TCRLA_Public/020604.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, June 4, 2002, Vol. 3, Issue 109



ARGENTINE BANKS: Economy Minister Defends Rescue Plan
BANCO FRANCES: Spanish Parent To Boost Capital
CAMPOFRIO ALIMENTACION: Still Seeking Buyers For LatAm Assets
CTI HOLDINGS: S&P Drops Ratings On Suspended Payments
EDESUR: Earnings Slump Prompts S&P To Cut Parent's Ratings

HSBC ARGENTINA: Chairman Warns of "Critical" Position
RURAL/METRO: Ratings Off Watch, S&P Affirms; Outlook Negative


ANDERSEN: Bermuda Workers Bid Goodbye; Transfer to PWC
DOV BERMUDA: Wolf Haldenstein Files Class Action Suit
DOV BERMUDA: DOV Pharmaceutical 1Q02 Results Show Bigger Loss
FOSTER WHEELER: Financing Facilities Waiver Extended
GLOBAL CROSSING: Analyst Grubman Influenced Corporate Decisions
STIRLING COOKE: Replaces Andersen With KPMG


AUSDRILL LIMITED: To Close Chilean Operations


AES GENER: Renegotiates $335.6 Million In Debt With 20 Banks
VALORES BAVARIA: Plans To Offload Avianca In Restructuring

D O M I N I C A N   R E P U B L I C

SMITH-ENRON: President Slams US$4M/mo. Bill from Defunct Plant


GEOMAQUE EXPLORATIONS: Loss Shrinks, Production Up In 1Q02


AEROMEXICO: Workers Accept Salary Hike Offer, Cut Strike Short
CINTRA: Merrill Lynch To Advise On Sale Of Two Airlines
IMEXSA: S&P Drops Export Trust Rating to 'D' After Nonpayment


BANCO ALEMAN: Gets $15 Million From Owners

     - - - - - - - - - -


ARGENTINE BANKS: Economy Minister Defends Rescue Plan
Argentina's Economy Minister Roberto Lavagna spoke in defense of
the government's plan designed to slowly phase out the much-
maligned banking freeze.

The plan, which was unveiled Saturday, offers savings-account
holders a choice of bonds maturing in between three and 10 years.
Depositors can convert their billions of dollars in savings
trapped in banks since December into bonds under the plan, which
would "rebuild a financial system" near collapse.

Critics complained the plan makes the depositors wait for years
to get their savings back. However, Lavagna said it is the only
way to end the freeze without putting the tottering banking
system at risk.

"We are trying to spread the impact of the crisis in as fair a
way as possible," Lavagna said.

Argentina imposed a banking freeze on December 1 to prevent the
banking system from collapsing after depositors, who were fearful
for their savings in the growing financial crisis, began to drain
money out of checking, fixed deposit and other accounts in
November. Some US$19 billion poured out of the banking system in
the month leading up to the freeze.

Private analysts estimate some US$22.5 billion remains penned up
by the current conditions, inspiring near daily protests by
people demanding their savings back.

BANCO FRANCES: Spanish Parent To Boost Capital
Banco Frances, Argentina's fifth-largest bank by assets, got a
much-needed financial lifeline after Spanish parent Banco Bilbao
Vizcaya Argentaria (BBVA) announced over the weekend that it has
come to help its ailing unit.

BBVA, Spain's second biggest bank BBVA (BBVA), said it would
increase Banco Frances' capital by converting US$209.3 million in
debt for equity.

"BBVA Banco Frances has reached an agreement with the Argentine
authorities to carry out a capital increase," the Spanish bank
said. "The operation does not imply any additional liquidity
injection by BBVA, nor will it have any impact on the parent
company, insofar as the debts are 100 percent provisioned."

About US$130 million of Banco Frances' subordinated negotiable
bonds held by BBVA would be swapped for shares in the Argentine
bank as would $79.3 million of a $150 million loan BBVA
previously made to the unit, according to a BBVA source.

In return, BBVA will increase its stake in Banco Frances to
around 75 percent from 67 percent, the source said.

The deal, pending approval from the Bank of Spain, the country's
central bank, will boost Banco Frances's capital adequacy and
solvency ratios.

Banco Frances recorded a loss of EUR4 million in the first
quarter of the year, compared to a profit of EUR53 million in the
previous year, BBVA said.

A BBVA official said then that the bank had at least ARS450
million (US$142 million) of liquidity at present, "sufficient for
us to look to the coming months calmly."

Having written down the value of its entire investment in
Argentina in December -- equivalent to about EUR1.3 billion --
the bank did not have to add more funds, the official said.

"We have made no additional provisions. There shouldn't be any
need for any more as long as we don't add capital or liquidity,"
he added.

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

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

CAMPOFRIO ALIMENTACION: Still Seeking Buyers For LatAm Assets
Spanish food company Campofrio Alimentacion SA continues in its
search for a buyer for its 40 percent stake in Argentine company
Campo Austral and 49-percent stake in the Dominican Republic meat
company Agrocarne SA.

"These markets which, in their day, were very attractive and
strategic, are no longer such for the Company," a Campofrio
spokesman said in an email.

"Both units (in Argentina and the Dominican Republic) lacked
enough size to be profitable, on top of operating - in the case
of Argentina - in a country where the economic conditions for
local producers are, in many cases, unsustainable," said
Banesto's Mata in a recent report. Campo Austral posted a loss of
EUR14.9 million last year, three times its loss in 2000. The
operation was also affected by strong competition from Brazilian
producers, he said.

"Given the tough times there, people weren't going to be paying
the premium for quality products, instead they'd go for the home-
brands," said Javier Quevedo, an analyst at Dresdner Kleinwort

Campofrio is still recovering after outbreaks of animal diseases
in Europe in 2001 led to high prices that it couldn't pass on to
consumers. The Company reported net profit of EUR25.7 million in
2001, with provisions of EUR40 million for Argentina and any
losses arising from disposals in the Americas.

          Avda Europea 24, La Moraleja
          E-28108 Madrid, Spain
          Phone: +34-91 484 2700
          Fax: +34-91 661 5345
          Home Page:
          Pedro Ballve Lantero, Co-Chairman
          Luis Serrano Martin, Co-Chairman
          Juan J. Guibelalde Inurritegu”, CEO and VP

          Calle 12 Lote 2 fracc.1
 Pilar (1629) Pilar
          Prov. de Buenos Aires
          Tel. (54-2322) 49-6202
          Home Page:

CTI HOLDINGS: S&P Drops Ratings On Suspended Payments
Standard & Poor's lowered its local and foreign currency
corporate credit ratings on Argentine wireless telecommunications
provider CTI Holdings S.A. (CTI) to 'D' from double-'C' and 'SD',
respectively. The downgrade follows the company's decision to
suspend principal and interests payments on financial debt as a
result of its financial situation and the economic and regulatory
environment in Argentina. Despite that, the company expects to be
able to continue funding its operations. CTI also announced that
it hired Houlihan Lokey Howard & Zukin Capital as a financial

As of March 2002, CTI's consolidated debt was $1,058 million,
including $262.848 million 11.63% senior deferred coupon notes
due in 2008 rated by Standard & Poor's. The notes are non-cash
pay until October 2003 and, therefore, remain current.

"CTI's funding ability has been impaired in light of the deep
macroeconomic crisis in the country; the devaluation of the peso,
which has created a dramatic mismatch between peso revenues and a
dollar-denominated debt burden; and lower shareholder support
from Verizon," Standard & Poor's credit analyst Marta Castelli

CTI's ownership structure changed in March 2002, after Verizon
International Holdings Ltd., a subsidiary of Verizon
Communications Inc., which previously held a 65.3% stake in the
company, transferred a 17.32% stake to a newly created trust for
CTI employees. As a result, CTI is no longer controlled by
Verizon nor is it consolidated into its financial statements.

Until late 2001, the ratings on CTI incorporated expectations of
financial support from its shareholder Verizon, which had been
significant in the past. However, the uncertainties in Argentina,
both economic and regulatory, and CTI's weakening financial
performance made shareholder support more unlikely and led to a
downgrade of CTI's ratings to double-'C' in December 2001. The
deconsolidation confirms the change in Verizon commitment towards
the Argentine operation.

CTI is an Argentine nationwide provider of mobile
telecommunication services. As of March 2002, the company had
about 1.1 million subscribers that represented about 17% of the
mobile customers in the country.

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

          Avda. Pte. Figueroa Alcorta 3259
          Ciudad de Buenos Aires
          Capital Federal
          Phone: 4809-8888
          Fax: 4809-8989
          E mail :

EDESUR: Earnings Slump Prompts S&P To Cut Parent's Ratings
Standard & Poor's lowered the ratings of Enersis SA and its
distribution unit Chilectra SA to `BBB+' from `A-'. The outlooks
for the companies remain negative.

The downgrades reflect Enersis' lower earnings from Argentina,
which could increase financing costs for South America's second-
largest electricity company.

Enersis' earnings and dividends from Argentina have dropped after
the country's January currency devaluation and the government's
decision to freeze energy prices reduced revenue at its Buenos
Aires distribution unit, Edesur SA.

Edesur, Enersis' biggest unit outside of Chile, saw its earnings
fall after the government switched energy prices to pesos from
dollars and froze them in an unsuccessful effort to curb
inflation. This led to a cut in the company's revenue as the
Argentine peso weakened 72 percent this year against the dollar.

The decline makes it more expensive for Edesur to pay foreign
debt, while a deepening recession also has reduced energy demand.

Edesur's operating income, which represented 18 percent of
2001 operating income at Enersis, fell by 80 percent in the first
quarter of 2002, the ratings agency said.

Enersis is a unit of Endesa SA of Spain.

          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos, 140, 3o 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: Chairman Warns of "Critical" Position
Sir John Bond, chairman of HSBC Holdings Plc, Europe's biggest
bank by market value, warned shareholders that the Company is in
a "critical" position in Argentina and faces a "subdued" economy
in Hong Kong, reports Bloomberg.

At the Company's annual meeting in London, Bond told investors
that in Argentina, "our business is living hand to mouth."
HSBC was "conservative" when it set aside US$1.12 billion for
Argentina in 2001, and whether it increases "depends on the
government of Argentina, which is not a comfortable position."

HSBC earnings dipped due to potential losses from Argentina's
devaluation and US$95 billion debt default. The Company's 2001
profit fell 18 percent to US$5.41 billion, as it set aside
US$2.04 billion for bad loans, up from US$932 million in 2000.
Stagnating economic growth in Hong Kong, where the bank started
in 1865, also hurt earnings.

Net interest income was "resilient" in the first quarter of 2002
and bad debt charges, excluding Argentina, will be in line with
2001, Bond said.

"The main source of solace (for investors) was that provisions
were flattish on last year, excluding Argentina," said John-Paul
Crutchley, an analyst at Merrill Lynch & Co., who recommends
investors sell HSBC shares.

Sales of wealth management products "showed good growth," and
credit quality "remained stable," Bond said. HSBC's liquidity
position and capital ratios "remain strong."

          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

RURAL/METRO: Ratings Off Watch, S&P Affirms; Outlook Negative
Standard & Poor's removed its ratings on emergency medical
services company Rural/Metro Corp. from CreditWatch, where they
were placed with negative implications on Jan. 27, 2000. The
triple-'C' corporate credit, unsecured bank facility, and senior
unsecured note ratings are affirmed.

The ratings actions reflect Scottsdale, Ariz.-based Rural/Metro's
improving but still weak financial performance and cash flow, and
its ability to remain current on its required debt payments. The
outlook is negative. About $350 million of rated debt and bank
loans are affected.

"Rural/Metro still remains without a source of liquidity until
the situation with its bank agreement is resolved. The company's
minimal free cash flow provides little ability for reinvestment
in its existing business or in new growth opportunities,"
commented Standard & Poor's credit analyst David Peknay.

The risks associated with the company's lack of liquidity, weak
cash flow, and uncertainty regarding the eventual resolution of
the bank agreement issues, are adequately reflected in the
ratings and outlook. The negative outlook is in consideration of
any adverse implications of a resolution of the covenant
violation issues.

Rural/Metro has experienced weak operating performance and
limited financial flexibility. It has been affected by
reimbursement pressures, poor receivable collections, and turmoil
in Argentina.

Extensive efforts to improve its portfolio of service contracts,
operating efficiency, and cash collections have had a positive
impact. The company has been able to generate sufficient cash
flow to cover all its currentoperating and debt payment

Rural/Metro is a leader in the very fragmented emergency medical
services (EMS) industry, including ambulance and fire protection
services. The company provides services to over 400 communities
in 25 states, the District of Columbia, and Latin America.

Analyst: David P Peknay, New York (1) 212-438-7852

          8401 E. Indian School Road,
          Scottsdale, Arizona 85251
          Phone: 1-800-398-6263
          Home Page:
          Cor J. Clement, Chairman of the Board of Directors
          Jack E. Brucker, President and Chief Executive Officer
          Randall L. Harmsen, Vice President of Finance,
          Chief Accounting Officer and Corporate Controller


ANDERSEN: Bermuda Workers Bid Goodbye; Transfer to PWC
More than 20 workers of the embattled auditor Arthur Andersen's
unit in Bermuda punched the Company's clock for their last time
Friday. According to a report by the Bermuda Sun, the entire
staff, including senior partners, have been hired by rival

Global units of Andersen have struck merger deals with rivals
after the company was charged by the U.S. Justice Department with
destroying records related to its audits of fallen energy trader
Enron Corp.

In April, the 89-year-old Andersen announced that it would cut
7,000 jobs, slightly more than a quarter of its U.S. staff.
Still unknown is exactly how many staff in Bermuda the agreement
affected, but it is believed to be several dozen and includes the
company's partners.

Also unclear is whether the company's partners, Hunter and Gus
Hardart, are moving to the PricewaterhouseCoopers' offices in
Dorchester House.

"Our clients have been very loyal to us in this challenging
time," Hunter said in April. "I am confident that as a result of
this agreement, they can continue to be served in a seamless
manner by world-class professionals within an unsurpassed global

Hunter said the deal was not "a merger in the true sense".

DOV BERMUDA: Wolf Haldenstein Files Class Action Suit
Wolf Haldenstein Adler Freeman & Herz LLP has filed a class
action lawsuit in the United States District Court for the
Southern District of New York, on behalf of purchasers of the
common stock of DOV Pharmaceutical, Inc. ("DOV" or the "Company")
(Nasdaq: DOVP) pursuant or traceable to the Company's April 25,
2002 initial public offering (the "IPO") against defendants DOV,
certain of its officers and directors, and CIBC World Markets and
Lehman Brothers, the Underwriters of the IPO.

The case name and index number are Leffler v. DOV Pharmaceutical,
et al, (02 CIV 4138).  A copy of the complaint filed in this
action is available from the Court, or can be viewed on the Wolf
Haldenstein Adler Freeman & Herz LLP website at

The complaint alleges that defendants violated the federal
securities laws by issuing a materially false and misleading
prospectus pursuant to their IPO that had the effect of
artificially inflating the market price of the Company's

DOV sold 5 million shares in its IPO at a price of $13 per share
on April 25, 2002.  On that same day, the price of DOV shares
fell 33%, from $13 to $8.70 per share on trading of 5.6 million
shares (an amount in excess of the total of number of shares
offered in the IPO). Unbeknownst to the majority of the investing
public, after purchase commitments were obtained, the Company re-
filed its offering documents with the SEC to reflect a revision
of its 1999 financial results for a joint venture in Bermuda with
Elan Corporation. (Itself the subject of recent accounting
inquiries and related litigation.) The SEC suggested the Company
change the way it accounted for the initial funding for the
venture known as DOV Bermuda Ltd. The change caused a onetime
adjustment that widened the loss of the venture in 1999 to $11.9
million (from $10.2 million).

The Company issued a statement on April 26, 2002 that the
accounting change was not "material" to its business. The
investing public felt otherwise, however, as evidenced by the
stock price decline immediately following the IPO.  Even
following DOV's April 26, 2002 "explanation" of the effect of the
change, the price of DOV's stock did not materially recover and
has continued to trail downward.

          270 Madison Avenue
          New York, New York 10016
          Tel. (800) 575-0735
          Web site:
          Fred Taylor Isquith, Esq.
          Gregory Nespole, Esq.
          Gustavo Bruckner, Esq.
          Michael Miske
          George Peters
          Derek Behnke

DOV BERMUDA: DOV Pharmaceutical 1Q02 Results Show Bigger Loss
DOV Pharmaceutical, Inc. announced its results for the first
quarter ending March 31, 2002.

First Quarter 2002 Performance

For the first quarter of 2002, the Company reported a net loss of
$3.9 million, or $0.79 per share, compared with a net loss of
$1.8 million, or $0.37 per share, for the comparable period last
year. At March 31, 2002, cash, cash equivalents and short-term
investments totaled $11.4 million, which does not include
estimated net proceeds of $59.2 million from the Company's
initial public offering completed in April 2002. In addition, per
share loss amounts do not include the 5,000,000 shares issued in
the initial public offering.

The increase in net loss of $2.1 million for the first quarter
2002 over the first quarter of 2001 was primarily the result of
an increase in the Company's operating expenses of $1.3 million
as the Company advanced its products through clinical and
preclinical trials and the addition of new employees to support
the Company's expanded operations, as well as an increase in non-
cash interest expense of $668,000.

Recent Highlights

-- In April 2002, the Company initiated a Phase Ib multiple dose-
ranging clinical trial for DOV 216,303, our lead product
candidate for the treatment of depression.

-- In April 2002, the Company competed an initial public offering
of 5,000,000 shares of its common stock, at a price of $13 per
share, with estimated net proceeds to the Company of $59.2

-- In May 2002, the Company completed enrollment of its 750-
patient double-blind, placebo-controlled study comparing
bicifadine, our lead product candidate for the treatment of pain,
and codeine to placebo in a severe dental pain model.

"2001, and 2002 to date, has been a time of significant growth
and progress for DOV Pharmaceutical. We are pleased that our lead
product candidates continue to show strong clinical progress,"
said Arnold Lippa, Chief Executive Officer. "Our initial public
offering provides us with substantial resources for the further
advancement of our product candidates in clinical trials. Going
forward, the Company is focused on continuing to make
advancements with our product pipeline. We expect to have results
from our current clinical trial for bicifadine in the third
quarter of 2002. During the remainder of 2002, we intend to
initiate Phase III studies for bicifadine and DOV diltiazem, our
proprietary formulation for the treatment of angina and
hypertension. We also expect to complete the Phase II study
currently underway for ocinaplon, our product candidate for the
treatment of generalized anxiety disorder, as well as complete
the Phase Ib study for DOV 216,303 by the end of 2002."

DOV is a biopharmaceutical company focused on the discovery,
acquisition, development and commercialization of novel drug
candidates for central nervous system, cardiovascular and
urological disorders. The Company has five product candidates in
clinical trials addressing therapeutic indications with
significant unmet needs.

                       DOV PHARMACEUTICAL, INC.
                          BALANCE SHEET DATA

                          December 31, 2001 (1)   March 31, 2002

Cash and cash equivalents     $13,573,707          $11,365,222
Total assets                   18,080,029           17,589,511
Long-term debt                 12,795,675           13,041,966
Redeemable preferred stock     14,838,159           14,838,159
Total stockholders' deficit    18,036,159)         (20,919,102)

(1) Derived from the December 31, 2001 audited financial

                        STATEMENTS OF OPERATIONS

                                   Three Months Ended March 31,
                                         2001           2002

Revenue                                $416,667       $708,297
Operating expenses:
  General and administrative expense    657,064        818,803
  Research and development expense    1,065,189      2,251,730
    Loss from operations             (1,305,586)    (2,362,236)
Loss in investment in DOV Bermuda      (379,340)      (247,614)
Interest income                         110,952         61,228
Interest expense                       (242,379)      (910,585)
Other expense, net                           --       (422,702)
  Net loss                          $(1,816,353)   $(3,881,909)

Basic and diluted net loss per share     $(0.37)        $(0.79)

Weighted average shares used in computing
basic and diluted net loss per share  4,893,833      4,894,238

FOSTER WHEELER: Financing Facilities Waiver Extended
Foster Wheeler Ltd. announced that it has obtained further
extensions through June 30, 2002 of both its waiver under its
current revolving credit facility and the forbearance of remedies
for its lease financing facility. The company said that it is
continuing to negotiate with its bank lending group for a long-
term credit facility.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering, construction,
manufacturing, project development and management, research,
plant operation and environmental services. The corporation is
based in Hamilton, Bermuda, and its operational headquarters are
in Clinton, N.J.

         Media Contact:
         Alastair Davie, 908/730-4444
         Shareholder Contact:
         John Doyle, 908/730-4270
         Other Inquiries: 908/730-4000
         Web site at

GLOBAL CROSSING: Analyst Grubman Influenced Corporate Decisions
Jack Grubman, Salomon Smith Barney's embattled telecommunications
analyst, was instrumental in the making of key management and
business decisions at Global Crossing Ltd. for two years after
the Bermuda-based firm went public in August 1998, the Wall
Street Journal reports.

According to sources familiar with the matter, the analyst
personally recommended the appointment of a former Global chief
executive, Robert Annunziata. He also helped Global hammer out
merger agreements with telephone firms Frontier Corp. and U S
West Inc. Furthermore, Mr. Grubman also counseled Gary Winnick,
Global's chairman, on the executive's own stock sales.

These activities by Mr. Grubman may lend support to New York
State Attorney General Eliot Spitzer's investigation into
conflicts of interest among research analysts. Mr. Spitzer has
already asked for and received Mr. Grubman's self evaluations,
written for his employer, Citigroup Inc.'s Salomon Smith Barney
unit, to determine whether his bonuses were tied to his role as
an adviser, rather than as an analyst, in mergers and other

          Press Contacts
          Cynthia Artin
          +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

STIRLING COOKE: Replaces Andersen With KPMG
As recommended by its Audit Committee and Board of Directors,
and as approved by its shareholders at the Annual General
Meeting on May 23, 2002, Stirling Cooke Brown Holdings
engaged KPMG LLP, to replace Arthur Andersen LLP, to serve as
its independent auditors for the fiscal year ended December
31, 2002, effective as of May 23, 2002.

Andersen's reports on Stirling Cooke's consolidated financial
statements for each of the years ended December 31, 2001 and
December 31, 2000 did not contain an adverse opinion or
disclaimer of opinion, nor were they qualified or modified as
to uncertainty, audit scope or accounting principles.

During Stirling Cooke's two most recent fiscal years and
through the date of this Form 8-K, there were no
disagreements with Andersen on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedure which, if not resolved to
Andersen's satisfaction, would have caused them to make
reference to the subject matter in connection with their
report on Stirling Cooke's consolidated financial statements
for such years; and there were no reportable events.

During its two most recent fiscal years and through the date
of this Form 8-K, Stirling Cooke did not consult KPMG with
respect to the application of accounting principles to a
specified transaction, either completed or proposed, or the
type of audit opinion that might be rendered on its
consolidated financial statements, or any other matters or
reportable events.

To see Stirling Cooke's latest financial statement:

CONTACTS: Stirling Cooke Brown Holdings
          Victoria Hall, Third Floor
          11 Victoria Street
          Hamilton, HM 11, Bermuda
          Phone: (441) 295-7556


AUSDRILL LIMITED: To Close Chilean Operations
Ausdrill advises that an orderly withdrawal and closure of its
Chilean operations will commence immediately. The decision to
withdraw from Chile, the last remaining operation in the South
American region, has not been taken lightly but is considered
necessary given the recent history of its trading losses and with
no imminent signs of improvement of the Chilean market in the
short to medium term.

The Company claims a number of measures have been taken over the
past few years to improve the trading performance of the Chilean
operations.  Although these measures have made an impact, the
inconsistency of work in the region and the competitive tendering
for new work does not allow the Chilean operations to produce
ongoing results acceptable to the board and shareholders.

A number of key items of equipment and related consumables and
spare parts will be repatriated to Australia where they will be
fully utilized by the Kalgoorlie operations while the balance
will be sold in country. Initial forecasts predict that the
proceeds from the sales of equipment and consumables together
with the cash resources in Chile will be sufficient to fund the
closure process and be both cash and profit neutral.

Please contact the Managing Director, Mr. R Sayers for any
further information.

          170 Kewdale Road
          WA 6105
          Phone: 08 9353 3055
          Fax: 08 9353 1953
          Home Page:

          Santa Beatriz 126
          Santigo, Chile,
          Phone: 56-2-236-1446
          Fax: 56-2-236-0652
          Peter Wright, General Manager Ausdrill-South America


AES GENER: Renegotiates $335.6 Million In Debt With 20 Banks
AES Gener SA, Chile's third-biggest energy generator, was able to
renegotiate with 20 banks, including Bank of America Corp.,
US$335.6 million of debt that its Colombian unit Chivor SA
defaulted on in late December, reports Bloomberg. As a result,
Chivor's debt owed to the banks will now be due at the end 2006.

AES Gener, a unit of Arlington, Virginia-based AES Corp., said
that Chivor will have to take steps to refinance the debt by
selling bonds or other financing by 2004.

AES Gener lost CLP5 billion (US$7.5 million) last year, in part
as costs rose at Chivor. Writing down the value of businesses in
South America also added to a US$313-million first-quarter loss
at AES.

Already, its investments in Latin America now total US$7 billion,
including its purchase of AES Gener at end 2000.

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

          CHIVOR S.A. E.S.P.
          Bogota, Distrito Capital
          Cl 98 22-64 Of 518
          Tel: (57) (1) 6236660 - Fax: (57) (1) 6236837

VALORES BAVARIA: Plans To Offload Avianca In Restructuring
Embattled Colombian conglomerate Valores Bavaria announced plans
to eventually divest Avianca, which it considers as non-strategic
investment, as part of an ongoing radical restructuring, says Dow

Javier Aguirre, Valores Bavaria's chief executive officer,
revealed that the ailing airline was responsible for two-thirds
of the publicly-traded Valores Bavaria's COP958-billion
($1=COP2325) net loss last year. Avianca represents around one-
fifth of revenue at the conglomerate, which boasts nearly US$1.5
billion in annual sales and significant stakes in almost three
dozen companies.

Valores Bavaria merged the operations of Avianca and its
subsidiary Sam earlier this month with fellow Colombian airline
Aces. The merged airline, Summa, commands 67 percent market share
in Colombia and hopes to halve its combined losses to around
US$80 million this year.

Aguirre, who took office at Valores Bavaria in January, said the
planned divestment is more of a long-range project given the
small number of potential suitors in the troubled industry right

In the near term, Valores Bavaria will try to capitalize on
around US$90 million in synergies from the airline merger while
continuing to talk with other potential partners in a bid to make
Summa profitable.

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

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

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

D O M I N I C A N   R E P U B L I C

SMITH-ENRON: President Slams US$4M/mo. Bill from Defunct Plant
Dominican Republic's President Hipolito Mejia complained about a
contract that obliges the government to pay US$4 million a month
to Smith-Enron, despite the Company's power plant being closed,
reports DR1 Daily News.

The plant is shut down because it costs the state more to buy
power from the plant than to keep it closed. But the contract,
which was signed in 1994 during the Balaguer administration,
obliges the state to pay a fee per installed capacity, regardless
of whether purchasing power or not.

Just recently, the U.S. Maritime Administration revealed in a
letter that the U.S. government and Enron Corp. each own a stake
in the cash-strapped Dominican Republic power plant.

The federally guaranteed plant has debts of US$27 million and has
"significant operational, profitability and debt service
problems," Bruce J. Carlton, the acting deputy director of the
administration, had written.

According to Carlton's letter dated May 22, the project near
Puerto Plata in the Dominican Republic suffered from power plant
defects and from an unreliable payment history with its primary
customer, a government-owned utility.


GEOMAQUE EXPLORATIONS: Loss Shrinks, Production Up In 1Q02
Geomaque Explorations Ltd. announced consolidated financial and
operating results for the three months ended March 31, 2002.

The loss for the three months ended March 31, 2002 was $762,000,
or $0.01 per share, versus a loss of $1,146,000 or $0.02 per
share for three months ended March 31, 2001. Operations in the
first quarter of 2002 reflect the transition period from Pad 1 to
Pad 2 at the Vueltas Mine in Honduras, whereas operations in the
first quarter of 2001 reflect preproduction at the Vueltas Mine
and declining production at the San Francisco Mine in Mexico. Due
to these factors, comparisons between the periods are not

Vueltas Mine

Production at the Vueltas Mine totaled 5,277 ounces of gold for
the first three months. The price realized on gold sales was $290
per ounce. All of the production came from Pad 1 despite the fact
that loading of ore on this pad was stopped in November of 2001
due to problems with this pad. A new Pad 2 was completed, and
mining commenced, in February of 2002. Initial recoveries from
Pad 2, subsequent to the end of the quarter, are showing a marked
improvement. With the expected increased production from Pad 2,
combined with an improvement in the gold price, positive cash
flows should be the second quarter.

Capital expenditures, principally for the construction of Pad 2
at the Vueltas Mine, totaled $284,000 during the quarter.

A $70,000 drilling program is currently underway at the Vueltas
Mine, with the objective of converting existing resources
adjacent to the existing pit into additional ore reserves.

San Francisco Mine

The solution coming off the heap was processed to recover 174
ounces of gold. The last gold pour from this operation was made
in May 2002. The solution is now meeting the Mexican
environmental criteria for water discharge and final governmental
approval for water discharge is expected soon. This is the final
step in the decommissioning of the heap leach at this mine.
Although there are no further reserves at the San Francisco Mine,
there are still substantial resources, which could become
reserves at higher gold prices. The current resource is
51,235,000 tonnes at 0.61 g/t gold or 998,000 ounces.

Marathon Palladium Project

The Company can earn a 50% interest in the Marathon Palladium
Project near Marathon, Ontario by spending a total of $1.8
million on exploration and development of the property by
November 2004. No further work was done on this project during
the quarter. A total of $643,000 has been spent to March 31,
2002, which is in excess of the requirements to that date.

Financial Condition

The Company's cash position at March 31, 2002 amounted to
$341,000 compared to $614,000 at December 31, 2001. The working
capital deficit of $169,000 at March 31, 2002, compared to
$63,000 at December 31, 2001. In February 2002, the second
tranche, amounting to $997,792, of a private placement of common
shares was received. By the end of the first quarter, gold
production increased with gold pours now being completed every
week. Gold prices have improved significantly. Management
believes that cash resources are adequate to meet the Company's
obligations until the Vueltas Mine is successfully generating
positive cash flow.

          John W. W. Hick, President and CEO
          TEL:  (416) 956-7470
          Web site:


AEROMEXICO: Workers Accept Salary Hike Offer, Cut Strike Short
The Flight Attendants Union (ASSA) on Saturday agreed to accept
Aeromexico's offer of a 6.6-percent pay hike and a 1.12-percent
increase in benefits, thereby ending a strike, which began Friday

Originally, Aeromexico had offered a 5.12 percent general salary
increase. However, the workers demanded 5.5 percent plus an
additional 2.5 percent in benefits.

The union's secretary-general, Arturo Aragon, said the final
proposal was submitted to the flight attendants and a new labor
agreement was signed, effectively ending the strike Saturday

The agreement averted the cancellation of at least 250 daily
flights and company losses calculated at US$4.5 million.

CINTRA: Merrill Lynch To Advise On Sale Of Two Airlines
Merrill Lynch & Co., the third-largest global mergers and
acquisitions adviser, won a mandate to manage the sale of state-
owned airlines, AeroMexico and Mexicana, according to a report by

Controlled by a holding company Cintra SA, the state-owned
airlines, which account for 75 percent of domestic air travel in
Mexico, are to be sold separately.

Among the companies expressing interest in acquiring them are
Delta Air Lines Inc., AMR Corp.'s American Airlines Inc. and
Continental Airlines Inc., said Francisco del Cueto, a spokesman
for Cintra.

The holding company, whose share last traded May 10 at MXN3.9,
has a market value of MXN3.8 billion (US$399 million).

Cintra was created in 1996 to own the airlines after they
defaulted on loans and creditors exchanged the bad debt for an
equity stake. The government-backed bank bailout agency, created
in 1995, bought the bad debt from the creditors and became
Cintra's majority shareholder.

To see Cintra's financial statements:

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

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

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

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

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

IMEXSA: S&P Drops Export Trust Rating to 'D' After Nonpayment
Standard & Poor's lowered its rating on the structured export
certificates of Imexsa Export Trust No. 96-1's (Imexsa), a
subsidiary of Ispat International N.V., to 'D' from double-'C',
following the nonpayment of almost all of the scheduled principal
payments due on May 31, 2002.

The payment default reflects the fact that Imexsa has concluded
restructuring discussions with the holders of its structured
export certificates. The restructuring entails a moratorium on
all principal repayments until 2003. Although Imexsa will
continue to make interest payments to investors, Standard &
Poor's views the restructuring as a transaction default due to
the coercive nature of the exchange--investors have little choice
but to accept it--and because investors will not receive full and
timely payment of the originally scheduled debt service.

The structured export certificate transaction was based on a
long-term supply contract between Imexsa and Mitsubishi Corp., in
which the latter is required to purchase enough shipments of
steel slabs from Imexsa at the then prevailing market price to
cover 1.3 times the maximum debt service for each quarterly debt
service period. Lately, Imexsa stopped shipping any steel slabs
to Mitsubishi, which constituted a breach of a transaction

Like most future flow transactions, Standard & Poor's considered
the local currency rating of Imexsa as the best proxy for the
likelihood that Imexsa will continue operating and thus exporting
steel slabs for delivery to Mitsubishi Corp., and thus the rating
on the certificates has always reflected Imexsa's local currency
rating. The structured export certificates entered into early
amortization after being downgraded to double-'B'-minus from
double-'B' on Nov. 23, 2000.

In the past year, Imexsa has faced difficult steel slab market
conditions, high energy prices that have reduced its profit
margins, and a strike that lasted from Dec. 20, 2001, until Jan.
17, 2002, which caused the stoppage of all production of the
steel slabs that constitute the securitized assets.

          Juan J Flores, (52) 55-5279-2020
          Federico Mora, (52) 55-5279-2036
          Standard & Poor's, London
          Olivier Beroud, (44) 20-7826-3508


BANCO ALEMAN: Gets $15 Million From Owners
Paraguayan bank Banco Aleman, which has suffered deposit flight
in the last two weeks amid widespread rumors suggesting financial
distress, will get a financial shot in the arm from its parent,
South American business group Velox.

The group is prepared to put a total of US$15 million into its
Paraguayan unit. Half of the amount to be issued on June 3 and
teh balance a month later.

The central bank said it had offered a US$14-million line of
credit to Aleman and the bank had put up US$30 million worth of
first-rate loans as a guarantee. Aleman has 60 days to decide
whether to tap the credit line.

The rumors surrounding the bank stem from problems at local
financial group Grupo Inversiones Guarani, whose name is similar
to that of Aleman subsidiary Cambio Guarani.

However, rumors, according to a central bank spokesperson, have
died down and on Thursday, "Paraguay's strongest bank" registered
a positive balance (more money going in than going out).

          Estrella Esquina 14 de Mayo
          Asuncion, PARAGUAY
          Tel: (59521) 418 3000
          Fax: (59521) 447 645
          Home Page:
          Juan Peirano, Presidente
          Ricardo Castillo Fracchia, Vice President

          GRUPO VELOX
          Burgos 80, piso 5, Of. 501
          Las Condes
          Santiago, chile
          Phone: 208-8380
          Fax: 208-8332
          Home Page:


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
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Information contained herein is obtained from sources believed to
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