TCRLA_Public/020722.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

           Monday, July 22, 2002, Vol. 3, Issue 143

                           Headlines



A R G E N T I N A

ARGENTINE BANKS: Government Extends $9.35B Bond Bailout Plan
CAMUZZI ARGENTINA: Fitch Argentina Assigns CCC Rating To Bonds
PEREZ COMPANC: Extends Exchange Offer to July 31
REPSOL YPF: Argentine Government Cuts Export Tax On LPG


B E R M U D A

APW: Court Sets Disclosure Statement & Plan Hearings on July 23
MUTUAL RISK: Bernstein Liebhard & Lifshitz Files Class Action


B R A Z I L

CAIUA: Moody's Revises Rating Outlook to Negative
CEMIG: Preferred Depositary Receipts Now Trading on LATIBEX
EMBRATEL: Shares Losing Ground On Parent Company's Woes


C H I L E

TELEFONICA CTC: Wins 20 Cellular Licenses


C O L O M B I A

SEVEN SEAS: Replacing Arthur Andersen with Deloitte & Touche


M E X I C O

GRUPO BITAL: SCH Leaves HSBC To Make A Bid For Controlling Stake
GRUPO RADIO: Posts Big Losses in 2Q, 1H Results for 2002
GUILFORD MILLS: Files Reorganization Plan With SEC


P E R U

BACKUS: Conasev Analyzes Next Move Regarding Polar's Complaint
MERCANTILE INTERNATIONAL: Restructures US$40M in Debentures


     - - - - - - - - - -

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

ARGENTINE BANKS: Government Extends $9.35B Bond Bailout Plan
------------------------------------------------------------
Major Argentine banks that are struggling under huge losses after
dollar-denominated savings and loans were converted into pesos at
mismatched rates are going to receive funds from the government,
reports Reuters.

Economy Minister Roberto Lavagna announced Thursday that the
government would issue US$9.35 billion in bonds by July 29 to
compensate these banks.

The solvency of the entire Argentine financial system is at risk
since the government switched banks' dollar loans into pesos at
parity but changed dollar deposits to pesos at a rate of 1.4 to
the dollar earlier this year, after devaluation.

The government has been promising the banks compensation after
they incurred billions of dollars in charges because of the
mismatch. However, the exact dollar value of the package was not
officially known until Thursday's announcement.

Still undetermined are details such as when the bonds will mature
and the specific terms of the instruments to be issued.


CAMUZZI ARGENTINA: Fitch Argentina Assigns CCC Rating To Bonds
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. has assigned a "CCC"
rating to Camuzzi Argentina S.A.'s simple corporate bonds. The
bonds, which will expire February 1, 2004, are worth
US$152,462,498.

Camuzzi Argentina S.A. is a holding company devoted to public
services, with investments in 7 operating companies, which are
focused on natural gas distribution, electric power
transportation and distribution, and supply of drinking water and
sewage services.

Camuzzi Argentina S.A. is the parent company of Camuzzi Gas
Pampeana S.A. and Camuzzi Gas del Sur S.A., both devoted to
natural gas distribution.

CONTACT:  CAMUZZI ARGENTINA S.A.
          Av. Alicia Moreau de Justo 270 Piso 4°
          (C1107AAF) Buenos Aires - Argentina
          Phone: (54-11) 4891-2270
          Mobile: (54-11) 15-5329-4876
          Fax: (54-11) 4891-2237
          E-Mail: hugo.krajnc@camuzzi.com.ar
          Home Page: http://www.camuzzi.com.ar/
          Contact:
          Hugo Krajnc, Institutional Relations Director
          Fabrizio Garilli, Chairman:
          Martín Juan Blaquier, Vice-Chairman & C.E.O.

PEREZ COMPANC: Extends Exchange Offer to July 31
------------------------------------------------
An official Perez Companc company press release disclosed that
Pecom Energia S.A.'s Expiration Date in respect of its offer to
exchange its 77/8% Notes due 2005, 9% Notes due 2007, 9% Notes
due 2009 and 81/8% Notes due 2010 (together, the "New Notes") for
any and all outstanding 77/8% Notes due 2002, 9% Notes due 2004,
9% Notes due 2006 and 81/8% Notes due 2007 (together, the
"Existing Notes") had been extended to 12:00 p.m., New York City
time, on Wednesday, July 31, 2002.

In addition, the Company announced that it had waived the
following exchange offer conditions:

(1) the minimum tender requirements with respect to each series
of Existing Notes and

(2) the general condition to the exchange offer requiring the
Company to have successfully refinanced its indebtedness owed to
financial institutions relating primarily to working capital
loans, debt issuances, trade financings and letter of credit
facilities.

The Company also announced that it is offering to pay US$150 in
cash and US$850 principal amount of 2005 New Notes for each
US$1,000 principal amount of 2002 Existing Notes that are
tendered prior to the Expiration Date and accepted for exchange.
In addition, the Company has changed the cross-default provision
of the New Notes so that it will not be in default under the
terms of the New Notes if it does not pay at maturity principal
or interest in respect of the 2002 Existing Notes that have not
been tendered for exchange.

As of 12:00 p.m., New York City time, on July 17, 2002, the
Company had received tenders of Existing Notes from noteholders
equal to approximately 91.5% of the total aggregate principal
amount of the Existing Notes outstanding. In particular, the
Company had received the following tenders of Existing Notes:

- US$76,619,000 aggregate principal amount of the 2002 Existing
Notes;
- US$275,377,000 aggregate principal amount of the 2004 Existing
Notes;
- US$194,360,000 aggregate principal amount of the 2006 Existing
Notes; and
- US$365,921,000 aggregate principal amount of the 2007 Existing
Notes.

Finally, the Company also announced that the proposed
modifications to the 2004, 2006 and 2007 Existing Notes were
approved by noteholders at the 2004, 2006 and 2007 Noteholders'
Meetings. Such modifications include, among other things, the
deletion of substantially all of the restrictive covenants and
related events of default. Upon the Company's acceptance of the
2004, 2006 and 2007 Existing Notes in the exchange offer, such
modifications will become effective.

The Company is making the exchange offer, and will issue New
Notes, in the United States only to "qualified institutional
buyers," as that term is defined in Rule 144A under the U.S.
Securities Act of 1933 (the "Securities Act"), and outside of the
United States in offshore transactions in reliance on Regulation
S under the Securities Act. The New Notes will not, upon
issuance, be registered under the Securities Act and may not be
offered or sold in the United States absent registration or an
exemption from registration.

Pecom Energia S.A., controlled by Perez Companc S.A., is the
largest independently owned energy company in the Latin American
region. Its business activities include oil and gas production
and transportation, refining and petrochemicals, power
generation, transmission and distribution as well as forestry
activities. Headquartered in Buenos Aires, the Company has
operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru
and Ecuador.

To see financial statements:
http://bankrupt.com/misc/Perez_Companc.pdf

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar


REPSOL YPF: Argentine Government Cuts Export Tax On LPG
-------------------------------------------------------
The Argentine government passed a resolution Thursday cutting
retentions on liquefied petroleum gas (LPG) exports from the
current 20% to 5%.

This measure forms part of a general agreement signed last June
between government and oil companies, directly affecting Repsol
YPF operations in Argentina, from which over 40% of the Company's
total LPG production (almost 270,000 tons) is exported.

Repsol YPF is the second largest exporter of LPG in Argentina,
with 18% of the country's overall production, which totals 1.5
million tons per year.

In June, the Argentine government and the oil companies agreed on
a stable framework for oil industry operations. Their agreement
has already succeeded in maintaining free foreign currency
circulation and a resolution passed on 4 July to lift export tax
on gasoline.  The main points addressed are as follows:

- The free circulation of 70% of foreign currency from exports
  and the current regulatory framework for oil product prices
  will be maintained.

- The limitation of crude oil exports to 36% of production will
  be four-monthly instead of monthly, and restrictions will be
  altogether lifted as soon as short-supply problems have been
  resolved.  This measure has been in force since 21 June last.

- The withdrawal of export tax on gasoline, which was brought
  into effect on 4 July last.

- With reference to LPG, price rises already applied are
  validated, and export tax reduced to 5%, with effect as of 1
  June 2002.

- In gas, well-head price increases already in force are
  validated, prices to the industrial and commercial sectors will
  be allowed to grow freely, and there will be a limit on prices
  of natural gas for residential consumption up to September
  2002.

- Retentions on gas-oil will be reduced to 5%.  Prices will be
  free on the domestic market, with the commitment not to raise
  retail prices for this product above Mercosur levels and to
  guarantee supply, with a price differential for passenger
  transport.

The Argentine government is shortly expected to adopt the further
measures necessary to bring the remaining agreements into force.

To see latest financial statements:
http://www.bankrupt.com/misc/Repsol.pdf

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



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

APW: Court Sets Disclosure Statement & Plan Hearings on July 23
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
scheduled a hearing to consider the adequacy of APW Ltd. and Vero
Electronics Inc.'s Disclosure Statement. The Hearing is set to
happen on July 23, 2002 at 9:30 a.m. before the Honorable
Prudence Carter Beatty. The hearing to confirm the Amended
Reorganization Plan will commence after the Disclosure Statement
Hearing.

APW, a publicly-held Bermuda company, operates as a holding
company whose principal assets are the shares of stock of its
worldwide operating subsidiaries. APW's operations consist solely
of providing financial, accounting and legal services to its
foreign and domestic direct and indirect subsidiaries. The
Company filed for chapter 11 protection on May 16, 2002 in the
U.S. Bankruptcy Court for the Southern District of New York.
Richard P. Krasnow, Esq. at Weil, Gotshal & Manges represents the
Debtors in their restructuring efforts. When the Company fled for
protection from its creditors, it listed $797,104,000 in total
assets and $899,751,000 in total debts.

To see latest financial statements:
http://bankrupt.com/misc/APW.pdf

CONTACT:  APW LTD.
          Mike Gasick, Treasurer
          262-523-7631
          Email: mike.gasick@apw.com
          URL: www.apw.com


MUTUAL RISK: Bernstein Liebhard & Lifshitz Files Class Action
-------------------------------------------------------------
A securities class action lawsuit was commenced on behalf of all
persons who purchased or acquired Mutual Risk Management Ltd.
("Mutual Risk" or the "Company") securities between February 16,
2000 and April 2, 2002 (the "Class Period").

The case is pending in the United States District Court for the
Southern District of California. The complaint charges Mutual
Risk and certain of its officers and directors with violations of
the Securities Exchange Act of 1934. The complaint alleges that
during the Class Period, Mutual Risk and its most senior officers
and directors disseminated materially false financial statements
for each of Mutual Risk's interim quarters during that period and
for the years ended December 31, 2000 and 2001, which materially
overstated the Company's cumulative revenues and its net income.
Defendants also made a series of other materially false and
misleading statements about Mutual Risk and its financial
condition and performance. As a result of the materially false
and misleading statements and omissions described herein, Mutual
Risk stock was inflated to an all-time high of $23.75 per share.

Mutual Risk also represented in each of its quarterly and annual
filings with the SEC that the financial statements included
therein had "been prepared in conformity with generally accepted
accounting principles" and "reflected all adjustments necessary
for a fair presentation of results for such periods." In reality,
each of Mutual Risk's financial statements violated the general
accepted accounting practices ("GAAP") by understating reserves
for potential claims. The financial results included in Mutual
Risk's SEC filings during the Class Period were thereby rendered
materially false and misleading.

Then, on April 2, 2002, the Company admitted that even its
disastrous Q4 2001 results (announced February 19, 2002) were not
accurate, putting the Company's shares into another "free fall,"
trading at just pennies per share following the April 2, 2002
admission.

Plaintiff seeks to recover damages on behalf of all those who
purchased or otherwise acquired Mutual Risk securities during the
Class Period. Anyone who purchased or otherwise acquired Mutual
Risk securities during the Class Period, and either lost money on
the transaction or still holds the securities, may wish to join
in the action to serve as lead plaintiff. In order to do so, one
must meet certain requirements set forth in the applicable law
and file appropriate papers no later than August 6, 2002.

Bernstein Liebhard & Lifshitz, LLP has been retained as one of
the law firms to represent the Class.

CONTACT:  Ms. Linda Flood, Director of Shareholder Relations
          BERNSTEIN LIEBHARD & LIFSHITZ, LLP
          10 East 40th Street
          New York, New York 10016
          Tel. 800-217-1522/212-779-1414
          Email: MLRMF@bernlieb.com



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

CAIUA: Moody's Revises Rating Outlook to Negative
-------------------------------------------------
Brazilian electricity distributor Caiua Servicos De Eletricidade
S.A. (CAIUA) had the rating outlook for its B1 Euro medium term
notes changed to negative by Moody's Investors Service. The
change in the rating outlook follows the revision to negative for
the outlook for Brazil's B1 foreign-currency rating for bonds and
notes.

CAIUA is a small electric distribution company located in the Sao
Paulo State. The Company owns controlling interests in six other
Brazilian electric distribution companies, most significantly
CEMAT, CELPA and CELTINS. Collectively, the group -- called Grupo
Rede -- distributes electricity to over two million customers in
states covering 30% of Brazil. Although the various companies
primarily purchase the electricity they distribute, they also own
and continue to develop several of their own hydroelectric
facilities.


CEMIG: Preferred Depositary Receipts Now Trading on LATIBEX
-----------------------------------------------------------
Companhia Energetica de Minas Gerais - CEMIG (NYSE: CIG; BOV:
CMIG4; LATIBEX: XCMIG), announced Thursday that its depositary
receipts, each representing one thousand of CEMIG's nominative
preferred shares, began trading on July 12, 2002 on LATIBEX, a
segment of the Madrid Stock Exchange dedicated to trading
securities of Latin American companies in Euros. The Latin
American market specialist for CEMIG's depositary receipts at
LATIBEX is Espirito Santo B&M.

CONTACT:  Luiz Fernando Rolla, Investors Relations, CEMIG,
          Phone: +55-31-3299-3930
          Fax: +55-31-3299-3933
          E-mail: lrolla@cemig.com.br
          or
          Vicky Osorio of The Anne McBride Company
          Phone: +1-212-983-1702
          Fax: +1-212-983-1736
          E-mail: vicky@annemcbride.com


EMBRATEL: Shares Losing Ground On Parent Company's Woes
-------------------------------------------------------
Shares of WorldCom Inc.'s Brazilian unit Embratel ended BRL1.54
Thursday, reversing early losses on unconfirmed speculation
Italian telecom giant Telecom Italia Mobile could be in studying
Embratel for a purchase. The stock has been losing ground in the
past few sessions on concerns about a potential bankruptcy at its
parent company.

WorldCom is currently mired in an accounting scandal stemming
from a $3.8-billion earnings restatement. The company is working
frantically to raise up to US$1 billion by selling its assets
world-wide that could include its stake in Embratel.

WorldCom took control of Embratel in July 1998, paying US$2.27
billion for its 19% stake when Brazil broke up Telecomunicacoes
Brasileiras SA, the state telephone monopoly. The company's
market capitalization now is about BRL770 million (US$271
million).

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



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

TELEFONICA CTC: Wins 20 Cellular Licenses
-----------------------------------------
Chilean telecommunications company Compania de Telecomunicaciones
de Chile SA (CTC) won 20 cellular telephone licenses in the 30
Megahertz of bandwidth of the 1900 MHz spectrum, Dow Jones
Newswires reports, citing a spokesman for telephone regulator
Subtel. CTC paid a total of CLP8.90 billion for the licenses.

The company's U.S. rival BellSouth (BLS) also won 10 licenses and
paid a total of CLP4.20 billion for them, the Subtel regulator
added. CTC and BellSouth were the only bidders.

CTC is currently dealing with a strike by some 3,000 of its
workers, who are associated with the United Front of Telephone
Workers (FUT). The union has been on strike for more than two
weeks now to pressure the Company to scrap a plan, which would
see a reduction in their wages and benefits.

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



===============
C O L O M B I A
===============

SEVEN SEAS: Replacing Arthur Andersen with Deloitte & Touche
------------------------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced today that
Deloitte and Touche, LLP will replace Arthur Andersen, LLP as its
independent public accountants. The appointment, effective
immediately, was made on the recommendation of the Company's
Audit Committee and unanimously approved by the Board of
Directors.

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America. The Company's primary emphasis is on the development and
production of the Guaduas Oil Field and exploration of the
Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.

CONTACT:  SEVEN SEAS PETROLEUM INC.
          Daniel Drum, Investor Relations
          Tel. +1-713-622-8218




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

GRUPO BITAL: SCH Leaves HSBC To Make A Bid For Controlling Stake
----------------------------------------------------------------
Santander Central Hispano (SCH) balked at a plan to launch a bid
to raise its stake in Grupo Financiero Bital SA, saying that
"price expectations" of the Mexican bank's controlling
shareholders were too high, reports Bloomberg.

The Spanish bank's move came after HSBC Holdings PLC, Europe's
biggest bank by market value (about US$109 billion), announced
its intentions to buy a controlling stake in Bital within days.

Investors believe that SCH, whose market value is about a third
of HSBC's, stood little chance against the European bank in a
bidding war.

"The deepest pockets always win," said Alfredo Rotemberg, who
owns HSBC shares as part of the US$500 million he manages for
Armada Funds in Cleveland. "Santander could not fight HSBC, no
way. It would be like me fighting Mike Tyson."

Bital, which has a market value of MXN6.7 billion (US$690
million), is one of two remaining Mexican banks not controlled by
international owners.

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

          HSBC HOLDINGS PLC
          10 Lower Thames St.
          London EC3R 6AE, United Kingdom
          Phone: +44-020-7260-0500
          Fax: +44-020-7260-0501
          Home Page: http://www.hsbc.com
          Contacts:
          Sir John R. H. Bond, Group Chairman/Executive Director
          Sir Brian Moffat, Deputy Chairman/Senior Non-Executive
                                            Director
          Keith R. Whitson, Group Chief Executive


GRUPO RADIO: Posts Big Losses in 2Q, 1H Results for 2002
--------------------------------------------------------
Grupo Radio Centro, S.A. de C.V. (the "Company"), one of Mexico's
leading radio broadcasting companies, announced Thursday its
results of operations for the second quarter and first half ended
June 30, 2002. All figures were prepared in accordance with
generally accepted accounting principles in Mexico and have been
restated in constant pesos as of June 30, 2002.

- Second Quarter Results

For the three months ended June 30, 2002, broadcasting revenue
was Ps. 176,240,000, a 1.5% increase as compared to Ps.
173,621,000 reported during the same period of 2001. This
increase in broadcasting revenue was mainly due to revenue from
radio station XEN-AM during the second quarter of 2002 compared
with the same period of 2001. The XEN-AM effectively began
operations in August, 2001.

The Company's broadcasting expenses (excluding depreciation,
amortization and corporate, general and administrative expenses)
for the three months ended June 30, 2002 were Ps. 127,344,000, an
increase of 13.5% as compared to Ps. 112,212,000 reported for the
same period of 2001. This increase is primarily attributable to
an increase in expenses related to the operation of XEN-AM.

Broadcasting income (i.e., broadcasting revenue minus
broadcasting expenses, excluding depreciation, amortization and
corporate, general and administrative expenses) for the three
months ended June 30, 2002 was Ps. 48,896,000, a decrease of
20.4% as compared to Ps. 61,410,000 reported for the same period
of 2001, mainly as a result of the increase in broadcasting
expenses.

Depreciation and amortization for the second quarter of 2002
amounted to Ps. 23,480,000, as compared to Ps. 24,002,000
reported for the same period of 2001.

The Company's corporate, general and administrative expenses for
the three months ended June 30, 2002 were Ps. 11,688,000,
compared to Ps. 11,126,000 reported for the same period of 2001.

The Company's operating income for the second quarter of 2002 was
Ps. 13,728,000, a decrease of 47.8% as compared to Ps. 26,282,000
reported for the same period of 2001. This decrease resulted from
the decrease in broadcasting income.

For the second quarter of 2002, the Company reported EBITDA
(operating income before deducting depreciation and amortization)
of Ps. 37,208,000, representing a decrease of 26.0% as compared
with EBITDA of Ps. 50,283,000 reported for the same period of
2001. This decrease in EBITDA is attributable to the decrease in
operating income during the second quarter of 2002 as compared to
the second quarter of 2001.

The Company's comprehensive financing cost for the second quarter
of 2002 was Ps. 39,367,000, compared to comprehensive financing
income of Ps. 12,901,000 reported for the same period in 2001.
This increase is primarily attributable to a foreign exchange
loss, net, of Ps. 36,023,000 during the second quarter of 2002,
compared to a foreign exchange gain, net, of Ps. 20,201,000 in
the second quarter of 2001. Such variation resulted from the
effect on the Company's net U.S. dollar-denominated liabilities
of the weakening of the Mexican peso against the U.S. dollar in
the second quarter of 2002. This unfavorable variation was
partially offset by a reduction in interest expense incurred by
the Company under its U.S. dollar-denominated bank loans as a
result of a reduction in the principal amounts outstanding and a
decrease in interest rates applicable to such loans in the second
quarter of 2002 as compared with the same period of 2001.

Other expenses, net, for the three months ended June 30, 2002
were Ps. 14,652,000, as compared to Ps. 16,082,000 reported for
the same period of 2001. This 8.9% decrease is primarily
attributable to lower expenses of the Company's Internet-related
subsidiary, To2.

For the second quarter of 2002, the Company's loss before
provisions for income tax and employees' profit sharing was Ps.
40,291,000, as compared to income of Ps. 23,100,000 reported for
the same period in 2001. As a result of the loss recorded for the
second quarter of 2002, the Company made no provision for income
tax and employees' profit sharing as compared to the Ps.
2,024,000 provision for the same period of 2001.

As a result of the foregoing, the Company reported a net loss for
the second quarter of 2002 of Ps. 40,291,000, compared to net
income of Ps. 21,076,000 reported for the same period of 2001.

First Half Results

For the six months ended June 30, 2002, broadcasting revenue was
Ps. 293,879,000, a 9.1% decrease as compared to Ps. 323,164,000
reported for the same period of 2001. This decrease is mainly
attributable to lower advertising expenditures by Mexican radio
advertisers during the first half of 2002 compared with the same
period of 2001.

The Company's broadcasting expenses (excluding depreciation,
amortization and corporate, general and administrative expenses)
for the first half of 2002 were Ps. 245,619,000, a 10.9% increase
compared to Ps. 221,426,000 reported for the same period of 2001.
This increase is attributable to factors mentioned above in
connection with second quarter results.

Broadcasting income (i.e., broadcasting revenue minus
broadcasting expenses, excluding depreciation, amortization and
corporate, general and administrative expenses) for the first
half of 2002 was Ps. 48,260,000, a decrease of 52.6% compared to
Ps. 101,738,000 reported for the same period of 2001, resulting
from both the decrease in broadcasting revenue and the increase
in broadcasting expenses.

Depreciation and amortization for the first half of 2002 was Ps.
46,477,000, a slight decrease as compared to Ps. 47,102,000
reported for the same period of 2001.

The Company's corporate, general and administrative expenses for
the first half of 2002 were Ps. 22,228,000, an increase of 0.5%
as compared to Ps. 22,126,000 reported for the same period of
2001.

Primarily as a result of the decrease in broadcasting income, the
Company reported an operating loss of Ps. 20,445,000 for the
first half of 2002, as compared to operating income of Ps.
32,510,000 reported for the same period of 2001.

The Company's EBITDA (operating income before deducting
depreciation and amortization) for the six months ended June 30,
2002 was Ps. 26,032,000, representing a decrease of 67.3% as
compared to EBITDA of Ps. 79,613,000 reported for the same period
of 2001. This decrease reflects the decrease in operating income
during 2002 as compared to 2001.

The Company had comprehensive financing cost of Ps. 36,625,000
for the first half of 2002, as compared to comprehensive
financing income of Ps. 9,407,000 for the same period of 2001.
This increase is primarily attributable to a foreign exchange
loss, net, of Ps. 31,788,000 for the first half of 2002 as
compared to a foreign exchange gain, net, of Ps. 23,001,000 for
the same period of 2001, which was due to the factors mentioned
above with respect to the second quarter. This unfavorable
variation was partially offset by a decrease in interest expense
resulting from a reduction in the principal amount outstanding of
the Company's bank loans as well as from a reduction in interest
rates during 2002 compared with 2001.

Other expenses, net, for the first half of 2002 were Ps.
29,118,000, a 7.9% decrease as compared to Ps. 31,613,000
reported for the same period of 2001. This decrease is
attributable to factors mentioned above in connection with the
second quarter.

For the first half of 2002, the Company reported a loss before
provisions for income tax and employees' profit sharing of Ps.
86,188,000, as compared to income before provisions for income
tax and employees' profit sharing of Ps. 10,304,000 reported for
the same period in 2001. As a result of the loss recorded for the
first half of 2002, the Company made no provision for income tax
and employees' profit sharing as compared to the Ps. 2,024,000
provision for the same period of 2001.

The Company had a net loss of Ps. 86,188,000 for the first half
of 2002 as compared to net income of Ps. 8,280,000 for the first
half of 2001.

Company Description:

Grupo Radio Centro owns and/or operates 14 radio stations, 12 of
which are located in Mexico City. The Company's principal
activities are the production and broadcasting of musical and
entertainment programs, talk shows, news and special events
programs. Revenue is primarily derived from the sale of
commercial airtime. The Company also operates a radio network,
Organizacion Impulsora de Radio, which acts as the national sales
representative for, and provides programming to, Grupo Radio
Centro-affiliated radio stations.

To see financial statements:
http://bankrupt.com/misc/Grupo_Radio_Centro.txt

CONTACT:  GRUPO RADIO CENTRO (In Mexico)
          Pedro Beltran OR Alfredo Azpeitia
          Tel.: 011-5255-57-28-48-81
                011-5255-57-28-49-11

          I-ADVIZE CORPORATE COMMUNICATIONS, INC
          Maria Barona OR Blanca Hirani
          Tel.: +1-212-406-3690
          Email: grc@i-advize.com


GUILFORD MILLS: Files Reorganization Plan With SEC
--------------------------------------------------
Guilford Mills Inc., (GMI) and its subsidiaries has filed with
the Securities and Exchange Commission a reorganization plan
aimed at bailing the Company out of bankruptcy. Under the plan,
the Company intends to restructure its operations by focusing on
core automotive and specialty textile businesses.

The plan is yet to be approved after the Joint Disclosure
Statement, which is filed with the plan, is authorized by the
court to be sent to creditors and security holders for
consideration.

The Company and its subsidiaries, whose businesses were affected
in 1998 by the influx of low priced Asian products in the US,
filed voluntary petitions under Chapter 11 of the US Bankruptcy
Code in March.  The filing is in the United States Bankruptcy
Court for the Southern District of New York. The Company
presently continues to operate the business as debtors-in-
possession.

GMI, a publicly held company, is a leading worldwide producer and
seller of warp knit, circular knit, flat-woven and woven velour
fabric. Its non-debtor foreign subsidiaries own or lease
production and related facilities in Mexico, Brazil, the United
Kingdom, Portugal, Spain and Germany.

To see complete copy of Guilford Mills' Reorganization Plan:
http://bankrupt.com/misc/GuilfordMills_Inc.pdf

CONTACT:  GUILFORD MILLS, INC.
          4925 West Market Street, Greensboro, NC
          Phone: (336) 316-4000
          Home Page: http://www.guilfordmills.com
          Contact:
          David H. Taylor, Interim Chief Financial Officer



=======
P E R U
=======

BACKUS: Conasev Analyzes Next Move Regarding Polar's Complaint
--------------------------------------------------------------
Peruvian securities commission Conasev is still debating whether
to request that Colombian regulators question Bavaria SA about a
deal with shareholders to eventually take a controlling share in
Peruvian brewer Union de Cervecerias Peruanas Backus & Johnston
SAA (Backus), relates Dow Jones Newswires.

Conasev is currently investigating complaints by Venezuela's
privately-held brewer Empresas Polar SA about Colombian Bavaria's
purchase of a large stake in Backus.

Early last week, Bavaria paid about US$420 million for a 21.96%
voting stake in Backus. That works out to 18.23% of its corporate
capital and is enough to make it likely that Bavaria could take
at least three seats on Backus' board of directors.

However, Polar, which holds 22.1% of Backus' voting shares, has
complained that Bavaria's off-market transaction may have skirted
rules that say any buyer taking a 25% share in a listed company
has to do so via a public offer.

Conasev President Carlos Eyzaguirre said his regulatory agency is
yet to get in touch with Colombian regulators to ask them to
question Bavaria about the deal.

"The pertinent group is evaluating the papers sent by the Polar
Group, and in accord with those papers and the internal
information that Conasev has, and the information that we are
gathering, we will see whether it is convenient to ask for this
information," he said.

At the same time, Polar is also asking Conasev to block any more
transactions involving Peruvian brewer Backus.


MERCANTILE INTERNATIONAL: Restructures US$40M in Debentures
-----------------------------------------------------------
Mercantile International Petroleum Inc. ("MIP"), an oil and gas
exploration and production company, reported Thursday that the
restructuring of its outstanding U.S. $40,000,000 11.5% senior
unsecured debentures, due May 11, 2002, was completed.

The restructuring was done under a Plan of Arrangement under the
Companies Law of the Cayman Islands, which was implemented
effective as of June 28, 2002. Under the Plan, MIP's outstanding
common shares were consolidated on a 10 for 1 basis into
approximately 4,252,140 consolidated common shares; 33,631,000
consolidated common shares and 43,604,000 new B Warrants of MIP
are to be issued to the debentureholders in full satisfaction of
all principal and accrued interest owing on the debentures; MIP's
existing 12,000,000 warrants, expiring May 11, 2002, are to be
exchanged for 1,200,000 new A Warrants; 710,000 new A Warrants
are to be issued to the shareholders of MIP; and 773,000
consolidated common shares and 1,285,000 new B Warrants are to be
issued to its non-executive Chairman, Jeffrey Waterous, to settle
amounts owing to him for past services and to purchase his 4%
working interest in Block III Talara, Peru.

Letters of transmittal have been mailed to MIP's shareholders,
debentureholders and warrantholders. These letters of transmittal
must be signed by registered shareholders, debentureholders and
warrantholders, as applicable, and returned to CIBC Mellon Trust
Company in order to receive certificates for consolidated common
shares, A Warrants and B Warrants. All consolidated common shares
and A Warrants issued under the Plan will be held in escrow for
up to 24 months after listing of the consolidated common shares
on a recognized stock exchange (or such longer period, if any,
imposed by the applicable exchange). The A Warrants entitle
holders to purchase consolidated common shares at a price of
US$1.20 per share and the B Warrants entitle holders to purchase
consolidated common shares at a price of US$2.40 per share.
Complete details of the A Warrants and B Warrants are set out in
MIP's proxy materials which were mailed to shareholders,
debentureholders and warrantholders in connection with the
meetings held on June 3, 2002, at which the Plan of Arrangement
was approved.

About MIP - MIP is incorporated in the Cayman Islands and is
involved in oil and gas exploration, development and production.
Through its wholly-owned subsidiaries, MIP holds oil and gas
interests in Peru and Colombia.

CONTACT:  MIP
          Rudolph Berends, Chief Executive Officer
          Tel. 1-345-949-2141
          Or write to:
          MIP c/o Maricorp Services Ltd.
          4th Floor, West Wind Building
          70 Harbour Drive, George Town
          Grand Cayman



               ***********


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
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