/raid1/www/Hosts/bankrupt/TCRLA_Public/020509.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

            Thursday, May 9, 2002, Vol. 3, Issue 91

                           Headlines


A R G E N T I N A

BANCO DEL CHUBUT: Mismanagement Prompts Central Bank To Freeze
REPSOL YPF: Congressman Sues Governor Over US$112M Tax Break
SCOTIABANK QUILMES: Planned Sale Sparks Sector-Wide Concern
SCOTIABANK QUILMES: Hires Merchant Bank For Buyer Search


B R A Z I L

COTROJUI: Renegotiates BRL200 Million Debt With Creditors
ELETROPAULO: Heralds Arrival Of New President
VARIG: Considers Novo Mercado Listing


C O L O M B I A

SEVEN SEAS: Provides Escuela 2 Update


D O M I N I C A N   R E P U B L I C

TRICOM: Puts Positive Spin On 1Q02 Numbers


M E X I C O

BANCRECER: IPAB Hires Fenix As Agent In Past-Due Loans Sale
CINTRA: 1Q02 Results Show Revenues Down, Net Loss Shrinks
CINTRA: Delta, United Airlines Considered Most Likely Buyers
HYLSA: To Conclude Debt Restructuring By June
HYLSAMEX: Currying Favor With Creditors, Shareholders
MAXCOM TELECOMUNICACIONES: Strikes Refi Deal With 3 Operators
SAVIA: Seminis Three-Month, Six-Month Results Show Turnaround
SURESTE/ANAHUAC/INDUSTRIAL: IPAB Studies Hold Futures In Balance


N I C A R A G U A

ENRON: Enel Still Evaluating Hidrogesa Bids, No Deal So Far


P E R U

VOLCAN: Analyst Cautiously Ups to `Hold' Pending Zinc Prices


U R U G U A Y

BANCO COMERCIAL: S&P Cuts Ratings; On CreditWatch Developing


     - - - - - - - - - -


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

BANCO DEL CHUBUT: Mismanagement Prompts Central Bank To Freeze
--------------------------------------------------------------
Argentine regulators suspended the operations of Banco del Chuut
citing mismanagement by executives, reports Bloomberg. Banco del
Chubut, whose activities have been suspended for more than 20
days now, committed "numerous regulatory violations and
irregularities in credit management," according to a central bank
document.

National customs agency head, Mario Das Neves, claimed that
Chubut provincial officials had used the bank for the past 10
years to finance themselves, friends and political allies.

According to published data from June 2001, non-performing loans
made up more than 40 percent of Banco del Chubut's ARS335 million
(US$106 million) of total credits. The bank employed 491 people
and ranked number 39 by assets in the country.

CONTACT:  BANCO DEL CHUBUT S.A.
          Street Rivadavia 615 Rawson
          9103 Buenos Aires
          Argentina
          Phone: 0297-482-505
          Fax: 0297-482-513
          E-mail: contacto@chubutbank.com.ar
          Home Page: www.bancochubut.com.ar/
          Contact:
          Dr Jorge Francisco Barcia, President
          Mr. Mario Alberto Gonz lez, Vice President


REPSOL YPF: Congressman Sues Governor Over US$112M Tax Break
------------------------------------------------------------
Argentine congressman Carlos Morana is taking legal action
against Neuquen province governor Jorge Sobisch, according to a
Business News Americas report.

The lawsuit accused Sobisch of failing to charge Argentine oil
company Repsol-YPF US$112 million stamp duties relating to the
US$8 billion extension of the Company's concession for the Loma
de la Lata-Sierra Barrosa gas producing area.

The complaint, which also charges other members of the provincial
government who could have played a part in the alleged
irregularity, includes a civil action calling for the missing
money to be reimbursed.

In December 2000, Repsol-YPF signed contracts with Neuquen for
the extension of the concession, but the province never released
full details of the contract.

After Morana made his first allegations six months following the
signing, the government said that stamp duties were not
applicable because the deal was an investment plan, and not a
contract.

Provincial law does, however, allow stamp duties to be waived in
certain cases, but only when the economy ministry passes a
corresponding resolution, and a decree is issued to ratify the
exemption.

No decree was issued for Repsol's exemption, Morana pointed out.

CONTACTS:  REPSOL YPF
           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page: http://www.repsol.com
           or
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires
           Argentina


SCOTIABANK QUILMES: Planned Sale Sparks Sector-Wide Concern
-----------------------------------------------------------
Bank of Nova Scotia's plan to put its Argentine unit, Scotiabank
Quilmes SA, on the block is now putting the country's commercial
banking future in question, suggests Dow Jones.

"It's just a matter of time," before more international and local
banks close their doors, said Standard & Poor's Corp. banking
analyst Cristian Krossler.

"There are no deposits... and banks are not collecting
anything... No one bank is better off than any other," he said.

Bank of Nova Scotia told workers in Buenos Aires early this week
that it refused central bank demands to keep financing Scotiabank
Quilmes SA and is seeking a buyer.

The fourth-largest Canadian bank, which wrote off CAD707 million
(US$451 million) of losses in Argentina, would be the first
international lender to abandon the country since the government
defaulted on its US$141-billion public debt in December and
devalued the peso in January.

While the Canadian bank contemplates the future of its local
unit, spokesmen at HSBC, Citibank and other international
companies with banking operations in Argentina either refused to
comment on their companies' immediate future or were unavailable
to do so.

Other companies with banking operations in Argentina include:
Grupo Financiero Galicia SA (GGAL), Banco Bilbao Vizcaya
Argentaria SA (E.BBV), ItesaBCI SpA (I.ITB), ABN Amro Bank (ABN),
ING Bank NV (N.INK), Banca Nazionale del Lavoro SpA (I.BNL), BNP
Paribas (F.BNP), Deutsche Bank (G.DBK), Societe Generale (F.SGF)
and Lloyds TSB Group (LYG).

International financial services companies in Argentina have been
forced to take losses of more than US$8 billion following the
default and the January devaluation.

The International Monetary Fund expects that Argentine banks'
losses will total US$17.4 billion by the end of this year, or 80
percent of the banking system's total assets as of Dec. 31, 2001.

CONTACTS:  SCOTIABANK QUILMES
           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
           E-mail: scotiarep@sinectis.com.ar


SCOTIABANK QUILMES: Hires Merchant Bank For Buyer Search
--------------------------------------------------------
Bank of Nova Scotia hired local investment bank Merchant Bank
Argentina to find a buyer for Scotiabank Quilmes.

A report released by AFX reveals that the banks interested in
bidding for the local unit include Citigroup Inc, Banco Itau SA,
Banco Hipotecario and Banco Macro.

Banco Hipotecario remains the front-runner. According to a source
"close to the negotiations," officials from Banco Hipotecario
plan to travel to Canada this week to meet with Bank of Nova
Scotia representatives.

CONTACTS:

CITIGROUP INC.
399 Park Ave.
New York, NY 10043
Phone: 212-559-1000
Fax: 212-793-3946
Email: investorrelations@citi.com
Home Page: http://www.citigroup.com
Contact:
     Sanford I. (Sandy) Weill, Chairman and CEO
     Todd S. Thomson, EVP, Finance and Investments and CFO

Citigroup in Argentina:
Bartolome Mitre 502/530
Buenos Aires C1036AAJ
Argentina
Phone: 54 11 4329-1339
Home Page: http://www.citibank.com/argentina

BANCO ITAU S.A.
Rua Boa Vista, 176
01014-919 Sao Paulo, Brazil
Phone: +55-11-237-3000
Fax: +55-11-5582-1133
Home Page: http://www.itau.com.br
Contacts:
Geraldo Soares, Investor Relations Superintendent
Pra‡a Alfredo Egydio de Souza Aranha, 100
Torre Concei‡ao - 11§ andar
04344-902 - Sao Paulo - SP
Phone: +5511 5019-1549
Fax: +5511 5019-1133

BANCO HIPOTECARIO SA
Reconquista 101
(1005) - Capital Federal
Buenos Aires
Argentina
Phone: 0800-999-4476
Fax: (54-11) 4347-5278
E-mail: ri@hipotecario.com.ar
Home Page:  http://www.e-hipotecario.com.ar
Contact:
Miguel A. Kiguel, Chairman

BANCO MACRO S.A.
Sarmiento 735
(1041) Buenos Aires
Argentina
Tel. (54-11) 4323-6300
Fax  (54-11) 4325-6935
Telex 18343 MacroAr -  4260 Macro Ar
E-mail: banco@grupomacro.com.ar
Home Page: http://www.grupomacro.com.ar/contacto.htm



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

COTROJUI: Renegotiates BRL200 Million Debt With Creditors
---------------------------------------------------------
With a goal of slashing its US$200-million debt by half,
Cotrojui, one of the largest agricultural cooperatives in Brazil,
is now at the negotiating table with its creditors, mainly banks.
According to a South American Business Information report, half
of the debt has already been converted to longer terms.

Cotrojui sees the renegotiation as fundamental to its normal
functioning and maintenance of relations with its suppliers.

The Company, which was nearly liquidated in 1995, has undergone
restructuring, sold off non-essential assets and has since seen
its turnover increase by 30 percent in 2001 compared to 2000,
reaching BRL334 million.


ELETROPAULO: Heralds Arrival Of New President
---------------------------------------------
Mark Fitzpatrick is taking over the helm at Electricity
distributor Eletropaulo. Mr. Fitzpatrick, who faces a very
challenging task of rolling over Eletropaulo's debt of BRL1.9
billion, of which BRL1.3 billion comes due this year, will be
replacing Luiz David Travesso, who is also leaving the vice-
presidency of Eletropaulo's controller, AES Corp.

Travesso is leaving his post after he accomplished three
important tasks:

- the uncoupling of the shares held by AES in Eletropaulo and
Light;
- the negotiations which resulted in a general agreement in the
eletricity sector and;
- the restructuring of the debt acquired by the AES holding
company with BNDES in the acquisition of Eletropaulo.

Travesso was instrumental in the discussions between the industry
and government over the question of compensation to energy
distributors for the losses incurred during the period of energy
rationing.

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

CONTACTS:  ELETROPAULO METROPOLITANA
           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
           Brazil
           Phone: +55-11-548-9461, +55 11 5696 3595
           Fax: +55-11-546-1933
           URL: http://www.eletropaulo.com.br


VARIG: Considers Novo Mercado Listing
-------------------------------------
Brazilian airline Viacao Aerea Riograndense SA (Varig) is
contemplating the possibility of listing its shares in the Novo
Mercado, a modern-style equity exchange with rigorous corporate
governance and accounting standards.

The airline, which turned 75 years old just recently, is
currently working on a restructuring program aimed at cutting its
losses and looks to conclude this program late this year.

As part of the program, Varig has asked Brazil's National
Development Bank (BNDES) for financing.

BNDES, on the other hand, said it is now pushing firms that ask
for funds from the government agency to list on the Novo Mercado.

Varig has said it hopes to hold a secondary share offering to
slash its US$800-million debt load by half and is trying to
replace regional unit RioSul's fleet with Boeing Corp. (BA) 737
airplanes to fend off competition from upstart discount carrier
Gol.

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

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



===============
C O L O M B I A
===============

SEVEN SEAS: Provides Escuela 2 Update
-------------------------------------
Seven Seas Petroleum Inc. announced that the Escuela 2
exploration well reached a total measured depth of 16,471 feet
last week when the drill pipe became stuck while a gas influx was
being circulated out of the hole. The Company has recovered pipe
down to 15,955 feet and is currently conditioning the hole to run
9 5/8-inch casing to a depth of approximately 15,800 feet. After
the casing is set, the Company plans to resume drilling in 8 1/2-
inch hole around the unrecovered drill string.

Based on geologic information to date, including paleontological
studies of rock samples, the Company believes that at 16,471
feet, the well bore was in the lower Villeta formation. Absent
additional mechanical problems, the Company believes that it can
reach a total depth of 18,000 feet within the $15 million
escrowed to drill this well. If the geologic data are encouraging
at this depth, the well may be drilled deeper than 18,000 feet,
potentially resulting in expenditures beyond the $15 million.
Completion and testing the well could increase the well costs by
approximately $2 million above the drilling costs.

"Our optimism for the Subthrust Dindal Prospect remains
unchanged," stated Robert A. Hefner III, Chairman and Chief
Executive Officer of Seven Seas.

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.

CONTACT:  SEVEN SEAS PETROLEUM INC.
          Bryan Sanchez, Investor Relations
          Tel. +1-713-622-8218



===================================
D O M I N I C A N   R E P U B L I C
===================================

TRICOM: Puts Positive Spin On 1Q02 Numbers
------------------------------------------
In an official company press release, TRICOM announced Tuesday
financial results for its first quarter ended March 31, 2002.

    Highlights:

    * Consolidated revenues grew 11.5 percent to $64.0 million.
    * Consolidated EBITDA totaled $20.1 million.
    * Adjusted EBITDA, excluding $1.3 million of negative EBITDA
      related to the startup of the company's Central America
      expansion program, totaled $21.4 million.
    * Net loss of $10.6 million, or 24 cents per share.
    * Access lines in service grew 18.5 percent to 185,000.
    * Wireless subscribers increased 35.5 percent to 388,000.
    * Capital expenditures declined 45.6 percent to $18.3
      million.
    * Restructures $77 million of short-term borrowings.

"In the first quarter, we continued to experience strong demand
for our major growth drivers. Our strategy to focus on high-end
users is paying off as we continue to successfully penetrate the
postpaid and corporate market segments. Additionally, we began to
reap the benefits of the cost management and capital spending
reductions instituted over the past quarters, as evidenced by a
sequential quarterly operational and cash flow margin
improvement. We also undertook several important steps to improve
our near- term liquidity and capital structure, by extending the
maturity of a significant portion of our short-term debt," said
Arturo Pellerano, TRICOM's chairman and chief executive officer.
"Going forward we will continue to remain intensely focused on
strengthening our cash flow generation, continually maintaining a
disciplined approach to expense management, effectively managing
our capital investments and improving our capital structure. We
are focused on reaching our operational and financial goals,
maintaining our high levels of customer service, ensuring a clear
course towards reaching positive free cash flow and increasing
shareholder value."

Local service revenues increased by 13.1 percent to $16.8 million
during the first quarter as a result of the strong line growth,
particularly in the business segment, where the company
registered a 140 percent year-over-year increase in the number of
corporate accounts it serves. The company added approximately
15,000 gross and 7,800 net access lines in the first quarter.
Corporate accounts accounted for approximately 58 percent of the
company's gross line additions during the first quarter.
Corporate customers, who generate higher service revenues, now
comprise approximately 15 percent of the company's subscriber
base, up from 7 percent for the first quarter 2001.

Cellular and PCS revenues grew 6.9 percent to $9.5 million during
the first quarter, primarily due to strong prepaid subscriber
additions and higher minutes of usage, partially offset by a
year-over-year decrease in average revenue per user (ARPU).
During the first quarter, the company added approximately 72,000
gross and 24,000 net wireless subscribers. Minutes of usage
increased 11.3 percent to 54.5 million minutes in the first
quarter. The decline in ARPU was attributed to a broader base of
lower usage prepaid customers. The company recently instituted
new marketing programs and pricing plans targeted to digital
postpaid contract customers geared towards improving the quality
usage profile of its wireless customer base.

Revenues from cable television services totaled $5.2 million in
the first quarter, representing an 11 percent increase from
revenues in the fourth quarter of 2001, the first quarter
following the acquisition of cable operations. The revenue growth
was primarily derived from basic and premium programming
services, installation fees and revenues from advertising sales.
At March 31, the company served approximately 68,000 cable
subscribers.

Data and Internet revenues grew 29.6 percent to $2.4 million
during the first quarter, primarily due to the continued growth
in the number of data and Internet subscribers. Data and Internet
subscriber base grew 34.9 percent year-over-year to approximately
9,700 at March 31.

International revenues totaled $21.3 million in the first
quarter, representing an increase of 8.2 percent year-over-year,
primarily as a result of higher inbound traffic derived from the
company's U.S. wholesale and prepaid card international long
distance operations. The company's revenue growth in the first
quarter was slowed, in large part, by a decrease in both toll and
installation and activation revenues. Toll revenues decreased
15.1 percent to $6.3 million during the first quarter, primarily
as a result of competitive pricing for outbound international
long distance traffic within the company's local service market.

Installation and activation revenues decreased 52.7 percent
during the first quarter to $1.4 million, primarily as a result
of a change in revenue recognition regarding the average service
life of installation and activation revenues, combined with lower
revenues from prepaid local access lines installations.

Consolidated operating costs and expenses, including $1.7 million
related to the operations of TRICOM Latin America in Panama,
totaled $62.6 million in the first quarter, a 25 percent increase
over the same period last year. These results reflect increases
in network and non-network depreciation expenses, resulting from
the company's capital investment expansion programs, and higher
general and administrative expenses, primarily related to the
company's Panamanian operations and to the integration of the
recently acquired cable television operations. Higher selling
expenses, resulting from increased commissions, related to the
growth of the company's prepaid operations in the U.S. and the
strong level of customer acquisitions in the Dominican Republic,
combined with higher transport and access charges, attributed to
higher volumes of international long distance traffic,
contributed to the overall year-over-year increase in the
company's cost structure.

Operating margins were 2.3 percent in the first quarter compared
with 12.9 percent for the year-ago quarter. In the first quarter,
the company initiated revenue enhancing pricing programs and new
service offerings, coupled with cost reduction initiatives aimed
at reducing expenses, combined to produce close to a two-
percentage point operating cash flow and EBITDA margin
improvement over the fourth quarter 2001. Adjusted EBITDA margin
was 33.5 percent for the first quarter. Consolidated EBITDA
margin was 31.4 percent for the first quarter compared with 39.9
percent for the year-ago period.

Interest expense totaled $13.6 million in the first quarter
compared to $9.7 million in the year-ago quarter. The year-over-
year increase resulted from a higher aggregate amount of
interest-bearing debt incurred to expand and operate the
company's telecommunications networks coupled with lower interest
capitalization, as a result of a reduction in the company's
capital expenditure program during the course of the year. Total
debt including capital leases amounted to $527.9 million at March
31, 2002, comprised of $380.7 million in long-term borrowings,
and $147.2 million in short-term loans with related companies,
local and international banks. During the first quarter the
company restructured approximately $77 million of its short-term
debt to long-term debt with maturities ranging from 1.5 to 6
years. The company is currently in negotiations to extend the
maturity of additional short-term debt before the end of the
second quarter 2002.

For the quarter, capital expenditures totaled $18.3 million, down
45.6 percent from $33.7 million in the same period last year. The
company decreased its free cash flow deficit by 42.5 percent to
approximately $15.0 million in the first quarter compared to
$26.1 million for the year-ago quarter.

About TRICOM

TRICOM, S.A. is a regional integrated telecommunications provider
in the U.S., Caribbean and Central America. In the Dominican
Republic we offer local, long distance, cable television
entertainment, mobile telephony, as well as broadband data
transmission services. Through TRICOM USA, we own switching
facilities in New York, Miami and Puerto Rico, providing us with
end-to-end connectivity, and are one of the few Latin American
long distance carriers that have a United States licensed
subsidiary. Through TCN Dominicana, we are the largest cable
television operator in the Dominican Republic based on our number
of subscribers and homes passed. TRICOM is deploying the first
integrated digital wireless communication network based on
iDEN(R) technology across Central America.

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

CONTACT:  TRICOM
          Miguel Guerrero, Investor Relations
          Tel. (809) 476-4044 / 4012
          E-mail: investor.relations@tricom.net



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

BANCRECER: IPAB Hires Fenix As Agent In Past-Due Loans Sale
-----------------------------------------------------------
Asset-management company Fenix Administracion de Activos has been
hired to act as placing agent in Mexico's deposit insurance
agency IPAB's auction of 12,504 past-due loans from seized bank
BanCrecer.

The IPAB, in a release, revealed that the commercial and
industrial loans have a combined face value of MXN3.32 billion
(US$1=MXN9.4850). These will go on the block in four packages,
the IPAB said. Winning bids will be disclosed May 28.

Grupo Financiero Banorte took possession of Bancrecer late last
year in a transaction valued at MXN1.650 billion, equivalent to
66 percent of the bank's book value.

Bancrecer was the last of the banks taken over by IPAB to be re-
privatized after the bank rescue resulting from the peso crisis.

CONTACTS:  IPAB
           Adrian Hong
           5209-5636
           eahong@ipab.org.mx

           Juan Pablo Trevizo
           5209-5631
           jptrevizo@ipab.org.mx

           Natalia Ize
           5209-5636
           nize@ipab.org.mx

           Erika Avil‚s
           5209-5500
           eaviles@ipab.org.mx

           Email: investor-relations@ipab.org.mx


CINTRA: 1Q02 Results Show Revenues Down, Net Loss Shrinks
---------------------------------------------------------
(All figures are expressed in pesos of equivalent purchasing
power as of March 31st, 2002, unless specified otherwise.
Financial Statements meet Mexican GAAP, and are not audited.)

CINTRA, S.A. DE C.V., Mexico's leading air transportation system
reported its non audited results for the first quarter 2002,
emphasizing the following:

- Load factor, 59.7%
- Total income $6,325 million pesos
- EBITDAR, 8.4% on revenue
- Operating loss 394 million pesos
- Net loss $408 million pesos

CINTRA reported total revenues for this quarter of Ps. 6,325
million pesos, which represents a 13.3% decrease with respect to
1Q 2001. EBITDAR was Ps. 533 million pesos, the same than 1Q2001,
however, it improved from 7.3% to 8.4% of the total revenues. The
company reported an operating loss of Ps. 394 million pesos,
better than the same period last year by 15.5% and a net loss of
Ps. 408 million pesos compared to Ps. 464 million pesos in the
first quarter 2001. Despite the negative operating results, the
cash decreased only 102 million pesos, reflecting its careful
management.

The income decrease is attributed to the economic deceleration in
Mexico and the U.S., the effects of the attacks from last
September, what it perceives as unfair competition from domestic
airlines, and the revaluation of the Mexican peso in real terms,
that affect the income denominated in US dollars.

The ASK's and RPK's reported 9,739 and 5,708 million
respectively. While capacity decreased 8.7%, passenger revenue
did in 14% quarter over quarter.

To simplify the sale process, during the first quarter the
Corporate structure was reviewed, creating two distinct groups:
Grupo Aeromexico - an integration of Aeromexico and Aerolitoral;
and Grupo Mexicana de Aviaci¢n, integrated by Mexicana de
Aviaci¢n, Aerocaribe / Aerocozumel. In addition, the structure
includes companies where both groups are partners, SEAT, ITR,
SABRE, Centro de Capacitaci¢n Alas de Am‚rica and Aeromexpress.

The Ps. 1,000 million pesos loan that the Congress authorized for
all the national airlines during the last quarter 2001 has not
been disbursed although initial proceeds were expected by March
2002. The operation rules were issued and the Company expects to
receive the cash by May.

International passenger revenues were affected by the economic
deceleration in the United States and Mexico, the effects of the
attacks in the United States during September last year and the
peso revaluation. In pesos, 2,253 million, an 18.5% drop from
those in the same quarter 2001.

Cargo revenues decreased 16.3% compared to the same period 2001,
reaching 262 million pesos due to the economic deceleration in
the United States and Mexico and the revaluation of the Mexican
peso in real terms.

During the quarter, Mexicana started direct flights to Caracas,
Santo Domingo and San Salvador. The Company also started its
Share Code with ANA (All Nipon Airways) which offers passengers
shorter stand-by time in connection flights. In addition,
Alitalia joined SkyTeam, which offers connection and interest
points in Europe.

Operation Costs were 5,792 million pesos, 14.3% lower than the
same period 2001. Personnel cost was Ps. 2,266 million pesos,
6.5% in real terms lower than the same period last year,
reflecting renegotiations of the labor contracts and a personnel
reduction during the final months of 2001 and this quarter.

Jet fuel expenditures dropped 41.5% than last year's first
quarter, equivalent to Ps. 732 million pesos, due to a decrease
in the international market price per liter. The service to
passenger cost was 191 million pesos, 26.2% lower than the first
quarter 2001, due to less transported passengers and other cost-
cutting measures.

During this quarter the commissions were reduced in 23.3%,
equivalent to 489 million pesos, as a result of lower income and
a reduction in percentage points implemented during the first
quarter last year. Administration cost decreased 7.1% as a result
of significant cost reduction measures, including the elimination
of head quarters activities, since last year these expenses were
substantially reduced with a 145 million pesos savings. The
insurance figure reflected a spectacular increase in 209% to
reach 147 million pesos because of increasing liability premiums.

Continuing with the focused efforts to reduce costs, the ASK /
cost for the period January - March 2002 decreased 6.1% with
respect to the same period last year. Also, the Mexicana fleet
renovation program continued grounding 2 Airbus A319's and 2
Boeing B-727/200's. Aeromexico received the board authorization
for the fleet renewal program that will start by the second
semester 2002, replacing 15 DC-9 aircraft.

EBITDA was Ps. 533 million pesos, equivalent to 8.4% of the total
revenues, during the same period last year with a similar figure,
it represented a 7.3% of the total revenues.

As a result of the above, during the first quarter 2002 CINTRA
reports an operating loss of 394 million pesos and a net loss of
408 million pesos.

To see financial statements: http://bankrupt.com/misc/Cintra.pdf


CINTRA: Delta, United Airlines Considered Most Likely Buyers
------------------------------------------------------------
U.S. airlines Delta and United, which already have code-sharing
alliances with Aeromexico and Mexicana, are seen as the most
probable potential buyers of Cintra, the holding company that
controls the two Mexican airlines.

"They would be the natural buyers," Francisco Contreras, advisor
to the board of Aeromexico, said, adding that the foreign firms
could have a limit of 25 percent participation in the company by
law, though this could be raised to 49 percent with the approval
of the National Foreign Investment Commission (CNIE).

However, he said that the share could "never be a majority."

Contreras expects the sale to be difficult this year because the
markets are still not ready. According to him, the sale process
would be a long one because of the situation in the industry.

CONTACT:  CINTRA
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO

          Xola 535, Piso 16, Col. del Valle
          03100 Mexico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055

          OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx

          AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com


HYLSA: To Conclude Debt Restructuring By June
---------------------------------------------
Hylsa, the primary subsidiary of Hylsamex, is confident it will
wrap up debt-restructuring talks with creditor banks in June,
reports Business News Americas, citing Hylsa's CFO Ricardo Sada.

Hylsa reportedly owes the banks US$627 million, on top of US$373
million worth of market debt made up of bonds and promissory
notes. Holders of the notes and bonds agreed in March to
reschedule repayments.

In a statement to the Mexican bourse, Hylsamex, the steelmaking
division of Mexico's Grupo Alfa, disclosed over 50 percent of
holders of its bonds maturing 2007 totaling US$153 million, have
agreed to exchange the debt for bonds maturing in 2010, thus
satisfying the minimum conditions for the swap.

The Company extended the deadline for the rest of the holders to
exchange their bonds until May 16.

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

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


HYLSAMEX: Currying Favor With Creditors, Shareholders
-----------------------------------------------------
Although Hylsamex is in financial distress once more, its complex
US$1.4-billion debt restructuring is winning applause from
creditors and shareholders alike. Under the proposed plan, parent
company Alfa will reduce debt by US$250 million and outside
creditors will postpone repayment by an average of three years,
suggests the Financial Times.

"We're very happy with the way they have behaved," says Eduardo
Cepeda, head of JP Morgan in Mexico. "They are dealing with this
in a first-world, business-like manner."

In late-April, the company announced an exchange of 51 percent of
its US$300-million Eurobond issue, which included a crucial
adjustment to terms that should allow the rest of the
restructuring to fall into place.

Expected to close successfully, the operation will reduce total
debt to 6.6 times earnings before interest, depreciation and
amortization (EBITDA), according to estimates from Banorte, a
Mexican bank. This is still a heavy burden but serviceable if the
steel market recovers.

As negotiations progress, Hylsamex's share price has rebounded
from its October 2001 low. The key, say bankers, was the early
warning.

In January 2001, with steel prices in their third year of
depression, Hylsamex was staggering under a debt load more than
10-times EBITDA.

During the 1990s, it had borrowed heavily to upgrade its plants.
Although it was just able to pay its interest for 2001, US$400
millio of principal payments loomed in 2002.

Hylsamex called its bankers in to work out a solution.

"They saw it coming, they did their homework, got people together
and put on a good face," says a banker.

CREDITORS:

GRUPO FINANCIERO BBVA BANCOMER, S.A. DE C.V.
Montes Urales 424,
Col. Lomas de Chapultepec
11000 M‚xico, D.F., Mexico
Phone: +52-55-5201-2000
Fax: +52-55-5201-2313
Home Page: http://www.bancomer.com.mx
Contacts:
Ricardo Guajardo Touche, Chairman
Vitalino M. Nafria Aznar, Chief Executive Officer

Investor Relations Contact:
Grupo Financiero BBVA Bancomer
Av. Universidad 1200,
Col. Xoco, M‚xico, D.F.
E-mail: investor.relations@bbva.bancomer.com
Fax: (52) (55) 5621-7912

David Sanchez-Tembleque
Phone: (52) (55) 5621-4938
       (52) (55) 5621-4966

Jose de Jesus Gomez Dorantes
Phone: (52) (55) 5621-4718

Araceli Espinosa Elguea
Phone: (52) (55) 5621-2718

BAYERISCHE HYPO- UND VEREINSBANK AKTIENGESELLSCHAFT (HVB GROUP)
Am Tucherpark 14
D-80538 Munich, Germany
Phone: +49-89-378-0
Fax: +49-89-378-27784
Home Page: http://www.hvbgroup.com/wwwger/index.cfm
Contact:
Investor Relations
Hotline: 00800-378 000 00 (free and only from D, A, CH)
Phone: +49 (89) 3 78 - 2 52 76
Fax: +49 (89) 3 78 - 2 40 83
E-mail: ir@hvbgroup.com

Stefan Ermisch, Head of Group Investor Relations
Phone:  +49 (89) 3 78 - 2 55 30
E-mail:  Stefan.Ermisch@hvbgroup.com

J.P. MORGAN CHASE & CO.
270 Park Avenue
New York, NY 10017
Phone: (212) 270-6000
Fax: (212) 270-1648
Home Page: http://www.jpmorganchase.com/
Contact:
William Harrison, Jr., Chairman and Chief Executive  Officer
Dina Dublon, Chief Financial Officer
Geoffrey Boisi, Co-CEO of the Investment Bank

Investor Relations
Phone: (1-212) 270-6000

GRUPO FINANCIERO BANAMEX, S.A. DE C.V.
Paseo de la Reforma 420, Colonia Ju rez
06600 M‚xico, D.F., Mexico
Phone: +52-55-5225-4095
Fax: +52-55-5225-5837
Home Page: http://www.banamex.com
Contacts:
Alfredo Harp Hel£, Chairman
Manuel Medina Mora, President and CEO
Jorge Hierro, Deputy President and CFO


MAXCOM TELECOMUNICACIONES: Strikes Refi Deal With 3 Operators
-------------------------------------------------------------
Adverse conditions in Latin American and telecommunications
markets did not prevent Maxcom Telecomunicaciones, S.A., from
closing a refinancing deal.

After six months of negotiations, the Mexican wireline
communications operator revealed Tuesday it received US$7 million
in vendor finance commitments from three different operators
whose names were not disclosed.

According to Maxcom Chief Executive Fulvio del Valle, the
facilities carry 12-month maturities and no interest.

Just recently, Maxcom wrapped up a debt restructuring deal in
which bondholders agreed to write off 36 percent of Maxcom's debt
in exchange for a 15-percent equity stake in the Company.

The bondholders agreed to swap US$275 million of notes due April
2007 bearing a 13.75 coupon for US$175 million in paper due in
March of the same year, but with zero interest for the first four
years.

Instead Maxcom will make interest payments of 10 percent worth
about US$30 million in the final year of the bonds' life cycle,
saving the Company US$129.6 million.

At the same time, shareholders including Bank of America and the
Aguirre Gomez family also agreed to contribute US$66.2 million to
the Company for 72.5 percent in equity.

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

To see Financial Statement: http://bankrupt.com/misc/MAXCOM.htm

CONTACT:  MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
          Mexico City, Mexico
          Jose-Antonio Solbes
          Phone: (5255) 5147-1125
          E-mail: investor.relations@maxcom.com

          CITIGATE DEWE ROGERSON
          New York, NY
          Lucia Domville
          Phone: (212) 419-4166
          E-mail: lucia.domville@citigatedr-ny.com


SAVIA: Seminis Three-Month, Six-Month Results Show Turnaround
-------------------------------------------------------------
Seminis Inc., the world's largest developer, producer and
marketer of vegetable seeds, reported Tuesday results for the
three-month and six-month periods ended March 29, 2002. The
company released preliminary second quarter results late last
month due to filing requirements of its parent company. There
have been no material changes since then.

As previously announced, net income for the second quarter of
fiscal year 2002 was $25.7 million compared to $4.9 million
during the same quarter last year. Net income available for
common stockholders was $21.0 million or $0.34 per share this
quarter, compared to $0.2 million or negligible earnings per
share this quarter during the same quarter last year.

"The results for this quarter -- our strongest quarter seasonally
-- are not a coincidence, but the consequence of months of hard
work by all Seminis employees to turn this company around,"
emphasized Alfonso Romo, Chairman and Chief Executive Officer.

Eugenio Najera, President and COO, said: "While the company's
performance has been reacting positively for several quarters to
the initiatives taken to return Seminis to profitability, this
progress had not been reflected so evidently in our financials
due to the non-recurring charges taken last year as part of our
Global Optimization and Restructuring Plan."

"We do not expect any more non-recurring charges associated with
our reorganization plan, and from now on results should more
clearly reflect the true income-generating potential of the
company," Mr. Najera predicted. "We anticipate that the same
initiatives that have positively affected results in the past
year will also improve results during upcoming quarters." He
noted that despite the cyclical nature inherent in the seasonal
seed industry, Seminis has historically reported similar revenue
for both the first and second half of its fiscal year.

Results for the three-month period ending March 29, 2002

Net sales for the second quarter were $152.3 million compared to
$151.5 million for the same quarter last year. Excluding divested
non-core business sales of $4.9 million and $0.8 million from the
second quarter of fiscal year 2001 and fiscal year 2002,
respectively, and excluding a $3.2 million negative currency
impact against the U.S. dollar, sales for the second quarter FY
2002 would have increased 5.5% to $154.7 million from $146.6
million during the same period last year.

Gross profit increased to $95.9 million or 62.9% of sales
compared to $92.2 million or 60.8% for the same quarter last
year, partly attributable to a better product mix and $4.4
million of non-cash charges for inventory write-downs taken
during the second quarter of fiscal year 2001 compared to none in
the reported period.

Operating expenses in the reported quarter were reduced by $8.4
million to $58.4 million, compared to $66.8 million for the same
quarter last year, a reduction of 12.6%. The decrease was
primarily attributable to the savings from workforce reductions
following the implementation of the global restructuring and
optimization plan, an elimination of $3.5 million of expenses
incurred in the second quarter of fiscal year 2001 by a non-core
business divested in January 2002, and due to $2.2 million in
goodwill amortization recorded during the second quarter of 2001
compared to none during the period reported.

Operating income in the reported quarter was $37.5 million
compared to $25.4 million for the same quarter last year, an
improvement of 47.6%.

Results for the six-month period ending March 29, 2002

Total sales for the first half of fiscal year 2002 remained
relatively constant at $232.4 million compared with $232.7
million during the same period last year. Nevertheless, adjusted
for this period's $4.9 million negative currency impact, and
excluding sales from discontinued businesses of $7.7 million and
$3.4 million during the first half of fiscal 2001 and 2002,
respectively, sales during the first half of this year would have
increased to $233.9 million, up from $225.2 million last year.
Net seed sales, adjusted for a $4.7 million negative currency
impact, reached $226.5 million during the first six months of
2002, an increase of 3.9% compared to $217.9 million for the same
period of last year.

Gross profit for the first half of fiscal year 2002 increased to
62.7%, from 60.3% during the same period last year, partly due to
the previously stated improvement in product mix and the $4.4
million of non-cash charges for inventory write-downs taken
during the first half of fiscal year 2001.

Total operating expenses for the first six months of the year
2002 were reduced by 10.9% to $118.3 million, from $132.7 million
last year, as a result of initiatives taken as part of the global
restructuring and optimization plan, and due to goodwill
amortization of $4.6 million during the first half of fiscal year
2001 compared to none during the first half of fiscal year 2002.

Operating income for the first half of fiscal year 2002 increased
to $27.3 million, up more than 3.5 times from $7.7 million for
the first six months of last year. The Company also reported net
income of $6.3 million compared to a net loss of $12.0 million
during the first half of fiscal year 2001. Net loss available to
common shareholders was reduced from $20.9 million or $0.35 per
share to $2.9 million, or $0.05 per share. The net loss per
common share is primarily a result of obligations payable to the
Company's preferred shareholders.

Looking back at the last twelve months, Mr. Najera noted the
optimization measures have been successfully implemented to date,
including an effort to reduce costs and improve the company's
cash flow and profitability. For the twelve months ended March
29, 2002, Seminis has generated positive cash flow from
operations of approximately $12.2 million; reduced operating
expenses as a percentage of sales by 9.4%; reduced its days
outstanding for collection of accounts receivables by 14 days,
and reduced its debt by $52.8 million.

"Seminis has passed its turning point, and we believe that the
company will continue to regain momentum as we build a solid
platform to create and capture value throughout the food
production and distribution chain. Our diversified product lines,
multi-regional operations and income from all major currencies
represents a portfolio that minimizes risk to fluctuations in the
global economy, while creating strong fundamentals for balanced
growth." said Mr. Alfonso Romo.

"For the remainder of the fiscal year, we expect that revenues
from continuing operations will be on par with the prior year,
and that the company will continue to show operational and
financial improvements from savings due to the implementation of
the strategic initiatives and its Global Optimization Plan," Mr.
Romo predicted.

About Seminis

Seminis (Nasdaq: SMNS) is the largest developer, producer and
marketer of vegetable seeds in the world. The company uses seeds
as the delivery vehicle for innovative agricultural technology.
Its products are designed to reduce the need for agricultural
chemicals, increase crop yield, reduce spoilage, offer longer
shelf life, create better tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence
and global distribution network that spans 150 countries and
territories. Seminis is a majority-owned subsidiary of Savia
(NYSE: VAI), a leading Mexico-based conglomerate.

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

CONTACT:  SEMINIS INC.
          Enrique Osorio, +1-805-918-2233
          Email: enrique.osorio@seminis.com

          Dieter Holtz, +1-805-918-2201
          Email: dieter.holtz@seminis.com


SURESTE/ANAHUAC/INDUSTRIAL: IPAB Studies Hold Futures In Balance
----------------------------------------------------------------
The Bank Savings Protection Institute (IPAB) will release this
month the results of the technical studies conducted into the
three banks, which have been taken over and controlled by the
financial authorities.

One of the three banks, Banco del Sureste, is said to have a high
chance of surviving and is seen as a potential candidate in the
next auction to be conducted by the IPAB.

The other two government-administered banks, Banco Anahuac and
Banco Industrial, will also keep operating, but do not inspire
great hope because they will probably be liquidated, according to
current opinion.

IPAB and the National Banking and Securities Commission (CNBV)
will decide which bank will be restructured, based on the results
of its studies.

At the close of 2000, Banco del Sureste reportedly lost MXN1.63
billion (US$172 million), Banco Anahuac MXN878 million (US$93
million) and Banco Industrial MXN4.55 billion (US$479 million).

The IPAB, though, has not yet officially acknowledged the
financial needs of the three banks.

Patricio Bustamante, vice president of the CNBV, said that to
date none of the three institutions had received financial aid.
It is obviously important to know which bailout would be the
least costly to the public.



=================
N I C A R A G U A
=================

ENRON: Enel Still Evaluating Hidrogesa Bids, No Deal So Far
-----------------------------------------------------------
Contrary to press reports, Nicaragua's state power company Enel
said it didn't award the Hidrogesa hydroelectric generator to
Enron Nicaragua for US$41.4 million.

Hidrogesa has two plants with total capacity of 100MW.

Reports have it that Enron Nicaragua won a bid for 95 percent
control of the two Nicaraguan plants. However, Enron failed to
provide the required US$2 million guarantee for its bid. As a
result, the two plants were reportedly awarded to U.S. firm
Coastal Power International, runner-up in the original bidding
process with an offer of US$41.2 million. Now, Enron is trying to
contest the decision to sell the two plants to Coastal Power.

However, just recently Enel executive president Mario Montenegro,
announced that the results of the tender process are yet to be
released. According to him, Enel's privatization committee is
still evaluating the bids presented by the three companies that
participated in the process.

The third company, which offered US$34.1 million for the plants,
is Luz y Fuerza de San Lorenzo.

Enron Nicaragua has come under fire in Nicaragua due to its links
to bankrupt US company Enron.

However, Montenegro said Enron Nicaragua, like other Latin
subsidiaries, is independent of the US' Enron. Nicaragua's
industries chamber (Cadin) president Gabriel Pasos said there was
nothing to fear in Enron Nicaragua winning the Hidrogesa award,
because it has nothing to do with Enron International.

Most shares of Enron Nicaragua are in the hands of Central
American investors, Pasos said, adding that although Enron
International has invested in Nicaragua, it does not have the
largest percentage of shares.

"Concerns about corruption are always valid," presidency official
Azucena Castillo said. "Enron has been sanctioned by the US
government. Here we are seeing a transparent tender process, and
any indication of corruption will be dealt with," Castillo said.



=======
P E R U
=======

VOLCAN: Analyst Cautiously Ups to `Hold' Pending Zinc Prices
------------------------------------------------------------
Banco de Credito analyst Omar Farro issued a "hold"
recommendation for Peruvian zinc miner Volcan. Volcan's
recommendation is an upgrade from the previous "reduce" and is
accompanied by a higher earnings forecast for this year to a
profit of US$4.1 million, compared to the previously predicted
loss of US$5.7 million.

The improved performance would be a result of higher sales and a
cost-cutting program.

However, Farro warned that Volcan may need to restructure its
US$154-million debt again if zinc prices do not pick up.



=============
U R U G U A Y
=============

BANCO COMERCIAL: S&P Cuts Ratings; On CreditWatch Developing
------------------------------------------------------------
Rationale

Standard & Poor's lowered its local and foreign currency
counterparty credit and its long-term CD ratings on Banco
Comercial S.A. to single-'B'/'C' from double-'B'-minus/'B'. The
CreditWatch implications were revised to Developing.

The current rating action results from the need to recapitalize
the bank, which stems from the negative effect on its financials
of its direct and indirect exposure to Argentina. Alleged
improper activities carried out at Banco General de Negocios
S.A., an Argentine institution that has been suspended by the
Central Bank of Argentina, also affect the ratings on Banco
Comercial. With total assets of $2.3 billion and equity of $174
million as of Sept. 31, 2001, Banco Comercial is the largest
Uruguayan private-sector bank. It maintains 50 full-service
branches nationwide. The bank is engaged mainly in commercial
banking to individuals and to small and midsize companies. Its
operations are primarily domestic, with about 80% of its loans
and 90% of its deposits to local customers.

Banco Comercial already received $133 million of fresh funds in
equal portions from its foreign shareholders - JPMorganChase
Bank, Credit Suisse First Boston, and Dresdner Bank
Lateinamerika-, and from the Uruguayan government. By means of
this capital injection, the government entered into the bank's
ownership, and is now managing the bank. The magnitude of the
loss is still undetermined, however, and the bank will probably
need further assistance. The shareholders are currently analyzing
the alternatives to recapitalize the bank.

"CreditWatch Developing means that the ratings could be upgraded
if the terms and conditions of the assistance under consideration
restore the bank's capital position. If this does not occur the
ratings could be further downgraded," said credit analyst
Cristian Krossler.

The bank continues to enjoy a strong competitive position as the
country's largest private commercial bank, with a leading market
share among private banks in terms of both total loans and
domestic deposits. Even if it were recapitalized, however, recent
events have damaged the bank's reputation and continuity of
management, which will take time to repair.

Ratings List

Ratings Lowered; on Creditwatch Developing

                               TO    FROM

Counterparty credit ratings    B/C   BB-/B

CDs                            B/C   BB-/B

Senior unsecured debt          B     BB-

Analyst: Cristian Krossler, Buenos Aires (54) 114-891-2100



               ***********


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
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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