/raid1/www/Hosts/bankrupt/TCRLA_Public/020603.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Monday, June 3, 2002, Vol. 3, Issue 108

                           Headlines



A R G E N T I N A

ACINDAR: Resumes Trading In Buenos Aires Bourse
ARGENTINE BANKS: Government To Solve Banking Restriction Quandry
SCOTIABANK QUILMES: Workers Threaten Strike
TELEFONICA DE ARGENTINA: Moody's Downgrades Following Review


B O L I V I A

HUANUNI/VINTO: RBG In Talks To Sell Bolivian Assets


B R A Z I L

BCP: Regulators Deny Plans To Assume Administration
CEMAR: Parent Company Silent Regarding Sale Rumors
TELEGLOBE: Creditors' Individual Exposure Revealed


C H I L E

MANQUEHUE NET: Heavy Debt Load Clouds Partner Search
VTR GLOBALCOM: Averts Collapse By Refinancing Debts With Banks


M E X I C O

AEROMEXICO: Offers 5.12% Salary Hike To Avert Strike
GRUPO DINA: Continues To Renegotiate With Creditors
GRUPO TMM: Closes First Tranche of Convertible Notes


U R U G U A Y

URUGUAYAN BANKS: Argentine Crisis Creates Mounting Pressure


V E N E Z U E L A

INTERNATIONAL THUNDERBIRD: 1Q02 Results Show Mild Improvement
PDVSA: Reveals US$9-Billionn, 5-Year Investment Plan


     - - - - - - - - - -

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

ACINDAR: Resumes Trading In Buenos Aires Bourse
-----------------------------------------------
Acindar Industria Argentina de Aceros, previously suspended from
the Buenos Aires Stock Exchange after posting a negative net
worth of ARS252 million (US$70.9 million) for the period ending
March 31, 2002, resumed trading Thursday.

Resumption came after the Buenos Aires bourse amended a rule that
suspended companies' shares from trading if quarterly losses are
greater than the value of their assets.

The amendment, signed by the stock exchange president Julio
Werthein, was dated Tuesday. In the two-page document, the stock
exchange said that the rule had been designed to halt trading of
companies that were insolvent due to problems specific to their
operations, not to extenuating circumstances such as the peso
devaluation.

Argentina devalued its currency in early January, disengaging the
peso from its 11-year parity to the dollar. Since then the peso
($1=ARS3.63) has lost about 70 percent of its value relative to
the dollar.

Acindar, Argentina's biggest producer of steel rods, was trading
sharply lower mid-session Thursday, having shed 15 percent to
29.5 centavos.

The Company said the fact that it has debts in dollars, but
assets in pesos, created the negative net worth.

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

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


ARGENTINE BANKS: Government To Solve Banking Restriction Quandry
----------------------------------------------------------------
The Argentine government was scheduled to unveil its program that
would lift banking restrictions Saturday at the latest, according
to presidency secretary Anibal Fernandez. He declined to provide
details, but said the IMF was not consulted over the drafting
over the document.

Argentina imposed monthly limits on bank withdrawals and overseas
capital transfers in December, after a yearlong run on bank
deposits. Those limits have angered Argentines and slowed credit
and commerce to a virtual standstill.

South America's second-largest economy has contracted by about 10
percent since mid-1998 and is expected to shrink another 15
percent in 2002 alone, according to the International Monetary
Fund and private economists.

Unemployment is approaching 30 percent, half the population lives
below the official poverty line and consumer prices could rise by
50 percent by the end of this year, according to senior
government officials.


SCOTIABANK QUILMES: Workers Threaten Strike
-------------------------------------------
Nearly 1,800 employees of Bank of Nova Scotia's ailing Argentine
unit, Scotiabank Quilmes, planned to stage a one-day strike
Thursday. The action was intended to protest what they see as the
Canadian parent's unfeeling treatment of their current economic
situation, says a report by the Financial Post.

According to the employees, they have asked the Canadian
government to intervene on their behalf after Scotiabank Quilmes
was suspended by Argentina's central bank. They said that the
bank has been uncommunicative and failed to give them assurances
they will receive an estimated US$35-million in severance pay.

"Our severance is so important," said Pablo, a Scotiabank Quilmes
employee who preferred not give his last name. "It allows us to
survive for a time while we try to find something else."

"All they care about is their shareholders in Canada," he added.
"They seem to have forgotten they also have 1,800 workers with
families to support. They have no heart."

However, Pam Agnew, a spokeswoman for Scotiabank in Toronto, said
it was still "premature" to discuss severance payments as the
bank was still working with Argentine authorities to resolve the
situation.

Agnew added that Argentine law protected employees by ensuring
they had first lien rights, before shareholders or depositors on
the bank's assets.

Scotiabank stopped financing its Argentine subsidiary after
taking a CAD707-million write-down that erased most of its
profits in the first quarter of this fiscal year.

Scotiabank recently hired an investment bank in a bid to find a
buyer for Quilmes. But the subsidiary is unlikely to attract much
of a price after the devaluation of the Argentine peso sliced the
value of its assets by CAD1 billion to CAD1.8 billion. The
carrying, or book value, of Quilmes declined to CAD92 million
from CAD308 million.

For further information: Pam Agnew, Scotiabank Public Affairs,
(416) 866-7238

LATIN AMERICAN 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


TELEFONICA DE ARGENTINA: Moody's Downgrades Following Review
------------------------------------------------------------
Moody's Investors Service concluded Thursday its rating review
process on Telefonica de Argentina Sociedad Anonima (TASA),
downgrading the company's long-term foreign currency debt rating.

Moody's cut TASA's long-term foreign currency debt rating to Ca
from Caa1. The outlook for the rating is negative.

The move reflected TASA's public announcement, made earlier last
week, in which it has offered a bond exchange for the US$100
million 9.875 per cent notes due July 1, 2002. By Moody's
standards, this constitutes a rating default.

In exchange for US$1,000 principal at 9.875 percent due on July
1, 2002, TASA is offering US$850 principal at 9.875 percent with
a maturity date of July 1, 2006, plus US$150 in cash (US$50 will
be payable in connection with an early tender).

The new notes will be subject to mandatory redemption exercisable
at the option of the holders. The new notes are also subject to
mandatory redemption at par at the holders' option, if, as of
July 1, 2004, the outstanding aggregate principal amount of
TASA's 11.875 percent notes due 2004 (plus any refinancing of
such notes with a maturity date prior to July 1, 2006) exceeds 30
percent of the initial aggregate principal amount of such notes.

Additionally, the rating downgrade to the same level as the
foreign currency sovereign rating reflected the fact that TASA's
parent company Telefonica SA did not step-in to avoid this bond
exchange offer. In Moody's opinion, given the uncertainties in
Argentina, the ratings agency perceives there is no reason to
justify TASA's rating to be above the country's foreign currency
rating level.

Moody's perceives that the level of deterioration in the economy
is very high, the financial deterioration of the Company has been
very substantial and it constrains the ability of the Company to
service its foreign currency debt.

In addition, the uncertainties regarding the regulatory framework
affecting tariffs persist and this is crucial for the Company's
viability going forward. The rating downgrades to Ca affect
TASA's MTN Program and all drawdowns, issuer rating and senior
implied rating.

Headquartered in Buenos Aires, Argentina, TASA is a
telecommunications service provider, which is 98%-owned by
Telefonica S.A.

CONTACTS:  TELEFONICA DE ARGENTINA
           Tucuman 1, 18th Floor, 1049
           Buenos Aires, Argentina
           Phone: (212) 688-6840
           Home Page: http://www.telefonica.com.ar
           Contacts:
           Carlos Fernandez-Prida Mendez Nunez, Chairman
           Paul Burton Savoldelli, Vice Chairman
           Fernando Raul Borio, Secretary



=============
B O L I V I A
=============

HUANUNI/VINTO: RBG In Talks To Sell Bolivian Assets
---------------------------------------------------
Talks regarding the sale of the ailing UK-based metals trading
company RBG Resources' assets in Bolivia to a local consortium
are now underway, Reuters reports, citing an RBG official in
Bolivia.

Early in May, RBG was placed in provisional liquidation, and is
currently under investigation in London for alleged false
accounting.

The Company jointly owns Bolivia's largest tin mine Huanuni with
state-run Corporacion Minera de Bolivia (COMIBOL). The embattled
firm also owns the Vinto tin smelter.

In mid-May, the Bolivian government seized temporary
administrative control of Huanuni to protect Bolivian assets,
jobs and the continuity of operations. But the intervention move
does not stop RBG from selling its stake.

"The negotiations are being carried out by two representatives of
... (RBG Resources' liquidators) and we have unofficial reports
that the negotiations are rather advanced," said Daniel Vanin,
head of RBG's Bolivian operations.

"We know that they are negotiating with (mining firm) Comsur,
which is mainly interested in the smelter, but we don't have any
other details," said Vanin.

Comsur (Compania Minera del Sur) is one of Bolivia's biggest
mining companies.

The sale negotiations led some 2,000 mine workers to gather in a
town near the capital of La Paz, threatening to go on a hunger
strike to demand that the mine and the smelter be
"renationalized", or taken over by the government permanently.

Operations at Huanuni have been paralyzed since May 2 due to a
strike over the payment of production incentives.

Huanuni, about 80 miles (130 km) southeast of La Paz, produces
300 to 350 tonnes of refined tin a month. The Vinto smelter
produces between 950 tonnes and 1,000 tonnes of refined tin a
month.

Vanin said mining firm MinSur de Peru also planned to hand in a
proposal to buy Vinto and operate Huanuni jointly with COMIBOL.

CONTACT:  RBG RESOURCES PLC
          105 Picadilly
          London
          W1J 7NJ
          Phone: 020 7491 7477
          Fax: 020 7491 7577

          EMPRESA METALURGICA VINTO
          (Vinto Foundry Company)
          Superintendente de Adquisiciones
          Casilla 612
          Oruro
          Phone: 5273091
          Fax: 5278024



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

BCP: Regulators Deny Plans To Assume Administration
---------------------------------------------------
The national telecommunications agency, Anatel, contradicted
recent news reports that it is considering putting cash-strapped
BCP Telecomunicacoes SA into administration. Recent reports have
suggested that Anatel may be considering such a move to preserve
the quality of the Sao Paulo-based mobile operator's services and
avoid a suspension of its operations in the event of a tie-up
with another company.

However, the agency, in a statement, denied awareness of any
possible initiative of this kind. BCP, which currently has
liabilities of US$1.6 billion, is owned by Bellsouth Corp. and
Safra through respective 44.5 percent stakes

In late March, the shareholders decided to allow BCP to default
on a US$375-million debt that led international credit rating
agency Standard & Poor's to lower BCP's credit rating from BrCC
to brD.

CONTACT:  BCP TELECOMMUNICACOES, S.A.
          Rua Florida, 1970
          Sao Paulo, SP, Brasil
          CEP 04565-001
          Tel. 55-11-5509-6555
          Fax 55-11-5509-6257
          Home Page: http://www.bcp.com.br

          BELLSOUTH CORPORATION
          1155 Peachtree St. NE
          Atlanta, GA 30309-3610
          Phone: 404-249-2000
          Fax: 404-249-5599
          Home Page: http://www.bellsouth.com
          Contacts:
          Investor Relations
          Phone (US): 800.241.3419
          Fax: 404.249.2060
          E-mail: investor@bellsouth.com

          BANCO SAFRA
          Av. Paulista, 2100 - Sao Paulo
          Brazil - 01310-930
          Phone: (11) 3175-7575
          Home Page: http://www.safra.com.br/ingles/index.asp
          Contact: Carlos Alberto Vieira, President

CREDITORS: FLEETBOSTON FINANCIAL CORPORATION
           100 Federal St.
           Boston, MA 02110
           Phone: 617-434-2200
           Fax: 617-434-6943
           Home Page: http://www.fleetboston.com
           Contact:
           Investor Relations
           Phone: 617-434-2200

           Terrence Murray, Chairman
           Charles K. (Chad) Gifford, President/CEO/Director
           Eugene M. McQuade, Vice Chairman and CFO

           CITIBANK
           Avenida Paulista, 1111
           13th floor - room 5
           Sao Paulo 01311- 920
           Brazil
           Home Page: http://www.citibank.com.br
           Contact:
           Fernando Tafner
           Phone: 55-11-5576-2004
           E-mail: fernando.tafner@citicorp.com

           ABN AMRO HOLDING N.V.
           Foppingadreef 22
           1102 BS Amsterdam, The Netherlands
           Phone: +31-20-628-9393
           Fax: +31-20-629-9111
           Home Page: http://www.abnamro.com
           Contact:
           Investor Relations(HQ1191)
           Gustav Mahlerlaan 10
           PO Box 283
           1000 EA Amsterdam
           The Netherlands
           Tel. +31 (0) 20 628 78 35
           Phone:  +31 (0) 20 628 78 37
           E-mail: investorrelations@nl.abnamro.com


CEMAR: Parent Company Silent Regarding Sale Rumors
--------------------------------------------------
U.S.-based PPL Global hired German bank Dresdner to help it sell
its indebted Brazilian unit, power distributor Cemar, reports
local news service Relatorio Reservado (RR). However, PPL merely
responded to RR's report saying, the company's policy is not to
comment on "rumors about sales of any of our assets or about
mergers and acquisitions of any kind," adding it has not filed
any lawsuits against Maranhao.

According to the report, the U.S.-based parent is going to exit
the Brazilian power sector and will sue the Brazilian state of
Maranhao for failing to disclose some US$130 million in debts
during the privatization process. PPL Global paid US$288 million
for 84.6 percent of Cemar in a June 2000 privatization.

"Cemar's capacity of restoring its financial stability relies, at
this moment, on various decisions that are being analyzed by the
federal government," PPL said. "Cemar is working to resolve the
difficulties created by the drought and other recent problems.

Meanwhile, PPL announced that Cemar is working with creditors and
state and federal authorities in an effort to maintain service to
its 1 million clients in Maranhao.

In March, international rating agency Standard & Poor's lowered
its local rating for Cemar from brBBB- to brSD and its rating for
the company's 150mn-reais bond issue from brBBB- to brCC amid
noncompliance of obligations and restructuring talks.

CONTACT:  CEMAR
          Rua Gerson Andreis, 1255
          ZIP: 95112-130 - Caxias do Sul - RS - Brasil
          Phone: (+55 54) 227.1566 - Ext.105
          Fax: (+55 54) 227.1074
          E-mail: comex@cemar.com.br
          Home Page: http://www.cemar.com.br/

          DRESDNER BANK AG
          Jrgen-Ponto-Platz 1
          D-60301 Frankfurt/Main,
          Germany
          Phone: +49-(0) 69/2 63-0
          Fax: General enquiries
          +49-(0) 69/2 63-48 31
          +49-(0) 69/2 63-40 04
          Home Page: http://www.dresdner-bank.de/
          Contact:
          Dr. Jur. Henning Schulte-Noelle
          Chairman of the Supervisory Board of Dresdner Bank AG

          Uwe Plucinski
          Deputy Chairman of the Supervisory Boa

          PPL GLOBAL LLC
          11350 Random Hills Road
          Suite 400
          Fairfax, VA 22030

          Phone: 703-293-2600
          Fax: 703-293-2659
          William F. HechtChairman, President/CEO
          John R. Biggar, Executive Vice President/CFO


TELEGLOBE: Creditors' Individual Exposure Revealed
--------------------------------------------------
Export Development Canada (formerly Export Development Corp.),
Ottawa's export-finance arm, is one of 22 entities in an
international lending that lent to now-insolvent Teleleglobe Inc.
US$1.25 billion in July 2000 and renewed it a year later.

Teleglobe absorbed the whole amount, now equivalent to CAD1.9
billion. The loans are unsecured and in default, and the lenders
are unlikely to see more than pennies on a dollar.

EDC describes itself as a minor player in the syndicate with
about US$25 million at risk.

Among the 21 other syndicate members, at least one, Bayerische
Landesbank, has government involvement. It is owned partly by the
German state of Bavaria. Its specific exposure is unknown.

The Canadian banks in the syndicate revealed how much they are
roughly in for. Counting EDC's share, the Canadian exposure
easily exceeds CAD700 million.

The individual bank figures are: Bank of Montreal,CAD163 million;
Toronto-Dominion Bank, CAD125 million; Canadian Imperial Bank of
Commerce, CAD100 million; Royal Bank of Canada, more than CAD98
million; Bank of Nova Scotia, about CAD70 million; National Bank
of Canada, about CAD70 million; Laurentian Bank of Canada, CAD39
million.

Figures are not available for one big Canadian savings
institution, Caisse Centrale Desjardins du Qu‚bec, and three
foreign-owned Canadian banks on the list -- HSBC Bank Canada, BNP
Paribas (Canada) and Bank of Tokyo-Mitsubishi (Canada).

Last week, a U.S. court filing put Sun Life Assurance Co. of
Canada on Teleglobe's top-50 creditors list. Toronto-based Sun is
owed US$8.5 million.

At the top of the list are the lending syndicate and the holders
of Teleglobe's nearly worthless U.S. and Canadian bonds. The
bonds have total face value of CAD1 billion and CAD350 million,
respectively.

Also high on the list are Morgan Stanley Senior Funding Inc. of
New York, which is owed US$25 million, and John Hancock Mutual
Life Assurance Co. of Boston, owed US$23.9 million.

The top trade creditor is Austin, Tex. entrepreneur, Steve Smith,
who claims US$20 million. The nature of the claim is unclear.

Other large claims are from telecommunication companies, some
themselves broke, that carried traffic for Teleglobe: Flag
Atlantic Ltd. of Bermuda, US$15.6 million, and Williams
Communications LLC, an offshoot of Tulsa, Okla.-based Williams
Cos., US$11.1 million.

Teleglobe, owned by Montreal-based BCE Inc., is an international
long-distance carrier that bet its future on accelerating growth
in Internet traffic and lost. In April, BCE said it was ending
its support of the unit. Last month, Teleglobe crumpled under
debts totaling CAD6 billion. The company is under court
protection from creditors.

CREDITORS:

CANADIAN IMPERIAL BANK OF COMMERCE (CIBC)
199 Bay Street, Commerce Court West
Toronto, Ontario M5L 1A2, Canada
Phone: (416) 980-2211
Fax:   (416) 980-5028
       (416) 980-5026
Home Page: http://www.cibc.com/
Contacts:
     Corporate Secretary
     Phone: (416) 980-3096
     Fax:   (416) 980-7012

     Investor Relations
     Phone: (416) 980-6657
     Fax:   (416) 980-5028

     Corporate Communications and Public Affairs
     Phone: (416) 980-4523
     Fax:   (416) 363-5347

     Office of the Ombudsman
     Phone: 1 800 308-6859
     Fax:   1 800 308-6861
            (416) 861-3313 (Toronto)
            (416) 980-3754 (Toronto)

TORONTO DOMINION BANK
Toronto-Dominion Centre,,
King St. West and Bay St.
Toronto, Ontario M5K 1A2, Canada
Phone: 416-982-8222
Fax: 416-982-5671
Home Page: http://www.tdbank.ca/
Contact:
Anderson, M. Norman N., Director
Baille, A. Charles, Chairman
Bell, Allen W., Executive Vice President

EXPORT DEVELOPMENT CORP
151 O'Connor
Ottawa, Canada
K1A 1K3
Phone: (613) 598-2500
Fax: (613) 237-2690
Home Page: http://www.edc.ca/
Contact:
Investor Relations
E-mail: investor.relations@edc.ca
Fax: 613) 563-8834

Alex Watson, Portfolio Manager
Phone: (613)598-2800
E-mail: awatson@edc.ca

Nancy Kyte, Investor Relations Manager
Phone: (613)598-3522
E-mail: nkyte@edc.ca

WILLIAMS COMMUNICATIONS
One Technology Center
Tulsa, OK 74103
Phone: 918-547-6000
Fax: 918-547-7134
Home Page: http://www.williamscommunications.com
Contact:
     Howard E. Janzen, Chairman, President and CEO
     Scott E. Schubert, EVP and CFO

     Investor Relations
     Phone: 1.866.468.6924
     E-mail: wcg.ir@wcg.com

BAYERISCHE LANDESBANK
Home Page: http://www.baylbny.com/

New York Branch
North & Latin American Region
560 Lexington Avenue
New York, NY 10022
Tel  (212)310-9800
Fax (212)310-9841

Toronto Branch
BCE Place / Suite 3210
181 Bay Street
Toronto, Ontario M5J2T3
Tel (416)862-8840
Fax (416)862-2381

Representative Office for Mexico
Edificio Forum
Adres Bello No.10 Piso 16
Chapultepec Morales
11560 Mexico, D.F
Tel (0052-5)282-9111/14
Fax (0052-5)232-9115

Montreal  Branch
1501 McGill College Avenue / Suite 2060
Montreal, Quebec H3A 3M8
Tel  (514)985-0047
Fax (514)985-2610

BANK OF MONTREAL
Bank of Montreal Tower,
55 Bloor Street West, 8th Floor
Toronto, Ontario
M4W 3N5
E-mail: feedback@bmo.com
Home Page: http://www.bmo.com/
Contact: John Graham, Ombudsman
Tel: 1-800-371-2541
Fax: 1-800-766-8029

BANK OF NOVA SCOTIA
Scotia Plaza,
44 King Street West
Toronto, Ontario
M5H 1H1
Home Page: http://www.scotiabank.com/
Contact:
Scotia INFOLINE
(416) 750-FUND (3863) (Greater Toronto Area)
1-800-268-9269 (Other Areas In Canada)

Bill Bailey, Ombudsman
Tel: 1-800-785-8772/(416) 933-3299
Fax: (416) 933-3276

NATIONAL BANK OF CANADA
Head Office
National Bank Tower
600 de La GauchetiŠre West
Montreal, Quebec
H3B 4L2
Telephone: (514) 394-5000
Telex: 0525181
Home Page: www.nbc.ca
Contact:
Elaine Carr
Director - Investor Relations
Telephone: (514) 394-0296
Fax : (514) 394-6196
Email : elaine.carr@bnc.ca

LAURENTIAN BANK OF CANADA
Tour Banque Laurentienne
1981, McGill College Avenue
Montreal (Quebec)
H3A 3K3
Telephone:  (514) 284-4500 ext. 5996
Fax:  (514) 284-3396
Telex:  05-24217
Swift Code:  LBCMCAMM
Customer services: (514) 522-1846
1 800 LBC-1846
Home Page: http://www.laurentianbank.ca
Contact:
Michael Murray
Telephone:  (514) 284-4500 ext. 5907
E-mail: murraym@banquelaurentienne.ca

ROYAL BANK OF CANADA
P.O. Box 1
Royal Bank Plaza
Toronto, ON M5J 2J5
Phone: 416-974-5151
Home Page: http://www.royalbank.com/
Contact:
Investor Relations
Royal Bank of Canada
123 Front St West, Suite 600
Toronto, ON M5J 2M2
Phone: 416-955-7802
Fax: 416-955-7800

HSBC BANK CANADA
1188 West Georgia Street, 2nd Floor
Vancouver, BC V6E 4A2
Toll free number: 1-866-8mlhsbc (1-866-865-4722)
E-mail: info@hsbc.ca
Home Page: http://www.hsbc.ca/english/
Contact:
James H. Cleave, Chairman of the Board
Martin J.G. Glynn, President and Chief Executive Officer
J. Lindsay Gordon, Chief Operating Office

CAISSE CENTRALE DESJARDINS DU QUEBEC
La #815 GC
1 Desjardins Complex
Montreal, QC H5B 1B3
E-mail: confed07@desjardins.com
Home Page: http://www.desjardins.com/

BNP PARIBAS CANADA
BNP Tower
1981 McGill College avenue
Montreal, (Qc) H3A 2W8
Tel: (514) 285-6000
Fax: (514) 285-6278
Home Page: http://www.bnpparibas.ca/

SUN LIFE ASSURANCE CO. CANADA
Toronto, ON M5H 1J9, Canada
Phone: 416-204-3835
Fax: 416-595-0346

THE BANK OF TOKYO-MITSUBISHI, LTD.,
Headquarters for the Americas:
1251 Avenue of the Americas, New York, NY 10020-1104
Tel: (212) 782-4000
Fax: (212) 782-6415
E-mail: nahq@btmna.com
Home Page: http://btmna.com

MORGAN STANLEY SENIOR FUNDING INC.
Contact:
Morgan Stanley, Dean Witter & Company
1585 Broadway
New York, New York 10036
United States
Phone: +1 212 761-4000
Fax: (212) 761-0086
Home Page http://www.msdw.com



=========
C H I L E
=========

MANQUEHUE NET: Heavy Debt Load Clouds Partner Search
----------------------------------------------------
Manquehue Net's heavy debt burden is likely to be a stumbling
block in the Chilean fixed line operator's efforts to find a
buyer or bring in new shareholders.

Manquehue is carrying debts of some US$150 million and, according
to market observers, any party interested in acquiring Manquehue
would have to negotiate with its creditors -- including banks,
bondholders, and the Company itself -- in order to strike a deal.

The Company has been searching for a new partner since last month
after posting disappointing financial results for the year 2001,
including a loss of CLP11.3 billion (US$17.3 million), compared
to a profit of CLP224,017 in 2000. Results improved a bit in the
first-quarter of this year, when the Company reported a net loss
of CLP2.15 billion, compared to the CLP922-million loss in the
same period last year.

The partner search also follows two successive credit rating
downgrades by Fitch Ratings that have essentially cut the Company
off from new funding.

Manquehue's current shareholders are the UK's National Grid (30
percent); Chilean gas distributor Metrogas (25.6 percent); the
local Rabat family (21.2 percent); US-based network operator
Williams Communications (16.5 percent) and investment fund Xycom.

CONTACT:  MANQUEHUE NET S.A.
          Av. Condor 796, Enterprise City,
          Huechuraba Santiago Chile
          Phone: 00 562 243 8800
          Fax: 00 562 248 7292
          EMAIL: info@manquehue.netl
          Home Page: http://www.manquehue.net/
                     http://www.manquehue.cl
          Contact:
          Mr. Miller Williams, President
          Sr.Jos, Luis Rabat Vilaplana, Vice President


VTR GLOBALCOM: Averts Collapse By Refinancing Debts With Banks
--------------------------------------------------------------
VTR GlobalCom SA managed to escape bankruptcy after renegotiating
US$150 million of debt with eight banks. The banks included
BankBoston NA, Citibank, JP Morgan Chase & Co., ING Groep NV,
Toronto Dominion Bank, Credit Lyonnais SA, Canadian Imperial Bank
of Commerce, and Export Development Corp.

In addition, VTR is to receive a total of US$199 million from its
parent, UnitedGlobalCom Inc., US$49 million of which has already
been advanced. The remainder of the money will be issued by July
31.

Refinancing the loans may have saved VTR from bankruptcy, while
cash from UnitedGlobalCom's will allow the Company to expand
services that also include local telephone and Internet. VTR
plans to invest more than US$100 million this year.

On April 15, Denver-based UnitedGlobalCom said in a filing with
the U.S. Securities and Exchange Commission that VTR might be
unable to meet debt payments unless VTR was able to refinance
US$176 million of loans.

VTR spokeswoman Veronica Rubio was unavailable for comment on the
reason for the difference between the amount of refinancing and
the prior amount of the loans.

VTR was UnitedGlobalCom's only business last year with positive
earnings before interest, tax, depreciation and other expenses,
with EBITDA of US$26.9 million last year, according to the
filing. UnitedGlobalCom is controlled by Liberty Media, the media
company run by billionaire John Malone.

UnitedGlobalCom said in April that VTR had 448,300 cable
television subscribers and revenues of US$166.6 million in 2001.

VTR is Chile's No. 1 cable television and high-speed Internet
provider, and the country's second largest local telephony
company.

CONTACTS:  VTR GLOBALCOM S.A.
           Reyes Lavalle 3340, Piso 5
           Las Condes
           Santiago
           Phone: 310 1000
           E-mail : contacto@vtr.net
           Home Page: http://www.vtr.net

           UNITEDGLOBALCOM, INC.
           4643 South Ulster Street
           Suite 1300
           Denver, CO 80237 USA
           Phone: 303-770-4001
           Fax: 303-770-4207
           Home Page: http://www.unitedglobal.com/
           Contact:
           Investor Relations Contact
           Rick Westerman
           Chief Financial Officer
           Phone:  303-770-4001
           Fax:  303-770-4207

CREDITOR BANKS:

BANKBOSTON
Headquarters
Fleetboston
P.O. Box 2016
100 Federal St.
MA BOS 01-08-04
Boston, MA 02106-2016
S.W.I.F.T : FNBB US 33
Telex: 4996527 Boston KBBSN
Home Page: http://www.bankboston.com.ar/

Bankboston-Santiago
Enrique Foster Sur 20
Las Condes 6760315
Santiago, Chile
Phone: 56-(2)-686-0000
Fax: 56-(2)686-0868
S.W.I.F.T FNBB CL RM
Telex: 441292 BOSBK CZ
http://www.bankboston.cl/

ING GROEP NV
Strawinskylaan 2631
1077 ZZ Amsterdam,
The Netherlands
Phone: +31-20-541-54-11
Fax: +31-20-541-54-44
Home Page: http://www.ing.com
Contacts:
     Ewald Kist, Chairman
     Cees Maas, Chief Financial Officer

J.P. MORGAN CHANSE & 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

CREDIT LYONNAIS
19, Boulevard des Italiens
75002 Paris, France
Phone: +33-1-42-95-67-89
Fax: +33-1-42-95-94-37
E-mail: webmaster@creditlyonnais.com
Home Page: http://www.creditlyonnais.com
Contacts:
    Jean Peyrelevade, Chairman
    Dominique Ferrero, Chief Executive Officer

CANADIAN IMPERIAL BANK OF COMMERCE (CIBC)
199 Bay Street, Commerce Court West
Toronto, Ontario M5L 1A2, Canada
Phone: (416) 980-2211
Fax:   (416) 980-5028
       (416) 980-5026
Home Page: http://www.cibc.com/
Contacts:
     Corporate Secretary
     Phone: (416) 980-3096
     Fax:   (416) 980-7012

     Investor Relations
     Phone: (416) 980-6657
     Fax:   (416) 980-5028

     Corporate Communications and Public Affairs
     Phone: (416) 980-4523
     Fax:   (416) 363-5347

     Office of the Ombudsman
     Phone: 1 800 308-6859
     Fax:   1 800 308-6861
            (416) 861-3313 (Toronto)
            (416) 980-3754 (Toronto)

CITIBANK - Chile
Avenida Andres Bello 2687
Las Condes
Santiago
Chile
Home Page: http://www.citibank.com/chile/homepage/index.htm
Contact:
Jorge Wurth
Phone: 56-2-338-8435
E-mail: jorge.wurth@citicorp.com

TORONTO DOMINION BANK
Toronto-Dominion Centre,,
King St. West and Bay St.
Toronto, Ontario M5K 1A2, Canada
Phone: 416-982-8222
Fax: 416-982-5671
Home Page: http://www.tdbank.ca/
Contact:
Anderson, M. Norman N., Director
Baille, A. Charles, Chairman
Bell, Allen W., Executive Vice President


EXPORT DEVELOPMENT CORP
151 O'Connor
Ottawa, Canada
K1A 1K3
Phone: (613) 598-2500
Fax: (613) 237-2690
Home Page: http://www.edc.ca/
Contact:
Investor Relations
E-mail: investor.relations@edc.ca
Fax: 613) 563-8834

Alex Watson, Portfolio Manager
Phone: (613)598-2800
E-mail: awatson@edc.ca

Nancy Kyte, Investor Relations Manager
Phone: (613)598-3522
E-mail: nkyte@edc.ca



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

AEROMEXICO: Offers 5.12% Salary Hike To Avert Strike
----------------------------------------------------
Leading Mexican airline Aeromexico presented the Flight
Attendants Union (ASSA) Wednesday with a salary increase proposal
of 5.12 percent in an attempt to prevent a strike scheduled for
June 1.

The Company reportedly offered a 4-percent salary increase plus
an extra 1.12-percent in benefits, way below the 6-percent salary
hike and a 3-percent raise in benefits that the union is asking
for its 1,600 flight attendants.

Aeromexico says, in the framework of the Collective Work Contract
(CCT), the offer preserves the company's financial viability in
the face of the current world crisis in the air industry.

ASSA leader Arturo Aragon Sosa gave the Company until Thursday to
present a decent proposal.

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.

CONTACT:  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



GRUPO DINA: Continues To Renegotiate With Creditors
---------------------------------------------------
Insolvent Mexican truck maker, Grupo Dina, is currently in deep
negotiations with various factions that have an interest in the
company. Dina is in talks with its workers, the Treasury
Secretariat (SHCP) and domestic and international creditors to
restructure its debts.

The Company showed its willingness to continue fulfilling its
financial obligations and thus protect the interest of creditors
and shareholders.

Mauricio G. Mendoza Silva, Dina's legal director, said that the
Company would continue the restructuring process and negotiations
with workers.

According to a TCR-LA report released last month, the state of
Hidalgo would pay 559 workers from the Dina Camiones (trucks) and
Dina Composites companies in Ciudad Sahagun the MXN157 million
(US$16.5 million) they were owed. The amount would come from a
credit line the state Congress authorized the state government to
take in fiscal year 2002.

The secretary of Economic Development, Alberto Melendez Apodaca
announced that state authorities had also reached an agreement
with National Casting, located in the same industrial complex, to
hand over company stock as payment to union workers and
providers.

CONTACT:  CONSORCIO G GRUPO DINA SA DE C.V.
          Tlacoquemecatl de Valle
          No 41 Tlacoquemecatl
          Mexico
          Tel. +52 5 420 3900
               +52 5 420 3987
          Home Page: http://www.dina.com.mx/


GRUPO TMM: Closes First Tranche of Convertible Notes
----------------------------------------------------
In an official company press release, Grupo TMM, the largest
Latin American multi-modal transportation and logistics company
and owner of the controlling voting interest in Mexico's busiest
railway, TFM, announced Thursday that it has closed the first
tranche of $32.5 million of convertible securities with
institutional investors. Interest on the notes accrues at 9
percent. In conjunction with the closing for the first tranche,
the investors received Note-Linked Securities exercisable at any
time over the next three years for approximately 1.31 million
ADSs, at an exercise price of $9.91 per ADS.

Grupo TMM will use the proceeds from the private placement to pay
down a portion of its outstanding commercial paper.

As previously announced, the first tranche of $32.5 million
consists of Senior Convertible Notes that will be repaid in equal
weekly installments commencing July 5, 2002, and will be fully
amortized by May 5, 2003. The company has the option to draw down
the second tranche on or before the end of 2002 upon satisfaction
of certain conditions, including the exchange or refinancing of
the company's outstanding 9.5 percent Notes due May 15, 2003.
This second tranche will consist of up to $32.5 million of Senior
Convertible Notes that will be repaid in equal weekly
installments commencing no later than May 9, 2003, and should be
fully amortized by October 4, 2004. The size of the second
tranche may be reduced based upon the number of shares available
for issuance upon conversion.

The company intends to pay principal and related interest on both
tranches of convertible notes by issuing ADSs. Payments in stock
will be at 93 percent of the weighted average price for the ADSs
during the week of the related payment. Alternatively, both
tranches can be amortized, or redeemed for cash at any time at
the company's option, at 105 percent of par, plus accrued
interest. The convertible notes can be converted by the investors
into ADSs at a conversion premium of 100 percent over the price
of the company's ADSs on the date of issuance of the respective
tranches (a conversion price of $21.38 per ADS for the first
tranche). The company is required to register the ADSs underlying
the convertible notes, interest payments and note-linked
securities under the Securities Act of 1933 by July 28, 2002.

The securities offered and issued in the private placement and to
be offered in the second tranche have not been registered under
the Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration under the
Securities Act and applicable state securities laws or an
applicable exemption from those registration requirements.

The material terms of the Senior Convertible Notes and the Note-
Linked Securities are more fully set forth in Grupo TMM's Current
Report on Form 6-K submitted to the Securities and Exchange
Commission on May 10, 2002. The operative transaction documents,
which are a Securities Purchase Agreement, Registration Rights
Agreement, Form of Initial Note, Form of Additional Note and a
Form of Note-Linked Security, have also been submitted as
exhibits to the Form 6-K.

CONTACT:  GRUPO TMM
          Jacinto Marina, 011-525-629-8790
          jacinto.marina@tmm.com.mx

          Investor Relations:
          Brad Skinner, 011-525-629-8725
          brad.skinner@tmm.com.mx

          Media Relations:
          Luis Calvillo, 011-525-629-8758
          luis.calvillo@tmm.com.mx

          Dresner Corporate Services
          (general investors, analysts and media)
          Kristine Walczak, 312/726-3600
          kwalczak@dresnerco.com



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

URUGUAYAN BANKS: Argentine Crisis Creates Mounting Pressure
------------------------------------------------------------
Uruguayan banks are now facing increasing financial difficulties
as the affects from Argentina's worsening situation spread,
Moody's Investors Services says in a new report.

"Recent deposit weakness reflects the banking system's reliance
on non-residents, particularly Argentines, for about half of its
foreign currency deposits," Moody's report says.

Argentines are experiencing a "corralito," or a partial deposit
freeze, in their home country. This, according to Moody's, has
heightened the need to fulfill their cash needs across the
border, as well as fueling fears of that happening in Uruguay as
well.

"It would appear that Uruguay's role as a `safe haven',
traditionally a strength of the financial system, has become its
`Achilles' heel', as a result of the extraordinary events
occurring Argentina," Moody's analysts say.

The rating agency notes that the banks' increased funding risk
also signals a further weakening of bank profit and asset quality
performance in 2002.

"We expect higher funding costs and a weaker exchange rate to
negatively affect asset quality across the board, especially in
light of the high proportion of US dollar denominated loans to
non-dollar earners," points out Jeanne Del Casino, a Moody's vice
president and the report's author.

The analysts also notes that the International Monetary Fund
(IMF) has shown willingness to help shore up the financial
system. Del Casino indicates that the IMF announcement this week
that it would provide Uruguay additional financing in 2002 should
help alleviate the pressure on the financial system.

"As a practical matter, however, until the future of the
Argentine "corralito" is resolved, we would expect non-resident
bank deposits in Uruguay to remain under pressure," says Del
Casino.

"The Uruguayan authorities' main challenge right now is to
maintain depositor confidence. On the positive side, Uruguay has
no history of default for either local or foreign currency
deposits and the Central Bank of Uruguay continues to provide
assistance to troubled institutions," says the analyst.

On May 21, 2002, Moody's lowered the foreign currency deposit
ceiling for Uruguayan bank deposits to B1 from Ba3. The ceiling
remains on review for further possible downgrade in light of the
heightened risks associated with the steady decline in foreign
currency deposits. Moody's bank financial strength ratings range
between E and E+, reflecting the Uruguayan banks' generally weak
intrinsic financial strength.



=================
V E N E Z U E L A
=================

INTERNATIONAL THUNDERBIRD: 1Q02 Results Show Mild Improvement
-------------------------------------------------------------
On behalf of its Board of Directors, Jack R. Mitchell, President
and CEO of International Thunderbird Gaming Corporation (TSE -
INB) announced its financial results for the first quarter ended
March 31, 2002. All figures are in US dollars.

Revenues for the first quarter of 2002 from continuing operations
were $4.5 million, an increase of 12.4% over 2001 revenues from
continuing operations of $4.0 million for the same period. Net
income for the period was $50 thousand compared to a loss in 2001
of $449 thousand for the same period. The income for the current
period included a gain from equity in associated companies of $25
thousand.

The breakdown of this $25 thousand is as follows: Venezuela Q1
contribution $101 thousand and Mexico Q1 consumption $ 76
thousand. The 2001 loss for the same period included a loss from
equity in associated companies of $117 thousand. The breakdown of
this $117 thousand was as follows: Matamoros Q1 contribution $54
thousand, Nuevo Laredo Q1 consumption $68 thousand and Venezuela
Q1 consumption $ 103 thousand. General and Administrative
expenses increased 3.4% from $1.7 million in Q1 2001 to $1.75
million in Q1 2002. The earnings per share were nil in Q1 2002
compared to a loss per share of $0.02 for the same period in
2001. The Company achieved EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) of $1 million compared to
$481 thousand for the same period in 2001.

In Panama, revenues continued to grow as the Company completed an
expansion of its casino at the Hotel Soloy, adding 70 machines
and 200 square meters of floor space. Table revenues have
remained stable and management has been successful in its
objective to increase market share in slot revenue. To do so, the
Company has purchased and installed a GSI on line accounting and
player tracking system throughout its four casinos. In June, the
Company plans to begin an expansion of its casino in the Hotel El
Panama, adding 35 table positions, 100 slot machines, an
entertainment facility and 800 square meters of floor space. The
completion of this project is projected to be in November of
2002.

In Guatemala, the Company has completed an arbitration proceeding
claiming ILAC owes the Company approximately $620,000. In
addition, the proceeding includes a claim that Thunderbird's
contract should be extended past the 5-year contract date
(October 1997) because operations did not commence until February
1998. The Company is confident that the arbitrator will render a
fair reward. The Company believes the results of the arbitration
will have an effect on the renewal of the contract. The Company
expects a decision from the arbitrator within the next 30 days.

In Nicaragua, the Company continues to pursue the merger with
Hopewell Ltd. The merger is dependent on Thunderbird closing on
the financing contemplated for the merger, if completed the
merger will allow the expansion of the current facilities, which
are constrained by space during peak periods. The merger will be
completed or be abandoned within the next 30 days.

In Venezuela, the Company continues to be concerned over recent
economic and political issues. Fiesta Casino-Guayana has shown a
reduction of projected revenue in April and May 2002 from the
revenue in January-March, 2002. The Company continues to monitor
the situation to determine the effect of Venezuela's recent
economic and political problems on the operation.

In Mexico, the Company filed a "Notice of Intent To File a NAFTA
Claim" on March 21, 2002 claiming significant damages and must
wait 90 days to file the actual NAFTA claim as required under the
NAFTA rules of procedure. The 90-day period allows the parties an
opportunity to settle the matter. Management believes this
litigation will be protracted because of past and continued
stonewalling by the Mexican government. After filing the claim,
the arbitration is expected to take approximately a year. Another
Mexican skill game operator continues to operate without any
hindrance from the Mexican government.

In California, the Company continues to pursue claims against two
California tribes and collection of several receivables stemming
from discontinued operations. Management is confident there will
be material recoveries, but is unable to predict the size.

The Company has accomplished most of its short term goals to cut
expenses, slow development, and stabilize operations. These
trends will be continued with further cost cutting, focus on
profitability and building the balance sheet. Legal recoveries
will affect the overall situation in a positive way, if they are
significant. Overall, the management is cautiously optimistic for
the rest of the year's outlook.

International Thunderbird Gaming Corporation is an owner and
manager of international gaming facilities. Additional
information about the Company is available on its World Wide Web
site at www.thunderbirdgaming.com.


CONTACT:  INTERNATIONAL THUNDERBIRD GAMING CORPORATION
          Jack R. Mitchell
          President and CEO
          (858) 451-3637
          (858) 451-1169  (FAX)
          Email: info@thunderbirdgaming.com
          Website: www.thunderbirdgaming.com


PDVSA: Reveals US$9-Billionn, 5-Year Investment Plan
----------------------------------------------------
Venezuela's state oil company PdVSA plans to invest US$9 billion
over five years in natural gas, reports Business News Americas,
citing PdVSA Gas director Nelson Nava. In a statement, Nava
revealed that most of the slated investments are to develop
reserves in the eastern part of the country, including offshore
tracts. Mr. Nava didn't say how PDVSA would finance its
investments.

The announcement came days after various local analysts and
economists suggested that PdVSA should sell stock to create new
liquid resources. The funds would be expected to pay for
Venezuelan foreign debt of some US$22 billion, or the internal
liabilities, which, according to private calculations, exceed
US$8 billion.

PdVSA president Ali Rodriguez had already responded to the
proposal saying that the oil company will not resort to an equity
offering in order to remedy "transitory" liquidity problems.

Rodriguez had admitted that PdVSA, one of the largest petroleum
companies in the world, has "transitory" cash flow problems.
However, he had clarified that its current financial situation
"is very far" from what rumors say is a supposed "technical
breakdown."

PdVSA "has a sufficient resource base to resolve any problems
that may arise, including improving significantly, without the
need to privatize," Rodriguez had claimed.

CONTACT:  Omar Guaregua
          Phone: (58212) 7084822
          guareguao@pdvsa.com

          Yoly Bravo
          Phone: (58212) 7084484
          bravoyz@pdvsa.com



               ***********


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
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contact Christopher Beard at 240/629-3300.


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