TCRLA_Public/020710.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, July 10 2002, Vol. 3, Issue 135

                           Headlines


A R G E N T I N A

ARGENTINE BANKS: Economy Minister Says Bond Swaps Not Mandatory
STARMEDIA NETWORK: Sells Web-based Assets To eresMas
STARMEDIA NETWORK: Prepares To Re-file Financial Statements


B E R M U D A

GLOBAL CROSSING: Files MOR With U.S. Bankruptcy Court


B R A Z I L

BANCO DO NORDESTE: Fitch Lowers Support Ratings
BESC: Fitch Lowers Support Ratings on Regional Concerns
CSN: Corus Looks To Acquire Majority Stake For $700M
EMBRATEL: Wins Injunction Preventing Expansion By Spanish Firm
GRUPO SPLICE: Considers Options For Dealing With Maturing Debt
INEPAR: Resumes Debt Talks With BNDES After Prior Rejection


C H I L E

TELEFONICA CTC: Shares Down As Unions Enter Week Two Of Strike
TELEFONICA CTC: Expects 2Q02 Loss From Terra Lycos Charge


M E X I C O

AVANTEL: Clarifies Independence From WorldCom
GRUPO BITAL: Director Wants Spanish Bank Out
GRUPO DINA: Informs Bourse of Plan To Buy Back Suspended Shares
XEROX MEXICANA: Unaffected By Parent's Accounting Irregularities


     - - - - - - - - - -


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

ARGENTINE BANKS: Economy Minister Says Bond Swaps Not Mandatory
---------------------------------------------------------------
Argentine Economy Minister Roberto Lavagna confirmed bond swaps
for bank deposits would not be mandatory, BBC News reports. The
announcement comes as clarification to recent declarations from
the country's Central Bank.

"If people prefer to remain as bank creditors instead of
creditors of the state, that is legitimate", he said to the press
in declarations released on Monday.

The Argentine Central Bank has offered the bond plans after
lifting the banking freeze, which led to public protest in the
country. The banking freeze was imposed last December to stave
off panic withdrawals from depositors in an effort to prevent
collapse of the country's banking system.

The switch of savings into government bonds was part of the
condition satisfied by the Argentine government to obtain an
emergency loan from the International Monetary Fund (IMF).

Last week rumors had spread that the government was about to make
obligatory the conversion of deposits bonds.  The new Central
Bank President, foreseeing the conversion may fail, had pointed
out the need to make it compulsory.  He said that in order to
maintain future withdrawals, the banks deposits that must be
changed into bonds should not be less than 30%.  Reports on
Friday showed that only less than 1% of total bank deposits had
been swapped for bonds.

The government has offered to swap up to US$16 billion of
deposits for bonds that could be converted to cash in three,
five, or 10 years.  Depositors were given a month to decide
whether to accept peso or dollar bonds for their bank savings.

The economy ministry also offered new incentives for people to
accept bonds, including the permission to use the bonds to buy
shares on the stock exchange, or buy new houses.


REPSOL YPF: To Offset Peso Slump in Payment to Petrobras
--------------------------------------------------------
The plunge in the Argentine peso will force Repsol YPF SA to
compensate Petroleo Brasileiro SA (Petrobras), Bloomberg reports,
citing Petrobras Chief Executive Officer Francisco Gros.

"As it stands right now we should be getting some compensation
from Repsol," said Petrobras Chief Executive Officer Francisco
Gros. He declined to say how much Petrobras will get from Repsol.

The payment is part of the US$1-billion asset swap that the two
oil companies completed last year. The asset swap includes
provisions for declines in currencies in Brazil and Argentina.
Gros said the currency impact is revised monthly.

Repsol's profit plunged 58% in 2001 as the Company set aside
EUR2.74 billion (US$2.7 billion) from reserves and earnings to
cover potential losses from the 72% plunge in the peso this year
against the dollar. Repsol, Europe's fifth-biggest oil company,
bought YPF SA in Argentina for US$15 billion in 1999.

Meanwhile, as part of a plan to invest US$140 million over the
next four years to expand in Argentina, Petrobras expressed an
interest in acquiring YPF if Repsol decided to sell the unit.
Gros noted though that Madrid-based Repsol had expressed no
interest in selling its Argentine assets.

CONTACTS:  REPSOL YPF
           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page: http://www.repsol.com
           or
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires
           Argentina


STARMEDIA NETWORK: Sells Web-based Assets To eresMas
----------------------------------------------------
Spanish Internet company eresMas bought StarMedia Network's Web-
based assets in an US$8-million cash deal, reports Internet.com.
The sale includes StaMedia's interactive community, known as
Latin Red, and its flagship StarMedia portal.

Launched amid the so-called portal wars of the mid-1990s with
plans to dominate Latin American and Spanish-speaking markets as
a kind of Spanish version of Yahoo!, StarMedia once boasted a
market capitalization of about US$2 billion at the height of the
tech bubble. After spending lavishly to grab early market share,
the Nasdaq sell-off in the spring of 2000 cut off its capital
spigot. With the collapse of the online advertising market later
that year, its financial difficulties kept mounting.

StarMedia Network is an integrated Internet Media and Business
Solutions company targeting Spanish- and Portuguese-speaking
audiences, providing technology and services that enable
consumers and businesses to take full advantage of the
Internet. The company has operations in Argentina, Brazil, Chile,
Colombia, Mexico, Puerto Rico, Spain, Venezuela, and throughout
the United States.

CONTACT:  STARMEDIA NETWORK
          Media - Romi Schutzer
          Tel. +1-212-905-8269
          romi.schutzer@starmedia.net

          Mariana Cavin
          Tel. +1-212-905-8267
          mariana.cavin@starmedia.net

          INVESTORS:
          Daniel Oehl of Zemi Communications
          for StarMedia Network
          Tel. +1-212-689-9560
          djoehl@zemi.com


STARMEDIA NETWORK: Prepares To Re-file Financial Statements
-----------------------------------------------------------
StarMedia Network Officials are preparing to re-file the
Company's financial statements covering 2000 through the first
half of 2001 after two subsidiaries -- AdNet and StarMedia Mexico
-- improperly recognized approximately US$10 million in revenues.

StarMedia blamed the internal investigation for the delay in
filing its third quarterly earnings statement last year. By
February, the Nasdaq Stock Market had delisted the company's
shares. StarMedia said once its filings are up to date, it plans
to provide more information about its plans and current financial
position.



=============
B E R M U D A
=============

GLOBAL CROSSING: Files MOR With U.S. Bankruptcy Court
-----------------------------------------------------
Global Crossing's Monthly Operating Report (MOR) was filed with
the U.S. Bankruptcy Court for the Southern District of New York
today, as required as part of its Chapter 11 reorganization
process. Consolidated results reported in the MOR, which includes
Asia Global Crossing, are summarized in the Company's official
press release.

Global Crossing also announced that it continued to meet
performance targets that were established for its non-Asian
entities and presented to creditors in early March. For the month
ending May 31, 2002, Global Crossing exceeded all performance
targets, including service revenue, operating expenses and cash
in its bank accounts.

"Our latest results signal that we are well on our way to
completing a successful reorganization and that the turn-around
plan we began implementing last year has been tremendously
effective," said John Legere, Global Crossing chief executive
officer. "Many telecommunications companies are restructuring,
and many CEOs have recently announced strategies to refocus their
service offerings, lower costs, sell non-core assets, lower
headcount, lower operating costs, and dramatically cut capital
expenses. The real question is: can that be done without losing
customers or harming your franchise?"

Mr. Legere continued, "We announced and initiated our
restructuring efforts in 2001 and since then have continued to
take all necessary steps to restructure our company. Having taken
these steps, our customers, our network and our strategic
differentiation are intact. I am very proud of what this team has
accomplished, and appreciative of the support our customers, both
new and old, have shown."

Operating Results for Non-Asian Entities

In May 2002, Global Crossing's non-Asian entities beat Service
Revenue targets set forth in the operating plan by $10 million
(see "Definitions and Notes" below). Actual results were $245
million in Service Revenue, compared to a target of $235 million
in the operating plan. Service EBITDA exceeded plan goals, with
actual results reflecting a $13 million loss compared to a
targeted loss of $18 million.

Total cash in bank accounts was also higher than targets forecast
in the operating plan, with $880 million as of May 31, 2002,
compared to a plan of $735 million. The aggressive cost-cutting
required in the operating plan was ahead of schedule, with
operating expenses of $71 million in May, lower than the $75
million allowed in the plan, and approximately 40% lower than the
run rate for operating expenses at the end of 2001.

"We have successfully lowered operating expenses month-over-
month, met all our goals for Services Revenue, improved network
performance, and retained customers. What's more, we have
continued to win new customers even though our plan assumed we
wouldn't during our chapter 11 proceeding," said Mr. Legere.
"This is a testament to the underlying value of the network we
completed last year and the commitment of our team to taking care
of our customers and ensuring the highest possible service
levels."

IP Traffic Increases, Network Availability Reaches 99.999%

Internet demand has grown steadily since the beginning of 2002,
and in June Global Crossing recognized an increase in worldwide
IP data traffic of approximately 400% since January on an
annualized basis. Global Crossing's network, which was completed
in 2001, connects more than 200 cities in 27 countries. The 400%
growth in IP traffic does not include traffic on its Voice Over
IP (VoIP) network, which now carries approximately 25% of the 4
billion minutes per month Global Crossing now supports.

The increase in IP data network traffic is attributed in some
part to Global Crossing's continued focus on expediting solutions
for its wholesale customers worldwide, including customers who
chose to migrate to Global Crossing due to the cessation of
operations by other pan-European providers. The growth in network
traffic is also attributed to Global Crossing's demonstrated
ability to provision new customers onto its network in less than
24 hours without a decline in network performance. During the
second quarter, network performance achieved and sustained
99.999% availability, the telecommunications industry's highest
standard.

Global Crossing issued a related article detailing growth in
traffic and improvements in network performance. A copy of that
release can be found at www.globalcrossing.com.

MOR Results

Global Crossing today filed a Monthly Operating Report (MOR) with
the U.S. Bankruptcy Court for the Southern District of New York,
as required by its Chapter 11 reorganization process. These
consolidated results include Asia Global Crossing and revenue
from sales of capacity in the form of IRUs that occurred in prior
periods, recognized ratably over the life of the relevant
contracts.

Results reported in the MOR include the following:

For continuing operations in May 2002, Global Crossing reported
consolidated revenue of approximately $262 million. Consolidated
operating expenses were reported at $86 million, while access and
maintenance costs were $205 million in May 2002.

In addition, Global Crossing reported a consolidated GAAP
(Generally Accepted Accounting Principles) cash balance as of May
31, 2002 of approximately $1,230 million, including $394 million
of cash held by Asia Global Crossing. Global Crossing's $836
million cash balance excluding Asia is comprised of $439 million
unrestricted cash, $331 million in restricted cash and $66
million of cash at Global Marine.

Global Crossing reported a consolidated net loss of $137 million
for May 2002. Consolidated EBITDA was reported at a loss of $29
million.


   ITEM               MAY 2002       APRIL 2002      IMPROVEMENT
   Consolidated operating
    expenses         $86 million    $96 million      $10 million
   Consolidated access,
    maintenance      $205 million   $218 million     $13 million
   Consolidated
    net loss         $(137 million) $(163 million)   $26 million
   Consolidated
    EBITDA           $(29 million)  $(48 million)    $19 million

Definitions and Notes

"Service Revenue" refers to revenue less (i) any revenue
recognized immediately for circuit activations that qualified as
sales-type leases and (ii) revenue recognized due to the
amortization of IRUs sold in prior periods and not recognized as
sales-type leases.

"Service EBITDA" refers to EBITDA (earnings before interest,
taxes, depreciation, and amortization) but excluding the
contribution of (i) any revenue recognized immediately for
circuit activations that qualified as sales-type leases and (ii)
revenue recognized due to the amortization of IRUs sold in prior
periods and not recognized as sales-type leases.

The results for non-Asian entities discussed in the "Operating
Results for Non-Asian Entities" section of this release are
included in the consolidated results reported in the May 2002
Monthly Operating Report, and are consistent with targets
presented to the creditors of Global Crossing's non-Asian
entities in March 2002. These operating results exclude Global
Marine (which is a discontinued operation), exclude any revenue
contribution of sales of capacity in the form of IRUs
(indefeasible rights of use), and reflect certain eliminations
and adjustments that do not appear in the MOR. Cash balances
reported in this section are bank balances, not reflecting the
estimated impact of outstanding checks and other adjustments as
required by GAAP.

About Global Crossing

Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda. On the same date, the Bermuda
Court granted an order appointing joint provisional liquidators
with the power to oversee the continuation and reorganization of
the Bermuda-incorporated companies' businesses under the control
of their boards of directors and under the supervision of the
U.S. Bankruptcy Court and the Supreme Court of Bermuda. On April
23, 2002, Global Crossing commenced a Chapter 11 case in the
United States Bankruptcy Court for the Southern District of New
York for its affiliate, GT UK, Ltd. Global Crossing does not
expect that any plan of reorganization, if and when approved by
the Bankruptcy Court, would include a capital structure in which
existing common or preferred equity would retain any value.
Please visit www.globalcrossing.com or www.asiaglobalcrossing.com
for more information about Global Crossing and Asia Global
Crossing.

CONTACT:  GLOBAL CROSSING
          Press Contacts
          Tisha Kresler
          Phone: + 1 973-410-8666
          E-mail: Tisha.Kresler@globalcrossing.com

          Kevin Burgoyne
          Latin America
          Phone: + 1 305-808-5925
          E-mail: Kevin.Burgoyne@globalcrossing.com

          Mish Desmidt
          Europe
          Phone: +44 (0) 7771-668438
          E-mail: Mish.Desmidt@globalcrossing.com

          Analysts/Investors Contact
          Ken Simril
          Phone: + 1 310-385-3838
          E-mail: investors@globalcrossing.com



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

BANCO DO NORDESTE: Fitch Lowers Support Ratings
-----------------------------------------------
International credit rating agency, Fitch Ratings, has changed
the Support ratings of Banco do Nordeste do Brasil (BN) to '4T'
from '2T'. Fitch's Support ratings assess whether a bank would
receive support from its owners or from the state in the case of
difficulties; this assessment includes financial capability and
willingness.

BN is owned by the federal government, and is subject to
political influence within its area of operation -- Brazil's
northeastern region. Fitch believes that this institutions would
receive support from the federal government, but, given that
Brazil's local currency sovereign ratings remain considerably
below investment grade, this support is not certain.

BN, established in 1952, is controlled by the federal government,
which holds 96.2% of its voting capital. It is a multiple bank
operating as a development bank throughout Brazil's northeastern
region, and, among other development programs, manages the FNE
(Northeastern Financing Fund) with total equity of BRL9.8 billion
at end-2001. BN receives monthly deposits from governmental
institutions and, through the FNE, proceeds from federal taxes
(1.8% of total income tax and tax on manufactured products). BN
is headquartered in Fortaleza and has 174 branches.

Fitch's Individual ratings assess how a bank would be viewed if
it were entirely independent and could not rely on external
support. Its Support ratings deal with the question of whether a
bank would receive support from its owners or from the state if
it were to get into difficulty. These ratings are not debt
ratings but rather, respectively, an assessment of the intrinsic
strength of a bank and of any level of outside support that may,
or may not, be available to it. A Support rating qualified by the
suffix "T" indicates significant existing or potential transfer
risk of economic and/or political origin that might prevent
support for foreign currency creditors.

Contact: Rafael Guedes, Sao Paulo Tel: +55 11 287 3177 Peter
Shaw, New York Tel: +1 212 908 0553


BESC: Fitch Lowers Support Ratings on Regional Concerns
-------------------------------------------------------
Fitch Ratings, the international rating agency, has changed the
Support ratings of Banco do Estado de Santa Catarina (BESC) to
'4T' from '2T'. Fitch's Support ratings assess if a bank would
receive support from its owners or from the state in the case of
difficulties; this assessment includes financial capability and
willingness.

BESC is owned by the federal government, and is subject to
political influence within its area of operation -- Brazil's
southern state of Santa Catarina. Fitch believes that this
institution would receive support from the federal government,
but, given that Brazil's local currency sovereign ratings remain
considerably below investment grade, this support is not certain.

BESC is a mid-sized commercial bank, established in 1962 by the
state of Santa Catarina (SSC) to foster the state's economic
development. The bank offers retail banking services through 521
outlets (256 branches) mainly located in that state. It also
offers, through subsidiaries, mortgage and consumer financing,
leasing and fund management. As part of the reorganization
process for the upcoming privatization, SSC increased its stake
in BESC's total capital to 94%, from 52%, through a BRL790-
million capital injection in August 2000, funded by the federal
government. As a result, BESC became a federal bank.

Contact: Rafael Guedes, Sao Paulo Tel: +55 11 287 3177 Peter
Shaw, New York Tel: +1 212 908 0553


CSN: Corus Looks To Acquire Majority Stake For $700M
----------------------------------------------------
Corus Group Plc, Europe's second-largest steelmaker, is seeking a
majority stake in Cia. Siderurgica Nacional (CSN), Brazil's top
steelmaker, at a cost of US$700 million, reports the Financial
Times.

Corus last week said it was in talks to buy CSN, valued at
BRL3.43 billion (US$1.19 billion), but the European company
declined to say much of CSN it wanted to own.

CSN for its part denied it was in talks with any group over a
possible sale. Echoing his comments regarding the rumors through
spokesman Sergio Costa, Benjamin Steinbruch denied he is trying
to sell CSN.

The sale of CSN to Corus Group could ease the burden of the
Brazilian firm's debt totaling US$2.7 billion, 85% of which is in
dollars. CSN's debt has soared in local currency terms as the
real has lost 20% against the dollar this year, causing losses to
skyrocket.

In May, CSN reported that consolidated first-quarter net losses
rose 0.6% to BRL197.8 million, or BRL2.76 per 1,000 shares,
fromBRL196.8 million, or BRL2.74 per 1,000 shares, a year ago. In
thequarter, CSN accounted for BRL329 million of deferred
foreignexchange losses, including BRL300 million related to
currencylosses last year.

In a note with CSN's 2001 financial statements, Arthur Andersen
LLC said that as of Dec. 31, 2001, "the Company overvalued its
assets by BRL580 million and its profit by BRL575 million." A
year earlier, the Company overvalued assets by BRL171 million and
profit by BRL154 million, Arthur Andersen said.

Brazil's securities and exchange regulator allowed companies to
defer currency-related losses after steep declines in the real
against the dollar in 1999 and 2002. CSN is one of only a handful
of companies that utilized the accounting measure.

CONTACT:  CIA SIDERURGICA NACIONAL (CSN)
          Rua Lauro Muller 116-36 Andar, PO Box 2736
          Rio De Janeiro, Brazil, 22299-900
          Phone: 55 21 5451707
          Fax: 5521 5451529
          Home Page: http://www.csn.com.br/english/index.htm
          Contact:
          Benjamin Steinbruch, CEO (interim basis)
          Antonio Mary Ulrich, Exec. Officer - Investors
                                               Relations


EMBRATEL: Wins Injunction Preventing Expansion By Spanish Firm
--------------------------------------------------------------
Embratel Participacoes SA managed to receive a second injunction
blocking Brazilian fixed-line Telesp, a unit of Spanish company
Telefonica SA, from expanding nationwide, reports Dow Jones
Newswires.

The latest injunction came just days after Brazilian regulator
Anatel (Agencia Nacional de Telecomunicacoes) granted Telefonica
the rights to provide nationwide services through a regulatory
`authorization,' which sidestepped a legal challenge to an
earlier 'concession' Anatel granted to the Spanish carrier.

Embratel has challenged Anatel's moves, alleging that the
granting of permission to Telefonica represents a change in the
rules of the game and that Telefonica charges different
interconnection charges compared to its competitors.

Telefonica, for its part, said that the attitude of Embratel is
producing an environment of disrespect for the commitments of
foreign investors in the Brazilian telecommunications sector.

Anatel, which has already appealed an earlier injunction granted
on its 'concession' to Telesp, said it has yet to decide if it
will appeal the latest injunction.

Embratel is controlled by the embattled U.S.-based WorldCom Inc.

To see Embratel's latest financial statements:
http://bankrupt.com/misc/Embratel.txt

CONTACT:  EMBRATEL PARTICIPACOES S.A.
          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Email: Silvia.Pereira@embratel.com.br
                 invest@embratel.com.br
                  or
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010
          Email: hduncan@embratel.com.br
                 mpalm@embratel.com.br

          TELEFONICA SA
          Gran Via 28, Planta 3
          28013 Madrid,
          Spain
          Phone: +34 91 584 4713
          Fax: +34 91 531 934
          E-mail: investor.relations@telefonica.es
          Home Page: http://www.telefonica.es/
          Contact:
          Ezequiel Nieto, Investor Relations Manager

          TELECOMUNICA?OES DE SAO PAULO S.A. - TELESP
          Rua Martiniano de Carvalho, 851, 17th Fl.
          01321-001 Sao Paulo, Brazil
          Phone: +55-5511-3549-7200
          Fax: +55-5511-3549-7202
          Home Page: http://www.telefonica.net.br/sp
          Contact:
          Fernando Xavier Ferreira, Chairman and President
          Antonio Viana Baptista, Vice Chairman
          Manoel L. Ferrao de Amorim, Chief Operations Officer
          Leonardo de Piava Rocha, VP Finance, Administration,
                                   and Investor Relations


GRUPO SPLICE: Considers Options For Dealing With Maturing Debt
--------------------------------------------------------------
Brazilian telecommunications group Grupo Splice is reviewing
various options on how to tackle debt, which now amounts to
BRL850 million (US$297 million), 80% of which matures within a
year.

In a Bloomberg report, Grupo Splice Finance Director Ricardo
Adenes disclosed the options under consideration include
rescheduling of bond payments or selling assets in order to raise
revenue.

The group recently sold BRL500 million of securities to refinance
one-year bonds due last week and is in talks with an investment
bank to help restructure its debt, Adenes said.

"There are a number of options available and the bank's role will
be to advise on what they are and which is the right one for us,"
Adenes said.

Tele Centro Oeste Celular Participacoes SA, Splice's mobile phone
unit, agreed to buy BRL470 million of the Company's new bonds.

Other Splice assets include a 6% stake in BCP Telecomunicacoes, a
cellular phone company serving Brazil's capital, Sao Paulo.

CONTACT:  GRUPO SPLICE
          Home Page: http://www.splice.com.br/

          SPLICE do Brasil Telecomunicacoes e Eletronica S.A.
          Av. Juscelino K. de Oliveira, 154
          CEP: 18110-710 - Votorantim (SP)
          SAC: 0800 -111316
          Phone: (15) 3353-8300
          Fax: (15) 243-1016
          E-mail: splice@splice.com.br

          Osasco Branch Office
          Rua Presidente Castelo Branco, 27 - Jd. Agú
          CEP: 06016-020 - Osasco (SP)
          Phone/Fax: (11) 3688-1000

          Rio de Janeiro Branch Office
          Rua Sao Jose, 70 - 18ž andar
          CEP: 20010-020 - Rio de Janeiro (RJ)
          Phone: (21) 532-3131
          Fax: (21) 532-1260
          E-mail: splicerj@splice.com.br
          Brasília Branch Office
          SRTVS - Q701 - Edifício Embassy Tower - sala 226
          CEP: 71340-000 - Brasília (DF)
          Phone: (61) 224-1465
          Fax: (61) 225-3239

          Bahia Branch Office
          Av. Eduardo Froes da Mota, 20.030 - Bairro Senai
          CEP: 44026-370 - Feira de Santana (BA)
          Phone/Fax: (75) 225-5566
          E-mail: spliceba@splice.com.br
          TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
          SQS QD 02 BL C ED Telebrasilia Celular
          Asa Sul  70302-916 Brasilia - DF
          Brazil
          Phone:  +55 61 313 7750
          Home Page http://www.tco.net.br
          Contact:
          Arthur Fonseca, Head of Investor Relations
          Phone: +55 61 313-7765

          Flavia Menezes de Oliveira, Assistant of
                                      Investor Relations
          Phone: +55 61 313-7765
          E-mail: arthur.fonseca@tco.net.br


INEPAR: Resumes Debt Talks With BNDES After Prior Rejection
-----------------------------------------------------------
The controllers of Brazilian construction company Inepar
restarted negotiations with BNDES (Banco Nacional de
Desenvolvimento Economico e Social) months after the Brazilian
development bank rejected their restructuring proposal.

The proposal, which BNDES dismissed late last year, involved the
conversion of BRL45 million worth of debentures into shares and
the repurchase of Celpa, a power distribution company in Parana.

Among Inepar's creditors are HSBC to which it owes BRL60 million;
Barclays, BRL30 million; and Banco do Brasil, BRL20 million.
Inepar also holds a debt with Bradesco.

Last year, Inepar registered losses of BRL128 million (US$53
million), mainly owing to its failure to clean up its debt
situation.

CONTACT:  INEPAR S/A - INDUSTRIA E CONSTRUCOES
          Av. Juscelino K. de Oliveria, 11400
          81450-900 Curitiba Parana Brasil
          Phone: 55-41-341-1487
          Fax: 55-41-341-1271
          Home Page: www.inepar.com.br/
          Contact:
          Mauro Rezende Lopes (Operacoes em Telecom)
          Phone: +55 (41) 350-7564
          E-mail: maurotel@inepar.com.br

          BNDES
          Main Office
          Av. Republica do Chile,
          100 Rio de Janeiro - RJ
          Phone: (021) 2277-7447/6978
          Home Page: http://www.bndes.gov.br/english/welcome.htm

CREDITORS:  HSBC BANK BRASIL S.A. - BANCO MULTIPLO
            Head office
            Travessa Oliveira Belo, 11-B
            Centro, Curitiba
            State of Paran , Brazil
            Telephone: [55] (41) 321 6161
            Fax: [55] (41) 321 6075
            Home Page: www.hsbc.com.br

            HSBC INVESTMENT BANK (Brazil)
            Av. Faria Lima, 3.063 1st Floor-HSBC Tower
            Cep: 01451-000 Itaim Bibi
            Sao Paulo, SP
            Brazil
            Phone: [55] (11) 3847 5550
            Fax: [55] (11) 3847 5299

            BARCLAYS CAPITAL
            Ave. Paulista #1842,
            15th Floor
            Conjuxto 155, Torre Norte
            Sao Paolo
            Brazil CEP 01310-200
            Phone: +5511 284 3564
            Fax: +5511 287 3109
            Home Page: http://www.barclays.com

            BANCO DO BRASIL
            SBS Edificio Sede III, 24th Fl.
            70089-900 Brasília, D.F., Brazil
            Phone: +55-61-310-3406
            Fax: +55-61-310-2563
            Home Page: http://www.bb.com.br
            Contact: Marco Geovanne Tobias da Silva, IR Manager
            Phone: 61-310-5920

            BANCO BRADESCO
            Prédio Novo - 4ž ANDAR
            Cidade de Deus, S/N, Osasco,
            CEP.: 06029-900 Sao Paulo, Brasil
            Phone: (55-11) 3684-9229 / 9302 / 2086
            Fax: (55-11) 3684-9775
            Home Page:
            http://www.bradesco.com.br/html/banco_bradesco/
            Contact:
            Investor Relations
            E-mail: 4260.jean@bradesco.com.br
                    4260.bernardo@bradesco.com.br
                    4260.luciano@bradesco.com.br
                    4260.andressa@bradesco.com.br



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

TELEFONICA CTC: Shares Down As Unions Enter Week Two Of Strike
--------------------------------------------------------------
Shares of Telefonica CTC Chile fell another 1.75% to CLP1,965 in
Santiago, its lowest level in eight months. The dismal spiral
comes as unions enter their second week of strike, reports
Bloomberg. The Company's New York traded shares also fell 21
cents to US$11.12, also reflecting an eight-month low.

Unions began striking early last week to oppose plans to reduce
wages at the country's biggest telephone company. Telefonica CTC
said it would freeze some salaries and make adjustments to others
to bolster earnings. Furthermore, the Company said it would
reduce severance pay for a fired worker to 30 days per year
worked, from 40 days, and eliminate the severance pay for workers
who leave the Company.

However, workers are demanding a 3% hike on their salaries on top
of inflation and said they also want to maintain termination
bonuses and receive stronger job stability guarantees from the
Company.

The strike hampers the Company's efforts to boost profit that
dropped after the government reduced its calling fees in 1999.
Telefonica CTC, which is 43.6% controlled by Spain's Telefonica,
posted net income of CLP4.1 billion ($6.5 million) last year,
compared with CLP130.1 billion in 1998, prior to the rate
reductions.

CONTACT:  Telefonica CTC (Corporacion Telefonica Chilena S.A.)
          V. Providencia 111
          Providencia - Santiago
          (56)-Chile
          Phone: (2) 2320511
                 (2) 6912020
          Home Page: http://www.telefonicadechile.cl/
          Contacts:
          Mr. Bruno Philippi, President
          Mr. Jacinto Daz, Vice President
          Gisela Escobar,  Head of Investor Relations


TELEFONICA CTC: Expects 2Q02 Loss From Terra Lycos Charge
---------------------------------------------------------
Compania de Telecomunicaciones de Chile SA expects to post a loss
in the second quarter as a result of a US$5.6-million charge that
it will take on its investment in Terra Lycos, Dow Jones
Newswires reports, citing a company press release.

CTC reportedly holds nearly 3 million Terra Lycos shares, which
traded at EUR5.75 a share at the end of the second quarter,
compared with EUR9 a share at the end of the first quarter.

Under Chilean accounting principles, the value of CTC's
investment must be recorded at the lower amount between the book
value and the market value of the investment.

In the second quarter ended June 30, 2001, CTC reported a loss of
CLP9.83 billion, or US$0.07 a share, on sales of CLP222.23
billion.



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

AVANTEL: Clarifies Independence From WorldCom
---------------------------------------------
The accounting woes of WorldCom Inc. will not affect the
services, operations and investments of its unit in Mexico.
Avantel, which is 45%-owned by WorldCom, insists it operates
independently from the embattled U.S. company, saying it is a
Mexico-based corporation with autonomous administrative,
financial and accounting structures.

"The operative relationship between Avantel and WorldCom is based
on commercial agreements for international long distance traffic
that allows Avantel to offer data transmission and Internet
services to multinational companies," said the Company in an
official statement.

The Company also reported that "the investments carried out
during 2002 will allow us to extend the offer in local telephony
to 20 more cities in the country."

Avantel said its financial reports complied with U.S. and Mexican
generally accepted accounting standards and had been audited by
PriceWaterhouseCoopers.

Avantel is currently under pressure by Mexico's Transport and
Communications Secretariat (SCT) to resolve its financial
situation, particularly with regards to its equity structure. The
Company generates an estimated US$65 million in earnings before
interest, taxes, depreciation and amortization (EBITDA), but has
debt estimated at US$600 million.

CONTACT:  AVANTEL
          Carretera Libre Mexico-Toluca 5714
          Col. Lomas de Memetla
          Cuajimalpa, M,xico, D.F.  05330
          Phone: 1-866-591-4076
          E-mail: webmaster@avantel.com.mx
          Home Page: http://www.avantel.com.mx/

          PRICEWATERHOUSECOOPERS LLP
          1301 Avenue of the Americas
          New York, NY 10019
          Phone: 646-471-4000
          Fax: 646-394-1301
          Home Page: http://www.pwcglobal.com


GRUPO BITAL: Director Wants Spanish Bank Out
--------------------------------------------
Eduardo Berrondo Avalos, director general of Bital, expects a
decision within a fortnight from Banco Santander Central Hispano
SA (SCH) regarding its stake in the Mexican bank.  In an
interview with Mexico City daily el Economista, Berrondo urged
the Spanish bank to leave Bital and put an end to the open
conflict of interests provoked by SCH's owning Bital's
competitors Serfin and Santander Mexicano.

The director challenged Santander to either sell its stake if it
thinks that Bital is not worth the investment or make an offer to
Bital shareholders if it thinks otherwise, "but they do not want
to sell to you, and you cannot keep things as they are," declared
Berrondo.

Regarding a much-delayed US$200-million equity injection into
Bital by ING Group NV, Berrondo said that the operation would be
completed this month. He added that Bital is profitable every
month, which would enable it to comply with new rules on
capitalization within six months, without the help of foreign
investors.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax:57.21.26.26
          E-mail: ricaggs@bital.com.mx

          SANTANDER CENTRAL HISPANO S.A. (BSCH)
          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Email: investor@grupo.bsch.es
          Home Page: http://www.bsch.es
          Contacts:
          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 DINA: Informs Bourse of Plan To Buy Back Suspended Shares
---------------------------------------------------------------
Cash-strapped Mexican truck and bus maker Consorcio G Grupo Dina
offered to buy back its stock in a step toward de-listing the
shares, which were suspended last year following a default on
debt, reports Bloomberg.

In a statement to the Mexican stock exchange, Dina stated that
the offer of 21 centavos (2 U.S. cents) a share will stand for 10
working days and represents 45% of the stock. According to
Bloomberg data, the truck maker had 208.3 million shares
outstanding at the end of 2001.

Meanwhile, Dina ruled out plans to buy back its American
depositary receipts and has hired JP Morgan & Co. to help foreign
shareholders to exchange them for Mexican shares.

Dina's Mexico-traded shares were worth as much as MXN13.5 in
October 1997, when the Company was still one of the leading truck
makers in Mexico and was owner of Phoenix, Arizona-based bus
producer Motor Coach Industries International.

The Company plans to use its 23% stake in Motor Coach to pay
holders of US$160 million in bonds maturing that Dina defaulted
on last year. Dina sold control of Motor Coach in 1999 to pay
down debt.

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


XEROX MEXICANA: Unaffected By Parent's Accounting Irregularities
----------------------------------------------------------------
A top executive of Xerox Mexicana said that the unit will not be
affected by the "creative accounting" used by its U.S.-based
parent company, reports Cronica. According to Pedro F brega,
president of Xerox Mexicana, the unit is a solid company that
expects double-digit growth by the close of the year.

"Obviously, a company's responsibility is to maximize, but a
company that looks out for itself must do so based on its
consultants. The work of auditors is fundamental for a company,
but there are rules that are open to interpretation and that
leads to problems like those we [Xerox] have faced," F brega
said, differentiating between the Xerox case and those of
WorldCom and Enron.

CONTACT:  XEROX MEXICANA
          Bosque de Duraznos 61
          Bosque de las Lomas
          Mexico D.F.
          C.P. 11700
          Phone: (52) 5326-3000 ext. 1235
          Fax: (52) 5326-3071
               (52) 5326-3034
          Home Page: www.xerox.com.mx
          Contact:
          Pedro Fabrega, President




               ***********


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.


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