banks in
return for shares. The Central Bank has said it will soon
announce the details of the finalized rescue plan.

"In 2001 not only did (Banco Galicia) suffer the effects arising
from the financial system's liquidity crisis but it also suffered
the impacts of continuous semi-compulsory measures adopted by the
government to finance its imbalances," the group said in a

After Galicia's bids for the government or a single foreign
partner to take it over failed, sources said unspecified foreign
banks operating in Argentina would provide a capital injection of
ARS1 billion ($320 million) for an as yet undefined amount of
Galicia shares.

The ARS1 billion for Galicia would be split between fresh capital
and debt forgiveness, while an additional ARS500 million (US$160
million) would be provided by local banks in return for part of
Galicia's loan portfolio, the source said.


Tte. Gral Juan D. Peron 407
1038 Buenos Aires, Argentina
Phone: +54-11-6329-0000
Fax: +54-11-6329-6100
Home Page:
Eduardo J. Escasany,  Chairman and Chief Executive Officer
Sergio Grinenco, Chief Financial Officer

Corporate Communications
Phone: (54 11) 6329 6439
Fax:(54 11) 6329 6000 ext.: 2041

Representative Office:
Buenos Aires
Reconquista 144, piso 17
(1003) Buenos Aires, Argentina
Phone: (54-11) 4343-5200/5303/5162
Fax: (54-11) 4343-6576

New York Branch
300 Park Avenue, 20th Floor
New York, NY 10022
Phone: (1-212) 906-3700
Fax: (1-212) 906-3777

Teniente General Juan D. Perón 456, Piso 3
1038 Buenos Aires, Argentina
Phone: (54 11) 4343 7528 / 9475
Home Page:
Eduardo J. Escasany,  Chairman and CEO
Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires

ENERSIS: Fitch Ratings Downgrades Enersis to 'BBB+'
Fitch Ratings has downgraded the local and foreign currency
ratings of Enersis S.A. (Enersis) to 'BBB+' from 'A-'. The local
and foreign currency ratings of Endesa-Chile have also been
downgraded to 'BBB+' from 'A-'. Enersis owns 60% of Endesa-Chile.
Both have been removed from Rating Watch Negative and assigned a
Stable Rating Outlook.

The rating action on Enersis reflects pressured financial
flexibility, a condition exacerbated by the foreseeable reduction
of consolidated EBITDA and cash flow stemming from the crisis in
Argentina. The rating pressure also incorporates the weaker
sovereign ratings of Colombia, Peru, and Brazil. Given current
conditions in Argentina, Fitch has precluded any dividends out of
Argentina in the near term. The lower consolidated EBITDA and
expected elimination of dividends from Argentine subsidiaries
adversely affects Enersis' ability to meet its previously
estimated targets for interest coverage in the near- to medium-
term, and recently reported coverage levels are considered low
for the 'A-' rating category. Still, excluding associated
Argentine EBITDA, coverage ratios are approximately 2.4 times
(x), illustrating the inherent strengths of Enersis' other
operating companies.

During 2002 the company may be able to offset the impact of
Argentine with improvements in other investments, early receipt
of cash from Argentine investments, a reduction in capital
expenditures, the sale of noncore assets, and recovery of
distribution business in Brazil, due to increased tariffs and an
end to rationing. Difficulties by Enersis in attaining its new
financial objectives, including a trend in EBITDA-to-interest
toward in excess of 3.0x by 2003, may imply a further review of
Enersis' credit ratings.

Enersis' investments in Argentina have been acutely affected by
recent events in the country, most notably the devaluation of the
peso, and 'pesofication' and freezing of regulated tariffs. Under
current conditions, material tariff increases to offset the costs
of devaluation are unlikely, which will pressure credit quality
of Enersis' 65%-owned Empresa Distribuidora Sur S.A. (Edesur).
The Enersis Group, however, continues its talks with the
Argentinean Government to find a solution in the context of
having tariffs properly commensurated with the investments made
and concession contracts. On a consolidated basis, Enersis will
continue to include the financial results from Edesur, while
Fitch believes actual cash flow sent to Chile will be materially

Argentina currently accounts for 21% of Enersis' consolidated
EBITDA, with Edesur accounting for approximately $250 million
(19%). While Edesur is a very strong electricity distribution
company with EBITDA-to-interest of 15.0x in 2001, the situation
in Argentina has materially pressured credit quality for even the
strongest players. In 2002, Edesur is expected to contribute 12%,
with total Argentina of 15%, to consolidated operating results,
yet cash received from the country will be much less reflecting
lower net earnings and likely restrictions on currency transfers
for dividends.

Edesur, as well as other affected public service companies, are
in the process of renegotiating their concession agreements to
provide some sort of compensation (i.e., tariff adjustment) for
the government's actions. The result and timing of the
negotiations is uncertain. Longer term, EBITDA contribution will
be affected due to lack of growth and reflecting the extreme
difficulty of obtaining tariff increases in the current political
and economic environment in Argentina.

The company believes that the problems in Argentina can be
partially offset by improvements in Brazil and Colombia, which
combined may represent two-thirds of foreign cash flow for 2002.
While cash inflows from these two countries appears likely,
approximately 40% is a one-time capital reduction, leaving future
receipts to be based on operating performance, which should
improve from 2001. EBITDA and cash flow contribution from Brazil
should be up reflecting an end to rationing effective March 1 and
recovery of demand. According to public information, in Colombia,
the recalculation of the discount rate used to determine tariffs
to 16% from 9% should result in higher operating company revenues
and earnings. Operations in Chile and Peru should benefit from
relatively stable prices and continued demand growth.

Positively, Enersis' Chilean operations are performing relatively
well and contribute the majority of consolidated EBITDA,
currently 42%, and are likely to increase to 48% as demand growth
continues and Argentine contribution declines. Enersis is able to
service its Chilean debt without cash flow from its foreign
subsidiaries. Dividend cash flow from outside Chile provides
diversification benefits that add strength to the company's
consolidated credit profile and represents a source of cash to
reduce consolidated debt levels. However, lower sovereign ratings
in Colombia, Peru, and Brazil and the crisis in Argentina
increase the risk level of cash flow from investments in these
countries and temper the diversification gains.

The company reported consolidated EBITDA-to-interest of 2.7x for
both year-end 2001 and first quarter 2002. For the full year
2002, consolidated EBITDA-to-interest should be similar to the
results reported in 2001 and first quarter of 2002. Although
there may be a reduction in consolidated operating income, the
company has also been reducing interest expense by refinancing
debt and shortening average maturities. Enersis' credit
fundamentals are expected to be supported over the intermediate
to long term from implementation of Project Genesis, continued
overall growth in electricity demand throughout Latin America and
debt reductions, although realization of previously identified
targets may be delayed due to expected lower future cash flow
from Argentina.

Both Enersis and Endesa-Chile benefit from the ownership of
Endesa-Spain (Fitch rated 'A+'). Future equity increases at both
Enersis and Endesa-Chile will depend on additional investment
from Endesa-Spain to maintain its level of ownership in the South
American companies. Eventual conversion of approximately US$1.4
billion in subordinated debt from Endesa-Spain is expected to be
a primary source of additional equity for Enersis going forward,
but without the cash flow benefit. During 2001, this loan was
extended to May 2003 from May 2002. The company pays interest on
the loan every six months (included in coverage ratios), if cash
is available, and is expected to extend the loan each year to
maintain its long-term status.

Enersis is the largest private electricity distribution group in
Latin America. The company has varying ownership interests in
electric distribution companies in Argentina, Brazil, Chile,
Colombia, and Peru; electric generating companies in Argentina,
Brazil, Chile, Colombia, and Peru; and electric utility-related
service companies. Enersis is 65%-owned by Endesa-Spain.

Endesa-Chile is the largest electricity generation company in
Chile and owns and operates approximately 48% of the country's
total generating capacity. Endesa-Spain is Spain's largest
electrical utility, which holds existing energy investments in
South America. All three companies have direct and indirect
stakes in companies located in Chile, Argentina, Colombia,
Brazil, and Peru.

          Jason T. Todd
          Phone: 312/368-3217 (Chicago)

          Daniel R. Kastholm CFA
          Phone: 312/368-2070 (Chicago)

          Carlos Diez
          Phone: +011 562 206-7171 (Santiago)

          James Jockle
          Phone: 212/908-0547 (Media, New York)

          ENERSIS S.A.
          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

IMAGEN SATELITAL: S&P Cuts Ratings to 'D' After Missing Payment
On May 2, 2002, Standard & Poor's lowered its ratings on
Argentina-based cable programming and distribution company Imagen
Satelital S.A. to 'D' from 'CC' following the company's failure
to make a US$4.4 million interest coupon payment on its US$80
million notes due May 1, 2002.

Imagen's high dollar debt burden, too onerous after the
devaluation of the Argentine peso, and the deterioration of cable
industry fundamentals due to the long-lasting recession in
Argentina, are the main drivers for this default. The company has
hired Banc of America LLC as advisor to evaluate alternatives to
restructure the company's debt (about US$85 million as of
December 2001), including the possibility of a bond swap. In the
meantime, the company expects to continue operating and complying
with commercial obligations.

Imagen is a subsidiary of Claxson Interactive Group Inc., a
multimedia provider of branded entertainment content in Spanish
and Portuguese. The company offers 12 channels of cable
programming, seven of which it owns and five which it represents.

With sales of US$60 million per year, Imagen is the leading pay-
television supplier in Argentina. However, the large selection of
cable channels available and the fact that Imagen channels are
included as part of the standard basic cable service, decrease
the company's bargaining power. A potential substitution of
Imagen-supplied programming, coupled with the concentrated buying
power of the two top MSOs (which represent more than 50% of the
cable-TV market in Argentina), and a decreasing cable subscriber
base will continue to exert significant pricing pressures on
Imagen and other program providers. Nevertheless, Imagen's
association with the Cisneros Group (ultimate owner of Claxson)
may better position the company to obtain programming at more
advantageous prices.

The devaluation of the Argentine peso in early 2002 (to current
levels of more than ArP3 to US$1 from ArP1 to US$1 at the end of
2001) will significantly affect Imagen's financial profile as the
company needs to cover dollar-denominated costs with a mostly
peso-denominated revenue stream. Dollar costs include programming
and satellite (25% of total costs), capital expenditures, and
interest payments of about US$9 million per year. Although
revenues in dollars from other Latin American countries -which
represented about 25% of total sales- and potential exhibition
rights cost renegotiations, may partially compensate these
negative effects, Standard & Poor's expects Imagen's EBITDA
margins -of 32.2% in 2001 (after exhibition rights)- to continue
deteriorating and EBITDA interest coverage (1.9x in 2001) to drop
to less than half in 2002.

Weak economic conditions coupled with the existing monetary,
political uncertainties challenge Imagen's ability to improve its
financial measures and debt servicing ability.

Rating list

Local and foreign currency corporate credit rating D

Senior unsecured debt D

Analyst: Ivana Recalde, Buenos Aires (54) 114-891-2127; Marta
Castelli, Buenos Aires (54) 114-891-2128

          Investors: Sebastian Reynal, +011-54-11-4339-3713
          Press: Alfredo Richard, +1-305-894-3588

LITORAL CITRUS: Calls in Receives With ARS23.2 Mln in Debts
With debts amounting to ARS23.2 million, Argentine supplier of
concentrated fruit juice Litoral Citrus had to call in the

According to a report by El Cronista, the Company, which supplies
concentrated fruit juice to Coca Cola, Pepsi and Penaflor, had
already sold in December half of what it sold in August.

Litoral Citrus, however, predicts that due to the devaluation of
the Peso, its exports will grow from 25 percent to 50 percent of
its turnover of US$32 million in 2001.

The firm already exports to Europe and Latin America, except

Litoral Citrus has 6 plants in Argentina.

          Av Ing Huergo 1475
          (1107) Capital Federal
          Phone: (011) 4307-1347
          Fax: (011) 4307-1348

TECPETROL: S&P Puts Rating on CreditWatch Negative
Concern about Tecpetrol's ability to refinance its debts led
credit ratings agency to put the Company's 'raA+' Argentina-scale
rating on creditwatch negative earlier last week.

Tecpetrol has secured a one-month extension on the deadline to
pay US$20-million capital of the outstanding US$60 million of a
US$100-million debentures issue made in 1998.

Tecpetrol is working on a new debentures issue, guaranteed by
exports, to cover financial debts, and if this is finalized in
time to meet the existing deadline it would substantially improve
the Company's financial profile, S&P said.

Economic conditions in the country however have led to serious
doubts as to whether the new issue can be finalized.

According to S&P analyst Pablo Luterau, the negative creditwatch
will be maintained until details are in place. Tecpetrol is at
present meeting all financial obligations, Luterau added.

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


FOSTER WHEELER: Announces First-Quarter Financial Results
Hamilton, Bermuda-based Foster Wheeler Ltd. reported a net loss
for the first quarter of $24.6 million, or $0.60 per share, on
$806.0 million in revenues.

The results were impacted by a loss of $19.0 million triggered by
a preliminary agreement to sell a waste-to-energy facility in the

The company also incurred increased corporate expenses for
professional services and waiver fees for the ongoing
negotiations with the company's bank lending group and for its
intervention program consultants.

These results compare with net earnings of $8.1 million, or $0.20
per share, and revenues of $698.2 million in the first quarter of
2001. New orders booked were $792.8 million versus $950.5 million
in the first quarter of last year, and backlog was $6.0 billion
essentially unchanged from the level of $6.0 billion at the close
of fiscal 2001.

At the close of the first quarter 2002, the company's cash and
cash equivalents position increased to $423.2 million compared to
$224.0 million at the end of the fourth quarter of 2001. Also,
net debt decreased 16 percent from the end of the fourth quarter
to $681.5 million from $815.0 million at the end of fiscal 2001,
the lowest level it has been in five years.

"Our performance during the first quarter was mixed," said
Raymond J. Milchovich, Foster Wheeler's chairman, president and
CEO. "The primary component of the loss for the first quarter is
a write-down associated with the sale of one of our waste-to-
energy plants. This action is part of an ongoing program to
monetize non-core assets, reduce debt and strengthen our balance
sheet and improve the company's future ability to earn.

"We are also working diligently to complete negotiations with our
various lenders, which were interrupted following the unexpected
additional charges we had to take in the fourth quarter of 2001.
Although I was very disappointed with the performance problems
leading to these charges, they were isolated in one U.S. business
unit and are not pervasive throughout our operations. In fact,
operations in our U.K., Italian and Finnish units are very strong
and are showing increasing growth. Therefore, I remain highly
confident that we will obtain favorable credit agreements.

"In addition, our performance improvement initiatives are showing
positive results. For example, we now measure our performance
each week on several critical parameters of our top 22 projects
for 2002. We then execute action plans to correct any problems or
take advantage of opportunities on each project. We are
installing a new operating system to tighten control of accounts
receivable on our entire portfolio of active projects in North
America. And, we now have more than 10,000 vendors worldwide
linked to our e-procurement network, enabling us to leverage our
buying power and significantly reduce our administrative costs.

"The excellent reputation Foster Wheeler enjoys in the
marketplace, along with the huge performance improvement
potential that we have identified, make me highly confident that
we will rapidly work through our near-term issues and put the
company on a much stronger financial footing," he said.

Engineering and Construction Group Results

Foster Wheeler's domestic Engineering and Construction Group
experienced delays in some project awards during the quarter.

New orders booked were $383.3 million, compared to $577.0 million
in the first quarter of 2001, and backlog was $4.3 billion, down
from $4.5 billion at year-end 2001. The Group reported revenues
of $421.1 million, compared to $473.6 million in the first
quarter of 2001. Earnings before taxes for the Group were $20.5
million compared to $18.8 million in the year-ago quarter.

Energy Group Results

In the first quarter, the Group saw the beginning of a softening
in the power markets in the United States, although this was
counteracted by an increase in biomass projects in Europe and the
award of a large domestic power project.

The Group's bookings increased to $414.0 million, compared to
$378.9 million in the first quarter of 2001, and its backlog was
up slightly to $1.7 billion from $1.5 billion for the 2001 year-
end level. Revenues were $387.4 million, compared to $238.6
million for the same quarter of 2001. Earnings before taxes for
the Group were $17.2 million compared to $9.7 million in the
previous year's first quarter, excluding the charge for the
potential sale of the waste-to-energy facility.

To see financial statements:

CONTACT:          Foster Wheeler Ltd.
                  Media Contact: Alastair Davie, 908/730-4444
                  Shareholder Contact: John Doyle, 908/730-4270
                  Other Inquiries: 908/730-4000

FOSTER WHEELER: Bondholders Adopt Wait-And-See Attitude
The management of Foster Wheeler is continuing its discussions
with the company's lenders and various other financial
institutions regarding a new long-term credit facility and a
replacement for its lease financing and receivables sale

According to company chairman, president and chief executive
Raymond J. Milchovich, a delay in negotiations was the
engineering and construction-services company's fault because it
had focused its attention on a poorly performing U.S. unit.

According to analysts, bondholders for now have adopted a wait-
and-see attitude as the Hamilton, Bermuda-based company's
negotiations with its bank creditors have been extended through
May 30.

The company's bonds are quoted by traders at prices in the mid-
40s to mid-50s, distressed levels that indicate a "perception
that a Chapter 11 bankruptcy filing may be around the corner,"
said one analyst at a New York -based investment firm.

Joel Levington, an analyst at Standard & Poor's Corp., warned
that if the company cannot come to terms with its banks, its
creditors could accelerate their claims, resulting in the
potential for default.

The bank facility, which is $270 million, is unsecured and the
banks wouldn't want to stand in line with everyone else in a
bankruptcy proceeding, he added.

There is a "strong incentive for the banks to work with the
company," he said, adding that, if a deal is reached, it "should
alleviate the company's short-term liquidity needs."

Foster Wheeler's debt is rated B3 by Moody's Investors Service
and is under review for possible further downgrade. The debt is
rated single-B-plus by Standard & Poor's Corp. and is on a
negative watch.

The company has outstanding US$200 million of senior unsecured
notes that mature in 2005 and US$210 million of convertible
subordinated notes that mature in 2007.

FOSTER WHEELER: Company Profile
NAME: Foster Wheeler Ltd.
      Perryville Corporate Park
      Clinton, NJ 08809-4000    (Map)
      New York City Guide and Travel Services
PHONE: 908-730-4000

FAX: 908-730-5315



     Raymond Milchovich, Chairman, President and CEO
     Gilles Renaud, Chief Financial Officer, Sr. Vice President
     Thomas O'Brien, Sr. VP, Corp. Affairs and Gen. Counsel
     James Schessler, Sr. Vice President, Director
     Robert Iseman, Vice President and Treasurer

     John A. Doyle, Jr.
     Assistant Secretary
     Phone: 908-730-4270
     Fax: 908-730-5300

TYPE OF BUSINESS: Foster Wheeler provides design, engineering,
construction, project development and management, plant
operation, and environmental services to industries ranging from
pharmaceuticals to petrochemicals to power generation. It has a
host of subsidiaries organized into two business groups:
Engineering and Construction (designs and builds facilities
including petroleum refineries, food and chemical processing
plants, and power generation services); and Energy Equipment
(designs, manufactures, and erects steam generators and specialty
products for central power stations, industrial power plants, and
cogeneration facilities).

SIC: Materials & Construction - Heavy Construction

EMPLOYEES: 2001 Employees: 10,394

     Mellon Investor Services, LLC
     Shareholder Relations Department
     P.O Box 3315
     South Hackensack, NJ 07606-1915
     Phone: 800-851-9677


COTEL: Looks to Breakeven in Two Years' Time
Although it is not working at its full capacity due to ongoing strikes,
which 500 of its 600 employees have joined, La Paz-based
telecom cooperative Cotel is expected to breakeven in the next
two years.

This was revealed by Cotel CEO Jurgen Kurz, who is also a
consultant at Detecon, the German telecoms consultancy that's
currently administering Cotel.

Kurz, however, declined to offer revenue projections or provide a
specific breakeven date because of political problems that have
complicated Detecon's management of the company.

Detecon, which has had to deal with the strikes, has also had
trouble with Cotel's oversight council, which has challenged the
German company's contract to administrate the cooperative, he

"They ran the company for the last 10-years and accumulated US$60
million in losses, and did nothing about it," Kurz said.

Meanwhile, Cotel is also renegotiating its strategic agreement
with Bolivian long distance and value added services provider AES

Under the terms of the contract signed in early 2001, Cotel would
acquire a 15-percent stake in AES Communications worth US$21
million to be paid for with the interconnection fees Cotel
charges its partner.

Kurz said the talks are aimed at allowing Cotel to directly
provide national and international long distance service, cable
TV, data transmission and Internet services. At the moment the
contract terms are unfair to Cotel because they prevent it from
providing these services, Kurz said.

Cotel historically has provided only local telephony and has a
total installed capacity of nearly 240,000 lines, of which only
160,000 are in use. Kurz said the company does not have any major
infrastructure investment plans for the short-term given the glut
of existing lines.

The company aims to up the number of lines in service by offering
existing line holders a second line at a discount rate, Kurz

The Bolivian government awarded Detecon - a subsidiary of
Deustche Telekom - a contract to manage Cotel in May 2001 after
failing to find a strategic investor for the company earlier that

The government intervened Cotel in August 2000 after labor
disputes jeopardized service. Cotel is Bolivia's largest fixed
line operator.


ELETROPAULO: Cancels Planned Bond Sale Citing Political Unease
Eletropaulo Metropolitana SA, Brazil's biggest power distributor,
temporarily scrapped a plan to sell bonds on concern over
upcoming presidential elections.

Eletropaulo, which planned to sell up to US$150 million in two-
or three-year bonds, postponed the sale because of "uncertainty
about the elections," said Alfred Dangoor, director of global
debt in Sao Paulo at Dresdner Kleinwort Wasserstein, which is
managing the sale.

The rise of Luiz Inacio Lula de Silva, presidential candidate of
the opposition Workers' Party, as leader in opinion polls ahead
of October's presidential elections has unsettled investors,
causing Brazil's 8 percent bond maturing in 2014 to decline in 10
of the last 11 sessions.

Electricity distributor Eletropaulo, which is controlled by US-
based AES Corp., has debts totaling BRL4.5 billion.

The company serves about 4.5 million people in heavily
industrialized Sao Paulo state.

           Luiz D. Travesso, Chairman and President
           Orestes GonOalves Jr., VP Finance/Investor Relations

           THEIR ADDRESS:
           Avenida Alfredo Egidio de Souza Aranha 100-B,
           13 andar 04726-270 San Paulo
           Phone: +55-11-548-9461, +55 11 5696 3595
           Fax: +55-11-546-1933

GLOBO CABO: Sees 6.7% Drop in Number of Subscribers During 1Q02
Struggling cable television company Globo Cabo SA saw its
subscriber base drop 6.7 percent in the first quarter of the year
to 1.422 million clients, down  from 1.524 million in the same period
a year ago.

According to a Dow Jones report, the Brazilian firm's paying
users, which exclude connected customers that have temporarily
had their service cut off for unpaid bills, totaled 1.399
million users, a drop of 6.1 percent from a year ago and 2.1
percent from the fourth quarter.

The company's churn rate rose to 20.9 percent in the latest
quarter from 16.5 percent a year ago.

Globo Cabo is planning a BRR1.0 billion share offering as part of
a restructuring plan.

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

          Marcio Minoru, +5511-5186-2811,


DISPUTADA: Exxon Reaches Agreement to Sell Mine to Anglo American
Exxon Mobil Corporation announced Thursday it has reached
agreement to sell its affiliated companies that hold all of the
interests in Compania Minera Disputada de las Condes Limitada
("Disputada"), a Chile copper mining business, to Anglo American

The sale price is US$1.3 billion, plus future contingent payments
in the event of higher future copper prices. The sale is subject
to the completion of outstanding due diligence, to the completion
of a definitive sale and purchase agreement and required
regulatory approvals.

The principal assets of Disputada include Los Bronces copper
mine, El Soldado copper mine and the Chagres smelter, all located
in Chile's central region.

The agreement follows the August 2001 announcement that
ExxonMobil would provide information to companies that had
expressed interest in acquiring Disputada. Cutfield Freeman & Co.
Ltd advised ExxonMobil and is assisting in the sale process.

The companies expect that a definitive sale and purchase
agreement will be signed within a month and the transaction
completed by June 30, 2002.

CONTACT:  ExxonMobil (U.S.)
          Cynthia Langlands, 972/444-1107

          Disputada (Chile)
          Guillermo Garcia, 562/230-6488

MANQUEHUE NET: 1Q Loss up 233% on Losses From Other Related Firms
Net loss at Chilean competitive local exchange carrier Manquehue
Net blew up to CLP2.15 billion (US$3.3 million) in the first
quarter of 2002 against last year's loss of CLP922 million.

The 233-percent increase in the company's net loss was due to
losses brought about by investments in related companies, which
totaled CLP1.27 billion for the quarter, compared to none for

Manquehue said operating income for the quarter was CLP6.7
billion, moderately higher than the CLP6.4 billion posted in
1Q01. At the same time, costs increased slightly from CLP7.12
billion in 1Q01 to CLP7.56 billion in the quarter just ended.

The company's executives, earlier this week, indicated they
expected significant growth of broadband clients in 2002.

"[The broadband business] went well for us last year and [this
year] we expect to double our ADSL clients, which stand at 5,000
to date," Manquehue Internet and long distance manager Juan Luis
Bulnes said.

Bulnes added that the company's long distance business had good
4Q01 results due to the introduction of new services such as
prepaid cards and collect calling.

The company expects to end 2002 with long distance revenues of
CLP2.5 billion, Bulnes said.


AVIANCA: Brings More Losses to Parent
Losses at Valores Bavaria SA, Colombia's largest diversified
holding group, widened to COP40.4 billion (US$17.7 million), or
COP45.8 a share, in the first-quarter of 2002, from COP12.9
billion, or COP37.1 a share in the same year-ago period.

Valores attributed the poor results to the increasing losses at
airline Aerovias Nacionales de Colombia SA (Avianca).

Although its losses from Avianca fell to COP32.9 billion from
COP52.2 billion a year earlier, Valores, in a statement, revealed
that Avianca also had COP42.4 billion in losses above that amount
as the result of a write down of its capital.

"Avianca will continue generating losses during the year 2002 due
to cost of fuel and insurance," the statement said.

Valbavaria was unchanged at 185 on the Colombian Stock Exchange.
The shares have declined 41 percent so far this year.

Avianca, which is one of the most high-profile firms in Valores'
portfolio, secured a crucial financial lifeline late last year
when the government approved its proposed merger with Aces. After
the merger is completed, Avianca-Aces will have a fleet of 56
aircraft and combined assets of US$700 million.

          No 7A-47 Calle 94
          Santafe de Bogota DC
          Phone: +57 1 600 2100
          Home Page:
          Javier Aguirre Nogues, Chairman
          Leonor Montoya Alvarez, President
          Victor Alberto Machado Perez, Secretary

          P.O. Box 151310
          Av. el Dorado no. 93-30
          Bogota, Colombia
          Phone: (1) 413 9511
                 (1) 295 8977

          Atahualpa Ave. 955 and Republica,
          Edificio Digicom, Office #204
          Phone: 253123
          Fax: 253131

SEVEN SEAS: Provides Update on Guaduas Oil Field Production
Seven Seas Petroleum Inc. announced that Guaduas Oil Field gross
production averaged approximately 8,200 barrels per day (3,800
net to Seven Seas) during April 2002. Daily gross production is
currently around 7,500 barrels per day (3,500 net). Production
continues to fluctuate and to be curtailed as a result of high
gas-oil ratios in certain wells.

Seven Seas believes that gross production from existing wells
will start to increase when gas injection facilities are
completed, now anticipated to be later this month. The later
completion date is the result of delays in the deliveries of the
compressors. The company is studying whether some of the
electronic submersible pumps in existing wells must be
reconfigured before gross production rates from existing wells
can reach the projected pre- curtailment rates. These results may
not be known for several months. The  company does not believe
that the current gas-oil ratio problems will negatively affect
proved reserves. Notwithstanding the curtailment, Seven Seas
believes that at present oil prices revenues from current levels
of production will continue to exceed operating expenses, general
and administrative costs and debt interest payments.

The company expects to have results from the sixth Guaduas Oil
Field development well, the Tres Pasos 7-W, within the next two

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America. The company's primary emphasis is on the development and
production of the Guaduas Oil Field and exploration of the
Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.


GRUPO SIMEC: Announces Final Results for Year Ending Dec 31, 2001
Grupo Simec, S.A. de C.V. announced Thursday its final audited
results of operations for the year ending December 31, 2001. Net
sales decreased 17% to Ps. 1,903 million in 2001 compared to Ps.
2,300 million in 2000.

In 2001, Simec recorded net income of Ps. 229 million versus net
loss of Ps. 38 million for 2000, primarily as a result of lower direct
cost of sales, a smaller reserve for income tax and employee profit
sharing, and the recording of financial income and other income
versus financial expenses and other expenses.

Simec sold 560,726 metric tons of basic steel products during
2001 as compared to 619,598 metric tons in 2000. Exports of basic
steel products decreased to 48,385 metric tons in 2001 versus
65,942 metric tons in 2000. Prices of products sold in 2001
decreased 9% in real terms versus 2000.

Simec's direct cost of sales was Ps. 1,278 million in 2001, or
67% of net sales, versus Ps. 1,519 million, or 66% of net sales
for 2000. Indirect manufacturing, selling, general and
administrative expenses (including depreciation and amortization)
decreased 13% to Ps. 446 million during 2001 from Ps. 510 million
in 2000.

Simec's operating income decreased 34% to Ps. 179 million during
in 2001 from Ps. 271 million in 2000. As a percentage of net
sales, operating income was 9% in 2001 and 12% in 2000.

Simec recorded financial income of Ps. 5 million in 2001 compared
to financial expense of Ps. 108 million in 2000 due principally
to (i) net interest expense of Ps. 157 million in 2001 compared
to net interest expense of Ps. 321 million in 2000, reflecting
lower debt levels in 2001 as described below, (ii) an exchange
gain of Ps. 94 million in 2001 compared to an exchange loss of
Ps. 16 million in 2000 resulting from an increase of 4.5% in the
value of the peso versus the dollar in 2001 compared to a
decrease of 0.6% in the value of the peso versus the dollar in
2000 and (iii) a gain from monetary position of Ps. 68 million in
2001 compared to a gain from monetary position of Ps. 229 million
in 2000, reflecting the domestic inflation rate of 4.4% in 2001
compared to the domestic inflation rate of 9% in 2000.

Simec recorded a reserve for income tax and employee profit
sharing of Ps. 16 million in 2001 versus a reserve of Ps. 126
million in 2000. Simec also recorded other income in 2001 of Ps.
61 million versus other expense of Ps. 61 million in 2000.

On March 29, 2001, Grupo Sidek, S.A. de C.V. consummated the sale
of its entire approximate 62% controlling interest in Simec to
Industrias CH, S.A. de C.V. ("ICH"). ICH also acquired additional
common shares of certain of Simec's bank creditors that, in
connection with the transaction, converted approximately U.S.
$95.4 million of bank debt (U.S. $90.2 million of principal and
U.S. $5.2 million of interest) into common shares of Simec at a
conversion price equivalent to U.S. $3.87 per American Depositary
Share. In the third quarter of 2001, ICH converted approximately
$69.5 million of loans to Simec plus accrued interest thereon
(which loans were made principally to fund the redemption of
Simec debt described below) into common shares of Simec at a
conversion price equivalent to U.S. $1.60 per American Depositary

At December 31, 2001, Simec's total consolidated debt consisted
of approximately $103 million of U.S. dollar-denominated debt,
while at December 31, 2000, Simec had outstanding $274 million of
dollar-denominated debt; the decrease in total debt reflects the
conversion of approximately U.S. $90.2 million of bank debt (plus
U.S. $5.2 million of accrued interest thereon) into common shares
of Simec, scheduled amortization payments in May 2001 on Simec's
bank debt and 10 1/2% Third Priority Notes due November 15, 2001
(the "CSG Notes") of Simec's wholly-owned subsidiary, Compania
Siderurgica de Guadalajara, S.A. de C.V. ("CSG"), the redemption
at par plus accrued interest of the entire outstanding amount of
$52.3 million of CSG Notes and the conversion to equity, as
described above, of a substantial portion of the debt owed to ICH
which was incurred to finance the redemption of the CSG Notes, as
well as the repayment of $16 million of bank debt in the third
quarter of 2001 and the repayment of $11 million of bank debt in
the fourth quarter of 2001. Substantially all of Simec's
remaining consolidated debt (other than debt owed to ICH) matures
in 2009 and amortizes in equal semi- annual installments.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at December 31, 2001.

Simec is a mini-mill steel producer in Mexico and manufactures a
broad range of non-flat structural steel products.

LASON INC.: Announces Approval of Its Reorganization Plan
Lason, Inc. announced Thursday that the U.S. Bankruptcy Court in
the District of Delaware (the "Court") has approved its Plan of
Reorganization (the "Plan"). The Plan was confirmed at a
Confirmation Hearing on April 30, 2002, less than five months
after the Company filed for Chapter 11 protection. Under the
Company's Plan, its senior secured lenders have agreed to write-
off in excess of $170 million in the company's debt, the
company's current outstanding common stock will be canceled, and
new shares in the Reorganized Lason will be issued. Approximately
87.5% of the new shares will be issued to the senior secured
lenders and unsecured creditors and 12.5% of the new shares will
be issued to Lason management, as part of a new incentive plan.

"This is a bright new day for Lason; the past can finally be put
behind us. This solidifies our balance sheet and makes Lason a
viable entity. The swift approval of our Plan would not have been
possible without the loyalty of our customers and vendors,
phenomenal dedication and resilience of our employees and support
of our senior lenders. We have all worked extremely hard through
this process and are tremendously proud of what we have
accomplished in such a short period of time," stated Ronald D.
Risher, president and chief executive officer.

The company will now focus its efforts and resources on
continuing to provide its customers with best-in-class services
and products and on growing its Imaging Services, Products, Data
Capture and Web-Based Document Repository businesses. "I want to
personally thank those customers and vendors that have worked
with us through this difficult time. Their continued support
coupled with the courts approval of the reorganization plan will
position Lason for future growth. Lason is one team, with one
clear goal ... to provide its customers with superior services
and products that will positively impact our customers'
businesses," stated Mr. Risher.

The company expects its Plan to go in effect on or about June 30,
2002, as it works through administrative matters related to the

About the Company

Lason is headquartered in Troy, Michigan. Lason is a leading
provider of integrated information management services,
transforming data into effective business communication, through
capturing, transforming and activating critical documents. Lason
has operations in the United States, Canada, Mexico, India and
the Caribbean. The Company currently has over 70 multi-functional
business centers and operates over 60 facility management sites
located on customers' premises. Lason is available on the World
Wide Web at

VITRO: Deposits Funds for Payment of Yankee Bond Principal
Vitro, S.A. de C.V. announced Thursday that it deposited the
funds necessary for the payment in full of the principal amount
on the Vicap, S.A. de C.V. Guaranteed Senior Notes of its Yankee
Bond issue due on May 15, 2002 for US$175 million.

Funds for this payment consisted of cash generated from
operations, asset sales from the ongoing divestiture program and
new credit facilities mainly from Banco Inbursa, S.A. and Credit
Suisse First Boston.

Vitro, S.A. de C.V., through its subsidiary companies, is a major
participant in four distinct businesses: flat glass, glass
containers, glassware and household products. Vitro's
subsidiaries serve multiple product markets, including
construction and automotive glass, wine, liquor, cosmetics,
pharmaceutical, food and beverage glass containers, fiberglass,
plastic and aluminum containers, glassware for commercial,
industrial and consumer uses, and household appliances. Founded
in 1909, Monterrey, Mexico-based Vitro has joint ventures with 9
major world-class manufacturers that provide its subsidiaries
with access to international markets, distribution channels and
state-of-the-art technology. Vitro's subsidiaries do business
throughout the Americas and Europe, with facilities and
distribution centers in seven countries, and export products to
more than 70 countries. Vitro's website can be found at:

CONTACT:  Vitro, S. A. de C.V.
          Albert Chico Smith, 011 (52) 81 8863-1335

          Financial Community
          Beatriz Martinez, 011 (52) 81 8863-1258

          Breakstone & Ruth Int.
          U.S. Contacts
          Luca Biondolillo/Susan Borinelli, 646/536-7012 / 7018


SIVENSA: Posts Better 2Q Results on Lower Losses at IBH Unit
Siderurgica Venezolana Sivensa, Venezuela's largest publicly
traded steel company, said second- quarter losses narrowed on
lower losses in its hot iron briquette unit International Iron
Holding (IBH).

Sivensa posted a loss of US$9.5-million for the second quarter of
its financial year ending March 31, compared to losses of US$25.9
million in the same period of 2001.

Losses from IBH and its Orinoco Iron project decreased 55 percent
to UA$7.78 million from US$17.2 million.

Sivensa's consolidated sales dropped by 29 percent to US$60.7
million in comparison to US$85.4 million in the same period of
the previous year.

The fall in revenues was fundamentally due to weaker sales on the
local market by Sivensa subsidiary Sidetur. Wire sales in
Venezuela by Vicson, another subsidiary, were also down, the
Company said.

Sivensa shares fell Tuesday 2.6 percent to VEB1.85.

Sivensa manufactures semi-finished and finished steel products
for the rolled and construction industry, iron briquettes for the
steel industry and wire for industrial and agribusiness use.

          Henrique Machado Zuloaga, Chairman
          Oscar Augusto Machado, CEO
          Gustavo Machado, CFO
          Av. Venezuela, Edificio Torre America, Piso 11.,
          Urbanizacion Bello Monte.
          Caracas, Venezuela
          Phone: +58-(0)2-707-6145
          Fax: +58-(0)2-707-6335

          Iron and steel of Turbio, S.A.. - Sidetur
          Home Page:
          Mr. Left Nicholas, General Manager
          Phone: (58212) 407,03,00 and 51

          Mr. Carlos Fonseca , Finance & Administration Manager
          Phone:(58212) 407,04,11 and 12

          Torre America, Piso 12
          Av. Venezuela
          Bello Monte
          Caracas, Venezuela
          Phone: (0212) 707.6200 /6145
          Fax. (0212) 762.9938 - 707.6335
          Home Page:
          Armando Rondon,  Corporate Planning Manager
          Phone: (58) (212) 707.62.80 / 707.61.27
          Fax: (58) (212) 707.63.52

          Peggy Medina
          Transfer Agent. Planivensa
          Phone: (58) (212) 707.64.66 / 707.64.68
          Fax: (58) (212) 707.64.56

          Investor Relations. Nueva York
          Geoffrey Bell and Co.
          780 Third Avenue, New York, N.Y.
          Phone: (212) 888.37.00
          Fax: (212) 888.37.07


     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
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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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