TCRLA_Public/020613.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, June 13, 2002, Vol. 3, Issue 116



EDESUR: Adjusting Plans to Meet Short-Term Debt Schedule
IMPSAT FIBER: Majority of Creditors Support Expected Ch. 11
IMPSAT FIBER: Case Summary & 20 Largest Unsecured Creditors
METRORED TELECOM: Close to Final Agreement With Creditors
REPSOL YPF: Cortina Stays On; Defends Gas Natural Sale
SKY ARGENTINA: Exits Argentina Due To Economic Recession
VIA NET.WORKS: Turnaround Plan to Sell Argentina, Brazil Ops


GLOBAL CROSSING: Founder Backs Rescue Plan With Own Funds
GLOBAL CROSSING: Wolf Haldenstein Commences Class Action Suit


CEMIG: Board Authorizes Hedges To Protect Dollar-linked Debt
COPEL: Deutsche Bank Raises Recommendation, Target Price
TRANSBRASIL: To Continue Flying Despite Financial Woes
VARIG: In Talks With GE Capital To Return Planes


EMELEC: Ecuador's Head To Define New Sale Model This Week
FILANBANCO: Plan Deadline Set For Return Of $350M To Depositors


COPAMEX: S&P Rates To US$200 Million Unsecured Notes BB-
GRUPO BITAL: SCH Seeks Due Diligence Authority
GRUPO MEXICO: Analysts Express Mixed Expectations Despite S&P
RAINTREE RESORTS: Moody's Cuts Ratings Following Default

     - - - - - - - - - -


EDESUR: Adjusting Plans to Meet Short-Term Debt Schedule
Argentine distributor Edesur SA unveiled a short-term financial
policy aiming to meet payment obligations and avoiding default,
reports Business News Americas.

The Company, controlled by Chilean holding company Enersis, will
be working on this goal pending new regulations for the
electricity sector. Companies are currently negotiating with the
Argentine government in a process that is expected to conclude by
the end of June.

Edesur has already asked Argentine authorities for an urgent and
immediate rate increase to make the its operations viable. Edesur
considers the rate hike very critical because the emergency
measures adopted by the authorities to face the crisis have
destroyed the Company's economic-financial balance, creating
serious risks for its provision of services and survival, with no
guarantee of reasonable rates of profitability, making normal
functioning difficult.

If the situation is not normalized in the medium term there will
be a shortage of materials, a generation deficit, bankruptcy of
contractors, increases in power prices and it will be impossible
to pass on rates, Edesur said.

Edesur, which distributes electricity to southern Buenos Aires
and the industrial belt around the capital, posted a first-
quarter loss of ARS370 million (US$115.6 million), or close to 86
percent of all profits earned by the firm since it was privatized
in 1992. The Company has close to US$206.4 million in debt.

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

IMPSAT FIBER: Majority of Creditors Support Expected Ch. 11
In a recent offical announcement, Impsat Fiber outlined the
following major points to its present restructuring effort:

--  Creditors Representing over 59% of Debt Have Agreed to the
Terms of the Restructuring Plan Announced in March

--  The Plan, Which Contemplates a Reduction of Impsat's
Indebtedness by Approximately $680 Million, will Significantly
Strengthen the Company's Capital Structure

--  The Company Intends to File with the Court a Pre-Negotiated
Plan and Disclosure Statement Supported by Majority of its
Creditors in the Coming Weeks

--  Impsat's Subsidiaries will Continue Operating Normally
Throughout the Process

--  The Company Expects to Emerge from Chapter 11 in the Fourth

Impsat Fiber Networks, Inc., announced Tuesday that it has filed
for Chapter 11 in New York, following the signing of binding
lock-up agreements with creditors representing over 59 % of its

The agreed upon restructuring plan, which was announced in March,
contemplates the reduction in Impsat's indebtedness by
approximately $680 million and its future annual interest expense
by about $90 million.

The Company expects to file a pre-negotiated Plan and Disclosure
Statement with the U.S. Bankruptcy Court for the Southern
District of New York in the coming four weeks and emerge from
Chapter 11 in the fourth quarter of 2002.

The plan involves a restructuring of Impsat Fiber Networks,
Inc.'s indebtedness under its vendor financing agreements, and
its Guaranteed Senior Notes due 2003, Senior Notes due 2005 and
Senior Notes 2008. The Company is also conducting discussions
with other creditors at the subsidiaries' level to agree on a
debt-restructuring plan incorporating similar conditions.

Impsat Fiber Networks, Inc. is a holding company and its
subsidiaries, which are independent legal entities, will continue
to operate without interruption and serve their customers
normally. After the restructuring is completed, Impsat's
strengthened capital structure will reinforce the Company's
leadership in the Latin American telecommunications market.

Ricardo Verdaguer, Impsat's chief executive officer, stated: "The
filing of Chapter 11 to effectuate the negotiated transaction is
the final step in the Company's financial restructuring. Impsat's
substantially de-levered capital structure will enable us to
strengthen our operations and consolidate our market position in
Latin America. We are deeply grateful for the support we have
received from our customers, creditors, vendors, employees and
directors throughout this process. We are confident that this
level of support will enable us to consummate this plan through
the U.S. Court in the fourth quarter, while continuing with our
normal operations in the region."

As announced on March 11, 2002, the pre negotiated Plan will
provide, among other things, that:

--  Holders of debt under the Company's Broadband Network Vendor
Financing Agreements will receive a combination of senior secured
indebtedness totaling in the aggregate $141 million, $23 million
in the aggregate of new Senior Guaranteed Notes initially
convertible in the aggregate into 5% of the Company's new common
stock and warrants to acquire 15% in the aggregate of the
Company's new common stock.

--  Holders of the Company's Senior Guaranteed Notes due 2003
will receive new Senior Guaranteed Notes in an aggregate amount
of $67 million, initially convertible in the aggregate into 23%
of the Company's new common stock.

--  Holders of the Company's Senior Notes due 2005 and 2008 will
exchange those Notes for initially 98% in the aggregate of the
Company's new common stock.

--  The pre-negotiated Plan contemplates no distribution to
existing stockholders of the Company.

Completion of the restructuring plan remains subject to certain
conditions, including its acceptance by affected classes of
public debt and equity holders, whose approval will be solicited
as part of the Court process.

Impsat Fiber Networks, Inc. provids fully integrated broadband
data, Internet and voice telecommunications services in Latin
America. Impsat has recently launched an extensive pan-Latin
American high capacity broadband network in Brazil, Argentina,
Chile and Colombia using advanced technologies, including IP/ATM
switching, DWDM, and non-zero dispersion fiber optics.

The Company has also deployed fourteen facilities to provide
hosting services. Impsat currently provides services to 3,000
national and multinational companies, government entities and
wholesale services to carriers, ISPs and other service providers
throughout the region.

The Company has local operations in Argentina, Colombia,
VeneImportant assumptions and other important factors that could
cause actual results to differ materially from those in the
forward-looking statements are specified in the Company's Annual
Report on Form 10-K and quarterly reports on Form 10-Q on file
with the Securities and Exchange Commission.

CONTACT:  IMPSAT Fiber Networks, Inc.
          Home Page:

          Hector Alonso
          Gonzalo Alende Serra
          Phone: 54.11.5170.3700
          Houlihan Lokey Howard & Zukin Capital
          John McKenna
          Lily Chu
          Phone: 212/497-4100
          Citigate Dewe Rogerson Inc.
          John McInerney
          Robin Weinberg
          Phone: 212/688-6840

IMPSAT FIBER: Case Summary & 20 Largest Unsecured Creditors
Debtor: IMPSAT Fiber Networks, Inc.
        Arnold & Porter
        399 Park Avenue
        New York, New York 10022

Bankruptcy Case No.: 02-12882

Type of Business: The Debtor is a provider of broadband
                  Internet, data, and voice services in Latin

Chapter 11 Petition Date: June 11, 2002

Court: Southern District of New York (Manhattan)

Judge: Robert E. Gerber

Debtors' Counsel: Anthony D. Boccanfuso, Esq.
                  Michael J. Canning, Esq.
                  Arnold & Porter
                  399 Park Avenue
                  New York, New York 10022
                  (212) 715-1315
                  Fax : (212) 715-1399

Total Assets: $667,189,368

Total Debts: $1,334,732,793

Debtor's 20 Largest Unsecured Creditors:

Entity                     Nature of Claim        Claim Amount
------                     ---------------        ------------
Bank of New York as        Notes                  $300,000,000
Trustee for holders of                            plus accrued
13-3/4% Senior Notes due                          interest
101 Barclay
Floor 21 West
New York, NY 10286
Attn: Corporate Trust
Phone: 212-815-4888

Bank of New York as        Notes                  $225,000,000
Trustee for holders of                            plus accrued
12-3/8% Senior Notes due                          interest
101 Barclay
Floor 21 West
New York, NY 10286
Attn: Corporate Trust
Phone: 212-815-4888

Nortel Networks Limited,   Guarantee of non-      $125,129,546
as administrative agent    debtor subsidiary      plus accrued
for Lenders under that     debt -  Brazil         interest
certain Financing Agreement
dated as of October 25,
1999, as amended c/o Nortel
(CALA) Inc.
Jorge Suarez
1500 Concord Terrace
Sunrise, Florida 33323-2815
Phone: 954-851-8930

Bank of New York as        Notes                  $125,000,000
Trustee for holders                               plus accrued
Of 12-1/8% Senior Guaranteed                      interest
Notes due 2003
101 Barclay
Floor 21 West
New York, NY 10286
Attn: Corporate Trust
Phone: 212-815-4888

Nortel Networks Limited,   Guarantee of non-      $120,777,954
as administrative agent    debtor subsidiary      plus accrued
for Lenders under that     debt - Argentina       interest
certain Financing Agreement
dated as of October 25,
1999, as amended c/o Nortel
(CALA) Inc.
Jorge Suarez
1500 Concord Terrace
Sunrise, Florida 33323-2815
Phone: 954-851-8930

Citibank NA                Guarantee of Non-        $8,356,976
Horacia Almada              debtor subsidiary      plus accrued
399 Park Avenue             debt - Argentina       interest
New York, NY 10043
Phone: 54-11-4329-1686

Sirti Argentina S.A.       Guarantee of non-        $8,303,860
Av. Pte. Hipolito Yrigoyen  debtor subsidiary      plus accrued
4848                       debt - Argentina       interest
Javier Defferrari
Anibal Civale
B1604 CMV, Florida
Buenos Aires, Argentina
Phone: 54-11-4730-8879

Compania Ericsson          Guarantee of non-        $4,874,993
S.A.C.I.                   debtor subsidiary      plus accrued
Juan Prgich                 debt - Argentina       interest
Av. Madero 1020 piso 15
Buenos Aires, 1106 Argentina
Phone: 54-11-4319-5522

Amtrade International      Guarantee of non-        $4,874,993
Bank of Georgia            debtor subsidiary      plus accrued
Jack Foster                 debt - Colombia        interest
One Midtown Plaza,
Suite 1105
1360 Peachtree Street, N.E.
Atlanta, Georgia 30127

Hughes Network Systems     Guarantee of non-        $3,424,867
Chris Biondi                debtor subsidiary      plus accrued
1717 Exploration Lane       debt - Argentina       interest
Germantown, MD 20816
Phone: 301-428-2773

El Camino Resources de     Guarantee of non-        $2,544,230
America Latina, Inc.       debtor subsidiary      plus accrued
Jose Virginio de Rezende    debt - Brazil          interest
Otavio Olveira
45-18 Court Square,
Suite 501
Long Island City, NY
Phone: 55-21-3824-8910

Harris Corporation         Guarantee of non-        $2,277,427
Paul Hare                   debtor subsidiary      plus accrued
3 Hotel de Ville            debt - Argentina       interest
Quebec, H9B 3G4, Canada

Tellabs, Inc.              Guarantee of non-        $2,190,962
Gerald Rixie                debtor subsidiary      plus accrued
One Tellabs Center           debt - Argentina      interest
1415 West Diehl Road
Naperville, IL 60653
Phone: 630-758-3512

DMC Startex Networks, Inc. Guarantee of non-        $1,496,888
Gonzalo Ferrer              debtor subsidiary      plus accrued
170 Rose Orchard Way        debt - Argentina       interest
San Jose, CA 95134
Phone: 408-944-3562

Nortel Dassa SatCom -      Guarantee of non-        $1,015,579
Gessellschaft fur           debtor subsidiary      plus accrued
Satellitenkommunikation     debt - USA             interest
ssysteme mbH
An der Bundesstrasse 31
88039 Firedrichshafen,
Phone: 49-7545-939-8080
Bank of America as         Guarantee of non-          $829,267
Successor to Barnett Bank  debtor subsidiary      plus accrued
N.A.                       debt - USA             interest
Shawn Guicheteaui
One East Broward Boulevard
Ft. Lauderdale, FL 33301
Phone: 704-386-2433

Harris Corporation         Guarantee of non-          $621,530
Paul Hare                   debtor subsidiary      plus accrued
3 Hotel de Ville            debt - Venezuela       interest
Quebec, H9B 3G4, Canada

Cisco Systems Capital      Guarantee of non-          $620,365
Oscar Bode                  debtor subsidiary      plus accrued
8200 NW 41st Street,        debt - Brazil          interest
Suite 400
Miami, FL 33166 USA
Phone: 305-513-5281

Compaq Financing Services  Guarantee of non-          $232,440
                            debtor subsidiary
                            debt - Argentina

METRORED TELECOM: Close to Final Agreement With Creditors
MetroRed Telecom Ltd., a high-speed telecommunications provider
majority-owned by Fidelity Investments, is close to reaching an
agreement with creditors that would allow the Company to continue
operating, according to a report by Argentine financial daily El

"We will reach an agreement this week or we will stop the
process," Carlos de la Garza, a MetroRed spokesman in Mexico
City, said in a brief telephone interview.

The agreement would let the Company's main creditors - US bank
Bankboston and Spanish bank SCH - take control of MetroRed

MetroRed, which filed for bankruptcy in May, blamed the
government default on some US$95 billon of debt in December for
its financial problems. This, according to the Company, led it to
cut all its financing sources. The currency devaluation in
January also left it saddled with debts in U.S. dollars and
revenue in pesos.

Fidelity Investments, a U.S. mutual fund company, bankrolled the
startup in the 1990s, betting on surging demand for high-speed
lines.  Since 1996, the company has poured a total of US$170
million in Argentina, where it claims to have 400 corporate

          Paseo Colón 746
          Piso 4 (C1063ACU)
          Buenos Aires
          Phone: (5411) 4876-7700
          Fax: (5411) 4876-7767
          Home Page:

          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:

          Florida 99
          1005 Buenos Aires
          Phone: 54-(11)-4820-2000
          Fax: 54-(11)-4820-3200
          Home Page:

          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page:
          Ana P. Botín, Chairman, Banesto
          Emilio Botín-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

REPSOL YPF: Cortina Stays On; Defends Gas Natural Sale
Repsol YPF SA Chairman Alfonso Cortina denied speculation that he
is stepping down from his post and defended a move to sell half
of Repsol's stake in Gas Natural SDG SA, according to La Gaceta
de los Negocios newspaper.

In a meeting held Thursday, Cortina told 200 executives of
Europe's fifth-biggest oil company that he has no plans to step
down. Although 2002 has been "especially tough," he vowed to stay
committed to the Company.

He also admitted that the decision to sell half of Repsol's stake
in Gas Natural SDG SA was "painful," but it allowed Repsol to
move up its debt reduction plan by three years.

Citing information from El Mundo newspaper, TCR-LA previously
reported that Cortina is running out of time to appoint a chief
executive after his choice of one of his closest colleagues,
Ramon Blanco, was rejected by Banco Bilbao Vizcaya Argentaria SA
(BBVA) and Caja de Ahorros y Pensiones de Barcelona SA (LaCaixa),
Repsol YPF SA's largest shareholders.

The shareholders, according to El Mundo, want a CEO from outside
the Company and are urging Cortina to name one by July.

BBVA and La Caixa executives are wary that Repsol may be a target
of a hostile takeover due to its sinking earnings and stock

The Company's US$15-billion purchase of Argentine driller YPF in
1999 turned sour after the country's four-year economic slump and
currency devaluation wiped EUR2.7 billion (US$2.5 billion) off
Repsol's earnings.

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

SKY ARGENTINA: Exits Argentina Due To Economic Recession
Sky Argentina, the country's second-largest satellite television
provider behind DirecTV, will halt its operations in the
recession-plagued country by July, EFE reports, citing a company
press release.

The Company attributed its decision to "the economic crisis, its
effect on our cost structure and the difficulties we face in
planning future investments in a climate of economic

Sky's investment since November 2000 has totaled US$120 million.
The firm had 80,000 subscribers at one point, but its customer
base shrank to 45,000 because of the recession.

Sky Argentina, a joint venture among Australia's News Corp.,
Brazil's O Globo and Mexico's Televisa, holds the broadcast
rights to the 2002 World Cup.

VIA NET.WORKS: Turnaround Plan to Sell Argentina, Brazil Ops
VIA NET.WORKS, Inc. announced Monday the sale of its operations
in Argentina, Brazil and Austria.  All three dispositions were
completed through stock deals; other terms were not
disclosed.  In Austria, VIA sold its operation to the existing
management team led by Martin Zandonella.  VIA's Brazilian
subsidiary was also sold to its management team led by Antonio
Tavares.  The Argentine operation was sold to DATCO S.A., a
technology infrastructure provider with operations in Argentina
and Chile.

VIA's acting chief executive officer, Karl Maier stated: "These
divestitures represent further progress in our turnaround plan
that is focused on significantly reducing our cash burn and
driving the company towards profitability.  They also allow us to
focus more intently on our core country operations.  We are
pleased with our turnaround progress to date and will continue to
take actions that allow us to achieve our operational and
financial objectives."


VIA NET.WORKS, Inc. is a single-source provider of managed
Internet services for business. Serving businesses in Europe and
North America, VIA is committed to improving each customer's
business productivity and competitiveness. VIA local operations
offer a comprehensive portfolio of flexible and reliable managed
Internet services encompassing areas such as connectivity,
hosting, security, messaging, and professional services.  VIA is
a facilities-based Internet services company, managing its own
backbone network.  The Company claims this unique combination --
the agility of a local, customer-focused company and the
reliability of an international high-speed network -- allows VIA
to be highly responsive to specific customer needs and to deliver
quality solutions.  VIA is headquartered at 12100 Sunset Hills
Road, Reston, Virginia, USA, 20190.  More information about VIA
can be obtained by visiting their website at

          Matt S. Nydell
          Tel. +1-703-464-0300
          Fax. +1-703-464-0608
          Web site:


GLOBAL CROSSING: Founder Backs Rescue Plan With Own Funds
Speculation abounds that Gary Winnick, Global Crossing's founder
and chairman, may possibly use some of his own money to back a
management-led reorganization plan. The pending proposal, which
could be worth well over US$1 billion, would be designed to pull
the telecommunications company out of its present state of

Citing people familiar with the matter, the Wall Street Journal
reports that Winnick has approached some private-equity firms and
other potential investors to back the plan and told them that he
would be willing to contribute as much as US$100 million of his
own money under the right circumstances.

However, Winnick may find it hard to win the confidence of these
potential investors, as some of them still hold him responsible
for Global Crossing's swift decline into bankruptcy proceedings,
the fourth-largest such filing in U.S. history. They remain
peeved at him for, among other things, selling UDS$735 million of
Global Crossing shares from his personal holdings.

Based in Hamilton, Bermuda, and run from offices in Madison, New
Jersey, Global Crossing filed for Chapter 11 in January, listing
US$12.4 billion in debts.

          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

GLOBAL CROSSING: Wolf Haldenstein Commences Class Action Suit
Wolf Haldenstein Adler Freeman & Herz LLP has commenced a class
action lawsuit in the United States District Court for the
Southern District of New York on behalf of purchasers of Global
Crossing Ltd. ("Global Crossing" or the "Company") (NYSE: GX)
common stock between June 15, 1999 and November 10, 2001 (the
"Class Period"), inclusive, against Salomon Smith Barney, Inc.
("Salomon") and its star telecommunication analyst Jack Grubman
("Grubman") for violations of Sections 10(b) of the Securities
Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder.

The case name is Ovetsky-Weiss v. Salomon Smith Barney, Inc.  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 sections 10(b) of
the Securities Exchange Act of 1934 and SEC Rule 10b-5
promulgated thereunder, by the issuance of analyst reports
regarding Global Crossing which recommended the purchase of
Global Crossing common stock and which set price targets for
Global Crossing common stock without any reasonable factual
basis. Furthermore, when issuing their Global Crossing reports,
defendants failed to disclose significant, material conflicts of
interest, which they had, in light of their use of Grubman's
reputation and his Global Crossing analyst reports, to obtain
investment banking business for Salomon.  Furthermore, in issuing
their Global Crossing reports, in which they were recommending
the purchase of Global Crossing stock, defendants failed to
disclose material, non-public, adverse information which they
possessed about Global Crossing as well as their true opinion
about Global Crossing. Defendants also failed to disclose that
Grubman, while issuing reports on Global Crossing recommending
that investors purchase Global Crossing common stock, had been
intimately involved in the management of Global Crossing.

Plaintiffs seek to recover damages on behalf of all those who
purchased shares of Global Crossing common stock during the Class
Period (the "Class"). Members of the Class may wish to join in
the action to serve as lead plaintiff by requesting that the
Court appoint them as lead plaintiff. Such requests must be made
by July 23, 2002.

          270 Madison Avenue
          New York, New York 10016
          Fred T. Isquith, Esq.
          Robert Abrams, Esq.
          Michael Miske
          George Peters
          Derek Behnke
          Tel. +1-800-575-0735
          Web site:


CEMIG: Board Authorizes Hedges To Protect Dollar-linked Debt
Companhia Energetica de Minas Gerais (Cemig) gained approval from
its board of directors to use hedging operations to protect up to
100% of the Brazilian electric utility's dollar-linked debt
against foreign exchange variations, Dow Jones Newswires reports,
citing a company official.

Cemig, in its first quarter financial statement, revealed that
its dollar-linked debt stood at about US$600 million. Company
officials said the board made an "umbrella decision" which will
allow Cemig to protect all of its dollar-linked debt if

The board's approval comes amid increasing doubts about the
outcome of the country's presidential elections in October and
about Brazil's ability to honor debt commitments in the medium

Brazil's real has been losing ground in the past few months, hit
by pre-election jitters. Since May 31, the real has weakened
nearly 5%, says Dow Jones.

Cemig, Brazil's biggest combined power distributor and generator,
posted a first-quarter profit of BRL220 million (US$89 million),
reversing a loss of BRL12.5 million in the same period
in 2001.

The state of Minas Gerais controls 51 percent of the Company's
voting shares.

          Avenida Barbacena, 1200
          Sto Agostinho  30123-970 Belo Horizonte - MG
          Phone   +55 31 299 4900
          Home Page
          Djalma Bastos De Morais, Chairman
          Geraldo De Oliveira Faria, Vice Chairman
          Cristiano Correa De Barros, Finance Director

COPEL: Deutsche Bank Raises Recommendation, Target Price
Deutsche Bank upped its recommendation on Companhia Paranaense de
Energia (Copel), to `buy' from `market perform,' and adjusted the
Brazilian electric utility's target price to BRL22.40
($1=BRR2.636) from BRL20.30, according to a Dow Jones Newswires

"We believe that most of the bad news regarding excess Copel
energy in 2002-2003 is priced into the stock," Deutsche bank said
in a research note.

Deutsche reduced Copel's 2002 through 2004 earnings estimates to
BRL280 million, BRL388 million and BRL646 million respectively
from previous estimates of BRL393 million, BRL482 million and
BRL725 million.

Just recently, Spanish brokerage house BBVA Securities also
raised its recommendation on Copel to `buy' from `outperform,'
and upped its target price by 4%, to US$8.88 per American
Depositary Receipt.

According to the Spanish brokerage house, the main catalyst for
Copel's short-term prospects is the conversion of BRL700 million
(US$1=BRR2.637) of illiquid credits into cash.

Copel, controlled by the Brazilian state of Parana, has BRL1.4
billion in debt, 62 percent of which is denominated in U.S.
dollars. The utility serves about three million customers in
Parana, with an installed capacity of 4,580 megawatts, making it
one of Brazil's largest utilities.

CONTACTS:  Ingo Henrique Hobert, Chief Executive Officer
           Deni Lineu Schwartz, Chief Government Relatins Officer
           Ferdinando schauenburg, CFO

TRANSBRASIL: To Continue Flying Despite Financial Woes
Brazil's DAC (Departamento de Aviacao Civil) is not going to
revoke Brazilian airline Transbrasil's license to operate,
despite the fact that it has not flown for six consecutive months
due to insolvency.

Transbrasil is currently battling with a number of problems,
including losing access to its offices, the absence of a lawyer,
and the BRL80-million debt it owes to its employees, and the BRL1
billion to suppliers and the government.

Adding up to that is the lawsuit filed by Mr. Dilson Prado de
Fonseca, who reportedly bought the Company for BRL1.00 in

The struggling airline intends to call a shareholder meeting soon
in order to present a new investor who will rescue the airline
from its insolvency.

CONTACT:  Antonio Celso Cipriani, CFO
          Rua Geral Pantaleao Telles, No. 4,
          Jardim Aeroporto
          04355-040 Sao Paulo, Brazil
          Phone: +55-11-533-7111
          Fax: +55-11-543-9083

VARIG: In Talks With GE Capital To Return Planes
As part of an effort to cut costs, Viacao Aerea Rio-Grandense SA
(Varig) is negotiating to return seven Boeing 737 planes to GE
Capital Aviation Services, General Electric Co.'s aircraft-
leasing arm, Bloomberg reports, citing Ozires Silva, the
carrier's president.

Silva said that the aircraft will be returned as soon as Varig
completes negotiations with GE Capital on financial terms to
break the leases.

Still unknown is how much Varig might have to pay to break the
lease or how much the airline will save in operating costs from
reducing its fleet to 86 aircraft from the current 93.

The return of the seven aircraft is part of a plan to attract
investors, domestic or foreign, to help reduce the Company's
debt, which totals about US$900 million, Silva said.

Varig's losses more than doubled in 2001 to BRL480.9 million
(US$178 million) from BRL178.54 million a year earlier.

The airline's accountant said in April in a footnote to the
financial statements for 2001 that Varig needs to raise cash soon
to keep flying.

"The projections for its cash flow indicate the need to obtain
funds in the short term to make possible the maintenance of its
operations," wrote Samuel de Paula Matos, a partner at the
Brazilian business of Arthur Andersen LLP, who signed off on
Varig's accounts.

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

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

          201 High Ridge Road
          Stamford, CT 06927
          Fax: (203) 357-3776

          GE Corporate Headquarters
          Fairfield, CT 06431
          Telephone: (203) 373-2211
          Home Page:
          Pauline Berardi, Investor Relations
          GE Corporate Investor Communications
          3135 Easton Turnpike
          Fairfield, CT 06431


EMELEC: Ecuador's Head To Define New Sale Model This Week
The Ecuadorian president Gustavo Noboa is expected to detail
this week a new model for selling off the electric utility
Emelec, reports South American Business Information. The move
follows a recent failed tender which, according to market
sources, was due to the very high base price of US$130 million.

Alternatives for the future of Emelec include selling its shares
in the stock market, or enabling it to issue debt titles in the
financial market.

However, the government must first tackle the US$400 million in
debts piled up by Emelec since 1982 before making a decision.

Another matter soon to be addressed is the adoption of a
realistic tariffs policy and modernization investments of US$50
million over the next 4 years.

In March 2001, Ecuadorian electricity council Conelec canceled
Emelec's concession to distribute electricity in Guayaquil after
the Company broke its contract with the state, having accumulated
US$97 million in debts and failing to maintain service standards.

Emelec owner, Fernando Aspiazu was arrested, and the then-
government decided to sell the Company to reimburse clients of
Banco del Progreso, also owned by Aspiazu, and which was declared

CONTACT:  Electrica del Ecuador (EMELEC)
          Tel,fonos: (593-4) 248000 - 248003
          Fax: (593-4) 248051

FILANBANCO: Plan Deadline Set For Return Of $350M To Depositors
Filanbanco, formerly Ecuador's biggest bank, has until the end of
June to devise a plan to return US$350 million owed to depositors
since it closed last July in a liquidity crisis, reports Reuters.

Banking authorities and depositors are working on a plan to set
up trusts to manage resources from selling the bank's fixed-
assets as well as recovering non-performing loans.

Due to changes in Filanbanco's management and delays setting up
the trust, Ecuador's Banking Board extended a deadline to
liquidate the bank from June 10 to June 30, hoping the trusts can
be created before then.

The board refused to push the deadline back to July arguing that
liquidating Filanbanco is a requirement for the country to tap a
US$240-million credit program it's seeking with the International
Monetary Fund.

"This was expected, because granting an extension until July 31 -
- as depositors requested -- was impossible, because of the IMF
requirement," said a spokesman from the Banking Superintendency.

Filanbanco was taken over by the government in December 1998 amid
a financial crisis that pushed 15 institutions into state hands
due to mismanagement and liquidity problems.

          Av. 9 of 203 October and Pichincha
          Guayaquil, Ecuador
          Phone: 322780 ext. 2885
          Fax: 329451
          Home Page:
          International Business Division
          Germania Narv ez Brandon

          Legal Divison (Guayaquil)
          Marks Arteaga Valenzuela, Departmental Manager


COPAMEX: S&P Rates To US$200 Million Unsecured Notes BB-
Standard & Poor's said Tuesday it assigned a double-'B'-minus
rating to Copamex S.A. de C.V.'s US$200 million senior unsecured
notes due 2009. Copamex is one of the leading producers of value-
added paper-based consumer products and industrial paper products
in Mexico.

Standard & Poor's also affirmed the double-'B'-minus corporate
credit rating. The outlook is stable. The notes will be used to
refinance existing short- and long-term debt, which totals US$525
million as of March 2002.

"Improving economic market conditions during the second half of
2002 coupled with a higher value-added product mix, should allow
Copamex to increase its cash flow generation in order to reduce
debt and improve its financial profile," said Standard & Poor's
credit analyst Beatriz Coll.

Standard & Poor's expects that the company will be able to
successfully refinance its existing short-term debt.

The company's debt is high, with total debt to EBITDA and EBITDA
interest coverage ratios of 3.8 times (x) and 2.4x respectively
for the 12 months ended March 2002. Nevertheless, in the past six
months, Copamex reduced an important portion of its short-term
debt, diminishing Standard & Poor's concerns about the company's
refinancing risk. Currently, Copamex's short-term debt represents
approximately 25% of the company's total debt and with the
refinancing Copamex's short-term debt is expected to represent
around 15% of the total.

Standard & Poor's said that the expected refinancing would
provide additional financial flexibility and liberate additional
cash flow, which could be used to reduce debt. During the next
two years, EBITDA interest coverage and total debt to EBITDA
should strengthen to about 2.6x and 3.4x, respectively.

The company's operating margins have remained at around 16% in
the past two years because of the lower margins at the printing
and writing, and packaging divisions, due to increased price
competition from imports, lower prices in the international
markets, and higher expenses in the consumer products division.
In the next couple of years, operating margins are expected to
gradually increase to about 17% as the company increases its
sales in the consumer products division.

As of December 2001, Copamex's sales yielded US$832 million. The
company participates in three major segments: consumer products,
packaging, and printing and writing paper, which represent 48%,
24%, and 28% respectively of the company's total sales. Copamex
has a well-diversified product mix, and, despite competition with
the Mexican affiliates of strong multinationals, the company
commands a significant share of the Mexican market for tissue,
kraft, bond, and specialty papers products.

Analyst: Beatriz Coll, Mexico City (52) 55-5279-2016

GRUPO BITAL: SCH Seeks Due Diligence Authority
After increasing its stake in Grupo Financiero Bital SA to 30% of
voting rights, Spain's Banco Santander Central Hispano SA now
seeks authority to analyze the loan portfolio of Mexico's fourth-
largest financial services company, relates Dow Jones Newswires.

In a regulatory filing, Bital said that BSCH "requested a
financial analysis of the institution, which is basically limited
to the evaluation of its loan portfolio."

Bital has already submitted BSCH's request to the National
Banking and Securities Commission and is now awaiting
authorization from the commission.

Bital said the proposed due diligence is a "positive development,
as it will establish an objective framework for BSCH to decide
what kind of role it seeks to have in the institution."

Bital is one of the few banks under control of Mexican
shareholders. But its current US$400 million capitalization
process will dramatically alter the balance of power on the
board, Dow Jones Newswires suggests.

In addition to SCH's minority stake, Dutch giant ING Groep NV
(ING) has signed a memorandum of understanding to purchase a
17.5% interest in Bital for US$200 million.

According to reports by the local media, BSCH is seeking a due
diligence similar to the one ING conducted before signing its
letter of intention. As minority shareholder, BSCH is entitled to
make a tender offer for 100% of Bital.

          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. Botin, Chairman, Banesto
          Emilio Botin-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: Analysts Express Mixed Expectations Despite S&P
Despite the fact Grupo Mexico is in negotiations with creditors,
the company is on the brink of declaring bankruptcy due to the
loan conditions and the low price of copper, according to a
report by rating agency Standard & Poor's.

S&P analysts say this is the reason they have tagged Grupo Mexico
and its subsidiary Grupo Minero México with "MxCC" and "MxB"
ratings, both with negative outlooks.

However, analysts at BBVA-Bancomer expect differently and see a
bright future for the Company. They believe that by refinancing
its US$153-million debt (part of US$650 million that will expire
in the short term), Grupo Mexico will begin to reduce its
structural risk, although it has not yet restructured the more
important US$450 million owed in November, which dates from the
purchase of Asarco.

Grupo Mexico is the world's third largest copper producer with
operations in Mexico, Peru and the United States.

           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

RAINTREE RESORTS: Moody's Cuts Ratings Following Default
Moody's Investors Service downgraded the ratings on Raintree
Resorts International Inc.'s US$94.5 million senior notes due
2004 to Ca from Caa2 and its senior implied rating and senior
unsecured long-term issuer rating to Ca from Caa2.

The rating action follows the Company's failure to pay a US$6.1
million coupon due June 1, 2002.

The ratings outlook is now negative and reflects the uncertainty
regarding Raintree's ability to make future interest payments.

Raintree is currently negotiating with Leisure Industries Corp.
the sale of the Whisky Jack Resorts Ltd. and Teton Club Jackson
Hole resorts, and an interest on the Cimarron Golf Resort, to
obtain the funds to make the interest payments.

However, Moody's believes that the amount and timing of any asset
sales is uncertain at this time.

Raintree is a developer, marketer, and operator of luxury
vacation ownership resorts in North America with resorts in
Mexico, the U.S., and Canada.

To see Financial Statement:

          Robert N. McCreary
          Senior Vice President
          Corporate Finance Group
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          Keith Foley
          Vice President - Senior Analyst
          Corporate Finance Group
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          10000 Memorial Drive, Suite 480
          Houston, Texas 77024
          Telephone: (713) 613-2800
          Home Page:
          George E. Aldrich, Senior VP - Finance/Accounting


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.

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