TCRLA_Public/020507.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

            Tuesday, May 7, 2002, Vol. 3, Issue 89



AIR PLUS ARGENTINA: Sector Crisis Prompts Temporary Suspension
BANCO GALICIA: Central Bank Authorizes ARS700M Turnaround Plan
GRUPO GALICIA: To Make Good On Bond Interest Payment
IMAGEN SATELITAL: Defaults on $80M, Fitch Drops to 'DD'


MUTUAL RISK: Announces Preliminary Agreement On Restructuring
TYCO INTERNATIONAL: DBRS Drops to BBB (high), Trend Negative


ENRON: Presents Restructuring Plan To Creditors
ENRON: Elektro Decides Against Issuing Dividends
GLOBO CABO: Shares Up On Recapitalization Plan Approval


AES Corp.: Chilean Unit Halts New Loans, Itabo to Sell Soon
MADECO: Global Economic Slump Takes Its Toll on Earnings
VTR GLOBALCOM: Faces Bankruptcy If Banks Refuse Loan Refinance


ALESTRA: S&P Lowers to 'B-'; CreditWatch Negative Continues
ALESTRA: Revenues Up, Net Loss Declines in 1Q02 Results
SAVIA: Year End 2001 Results Show Soft Marktes, Resturcturing


ENRON: Loses Bid On Enel Over Technicality, Court Appeal Follows


BANCO COMERCIAL: Moody's Cuts Foreign Currency Ratings

     - - - - - - - - - -


AIR PLUS ARGENTINA: Sector Crisis Prompts Temporary Suspension
The ongoing crisis in the airline industry led Air Plus
Argentina, a subsidiary of the Marsans group, to temporarily halt
flights during May. The operations affected are its 3 weekly
flights to Porto Seguro city, Brazil, Cancun and Punta Cana, in
Mexico and Tenerife, Spain.

Demand for international air tickets during the first quarter of
this year has experienced a 56-percent slump to a turnover of
US$108 million.

The destinations covered by Air Plus suffered an average drop of
80 percent. Air Plus Argentina turned over US$70 million last
year and employs 140 people in Argentina.

BANCO GALICIA: Central Bank Authorizes ARS700M Turnaround Plan
After pursuing every possibilty for securing fresh capital to
rebuild its reserves since February, Banco de Galicia y Buenos
Aires SA has finally found a solution to its problem.

Dow Jones relates that the bank's parent, Grupo Financiero
Galicia SA, Argentina's largest private commercial banking
company said that the central bank has approved a ARS700-million
refinancing plan for its debt-laden division.

The approval of Galicia's refinancing program by the Central bank
follows several weeks of postponement due to unspecified "legal
issues" and "other details," according to central bank and
company officials.

In a statement, the company revealed that Galicia will get ARS400
million from a group of local banks, credit that is backed by the
company's loan portfolio. An additional ARS300 million will come
from Argentina's Deposit Insurance Fund and the industry's
Banking Liquidity Fiduciary Fund.

According to Daniel Llambias, a bank director and official
spokesman, Galicia previously received ARS100 million in
assistance from the central bank.

Meanwhile, the company also revealed plans to arrange about
US$300 million in fresh financing from foreign banks through the
swap of outstanding Galicia debt to those banks for the Argentine
company's Class B common shares, the company's preferred shares,
convertible subordinated debt and/or subordinated debt.

However, it is still not clear when the final stage of the
refinancing plan will be complete.

"We are convinced that this plan places Banco Galicia under solid
and normal operating conditions, even under a critical situation
as the current one," Llambias said in a statement.


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. Per›n 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

GRUPO GALICIA: To Make Good On Bond Interest Payment
In the midst of a difficult financial crunch, Grupo Financiero
Galicia SA expressed confidence that it will meet its next
interest payment on a bond due in 2003. Galicia investor
relations vice president Jorge Scarinci stated that authorization
from the central bank to send international bondholders the cash
Galicia owes them should come "in the next few days."

Galicia last week reported that the company lost ARS1.1
(US$1=ARS3.10) per American Depositary Receipt in 2001, down from
net income of ARS1.65 per ADR in 2000.

IMAGEN SATELITAL: Defaults on $80M, Fitch Drops to 'DD'
Fitch Ratings has downgraded the foreign currency rating of
Imagen Satelital S.A. (Imagen) to 'DD' from 'C'. The 'DD' rating
indicates the company is in default and that the recovery rate is
expected to be in the range of 50% - 90%. The downgrade affects
approximately US$85.1 million in debt obligations, primarily
consisting of US$80 million of senior unsecured notes, due in
2005. The rating action reflects the company's missed payment of
US$4.4 million due May 1, 2002 on its US$80 million senior
unsecured notes. Its next interest payment is on Nov. 1, 2002.
Imagen has retained Bank of America LLC to assist in the
evaluation of debt restructuring alternatives.

Imagen's default reflects the heightened risks associated with
the Argentine economic environment which include the prolonged
recession, the government default, revocation of convertibility
and the associated currency devaluation and the implementation of
currency controls. Approximately 75% of sales are in Argentina.
Imagen's largest customers are the leading Argentine multiple
system operators (MSOs), Cablevision and Multicanal. Sales to
Cablevision and Multicanal represented 39% of total sales at

Imagen is one of the leading programmers and distributors of pay-
TV channels in Argentina and the rest of the Southern Cone. The
company owns seven channels and has distribution rights for
another five. The 12 channels are provided to more than 1,000
cable system operators and delivered to more than 15 million TV
households in Latin America. Imagen is a wholly owned subsidiary
of the newly formed Claxson. Claxson was formed as a result of
the merger of certain media assets held by Grupo Cisneros, Hicks
Muse Tate and First, and El Sitio in exchange for a 45%, 35% and
20% stake, respectively, in Claxson.

In recent years, Imagen's non-Argentine sales have increased from
13% to 25% of total sales and are expected to moderately increase
over the intermediate term and further reduce revenue
concentration risk. However, the diversification of sales is not
anticipated, in the near-term, to reach a point sufficient to
offset the currency mismatch and heightened sovereign risks.

CONTACT:  Fitch Ratings
          Randy Alvarado, 312/368 3117
          Carolina Iturralde, +011 541 14 327 2444
          James Jockle, 212/908-0547 (Media Relations)


MUTUAL RISK: Announces Preliminary Agreement On Restructuring
Mutual Risk Management Ltd. announced Friday that it has reached
an agreement in principle to restructure its senior debt. The
principal amount of the debt is $235 million, comprised of
approximately $131 million owing under the Company's credit
facility and $104 million owing to holders of the Company's 9
3/8% debentures.

Under the proposed restructuring, the senior debt holders would
exchange their existing debt for preferred stock and warrants to
purchase 15% of the common stock of the Company on a fully
diluted basis as well as debt, preferred stock and 80% of the
common stock of the Company's subsidiary, MRM Services Ltd. (MRM
Services). MRM Services holds the Company's fee-based businesses.

After the proposed restructuring, the Company's remaining
principal assets would be 20% of the common shares of MRM
Services and all of the common stock of its U.S. insurance
companies. These common shares will be subordinate to the debt
and preferred stock of MRM Services and the Company. The value of
the Company's investment in its U.S. insurance companies is
dependent on the outcome of the previously announced
rehabilitation proceedings. The restructuring is proposed to be
effected through a Scheme of Arrangement under Bermuda Law.

MRM Services comprises the following main subsidiaries:

--  MRM Specialty Brokers Ltd.;

--  MRM Global Captive Group Ltd. (including International
Advisory Services Ltd. and Shoreline Mutual Management);

--  The IPC Companies;

--  CRS Services, Inc.;

--  Captive Resources, Inc.; and

--  Mutual Trust Management Ltd.;

The Company is in the process of negotiating the sales of Captive
Resources, Inc. and Mutual Trust Management Ltd. These companies
are not expected to form part of ongoing operations. The various
options available in relation to CRS Services and the IPC
Companies continue to be evaluated.

The new management team of MRM Services will be headed by David
Ezekiel as Chief Executive Officer. Mr. Ezekiel will continue to
serve as President of both MRM Global Captive Group Ltd. and
International Advisory Services Ltd. Paul Scope, CEO of MRM
Specialty Brokers Ltd., and Richard Turner, President of CRS
Services, Inc., will also hold senior positions on the new
management team.

Commenting on the proposed plan, Mr. Ezekiel said "The proposed
restructuring will provide an opportunity for MRM Specialty
Brokers and MRM Global Captive Group to continue their strong
growth and profitability. Both entities will continue to operate
as autonomous and strong units independent of Mutual Risk's U.S.
insurance companies in rehabilitation."

The agreement in principle is not binding on the senior creditors
or Mutual Risk and remains subject to final negotiation,
regulatory approval and the approval of other creditors.

          Robert A. Mulderig, (800) 772-0849 or (441) 295-5688
          MRM Services Ltd.:
          David Ezekiel, Angus H. Ayliffe,
          Fran Tucker, (800) 772-0849 or (441) 295-5688

TYCO INTERNATIONAL: DBRS Drops to BBB (high), Trend Negative
Toronto-based, full-service credit rating agency Dominion Bond
Rating Service, Ltd. (DBRS) is downgrading Tyco International
Ltd. from A (low) to BBB (high) with a Negative trend.

With this action, the Company is removed from "Under Review with
Negative Implications" where it was placed on February 5, 2002.

The rating action reflects the deterioration in the Company's
profitability, which is not expected to reverse in the medium
term, the increase in financial risks and the uncertainty of
achieving the targeted value for the CIT Group in the spin-off.

          Phone: 416-593-5577 ext.2243
          Linda Scott
          Phone:  ext.2245


ENRON: Presents Restructuring Plan To Creditors
Enron Corp. presented Friday a process to its Unsecured
Creditors' Committee to maximize recoveries through the
exploration of a variety of alternatives for moving the company's
core energy assets out from under its Chapter 11 case.

Under the proposal, which will be facilitated through Section 363
of the Bankruptcy Code, the new company would be an energy
infrastructure business focused on the transportation,
distribution, generation and production of natural gas and
electricity primarily in North, Central and South America.

"We believe this process will lead to the maximization of value
of Enron's core energy assets and the mitigation of risk by
removing viable operations out from under Chapter 11," said
Stephen F. Cooper, Enron interim CEO and chief restructuring
officer. "This enables Enron's creditors to realize value from
the company's power and pipeline roots through an expedited
process. However, this is just one of the options that we will
openly explore with our creditors."

Headquartered in Houston, the new company, temporarily called
"OpCo Energy Company," could have 15,000 miles of pipeline
assets, 75,000 miles of distribution assets, 6,700 megawatts of
generation, and 12,000 employees. It is estimated that OpCo could
have $10.8 billion in assets and a projected earnings before
interest, income taxes, depreciation and amortization (EBITDA) in
excess of $1.3 billion in calendar year 2003.

The company hopes to have the Section 363 auction and sale
process completed by the end of 2002.

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

ENRON: Elektro Decides Against Issuing Dividends
Brazilian utility Elektro will not be giving off dividends to its
shareholders from the BRL25.4-million profit made in 2001. The
action is perceived as a conservative move intended to improve
its financial figures, given the bankruptcy of its parent Enron.

Instead, the company will use the money to reduce its accumulated
debt of BRL335.3 million.

Elektro is looking to avoid future difficulties in raising
capital due to its relationship with the failed US company.

          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

GLOBO CABO: Shares Up On Recapitalization Plan Approval
Globo Cabo's preferred shares were up 3.3 percent Friday at
BRL0.31 ($1=BRR2.39) after falling about 12 percent the previous
day on first quarter operational results that showed the
Company's user base fell 6.7 percent from a year earlier,
according to a report by Dow Jones.

Shares surged forward after the Company's board, at a meeting
held Thursday, approved a pending BRL1.0-billion (US$1=BRR2.39)
equity offering and a 1-for-10 reverse stock split.

Also at the meeting, the board granted authorization to issue an
additional 10 billion shares if it so chooses.

As part of the recapitalization plan for the money-losing cable
television provider, the Company plans to adhere to a set of more
rigorous corporate governance standards as defined by the Sao
Paulo Stock Exchange's Level 2 listing requirements.

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

          Marcio Minoru, +5511-5186-2811,


AES Corp.: Chilean Unit Halts New Loans, Itabo to Sell Soon
AES Gener, after passing on US$320 million in July 2001 and
US$61.6 million in August to its troubled parent, AES Corp.,
decided to stop granting further loans to the U.S.-based company.

Minority shareholders believe that successive transfers of cash
from the Chilean unit to AES Corp. caused a drop in its asset
totals to CLP144 million, and an increased in its liabilities to
CLP770 million.

AES Gener has put the sale of the Argentinean subsidiaries
Interandes and Termoandes on hold due to the devaluation of the
Argentinean Peso. However, Gener expects  to complete the selling
off of the thermal plant Itabo in the Dominican Republic soon.

Despite criticism from environmental related groups and the lack
of positive signals on power prices, AES Gener plans to begin
until end 2002 the works to erect the combined cycle power plant

The project is to be erected in two stages, one to be ready in
2005 has 370 Mw, and another to be ready in 2008 totaling 740 Mw
to cost investments of US$345 million.

AES Corp. controls 98.7 percent of the Chilean subsidiary through
Inversiones Cachagua.

          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer

MADECO: Global Economic Slump Takes Its Toll on Earnings
The slump in international and regional economies in the first
quarter, most especially the ongoing Argentine economic crisis,
continues to hurt the earnings of Chilean conglomerate Madeco SA.

The Company's first quarter 2002 earnings statements showed a
widening consolidated net loss of US$15.6 million against a net
loss of US$1.3 million posted in the first quarter of the
previous year. This reflected the temporary closure of its Decker
Indelqui wire and cable subsidiary in Argentina, which took
effect in January. The company also exited the curtain wall
business, Madeco said. The changes partly explain the 36 percent
year on year decline in revenues, to US$96.6 million, Madeco

Madeco reported a first quarter operating gain of US$3.3 million,
versus the year-earlier quarter's US$9.9 million gain, as lower
operating income in its Wire and Cable and Brass Mills businesses
offset stronger results in its Flexible Packaging and Aluminum
Profiles divisions.

The Company's non-operating loss widened 157 percent to US$19.8
million due in large part to Argentina. Madeco registered an
US$8.3-million loss resulting from the translation of its
Argentina operations using the devalued Argentine peso.

Madeco also recorded a loss equal to US$2.3 million in severance
payments from the Decker Indelqui closing, as well as booking a
provision equal to US$1.8 million related to the situation across
the Andes.

The Company has not shown a profit in over three years and the
deepening crisis in Argentina only served to worsen its
problematic situation.

At the start of January, Madeco initiated a financial
restructuring in an effort to reduce its debt and hired Salomon
Smith Barney to advise it during the process.

The investment bank is currently in talks with creditors to
renegotiate debt and determine the amount of additional required
capital. Once that process is complete, Madeco plans to carry out
a capital increase, which according to analysts' estimate, will
be for US$70 million to US$80 million.

          Marisol Fernandez, Investor Relations
          Voice : (56 2) 520-1380
          Fax  : (56 2) 520-1545
          E-mail  :
          Web Site:


          Oscar Ruiz-tagle Humeres, Chairman
          Albert Cussen Mackenna, CEO
          Santiago Edwards Morice, CFO
          Enrique S. Arangua, General Counsel
          Their Address:
          Ureta Cox 930
          Santiago Chile
          Phone   +56 2 520 1000

VTR GLOBALCOM: Faces Bankruptcy If Banks Refuse Loan Refinance
Bankruptcy looms ahead at VTR GlobalCom, Chile's largest cable
television company and a subsidiary of Denver-based
UnitedGlobalCom Inc., unless banks refinance a US$176-million

According to a report by Bloomberg, the Company, which is nearly
out of cash to meet payments, had until April 29 to pay the loan
and secure a 30-day extension from J.P. Morgan Chase & Co. and
five other banks.

An imminent collapse of VTR poses a great threat at
UnitedGlobalCom as it would deprive it of its only business with
positive earnings before interest, tax, depreciation and other
expenses. The Chilean unit last year accounted for 10.7 percent
of UnitedGlobalCom's US$1.5 billion in revenue and had US$26.9
million in EBITDA, while other units lost money.

"This is really surprising because we hadn't seen the
deterioration in the business at VTR that we saw elsewhere," said
Guzman & Co. analyst David Joyce, who currently recommends buying
UnitedGlobalCom shares. Joyce said he expects VTR to avert
bankruptcy by renegotiating its debt.

Meanwhile, in a SEC filing dated April 15, UnitedGlobalCom said
that although VTR can finance its cable, telephone and Internet
access operations, it won't have the cash to make loan payments
due this year.

As a likely result, VTR may have to sell assets, restructure its
operations or find other financing to repay its banks, the
company said.

There is "substantial doubt about its ability to continue as a
going concern," the company said.

Officials at VTR declined comment. UnitedGlobalCom spokesman
Jim Carlson said the company "is firmly committed to VTR," but
declined to comment on talks to refinance VTR's loan.

UnitedGlobalCom, which is controlled by Liberty Media, the media
company run by billionaire John Malone, bought VTR in 1999 and
has since added telephone and Internet access to its cable

CONTACT:  UnitedGlobalCom, Inc.
          4643 South Ulster Street
          Suite 1300
          Denver, CO 80237 USA
          Phone: 303-770-4001
          Fax: 303-770-4207
          Home Page
          Contact: Investor Relations
          Rick Westerman, Chief Financial Officer
          Phone: 303-770-4001


ALESTRA: S&P Lowers to 'B-'; CreditWatch Negative Continues
On May 2, 2002, Standard & Poor's lowered its foreign and local
currency corporate credit ratings on Alestra S. de R.L. de C.V.
to 'B-' from 'BB-' due to the Mexican telecom provider's
deteriorated liquidity, solvency concerns, and incipient volume
growth combined with very high debt. The downgrade also reflects
unclear financial support from shareholders. Ratings remain on
CreditWatch with negative implications because of uncertainties
regarding the refinancing of near-term financial obligations.
Near-term debt service and repayment are challenged by the
company's negative free cash flow and decreased ability to access
new financings. Alestra's May 2002 coupon payment will be made
through escrow account reserved cash. Subsequently, Alestra is
negotiating refinancing alternatives for its fully drawn US$25
million revolving credit facility which expires in July 2002, and
a US$32 million interest coupon in November 2002, whose timely
payment is uncertain.

The rating will likely be lowered again within the next few
weeks, unless there's additional shareholder support in the form
of an equity injection and/or credit guarantees, and a realistic
strategic and financing plan is implemented. This would allow
Alestra to carry its debt burden until improvements materialize
from a recovering local economy and revenue growth from higher
margin services. Following declining international settlement
rates, Mexican long-distance rates have fallen sharply (60%-70%
in real terms) since Alestra entered the market in 1997.
Consequently, Alestra has become increasingly dependent on growth
in higher margin services such as local calls, data, and Internet

Alestra's shareholders, include 49%-owner AT&T Corp. (BBB+/Watch
Neg/A-2) and Onexa S.A. de C.V. (unrated; 50.2% owned by Grupo
Alfa S.A. de C.V. and 49.8% by Grupo Financiero BBVA Bancomer
S.A. de C.V.). However, future support from these parties is
unclear. Additionally, one of the financing alternatives being
considered involves pledging Alestra's long-distance receivables,
which would result in the structural subordination of Alestra's
unsecured debt, and lead to a two 'notch' downgrade for Alestra's
senior notes relative to the corporate credit rating.

Ratings List

Corporate Credit Rating

Local currency B-/Watch Neg

Foreign currency B-/Watch Neg

Senior unsecured debt

US$270 million senior notes due May 15, 2006 B-/Watch Neg

US$300 million senior notes due May 15, 2009 B-/Watch Neg

ANALYST: Manuel Guerena, Mexico City (52) 55-5279-2011

ALESTRA: Revenues Up, Net Loss Declines in 1Q02 Results
Mexican long-distance operator Alestra is seeing a quarter-over-
quarter improvement in revenues due to a non-recurring adjustment
made in the 4Q01, an improved market share in data transmission
services, and higher prices.

According to a report released by Business News Americas, Alestra
posted a net loss of MXN128 million (US$13.6 million) for 1Q02, a
13.5 percent improvement over the MXN148 million net loss the
previous quarter, but still almost 200 percent worse than its net
loss of MXN43 million a year ago.

Revenues for the quarter totaled US$101 million, up 42 percent
from the US$71 million billed in 4Q01, and in line with revenues
for 1Q01, Alestra disclosed.

The Company also revealed that Ebitda reached US$16 million,
which, while an improvement over recent quarters, was still 9
percent below its Ebitda in the same period last year.

Alestra said its strategy since 2000 has been to expand its voice
and data business at a greater rate than its long distance
business. The company said its non-long distance revenues for
1Q02 were US$21 million, up 15 percent from the US$18 million
registered in 4Q01, and up 49 percent from the US$14 million
registered one year ago.

Alestra also reported 718 million minutes of traffic on its
network during the quarter, down 4 percent and 7 percent from the
volumes reported in the fourth and first quarters of 2001,

          Edificio ALESTRA
          Av. Lazaro Cardenas 2321, p.9
          Col. Residencial San Agustn
          CP. 66260 San Pedro,
          Garza Garcia Nuevo Le>n
          Phone: 8625-2100

          Av. Munich 175
          Col. Cuauhtemoc
          CP. 66450 San Nicolas de los Garza Nuevo Leon
          Phone: 8748-6100

          ALESTRA Guadalajara
          Av. Libertad 1955
          Col. Americana 44160
          Guadalajara, Jalisco
          Phone: 3540-8300

          ALESTRA Mexico
          Optima I
          Paseo de las Palmas
          405, piso 21
          Lomas de Chapultepec 11000 M,xico, D.F.

          Optima II
          Paseo de las Palmas
          275, piso 8
          Lomas de Chapultepec 11000 Mexico, D.F.

          Phone: 8503-5000
          Home Page:

          Jorge Escribano
          Alestra - Mexico
          Phone: +52 8 503 5011

SAVIA:Year End 2001 Results Show Soft Marktes, Resturcturing
Savia, S.A. de C.V. announced Friday results for fiscal 2001. The
results for Seguros Comercial America and for Empaques Ponderosa
are reported as discontinued operations in the attached tables.

Net Consolidated Sales

Net consolidated sales reached 702 million Dollars, a reduction
of 14% compared with the same period last year. The reduction is
a result of lower sales in the Agro business division and the
sale of non-strategic assets in Savia. Foreign currency
denominated sales for the period accounted for 93% of total

Consolidated Operating Income

Consolidated operating income for fiscal 2001 reached 2 million
Dollars, without considering extraordinary expenses by Seminis.
When considering these extraordinary expenses, consolidated
operating income for fiscal 2001 reflected a loss of 59 million
Dollars, 37 million Dollars (39%) lower than the loss reported in
fiscal 2000. This improvement is the result of a reduction in
operating expenses by 18% and in the cost of sales by 15%. The
operating cash flow recovered 33 million Dollars (50%) and
reported a negative cash flow of 33 million Dollars for fiscal

Net Consolidated Income

Net consolidated loss for this period reported 391 million
Dollars, 82 million Dollars (17%) lower than the reported loss
for fiscal 2000. This result shows a relevant step in the
recovery of profitability in the business. The majority loss
reported 293 million Dollars, a reduction of 47 million Dollars
(14%) as compared to fiscal 2000.



The total sales for fiscal 2001 reached 448 million Dollars, a
figure similar to that reported for fiscal 2000, when excluding
the effect of discontinued operations and exchange rate. When
considering extraordinary expenses, sales showed a decrease of

The operating expenses were reduced by 15% and reported 228
million Dollars for fiscal 2001. The operating loss reached 9
million Dollars, amount that reflects an improvement of 64% when
compared to fiscal year 2000. Cash flow from operations for
fiscal 2001 was 8 million Dollars, an improvement by 245% in
comparison to fiscal 2000. The initiatives implemented after
September 2000 kept improving business results.


The Bionova sales were 205 million Dollars, which represented a
decrease of 11% in comparison to sales reported during fiscal
2000. The operating loss was 9 million Dollars in comparison with
a loss of 24 million Dollars during the same period last year, a
reduction of 15 million Dollars (64%). During fiscal 2001 the
company sold non-strategic assets that included Tanimura
Distributing and Interfruver de Mexico.


In the accumulated results reported by Savia for its fiscal year
2001, a 48 million Dollar reserve, regarding deferred taxes for
Seminis subsidiary was included. Of the 48 million Dollar
reserve, 42 million Dollars were charged retractably in June 2001
and the other 6 million Dollars were charged in September 2001.
This amount was not reported by Seminis in its previous results.

These reserves are provisions made at the value that reflects
fiscal losses carried forward in countries where Seminis
operates, mainly in the United States of America and Netherlands.
These reserves were accounted by a methodology of deferred taxes
that takes into account the fiscal results achieved in the prior
three years in each country where the company operates. This
reserve does not imply cash out flow and it does not diminish the
true value of fiscal losses carried forward and the opportunity
of realizing these losses in the future.

Savia participates in industries that offer high growth potential
in Mexico and internationally. Among its main subsidiaries are:
Seminis a global leader in the development, production and
commercialization of fruit and vegetable seeds, Bionova, a
company focused on plant science for the development and
improvement of fruit and vegetable seeds; and Omega, a real
estate development company.

Savia's financial statements are prepared in compliance with
generally accepted accounting principles in Mexico. For the
consolidation of domestic subsidiaries, Savia follows the
guidelines set forth in bulletin B-10 and for foreign companies
follows the guidelines set forth in bulletin B-15. Seminis and
Bionova report following the generally accepted accounting
principles of Mexico. These results are adjusted to reflect the
above-mentioned guidelines. In addition, Seminis reports its
fiscal year the first quarter of October through the last of
September. Savia reports its fiscal year on a calendar basis,
including in its consolidated results the operations of Seminis
according to calendar year.

To see financial statements:

CONTACT:  Savia S.A. de C.V.
          Investor Relations: Francisco Garza
          Phone: 011-52818-173-5500
          Fax: 011-52818-173-5508

          Investor Relations: Francisco del Cueto
          Phone: 011-52555-6623198
          Fax: 011-52555-6628544
          Home Page:


ENRON: Loses Bid On Enel Over Technicality, Court Appeal Follows
Enron Nicaragua said Saturday it will contest Nicaragua's
decision to sell two state-owned hydroelectric plants to the U.S.
firm Coastal Power International, says EFE.

On Wednesday, officials announced Enron Nicaragua had won a bid
for 95 percent control of the two Nicaraguan plants with an offer
of US$41.4 million.

However, Mario Montenegro, president of state-run Nicaraguan
Electricity Company (Enel), announced Saturday that Enron
Nicaragua failed to provide the required US$2 million guarantee
for its bid.

As a result, the two plants, each with a capacity of 50
megawatts, were awarded to U.S. firm Coastal Power, runner-up in
the original bidding process with an offer of US$41.2 million.

"We will use all the recourses permitted by law, including a
legal challenge," Enron's attorney in Nicaragua, Raul Palacios,
said, adding that the Company will file a complaint with the
Comptroller General "because state-contracting laws were
violated, and if necessary, we will go to the Supreme Court."

Enel spokesman Luis Adolfo Diaz, confirmed to EFE that the tender
committee discarded the Enron bid and sold the plants to Coastal
Power. According to Diaz, committee members, led by Abdel Karim,
said the presentation of Enron Nicaragua's surety bond had

Palacios said the alleged lack of a guarantee is "an
interpretation by Karim and the committee members, because there
was a guarantee by an international firm."

Privatization of Enel's generators is part of an agreement with
the International Monetary Fund to sell off state enterprises.
Enel has two other generators on the block but has not received
any offers.


BANCO COMERCIAL: Moody's Cuts Foreign Currency Ratings
Moody's downgraded the long-term term foreign currency deposit
ratings of Banco Comercial S.A. to Ba3 from Ba2, and confirmed
the bank's foreign currency senior and subordinated debt ratings
at Ba3 and B1, respectively. The ratings were placed on negative

The ratings affected are:

-- Long-term foreign currency deposits downgraded to Ba3 from
Ba2, with negative outlook.

-- Long-term foreign currency senior debt confirmed at Ba3, with
stable outlook.

-- Long-term foreign currency subordinated debt confirmed at B1,
with stable outlook.

The rating actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bonds, notes, and
bank deposits, with a negative outlook.

Banco Comercial is Uruguay's largest domestically owned private
bank. As of December 31, 2000, Comercial had US$1.9 billion in
assets, US$1.6 billion in deposits, and US$151 million in equity.

New York
Jeanne Del Casino
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


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

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

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

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

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

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

* * * End of Transmission * * *