TCRLA_Public/020614.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

           Friday, June 14, 2002, Vol. 3, Issue 117



BANCO RIO: Parent Company To Appear At Arbitration Hearing
PECOM ENERGIA: Warns of Extending Maturities; S&P Cuts To `CC'
YPF SA: Fitch Surprised As Export Notes Final Payment Made


GLOBAL CROSSING: Stull, Stull & Brody Announces Class Action
TYCO INTERNATIONAL: Responds to SEC Probe; Issues Statement
TYCO INTERNATIONAL: $4.5B Impairment Revises Fiscal 2Q02 Numbers
TYCO INTERNATIONAL: CIT Files Amended IPO Registration Statement
TYCO INTERNATIONAL: Moody's Lowers, Considers Further Downgrade

TYCO INTERNATIONAL: Moody's Affirms CIT's Ratings
TYCO INTERNATIONAL: S&P Threatens Junk Status if CIT IPO Fails
TYCO INTERNATIONAL: Wooing SPX Head To Lead Rescue


RBG RESOURCES: Windup Order Includes Smelter, Mine Sales


LIGHT: Introduces Plan To Prevent More Customer Defaults
RTB: To Renegotiate $100M Debt; Seeks to Lower Interest


ENERSIS: Execs On Road Show To Battle Slumping Share Price
EMPRESAS LUCCHETTI: Court Grills Execs on Graft Charges


ENKA DE COLOMBIA: Seeks Bankruptcy Protection From Creditors
TELECOM: Minister Urges Striking Workers Back to Deal Process


AEROMEXICO/MEXICANA: Slim Not Interested In Upcoming Sale
AEROMEXICO: Halts Investment Plans On Dwindling Cash Flow
ISPAT INTERNATIONAL: 1Q02 Net Loss Shrinks; Projects Breakeven
GRUPO BITAL: Backing 5,000 Firms With MXN10B In Financing

     - - - - - - - - - -


BANCO RIO: Parent Company To Appear At Arbitration Hearing
Executives from Spanish banking giant Santander Central Hispano
SA are slated to appear at an arbitration hearing July 16 with a
group of depositors of its Argentine unit Banco Rio de la Plata
SA, reports Dow Jones Newswires.

The scheduled hearing follows a decision by a Madrid civil court
to hear the case demanding Banco Rio to return the money the
Argentine depositors have deposited at the bank.

Depositors are claiming that the bank is infringing on its
contracts with them.

Banco Rio, one of Argentina's largest banking companies, has
US$1.4 billion in total debt; about US$605 million of which
matures by May 2003 and another US$250 million matures by May

In May, officials from its Spanish parent said that Banco Rio had
just three months' worth of capital left, and that Santander
would not send new money to Argentina until the Duhalde
administration stabilized the country's finances and strengthened
the weakened banking system.

All banking deposits in Argentina are currently trapped by the
so-called "corralito," a freeze on banking deposits instituted by
the Argentine government in December to protect the solvency of
the country's banking system.

Although the Argentine government announced a plan earlier this
month to phase out the freeze slowly, offering holders of savings
accounts a choice of bonds maturing in three to 10 years time,
few depositors are satisfied.

          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

          Bartolome Mitre 480
          1036 Buenos Aires, Argentina
          Phone: +54-14-341-1081-1580
          Fax: +54-14-341-1074-1084
          Home Page:
          Ana Patricia B. S. de Sautuola y O'Shea, Chairman
          Jose L. E. Cristofani, Executive Vice Chairman and CEO
          Pablo Caride, Corporate Finance

PECOM ENERGIA: Warns of Extending Maturities; S&P Cuts To `CC'
Standard & Poor's downgraded Pecom Energia's foreign currency
corporate credit rating to `CC' from `CCC,' leaving it two steps
above default level, reports Bloomberg.

The downgrade follows an announcement by the Company, which is a
subsidiary of Latin America's biggest independent energy company,
Perez Companc SA, that it was looking to extend maturities on
US$1 billion of bonds.

On Monday, Pecom Energia announced it wanted to offer four new
bonds for existing debt, which will carry the same interest rate
and extend the maturity by three years.

"The notes exchange reflects increasing liquidity concerns for
Pecom and its incapacity to repay short-term obligations with its
own resources," Standard & Poor's said in a statement.

Perez Companc's American depositary receipts in New York fell 7.1
percent to US$3.90. Each ADR represents 10 Class B shares of the

To see financial statements:

          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315

YPF SA: Fitch Surprised As Export Notes Final Payment Made
YPF Structured Export Notes I (SENs I) bucked the trend in
Argentina and made the its final debt service payment on May 26,
2002. Fitch Ratings, the international rating agency has
withdrawn the 'BBB-' rating on YPF S.A. Structured Export Notes I
(SENs I) as the US$400,000,000 SEN issuance made its last
payment. Unlike a variety of Argentine issuers, these structured
notes continued to make payments in the midst of the largest
sovereign default in history. This performance demonstrates that
properly structured future export receivable transactions provide
the protections needed to survive a sovereign crisis.

Fitch maintains a 'BBB-' rating with a Rating Watch Negative on
YPF S.A. Structured Export Notes II (SENs II). These Notes
currently have $30.1 million outstanding and continue to perform
as they weather the storm in Argentina. Although, YPF's senior
unsecured rating has been downgraded to 'B+', Fitch believes the
performance risk on the SEN II's remains low. In addition to the
implicit support of YPF's parent Repsol, rated 'BBB', Fitch
believes the underlying structure of the SENs protects investors
from a variety of sovereign risks. The notes are backed by oil
exports that are delivered to ENAP, an 'A-' rated Chilean entity.
The transaction has very little redirection risk as all of the
oil is delivered through a pipeline to ENAP in Chile.
Additionally, the Notes mature in October 2002 and have a 3-month
debt service reserve.

Cross-border transactions such as the YPF SEN's securitize the
future revenues generated from exports and control all cash flows
beyond the grasp of the sovereign's jurisdiction. Buyers are
legally obligated to remit payments into an offshore collection
account. This allows the structures to mitigate risks associated
with transfer and convertibility restrictions. In addition to
transfer and convertibility protections, companies similar to YPF
S.A. generate revenues in U.S. dollars which helps insulate them
from the effects of devaluation.

          Juan Lazcano, 1-212-908-0823
          Greg Kabance, 1-212-368-2052, New York
          Eduardo D'Orazio, +54-11-4327-2444, Buenos Aires
          Matt Burkhard, 1-212-908-0540, New York, Media


GLOBAL CROSSING: Stull, Stull & Brody Announces Class Action
A class action lawsuit was filed on June 12, 2002 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, inclusive (the "Class Period") against
defendants 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 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.

Purchasers of Global Crossing common stock between June 15, 1999
and November 10, 2001, inclusive, may, no later than July 23,
2002, request the Court be appointed as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members,
and that the class member will adequately represent the class.
Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Members of the class may
retain Stull, Stull & Brody, or other counsel of their choice, to
serve as your counsel in this action.

          6 East 45th Street
          New York, NY 10017
          Tzivia Brody, Esq.
          Toll-free: 1-800-337-4983
          Fax: 212/490-2022

TYCO INTERNATIONAL: Responds to SEC Probe; Issues Statement
In response to a recent SEC investigation, Tyco International
Ltd. released Wednesday the following statement:

"The Company has been advised that the SEC will open a formal
investigation into issues regarding the Company's former CEO that
have been made public, and any other issues that arise from that
investigation.  The Company is not aware of any other pending
investigation into its accounting practices other than on these
issues. The Company is conducting its own investigation into
matters regarding its former CEO and related issues and will
cooperate fully with any investigation by the SEC."

          Gary Holmes
          Tel. +1-212-424-1314
          Web site:

TYCO INTERNATIONAL: $4.5B Impairment Revises Fiscal 2Q02 Numbers
Tyco International Ltd., announced today that it has restated
previously issued financial statements for the second quarter of
fiscal 2002 to report a $4.5 billion estimated goodwill
impairment related to its wholly- owned subsidiary, CIT Group
Inc. The Company has filed amendments to both Tyco's and CIT's
Forms 10-Q for the quarter ended March 31, 2002. An amendment to
the Registration Statement on Form S-1 related to the proposed
IPO of CIT Group Inc. (Del) has also been filed to reflect this

TYCO INTERNATIONAL: CIT Files Amended IPO Registration Statement
CIT Group Inc. announced Wednesday that an amended registration
statement has been filed with the Securities and Exchange
Commission by CIT Group Inc. (Del) for its proposed initial
public offering (IPO) of common stock.

The amended registration statement relates to an IPO of
200,000,000 shares of common stock being sold by a subsidiary of
Tyco International Ltd. (NYSE- TYC, LSE-TYI, BSX-TYC) at an
estimated price of between $25 and $29 per share. In addition,
CIT will grant to the underwriters an option to purchase up to
20,000,000 shares of common stock to be sold by CIT to cover
over-allotments, if any.

Goldman, Sachs & Co. and Lehman Brothers are acting as joint
book-running managers for the proposed offering.

A written prospectus related to this offering may be obtained
from Goldman, Sachs & Co. or Lehman Brothers.

     Goldman Sachs & Co.                Lehman Brothers
     85 Broad Street                    745 Seventh Avenue
     New York, New York 10004           New York, New York 10019

A registration statement relating to these securities has been
filed with the SEC but has not yet become effective.  These
securities may not be sold nor may offers to buy be accepted
prior to the time the registration statement becomes
effective.  This news release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

          Yvette Rudich, Director of Corporate Communications
          Tel. +1-973-597-2095

TYCO INTERNATIONAL: Moody's Lowers, Considers Further Downgrade
Moody's Investors Service said it downgraded both the long-and
short-term debt ratings of Tyco International Group S.A. to Ba2
from Baa3 and Not Prime from Prime-3, respectively.

Approximately US$23 billion of the US$27 billion of consolidated
debt of Tyco International Ltd. and its subsidiaries (Tyco) is at
the TIG level.

Tyco's ratings remain under review for possible further

The rating actions reflect Moody's heightened concern about the
potential implications for Tyco from widening investigations,
both internally and externally, including the recent firing of
Tyco's chief counsel.

The rating agency said that possible further management changes,
emerging from adverse developments of corporate governance
issues, could divert management focus from the core business and
hinder the company's ability to restore confidence of its
customers, suppliers and investors.

Moody's noted that Tyco is expected to proceed with the planned
IPO of its CIT subsidiary, which should bring needed cash to
begin debt reduction.

However, even with the anticipated debt reduction from the CIT
transaction, the potential risks attendant to the widening array
of management and corporate governance issues at Tyco render the
company's credit profile inconsistent with an investment grade

Lastly, Moody's noted that these rating actions trip contractual
rating triggers that could require TIG to repurchase its JPY30
billion (US$223 million) 3.5% notes due 2030 and to settle an
interest rate hedge that would result in Tyco receiving
approximately US$160 million.

Ratings downgraded, remaining under review for possible downgrade

Tyco International Ltd. -- Convertible debentures (Liquid Yield
Option Notes) to Ba3 from Ba1; senior debt securities,
subordinated debt securities, and preferred stock issued under
its 415 shelf registration to (P)Ba3, (P)B1 and (P)B2 from
(P)Ba1, (P)Ba2 and (P)Ba3, respectively.

Tyco International Group S.A. -- Senior notes and debentures to
Ba2 from Baa3; senior debt securities and subordinated debt
securities issued under its 415 shelf registration to (P)Ba2 and
(P)Ba3 from (P)Baa3 and (P)Ba1, respectively; bank revolving
credit facilities to Ba2 from Baa3; and the short-term debt
rating to Not Prime from Prime-3. These debt obligations and
shelf registration are guaranteed by Tyco International Ltd.

Tyco International (US) Inc. -- Senior unsecured notes and
debentures to Ba1 from Baa2.

ADT Operations, Inc. -- Senior subordinated notes to Ba2 from
Baa3; and subordinated Liquid Yield Option Notes to Ba2 from
Baa3. Both are guaranteed by Tyco International Ltd. on a
subordinated basis.

Raychem Corporation -- The $388 million senior, unsecured notes
to Ba3 from Ba1.

Mallinckrodt Inc. -- Senior unsecured notes and debentures, and
industrial revenue bonds to Ba3 from Ba1.

TYCO INTERNATIONAL: Moody's Affirms CIT's Ratings
Moody's Investors Service affirmed Wednesday CIT Group's long and
short-term ratings (A2 long-term, Prime-1 short-term). CIT's
parent, Tyco International, has reiterated its intent to separate
CIT from it via a third-party sale or initial public offering.

The bond rating agency said that its rating affirmation is
conditioned upon the separation being completed in the very near

However, given the increasingly fluid situation at Tyco that
could affect CIT's separation or its timing, Moody's said it
changed its outlook on CIT's ratings to negative from stable.

Moody's added that the current de-linkage of CIT's and Tyco's
ratings reflects the expectation that the separation will occur.

Tyco has also stated that it intends to complete CIT's separation
by early July.

However, if there were further developments that reduce the
probability or delay the timing of CIT's separation from Tyco,
the rationale for the differential between the two companies'
ratings would no longer be valid. In such a case, Moody's would
significantly narrow or eliminate the notching differential
between the two companies' ratings.

Moody's said that CIT's franchise remains sound, and supports the
company's A2/Prime-1 ratings. Moody's expects that if CIT
achieves its separation, its rating outlook will be stable. Its
disclosure that it will restate its March 31, 2002 financial
statements to reflect a US$4.5 billion write-down to its goodwill
is not a rating concern. This goodwill related to the price Tyco
paid for CIT. Moody's said that it does not believe that further
goodwill write-downs would be a rating issue, should they occur.

CIT Group, Inc., headquartered in Livingston, New Jersey, is one
of the largest commercial finance companies in the United States
and reported managed assets of approximately $48 billion at March
31, 2002.

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

TYCO INTERNATIONAL: S&P Threatens Junk Status if CIT IPO Fails
Standard & Poor's warned it will further cut the ratings of Tyco
International Ltd to below investment grade or junk status if it
fails to launch its IPO of subsidiary CIT Group Inc within two
weeks and raise enough money in the process.

Tyco, which has about US$27 billion of outstanding debt,
originally expected to raise about US$6.5 billion when the
offering was proposed on May 22, 2002.

"We didn't write a number in stone, but the rating action already
assumes that they don't get the US$6.5 billion," said S&P
director Thomas Kelly.

If the IPO is successful, S&P will evaluate whether the amount
received is sufficient to meaningfully reduce the significant
amount of debt due in early 2003.

On June 7, S&P cut Tyco's long-term ratings to BBB- from BBB, and
downgraded CIT's long-term counterparty credit ratings to BBB+,
from A- as a result of declining investor confidence following
the indictment of former Tyco chief executive officer and
chairman Dennis Kozlowski on tax evasion charges, the delay in
the IPO due to SEC requests for additional information, and
heightened refinancing risk.

Tyco's CreditWatch implications are now negative. CIT's
CreditWatch implications are developing.

TYCO INTERNATIONAL: Wooing SPX Head To Lead Rescue
Reports have it that Tyco International Ltd. is wooing SPX Corp.
President and Chief Executive Officer John B. Blystone to come to
the rescue of the troubled company, according to The Muskegon

A report Tuesday on CNBC-TV's noon-time show "Power Lunch"
speculated that Blystone was among the candidates being eyed for
the top Tyco post after former Tyco CEO L. Dennis Kozlowski
resigned amid an investigation into personal tax evasion.

Neither company would comment on the validity of the report.

Blystone, a former North Muskegon resident, has led the 91-year-
old SPX to unprecedented heights since joining the former
Muskegon company in November 1995. The company was founded in
1911 as The Piston Ring Co., was known as Sealed Power Corp. for
most of the 20th century and was named SPX in 1988.

SPX is a global provider of technical products and systems and a
broad range of industrial products. SPX revenues for 2001 were
about US$5 billion.

          13515 Ballantyne Corporate Place
          Charlotte, NC 28277
          Phone: 704-752-4400
          Home Page:
          Investor Contact:
          Charles Bowman, Director of Corporate Finance
          Phone: 704-752-4452


RBG RESOURCES: Windup Order Includes Smelter, Mine Sales
The High Court in London has formally ordered the liquidation of
RBG Resources, the tin trader immersed in allegations of
fraudulent deals, says Reuters.

The news agency says the provisional liquidation ordered last
month was upgraded to formal liquidation Wednesday during a
hearing.  A receiver, who will be tasked to pay debts by selling
available assets and winding up the business, will be appointed

The court ordered the windup upon a petition initiated by WestLB
Panmure, the London-based arm of German bank Westdeutsche
Landesbank Girozentrale (WestLB).  The bank is seeking payment
for GBP11 million worth of loans.

Last month, Mr. Justice Laddie of the High Court opined that
there was evidence indicating that the trading company may have
indeed misled creditors by declaring bogus deals.

Mr. Justice Laddie of the High Court said: "If these were not
bogus [trades], there would be an enormous amount of money coming
in... What is terribly noticeable is that there has not been any
incoming money for nearly a month, and some has been outstanding
for nearly three months."

Stephen Smith, QC for the liquidators, said during the last
hearing that the company is owed US$478 million from more than
100 trading partners around the world.  The liquidators, from
Grant Thornton, estimate about US$450 million of these funds are

"You have a strong prima facie case of fraud - that US$400
million has gone 'walkies'... [But, if your case is correct] by
the time you get to trial, there are going to be no assets left,"
Justice Laddie told Mr. Smith then.

According to Troubled Company Reporter-Europe, the full extent of
the fraud is not yet clear, but some sources close to the
investigation are suggesting it could be more than US$600

Multi-millionaire Viren Rastogi, who was arrested during a raid
by the Serious Fraud Office last month on the company's offices
in Piccadilly, London, is named one of four defendants by the
liquidators.  The other three individuals are Gautan Majumdar and
Anand Jain, both directors of RGB; and a senior manager.

Liquidators are accusing the four of fabricating evidence of
substantial trades that were used as collateral for loans from
banks, TCR-Europe said.

Meanwhile, Reuters disclosed that Grant Thornton had already sold
RBG's tin smelter in the Bolivian town of Oruro. The deal was
sealed early this month. The liquidator is now looking to sell
the company's 50% stake in Bolivia's largest tin mine Huanuni.
It is also looking for a buyer for the Vinto smelter.

The Huanuni mine is located some 130 km southeast of the Bolivian
capital of La Paz and produces 300 to 350 tonnes of refined tin a
month, the news agency says.

The Vinto smelter, which takes about 40% of its feedstock
requirements from Huanuni, produces around 950 and 1,000 tonnes
of refined tin a month, contributing around five percent to world
tin output.

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

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


Salomon Smith Barney raised its stock recommendation on
Eletropaulo Metropolitana SA to `outperform' from `neutral' and
upped the target price by 78% to BRL81 for the Brazilian
electricity provider's local shares.

According to a report by Dow Jones Newswires, the new price
target is based on a target multiple of 5.5 times the 2002 EBITDA
forecast which Salomon increased to BRL1.4 billion from BRL1.2

Meanwhile, credit rating agency Standard & Poor's (S&P) is
monitoring Eletropaulo's ability to cover its finances.

Eletropaulo is currently repaying or refinancing significant
maturities coming due in 2002. The Company is expecting some
BRL720 million in cash in the second-quarter, but S&P believes
that even together with a BRL960-million advance from state
development bank BNDES to cover rationing losses, this will be
insufficient to meet payment of principal and interest.

Furthermore, 2003 brings additional refinancing risk as debt held
at AES Elpa and Transgas (contracted by Eletropaulo's US owner
AES with BNDES) matures.

Maintaining Eletropaulo's current rating (global issuer credit
rating 'BB-' with a negative outlook) depends on its capacity to
make firm financing arrangements for its 2002 debt with adequate

Eletropaulo provides electricity to about 4.5 million Brazilians
in Sao Paulo state.

         Avenida Alfredo Egidio de Souza Aranha 100-B,
         13 andar 04726-270 San Paulo
         Phone: +55-11-548-9461, +55 11 5696 3595
         Fax: +55-11-546-1933
         Luiz D. Travesso, Chairman and President
         Orestes GonOalves Jr., VP Finance/Investor Relations

LIGHT: Introduces Plan To Prevent More Customer Defaults
Electricity distributor Light Servicos De Eletricidade S.A.,
after losing 10% of its last year's income from consumer non-
payments, is now launching a scheme aimed to boost early payments
from consumers.

Customer defaults last year lead to losses of BRL390 million. Of
the Company's 3 million accounts, some 15% are currently behind
in paying customer bills.

The campaign called Club light, offers consumers who pay on time
with discounts of up to 15% at Multibras and Ponto Frio retail
chains. Discounts are also seen to be offered at Sendes
supermarket and Drogasmil drugstore chains.

Light had previously started a campaign discouraging illegal
tapping of the company's power lines.

          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO

RTB: To Renegotiate $100M Debt; Seeks to Lower Interest
RTB (Radio e Televisao Bandeirantes is looking to renegotiate a
US$100-million debt. The Brazilian TV and radio broadcasting
company's burden falls due in 2006, reports Gazeta Mercantil.

The Company has hired Deutsche Bank as the exclusive agent on an
international offer operation.

The negotiations with Deutsche Bank involves the reduction of
interests rate from 12% per year to 9% per year.

CONTACT:  Deutsche Bank (Latin American portfolio)
          Taunusanlage 12
          60262 Frankfurt, Germany
          Phone: +49-69-910-91000
          Fax: +49-69-910-34227
          Home Page:


ENERSIS: Execs On Road Show To Battle Slumping Share Price
Chilean electricity holding Enersis SA has seen its share price
buffeted this year as investors are becoming increasingly worried
about the markets in which the Company operates, reports Dow
Jones Newswires.

Enersis American Depositary Receipts were trading up 1.2% at
US$6.98 at midmorning Wednesday, which compares to its 2001 year-
end closing price of US$13.30 per ADR.

Enersis, which is 65% owned by Spain's Endesa SA, has both
generation and distribution electricity businesses in Chile,
Argentina, Brazil and Colombia.

In Argentina, where it operates through Buenos Aires-based
electricity distributor Edesur, the Company is still battling
with the seemingly never-ending recession.

In Brazil, investor worries are more broadly based, as
presidential elections in October cast a shadow of uncertainty
over the country's political and economic future. Also, there
have been increasing jitters regarding the Brazilian government's
large public debt.

In order to reassure investors following the sharp decline in the
Company's share price, high-level executives spent the last two
weeks of May going on a road show to meet with institutional
investors in Europe and the United States.

According to company spokesman Marcelo Castillo, Enersis
President Alfredo Llorente, Chief Executive Hector Lopez and
Deputy CEO Juan Dominguez visited investors in New York, San
Francisco, Los Angeles, Boston, London, Edinburgh and Madrid.

          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

EMPRESAS LUCCHETTI: Court Grills Execs on Graft Charges
Chilean businessman Andronico Luksic was tried before a Peruvian
judge Tuesday on allegations of influence trafficking, reports
Dow Jones Newswires, citing a court official.

Officials of Empresas Lucchetti SA, the Company, which is
controlled by the Luksic family, and which owns a pasta factory
in Lima, were caught in a secretly-taped video negotiating with
former spy chief Vladimiro Montesinos for support in a legal
battle against the municipal government of Lima, allowing it to
build the plant in an ecological reserve known as the Pantanos de

The city fought against construction of the plant but eventually
lost in the courts.

According to media reports, Lucchetti officials gave US$2.0
million in campaign contributions for now-exiled former President
Alberto Fujimori, whose government approved the building of the

Lucchetti had previously rejected the allegations.

The Lucchetti plant in Peru involved US$135 million in
investments. The trial will continue this week with other
Lucchetti officials scheduled to appear before the court.

          2600 Av Vicuna Mackenna
          Comuna de Macul Santiago
          Phone: +56 238 2711
                 +56 238 6592
          Home Page:


ENKA DE COLOMBIA: Seeks Bankruptcy Protection From Creditors
Textile company Enka de Colombia sought protection from Lei de
Intervencion Economica to restructure about US$48 million of

Enka amassed losses of pesos$56.27 million during the previous
year. The Company had negotiated with Creditors since last year
to extend its payment period.

Excessive supply of synthetic fibers from Southeast Asian
countries are at the root of Enka's current financial condition,
according to its management. Asian products have been steadily
exported to Latin American countries since North American and
European countries closed their markets to cheaper imports.

The textile company says it has full support from clients and
creditors in the move to overhaul its finances.

Enka is owned by the Grupo Empresarial Antioqueno and the Dutch
Akzo company. The Company produces raw materials for polyester
and polyamide, such as chips,  tire fabrics, fibers and textile
filament yarns.

          Carrera 63 49A-31, floor 9
          P.O. BOX 5233
          Medellín, Colombia
          Home Page:
          Financial Administration
          Tel. : +(57 4) 405 5132
          Fax : +(57 4) 405 5130

          Investors Services
          Tel. : +(57 4) 405 5511
          Fax : +(57 4) 405 5110

TELECOM: Minister Urges Striking Workers Back to Deal Process
Colombian Communications Minister Angela Montoya called on the
6,500 striking workers of Colombian firm Telecom to go back to
the negotiating table.

"We have been negotiating with the union for almost 20 days,
Montoya said, adding that the latest talks ended unsuccessfully
early Wednesday morning after 10 hours.

"The company is asking for the strike to end because we cannot
sit down to talk with a union that has paralyzed the country's
telecommunications," she said.

Deeming the two-week strike illegal because Colombian law
prohibits the interruption of essential public services, Montoya
warned that the state-owned telephone company is on the edge of

Telecom officials have admitted that the Company is facing
financial ruin because of US$2 billion in pension liabilities for
its 14,000 retired employees. Adding up to that is the recent
order from the Colombian court to have Telecom pay more than
US$64 million to Canada's Nortel Networks for breach of an
installation contract signed in 1996.

Telecom, which was a monopoly until the early 1990s, now faces
stiff competition from private companies.

The Company's future is also threatened by suits filed by
Siemens, Alcatel, NEC, Ericsson and Itochu, which are demanding
damages totaling $1.8 billion for breach of contract.


AEROMEXICO/MEXICANA: Slim Not Interested In Upcoming Sale
Mexican businessman Carlos Slim, the richest man in Latin
America, said he is not interested in purchasing a stake in one
of Mexico's two flagship airlines, relates Dow Jones Newswires.

AeroMexico and Mexicana are the main units of airline holding
company Cintra SA, which is 65% owned by the Mexican government.
The airlines are scheduled to be sold-off separately this year.
Merrill Lynch & Co., the third-largest global mergers and
acquisitions adviser, recently won a mandate to manage the sale.

"Financially we could enter Cintra, but there's not much
interest," Slim said Tuesday at a meeting with reporters. Slim,
however, admitted he's open to offering them financing through
his bank Grupo Financiero Inbursa SA.

Cintra, whose shares last traded May 10 at MXN3.9, has a market
value of MXN3.8 billion (US$399 million).

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

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

          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
          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

AEROMEXICO: Halts Investment Plans On Dwindling Cash Flow
Aeromexico and its subsidiary Servicios Aereos Litoral
(Aerolitoral) have frozen their investment plans and non-
fundamental projects, says Notimex. The companies had to take the
drastic measure because of dwindling cash flow. Aeromexico blames
part of the problem on the lack of credit for the payment of
terrorist insurance policies.

"Cost reduction programs will continue throughout the year, and
project that do not contribute to our business will be
eliminated," said Adela Callejas Mejia, vice president of

Callejas said the companies would receive US$20 million in cash
from the federal government, money that would help improve both
companies' operations, since the funds will be used to improve
their fleet of aircraft.

"Investments in security and operations will not be affected
because those are the most important issues for us," stated the

In a previous TCR-LA report, Alejandro Yberri, director of
Marketing and Services at Aeromexico, said that the airline is
likely to continue reporting lower figures in June, despite the
appearance of the first signs of economic recovery.

According to Yberri, airlines are still reeling from the
aftermath of the September terrorist attacks in the United States
and are being battered by the drop in airfares. Problems of the
airlines are worsened by the fact that airfares are governed by
the law of supply and demand, which caused inequalities between

ISPAT INTERNATIONAL: 1Q02 Net Loss Shrinks; Projects Breakeven
Ispat International N.V., reported Wednesday a consolidated net
loss of $39 million or negative 32 cents per share for the first
quarter of 2002 as compared to a consolidated net loss of $59
million or negative 49 cents per share for the first quarter of
2001. The Company believes, based on information currently
available, that it will break even in the second quarter of 2002.

EBITDA(1) for the first quarter of 2002 was $38 million as
compared to EBITDA of $3 million for the first quarter of 2001.

In the first quarter of 2002, the Company recorded an 11%
decrease in steel shipments to 3.3 million tons from 3.8 million
tons, as well as an 11% decrease in Sales(2) to $1,065 million
from $1,200 million in the first quarter of 2001. These decreases
were mainly due to difficult market conditions that affected both
shipments and selling prices.

The Company generated $59 million in working capital reduction
during the first quarter of 2002. As at March 31, 2002, the
Company's consolidated cash, cash equivalents and short-term
liquid investments totaled $79 million. The Company also had
approximately $356 million available to it under various undrawn
lines of credit and bank credit arrangements(3). Capital
expenditure for the first quarter of 2002 totaled $14 million.

Ispat International N.V. is one of the world's largest and most
global steel producers, with major steelmaking operations in the
United States, Canada, Mexico, Trinidad, Germany and France. The
Company produces a broad range of coated, cold rolled and hot
rolled products, high quality wire rods and semi-finished flat
and long products sold to customers in over eighty-five
countries. Ispat International is a member of The LNM Group.

To see financial statements:

          Annanya Sarin, Head of Communications
          Tel. +44-20-7543-1162
          T.N.Ramaswamy, Director, Finance

          John McInerney, Investor Relations
          Tel. +1-212-419-4219

GRUPO BITAL: Backing 5,000 Firms With MXN10B In Financing
Grupo Financiero Bital is to support 5,000 companies with
financing of some MXN10 billion (US$1.03 billion), Mexico City
daily El Universal reports. The move, according to Sergio Mata
D vila, deputy director of Business banking at Bital, comes with
the approval of the Secretary of the Economy and State credit
organization Nacional Financiera. Mr. Mata said that new lines of
credit could be offered to businesses because the country is
beginning to grow once more.

"The granting of new credit lines is made possible with the help
of the financial authorities and the development banks. If we do
not club together, it will be impossible to face the market's
demands," said Mata D vila.

"We banks are prepared to lend, but the question is whether the
companies can face up to their financial commitments."

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


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 * * *