TCRLA_Public/020530.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 30, 2002, Vol. 3, Issue 106



ACINDAR: Share Trading Suspended Indefinitely
ARGENTINE BANKS: Minister's Rescue Plan Gets Mixed Reactions
BANCO FRANCES: Authorities Suspect Arson As Bank Fire's Source
EDESUR: Argentine Woes Pull Down Parent's Stock
HSBC ARGENTINA: Parent Rules Out Making Further Provisions

REPSOL YPF: Brazilian Firm Expresses Interest In Acquiring YPF
SCOTIABANK QUILMES: Parent's 2Q01 Strong Despite Argentina
SCOTIABANK QUILMES: Employees Express Skepticism Through Letter
SOCIETE GENERALE: To Remain In Crisis-Ridden Argentina
TELEFONICA DE ARGENTINA: Parent Restructures Top Management


GLOBAL CROSSING: To Propose Company-Sponsored Restructuring Plan
GLOBAL CROSSING: Failed Talks Not Affecting Asia Global Bid
GLOBAL CROSSING: Creditors' Committee See Improved Prospects


VINTO: British Parent Expects Sale to Yield US$24 Million


EMBRAER: Awaits Approval On China-Built Jet Plans
TELEGLOBE: Foreign Units' Fate Unclear Following U.S. Ch. 11


CHIQUITA BRANDS: Management Condemns Recent Strike


AEROMEXICO: ASSA Members To Accept 7-8% Salary Hike
GRUPO ALFA: Nemak Gets US$220M Credit To Extend Debt Maturity
KENWOOD CORP.: Company Profile


URUGUAYAN BANKS: Fitch Cuts After Deposits, Reserves Drop

     - - - - - - - - - -


ACINDAR: Share Trading Suspended Indefinitely
The Buenos Aires Stock Exchange suspended trading in Argentine
steelmaker Acindar SA after the country's crippling recession
left the Company with a negative net worth of about ARS252
million (US$70.9 million), reports Reuters.

Acindar said the Argentine peso's fall of roughly 70 percent
against the dollar since January's botched devaluation had more
than tripled the peso value of its debts held abroad, on which it
defaulted in December.

"The negative net worth isn't really a question of something we
did," said Gustavo Pitaluga, spokesman for Acindar. "This is
something that's going to happen in many companies. The measures
that have been taken have generated enormous problems."

In contrast, the Company reported a net worth of ARS231 million
in the first quarter of 2001.

Meanwhile, Pitaluga said a "phenomenal" slowdown in the local
construction sector due to a near total lack of credit slammed
domestic sales, leading to a loss of ARS383.7 million (US$107.8
million) in the first quarter.

That figure compared to a loss of ARS41.6 million during the
first quarter in 2001, when one peso was still equal to one U.S.
dollar before Argentina's currency peg snapped.

The Buenos Aires bourse suspended trading in Acindar shares late
Monday and it's still not known when the suspension would be

Analysts said the suspension wasn't surprising. Standard & Poor's
pointed out in March that companies would experience
"significantly reduced" or negative net worth due to present
accounting rules. But the problems at Acindar, like those of most
Argentine companies, go beyond accounting rules.

"The situation in Argentina works against the Company. This is an
additional complication," Standard & Poors analyst Marta Castelli

           Jose I. Giraudo, Investor Relations Manager
           Phone: (54 11) 4719 8674

           Andrea Dala
           Investor Relations Officer
           Phone: (54 11) 4719 8672

ARGENTINE BANKS: Minister's Rescue Plan Gets Mixed Reactions
Economy Minister Roberto Lavagna failed to persuade most of
Argentina's bankers to accept government bonds for deposits
frozen for months by much-reviled restrictions on withdrawals.

Argentina's largest commercial banking group, Argentina Banking
Association, or ABA, shunned the proposal.

"The initiatives under consideration don't provide an integral
nor a definitive solution to the problems that today face
depositors, loan customers or banks," Norberto Peruzzotti, ABA
executive director, said in an eight-point statement released

Lavagna's proposal, according to the ABA, "is discriminatory and
unreasonable, because it sets a very dangerous precedent for the
future and will end up depleting banks' capital, complicating
even more the return of deposits to savers."

Members of the ABA include The Bank of Nova Scotia (T.BNS),
Citigroup Inc.  (C), HSBC Holding PLC (HBC), FleetFinancial
(FBF), Santander Central Hispano SA (STD), Grupo Financiero
Galicia SA (GGAL), Banco Bilbao Vizcaya Argentaria SA (E.BBV),
FleetBoston Financial Corp. (FBF), IntesaBCI 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).

The Association of Public and Private Banks (ABAPPRA), meanwhile,
joined Lavagna in signing a statement that called the "recovery
of production levels, employment and income an absolute priority
for Argentina's socio-economic equilibrium and reintegration into
the world economy."

In a document released Sunday, both parties underlined the need
to fix the banking and financial system through "a just and fair
distribution of the losses the crisis has provoked" and providing
"considerable protection of the interests" of account holders
hurt by the banking restrictions.

ABAPPRA, which counts among its members banks whose capital is
mostly Argentine, cooperatives and state-owned entities, also
pledged to "place on the government's shoulders the smallest
burden possible, in terms of fiscal obligations and future debt."

Lavagna's proposal anticipates issuing bonds of varying terms for
the value of at least some of the frozen deposits.

One of the bonds would be payable in dollars within 10 years, but
the economy minister still has not established how they will be
valued in relation to the U.S. dollar. A five-year note is to be
payable in pesos.

A third bond, which could be converted immediately, would be
issued to people over 75 years of age, the handicapped or those
who need to undergo surgery or be hospitalized.

The government program to be made effective through an emergency
decree that Argentine President Eduardo Duhalde is expected to
sign Tuesday.

BANCO FRANCES: Authorities Suspect Arson As Bank Fire's Source
Argentine police confirmed Tuesday that a fire, believed to have
been intentionally set, blazed through BBVA-Banco Frances bank in
Buenos Aires but caused no injuries, EFE relates.

According to the police, some kind of fuel was used to set the
blaze which subsequently prompted an explosion. The resulting
damage destroyed offices and three ATMs, but did not damage the
bank's vault.

A spokesperson for BBVA-Banco Frances said that the bank has not
yet been notified of any motives for the fire.

Argentina's peso devaluation cut Banco Frances reserves by EUR116
million. But its Spanish parent, Banco Bilbao Vizcaya Argentaria
SA (BBVA) said the unit has cash reserves of some EUR450 million,
easily enough, it said, to get through the next few months.

The Spanish parent also said it won't abandon the country even as
Banco Frances runs short of funds.

Banco Frances and other Argentine banks are under pressure to
conserve cash from increased withdrawals by depositors until the
Argentine government safeguards against a run on banks.

          Maria Elena Siburu de Lopez Oliva
          Investor Relations Manager, in Argentina
          Tel. 5411-4341-5035

          Maria Adriana Arbelbide
          Investor Relations
          Tel. 5411-4341-5036

EDESUR: Argentine Woes Pull Down Parent's Stock
Chilean electricity holding company Enersis SA has seen its share
price plummet more than 40 percent so far this year due to its
exposure to the economic and financial crisis in neighboring
Argentina. Enersis owns 67 percent of Buenos Aires-based
electricity distributor Edesur.

Dow Jones reports that Edesur once-dollar-indexed tariffs are now
fixed and charged in devalued Argentine pesos. The Argentine peso
($1=ARS3.51) has lost more than two thirds of its value since the
January devaluation.

Many market participants agree Enersis, which saw its share price
on the Santiago Stock Exchange drop another 3.7 percent Tuesday
to end at CLP105.00 ($1=CLP656.00), should be priced much higher
on fundamentals.

"Markets always tend to overreact to uncertainty," says German
Guerrero, of Chilean asset management firm MBI Servicios

Arturo Curtze, a trader with local private pension fund AFP
Cuprum, estimates that the price, including the impact of the
Argentina crisis, should sit around CLP130.00.

Investment bank Bear Stearns last week upgraded Enersis' stock to
'attractive' from 'neutral,' based principally on the valuation.

"Enersis' market capitalization has lost approximately US$1.24
billion (in the last 12 months), which we believe exceeds the
pre-Argentine devaluation contribution of (Argentine subsidiary)
Edesur to Enersis," the Bear Stearns report said.

Bear Stearns said the maximum book value write down value of
Enersis' investment in Edesur would be US$711 million. But while
the stock has apparently overshot its mark, investors aren't seen
coming in droves to snap it up anytime soon.

In fact, Curtze doesn't rule out the share price falling as far
as CLP90.00 per share. "First off," says Curtze, "problems in
Argentina are by no means over. The troubled government of
President Eduardo Duhalde has yet to secure the political mandate
to implement changes that might renew the country's credit line
with the International Monetary Fund, expected to help put the
economy back on track."

In addition, Enersis' negotiations with the Argentine government
to seek compensation for the devaluation also seem to have hit a
dead end. Citing social unrest, local brokerage Celfin Capital
wrote in a Friday report that it's "unlikely that Edesur will
receive compensation for the devaluation-led dollar decline in
its tariffs."

          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos‚ 140, 3ø P
          Capital Federal 1076
          Home Page:
          Tel.: 4370-3700/4370-3370

          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

HSBC ARGENTINA: Parent Rules Out Making Further Provisions
HSBC Holdings PLC chief executive Keith Whitson said the group
currently has no plans to make further contributions to its
Argentina operations.

"I can't comment on the future as the situation and the
legislation almost change daily but we remain adequately
provided," Whitson told reporters after an informal shareholders'

HSBC provided about US$1.12 billion against its exposure in
Argentina in 2001. He said undoubtedly, the situation in
Argentina remains worrisome, adding that he wishes the monetary
body in the country could provide certain measures to help ease
the currency crisis.

Foreign banks in Argentina are evaluating their options after the
Latin American economy defaulted on its debts last year and then
devalued the currency. Twelve of Argentina's top 20 banks are
foreign-owned and have reported losses of more than $8.5 billion
since the default.

          10 Lower Thames St.
          London EC3R 6AE, United Kingdom
          Phone: +44-020-7260-0500
          Fax: +44-020-7260-0501
          Home Page:
          Sir John R. H. Bond, Group Chairman / Exec. Dir.
          Sir Brian Moffat, Deputy Chairman / Sr. Non-Exec. Dir.
          Keith R. Whitson, Group Chief Executive

          Av. de Mayo 701, Piso 27, (1084)
          Buenos Aires, Argentina
          Tel: 54 11 4 344 3333
          Fax: 54 11 4 334 6679
          Contact: Michael Smith, Chairman and Chief Executive

REPSOL YPF: Brazilian Firm Expresses Interest In Acquiring YPF
Petroleo Brasileiro SA would study the possibility of buying
Repsol YPF SA's Argentine assets if the Spanish oil group decided
to put YPF up for sale, reports newspaper O Estado de Sao Paulo,
citing the Brazilian company's finance director, Joao Nogueira

"We must seize all the opportunities," Batista said, adding that
Argentina is part of Petrobras' expansion strategy.

Repsol YPF SA, Europe's fifth- largest oil company, may sell more
assets in Spain and abroad, as it seeks to reduce debt, analysts

Repsol earned EUR2.01 billion (US$1.8 billion) by selling the Gas
Natural SDG SA stake on May 17, cutting its debt by about 30
percent. Still, Argentina's debt default and plunging currency
may encourage the company to sell smaller assets.

Repsol's earnings slumped, leading to a dividend cut and reduced
investment, after the US$15 billion purchase of Argentine oil
company YPF in 1999 turned sour with the country's four-year
economic slump and plunging currency. The sale of its 23 percent
stake in Spain's top natural-gas utility Gas Natural helps Repsol
pay EUR2.5 billion in debt maturing next month.

"If Argentina continues as it is, I think Repsol will have to
sell more assets, such as in butane, chemicals or marketing,"
said Santiago Molina, an analyst at Ibersecurities SVB.

Repsol sold almost half its stake in Gas Natural after the
Argentine crisis erased about EUR3 billion from 2001 and first-
quarter reserves and profit. Argentina is appealing for an aid
package from the International Monetary Fund to prop up its
economy after defaulting on US$95 billion in debt late last year.

          Paseo de la Castellana 278
          28046 Madrid, Spain
          Phone   +34 91 348 81 00
          Home Page:
          Av. Roque S enz Pe a, 777.
          C.P 1364. Buenos Aires
          Alfonso Cortina De Alcocer, Chairman
          Ramon Blanco Balin, Vice Chairman
          Carmelo De Las Morenas Lopez, CFO

SCOTIABANK QUILMES: Parent's 2Q01 Strong Despite Argentina
Scotiabank reported healthy earnings in the second quarter of
2002 with net income of $598 million, 11% higher than the same
period a year ago. Earnings per share (diluted) were $1.11, an
increase of 10% over the second quarter in 2001. Return on equity
was 18.3% in the second quarter, up from the 17.9% recorded last

For the six-month period ended April 30, 2002, net income was
$650 million, down $399 million, compared to the same period last
year. Earnings per share (diluted) were $1.16, versus $1.96, and
return on equity was 9.4% compared to 17.4% in 2001. Excluding
charges(1) of $540 million (after tax) in the first quarter
related to Argentina, net income for the six-month period was
$1,190 million, up from $1,049 million. Earnings per share
(diluted) were $2.21 compared with $1.96 and ROE was 17.5% versus

"The quarter was marked by double-digit increases in both net
income and earnings per share. This growth was attributable to
our first-rate execution and an unwavering focus on customer
satisfaction," said Peter Godsoe, Chairman and CEO.

"Despite our solid results, we currently face two major
challenges. The first is the unprecedented and tragic situation
in Argentina. We are only too aware of the extremely difficult
personal situations Argentines, including Scotiabank Quilmes
employees, are facing. Quilmes continues to work cooperatively
with the Argentine authorities to explore all options in order to
safeguard the interests of depositors, creditors and employees."

"The second challenge -- faced by the entire banking industry --
relates to the uneven credit conditions in certain sectors
created by the economic slowdown. In response, we are continuing
to manage our credit portfolios very closely."

Scotiabank Management comments on the situation in Argentina:

Argentina continues to suffer through an economic and political
crisis that has resulted in significant negative consequences to
the economy, including the financial sector. In late April,
Argentine authorities temporarily suspended the operations of
Scotiabank Quilmes following the Argentine Central Bank's
decision not to provide additional liquidity to Quilmes.

In the second quarter of 2002, on a consolidated basis, these
operations had minimal impact on the Bank's net income. This
compares to charges of $540 million (after-tax) recorded last
quarter. As well, the 47% devaluation of the Argentine peso
resulted in a quarter-over-quarter decline in Scotiabank
Quilmes's assets of $1 billion to $1.8 billion. We believe that
the provisions established to date are adequate to cover probable
losses. Given the uncertain economic and financial environment,
we continue to mo ratio was 13.4% compared to 12.5% last year and
12.7% in the previous quarter.

Selected Argentina-related financial results include:

International Banking
                         For the three             For the six
                         months ended             months ended
($ millions)      April   January     April     April     April
(Tax-equivalent    30        31        30        30        30
basis)           2002      2002      2001      2002      2001
Net interest income$553     $594      $537     $1,147     $905
Provision for
credit losses      (14)     (525)      (43)     (539)      (93)
Other income        190        93       190       283       326
Non-interest expenses(489)   (510)     (427)     (999)     (710)
Provision for
income taxes       (57)       17       (82)      (40)     (124)
interest in net
income of
subsidiaries       (33)      (34)      (26)      (67)      (40)
Net income         $150      $(365)(1)  $149      $(215)(1) $264
Average assets
($ billions)      $60       $60         $51       $60       $42
Return on equity   18.9%  (47.0)%(1)   23.0%  (14.7)%(1)   21.1%

(1) Excluding charges of $540 (after tax) related to Argentina,
earnings for the three months ended January 31, 2002, were $175,
(for the six months ended April 30, 2002, $325) and return on
equity for the three months ended January 31, 2002, was 21.4%
(for the six months ended April 30, 2002, 19.8%).

                        For the three             For the six
                        months ended             months ended
                 April   January     April     April     April
(Unaudited)        30        31        30        30        30
($ millions)     2002      2002      2001      2002      2001
Net interest
income(2)       $(166)    $(154)    $(135)    $(320)     $(263)
Provision for
credit losses       5         5       (87)       10       (75)
Other income       183        62       139       245       312
Non-interest expenses(4)       7        (1)        3       (29)
Provision for
income taxes(2)    65        81        67       146        90
Non-controlling interest
in net income of
subsidiaries       (9)       (9)       (8)      (18)      (18)

Net income       $74       $  (8)    $ (25)    $  66       $17
Average assets
($ billions)    $24       $ 26      $  20     $  24       $20
(1) Includes all other smaller operating segments and corporate
adjustments, such as the elimination of the tax-exempt income
gross- up reported in net interest income and provision for
income taxes, increases in the general provision, differences in
the actual amount of costs incurred and charged to the operating
segments, and the impact of securitizations.

(2) Includes the elimination of the tax-exempt income gross-up
reported in net interest income and provision for income taxes
for the three months ended April 30, 2002 ($67), January 31, 2002
($62) and April 30, 2001 ($49), and for the six months ended
April 30, 2002 ($129) and April 30, 2001 ($103).

                        For the three             For the six
                        months ended             months ended
                 April   January     April     April     April
(Unaudited)       30        31        30        30        30
($ millions)    2002      2002      2001      2002      2001
Net interest
income         $1,645    $1,734    $1,535    $3,379    $2,904
Provision for
credit losses    (350)     (850)     (350)   (1,200)     (750)
Other income     1,058       869     1,014     1,927     2,028
expenses       (1,505)   (1,512)   (1,394)   (3,017)   (2,654)
Provision for
income taxes     (208)     (146)     (232)     (354)     (421)
Non-controlling interest
in net income of
subsidiaries      (42)      (43)      (34)      (85)      (58)
Net income      $598      $52       $539      $650      $1,049
Average assets
($ billions)   $300      $296      $278      $298      $ 266
Return on equity  18.3%      0.8%     17.9%      9.4%     17.4%

4.  Argentina

During the first quarter of 2002, the Bank recorded charges of
$540 million (after tax) related to Argentina. These arose from
the significant political and economic upheaval, as well as
ongoing regulatory changes, in Argentina and consideration of the
impact on the Bank's Argentine exposures. These charges, detailed
below, continue to represent management's best estimate of the
probable losses based upon information available to date.


Cross-border exposures
The cross-border exposures to Argentina as at April 30, 2002, are
as follows:

    (Unaudited) ($ millions)
Balances before provisions(1)
Brady bonds                                $    117
Trade/Interbank                                 114
Corporate/Other(2)                              462
Scotiabank Quilmes - carrying value(3)           92
Total provisions(1)(3)(4)                        466
Net cross-border exposure(                  $    319
(1) The balances as at April 30, 2002, reflect the effect of the
pesofication and other write-downs in Q1, 2002 (pesofication
refers to the impact of converting U.S. dollar-denominated assets
and liabilities to Argentine pesos at different and non-market
rates, as mandated by the Argentine government).

(2) Includes intercompany exposures of $283.

(3) Both the carrying value of Scotiabank Quilmes and the total
provisions were further reduced by the 47% devaluation of the
Argentine peso in Q2, 2002.

(4) Includes $78 from the devaluation of the Argentine peso,
which was credited to retained earnings in Q2, 2002.

(5) The net cross-border exposure as at January 31, 2002 was

Net impaired loans

Argentine net impaired loans fell quarter-over-quarter primarily
due to the 47% devaluation of the Argentine peso, as detailed

                                                        As at
                                                April   January
                                                 30        31
(Unaudited) ($ millions)                        2002      2002
Gross impaired loans                        $    777  $  1,130
    Allowance for credit losses                  445       655
Net impaired loans                          $    332  $    475

Summary of charges

Information on the charges recorded in prior periods against the
Bank's operations in Scotiabank Quilmes and against cross-border
risk assets, are provided in the following table:
                                       For the
                                         three   For the
                                        months      year
                                         ended     ended
                                       January   October
                                          31        31
(Unaudited) ($ millions)                 2002      2001     Total

Provision for credit losses          $  500(1) $     50  $    550
Other income:
Loss on securities                         20        40        60
Other                                    87(2)       10        97
                                         607       100       707
Provision for income taxes               (67)      (38)     (105)
Total                               $    540  $     62  $    602

(1) Includes $313 for Scotiabank Quilmes and $187 related to the
Bank's cross-border loans.

(2) This charge occurred from pesofication.

Scotiabank's results for Q1, 2002 included charges of $540
million (after tax) to take into account the extraordinary
political and economic crisis in Argentina and the effect that
this had on the Bank's exposures related to Argentina. Management
believes that analysis of the Bank's performance is enhanced by
the exclusion of these charges because of their aggregate size
and nature. This approach identifies underlying earnings and
provides for more meaningful comparisons of year-over-year and
quarter-over-quarter results. However, securities regulators
require that corporations advise readers that earnings have been
adjusted from those reported under generally accepted accounting
principles, and therefore may not be comparable to underlying
earnings measures used by other companies.

Transfer Agent:
        Computershare Trust Company of Canada
        100 University Ave., 9th Floor
        Toronto, Ontario, Canada M5J 2Y1
        Telephone: (416) 981-9633; 1-800-663-9097
        Fax: (416) 981-9507

Financial analysts, portfolio managers and other investors
requiring financial information, please contact Investor
Relations, Finance Department:

        Scotia Plaza
        44 King Street West, Toronto, Ontario,
        Canada M5H 1H1
        Telephone: (416) 866-5982
        Fax: (416) 866-7867

For other information and for media inquiries, please contact the
Public and Corporate Affairs Department at the above address.
        Telephone: (416) 866-3925
        Fax: (416) 866-4988

The Bank of Nova Scotia is incorporated in Canada with limited

          Sabi Marwah, Senior Executive Vice-President
          and Chief Financial Officer, (416) 866-6808;

          Kevin Harraher, Vice-President, Investor Relations,
          (416) 866-5982; Diane Flanagan, Scotiabank Public
          Affairs, (416) 866-6806 (BNS.)

SCOTIABANK QUILMES: Employees Express Skepticism Through Letter
This letter is written on behalf of most, if not all of the
approximately 1,800 employees of Scotiabank-Quilmes (the "Bank").
The purpose of this letter is to assure your awareness of our
collective fears and to elicit your commitment to a responsible
and ethical response to those fears.

Like the general public, we recently became aware of the apparent
decision of Bank of Nova Scotia ("BNS") to discontinue operations
in Argentina. Most of us are able to understand the economic
motives of this decision. BNS is a for-profit entity that owes a
duty to its shareholders to maximize profits.

Nonetheless, we are hurt and surprised by the tenor of public
statements that BNS will not contribute further capital to the
Bank. Should BNS stand by this decision, depositors, employees,
and all other creditors will be left with claims against a
bankrupt entity. Leaving aside the obligations to depositors
(many of whom are also employees), the refusal to fund the Bank's
obligations means we, as employees, are unlikely to receive
payment, or at least full payment, of our severance claims.

The Argentine economy is not like that of Canada or other
countries where a fluid job market is quick to absorb talented
and experienced people. Nor, unlike other systems, does the
Argentine government offer its people unemployment insurance or
adequate social security. These protections have been, rightly or
wrongly, shifted to the private sector in the form of mandatory
severance pay. It is the only means that we, as employees,
receive minimum protection against the hardship of unemployment.
BNS knew these facts at the time of its investment.

As you are aware, the country is suffering its worst economic
crisis in history. Many, if not most, individuals that lose their
jobs today will not find work. The fortunate will find jobs that,
only a few years ago, they would have rejected out of hand as a
step down. Today, almost any job offers at least the promise of
keeping food on the table, the children clothed, the mortgage
payment out of default. It is not unreasonable to ask BNS to
understand that its decision to refuse to fund the Bank's payment
of employee severance claims is to condemn us to personal
financial ruin.

We do not here pretend to speak to any legal obligation to fund
the Bank. Rather, we are prompted by an ethical claim. We have
always understood that the Bank and its controlling shareholder
emphasized commitments to corporate responsibility and ethics.
Indeed, each of us, as employees of the Bank were required to
adhere to a reciprocal code of ethics. A decision to not
adequately capitalize the Bank to pay claims during its
liquidation would, in our opinion, breach these ethical

In evaluating a response to our plea, we ask that you consider
that we, as employees, did everything possible to contribute to
the Bank's profitability, growth, and image as a trustworthy and
ethical institution over the last decade.

Thank you for your attention to our concerns. We look forward to
receiving a response that provides us with hope that an ethical
and responsible solution is forthcoming.


SOCIETE GENERALE: To Remain In Crisis-Ridden Argentina
Despite recent losses and Argentina's ongoing financial crisis,
French bank Societe Generale SA plans to stay in the country and
continue to capitalize its unit there, two executives said

So far this year, Societe Generale has added US$30 million in new
funds and plans to add to that total in "the next few weeks,"
said Marc Emmanuel Vives, president of the bank's Argentina unit.

"We have been here for more than 60 years .... we are not going
to leave with the first crisis that comes along," said Jean Louis
Mattei, head of the French bank.

The brave move comes amid analysts' prediction that the financial
system in the country is on the brink of collapse after a four-
year recession, a freeze of bank deposits and a messy devaluation
of the peso in January.

Last year, Societe Generale took provisions of EUR346 million to
cover its losses in Argentina. The amount, according to the bank,
was three times the net asset value of its investment in the

Societe Generale has reduced its exposure by around 20 percent
since the end of last year. The bank has a retail banking
business of some 60 branches in and around Buenos Aires and a
corporate banking division, which has a total exposure of around
EUR800 million.

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          Phone: +33-1-42-14-20-00
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          Home Page:
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          Carole Noel, Investor Relations Assistant

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          Private Investors: Oscar Donato

TELEFONICA DE ARGENTINA: Parent Restructures Top Management
Due to the uncertainty generated in some of its units by the
Argentine crisis and the global economic slowdown, Telefonica SA
plans to restructure its top management. According to a report
released by AFX, the Spanish firm will be reducing its executive
committee to eight members from 16, and will reorganize it into
two business areas.

Telefonica chairman Cesar Alierta is expected to take direct
control of the group's "horizontal areas" such as the legal,
financial and contents divisions.

CEO Fernando Abril will take control of the "vertical areas,"
such as its wireless operations or the groups fixed-line

With these measures, Alierta plans to exercise a more direct
control over the day-to-day running of the group. Telefonica
controls Argentine telecom company Telefonica de Argentina.

The unit recently announced it would offer US$100 million new
bonds to roll over its current outstanding debts, as it
struggles to maintain sufficient liquidity amid the present
recession in Argentina.

According to a recent research conducted by Standard & Poor's,
Telefonica de Argentina has US$100 million worth of bonds
maturing in July, part of the US$1.1 billion in debts to be
retired this year.  About US$900 million of this obligation is
owed to parent Telefonica SA.

S&P rates the Argentine unit "selective default."

However, another report claimed that, instead of bonds, the
Argentine company is offering US$150 per each 1,000 of capital
in exchange for postponing the maturity to 2006, with the option
to sell by 2004.  The rate of interest, though, remains at 9.87

Telefonica de Argentina is still reeling from the decision by
President Eduardo Duhalde early this year to drop the peg that
tied the peso one-to-one to the dollar and the government's move
to scrap the dollar-based tariffs for phone services.

The monetary policy actions took a heavy toll on Telefonica de
Argentina, which reported first-quarter losses of ARS2.48
billion compared with a profit of US$44 million a year ago.

The Argentine company's total debt hovers at US$1.8 billion, of
which US$800 million are in bonds.  About US$400 million of
debts will come due later this year and another US$400 million
on May 7, 2008.

           Tucuman 1, 18th Floor, 1049
           Buenos Aires, Argentina
           Phone: (212) 688-6840
           Home Page:
           Carlos Fernandez-Prida Mendez Nunez, Chairman
           Paul Burton Savoldelli, Vice Chairman
           Fernando Raul Borio, Secretary


GLOBAL CROSSING: To Propose Company-Sponsored Restructuring Plan

To Creditors
- Company-sponsored plan seen as a viable alternative to deliver
maximum value to creditors.
- Advanced cost restructuring and business turn-around seen as
leading indicator of future potential.
- Bids for the purchase of Global Marine Systems, UK national
business, and conferencing businesses are being evaluated.
- Management to work with investors interested in a consortium

Global Crossing announced Tuesday that it is preparing a company-
sponsored restructuring plan as an alternative to bids it
anticipates receiving from independent investors next month.

John Legere, chief executive of Global Crossing stated, "Our
proven ability to meet the financial and operating targets in the
business plan we presented to the creditors' committee has given
Global Crossing restructuring alternatives that were not
available to us when we approached a Chapter 11 filing.  We
believe that it is now entirely feasible to fund a restructuring
plan through asset sales and through a smaller equity investment
than originally anticipated."

Mr. Legere continued, "Global Crossing continues to meet its
targets.  We have successfully and aggressively managed cash,
reduced costs, and improved margins and have done so without
compromising quality or service.  An overwhelming majority of our
customer base remains loyal, and our employees have kept their
spirits high.  That, coupled with intensifying investor interest
in the assets we have identified for possible disposition --
Global Marine, the UK national business and the conferencing
division -- we believe bolsters the view of our creditors that
the value of the company is greater than the original offer made
by Hutchison Whampoa Ltd. and Singapore Technologies Telemedia
Pte. Ltd.  The new business plan we have implemented creates
significantly greater enterprise value than our constituents may
have previously realized."

A company-sponsored plan is one of several possible alternatives
being considered by Global Crossing, which continues to work
cooperatively with the creditors' committee, banks and potential
investors as the restructuring process moves forward in order to
maximize value.


"We are persuaded, particularly given the leading indicators of a
turn-around that began last October and that continues on target,
that our plan will deliver significant value to our creditors,
customers, and employees," Mr. Legere said.  "We said we would
aggressively restructure costs and manage cash without
compromising customer service or network performance -- and we
did it.  As the global telecommunications industry continues to
struggle with an uncertain economy, temporary but significant
slowdown in growth of demand, significant debt, and the
imperative to restructure operating and capital costs -- we are
moving forward and keeping our commitments."

"We hit the mark on every major metric," Mr. Legere
continued.  "This includes controlling our cash -- which
continues to fluctuate very little as we move into our fifth
month of the restructuring process -- and we delivered revenue,
reduced costs dramatically, served customers, worked with our
suppliers, and kept employee morale high."

Earlier this month, Global Crossing announced that it had hit the
key first quarter targets contained in the business plan
presented to the creditors.  For continuing operations in the
first quarter of 2002, Global Crossing said in an announcement
earlier this month that it expects to report consolidated revenue
of approximately $788 million, including service revenue of
approximately $754 million.  Excluding Asia Global Crossing and
reflecting certain eliminations and adjustments, these amounts
were approximately $768 million for revenue and $736 million for
service revenue.  Figures are for continuing operations and
exclude Global Marine.  (These figures should be read in
conjunction with the Notes appearing below).

In addition, Global Crossing says it has clearly demonstrated
strong cash management controls during the case period. The
Company points to the small change in its cash in bank balances
since filing on January 28, 2002 in support of its
position.  Upon entering Bankruptcy, Global Crossing's bank
accounts contained approximately $965 million.  This amount had
only decreased to $919 million at the end of March and only
another $6 million during April to an April 30 cash in bank
amount of $913 million.  All of these amounts exclude the cash
held in Asia Global Crossing bank accounts.  Excluding the
discontinued operations of Global Marine the January 28, March 31
and April 30 cash in bank amounts would be $871 million, $854
million and $856 million, respectively.

Cost reductions already implemented include:

-- Voluntary and involuntary layoffs which, in aggregate,
resulted in a total current headcount of 5,000 compared to over
13,500 at the beginning of 2001;

-- Office consolidations estimated to save Global Crossing over
$100 million in 2002; 217 offices are expected close by year-end,
effecting ongoing annualized savings of approximately $121
million; and,

-- Numerous cutbacks on travel, non-core systems, administrative
expenses, and other miscellaneous expenses.

These initiatives are expected to enable Global Crossing
(excluding Asia Global Crossing) to cut operating expenses by 42
percent to approximately $900 million in 2002, as compared to
$1,550 million reported in 2001.  Global Crossing forecasts the
annual run-rate for operating expense to come in at approximately
$720 million by the end of 2002.

Capital expense, again excluding Asia Global Crossing, is
forecast to run under $200 million this year, versus $3.2 billion
spent in 2001, primarily because the global backbone network
construction has been completed.


Over the last several months, Global Crossing has been actively
marketing certain non-core businesses including Global Marine
Systems, the conferencing division and the national network in
the United Kingdom.  Sale of these assets would maximize cash
without diminishing the value of Global Crossing's core business
-- providing high quality voice and data services to more than
200 of the world's top business cities.

With a customer base that includes over 60% of the Fortune 100
companies, the conferencing unit is a leader in its market.
Efforts to re-establish this division as an independent operating
unit are already well underway, making the business fundamentally
more flexible and efficient, as well as a more attractive
prospect for either strategic or financial buyers.  The
conferencing division offers a portfolio of state-of-the-art
conferencing services including video, audio, and Web

Global Crossing continues to work with parties who have expressed
interest in the UK national network services business Global
Crossing acquired from Racal Telecom in 1999.  The UK network,
which includes approximately 8,000 route kilometers of fiber and
reaches more than 2,000 cities and towns, delivers managed data
services to government and commercial customers.  Global Crossing
would retain all core UK assets essential to its strategy as a
global data communications service provider.

Detailed due diligence with potential investors who have
expressed interest in Global Marine Systems division also
continues.  Global Marine is one of the largest companies in the
world providing submarine fiber optic cable installation and
maintenance service to many global telecommunications companies,
including Global Crossing.


Mr. Legere went on to explain that customers have been very
supportive, despite the uncertainty Global Crossing has
faced.  "At the end of the day," Mr. Legere noted, "this is a
service business -- a people business -- and when customers see
our team driving forward with a tremendous desire to win and to
serve them, they stick with us."

As announced earlier this month Global Crossing in 2002 has

-- Announced a number of new customers including network service
agreements with Agnostic Media, Club Med, Washingtonpost-Newsweek
Interactive, Jabil Circuit, NBC News Channel, DANTE, and Nextel

-- Signed renewal contracts during the first quarter with key
global customers including Techtel, Radiant, OPEX and CNBC

-- Signed 475 new contracts and renewals;

-- Maintained its customer base, with retention levels better
than anticipated in the business plan provided to creditors;

-- Logged a record 4 billion voice minutes per month, with 900
million running over its Voice over IP network, largely
considered the most extensive and robust commercial VoIP network
in the world;

-- Helped a customer set the world's "land speed record" for IP
performance as measured by Internet2, a consortium of over
190 universities working in partnership with industry and
government to develop and deploy advanced network applications
and technologies.

"When the economy rebounds and the demand for high capacity data
networks revives, we believe Global Crossing will be
extraordinarily well-positioned to compete and, in fact, lead in
this next important era in our industry.  While the economy has
softened, and demand growth has slowed, the promise of high-speed
global data networks has not gone away," Mr. Legere said.  "While
we are approaching the future and our forecasts pragmatically, we
are as passionate about our business, our network and the value
we bring to customers as we ever were.  We believe investors
recognize this and are excited about participating in this next
chapter of industry growth."


"We've got a company that is transforming itself rapidly into a
lean, viable competitor that sets new standards for cost-
effective, high quality operation," Mr. Legere said.  "We've got
world-class employees, and we've got an unmatched network.  These
are powerful inducements for the potential investors we're
working with."

All bids to invest in Global Crossing are currently due by June
20.  If there are multiple bids, an auction is scheduled for July
8.  The court is scheduled to approve the winning bid on July 11.


The estimates of revenue, service revenue and cash balances are
preliminary and unaudited and have not been reviewed by Global
Crossing's independent public accountants.  On April 2, 2002
Global Crossing announced that the filing with the SEC of its
2001 Annual Report on Form 10-K would be delayed pending
investigations by a special committee of its board of directors,
by the SEC and by the U.S. Attorney's Office for the Central
District of California into allegations regarding Global
Crossing's accounting and financial reporting practices made by a
former employee.  Among these allegations are claims that Global
Crossing's accounting for purchases and sales of fiber optic
capacity and services with its carrier customers has not complied
with GAAP.  Until it prepares its 2001 financial statements,
completes the related Form 10-K disclosures and receives an audit
report, Global Crossing will be unable to file its 2001 Annual
Report on Form 10-K or to file subsequent quarterly reports on
Form 10-Q.

"Service revenue" refers to Revenue less (i) revenue recognized
immediately for circuit activations that qualified as sales-type
leases and (ii) revenue recognized due to the amortization of
IRUs sold in prior periods and not recognized as sales-type

On January 28, 2002, certain companies in the Global Crossing
Group (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.

          Press Contacts
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          +1 973-410-8820

          Becky Yeamans
          + 1 973-410-5857

          Tisha Kresler
          + 1 973-410-8666

          Kevin Burgoyne
          Latin America
          + 1 305-808-5947

          Mish Desmidt
          +44 (0) 7771-668438

          Ken Simril
          + 1 310-385-3838

GLOBAL CROSSING: Failed Talks Not Affecting Asia Global Bid
Hutchison Whampoa managing director Canning Fok said failed talks
on the purchase of Global Crossing would not affect the company's
decision to acquire Asia Global Crossing. Mr. Fok says his
company has sufficient money to fund its acquisition of the Asia
Global, reports the HongKong iMail.

Hutchison was one of many bidders for Asia Global Crossing, a
58.9%-owned subsidiary of Global Crossing, lured by its 40,000-
kilometre network of undersea cables linking eight Asian
countries to the US West coast.

A Tuesday report of the M&A Reporter Asia Pacific said that
Hutchison, along with Singapore Technologies Telemedia (STT),
last weekend ended talks to buy the bankrupt telecommunications
company after failing to agree on a price after four months of

Declining to comment on whether the company would bid in the
auctioning of Global Crossing's assets in July, Fok said he was
feeling good that the talks had finished.

Hutchison, being a creditor of Global Crossing, had agreed not to
receive any compensation for surrendering US$400 million of
preferred stock it bought in January 2000.

Hutchison said in April it had agreed to pay US$120 million for a
50% stake in Hutchison Global Crossing, a 42.5% stake in ESD
Services and a 50% stake in Hutchison Globalcenter, making them
fully-owned units. Hutchison Global Crossing operates a cable
network in Hong Kong. ESD Services is an e-commerce operation
that provides an Internet platform for the government, while
Globalcenter offers data centre services.

GLOBAL CROSSING: Creditors' Committee See Improved Prospects
Global Crossing's Official Creditors' Committee says that the
recent end of stalking horse negotiations with Hutchison Whampoa
("Hutchison") and Singapore Technologies Telemedia ("STT")
reflects improving prospects for a successful reorganization of
Global Crossing.

Committee counsel, Edward Weisfelner of Brown Rudnick Berlack
Israels LLP, noted that: "Circumstances have changed
substantially since Global Crossing entered into a letter of
intent with Hutchison and STT back in January, 2002. Global
Crossing management is successfully implementing an operating
plan aimed at dramatically reducing costs and maximizing the
long-term value of the company's global network. Since the
initial chapter 11 filing, we've seen the development of a robust
auction process that is attracting considerable interest from
prospective purchasers and investors. These factors, together
with the viability of a stand-alone restructuring option that, in
our view, would permit Global to emerge from these proceedings
with its core global network intact, and owned by its creditors,
significantly diminished the need for a stalking horse bidder."

Weisfelner further noted that, "The Committee respects the
serious effort made by Hutchison/STT to reach agreement on
definitive stalking horse documentation, and would welcome their
continued participation in the auction process. Nevertheless, as
we have said previously on many occasions, the economics of the
Hutchison/STT offer were simply inadequate. The diminished need
for a stalking horse, combined with the inadequacy of the bid,
made it extremely difficult for creditors to get comfortable with
conferring stalking horse status, and the substantial break-up
fees that entails, on the Hutchison/STT bid."

Russell Belinsky, Senior Managing Director of Chanin Capital
Partners, the Committee's financial advisors, commented that,
"The auction process set in motion in March, 2002 was designed
with flexibility so as to enable creditors to explore multiple
options, including a stand-alone plan. At this point, all of the
numbers strongly suggest that creditors may maximize their
recoveries by selling non-core assets, retaining the company's
global network, and recapitalizing. Looking ahead, the stand-
alone plan is an option receiving serious consideration against
which any proposals for a sale of the entire company will have to
be measured."

The Official Creditors' Committee, comprised of bondholders and
trade creditors, represents unsecured creditors of Global

          Edward Weisfelner, 212/704-0100


VINTO: British Parent Expects Sale to Yield US$24 Million
Britain's RBG Resources, a metal exchange brokerage, expects to
sell its Bolivian smelting company Vinto for US$24 million to
another Multinational company.

The price includes the multinational firm's rights to manage the
Huanuni tin mine, whose workers went on strike almost a month ago
over a pay dispute. The sale, which RBG Resources is trying to
complete, comes while the Company liquidates in London.

The British company purchased Vinto from the Bolivian government
in 1999 for US$14.7 million and has operated Huanuni under a
joint-venture agreement since 2000.

RBG executive Ronald Schwarz said Vinto's workers had agreed to
the sale, as well as a production target of 16,000 metric tons
(17,630 tons) in 2002.

          105 Picadilly
          W1J 7NJ
          Phone: 020 7491 7477
          Fax: 020 7491 7577

          (Vinto Foundry Company)
          Superintendente de Adquisiciones
          Casilla 612
          Phone: 5273091
          Fax: 5278024


EMBRAER: Awaits Approval On China-Built Jet Plans
Brazil's Empresa Brasileira de Aeronautica SA (Embraer), the
world's fourth-biggest commercial aircraft maker, is awaiting
approval from the Chinese government to make its ERJ 145 regional
jet in China.

According to a report in an O Estado de S. Paulo newspaper,
Mauricio Botelho, Embraer's president, said that the Brazilian
company plans to build the 50-seat jet in China as part of a
joint venture with Chinese state-run aerospace company AVIC II.

Embraer will have a 51 percent share in the joint venture.

The tax burden of smaller jets sold to China raises import costs
by as much as 24 percent.  The difference means Ambraer loses
competitiveness compared with bigger jets made by Boeing Co. and
Airbus SAS, according to Mr. Botelho.

Embraer estimates China will account for half the 500 regional
jetliner sales in Asia during the next decade as the domestic
aviation industry expands.

The Brazilian aircraft manufacturer has seen its earnings suffer
from the effects of September 11, with first quarter net income
down by 19 percent to BRL176.4 million (US$70 million), or 25
centavos a share, from BRL218.7 million, or 40 centavos, in the
same period a year earlier.

Accounts receivable continued to increase, a sign that the
Company still is struggling to turn orders into income. Accounts
receivable in the first quarter jumped to BRL1.77 billion from
BRL1.56 billion at the end of the fourth quarter. Since
September, Embraer has been assisting some clients to finance
aircraft orders.

Net revenue during the first quarter also fell 13 percent to
BRL1.33 billion from BRL1.52 billion in the same period a year
earlier, the Company revealed.

However, Embraer saw an improvement in its net cash at the end of
the first quarter. At March 31, net cash position was at BRL89.4
million, compared with negative BRL52.9 million at December 31.

Nonetheless, earnings before interest, taxes, depreciation and
amortization, (EBITDA) -- a measure of Embraer's ability to
generate cash -- fell to BRL302 million from BRL465.3 million a
year earlier.

           Press office:
           Phone +55 12 3927 1311
           Fax + 55 12 3927 2411
           Press office mgr. Bob Sharp
           Press officer Wagner Gonzalez

TELEGLOBE: Foreign Units' Fate Unclear Following U.S. Ch. 11
Teleglobe Inc. announced Tuesday that its U.S. subsidiaries have
filed voluntary petitions for reorganization under chapter 11 of
the U.S. Bankruptcy Code in the United States Bankruptcy Court in

This step was taken in order to provide protection for the U.S.
subsidiaries similar to that previously obtained for Teleglobe
companies through their previous filings in Canada and the U.K.
In addition, Teleglobe continues to evaluate whether a
reorganization of its other foreign subsidiaries is appropriate.

Teleglobe has assets in Argentina, Brazil, Chile, Colombia, El
Salvador, Guatemala, Mexico and Panama.

"Teleglobe is moving forward with its reorganization strategy,
which is based on our renewed focus on our core voice and related
data operations," John Brunette, Teleglobe's CEO said Tuesday.
"Today's filing is another step in that process, through which we
intend to continue to provide a high level of service to our

Teleglobe, a unit of Montreal-based telecom holding company BCE
Inc., is grappling with about US$2.5 billion of bank and bond
debt, and its financial woes deepened in April when BCE said it
would no longer provide Teleglobe with long-term funding.

Teleglobe's U.S. unit, Teleglobe Communications Corp., and 10
other affiliates, including Teleglobe USA Inc., Optel
Telecommunications Inc. and Teleglobe Holding Corp., filed
Chapter 11 petitions in U.S. Bankruptcy Court in Wilmington, Del.

Teleglobe's Canadian court-appointed monitor, Ernst & Young Inc.,
also filed with the U.S. court a motion seeking a temporary
restraining order, preventing creditors from taking any action
against its assets.

Teleglobe late Friday received a preliminary injunction to
protect the Company's Canadian entities against creditors in the
U.S., but the U.S. court that granted the injunction said it
didn't have jurisdiction to grant an injunction for Teleglobe's
U.S. units.

          Philip Koven, NATIONAL Public Relations, (416) 848-1627

          ERNST & YOUND LLP
          Greenville 75 Beattie Place
          Suite 800
          Greenville, SC 29601
          Phone: (864) 242-5740


             Carlos Pellegrini 1163 Piso 4
             Buenos Aires, Argentina C1009ABW
             Telephone: 54.11.6310.0100
             Facsimile: 54.11.6310.0101

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

             World Trade Center
             Ave. Nueva Tajamar 481
             Torre Sur - Ofic. 1002 - Las Condes
             Santiago, Chile
             Telephone: 562.350.4260

             Calle 114 N*9-45 torre B, Of. 1008
             Teleport Business Park
             Santa Fe de Bogota
             Telephone: 571.657.9000
             Facsimile: 571.629.2897

             EL SALVADOR
             91 Ave Norte #626
             Colonia Escalon
             San Salvador, El Salvador
             Telephone: 503.263.4836
             Facsimile: 503.263.2466

             12 Calle / 1-25 / Zona 10
             Edificio Geminis 10
             Torre Norte - Oficina 611
             Guatemala City, Guatemala 01010
             Telephone: 502.335.3217
             Facsimile: 502.335.3221

             Blvd. Manuel A. Camacho 36, 21st floor
             Torre Esmeralda II
             Col. Lomas de Chapultepec
             11000 M,xico, D.F.
             Telephone: 52.55.5095.5900
             Facsimile: 52.55.5095.5928

             Edif. Plaza Obarrio - Of. 302
             Av. Samuel Lewis
             Panama City
             Telephone: 507.265.1329
             Facsimile: 507.265.7913


CHIQUITA BRANDS: Management Condemns Recent Strike
A strike lodged by some 2,000 banana workers at Chiquita Brands
International Inc.'s 10 plantations along Honduras' Atlantic
coast was "illegal" and "unfortunate," said a spokeswoman of the
fruit producer.

"Our workers in the Honduras division took an unexpected illegal
strike yesterday that we hope will be resolved quickly," Chiquita
spokeswoman Magnes Welsh said Tuesday.

"It's unfortunate that the union took this action without
providing the company a formal list of grievances," she said.

Chiquita said government ministers plan to meet with the Company
and the union on Wednesday.

The workers walked out at Chiquita's Honduras unit in protest
against the use of a pesticide in packaging and alleged contract
violations, banana workers union leader Oscar Amaya said.

Workers are reportedly pressuring the Company to provide housing,
health care and schools for their families, increase salaries by
10 percent, and rehire workers who were recently laid off.

According to Amaya, the strike, which shut down operations at the
Tela Railroad Co., a Chiquita subsidiary, will continue
indefinitely until the workers' demands are met.

The Company said Honduras currently represents 6 percent of its
total worldwide banana volume. According to the Company's 10-K
statement for 2001 filed with the U.S. Securities and Exchange
Commission, Honduras produced between 9 percent and 17 percent of
the bananas sold by Chiquita last year.

Chiquita Brands emerged from Chapter 11 bankruptcy protection in
March and began a restructuring plan that would reduce its debt
by US$700 million.

The Company had filed for bankruptcy protection last November.

          James B. Riley, Senior Vice-President/CFO
          Tel. +1-513-784-6307
          William T. Sandstrom, Director of Investor Relations
          Tel. +1-513-784-6366


AEROMEXICO: ASSA Members To Accept 7-8% Salary Hike
The 1,600 members of the Flight Attendants Union (ASSA) will
agree on a 7-8 percent salary hike, averting a strike scheduled
for May 31. Confirmation of the news comes from Arturo Aragon,
the union's head, in an Mexico City daily el Economista report.

According to Aragon, if workers and Aeromexico come to an
agreement, that figure could drop to around 4.5 percent, the same
level as inflation.

"This, in my opinion, is not a great problem. It seems to me that
the Company could be ready to offer a raise close to this. The
problem is the criteria to determine the cost of the contractual
clause," Arag¢n said.

He said that the workers would demand an extra 2.5 percent for
retirement, consideration of previous illnesses and those caused
during work, the creation of a permanent disability insurance and
other demands.

Aeromexico is yet to announce its position regarding the matter.

Last year, the Company allowed its workers to go on strike,
losing MXN138 million (US$14.4 million) as a result, before
giving in and granting a salary increase of 9.5 percent.

Aeromexico and fellow Mexican airline Mexicana de Aviacion are
controlled by state-owned Cintra. The two airlines face a sell-
off this year with the process expected to kick off as soon as
the government hires a financial agent next month.

          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or

          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or

GRUPO ALFA: Nemak Gets US$220M Credit To Extend Debt Maturity
Nemak SA, the auto parts unit of Mexican industrial group Alfa
SA, raised US$220 million in new credit to increase its capacity
for aluminum motor heads and engine blocks and to extend the
maturity of its debt, reports Bloomberg.

The subsidiary got a five-year, US$140 million loan from 10 banks
in the U.S., Canada, Europe and Mexico that was arranged by Banc
of America Securities LLC. Nemak also sold $80 million of five-
year bonds in a private placement arranged by Credit Suisse First

According to Enrique Flores, Alfa's communications director, more
than half of the money will be used to expand Nemak's operations,
which last year made about 11.9 million aluminum cylinder heads.

Flores didn't say what rate the company will pay on the bonds.

The auto parts unit, which had sales of US$705 million last year,
is one of five businesses that Alfa has said it wants to grow
while it cuts investments in units such as flat steel.

Gordon Lee, an analyst with Goldman Sachs & Co. in New York,
suggests that the new debt placements indicate investors still
have confidence in the profitability of Alfa's auto parts unit
even as the Company's steel unit, Hylsamex SA, continues to
negotiate  with creditors after defaulting on its US$1.3 billion

           Ave. Gomez Morin 1111 Sur, Col. Carrizalejo
           Garza Garcia, N. L. Mexico C.P. 66254
           Tel: 52 8748-1111
           Fax: 52 8748-2552

           NEMAK S.A., Monterrey, Mexico
           Libramiento Arco Vial Km. 3.8
           Garcia N.L., 66000, Mexico
           Tel 52 (81) 8748 5208
           Fax 52 (81) 8748 5230

KENWOOD CORP.: Company Profile
NAME:  Kenwood Corporation
       2967-3, Ishikawa-cho, Hachioji,
       Tokyo 192-8525, Japan

PHONE: 0426-46-5111

FAX: 0426-46-7960



     Hiroshi Nakano, President
     Kazuyuki Yamada, Managing Director

     Tsuneo Abe
     Masao Kitazawa
     Yasunobu Namiki
     Masakazu Kaneko
     Haruo Kasuya
     Sadaharu Kato
     Hitoshi Onishi
     Moriyuki Tamura
     Akio Ueda
     Shigeru Amano

TYPE OF BUSINESS: Kenwood Corp. is a Japanese company involved in
the design, manufacture and sales of consumer electronic goods.
It manufactures and sells home audio, general audio, car audio,
navigation system, amateur radio equipment, land mobile radio
equipment, license-free transceiver, mobile telephone equipment,
telephone equipment, and PC components among others.


TRIGGER EVENT: Kenwood Corp. recently unveiled a restructuring
plan, which will include shutting down its plants in Mexico, in
order to cope with its losses. In the year to March 31, the
Company posted a group net loss of JPY26.6 billion, with
liabilities exceeding assets by JPY17 billion.

     Kenwood Electronics Latin America S.A.
     P.O.Box 55-2791 Piso 6
     Plaza Chase CI 47y
     Aquilino de la Guardia Panama,Republic of panama
     Phone: 507(269)2422
     Fax: 507(269)2986

     Kenwood Electronics Brasil Ltda.
     Alameda Ministro Rocha Azevedo
     No.456 Edificio Jau,
     10o Andar Cerqueira Cesar,
     Cep 01410-001 Sao Paulo,
     SP, Brasil
     Phone: 55(11)3063-2180
     Fax: 55(11)3063-2181

     Akira Koyama
     Motoaki Hirabayashi
     Kyosuke Endo
     Hideaki Kato

Last TCRLA Headline DATE:  Wednesday, May 29, 2002, Vol. 3, Issue


URUGUAYAN BANKS: Fitch Cuts After Deposits, Reserves Drop
Fitch Ratings has downgraded the long-term foreign currency
ratings of Banco Santander S.A. and Banco Sudameris to 'B+' from
'BB+'. In addition, Banco Comercial del Uruguay's long-term
foreign currency rating has been downgraded to 'B+' from 'BB'.
The ratings have been placed on Rating Watch Negative.

The rating actions follow a similar action taken today with
Uruguay's sovereign ratings, reflecting the severe and continuing
drop in banking system deposits and the associated fall in gross
official reserves triggered by Argentina's bank deposit
restrictions and devaluation. They also reflect the deterioration
in public debt dynamics as a result of the devaluation and
ongoing recession, all of which have contributed to a marked
worsening in the operating environment for financial institutions
in Uruguay. The ratings of Banco Santander S.A. and Banco
Sudameris are constrained by the sovereign ratings.

Ratings Affected:

Banco Comercial del Uruguay

--Long-term Foreign Currency Rating downgraded to 'B+' Rating
Watch Negative from 'BB', Rating Watch Evolving;

Banco Santander S. A. (Santander)

--Long-term Foreign Currency Rating downgraded to 'B+' Rating
Watch Negative from 'BB+', Negative Rating Outlook, Support
Rating, '4T';

Banco Sudameris -- Uruguay Branch (Sudameris)

--Long-term Foreign Currency Rating downgraded to 'B+' Rating
Watch Negative from 'BB+', Negative Rating Outlook.

In addition, the outlook on the ratings of Federacion Uruguaya de
Cooperativas de Ahorro y Credito (FUCAC) and Cooperativo de
Ahorro y Credito (FUCEREP) has been changed to Negative from

Federacion Uruguaya de Cooperativas de Ahorro y Credito (FUCAC)

--Long-term Foreign Currency Rating, 'B-';
--Support Rating, '5T';
--Outlook changed to Negative from Stable.

Cooperativo de Ahorro y Credito (FUCEREP)

--Long-term Foreign Currency Rating, 'B-';
--Support Rating, '5T';
--Outlook changed to Negative from Stable.

          Peter Shaw, 212/908-0553
          Ricardo Chaves, 212/908-0606
          Linda Hammel, 212/908-0303
          Media Relations:
          Matt Burkhard, 212/908-0540
          FITCH RATINGS, Buenos Aires
          Maria Fernanda Lopez, Mauro Chiarini, Ana Gavuzzo
          (5411) 4327-2444


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.

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