TCRLA_Public/020726.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, July 26, 2002, Vol. 3, Issue 147



ARGENTINE BANKS: Duhalde Blocks Court-Ordered Bank Withdrawals
CTI HOLDINGS: S&P Assigns `CC' To $300M Of Corporate Bonds
TRANSENER: S&P Rates $450M Of Bonds `D' After Payment Suspension


TYCO INTERNATIONAL: Kaplan Fox Files Class Action Suit


BELL CANADA: Completes Sale Of Interest in Telecom Americas
CSN: To Remain Under Brazilian Control After Merger With Corus
ELETROPAULO METROPOLITANA: Analysts Expect Refinancing; Stock Up
EMBRATEL: Shares Up On Release of 2Q02 Results
ENERGIA PAULISTA: Renegotiating $18.8M In Bonds Expiring August

HOTEL NACIONAL: Goes To Auction Block At A Base Price of BRL32M
NET SERVICOS: Increases Share Allotment for Upcoming Sale


AES GENER: Fitch Comments More Confidently on Liquidity
WACKENHUT CHILE: Sells Food Services Unit For CLP400M


SEVEN SEAS: Material Downward Revision of Guaduas Oil Field


AEROMEXICO: Union Pushes For Probe Into Multiple Mishaps
GRUPO IUSACELL: 2Q02 Revenues, EBITDA Lower Despite Cost Cutting
GRUPO TRIBASA: Ifecom Head Says Recovery Still Possible
SANLUIS CORPORACION: Postpones 2Q02 Earnings Amid Restructuring


AGRO GUAYABITA: Creditors Grant More Time To Restructure Debts


VANESSA VENTURES: Govt. Probes Big Losses At Las Cristinas Mines

     - - - - - - - - - -


ARGENTINE BANKS: Duhalde Blocks Court-Ordered Bank Withdrawals
In a move to rescue its banking system, Argentina has again drawn
up a scheme to prevent the drain of deposits from banks.
President Eduardo Duhalde signed a decree that will suspend until
January court orders allowing withdrawals beyond the ordered
limits. The decree bans banks from making the payments for 120
working days.

The court has so far ordered the release of US$876 million from

The ruling of the country's Supreme Court, which declared banking
restrictions unconstitutional had prompted lower court judges to
allow release of frozen deposits.

In earlier reports, the country is said to be anticipating some
US$4.7 billion bank withdrawals during the rest of the year,
including some US$1-1.6 billion released through lawsuits.

Although International Monetary Fund officials have suggested
scrapping its banking restrictions, the country's Economy
Minister holds that ending the restrictions would trigger

CTI HOLDINGS: S&P Assigns `CC' To $300M Of Corporate Bonds
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
has assigned a "CC" rating to US$300 million worth of simple
issue corporate bonds issued by CTI Holdings SA. The bond matures
April 1, 2008. The rating reflects the Company's position as of
March 31, 2002.

As of March 2002, CTI's consolidated debt was $1,058 million,
including US$262.848 million 11.63% senior deferred coupon notes
due in 2008. The notes are non-cash pay until October 2003 and,
therefore, remain current.

CTI's ownership structure changed in March 2002, after Verizon
International Holdings Ltd., a subsidiary of Verizon
Communications Inc., which previously held a 65.3% stake in the
company, transferred a 17.32% stake to a newly created trust for
CTI employees. As a result, CTI is no longer controlled by
Verizon nor is it consolidated into its financial statements.

Until late 2001, the ratings on CTI incorporated expectations of
financial support from its shareholder Verizon, which had been
significant in the past. However, the uncertainties in Argentina,
both economic and regulatory, and CTI's weakening financial
performance made shareholder support more unlikely.

CTI is an Argentine nationwide provider of mobile
telecommunication services. As of March 2002, the company had
about 1.1 million subscribers that represented about 17% of the
mobile customers in the country.

To see CTI Holdings' financial statements:

          Avda. Pte. Figueroa Alcorta 3259
          Ciudad de Buenos Aires
          Capital Federal
          Phone: 4809-8888
          Fax: 4809-8989
          E mail :

TRANSENER: S&P Rates $450M Of Bonds `D' After Payment Suspension
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
has assigned a "D" rating to US$450 million worth of program
corporate bond issued by Transener S.A.  The bonds mature March
1, 2003.  The rating reflects the company's financial position as
of March 31, 2002.

As of the end of March, the devaluation of the Argentine peso has
led Transener to post losses of up to ARS494 million. The impact
of the devaluation is mainly due to a dollar-denominated debt of
almost US$270 million, which relates to the 1,290km Cuarta Linea
(Fourth Line)transmission project linking the south with the
center of the country. Transener charges access rights for the
line in pesos.

Late in April, Transener, which is majority-owned by Britain's
National Grid Group PLC (NGG) and local energy giant Perez
Companc SA (PC), suspended all current and future loan payments,
pending the renegotiation of US$470 million in debts.

The Company has selected Morgan Stanley as financial advisor to
help in developing a restructuring plan for all its debts.

Carlos A. Gonzalez, Transener's finance and administration
manager, revealed that about US$250 million of Transener's debt
is corporate bonds. About US$100 million of the bonds mature in
2003 and US$150 million mature in 2008, Gonzalez said.

The Company has US$180 million in bank debt due this year and
US$40 million worth of bank debt due in 2003, Gonzalez added.

          TENSION (Transener S.A.)
          Av. Paseo Colon 728, 6"Piso - (1063)
          Buenos Aires, Argentina
          Tel. (5411) 4342-6925

          Business Development:
          Carlos A. Jeifetz (
          Gerardo Baseotto (
          Tel.: (54-11) 4334-0182 / 4342-6925
          Fax: (54-11) 4342-4861

          1585 Broadway
          New York, New York 10036
          United States
          Phone: +1 212 761-4000
          Home Page


TYCO INTERNATIONAL: Kaplan Fox Files Class Action Suit
Kaplan Fox filed a class action suit against Tyco International,
Ltd. ("Tyco" or the "Company") (NYSE: TYC) and certain of its
officers and directors, in the United States District Court for
the Southern District of Florida. The suit is brought on behalf
of all persons or entities who purchased or otherwise acquired
Tyco securities between May 1, 2002 and June 12, 2002, inclusive
(the "Class Period").

The complaint alleges that Tyco and certain of its officers and
directors violated the federal securities laws. Specifically, the
complaint alleges that during the Class Period defendants failed
to disclose Tyco's practice of engaging in related-party
transactions with Tyco's own officers and directors, including
(a) interest-free loans Tyco made to employees, including
Defendant Kozlowski, for personal use; (b) Tyco's purchase of a
Florida home from its director, Defendant Ashcroft; (c) Tyco's
retaining a law firm that employs its director, Defendant Berman,
while Berman's compensation at the law firm was based on the
amount of work the law firm did for Tyco; and (d) the Company's
use of funds to pay for executives' personal items, including a
home in Utah for Defendant Belnick. Additionally, during the
Class Period defendants failed to disclose the ongoing criminal
investigation of defendant Kozlowski.

As a result of Defendants' failure to disclose Tyco's related-
party transactions, Tyco's securities traded at artificially
inflated levels during the Class Period.

Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. The firm has offices
in New York, San Francisco, Chicago and New Jersey. More
information about Kaplan Fox & Kilsheimer LLP, is available at
their website:

Members of the Class may move the court no later than September
13, 2002 to serve as a lead plaintiff for the Class. Certain
legal requirements must be met in order to serve as a lead

CONTACT:  Frederic S. Fox, Esq.
          Joel B. Strauss, Esq.
          Shelley Thompson, Esq
          Kaplan Fox & Kilsheimer LLP
          805 Third Avenue, 22nd Floor
          New York, NY 10022
          Phone: (800) 290-1952

          Phone: (212) 687-1980
          Fax: (212) 687-7714

          Laurence D. King, Esq.
          Kaplan Fox & Kilsheimer LLP
          601 Montgomery Street
          San Francisco, CA 94111
          Phone: (415) 772-4700
          Fax: (415) 772-4707


BELL CANADA: Completes Sale Of Interest in Telecom Americas
Bell Canada International Inc. ("BCI") (NASDAQ:BCICD) (TSX:BI)
announced Wednesday the closing of the sale of its interest in
Telecom Americas Ltd. ("Telecom Americas") to America Movil S.A.
de C.V., of Mexico ("America Movil") for a total consideration of
approximately US$366 million. As part of the transaction BCI was
also released from approximately US$250M of guarantees relating
to Telecom Americas (i.e. ATL indemnity and Tess Notes).

On closing, BCI received cash of approximately US$146 million and
a US$220 million interest-free note from America Movil due on
March 1, 2003. From these proceeds, BCI fully repaid the $174
million owed under its senior secured credit facility that has
now been cancelled.

BCI is operating under a court supervised Plan of Arrangement to
dispose of its remaining assets, settle all claims against the
company and make a final distribution to its stakeholders. BCI is
a subsidiary of BCE Inc., Canada's largest communications

          Marie-Lise Gauthier, 514/392-2318
          Web site:

CSN: To Remain Under Brazilian Control After Merger With Corus
A planned merger announced last week between Rio de Janeiro-based
flat steel maker CSN and Anglo-Dutch group Corus has raised
apprehensions among market analysts.

According to a Business News Americas report, analysts are
concerned that CSN might not be able to retain its identity, much
less exert control of the new-look Corus after the completion of
the share swap. Observers believe that Corus, which is three
times the size of CSN, will swallow up the junior partner.

CSN chairman and CEO Benjamin Steinbruch tried to allay these
fears saying that, despite having only a minority stake of 37.6%
in the new company, which he called CSN Corus, Brazilian capital
would remain dominant.

"We will be the biggest individual shareholder in the company,
which currently has its capital distributed among nearly 160,000
shareholders. The second biggest is the Brandes Fund with 9% and
the third, Capital Fund, with 6%," he said.

The executive, who negotiated the merger, said that CSN Global,
the name of the new company that will hold the 37.6% of Corus,
will also be able to nominate four directors of the post-merger
group. Steinbruch himself will become chairman of the board when
the current chairman steps down.

Furthermore, Steinbruch also said that CSN's employees and
creditors, such as state-owned development bank BNDES and other
creditors to whom CSN owes over US$2 billion, would also gain,
because the guarantees offered by the new company will be worth
more after the merger.

"CSN Corus will have a combined market value of US$5 billion. And
we have 37.6% of that, which gives us some US$1.8 billion. Now if
CSN before the merger was worth US$1.2 billion and CSN Global, as
a shareholder in Corus, will be worth US$1.8 billion, that is a
50% gain for shareholders," Steinbruch said.

He also said that, under the deal, CSN will sell off its electric
power assets Ita and Igarapava valued at US$600 million. Proceeds
of the sale will be used entirely to pay off debts.

To see latest financial statements:

          Rua Lauro Muller 116-36 Andar, PO Box 2736
          Rio De Janeiro, Brazil, 22299-900
          Phone: +011-55-21-2586-1442
          Home Page:
          Antonio Mary Ulrich, Exec. Officer - Investor Relations

ELETROPAULO METROPOLITANA: Analysts Expect Refinancing; Stock Up
Shares of Eletropaulo Metropolitana SA, a unit of AES Corp., rose
3.2% to BRL35.90 on analyst's belief that the Company may be able
to refinance maturing debts.

"Eletropaulo shares have fallen in the past days and I didn't see
much reason for that," Motta said. "It's a good company. It does
have dollar-linked debt due in the short term but the Company is
likely to succeed in its attempts to roll over the debt. It's one
of the highest upside potential at the Bovespa right now."

At the end of the first quarter Eletropaulo had debt of BRL4.625
billion and 69% of that was dollar denominated, Motta said.

Moody's Investors Service, however, doesn't share the same
outlook with the analyst. Just recently, the ratings agency
downgraded Eletropaulo's local currency issuer rating to B1 from
Ba2 on concern that it may not be able to refinance US$740
million in debt. Moody's said it was keeping the utility under
review for a possible further downgrade on its local and foreign
currency ratings.

Moody's believes that may have trouble rolling over debt as
investors dump Brazilian securities on concern opposition
candidate Luiz Inacio Lula da Silva may win the country's October
presidential election.

The real has weakened 19% this year against the U.S. dollar and
the country's 8% benchmark bond maturing in 2014 has lost 24% of
its value in the past three months.

Eletropaulo is the largest electric distribution company in
Brazil serving 42% of the state of Sao Paulo, with the highest
GDP per capital, population density and electricity consumption
per customer of any South American distribution company.

          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 Gonzalves Jr., VP Finance/Investor Relations

EMBRATEL: Shares Up On Release of 2Q02 Results
The Brazilian shares of WorldCom Inc. unit Embratel Participacoes
SA were higher in the wake of the Company's announcement of
better-than-expected second-quarter results.

Embratel, the country's largest long-distance telephone company,
reported late Tuesday that its second-quarter net loss was
BRL152.2 million (US$51.8 million), or less than the BRL266.5
million forecast by UBS Warburg analyst Stephen Graham. The
shares rose 13.1% to BRL1.73 and have fallen 83% this year.

"The results were good and the shares are cheap," said Pedro
Thomazoni, equity director at Lloyds TSB Bank Plc's unit in Sao
Paulo. "All the problems the Company has are already in the
price. There's expectation the company will be sold."

Meanwhile, Communications Minister Juarez Quadros do Nascimento
said he does not rule out government intervention to maintain the
services provided by Embratel SA if WorldCom goes bankrupt or is
broken up.

However, he said in an interview with BBC Brasil that he does not
expect the situation to deteriorate to that extent.

"We are in weekly contact with the president of Embratel and he
has given us guarantees that the situation is under control,"
Nascimento told BBC.

WorldCom filed for Chapter 11 protection from creditors overnight
last Sunday.

          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010

          500 Clinton Center Drive
          Clinton, MS 39056
          Phone: (601) 460-5600
          Fax: (601) 460-8350
          John Sidgmore, President and CEO

ENERGIA PAULISTA: Renegotiating $18.8M In Bonds Expiring August
AES Corp.'s Brazilian unit Energia Paulista Participacoes is
working out a solution with creditors for US$18.8 million of
debt, Bloomberg reports. The Company, whose liquid assets amount
to about US$3.7 million, is in danger of suspending payments on
its one-year bonds coming due August 16.

According to Energia Paulista Chief Financial Officer, Paulo
Dutra, the Company acquired the debt as funds to tide over its
financing until its parent comes to the rescue.

However, its parent, Arlington, Virginia-based AES, the largest
U.S. power-plant developer, is also currently battling with
short- and long-term debts, which at the end of the first
quarter, totaled approximately US$25 billion. AES itself is
trying to renegotiate repayment of loans with creditors

The bonds coming due for Energia Paulista are calculated to be
subject to 20% interest as it fulfills a yearly 12% interest plus
a charge from Brazil's inflation rate. The Company is offering to
raise interest payments in exchange for the extension.

Energia Paulista Participacoes owns part of Sao Paulo electricity
generator AES Tiete SA.

          1001 North 19th Street
          Arlington,  VA   22209
          Phone: (703) 522-1315
          Fax: (703) 528-4510
          Home Page:
          Roger W. Sant
          Paul T Hanrahan

HOTEL NACIONAL: Goes To Auction Block At A Base Price of BRL32M
Brazil's regulatory body Susep (Superintendencia de Seguros
Privados) is now offering Hotel Nacional for auction at a minimum
bid of BRL32 million (US$10.9 million). The hotel has been
offered for sale two times with minimum bids of BRL79 million
(US$26.96 million) on the first and BRL63 million (US$21.5
million) on the second.

Hotel Nacional, based in Sao Conrado (Rio de Janeiro) has been
closed since 1994, when its former owner Hoteis e Turismo
Guanabara went bankrupt. Subsequently, Interunion Capitalizacao,
which administrated the Papa Tudo, acquired the hotel in a deal
worth BRL16 million. However, Interunion also bankrupted in the
following year and had its properties seized, including Hotel
Nacional. Susep tried to sell the hotel two years ago, but was
prevented by Rio de Janeiro City Hall as debts relating to unpaid
taxes reached BRL8.7 million.

The hotel's remodeling cost was originally estimated in BRL27
million and now is appraised at BRL40 million due to the
Brazilian currency devaluation.

CONTACT:  SUSEP (Superintendency for Private Insurance)
          Rua Buenos Aires, 256-4
          20061-000 Rio de Janeiro/RJ
          Phone: 0800 218484
          Home Page:

NET SERVICOS: Increases Share Allotment for Upcoming Sale
Net Servicos de Comunicacao SA, controlled by Latin America's
biggest media company Organizacoes Globo, upped the number of
shares it plans to sell to raise BRL1 billion (US$342 million) to
reduce its debt, reports Bloomberg.

Instead of selling 575 million in new shares as announced last
week, the largest cable television operator in Brazil decided to
increase this to 800 million shares. The Company set a minimum
price of BRL1.21 per share.

The cable operator, which has never posted a profit, plans to
sell 389 million new common shares and 411 million preferred

Recapitalization of the struggling cable provider comes after the
Company managed to reschedule payments on US$200 million in debts
owed in 2002 and 2003 and paid US$52 million in commercial paper
due last Monday.

Net Servicos shares, the second-worst performing stock in the
benchmark Bovespa index this year, are down 84% since year-end
compared with a 28% decline in the Bovespa. The shares gained
4.1% Tuesday to BRL1.26.

To see financial statements:

          CNPJ/MF n  00.108.786/0001-65
          NIRE n  35.300.177.240
          Companhia Aberta
          Rua Verbo Divino n  1.356 - 1 a, Sao Paulo-SP
          Leonardo P. Gomes Pereira
          Investor Relations and Chief Financial Officer


AES GENER: Fitch Comments More Confidently on Liquidity
Fitch Ratings' concerns over AES Gener's (Gener) near term
liquidity, specifically with respect to the US$40 million putable
debt maturity with ABN AMRO due July 31, 2002, and the US$82
million put agreement with Bank of America (BofA) beginning
October 2002, have been allayed. Gener appears to have
successfully addressed its near term liquidity issues as it has
reached an agreement in principal with ABN AMRO to avoid full
payment on the lender's put agreement. Fitch believes that a
similar agreement with BofA will be reached in the very near
future. Fitch currently maintains foreign and local currency
ratings of 'BBB-' on Gener; the ratings have a Negative Rating

Gener had been negotiating with these lenders to address the
short-term liquidity concerns with the goal of resolving both
puts simultaneously. The BofA loan is related to and part of the
US$257 million bank loan for TermoAndes.

Terms of the agreement with ABN AMRO reportedly will include a
US$16 million prepayment, a manageable quarterly amortization
schedule and possible limitations on dividends. The final
maturity of the ABN AMRO loan is January 2004.

The BofA loan is also expected to include a manageable prepayment
in July and possibly a minor increase in the current semi-annual
amortization. The US$257 million TermoAndes loan was originally
issued in 1998, and the BofA portion and put agreement has been
renewed three times since then. BofA's relationship with AES and
many of its subsidiaries, should support and/or provide incentive
to maintain its position with Gener.

Both loans may also receive further prepayment from a portion of
the proceeds from the expected sale of certain assets during the
second half of the year.

The liquidity issues originally arose from the timing of the put
options, given the current capital market environment and
liquidity concerns of Gener's parent company, AES Corp. Fitch
believes Gener to be a stable, financable company with good cash
generation ability. Gener benefits from its project-like
structural characteristics, including long-dated power purchase
agreements (PPAs) with financially strong customers and fuel
supply contracts that lower business risk and offset lower than
average consolidated credit protection measures. Credit
protection measures are expected to improve over the next year as
the company benefits from continued demand growth in Chile and
low spot energy prices, which should offset the reduction in
regulated energy prices, a constructive regulatory environment
and a contractually stable base of revenues.

Consolidated results will still reflect the financial burden of
its international investments until they are sold or transferred,
or materially improve their individual financial performance. The
inability to further improve consolidated results could pressure

With the put agreements addressed, Gener's future debt service
profile is weighted toward 2005 and 2006 when the company's
US$477 million convertible bond and its US$200 million Yankee
bond mature. Although refinancing risk is present, Fitch believes
Gener should have sufficient time to find financing solutions
supported by the underlying fundamentals of the company.

Generally, dividends will be a minimum of 30% of net income, as
required by Chilean law. Given the 2001 net loss reported under
Chilean GAAP, the company will not pay any dividends based on
2001 results. For 2002, dividend payments may be made quarterly,
depending on financial results, but at the potential personal
liability of the company's directors. Capital reductions at AES
Gener are precluded by the convertible bond indenture and
ringfence structure, which also limits the distribution of
proceeds from asset sales. A distribution test under the by-laws,
coupled with the renegotiated put agreements, should also help to
retain cash in the company.

AES Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity with
an installed capacity of 1,757 MW composed of 1,512 MW of thermal
and 245 MW of hydro generating capacity. The company operates
most of the thermal electric power plants in the country. AES
Gener serves both the Central Interconnection System (SIC) and
Northern Interconnection System (SING) through various
subsidiaries and related companies. Gener is 98.65%-owned by AES.

          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer

WACKENHUT CHILE: Sells Food Services Unit For CLP400M
Wackenhut Chile has sold its food services subsidiary, Wackenhut
Mantenimiento Integral, to Central de Restaurantes, for CLP400
million, as part of the Company's liquidation. The Company is yet
to complete the sale of Wackenhut Servicios Postales to Sinco for
CLP300 million.

The move to sell the two subsidiaries is part of an effort to
preserve 4,500 job positions in both subsidiaries, and raise
funds for Wackenhut Chile to maintain its 5,000 employees.

Other subsidiaries heading for the auction block are GATX APL
(logistics) that received an offer from a Wackenhut partner, and
Wackenhut Servicios Temporales (temporary labor).

Wackenhut Valcorp Servicios (security services) has been acquired
by Ingeseg.

          Av. Berlin 843
          Phone: 562 361 5000
          Fax: 562 361 5110
          Home Page:
          Contact: Alfredo Leontic, President


SEVEN SEAS: Material Downward Revision of Guaduas Oil Field
As part of the reassessment of the Guaduas Oil Field, announced
July 1, 2002, Seven Seas Petroleum Inc. (Amex: SEV) stated
Wednesday that the Company has initiated, with its independent
reservoir engineers, including Ryder Scott Company Petroleum
Consultants, a reevaluation of the Guaduas Oil Field's proved
reserves. Based on the latest available field data the Company
now believes that there will be a material downward revision in
the Company's published net proved reserves of 47.6 million
barrels of oil as of December 31, 2001.

The expected reserve reduction is based, in part, on lower
production rates, lower production pressures, and the occurrence
of rapid gas encroachment in structurally higher wells. The late
May 2002 commencement of gas injection activities allowed resumed
production from several significant wells that had been
previously shut-in or curtailed due to high gas-to-oil ratios.
However, when the wells were opened for production or were no
longer curtailed, oil production rates did not increase as
anticipated. Production from the Guaduas Oil Field has averaged
approximately 6,700 gross (3,100 net to Seven Seas) barrels of
oil per day, month-to-date.

The Company is continuing its efforts to optimize production from
existing wells through a workover program, which includes
fracture treating certain wells, reconfiguration of electrical
submersible pumps, and the completion of additional gas injection
operations. The Company is also studying the geological and
geophysical implications of these production data to determine
future development locations. As previously stated, the impact of
these operations and studies may not be known for several months.

At this time, neither the Company nor Ryder Scott Petroleum
Consultants are prepared to estimate the downward revision of net
proved reserves or their net present value. Upon completion of
the independent reevaluation, expected by the end of August, the
Company will announce revised net proved reserves, their net
present value, as well as the resulting production and cash flow

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


AEROMEXICO: Union Pushes For Probe Into Multiple Mishaps
Aeromexico, the country's leading airline that is expected to be
sold-off this year, is under attack by unions for the series of
mishaps that have occurred on its flights in recent days.

According to a report released by EFE, Mexico's Aviation Workers'
Organization (OTAM) is urging the airline to investigate the
problems and to review maintenance procedures for its aircraft.

Aeromexico, one of the two main units of airline holding company
Cintra SA, admitted to two incidents that occurred in the last
week, although it refused to comment on another one that occurred
at the beginning of the month.

The first incident the airline admitted to occurred on July 17,
when an airplane flying between Monterrey and Mexico City had to
make an emergency landing at a military base.

Meanwhile, last Saturday an airplane flying from Santiago to the
Mexican capital had to return to the Chilean capital because of
problems with a turbine.

The third incident occurred on July 8, when an airplane flying
from Madrid to Mexico City had to return to Spain four hours into
the flight.

OTAM said the company will have to pay closer attention in order
to avoid further problems.

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

GRUPO IUSACELL: 2Q02 Revenues, EBITDA Lower Despite Cost Cutting
Grupo Iusacell, S.A. de C.V. (Iusacell or the Company) [NYSE:
CEL; BMV] Wednesday announced a 34% increase in its cellular
subscriber base compared to the end of the second quarter of
2001. Record additions grew the Company's subscriber base to 2.2

The Company's blended churn rate remained relatively stable at
3.0% for the quarter. Blended churn fell to 3.0% from the 3.7%
posted in the same period of 2001, but increased slightly from
the 2.7% registered in the first quarter of 2002. The
implementation of stricter activation policies, enhanced customer
retention programs, and a restructured commission plan for both
Iusacell's sales force and third party distributors are
responsible for the improvement in churn levels over the second
quarter of 2001.

The Company recorded $1,299 million in revenues for the second
quarter of 2002, and earnings before interest, taxes,
depreciation and amortization (EBITDA) of $419 million, including
the benefit of non-strategic cellular tower sales of $33 million.
Excluding this benefit, EBITDA for the second quarter of 2002 was
$386 million. Adjusted EBITDA(2) margin decreased to 23% from 26%
in the second quarter of 2001. The costs associated with the
increase in gross additions and the start-up of commercial
operations in Regions 1 and 4, which were non-operational in
2001, as well as the decline in quarterly revenues contributed to
the three basis point reduction in year over year adjusted EBITDA
margins. Excluding the impact of Regions 1 and 4, the second
quarter 2002 adjusted EBITDA margin was 26%.

Mr. Fares F. Salloum, Chairman of the Board of Iusacell commented
the changes of leadership in Iusacell: "The Board of Directors
felt that a change in leadership was required at this time, Peter
Burrowes has decided to pursue other interests and we are
grateful for his contributions. Carlos Espinal has the knowledge
of the industry and the Mexican market, as well as the track
record in other Verizon affiliates."

Mr. Carlos Espinal, appointed President and Chief Executive
Officer of Iusacell commented: "We are reporting much improved
subscriber growth due to the aggressive marketing plans and
increased distribution channels. The drop in revenue and EBITDA
as well as the high level of postpaid churn are a major area of
concern, but with the support from the Board, we have prepared an
immediate action plan that will allow us to address the major
areas of concern and capitalize on the recovery of the Mexican

Operating Performance

As of June 30, 2002, Iusacell's total subscriber base increased
34% on a year over year basis. On a sequential basis, the total
subscriber base increased 10% from the first quarter of 2002, to
2.2 million customers. Net additions in the second quarter of
2002 totaled 205,134, a 229% increase over normalized second
quarter 2001 and 46% over first quarter 2002 net additions. The
postpaid customer base remained stable during the second quarter
of 2002 compared to the previous quarter although it has declined
11% year over year.

The improved subscriber growth is a result of the Company's
growth strategy, restructured sales compensation plans and churn
management initiatives that both reward customer loyalty and
encourage sales.

The Company stemmed the erosion of its postpaid subscriber base,
although high churn rates and migration from high-revenue
generating postpaid plans to lower-revenue generating postpaid
and prepaid options continue to impact overall revenue. Net
postpaid subscriber numbers remained virtually unchanged at the
end of the second quarter of 2002 at 384,756 when compared to the
384,410 registered at the end of the previous quarter. The
Company expects the net postpaid customer base to grow as gross
additions increase and retention programs continue to reduce

The February 2002 introduction of the hybrid postpaid plan IDEAL
has continued to be highly accepted by the market. Approximately
50% of the total second quarter postpaid additions were
attributable to this product. The 18-month contract IDEAL plan
charges subscribers a fixed monthly fee for 30-minutes of usage
and allows the purchase of additional airtime via Iusacell's VIVA
prepaid card. Iusacell is the innovation leader in the postpaid
market segment and will continue to develop specialized products
targeted towards this consumer segment.

The Company streamlined its prepaid promotional offerings,
increased the availability of VIVA cards and marketed prepaid
World Cup cards to celebrate soccer's most important competitive
event. As of June 30, 2002, Iusacell's prepaid cards were
available at approximately 51,000 points of sale, compared to
23,400 points of sale at June 30, 2001. The Company's prepaid
customer base was 1,815,635 subscribers at the end of the second
quarter 2002 and represented approximately 83% of the total
subscriber base.

The Company reported $1,299 million in total revenues in the
second quarter, a 20% reduction from the same period of 2001.
This year-over-year decline is attributable to the overall
decrease in the postpaid customer base, lower postpaid ARPUs
attributable to economic conditions and an increasing proportion
of postpaid customers in the lower-revenue generating IDEAL
package, as well as a significant decrease in CPP traffic from
fixed line consumers. The decline in postpaid revenues was
partially offset by revenues generated by the increased prepaid
subscriber base and from Regions 1, 4 and 8.

Cost of sales decreased 12% in the second quarter of 2002
compared with the same quarter of 2001, driven by an 18%
reduction in cost of service, in spite of an increase in costs
related to the lease back of sold cellular towers, the launch of
commercial PCS operations in Regions 1 and 4 and the acquisition
of Region 8. The reduction in cost of service was also partially
offset by an increase in other costs mainly derived from higher
telephone equipment cost as the Company continued posting higher
prepaid gross additions. As a percentage of total revenues, cost
of sales increased to 36% in the second quarter of 2002 from 32%
in the same period of 2001.

As a result of the Company's efforts to reduce overall expenses,
aggregate sales and advertising expenses and aggregate general
and administrative expenses declined 13% and 20%, respectively,
as compared to the second quarter of 2001. As a percentage of
total revenues, sales and advertising expenses increased to 25%
in the second quarter of 2002 from 23% in the same period last
year while general and administrative expenses remained stable at
10% for each of these periods.

The Company recorded EBITDA of $419 million for the second
quarter of 2002, compared to $563 million in the same period of
2001. EBITDA in both periods included the impact of non-strategic
cellular tower sales; a $33 million gain in the second quarter of
2002 and a $1 million gain in the second quarter of 2001.
Excluding this benefit, EBITDA for the second quarter of 2002 and
2001 was $386 million and $562 million, respectively.

Depreciation and amortization expenses decreased 12% in the
second quarter of 2002 compared to the second quarter of 2001.
The decrease was primarily driven by lower handset amortization
expenses resulting from more cost-effective handset purchases and
a market-driven handset mix weighted toward lower-cost handsets.
In addition, depreciation and amortization expenses reported for
the second quarter of 2001 reflected a $41 million out-of-period
adjustment stemming from the alignment of certain assets useful
lives with international benchmarks. After normalization for this
2001 item, second quarter 2002 depreciation and amortization
expenses decreased 16% compared to second quarter 2001 results.

Direct cash acquisition costs per postpaid subscriber further
improved from US$293 in the second quarter of 2001 to US$245 in
the most recent quarter, primarily due to lower handset costs and
lower net commissions paid to distributors as part of the churn-
reduction charge-back initiative.

The Company reported an operating loss of $146 million in the
second quarter 2002, including the benefit from the sale of
certain non-strategic cellular towers. During the second quarter
of 2001, the Company also recognized the sale of certain non-
strategic cellular towers and reported an operating loss of $79
million. Excluding the tower-related gains and the 2001 second
quarter adjustment to depreciation and amortization costs,
Iusacell would have reported operating losses of $180 million and
$121 million during the second quarters of 2002 and 2001,

The Company reported an integral financing cost of $516 million
in the second quarter of 2002 compared to an integral financing
gain of $163 million in the second quarter of 2001. This result
was mainly attributable to a $364 million foreign exchange loss
recorded in the second quarter of 2002, compared to a $268
million foreign exchange gain in the same period of 2001. The
foreign exchange loss in the second quarter of 2002 resulted from
the 5.4% devaluation in the peso-dollar exchange rate in the
period. The negative effect of this devaluation was partially
offset by the benefits from the foreign exchange hedge. Also
contributing to the integral financing cost were interest expense
of $214 million in the second quarter of 2002, compared to $188
million in the same period of 2001, as well as lower monetary
correction gains of $62 million in the second quarter of 2002,
compared to $83 million in the same period of 2001.

The higher operating loss and integral financing costs in the
second quarter of 2002 resulted in a net loss of $685 million
compared to the $39 million net income recorded in the second
quarter of 2001 including the tower sale-related benefit.
Excluding this benefit, net loss for the second quarter 2002 was
$718 million.

Russell A. Olson, Iusacell's Chief Financial Officer, stated: "In
the second quarter we further rationalized capital expenditures
and aggressively managed costs and expenses. We continue to look
for additional opportunities to reduce costs and improve our cash

    Financial Condition

Liquidity. During the second quarter of 2002, the Company funded
its operations, capital expenditures, handset purchases and
interest payments principally with internally generated cash flow
and resources from the sale of certain non-strategic cellular
towers. On June 30, 2002, the Company's operating cash balance
was US$22 million. Iusacell also has US$24 million in escrow to
cover interest payments through December 2002 on its 14.25%
US$350 million Senior Notes due in 2006.

Capital Expenditures. Iusacell invested US$32 million in its
cellular and PCS regions during the second quarter of 2002,
primarily to expand coverage. As anticipated, the Company's
capital expenditures accelerated in the second quarter, as the
build-out of Phase II of the PCS project neared completion. See
Other Developments -PCS Buildout.

Due to prevailing factors in the global telecom industry, the
absence of a high-yield and project finance market for telecom
operators and the slowing of the Mexican economy, the Company
will reduce its 2002 capital expenditures rather than enter into
capital, credit or loan agreements that would further leverage
the Company's balance sheet. The revised 2002 capex budget, to be
internally funded, is approximately US$130 million versus the
US$250 million originally projected.

Targeted capital expenditure reductions will include selected
core region capacity enhancements where customers already enjoy
sufficient capacity and the highest quality levels in the
industry, Phase III of the PCS build-out in Regions 1 and 4, and
non-critical Region 8 coverage expansion. Iusacell carefully
evaluated these capital expenditure cutbacks which, while
important for our long term business model, will not
significantly compromise 2002 or 2003 subscriber growth due to
the existing capacity in the Company's network.

Debt. As of June 30, 2002, debt, including trade notes payable
and notes payable to related parties, totaled US$841 million. All
of the Company's debt is U.S. dollar-denominated, with an average
maturity of 3.3 years. As of quarter-end, Iusacell's debt-to-
capitalization ratio was 56.7%, versus 53.1% on June 30, 2001.

Hedging. The Company ended the second quarter 2002 with
approximately US$190 million in foreign exchange hedge coverage.
These hedges cover the principal and interest payments related to
the Company's 10% US$150 million Senior Notes due 2004 and
interest payments on other short-term debt.

    Other Developments

Cost-control initiatives. Due to the downturn in the global
telecom industry and the slowing of the Mexican economy, the
Company will take important steps to reduce costs and adapt to
the current environment, including the reduction of its labor
force by approximately 700 permanent and outsourced positions as
well as a reduction of real-estate costs. These initiatives will
be implemented shortly, and the Company expects approximate $50
million in net savings by year-end 2002.

PCS Buildout. The Phase II PCS build-out, including the addition
of network coverage to approximately 9 second-tier cities in
Regions 1 and 4, was substantially completed in the second
quarter. Once Phase II is completed and in service, Iusacell's
footprint will cover approximately 65% of these two regions'
population. Phase II is scheduled for completion before the end
of the third quarter 2002. Phase II has been financed by a
portion of the funds raised in the 2001 rights offer, internally
generated cash and inter-company loans from the Company and is
not subject to the reduction in capital expenditures.

Tower Sales. During the second quarter of 2002, the Company sold
and leased back 25 additional non-strategic towers to the Mexican
subsidiary of American Tower Corporation (MATC) for approximately
$33 million in net gains. Through 2001 and the first half of
2002, the Company had sold and leased back a total of 269 non-
strategic cellular towers to MATC. Iusacell expects to sell up to
an additional 61 non-strategic towers during the remainder of

Data Services. During the second quarter 2002, the Company
launched new data transmission services for corporate customers
in Mexico offering unified solutions in cellular communications,
long distance, data and Internet applications that can be used
simultaneously through a single access to the Iusacell network.
The main services include; multipoint dedicated links, multiple
digital services, corporate Internet and ISP and wireless data
applications. The services will leverage the fiber optic and
microwave capabilities of the Iusacell's network to bring these
expanded solutions to our existing and potential customers.

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 91 million POPs,
representing approximately 90% of the country's total population.
Iusacell is under the management and operating control of
subsidiaries of Verizon Communications Inc. (NYSE: VZ).

To see financial statements:

          Investor: Russell A. Olson, Chief Financial Officer
          Tel: +5255-5109-5751

          Carlos J. Moctezuma,
          Manager, Investor Relations
          Tel: +5255-5109-5780

GRUPO TRIBASA: Ifecom Head Says Recovery Still Possible
Luis Manuel Mejan, director of Mexico's Federal Institute of
Business Bankruptcies (Ifecom), expressed optimism that
construction and engineering company Grupo Tribasa can be rescued
provided that they ask for help.

With more than 2,000 creditors and debts of MXN11 billion,
Tribasa could still recover in six months, said Mejan. He tried
to compare Tribasa's situation to hospital patients, saying, "If
the doctor attends them in time, the doctor can help. The same is
true in industry."

During the last few months the bankruptcy processes have
increased considerably.

"Currently, more than 70 companies are under the microscope. In
October 2001 there were just 15 companies," said Mej n.

The official said the bankruptcy law used to suffer from various
defects, which affected companies once they went bankrupt, but
now the legislation is aimed at rescuing companies and avoid
their disappearance.

"It is important that companies ask for help while they still can
be rescued," stressed Mejan.

          Bosque de Cidros No. 173,
          Bosques de las Lomas
          05120 Mexico, D.F., Mexico
          Phone: +52-55-5229-7400
          Fax: +52-55-5229-7430
          Home Page:
          David Sandoval, Chairman and President
          Salvador Linares, Chief Executive Officer
          Adriana De Penaloza, Vice Chairman
          Fernando Ochoa, Corp. Director of Construction
          Gustavo Carbajal, Corp. Director of Admin. and Control

SANLUIS CORPORACION: Postpones 2Q02 Earnings Amid Restructuring
Sanluis Corporacion, S.A. de C.V., a Mexican industrial company
that manufactures autoparts and mines gold and silver, will delay
reporting second-quarter earnings, Bloomberg reports, citing a
company statement released through the Mexican stock exchange.

Sanluis is delaying for up to 20 working days the release of its
second-quarter earnings on expectations that it is close to
striking a restructuring agreement with bondholders.

More than a year has passed since the Company and its creditors
started talks to decide how to restructure US$290 million in
liabilities. Of the US$290 million Sanluis owes, US$77 million is
in commercial paper; US$5 million to US$8 million in two banking
institutions (one of which is the Bank of Venezuela); and US$105
million euro bonds.

An agreement will help shore up Sanluis's finances and may boost
confidence from customers, including General Motors Corp. and
Ford Motor Co., which will be needed if the Company wants to be
considered for new contracts to manufacture brake and suspension
parts when the economy recovers from a recession later this year
as expected.

The company has already reached a preliminary agreement with
bankers, led by J.P. Morgan Chase, to restructure its loans.

          Hector Amador

          New Court, St. Swithin's Lane
          London EC4P 4DU, United Kingdom
          Phone: +44-20-7280-5000
          Fax: +44-20-7929-1643
          Home Page:
          Sir Evelyn de Rothschild, Chairman
          Andrew Didham, Exec. Dir. Finance Director Holdings

          Campos Eliseos 345-8o Piso
          CP 11550 Mexico, DF Mexico
          Phone: 52 5 327 1450
          Fax: 52 5 327 1485
          Home Page:


AGRO GUAYABITA: Creditors Grant More Time To Restructure Debts
Creditors of Agro Guayabita approved the extension of the
Company's debt restructuring by 60 days, Gestion reports.

98% of the company's creditors agreed to a restructuring process
in April 2002 after it was declared insolvent by INDECOPI, Peru's
National Institute for the Defense of Competition and the
Protection of Intellectual Property.

The Company, which owes around US$50 million is looking for a
strategic partner to rescue it. The largest creditors include
Banco Wiese Sudameris, Interbank, Santander Central Hispano,
Banco Nuevo Mundo and Ferreyros S.

          Calle La Prosa, 138
          San Borja
          Lima 41
          Phone: +51 1 2247800
          Fax: +51 1 2240348
          Home page:
          Sr. Fernando Zavala Lombardi, Director-General

          Dionisio Derteano,
          102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6243
          Fax: +51-1-440-4832
          Home Page:
          Luis Felipe Wiese de Osma, Chairman
          Eugenio Bertini, Chief Executive Officer
          Carlos Palacio, Executive Committee President
          Rafael Llosa Barrios,  Finance

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

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

           Av. esq. Paseo de la República
           Rep. de Panam  s/n - San Isidro.
           Phone: 442-1800


VANESSA VENTURES: Govt. Probes Big Losses At Las Cristinas Mines
An economic report commissioned by the Venezuelan government
criticized Corporacion Venezolana de Guayana's (CVG) failure to
earn more than US$500 million in over a decade in light of the
total paralyzation of the mining industry at Las Cristinas mines
during the last ten years.

The report, published last July 19 by major Venezuelan political
weekly, Quinto Dia, highlights the interest of the Venezuelan
national government in quantifying such losses, consisting of not
only the loss of natural resources but also the damage to the
social environment surrounding Las Cristinas. Such quantification
would allow the Venezuelan government to take legal action.

The report reflected the findings of a thorough investigation
undertaken at the Vancouver Stock Exchange regarding the
financial performance of the Canadian company Vanessa Ventures,
which is the main shareholder of Minera Las Cristinas C.A.
(MINCA). Vanessa Ventures' rights to utilize the mines were
cancelled by the CVG based on the former's breach of contract
regarding Las Cristinas mines.

Pursuant to the report, Vanessa Ventures has been selling its
shares at the Vancouver Stock Exchange in order to raise money
and stimulate its economic performance, which is currently
running at a deficit. As a guarantee, Vanessa Ventures has
offered mining properties that belong to the Venezuelan
government, "which could be the basis for potential legal
action," the report stated.

The Venezuelan government document indicates that the
investigation was undertaken in order to explore the implications
of an official declaration issued by Vanessa Ventures Ltd.'s
president, Mr. Manfred Peschke, to the company's shareholders
last July 2. The declaration asserted that "MINCA has made a
number of challenges to the CVG's attempt to take control of Las
Cristinas without paying any compensation to the shareholders who
invested CAD $250 million and advanced this previously unknown
property into one of the world's largest gold deposits."

Pursuant to the investigation ordered by the Venezuelan
government, "In order to calculate how much money the CVG has
lost (or failed to make) because of the mines' inactivity over
the last decade, various factors must be taken into account. If,
as forecasted, Las Cristinas mines should have produced 3 billion
dollars in revenue in 17 years consisting of 9 million ounces of
gold, then in 10 years it should have generated at least 1.7
billion dollars in revenue."

"It is estimated that the royalties that would be owed to the CVG
(which, based on the contract, had to be paid monthly after a
two-year grace period at the beginning of the contract) would
exceed 500 million U.S. dollars. This would be the amount that
the CVG has failed to earn during the decade in which Las
Cristinas mines lay inactive. This amount far exceeds the amount
that MINCA claims to have invested (that is, 250 million Canadian
dollars, corresponding to approximately 160 million American
dollars) and is seeking to recover from the CVG in damages."

The report also referred to the difficulties faced by the
Canadian firm Vannessa Ventures in its projects throughout Latin
America, but particularly in Costa Rica and Venezuela, with whose
governments the company "has particularly deep conflicts."

Pursuant to the report, "The main difficulties faced by the
company can be summarized as follows: limited experience in
mining, a weakened financial situation, and legal conflicts with
the countries where it is insisting on its mining rights."

Quoting a report issued by Vannessa Ventures to the U.S. Security
and Exchange Commission in January 2002, the Venezuelan
government's investigation underscored the fact that "the company
has never tapped a mine to the point of making it commercially
viable, and has never generated sufficient cash flow based on
mining in any part of the world."

Furthermore, the report points to the company's present deficit,
as well as its losses posted during the past six consecutive
years. "In summary, Vannessa Ventures Ltd.'s economic status does
not reflect a company that has the capacity to move forward with
a three billion dollar project such as Las Cristinas project,
without mentioning Vannessa Ventures' simultaneous participation
in mining projects in Costa Rica, Guayana, and Brazil."

The report was quoted in the Venezuelan government's findings as
follows: "Accordingly, it is not possible to gauge the ability of
the company [Vannessa Ventures Ltd.] to meet its estimates
regarding production, time, and cost regarding such properties.
Technical considerations, delays in receiving government
approvals, the inability to obtain financing, and other factors
could cause delays in developing the properties. Such delays can
have materially adverse effects upon the Company's economic

"Vannessa Ventures Ltd.'s current vulnerability in a highly-
competitive environment consists of the following weaknesses:

1. Lack of Massive Financial Resources. The financial situation
in general reflects a limited cash flow and financial strength
needed for carrying out the mining projects at the twelve sites
awarded to it.

2. High Level of Losses. For the company Vannessa Ventures Ltd.,
2002 is the sixth year of accumulated losses. Since its
restructuring and reactivation in 1996, the company has not been
able to successfully undertake any projects in the mining sector.

3. Accumulated Financial Deficit. At the same time, Vannessa is
carrying a deficit of eleven million Canadian dollars, which
reflects irregular financial situation that does not inspire

4. Limited Experience in Mining. Vannessa's limited resources and
insufficient experience in mining are incompatible with its
interest in carrying out as ambitious a project as Las Cristinas.

5. Legal Instability of its Projects. Two of [Vannessa's] most
important projects (the Cerro Crucitas in Costa Rica and Las
Cristinas in Venezuela) are being challenged legally, which
further prevents the company from obtaining resources that come
from selling participatory interests in these projects.

"The company is seeking the value added by joint ventures or
[business] alliances with more powerful mining groups, as is the
case with Placer Dome Inc., with which [Vannessa] has agreements
regarding development projects in Costa Rica and Venezuela."

"With the available financial information, it does not appear
likely that Vannessa Ventures Ltd. can consolidate its financial
resources in order to develop mining projects at the twelve
concessions awarded to it, one of which is Las Cristinas."

As the report states, "All indications point to the fact that
Vannessa Ventures is operating more like a logistics support
company than like a major corporation interested in successfully
breaking into the mining field. The key question is, what is the
benefit of maintaining a company with a deficit situation for
five years without even developing one mining project?"

"According to our analysis, it follows that Vannessa Ventures
Ltd. could be operating more as a company that keeps mining
properties around the world 'in reserve' so as to be tapped or
manipulated in order to influence the global price of gold, and
to occupy space in a highly competitive market in which there are
fewer and fewer available mines."

On the other hand, the Venezuelan government's investigation
analyzed the two reports produced by the Venezuelan National
Assembly about Las Cristinas which were undertaken at the request
of both the CVG and MINCA.

Quoting a parliamentary source, the report said that "MINCA was
given guarantees regarding due process and its legal defense, as
set forth in Article 49 of the Constitution of the Bolivarian
Republic of Venezuela."

After this report was published by the Foreign Policy Commission,
MINCA reacted by pointing out that the parliamentary report was
not "impartial, objective, complete, sustainable, and backed by
the Venezuelan Constitution." Furthermore, MINCA alleged that
"one of the parties (MINCA) had not been heard."

"In fact, once the preliminary investigations undertaken by the
Venezuelan deputies were finished, the Commission sent an
official notice to MINCA's legal representative, Dr. Mariana
Almeida, informing her about the results of the investigation in
accordance with Venezuelan law," said a spokesman of the
parliamentary commission.

Finally, the report commissioned by the Venezuelan government
cautions that a strategy is in place that is meant to "gain time
as ordered by MINCA's executives in Venezuela and Canada in order
to keep Las Cristinas project paralyzed for as long as possible
and thereby seek a favorable change in the CVG's board of
directors and even in the Venezuelan Ministry of Energy and

CONTACT: For further information: Jose Hernandez, (786) 325-6463,
or e-mail, imagocomm(at), for Corporacion Venezolana
de Guayana


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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Information contained herein is obtained from sources believed to
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