TCRLA_Public/020809.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, August 9, 2002, Vol. 3, Issue 157

                           Headlines


A R G E N T I N A

CAPEX: $40M Debentures' Service Payments Approved
CMS ENERGY: Argentine Expropriation, Devaluation Hurts Earnings
TRANSENER: $525M Of Corporate Bonds Get `D' Rating From S&P


B E R M U D A

FLAG TELECOM: Arthur Andersen Resigns As Certifying Accountant
TYCO INTERNATIONAL: Ex-CEO Accused of Squandering Millions


B R A Z I L

NET SERVICOS: Base Price For Share Offering Drops To BRL0.70
NET SERVICOS: Board Meeting Minutes From August 5, 2002
TELESP CELULAR: Volatile Currency Trumps Sales for 2Q02 Net Loss
VARIG: Execs To Appeal Court Decision On Asset Freeze
VARIG: Board Approves Merger of Two Subsidiaries


C H I L E

ENERSIS: To Carry On Renegotiation Of Chilean Debts This Month
MANQUEHUE NET: Strikes Debt Accord With Creditors
TELEFONICA CTC: To Buy Back $53M In Bonds August 16


C O L O M B I A

ENRON: Prosecutors Investigate Possible Bribery


E C U A D O R

PACIFICTEL: Scrambling to Cut Costs, Restructure


M E X I C O

AVANTEL: Economy Ministry Extends Ownership Structure Deadline
CFE: Financial Difficulties Expected To Deepen
GRUPO BITAL: SCH to Sell 30% Stake for the Right Price
GRUPO IUSACELL: Fitch Assigns 'CCC+' to $350M Senior Notes


N I C A R A G U A

ENRON: Presents New Guarantee For Hidrogesa Bid


U R U G U A Y

BANCO COMERCIAL: Fitch Downgrades Ratings To 'DD'
BANCO COMERCIAL: S&P Lowers Ratings to 'D'
BANCO VELOX: Interpol Arrests Uruguayan Banker


     - - - - - - - - - -


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

CAPEX: $40M Debentures' Service Payments Approved
-------------------------------------------------
Argentina's Central Bank has authorized Capex SA to make interest
payments on US$40 million debenture issue, which were originally
due May and June, BNAmericas reported.

In a statement to the Buenos Aires stock market the natural gas
producer and thermal power generator is scheduled to pay
US$97,220 obligation due May 11. It is also planning to meet the
US$265,145 payment due June 11, although the authorization for
such disbursement is still pending.

The company's cash-generation capacity has been extremely
hampered by the unpegged currency policy adopted earlier this
year. Depreciating local currency compounds the difficulty by
increasing the weight of dollar-denominated debts.

Lower energy costs relative to the dollar have also taken their
toll on the company's financial standing. Selling at a wholesale
price of US$7/MW is makes for nearly impossible conditions in
which to meet debt payments, much less pay operating costs.

The company has otherwise complied with interest payments on all
their debts, as it plans to re-negotiate its debt-financing terms
in 3Q02. Capex generates electricity in the Comahue region in
southwest Argentina, with six gas-fired units and one steam unit.

CONTACTS:  Enrique Gotz, Chairman
           Alejandro Gotz, Vice Chairman
           948/950 Av Cordoba Dept 5
           Buenos Aires, Argentina
           Phone   +54 110 4322 4884
           URL: http//www.capex.com.ar


CMS ENERGY: Argentine Expropriation, Devaluation Hurts Earnings
---------------------------------------------------------------
CMS Energy Corporation (NYSE: CMS) on Wednesday announced a
second quarter consolidated net loss of $75 million, or $0.56 per
share, compared to second quarter 2001 consolidated net income of
$53 million, or $0.40 per share. Operating net income for the
second quarter was $59 million, or $0.44 per share, compared to
$35 million, or $0.27 per share, in the second quarter of 2001.
Operating net income excludes the effects of non-recurring events
such as gains on asset sales ($21 million or $0.16 per share),
losses on discontinued operations of CMS Oil and Gas and CMS
Viron ($141 million or $1.05 per share), restructuring costs
($0.06 per share) and expenses related to early debt retirement
($0.05 per share).

Operating net income reflects strong results from Consumers
Energy's electric and gas utility businesses including reduced
power supply costs due to an extended refueling outage in 2001 at
the Palisades nuclear plant, favorable weather effects on natural
gas and electric deliveries, improved earnings at CMS Energy's
independent power plants and the benefits from mark- to-market
accounting of long-term natural gas fuel supply contracts at the
Midland Cogeneration Venture.

"Based on the second quarter results and the current outlook for
the remainder of year, we are reaffirming our $1.50 to $1.55 per
share guidance for operating net income for the full year," said
Ken Whipple, CMS Energy chairman and chief executive officer.

Second quarter operating revenue totaled $2.4 billion, versus
$2.2 billion in the second quarter of 2001.

For the first six months of 2002, consolidated net income was
$314 million, or $2.30 per share, compared to $162 million, or
$1.25 per share in 2001. Operating net income for the same period
was $134 million, or $0.99 per share, compared to $143 million,
or $1.12 per share, respectively. Operating net income excludes
the effects of non-recurring events such as gains on asset sales
($35 million or $0.26 per share), income from discontinued
operations ($169 million or $1.22 per share), restructuring costs
($7 million or $0.05 per share), expenses related to early debt
retirement ($8 million or $0.05 per share) and a goodwill
accounting change write-off ($9 million or $0.07 per share).
Operating revenue for the first six months of 2002 totaled $4.8
billion compared to $5.0 billion in the first half of 2001.

Operating net income of CMS Energy's utility business, Consumers
Energy, was $58 million for the second quarter, up 100 percent
from $29 million in the second quarter of 2001. Cool temperatures
in May, the tenth coldest May on record in Michigan, helped to
increase natural gas deliveries by 8.3 billion cubic feet during
the quarter versus the second quarter of 2001. Natural gas
deliveries were 65.3 billion cubic feet, up 14.7 percent from the
same period last year. Warmer-than-normal temperatures during
June helped total electric deliveries for the quarter to increase
by 133 gigawatt-hours versus the second quarter of last year.
Electric deliveries were 9,410 gigawatt-hours, up 1.4 percent
from the second quarter of 2001.

Second quarter operating net income of the natural gas
transmission business was $13 million, down seven percent from
$14 million in the same period last year, due to lower earnings
from liquefied natural gas operations reflecting fixed contract
rates compared to higher spot rates in the second quarter last
year, as well as expropriation and devaluation issues in
Argentina. These were partially offset by lower fixed costs
reflecting debt retirement and lower operating costs.

Independent power production operating net income in the second
quarter totaled $48 million, up 167 percent from $18 million in
the same period last year, due to improved plant performance and
increased earnings from the Midland Cogeneration Venture
reflecting mark-to-market accounting for long- term natural gas
fuel supply contracts, lower steam costs at the Dearborn
Industrial Generation plant and higher earnings from
international plants. These were partially offset by
expropriation and devaluation issues in Argentina.

Marketing, services and trading reported an operating net loss in
the second quarter of $18 million, as compared to operating net
income of $33 million in the same period last year, primarily
reflecting credit constraints which adversely affected sales
contract origination and power and gas trading margins.

Significant second quarter developments in the CMS Energy asset
sale program included:

* Closing of the sale of Consumers Energy's electric transmission
system for approximately $290 million to Washington, D.C.-based
Trans-Elect, the first transaction of its kind in the U.S.;

* Closing of the sale of CMS Oil and Gas Company's coal bed
methane holdings in the Powder River Basin of Wyoming and Montana
for $101 million to XTO Energy of Fort Worth, TX,;

* Closing of the sale of CMS Generation's 47.5 percent equity
interest in Toledo Power Co. in the Philippines for $10 million
to Mirant, and;

* Announcement of a definitive agreement and letter of intent,
which together provide for the sale of CMS Oil and Gas for
approximately $232 million.

CMS Energy also announced it is exploring the sale of its
domestic pipeline and field services businesses in order to
accelerate balance sheet improvement and enhance financial
flexibility. The assets being considered for sale include the
Panhandle and Trunkline interstate natural gas pipelines, the LNG
receiving terminal at Lake Charles, La., CMS Field Services' gas
gathering and processing assets and CMS Energy's one-third
ownership interest in Guardian Pipeline. These are in addition to
CMS Energy's previously announced plans to sell its one-third
ownership interest in Centennial Pipeline LLP, an interstate
refined petroleum products pipeline.

CMS Energy Corporation is an integrated energy company, which has
as its primary business operations an electric and natural gas
utility, natural gas pipeline systems, independent power
generation, and energy marketing, services and trading.

For more information on CMS Energy, please visit our web site at:
www.cmsenergy.com /

To see Financial reports:
http://bankrupt.com/misc/CMSEnergy.htm

CONTACT: CMS Energy Investor Relations,
         Phone: +1-517-788-2590


TRANSENER: $525M Of Corporate Bonds Get `D' Rating From S&P
-----------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
has assigned a "D" rating to US$525 million of program type
corporate bonds of Transener SA.  The bonds mature March 26,
2003.  The rating reflects the company's financial standing as of
March 31, 2002.

Transener has been affected by the devaluation of the Argentine
currency, posting losses of up to ARS494 million (US$213 million)
according to reports in March.

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 has 14,200km in transmission lines, including 5,500km
of the network of its subsidiary Transba. Transener is 65-percent
controlled by the Citelec consortium, formed by the UK's National
Grid (42.9 percent), Argentina's Perez Companc (42.9 percent),
and investment funds The Argentine Investment Co. and IRHE
Holdings, with 7.5 percent each.

CONTACTS:  Compania de Transporte de Energia Electrica en Alta
           Tension (Transener S.A.)
           Av. Paseo Colon 728, 6"Piso - (1063)
           Buenos Aires, Argentina
           Tel. (5411) 4342-6925



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

FLAG TELECOM: Arthur Andersen Resigns As Certifying Accountant
--------------------------------------------------------------
Flag Telecom Holdings Ltd., in a Securities and Exchange
Commission filing, disclosed the resignation of Arthur Andersen
as its certifying accountant. The same follows for its two
Bermuda subsidiaries, Flag Limited and Flag Atlantic Limited.
According to the filing, the resignation, which is effective July
31, 2002 "resulted from Arthur Andersen UK's agreement with
Deloitte & Touche."  Under the deal partners and staff of Arthur
Andersen will join D&T effective August 1, 2002.

The resignation is set to be approved by the company's audit
committee.

Flag Telecom has not yet disclosed the name of the new auditor
who will replace Arthur Andersen.

On July 3, FLAG Telecom Holdings Limited and its subsidiaries
that have filed in U.S. Bankruptcy Court under Chapter 11
announced that it has filed a Plan of Reorganization in the U.S.
Bankruptcy Court for the Southern District of New York.

The Company hopes to emerge from the Chapter 11 filing by
September 2002.

The FLAG Telecom Group is a leading global network services
provider and independent carriers' carrier providing an
innovative range of products and services to the international
carrier community, ASPs and ISPs across an international network
platform designed to support the next generation of IP over
optical data networks. On April 12 and April 23, 2002, FLAG
Telecom Holdings Limited and certain of its subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of New York. Also, FLAG Telecom
Holdings Limited and the other companies continue to operate
their businesses as Debtors In Possession under Chapter 11
protection. FLAG Telecom Holdings Limited and certain of its
Bermuda-registered subsidiaries - FLAG Limited, FLAG Atlantic
Limited and FLAG Asia Limited - filed parallel proceedings in
Bermuda to seek the appointment of provisional liquidators to
obtain a moratorium to preserve the companies from creditor
actions. Provisional liquidators were appointed and part of their
role is to oversee and liaise with the directors of the companies
in effecting a reorganization under Chapter 11.

CONTACT:  FLAG Telecom
          John Draheim, VP Corporate Services
          Phone:(+44 20 7317 0826)
          E-mail: Jdraheim@flagtelecom.com
              or
          FLAG Telecom
          David Morales, VP Corporate Finance & Investor
                                        Relations
          Phone: (+44 20 7317 0837)
          E-mail: Dmorales@flagtelecom.com


TYCO INTERNATIONAL: Ex-CEO Accused of Squandering Millions
----------------------------------------------------------
Former Tyco International chief executive Dennis Kozlowski may
have spent more than US$135 million of company funds at his
benefit, AP reported. According to reports, the amount was
diverted to the ex-CEO largely in the form of forgiven loans and
company payments for real estate, charitable donations and
personal expenses.

After being indicted on tax evasion charges on expensive art
works, probes have again found several lucrative deals using
company funds under Kozlowski's administration.

These include more than US$11 million cash for antiques, art and
other furnishings in Kozlowski's New York apartment, among them a
$6,000 gold-and-burgundy, floral-patterned shower curtain.

Some US$18 million was also paid for the company's corporate
apartment, the Fifth Avenue duplex.

Tyco also spent half of the US$2.1 million trip that Kozlowski
took to the Italian island of Sardinia.

Kozlowski also benefited from a US$19 million no-interest loan
from Tyco for the payment of a house in Boca Raton, Fla., in
1998.  But the loan was not even paid as it was charged as part
of a "special bonus" program.

The income taxes for the given loan was even covered by company
at a charge of US$13 million, says reports citing sources close
to the company.

These deals were reportedly not disclosed to the company's
shareholders, nor were they aware of the expenses needing
disclosures during Kozlowski's spending spree, says Tyco
spokesman Walter.

A person speaking on behalf of Kozlowski denied the personal
spending of funds by the ex-CEO, as well as the existence of
forgiven loans.  According to him, Kozlowski had believed the
transactions were properly accounted for.

Stephen Kaufman, Kozlowski's lawyer, did not comment on the
reports.

Tyco, a conglomerate with 277,000 employees, is based in Bermuda
but run from Exeter, N.H.

CONTACT:  TYCO INTERNATIONAL LTD.
          Walter Montgomery, +1-212-424-1314
          Investors: Kathy Manning, +1-603-778-9700



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

NET SERVICOS: Base Price For Share Offering Drops To BRL0.70
------------------------------------------------------------
Net Servicos de Comunicacao SA, Brazil's largest cable television
operator, has again lowered the minimum share price on its
BRL1.0-billion ($1=BRL3.08) equity offering after investors
balked at the offering price.

Net Servicos, whose stock tumbled 42% percent the past four
sessions, cut the share price to BRL0.70 from an initial BRL1.21,
forcing the Company to increase the number of shares it would
have to offer to meet its goals.

The cable operator, faced with a decline in subscribers, is
looking to raise cash to pay US$253 million in debt that matures
this year. It had US$665 million in debt at the end of March, or
more than 13 times its market value of BRL151.8 million. Around
US$154 million in debt comes due in 2003, US$149.3 million in
2004, US$46.9 million in 2005 and US$61.9 million in 2006.

It's the third time in three weeks that Net Servicos, which has
never made a profit, changed its planned share sale as investors
have fled unprofitable media and telecommunications companies.
Analysts say the changes will cause added dilution for minority
shareholders.

The changes "show the share sale has been a failure," said Thomas
Taterka, a trader at brokerage Concordia SA in Sao Paulo, which
doesn't own any Net Servicos shares. "Share prices in Net
Servicos have tumbled and reflect the general concern over its
debt and skepticism on the cable sector as a whole."

Net Servicos, controlled by Latin America's biggest media
company, Organizacoes Globo, began selling the shares Wednesday.

Shares in Net Servicos, the worst performer in the benchmark
Bovespa index, recently fell 1 centavo, or 1.8%, to 56 centavos
on the Sao Paulo Stock Exchange. The shares, which fell 19%
Tuesday, are down 93% this year, compared with a 27% decline in
the Bovespa index.

The Company plans to sell 854 million shares, up from 575 million
shares it planned on July 18, in order to raise BRL597.5 million
in cash.

Net Servicos said it will raise the remaining BRL400 million
reais through a rights offering to shareholders Organizacoes
Globo, Bradespar SA, Brazil's National Development Bank BNDES and
RBS Participacoes. Microsoft Corp., another Net Servicos
shareholder, isn't taking part, the cable operator said.

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

CONTACT:  NET SERVICOS DE COMUNICACAO S.A.
          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
          Contact:
          Leonardo P. Gomes Pereira
          Investor Relations and Chief Financial Officer
          URL: http://globocabo.globo.com/


NET SERVICOS: Board Meeting Minutes From August 5, 2002
-------------------------------------------------------
1. VENUE, TIME AND DATE: At the Company's headquarters, located
at 1356 Verbo Divino Street, 1st floor, Sao Paulo, SP, at 18:00
(Brazilian time) on August 5, 2002.

2. ATTENDANCE: The members of the Board of Directors, whose
signatures appear below in these minutes.

3. MEETING BOARD: Roberto Irineu Marinho, Chairman and Stefan
Alexander, Secretary.

4. AGENDA: to deliberate about (i) the determination of the price
of the shares to be issued through the public offering approved
at the Board of Directors' Meeting ("BDM") held on June 18, 2002,
with the changes approved in the BDMs held on July 23, 2002 and
July 31, 2002 (the "Shares"); (ii) the Company's capital increase
and the total number of common and preferred shares to be issued;
(iii) the method of subscription and payment of the Shares; (iv)
treatment of investors interested in subscribing the Shares; and
(v) the authorization for the Management to take any and all
actions necessary for the offering of the Shares.

5. DECISIONS: The attending members of the Board of Directors
unanimously decided the following:

(a) To set the issue price of the Shares at R$ 0.70 per common
share and at R$ 0.70 per preferred share. The issue price of the
common and preferred shares was settled after the conclusion of
the book building process by the public distribution
coordinators, in compliance with article 170, first paragraph,
item III of Law # 6,404/76, based on the trading price of the
Company's preferred shares (as the Company's common shares do not
have enough liquidity) on the Sao Paulo Stock Exchange - BOVESPA,
on the date of determination of the issue price of the Shares,
with the possibility of adjustment (premium or discount) over the
average weighted trading price of the preferred shares on such
date, as a result of market conditions. The issue price of the
Shares was determined based on the institutional investors'
interest for the subscription and acquisition of the preferred
shares to be issued by the Company, and without the direct
participation of the Company's shareholders, of the holders of
the 2nd public issue of the Company's debentures and of the non-
institutional investors who placed orders during the reservation
period. In compliance with the provisions of article 170, 7th
paragraph, of Law # 6,404/76, the Directors unanimously approved
that the decision to use the market value of the Company's shares
for the determination of the issue price of the common and
preferred shares is reasonable, considering that the offering
being made is a public offering in the domestic market and, as
such, the book building procedures reflect the value at which
investors are willing to purchase shares. Therefore, this shall
be the most adequate method to determine the fair value of the
Shares to be issued by the Company, as it provides the Company
greater financial benefits according to the interest demonstrated
by investors in subscribing the Shares. Since the common shares
issued by the Company do not have enough liquidity and trading
volume for their trading price to be used to determine the issue
price of the common shares to be issued by the Company, such
issue price was settled at the same subscription price determined
for the preferred shares to be issued by the Company, according
to the terms approved hereby;

(b) To approve that the Company's capital will be increased from
R$1,525,239,629.31 (one billion, five hundred and twenty-five
million, two hundred and thirty-nine thousand, six hundred and
twenty-nine Reais and thirty-one cents) to R$2,122,735,389.71
(two billion, one hundred and twenty-two million, seven hundred
and thirty-five thousand, three hundred and eighty-nine Reais and
seventy-one cents), by means of the issue for public subscription
of 431,100,000 common shares and 422,465,372 preferred shares,
all such common shares and preferred shares being nominative and
with no par value. All proceeds obtained from the approved
capital increase will be incorporated into the Company's capital;

(c) To approve that the number of shares described in item (b)
above may not be increased after the beginning of the public
distribution of the Shares, as the coordinators of the public
distribution have not been granted the option to subscribe any
additional shares, due to the fact there has been no excess
demand for such subscription;

(d) To approve that the payment of the Shares will be made upon
subscription (i) in domestic currency; (ii) through the delivery
of debentures issued in the 2nd public issue of the Company's
debentures; (iii) through the capitalization of credits held by
shareholders as Advances for Future Capital Increases; or (iv)
through the capitalization of credits held by shareholders as
loans entered into between the shareholders and the Company;

(e) To approve that the subscription and public offer of shares
will be made on the over-the-counter market, pursuant to a regime
of differentiated procedures, in compliance with article 33 of
CVM Instruction # 13/80. In connection therewith, the Company's
shareholders, the holders of debentures of the 2nd public issue
of the Company's debentures, and individual or corporate
investors not considered institutional investors, have been
provided five working days (between July 22 and July 26 of 2002 -
such term having been extended to include August 1st and 2nd of
2002, according to the Press Release dated July 31, 2002) for
requesting reservations for the subscription of Shares, pursuant
to the conditions described in the Press Releases dated July 18,
2002 and July 31, 2002. The remaining preferred shares issued by
the Company, that were not reserved for subscription during the
reservation period, were set aside to be publicly offered to
institutional investors by the coordinators of the public
distribution of Shares;

(f) To establish that the Company will undertake another capital
increase, through the private issuance of shares for the issue
price of R$0.70 (seventy cents of real) per share, in order to
fulfill the balance of the firm commitments undertaken by the
shareholders pursuant to the terms of the Company's Protocol of
Recapitalization, immediately after the Extraordinary General
Meeting that will deliberate on the capital increase authorized
by the Company, to take place on August 16, 2002, as disclosed in
the Company's notice published on August 1, 2002; and

(g) To authorize the Company's management to take any and all
actions necessary to effect the offering of the Shares, as well
as to sign all documents required for that purpose, including the
Private Instrument of Coordination Agreement and Firm Guarantee
of Subscription and Placement of Common and Preferred Shares
Issued by Net Servi‡os de
Comunica‡ao S.A.

6. CLOSING: Having no further issues, the meeting was concluded,
and in connection therewith the present minutes were drawn up,
read and approved, and subsequently signed by all members of the
Board of Directors who were present. Sao Paulo, Date August 5,
2002. Signatures: Roberto Irineu Marinho - President; Stefan
Alexander - Secretary; Henri
Philippe Reichstul - Director; Mauro Murat¢rio Not - Director;
R“mulo de Mello Dias-Director; Nelson Pacheco Sirotsky -
Director; Ronnie Vaz Moreira - Director; Jorge Luiz de Barros
N¢brega - Director.

I certify that this is a free translation of the original minutes
drawn up in the Company's records.

Stefan Alexander
Secretary


TELESP CELULAR: Volatile Currency Trumps Sales for 2Q02 Net Loss
----------------------------------------------------------------
Brazil's largest mobile operator Telesp Celular saw its losses
balloon to BRL394 million (US$124 million) in the second-quarter
of 2002, nearly tripling the BRL133-million loss in the same
quarter last year.

Net losses for the quarter grew larger due to the volatile real
mixed with a high volume of foreign currency debts.

"The second quarter net profit of TCP was adversely affected by
the financial results associated with the high debt level of TCP
and Global Telecom and the depreciation of the real against the
dollar and the euro," the Company said Wednesday in its quarterly
earnings statement.

The poor results were due primarily to a 17.5% depreciation of
the real against the US dollar during the quarter. With around
15% of its BRL2.8 billion real debt unhedged, Telesp remains
highly vulnerable to currency swings. The Company's exposure
rises to BRL5.7 billion when debts from subsidiary Global Telecom
are included.

Net financing costs of Telesp's debts surged to BRL621 million
for 2Q02, from BRL171 million in the previous quarter. A BRL2.5-
billion capital increase, which was supposed to have materialized
during 2Q02, and would have gone to paying down debt, will now be
completed at the end of the third quarter, Telesp said.

According to Banco BBV telecoms equity analyst Roger Oey, the
share issue will have the effect of reducing the Company's
indebtedness, particularly in Global Telecom. A Telesp executive
confirmed in a conference call Tuesday the Company expects to
have 100% of its debt hedged following the capitalization
program.

Net revenues grew to BRL860.9 million (US$302.6 million), a 20.9%
increase compared to 2Q01 and 14.5% compared to 1Q02, as a result
of an increased client base and higher service usage.

EBITDA reached BRL352.9 million (US$124.1 million), a growth of
77.7% over 2Q01 and a 21.3% increase over 1Q02. The increase in
EBITDA was followed by an expansion in EBITDA margin to 41.0% in
2Q02 compared to 27.9% in 2Q01 and 38.7% in 1Q02, respectively.

Capital expenditures for this quarter were BRL72 million (US$25.3
million) totaling BRL106 million (US$37.3 million) in the
semester.

Telesp Celular indirectly holds 83% of the capital (49% of the
voting capital) of Global Telecom, the B-Band cellular operator
in the Santa Catarina and Parana states. The company is
controlled by Portugal Telecom (NYSE: PT).

CONTACT:  Telesp Celular Participacoes S.A.
          Edson Alves Menini, (55 11) 3059-7531
          Email: emenini@telespcelular.com.br




VARIG: Execs To Appeal Court Decision On Asset Freeze
-----------------------------------------------------
Brazil's Varig was expected to appeal Wednesday against a ruling
by a local judge that led to a freeze on the personal assets of
the troubled airline's top executives and controlling
shareholders, says an article released by the Financial Times.

The judge, on Friday, ordered to freeze their assets, citing "an
astronomical deficit, proven negligence of administrative duties
and abuse of power in the squandering of the shareholder equity."

Another judge this week upheld the earlier ruling but freed their
bank accounts and allowed the trading of Varig's shares to resume
on the local stock exchange after a suspension of several days.

The airlines' top executives continue to swim in hot water after
employees threatened Wednesday to go to court to have their
bosses removed amid allegations of mismanagement.

We will go to court to stop the disastrous management that has
led to the financial ruin of the Company," said Flavio Souza,
head of the pilots union (Apvar), which claims to represent 1,400
- or more than 90% - of Varig pilots, the FT reports.


VARIG: Board Approves Merger of Two Subsidiaries
------------------------------------------------
The board of Varig airline approved the merger of its two
subsidiaries in compliance with the conditions of BNDES National
Development Bank for a grant of a US$300 million. BNDES has also
told Varig to undertake corporate restructuring to qualify for
the loan.

The subsidiaries that will be joined are Varig Holding and VPTA
holding. VPTA holding controls Nordeste airlines operating in the
Northeast, and Rio Sul, which take shuttle flights in the
southern part of Brazil.

The three air companies together have about 38 percent of
Brazil's air travel market.

The Brazilian airline desperately needed the funds to increase
its working capital, reduce its US$850 million debt, and prevent
more losses from the company, which hasn't made a profit in four
years.

BNDES officials are expecting talks with creditors to last for
two months.  Despite the outlook, the funding agency disclosed,
it still hasn't prepared a specific rescue plan for the ailing
airline.

The airline has suffered numerous crises after the 1999 currency
devaluation and the September 11 attacks which affected
international flights in Brazil. It has so far reduced its
workforce by 10% and returned 20 leased planes in the span of
2001 and 2002. Brazil's oldest air carrier now has a fleet 71
planes.

Varig is scheduled to issue shares and debentures worth up to
US$500 million. The issue is expected to free the airline from
the hold of Rubem Berta Foundation of Varig employees, the
airline's current controlling entity.

BNDES is the chief federal agency for long-term funding which
aims at promoting the country's development. It has been a key
player in all phases of the Brazilian development effort since it
was created in 1952. It is a public company, fully-owned by the
Federal Government, and the country's most important source for
long-term financing.

CONTACT:  BNDES Main Office
          Av. Republica do Chile,
          100 Rio de Janeiro - RJ
          Phone: (021) 2277-7447/6978
          Home Page: http://www.bndes.gov.br/english/welcome.htm
          Contacts: Enterprise Information Center
          Main Office
          Av. Rep£blica do Chile,
          100 - 13§ andar - Sala 1301
          Tel.: (21)2277-8888
          Fax: (21) 2220-2615
          Email: contact@bndes.gov.br

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

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



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

ENERSIS: To Carry On Renegotiation Of Chilean Debts This Month
--------------------------------------------------------------
Enersis SA, South America's second-largest energy company, will
continue to renegotiate this month the US$500-million debt of its
Chilean subsidiaries with local banks, according to a report
released by local daily Estrategia.

The report suggests that the renegotiation could culminate in a
bond issue on the local market or the signing of a syndicated
loan.

Enersis, which has US$9.3 billion of debt, is already
renegotiating part of US$250 million of its Argentine units'
debt. Some of the debt is already overdue, said Juan Ignacio
Dominguez, the Company's deputy chief executive, in a recent
conference call with analysts.

The Company also has US$341 million in debt in Brazil and US$561
million in Chile coming due in less than a year.

Analysts believe that Enersis' move to refinance maturing debt
may lead it to deal with increasing costs and pressure on its
earnings this year.

Their financing costs will end up higher," said Mariela
Iturriaga, head of research at BBVA Corredores de Bolsa BHIF. She
said the Company will make about US$500 million in interest
payments on debt this year.

Enersis needs to cut spending and costs after revenue fell
because of economic slowdowns and declining currencies in Brazil,
Argentina and other Latin American countries in which it has
investments.

Second-quarter revenue at Enersis fell 26% to CLP548.4 billion
pesos from CLP745 billion a year ago after currency declines in
the countries in which it has businesses. Net income rose 14% to
CLP7.7 billion from CLP6.7 billion a year earlier because of one-
time gains related to changes in Chilean accounting rules.

A bankruptcy or government takeover at the Company's Argentine
units Hidroelectrica El Chocon SA and Edesur SA could trigger
early repayment of debt by Enersis. Failure to pay debt at the
two units wouldn't trigger repayment.

A default at Argentine unit Central Costanera SA could trigger
early repayment of Enersis' debt, though such a situation isn't
expected to happen according to the company's CEO. Central
Costanera is already negotiating with lenders, Dominguez said.

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

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682

          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl


MANQUEHUE NET: Strikes Debt Accord With Creditors
-------------------------------------------------
Chilean fixed line operator Manquehue Net reached an agreement
with creditors to restructure a US$30-million loan, reports
Business News Americas.

Sources revealed that the terms of the agreement allow Manquehue
Net to delay payment of the first US$2-million installment from
November this year to September 2004. Payments will run for five
years after the first installment, sources added.

Manquehue has some US$100 million in liabilities, including US$55
million in bonds and US$15 million in loans from equipment
vendors. The vendor debts are already restructured, according to
the sources, with a payment schedule in place that is expected to
conclude in June 2004.

Business News Americas also reports that pending the conclusion
of the agreement with the banks, Manquehue's shareholders plan to
boost the Company's cash position with a CLP2-billion (US$2.87
million) subordinated loan prior to August 30, which is the
deadline for offers to acquire or buy into the Company.

Manquehue's four shareholders are: Chilean gas company Metrogas
with 25.6%; local group Rabat with 21.2%; bankrupt US carrier
Williams Communications with 16.4%; and UK energy utility
National Grid with 30%.

But rumor has it that local shareholders are the most likely
contributors to the cash injection, since the foreign companies
have neither the available cash nor the desire to invest in the
Company.

Late last week Manquehue revealed that Rabat's board
representative, Jose Luis Rabat, would replace William's
representative Miller Williams as chairman.


TELEFONICA CTC: To Buy Back $53M In Bonds August 16
---------------------------------------------------
Compania de Telecomunicaciones de Chile S.A (CTC), which is 44%-
controlled by Spain's Telefonica SA, said it would exercise its
option to buy back US$53 million in bonds August 16, relates Dow
Jones Newswires.

According to CTC, should bondholders decide not to accept the
buyback offer, the bonds of the J-1 and J-2 series placed in the
market in 1998 won't pay interest or be readjusted.

Bondholders are represented by Chilean bank Banco Bice.

CTC reduced its debt to US$1.84 billion as of June 30, thanks to
the Company's debt-reduction plan.

CTC is Chile's largest telecommunications provider with 2.8
million lines in service and 1.7 million mobile subscribers as of
June 2002. The company provides local, long-distance, mobile, and
data services throughout the country.

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
===============

ENRON: Prosecutors Investigate Possible Bribery
-----------------------------------------------
Federal prosecutors in the US continue to probe Enron's demise.
According to a Wall Street Journal article, the prosecutors are
now investigating whether the Company has bribed foreign
government officials for years to win contracts for its
international operations.

The investigation includes Enron power or water projects in
Colombia, Bolivia, Panama and the Dominican Republic, as well as
a gas pipeline "being carved through the Bolivian jungle."

However, Enron has denied ever paying bribes, and said that it
has "a clear anticorruption policy prohibiting the payment,
solicitation and receipt of bribes in any form."

The previously undisclosed inquiry is examining Enron's efforts
to win foreign pipeline, power and water-privatization projects,
some reaching as far back as the mid-90s, according to the
newspaper. In some countries, projects were awarded to Enron
without competitive bidding, or assets were acquired at below-
market values, amid allegations by the World Bank and others of
government favoritism.

Enron filed for bankruptcy protection early December 2001 in the
largest Chapter 11 case ever after Dynegy Inc. abandoned its
US$23-billion takeover of the Houston-based energy trader. Enron
listed about US$40 billion of debt, including off-balance-sheet
project financing.

CONTACTS: Mark Palmer of Enron Corp., +1-713-853-4738
          Enron Corp.
          Investor Relations Dept.
          P.O. Box 1188, Suite 4926B
          Houston, TX 77251-1188
          (713) 853-3956
          Email: investor-relations@enron.com

          Enron Corp.
          Public Relations Dept.
          P.O. Box 1188, Suite 4712
          Houston, TX 77251-1188
          (713) 853-5670



=============
E C U A D O R
=============

PACIFICTEL: Scrambling to Cut Costs, Restructure
------------------------------------------------
Though it is in a tight financial condition, Ecuadorian fixed
line telephone services company Pacifictel spent US$4 million in
advertising over the last 7 months. The figure represents its
entire advertising budget for 2002. However, the Company says it
plans to slash by 25% advertising costs, as part of an ongoing
restructuring.

Moreover, Pacifictel will also tender a 4-year contract to the
publishing, printing and distribution of telephone directory to
two interested companies Edina and Carvajal group.

Pacifictel is facing financial difficulties and is restructuring.
The Company has to settle US$10 million in taxes. It owes US$38
million to Emetel, which is currently being liquidated, and US$14
million to other mobile communications companies.

Meanwhile, the telecom firm's new president, Andres Mendoza, said
that due to a poor financial outlook, the Company will
immediately hire an auditing company and focus on collecting
past-due bills. Receivable accounts total US$86.7 million, of
which some US$52 million is overdue.


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

AVANTEL: Economy Ministry Extends Ownership Structure Deadline
--------------------------------------------------------------
Avantel, Mexico's second-largest carrier, now has ample time to
conclude its ownership restructuring. The moves would bring it in
compliance with Mexican law, Mexico City daily el Economista
suggests. This after the country's economy ministry decided to
extend the deadline from August to the first week of September.

Under Mexican law, foreign owners can only have up to 49%
ownership in a fixed line operator. But in Avantel's case, the
phone company is now 100% foreign owned following the acquisition
by US-based Citigroup of Mexican financial group Banamex-Accival
in July last year. Banamex-Accival controlled Avantel with a 55%
stake. The remaining 45% of Avantel is held by WorldCom, another
foreign owner.

The Mexican government gave Citigroup a year after closing the
acquisition to resolve the carrier's ownership conundrum.

According to El Economista, one option under consideration is
Citigroup bringing together a group of local investors to take a
stake in Avantel. Another option is to float a portion of the
Company's shares on the Mexican stock exchange.

However, the attractiveness and potential of both options are
limited by WorldCom's bankruptcy.

A third option would be to request another postponement, given
the extraordinary situation presented by WorldCom's bankruptcy.

Avantel provides local telephony, long distance and Internet
services in Mexico.

CONTACT:  WORLDCOM
          500 Clinton Center Drive
          Clinton, MS 39056
          1-877-624-9266
          Phone: (601) 460-5600
          Fax: (601) 460-8350
          E-mail: http://www.worldcom.com/
          Contact:
          John Sidgmore, President and CEO

          AVANTEL SERVICIOS LOCALES, S.A. (AVANTEL LOCAL)
          Reforma No. 265, 6o piso, Col.
          Cuauhtemoc, 06500, M,xico, D.F.
          Tel: 5242-1004
          Fax: 5242-1060
          Home Page: www.avantel.com.mx/


CFE: Financial Difficulties Expected To Deepen
----------------------------------------------
The Federal Electricity Commission (CFE) is expected to deal with
worsening financial problems next year, suggests Mexico City
daily el Economista.  Repayments of the debt contracted under the
Deferred Investment Projects in Spending Registers (Pidiregas)
will increase from MXN7 billion (US$719 million) to MXN15 billion
(US$1.54 billion), said Senator Juan Jose Rodriguez Prats.

After a meeting between National Action Party (PAN) senators and
the head of the CFE, Alfredo El”as Ayub, Rodr”guez Prats said
that the state-owned company had financial requirements for
around US$5 billion per year. The meeting also touched on the
need for investment in electricity generation and transmission
lines.

Meanwhile, CFE is planning to construct 61 electricity generation
projects to provide a capacity of 28,862 megawatts from 2002 to
2011, revealed company director Alfredo El”as.

In his report to the state-owned company's board, El”as said that
of those projects seven are already operating, 10 are under
construction, two have been contracted, four are in the bidding
process and another six will be put out for bids this year. The
other 32 will be put up for bid from 2003 to 2007. This way, the
CFE will reach a capacity of 62,385 megawatts by 2011.

The Company's client base is expected to grow by 900,000 per year
on average in the period.


GRUPO BITAL: SCH to Sell 30% Stake for the Right Price
------------------------------------------------------
Banco Santander Central Hispano (SCH) SA is selling its shares in
Grupo Financiero Bital rather than buying some. Marco Martinez
Gavica, managing director of Banco Santander Mexicano, has
confirmed SCH is willing to offer its 30 percent stake in Bital
for a reasonable offer.

Analysts had indeed predicted Santander to forego its hold in
Bital after it declined to bid for Bital's share last month.

Yet, Martinez, in an interview with newspaper El Universal, said
Spain's largest bank may also consider bidding in the future.

Martinez said the company "believe(s) it is a good thing to sell
a financial investment at a good price."  It may however wait for
the recapitalization of Bital to be completed before it makes the
final move.

At the end of July, ING Groep NV has revealed interest to buy a
19.2 pct stake in Banco Bital for 200 mln usd from Grupo
Financiero Bital.  The deal was expected to be completed at the
end of the fourth quarter.

Grupo Financiero Bital SA is Mexico's fifth biggest bank.

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.
          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page: http://www.bsch.es
          Contacts:
          Ana P. Bot”n, Chairman, Banesto
          Emilio Bot”n-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

          ING GROEP N.V.
          Strawinskylaan 2631
          1077 ZZ Amsterdam,
          The Netherlands
          Phone: +31-20-541-54-11
          Fax: +31-20-541-54-44
          Home Page: http://www.ing.com
          Contacts:
          Ewald Kist, Chairman
          Cees Maas, Chief Financial Officer


GRUPO IUSACELL: Fitch Assigns 'CCC+' to $350M Senior Notes
----------------------------------------------------------
Fitch Ratings has assigned a 'CCC+', Rating Outlook Stable to
Grupo Iusacell, S.A. de C.V.'s (Holdco) US$350 million senior
notes due July 2006. In addition, Fitch has assigned a 'B',
Rating Outlook Stable to Grupo Iusacell Celular, S.A. de C.V.'s
(Opco) US$150 million senior notes due July 2004. Collectively
known as Iusacell.

The ratings reflect the company's business and financial
position. The company competes in the Mexican wireless
telecommunication market with 2.2 million subscribers and a 9.0%
market share. The company is a distant second to Telcel, which
has a 77% market share and over 18.8 million subscribers.
Iusacell's competitive position remains challenged given Telcel's
nationwide network as well as the expanded presence of Telefonica
through its recent acquisition of Pegaso.

The financial flexibility of the company remains low with
adjusted debt-to-EBITDA of approximately 7.0 times (x) and
interest coverages of 1.9x. Debt maturities of less than a year
are minimal, mitigating immediate liquidity and refinancing
concerns. The ratings incorporate structural subordination
between the operating and holding company levels, and restrictive
covenants, which provide additional support for operating company
debt.

Iusacell's financial results continue to soften with declining
year over year growth rates and declines with the most recent
interim comparisons, and have been pressured by the slowdown in
the Mexican economy. The company continues to experience lower
traffic and lower average revenue per user (ARPUs) for both
prepaid and postpaid segments. Slight decreases in the higher
margin postpaid subscriber base and the higher percentage of
postpaid subscribers to total subscribers, albeit low, versus its
competitors increase its exposure to postpaid subscriber erosion.

Iusacell has implemented cost reduction measures, and introduced
innovative product offerings in an attempt to increase traffic
and improve results. In addition, the company announced that it
will lower projected 2002 capital expenditures by 49% from US$250
million to US$130 million to boost cash flow availability; lower
capital expenditures may constrain the company's ability to
maintain subscriber growth levels amid growing competition.

The company faces no significant debt maturities until 2004. Cash
interest payments will increase substantially next year as pre-
funded interest payments on the 14.25%, US$350 million '06 notes
are exhausted by December 2002. The incremental cash interest
expense places an additional cash flow burden to meet the US$24.9
million of associated semiannual interest payments. The company
should be able to service interest expense during 2003.

In 2004, the company faces approximately US$240 million of debt
maturities, which consists of the 10.0%, US$150 million '04 notes
and US$90 million of a US$267 million syndicated bank loan.
Refinancing of the US$150 million '04 notes would possibly allow
for debt amortization of the senior secured syndicated loan to be
paid on its scheduled basis but cash flow available would likely
be tight. The company's ability to refinance the '04s will likely
require improved market condition versus today's market
conditions. Longer term, the company may likely require
additional external funding to execute its long-term business
strategy.

Grupo Iusacell, S.A. de C.V. (Iusacell) is a holding company,
which controls several telecommunications assets in Mexico. The
company's primary asset is Grupo Iusacell Celular, S.A. de C.V.
Currently, the company is the second largest wireless operator in
Mexico with 2.2 million subscribers and has 90 million covered
POPs. Verizon Communications has managerial control of Iusacell
through its 39.4% interest, Vodafone PLC holds 34.5% and the
remaining 26.1% is held by the public.


CONTACT:  FITCH RATINGS
          Randy Alvarado
          Phone: 1-312-368-3117
          Daniel R. Kastholm
          Phone: 1-312-368-2070
          Victor Villareal
          Phone: +011 5281 8335-7239



=================
N I C A R A G U A
=================

ENRON: Presents New Guarantee For Hidrogesa Bid
-----------------------------------------------
Enron de Nicaragua, a subsidiary of bankrupt US power company
Enron, submitted an amended guarantee to the committee of
Nicaragua's state power company Enel. The official committee is
responsible for awarding Enel's 100MW Hidrogesa power generation
unit to a private buyer, Business News Americas reports, citing
local daily La Prensa.

The committee had awarded Hidrogesa to US Coastal despite having
offered US$41.2 million, some US$200,000 less than Enron de
Nicaragua's bid, after it found an irregularity in EDN's bidding
documents.

But on July 31, the national comptroller overthrew the
committee's decision saying that the committee should have
declared the tender process void after finding the irregularity
in EDN's bidding documents, instead of awarding the tender to
Coastal.

"We have officially handed in the new guarantee in which we have
amended any error," EDN CEO Cesar Zamora said. "We believe the
best thing is that the tender is done again so that everything is
transparent," he added.

Committee lawyers are still analyzing the comptroller's ruling,
the paper said.

Enron Nicaragua has come under fire in Nicaragua due to its links
to bankrupt US company Enron. However, Enel executive president
Mario Montenegro said Enron Nicaragua, like other Latin
subsidiaries, is independent of the US' Enron. Nicaragua's
industries chamber (Cadin) president Gabriel Pasos said there was
nothing to fear in Enron Nicaragua winning the Hidrogesa award,
because it has nothing to do with Enron International.

Most shares of Enron Nicaragua are in the hands of Central
American investors, Pasos said, adding that although Enron
International has invested in Nicaragua, it does not own a
majority of shares.



=============
U R U G U A Y
=============

BANCO COMERCIAL: Fitch Downgrades Ratings To 'DD'
-------------------------------------------------
Fitch Ratings has downgraded the long term foreign currency
rating of Uruguay's Banco Comercial to 'DD' from 'CCC', following
the suspension of the bank's operations for 30 days by the
Central Bank yesterday, while the bank holiday was lifted and
most other banks reopened. Banco Comericial's long term foreign
currency rating has been removed from Rating Watch Negative where
it was placed on May 28, 2002. The Central Bank intends to create
mechanisms to allow the return of demand and savings deposits,
although these have not yet been put in place. At the very least,
however, the suspension will create delays in payment of other
obligations, including time deposits, and will likely result in
some form of restructuring.

Banco Comercial is the largest privately held bank in Uruguay.
Its controlling shareholders consist of JPMorgan Chase, Credit
Suisse First Boston, and Dresdner Bank Lateinamerika, while the
Central Bank gained a non-voting participation in the bank
following a capitalization earlier in the year.

CONTACT:  FITCH RATINGS
          Peter Shaw
          Phone: 212/908-0553
          Ricardo Chaves
          Phone: 212/908-0606
          Linda Hammel
          Phone: 212/908-0303 (New York)
          Lorna Martin
          Phone: 54-11-4327-2444x31
          Ana Gavuzzo
          Phone: 54-11-4327-2444x73 (Buenos Aires)


BANCO COMERCIAL: S&P Lowers Ratings to 'D'
------------------------------------------
Standard & Poor's Ratings Services said Monday that it lowered
its ratings on Banco Comercial S.A., a leading Uruguayan
financial institution, to 'D' after the decision of the Uruguayan
Central Bank to suspend the institution for 30 days at the same
time that it lifted a week-long banking holiday for the whole
financial system.

"The government also communicated that demand deposits will be
returned, though it remains uncertain if some restrictions will
apply, given the suspension," said credit analyst Gabriel
Caracciolo.

At the same time, all of the bank's senior unsecured notes are
downgraded to double-'C', given that the suspension indicates a
high likelihood that the bank will be unable to pay down either
interest or principal owed.

Credit Analyst: Gabriel Caracciolo, Buenos Aires (54) 114-891-
2100; Carina Lopez, Buenos Aires (54) 11-4891-2118

CONTACT:  BANCO COMERCIAL
          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page: www.bancocomercial.com.uy

          J.P. MORGAN CHASE & CO.
          270 Park Avenue
          New York, NY 10017
          Phone: (212) 270-6000
          Fax: (212) 270-1648
          Home Page: http://www.jpmorganchase.com/
          Contact:
          William Harrison, Jr., Chairman and CEO
          Dina Dublon, Chief Financial Officer
          Geoffrey Boisi, Co-CEO of the Investment Bank

          Investor Relations
          Phone: (1-212) 270-6000

          DRESDNER BANK AG
          Jrgen-Ponto-Platz 1
          D-60301 Frankfurt/Main,
          Germany
          Phone: +49-(0) 69/2 63-0
          Fax: General enquiries
               +49-(0) 69/2 63-48 31
               +49-(0) 69/2 63-40 04
          Home Page: http://www.dresdner-bank.de/
          Contact:
          Dr. Jur. Henning Schulte-Noelle
          Chairman of the Supervisory Board of Dresdner Bank AG

          Uwe Plucinski
          Deputy Chairman of the Supervisory Boa

          CREDIT SUISSE FIRST BOSTON
          New York-Headquarters
          11 Madison Ave.
          New York, NY 10010
          Phone: 212-325-2000
          Fax: 212-325-8249
          Home Page: http://www.csfb.com
          Contacts:
          Joe L. Roby, Senior Advisor
          John J. Mack, Vice Chairman and CEO
          Richard E. Thornburgh, Vice Chairman, Executive Board,
                                 CFO and Head of Support


BANCO VELOX: Interpol Arrests Uruguayan Banker
----------------------------------------------
Uruguayan banking magnate Jose Peirano, one of the persons
involved in the fraud case related to Velox's Banco Montevideo,
has already been taken into custody by the Interpool, AFX
reports.

Peirano's brothers, Dante and Jorge, have already appeared before
the court handling the case brought against the bank's board by
account holders. Three former directors of Banco de Montevideo
are facing the charges.

The defendants are charged of illegally transferring money from
the bank to the Trade Commerce Bank of the Cayman Islands.

Banco de Montevideo, together with Caja Obrera, belongs to Grupo
Velox, a financial conglomerate with holdings in Argentina,
Paraguay and the Cayman Islands.

The government seized both banks and is planning to liquidate
them, according to Uruguayan Economy Minister Alejandro
Atchugarry.

Velox was a key finance player in the region before the Argentine
crisis in December.

Jose and another of the Peirano brothers, Juan, are also involved
in irregularities concerning Paraguay's Banco Aleman.



               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *