TCRLA_Public/020605.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

           Wednesday, June 5, 2002, Vol. 3, Issue 110



ANDERSEN: Delaying Settlement Will Increase Payments Due
FLAG TELECOM: Milberg Weiss Extends Class Period in Suit
GLOBAL CROSSING: Reclaiming Creditors' Confidence
GLOBAL CROSSING: Second SEC Probe Targets Execs' Stock Sales

TYCO INTERNATIONAL: Kozlowski Steps Down; John Fort Steps In
TYCO INTERNATIONAL: Shtock Pressure Continues After CEO Quits
TYCO INTERNATIONAL: CIT Group Ratings Remain on CreditWatch


ADELPHIA SA: Unaffected By Parent's Pending Bankruptcy Filing
BCI: America Movil Buys Interest in Telecom Americas
PREVI FUND: Government Intervenes; Executives Ousted


EDT: Future Disposition Remains Obscured By Indecision


BANCA QUADRUM: IPAB Covers 98% Of Payment Requests
CORPORACION DURANGO: Moody's Downs Sr. Notes; Outlook Negative

GRUPO BITAL: Regulators Demand Prompt Decisions From SCH
GRUPO MEXICO: Shares Dip On SPCC Reduced Earnings Forecast
GRUPO TMM: Signs Contract For Container Movements In Manzanillo

     - - - - - - - - - -


ANDERSEN: Delaying Settlement Will Increase Payments Due
Arthur Andersen LLP had until Tuesday to pay off a US$217-million
settlement with investors in the failed Baptist Foundation of
Arizona -- the largest non-profit bankruptcy in history, says AP.

The settlement, agreed to in May, resolves civil cases against
Andersen relating to the firm's audit work for the collapsed
Baptist foundation and pending cases brought by state regulators
and the Arizona attorney general's office.

In that same month, Andersen made an initial payment of US$11.3
million and had until Tuesday to pay the rest and avoid interest

In the event that Andersen fails to make it to the deadline,
Maricopa County Superior Court Judge Edward Burke is scheduled to
issue a judgment against Andersen on Wednesday to enforce the
settlement and set a payment schedule.

The revised schedule involves six payments with increasing
interest rates, culminating in a final installment on October 25.
Should the firm fail to make a payment, Andersen would lose its
Arizona accounting license and be responsible for paying off the
settlement, said Tim Nelson, an assistant attorney general.

Andersen backed out of an earlier $217 million settlement, saying
its insurance company, the Hamilton, Bermuda-based Professional
Services Insurance Co., couldn't afford to pay it. The firm then
agreed to the new deal one week into a trial where the
foundation's trust sought US$150 million in compensatory damages
and more in punitive damages.

FLAG TELECOM: Milberg Weiss Extends Class Period in Suit
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP
announces that a class action lawsuit was filed on behalf of
purchasers of the shares of FLAG Telecom Holdings, Ltd. between
February 16, 2000 and February 13, 2002, inclusive.

A copy of the complaint filed in this action is available from
the United States District Court, Southern District of New York,
located at 500 Pearl Street, New York, NY.

The Complaint alleges that defendants violated Sections 11,
12(a)(2) and 15 of the Securities Act of 1933 by issuing a
materially false and misleading Registration Statement and
Prospectus (collectively, "Prospectus") in connection with the
Company's initial public offering, and violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, by issuing a series of material
misrepresentations to the market between February 16, 2000 and
February 13, 2002, thereby artificially inflating the price of
FLAG shares.

Specifically, the complaint alleges that the Prospectus was
materially false and misleading because, among other things, it
contained statements which led investors to believe that there
was a huge demand for the Company's Atlantic cable system, when,
in fact, the Company had been marketing its Atlantic cable system
with minimal success. Additionally, throughout the Class Period,
as alleged in the complaint, FLAG was experiencing diminishing
revenue growth. The complaint alleges that in order to create the
impression that FLAG was continuing to experience growth, the
Company engaged in a series of reciprocal transactions with
certain competitors for the purchase and sale of dark fiber optic
cable -- the so-called dark fiber swap. The complaint alleges
that as a result of these transactions, FLAG artificially
inflated its operating results and materially misrepresented its
financial results at all relevant times.

Purchasers of FLAG shares between February 16, 2000 and February
13, 2002 you may, had until June 3, 2002, to request that the
Court appoint them as lead plaintiff.

Contact:  Milberg Weiss Bershad Hynes & Lerach LLP
          Steven G. Schulman or Samuel H. Rudman
          One Pennsylvania Plaza, 49th fl.
          New York, NY, 10119-0165
          Phone number: (800) 320-5081


On April 12 and April 23, 2002, FLAG Telecom Holdings Limited and
certain of its subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy Court for the Southern
District of New York. Also, FLAG Telecom Holdings Limited and the
other companies continue to operate their businesses as Debtors
In Possession under Chapter 11 protection.

FLAG Telecom Holdings Limited and certain of its Bermuda-
registered subsidiaries - FLAG Limited, FLAG Atlantic Limited and
FLAG Asia Limited - filed parallel proceedings in Bermuda to seek
the appointment of provisional liquidators to obtain a moratorium
to preserve the companies from creditor actions. Provisional
liquidators were appointed and part of their role is to oversee
and liaise with the directors of the companies in effecting a
reorganization under Chapter 11.

          John Draheim, VP Corporate Services
          Phone: +44 20 7317

          David Morales, VP Corporate Finance & Investor
          Phone: +44 20 7317 0837

          Brunswick Group
          Mike Buckley
          Phone: 212/333-3810

GLOBAL CROSSING: Reclaiming Creditors' Confidence
A move by Global Crossing's creditor committee last week to put
an end to investment talks with Hutchison Whampoa and Singapore
Technologies Telemedia is a sign that the Company's lenders are
slowly showing confidence in the bankrupt firm's operational
abilities, suggests Telephony.

Upon its bankruptcy filing in late January, Global Crossing
disclosed a letter of intent under which Whampoa and STT would
invest a combined US$750-million in the carrier in exchange for
controlling interest.

That deal was never finalized, however. Global Crossing CEO John
Legere claimed that the Company's operational turnaround
coincided with his appointment in October 2001.

According to Legere, Global Crossing has cut its cash burn rate
to US$6 million per month in April, giving it US$913 million in
the bank at the end of the month.

"There's virtually no cash burn," Legere said. "Throughout this
period of action, we've maintained customer retention 10 percent
to 15 percent higher than we expected."

Operating expenses are expected to be down 42 percent year over
year to US$900 million for 2002. In addition, the carrier's 2002
capital expenditure budget is anticipated to be less than US$200
million, compared with US$3.2 billion in 2001.

Those developments, along with the 60 parties that Global
Crossing said are interested in buying its network, make the $750
million offer inadequate, the creditors committee said. Now an
auction of the carrier's assets is scheduled for July 8.

The creditors may be expecting too much from the auction, though.

"They've already demonstrated their judgments on a lot of these
matters," said Frank Barbetta, senior analyst for global carriers
with Probe Research. "I would be skeptical of whether they know
what they're doing."

GLOBAL CROSSING: Second SEC Probe Targets Execs' Stock Sales
The Securities and Exchange Commission, which is currently
investigating Global Crossing's accounting practices, kicked off
another probe concerning the bankrupt Bermuda-based firm's stock

According to a Wall Street Journal report, the SEC has authorized
investigators to probe the stock sales and purchases of officers
of Global Crossing. The matter was raised after Global Crossing's
insurance carrier, Federal Insurance Co., noted it in a May 28
bankruptcy-court filing.

The Journal reveals that Global Crossing executives sold more
than US$1.3 billion of stock between 1999 and the end of last
November. The chief beneficiary of the executive sales was Global
Crossing founder and current Chairman Gary Winnick, who sold
about US$735 million in stock in three separate transactions in
1999, 2000 and 2001. The first two sales, in June 1999 and April
2000, were related to a secondary offering and a tender offer in
connection with a planned merger, respectively.

          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

TYCO INTERNATIONAL: Kozlowski Steps Down; John Fort Steps In
In an official company statement, Tyco International Ltd.
announced that L. Dennis Kozlowski resigned as Chairman and Chief
Executive Officer for personal reasons. Mr. Kozlowski also
stepped down from the Board of Directors.

At the request of Tyco's Board, John F. Fort has agreed to assume
primary executive responsibilities during an interim period while
a search for a permanent replacement is completed. All operating
units and corporate staff will report through Mr. Fort.

Mr. Fort has been associated with Tyco for over 28 years. He held
the post of Chairman and CEO for 10 years, from 1982 until 1992.
Since 1992, he has been an active member of the Board and he is
currently the lead director. This position acts as the primary
liaison between management and the outside directors.

The Board reaffirmed its commitment to the complete monetization
of CIT, Tyco's financial services subsidiary, and to a
significant reduction in the amount of debt.

"We plan to complete the IPO of CIT by the end of June,"
commented Mr. Fort. "Also, I fully support the evolution of the
Company's long-term operating strategy to focus more on organic
growth. We will continue with our plans to make Return on Capital
a key part of our compensation system along with earnings growth
and cash flow."

Mr. Fort continued, "During his tenure, Dennis Kozlowski grew
Tyco to a $36 billion manufacturer and service provider operating
in over 100 countries. We wish him well and thank him for his
contributions. Looking forward, Tyco's strong fundamental
businesses and talented workforce position the Company to
continue to prosper in the years ahead."

CONTACT:  R. Jackson Blackstock
          Investor Relations
          Phone: +1-212-424-1344
          J. Brad McGee or Peter Ferris
          Media Relations
          Phone: +1-212-424-1300

TYCO INTERNATIONAL: Shtock Pressure Continues After CEO Quits
Analysts expect shares of Tyco International Ltd to remain under
pressure following the abrupt departure of chief executive Dennis
Kozlowski. The latest news in a series of negative reports that
have battered Tyco shares since early this year.

Kozlowski's resignation comes amid criticism of the company's
shifting strategy and a report of a criminal probe into suspected
personal tax evasion.

Meanwhile the Company continues to prepare for the initial public
offering of its CIT finance arm, a deal that expected to raise at
least US$5 billion. The CIT monetization is viewed as crucial for
Tyco as it struggles to reduce debt and bolster liquidity.

"This doesn't add to the stability or visibility which would make
investors want to buy shares in the offering," said Prudential
Securities analyst Nicholas Heymann.

Salomon Smith Barney analyst Jeffrey Sprague cut his rating on
Tyco by two notches to 'neutral' from 'buy' and said the news has
broader implications for the troubled company.

TYCO INTERNATIONAL: CIT Group Ratings Remain on CreditWatch
Standard & Poor's said Tuesday that its ratings on Tyco
International Ltd. and its industrial subsidiaries as well as
those of commercial finance subsidiary The CIT Group Inc., remain
on CreditWatch with developing implications following the
company's announcement that Dennis Kozlowski has resigned as
chairman and CEO and stepped down from the board of directors.

John Fort, a former Tyco chairman and CEO and current board
member, will assume primary executive responsibilities on an
interim basis. Kozlowski's resignation is reportedly for personal
reasons, and no other senior management changes are expected.

Developing implications means that ratings could be raised,
lowered, or affirmed. The ratings on Tyco could be raised to
triple-'B'-plus if: The planned IPO of CIT is successful or CIT
is sold to a third party for cash; Tyco uses proceeds to reduce
debt; The company expands availability under its bank lines; Tyco
appoints a new CEO who is committed to a business and financial
profile consistent with a higher rating; and Industry and
competitive conditions do not worsen.

The board has reiterated its commitment to the complete
monetization of CIT and significant debt reduction, and Mr. Fort
has said that he supports a focus on organic growth. These would
all be positive factors for credit quality.

If Tyco does not sell CIT, it would have to seek alternative
financing arrangements to meet financial obligations in calendar
2003, heightening refinancing risk. The inability to access
capital markets could result in a ratings downgrade.

If CIT separates completely from Tyco and maintains financial
strength, profitability, and asset quality at current levels, or
is acquired by a financially stronger company, the ratings of CIT
are likely to be raised. However, CIT's ratings could be lowered
if Tyco's ratings are lowered or if CIT is sold to a third party
with a lower credit rating.

Hamilton, Bermuda-based Tyco is a diversified company with total
debt of about $27 billion. New York, N.Y.-based CIT is major
provider of commercial financial services with total debt of
about $34 billion.

To see financial statements:

          Media Relations:
          J. Brad McGee or Peter Ferris

          Investor Relations:
          R. Jackson Blackstock
          Home Page:

          CTI Group (Holdings), Incorporated
          333 North Alabama Street
          Suite 240
          Indianapolis, IN. 46204-1767
          Home Page:
          Contact: Brad Houlberg, Chief Executive Officer


ADELPHIA SA: Unaffected By Parent's Pending Bankruptcy Filing
The US company Adelphia Communications Corporation's (Adelphia)
imminent bankruptcy filing will not affect its subsidiary in
Brazil, according to a Gazeta Mercantil report.

Adelphia, which is close to filing for Chapter 11 bankruptcy
protection in the United States due to massive debts, owns
Adelphia S.A. in Brazil. The unit operates cable TV services
through ViacaboTV.

According to Adelphia, the subsidiary will not be affected by its
expected bankruptcy filing because the unit does not depend on
the parent.

Adelphia has 30,000 subscribers in 15 cities and invested around
US$40 million to structure a chain allowing it to serve 400,000
residences in Brazil.

The Company faces pressure from lenders to file delinquent
financial reports including its annual 10-K statement, overdue
since April 1, as it attempts to account for off-the-books debt
now estimated at more than US$3 billion.

The stock was due to be delisted in Nasdaq on Monday because of
failure to file the reports. The delisting would entitle
convertible bondholders to exercise a put option, turning them
back in and demanding cash from Adelphia.

"I think this raises the likelihood that they will be forced to
seek bankruptcy protection," said Joe Galzerano, a high-yield
telecommunications analyst for CIBC World Markets.

          1 N. Main St.
          Coudersport, PA 16915-1141
          Phone: 814-274-9830
          Fax: 814-274-8631
          Toll Free: 800-892-7300
          Home Page:
          Karen Chrosniak, Director of Investor Relations
          Phone: 1-877-496-6704

          Tel: 55-11-818-0926
          Fax: 55-11-818-0924

          Rua Carlos Appel 53  -  Centro
          Brusque - SC  -  88350150
          Phone: (47) 351 1982
          Home Page:

BCI: America Movil Buys Interest in Telecom Americas
In an official company press release, BCI announced the following
highlights of its latest transaction:

-- America Movil to pay approximately US$366 million for BCI's
interest in Telecom Americas

-- BCI to be released from US$250M of Telecom Americas related

-- BCI to seek approval for Plan of Arrangement to commence
winding up of the Company

Bell Canada International Inc. ("BCI") today announced that it
has reached a definitive agreement for the sale of 42% of the
common shares (39% giving effect to the conversion of preferred
shares held by a financial investor) of Telecom Americas Ltd.
("Telecom Americas") to America Movil S.A. de C.V., of Mexico
("America Movil").

The terms of the transaction include:

-- Payment by America Movil of US$146 million in cash and a
US$220 million interest-free note due on March 1, 2003

-- Release of BCI from US$250 million of guarantees relating to
Telecom Americas (i.e Tess Notes and ATL indemnity)

-- Closing is expected by August 9, 2002

-- Prior to closing, America Movil will provide a minimum of
US$200 million of new funding to Telecom Americas at which time
America Movil will obtain effective control of Telecom Americas
Acting as Advisor to BCI, Salomon Smith Barney has provided a
fairness opinion on the consideration being received in
connection with the sale of BCI's interest in Telecom Americas.

BCI has obtained the required approval from lenders under its
C$230 million bank credit facility to conclude this transaction.
Effective immediately, the credit facility is reduced to C$200
million and its maturity date advanced from March 2003 to August
9, 2002, at which time the facility will be repaid in full and

BCI will seek approvals for a court supervised Plan of
Arrangement pursuant to which BCI will conclude the sale of its
interest in Telecom Americas; proceed with the disposition of its
remaining assets in an orderly fashion; and seek expeditious
resolution of outstanding claims in order to accelerate final
distributions to BCI stakeholders. According to the company,
using the Plan of Arrangement provisions of the Canada Business
Corporations Act is an efficient way for a solvent company, such
as BCI, to proceed in the circumstances.

During July 2002, BCI will hold meetings of its common
shareholders and holders of its 11% notes due September 2004 to
obtain the required approvals for the Plan of Arrangement. BCI
has been informed that BCE intends to vote its shares in favour
of the Plan of Arrangement.

BCI, through Telecom Americas, holds interest in 4 Brazilian B
Band cellular companies serving more than 4.5 million subscribers
in territories of Brazil with a population of approximately 60
million. BCI is a subsidiary of BCE Inc., Canada's largest
communications company. BCI is listed on the Toronto Stock
Exchange under the symbol BI and on the NASDAQ National Market
under the symbol BCICF. The company's Web site is at

          Marie-Lise Gauthier, 514/392-2318

          AMERICA MOVIL, S.A. de C.V.
          Lago Alberto 366, Colonia Anahuac
          11320 Mexico, D.F., Mexico
          Phone: +52-55-5703-3390
          Fax: +52-55-5545-5550
          Home Page:
          Carlos Slim Helu, Chairman
          Daniel Hajj Aboumrad, CEO
          Carlos J. Garcia Moreno Elizondo, CFO

          388 Greenwich Street
          35th Floor
          New York, NY 10013
          Home Page:
          Phone: (212) 816-6000
          Fax: (212) 816-7020
          Richard G. Spiro, Global Head of Insurance Group
          Phone: (212) 816-2170
          Fax:(212) 816-5990

          Williams Johns, Managing Director
          Phone: (212) 816-8782
          Fax: (212) 816-7020

PREVI FUND: Government Intervenes; Executives Ousted
Brazil's Social Security Ministry, headed by Jose Roberto Savoia,
has placed Latin America's largest pension fund, Caixa de
Previdencia dos Funcionarios do Banco do Brasil (PREVI), under

The Brasilia-based fund is caught up in a power struggle
involving its parent bank, Banco do Brazil SA, the government and
unions. PREVI faces a hole in its current account of about BRL2
billion (US$790.2 million).

As a part of the intervention, executives were thrown out and had
their accounts frozen. PREVI President Luiz Tarquinho Sardinha
Ferro was removed from office and Carlos Eduardo Esteves Lima, a
former subsecretary of the Social Security Ministry, was
installed in his place.

The 98-year-old fund runs the pensions of some 123,000 Banco do
Brazil workers and had about BRL38 billion in assets while
boasting a surplus of BRL11.9 billion in 1997.

The government's court-sanctioned intervention calls on the fund
to adhere to new laws demanding changes to PREVI's boards.

Fund directors were unwilling to change PREVI's structure -- a
move that would effectively lead to equal representation between
the unions and the government on the fiscal and decision-making
boards and give the president an overriding vote in a deadlock.

          DO BRASIL
          Praia de Botafogo 501 - 3§ E 4§ and
          Rio de Janeiro
          Phone: (21) 3870-1030
          Home Page:

          SBS Edificio Sede III, 24th Fl.
          70089-900 BrasĦlia, D.F., Brazil
          Phone: +55-61-310-3406
          Fax: +55-61-310-2563
          Home Page:
          Contact: Marco Geovanne Tobias da Silva, IR Manager
          Phone: 61-310-5920


EDT: Future Disposition Remains Obscured By Indecision
The future of the intervened Colombian telco Empresa Distrital de
Telecomunicaciones de Barranquilla (EDT) still hangs in the
balance. Colombia's public services regulator is considering
liquidation, a move expected to require COP579 billion (US$249

However, liquidation seems very unlikely at this point, as the
government has already said it won't contribute any more money to
the process. Another option being considered is an acquisition of
EDT by another company.

"There could be a merger with other firms, with Metrotel, EPM,
ETB, Alcatel, Telecom or other international firms, but we must
closely examine the situation and what options we have,"
Baranquilla mayor Humberto Caiafa Rivas said.

Colombia's regulator needs COP152 billion to cover EDT's pension
liabilities, COP197 billion to compensate EDT employees for being
laid off and another COP230 billion to pay the Company's debts.

The regulator intervened EDT in May 2000 with a view to making
the Company viable and returning it to the Baranquilla city
government this month.

EDT has some 130,000 local telephony subscribers.


BANCA QUADRUM: IPAB Covers 98% Of Payment Requests
Mexico's bank savings protection institute IPAB said it covered
about 98 percent, or 798 payment requests, of the defunct Banca
Quadrum's total deposits, relates Dow Jones. IPAB paid a total
MXN4.6 billion (US$1=MXN9.64) for the requests.

Requests weren't presented for 151 accounts, but of those only 13
were for more than MXN1,000, said IPAB. Only 10 requests were
turned down, for unspecified reasons.

Banca Quadrum, a small, niche-oriented financial services concern
with an estimated 0.3-percent market share, was seized by
regulators last year after shareholders declined to inject more
capital into the bank.

To see Banca Quadrum's latest financial statements:

           Ernesto Rodriguez, Investor Relations
           Tel. +011-52-55-5284-5693

           KPMG - Ciudad de Mexico
           Bosque de Duraznos Nom. 55
           Bosques de las Lomas
           11700 Mexico, D.F.
           Tel.: +(55) 5246 83 00
           Fax.: +(55) 5596 80 60
           Guillermo Garcia-Naranjo, General Director
           Phone: +(55) 52 46 8320

CORPORACION DURANGO: Moody's Downs Sr. Notes; Outlook Negative
Corporacion Durango, S.A. de C.V. (Durango) had the ratings of
its senior notes lowered by Moody's Investors Service.

Ratings affected:

- Senior Unsecured Issuer rating lowered to B3 from B2
- US$301.7 million senior notes, due 2006, lowered to B3 from B2
- US$10.4 million senior notes, due 2008, lowered to B3 from B2
- US$121.7 million senior notes due August 2003, lowered to B3
from B2

The outlook has been changed to negative from stable.

The downgrades reflect their effective subordination to
approximately US$166 million of secured debt and their structural
subordination to about US$20.4 million of subsidiary debt,
Moody's explained.

With the completion of the merger between Corporacion Durango,
S.A. de C.V. and Grupo Industrial Durango S.A. de C.V. the pledge
agreement securing the US$301.7 million of senior notes due 2006
has been cancelled resulting in all rated debt obligations being
unsecured and at the holding company level, Corporacion Durango,
S.A. de C.V.

Moreover, the Company can incur substantial additional
indebtedness, subject to certain limitations as provided for
under its indenture.

The change in the rating outlook to negative from stable reflects
current difficult conditions in the paper industry, the Company's
weak operating performance and debt protection measures which are
lower than what Moody's has previously expected, and its
constrained liquidity position resulting from uncommitted short-
term bank lines.

The ratings and negative outlook also anticipate that the Company
will complete the refinancing of its remaining 12 5/8% senior
notes due 2003 in the near term, thus extending its maturity

The ratings continue to reflect a high degree of leverage, weak
interest coverage protection, exposure to fluctuating raw
material costs and limited control of product pricing,
particularly in containerboard and corrugated packaging, and

Durango also faces increased competition from substantial
competitors with greater access to financial resources in both
Mexico and the United States.

In addition, with substantially all debt being U.S. dollar
denominated, the Company is subject to foreign exchange risks,
including the potential devaluation of the Mexican peso, currency
conversion restrictions and conversion to Peso obligations in the
event of a judgment or bankruptcy in Mexico. However, foreign
exchange risks are mitigated to a certain degree due to a
substantial portion of the Company's revenues (approximately 43%
in 2001) being U.S. dollar based thus providing a natural foreign
currency hedge.

Durango ended March 31, 2002, with approximately US$38 million in
cash and equivalents and about US$100 million in uncommitted bank

"Although Moody's recognizes the long-term relationships the
Company has established with its banks, we believe that since the
banks are not legally bound to fund these obligations that during
difficult times the availability of these funds would be
questionable," the ratings service said.

New York
Robert N. McCreary
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
William V. Fahy
Associate Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

NAME: Corporacion Durango, S.A. de C.V.
      Potasio 150
      Ciudad Industrial
      Durango, Mexico

PHONE: (212) 815-4372

FAX: (212) 571-3050


     Calderon, Prudencio, Managing Director
     Del Palacio Elizondo, Angel, Director
     De Velasco, Mayela R.,  Chief Financial Officer o
     Diaz, Arturo, Financial Manager
     Peyro, Gustavo, Audit and Systems Manager

TYPE OF BUSINESS: Corporacion Durango, S.A. de C.V. is the result
of a merger between Durango and its majority owned subsidiary
Grupo Industrial Durango, S.A. de C.V. (GID), which received
shareholder approval for the merger on October 8, 2001. After the
merger the surviving entity was GID, which was subsequently
renamed Corporacion Durango, S.A. de C.V. effective February 12,
2002. Corporacion Durango is a public company that is 92.8% owned
by members of the Rincon Family. It is a holding company with
numerous subsidiaries

SIC: Paper and Paper Products

EMPLOYEES: 7769 (last reported count)

DEBT: US$813.9 million (as of March 31, 2002)

           Mayela R. Velasco
           +52 (1) 829 1008

           Arturo Diaz Medina
           +52 (1) 829 1015

           Alex Cancio
           (212) 701 1973

           Richard Huber
           (212) 701-1830

To see latest financial statements:

GRUPO BITAL: Regulators Demand Prompt Decisions From SCH
The Mexican banking regulators are pushing for a timely decision
from Santander Central Hispano (SCH) regarding its intentions
with Grupo Financiero Bital.

According to Patricio Bustamante, supervising vice-president at
the Banking and Securities National Commission (CNVB), the CNVB
has an interest in knowing what SCH's plans are because Bital
entered into an agreement in December to take over Banco

"We do not mind whether it is ING or Santander (that takes
majority control), which is basically a decision between
individuals," he said, adding that what matters from the CNVB's
standpoint is that Bital's finances be sound and its shareholder
structure solid.

Fortifying Bital's financial condition is expected to be
accomplished by its upcoming recapitalization involving either
SCH or ING Group NV, Bustamante said.

In May, ING was supposed to inject US$200 million into Bital to
gain control of 17.5 percent of the bank, but the transaction has
never taken place.

In the past two months, the director of Santander Mexico, Marcos
Martinez, has been quoted by local media as saying that SCH is
interested in raising its stake in Bital by as much as possible.

The CNBV is also awaiting formal notification of the sale by
Banco Comercial Portugues of its stake in Bital to SCH.

          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Home Page:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar

          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page:
          Ana P. Botn, Chairman, Banesto
          Emilio Botn-Sanz, Chairman
          Francisco G. Rold n, Financial Division General Manager

          Investor Relations:
          Phone: + 34.91.558.13.69
                 + 34.91.558.10.05
          Fax: + 34.91. 558.14.53
               + 34.91.522.66.70

GRUPO MEXICO: Shares Dip On SPCC Reduced Earnings Forecast
Shares of Grupo Mexico SA, the world's third-largest copper
producer, recently fell 44 centavos, or 2.6 percent, to MXN16.82.

The drop in the stock follows an announcement made by its unit,
Southern Peru Copper Corp., on Friday that it will cut its
earnings forecast on US$11 million for this year as the average
price of copper fell below the company's estimates.

Southern Peru Copper shares fell US$1.08, or 7 percent, to
US$14.27 on similar news. Grupo Mexico took control of SPCC,
Peru's largest copper producer, in 1999 through their purchase of
U.S.-based Asarco Inc.

Late last year, Asarco Inc. violated its agreement on a US$450-
million loan. Creditors have been negotiating ever since with
Grupo Mexico over how they will get paid. If negotiations fail
within the coming months, creditors may exercise their right to
demand immediate payments.

           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

           ASARCO, INC.
           2575 E. Camelback Rd., Ste. 500
           Phoenix, AZ 85016
           Phone: 602-977-6500
           Fax: 602-977-6701
           Home Page:
           German Larea Mota-Velasco, Chairman & CEO
           Genaro Larrea Mota-Velasco, President
           Daniel Tellechea Salido, VP & CFO

GRUPO TMM: Signs Contract For Container Movements In Manzanillo
Grupo TMM , the largest Latin American multi-modal transportation
and logistics company, and owner of the controlling interest in
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo
TFM), announced in a company press release that its TMM Ports and
Terminals division has signed a new contract with Mediterranean
Shipping Company of Geneva, Switzerland, the third largest
container shipping company in the world, for container movements
in Manzanillo. TMM Ports and Terminals is owned 51% by Grupo TMM
and 49% by Stevedoring Services of America. As previously
announced, the division recently received approval from the
Secretary of Communication and Transportation in Mexico for the
expansion of the waterfront and yard in Manzanillo, providing
entry into Mexico and the United States.
The new services announced will use the port of Manzanillo as an
eastern Pacific hub for vessels originating in Asia that will
stop at Manzanillo and move through the canal to the United
States; for vessels from the United States east coast that will
move through the canal and stop in Manzanillo before moving
westbound to Asia; and for Latin American trade ships that will
use Manzanillo as the transshipment port.
Based upon the contract signed this week for increased services
and on the positive outlook of other customers, Manzanillo is
projecting significantly improved volume growth for the near
term, from its current 300,000 TEU's annualized increasing to
500,000 TEU's over the next 18 months.
Javier Segovia, Grupo TMM's president, said, "The expansion at
Manzanillo is part of a focused program that TMM Ports and
Terminals instituted two years ago to grow its terminal business.
We are seeing the results of our initiatives to focus on
selected, core transportation offerings and have been pleased
with the results this division has contributed." Jon Hemingway,
Stevedoring Services of America's CEO and president commented,
"We are pleased to see Mediterranean Shipping, an important
customer and also our partner in the Port of Long Beach at Pier
S, give all of us at TMM Ports and Terminals the opportunity to
provide global service to its Mexican customers."

Headquartered in Mexico City, Grupo TMM is the premier Mexican
multimodal transportation company and logistics provider. Through
its branch offices and network of subsidiary companies, Grupo TMM
provides a dynamic combination of ocean and land transportation
services within Mexico. Grupo TMM also has the controlling
interest in Transportacion Ferroviaria Mexicana (TFM), which
operates Mexico's Northeast railway and carries over 40 percent
of the country's rail cargo.
Grupo TMM's web site is at,TFM's web
site at sites offer Spanish/English
language options.
          Jacinto Marina, 011-525-629-8790

          Brad Skinner, 011-525-629-8725 (Investor Relations)

          Luis Calvillo, 011-525-629-8758 (Media Relations)

          (general investors, analysts and media)
          Kristine Walczak, 312/726-3600


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

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

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

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

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

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

* * * End of Transmission * * *