TCRLA_Public/020827.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

           Tuesday, August 27, 2002, Vol. 3, Issue 169

                           Headlines


A R G E N T I N A


EASA: Informs Bourse of Plan To Renegotiate $92.2M Debt
SOLDATI GROUP: Takes Action To Restructure Ailing Business
TELECOM ARGENTINA: Registers Net Loss In 1H02
TGN: Reports $28M Net Loss In 1H02


B E R M U D A

FOSTER WHEELER: Director, Senior Vice President Steps Down


B R A Z I L

ANDERSEN: KPMG Consulting Closes Brazil, Peru Transactions
ELETROPAULO / KLABIN: Petitioning Wallstreet for Credit Lines
CEMIG: Governor To Approve Power Plant Construction
CSN: BNDES Hires Outside Legal Counsel To Evaluate Corus Deal
CSN: Salomon Smith Maintains "Outperform" Recommendation

ELETROPAULO METROPOLITANA: S&P Cuts Corporate Credit Ratings
TEKA: Strikes Agreement With Creditors
TELESP CELULAR: Increasing Capital Through Private Placement
VARIG: Beset With Uruguayan Unit's Woes


M E X I C O

BITAL: ING Ditches Plan To Inject Capital After HSBC Proposal
BITAL: Spanish Bank, Investor To Sell 3% Stake To HSBC
CFE: Moody's Upgrades Ratings of Five Power Projects
GRUPO MIFEL: Talks With Mexican Banker Flop
SANLUIS: BMV Halts Trading of Shares Over Price Volatility


P A R A G U A Y

BANCO ALEMAN: Central Bank Delays Liquidation


P E R U

EMPRESAS LUCCHETTI: Faces Imminent Closure
SIMSA: Refinancing Plan Gains Approval From Creditors


T R I N I D A D   &   T O B A G O

BWIA: On the Brink of Collapse

     - - - - - - - - - -


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

EASA: Informs Bourse of Plan To Renegotiate $92.2M Debt
-------------------------------------------------------
Argentine energy holding Electricidad Argentina S.A. (EASA)
issued an official statement to the Buenos Aires stock market
disclosing its plan to renegotiate US$92.2 million of debt.
In a Business News Americas report, EASA spokesperson Yves
Desrousseaux revealed that the Company's debt is mostly US-dollar
denominated.

"Due to the devaluation of the Argentine peso, which has
negatively affected many energy sector companies, Edenor has been
unable to meet some of its interest payments this year",
Desrousseaux explained.

Easa owns a majority stake in electricity distributor Edenor,
which has over 2.2 million customers in the northern part of
Buenos Aires.

"We can't do anything until the government makes a decision about
raising tariffs", Desrousseaux said, adding that "Edenor has met
recently with its creditors and we are currently in
negotiations".

Edenor has been seeking to raise power tariffs to stave off an
impending bankruptcy. Edenor managing director Henri Ducre has
admitted Edenor could go bankrupt unless it is allowed to hike
power tariffs to offset the effects of inflation and the
depreciation of the peso.

In ten years of concession, Edenor made US$450 million in profits
on US$1.165 billion in investments. Its debt now totals US$515
million.

Edenor expects the government to announce rate increases soon,
enabling the distributor to restructure its debt to new cash
flow. However, the context is highly unstable and negotiations
with the government could drag on, Desrousseaux added.

To see EASA's latest financial info:
http://bankrupt.com/misc/Electricidad_Argentina.htm

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mai: to ofitel@edenor.com.ar
          Home Page: http://www.edenor.com.ar
          Contact:
          Riuttort Marc, Treasurer
          Fax: (54 1) 348-2149


SOLDATI GROUP: Takes Action To Restructure Ailing Business
-----------------------------------------------------------
The Soldati group is moving to solve debt problem through asset
sales, Estrategia reports. The debt, which as of the end of 2001
reached US$1.05 billion, mainly comes from two businesses of oil
and entertainment conglomerate Sociedad Comercial del Plata
(SCP), tourism train Tren de la Costa and entertainment park
Parque de las Costa. The businesses together represented a
US$400-million investment.

The assets sold were shares in private companies and oil
business, as well as a construction company and an agro-chemical
distribution company. The Group lost all its shares in companies
that were privatized in the nineties.

SCP filed for protection in September of 2000 following a lawsuit
filed by Reef Exploration Inc., as well as a debt service default
on a US$25-million bond issue April 1999.

The conglomerate is principally a holding company. It produces
petroleum gas, liquefied gas and crude oil; explores and produces
hydrocarbons; constructs and operates gas pipelines; and produces
and transports natural gas. The Group also provides passenger
transportation; operates parks; provides lottery services;
constructs, operates and provides equipment for casinos.
In addition, the Group provides cargo transportation; develops
and operates wireless data transmission system, Internet network
connection and value added services; sells lots and miscellaneous
land; and invests in securities.

CONTACT:  SOCIEDAD COMERCIAL DEL PLATA
          1056 Reconquista
          Buenos Aires Capital Federal
          Argentina
          Phone: +54 11 4311 6854
          Contact:
          Santiago Soldati, Chairman
          Matias M Brea, Vice Chairman


TELECOM ARGENTINA: Registers Net Loss In 1H02
---------------------------------------------
Telecom Argentina Stet-France Telecom SA (TEO) posted a net loss
in the first half of the year as well as earnings drop due to
recession and currency devaluation, Dow Jones reports citing the
company's official statement.

Telecom disclosed a net loss of ARS4.1 billion (US$1.139 billion)
in the first six months of the year versus a net income of ARS80
million for the same period last year. The company also posted
earnings per share loss of ARS4.16 during the first half of 2002
versus earnings of ARS0.08 for the same period in 2001. Earnings
per ADR for the first six months of 2001 were ARS11.46.

The company has been affected by the ongoing crisis in Argentina
as a result of the country's default on US$141 public debt and
currency devaluation. The peso has lost around 70% since January.

Revenues of the second-largest telephone company in Argentina
have also been affected by the "pesofication" of rates, which
converted dollar-denominated contracts to peso-denominated ones
in 1-to-1 ratio.

Meanwhile, Telecom suspended payment of management tax to France
Telecom and Telecom Italia, which together forms Nortel Inversora
SA and owns 54.7 percent of Telecom.  The tax is 1.25 percent of
Telecom's turnover. It is paid in addition to payment for
services, and amounts to about ARS100 million (US$27.8 million) a
year. Last year, the amount totaled ARS105 million (indexed to
the dollar) (US$29 million).

The payment of the tax has been temporarily suspended until the
end of this year.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA (TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com


TGN: Reports $28M Net Loss In 1H02
----------------------------------
Argentine natural gas transport company TGN submitted financial
results for the first-half of 2002 to the Buenos Aires stock
exchange. Business News Americas reports the company's numbers
show a net loss of ARS103 million (US$28.5 million). That
compares to a net profit of US$28.3 million in the equivalent
period last year.

TGN did not report any extraordinary charges or earnings during
the first-half of this year, but stated it ended with ARS1.15
billion in equity.

TGN, which holds a 35-year license to operate northern
Argentina's gas transport system, has been severely hit by the
measures taken by the government, particularly the pesofication
of tariffs, the free-floating of the peso and debt that is
financed in dollars. The Company defaulted on various interest
payments during the first half of the year but said it would
treat all creditors equally, allowing for 27% of interest
payments to be met over the next two years.

The current measures are temporary until rate increases for TGN
and other utilities are approved. However, expectations are such
changes won't be likely until after the May 2003 presidential
elections.

TGN faces some US$50 million interest payments in the next four
quarters, and according to company estimates, quarterly EBITDA
will be some US$15 million compared to the US$46 million posted
in 2001.

CONTACT:  TRANSPORTADORA DE GAS DEL NORTE (TGN)
          Don Bosco 3672, (C120ABF) Buenos Aires, Argentina.
          Phone: (+54 11) 4959-2000
          Fax: (+54 11) 4959-2242
          Home Page: www.tgn.com.ar/



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

FOSTER WHEELER: Director, Senior Vice President Steps Down
----------------------------------------------------------
Foster Wheeler Ltd. (NYSE:FWC) announced Friday that James E.
Schessler, member of the board of directors and senior vice
president, human resources and administration, has left the
company to pursue other interests.

In keeping with its initiative to reduce corporate overhead
expenses, the company does not intend to appoint a new corporate
officer to oversee its human resources and administrative
activities. The company is developing a reorganization plan for
the management of these functions.

Schessler joined the company's headquarters in 1977 as director
of personnel, becoming vice president of personnel and industrial
relations in 1988, and vice president of human resources and
administration in 1994. He was appointed senior vice president
and elected a member of the company's board of directors in May
2001. Earlier in his career he was plant personnel manager at
Foster Wheeler's manufacturing facility in Dansville, N.Y., and
personnel manager at its Houston engineering center.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering, construction,
manufacturing, project development and management, research,
plant operation and environmental services. The corporation is
based in Hamilton, Bermuda, and its operational headquarters are
in Clinton, N.J. For more information about Foster Wheeler, visit
our World Wide Web site at www.fwc.com.

CONTACT:  Foster Wheeler Ltd.
          Phone: 908/730-4000



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

ANDERSEN: KPMG Consulting Closes Brazil, Peru Transactions
----------------------------------------------------------
KPMG Consulting, Inc., (Nasdaq: KCIN), one of the world's largest
business consulting and systems integration firms, on Friday
announced that is has closed transactions to hire partners and
staff from the Andersen Business Consulting unit in Brazil, and
to acquire the Andersen Business Consulting unit in Peru. The
terms of the transactions were not disclosed.

The transactions have added approximately 70 people, including
two former Andersen partners, to KPMG Consulting's operations in
both countries. The transactions also enhance KPMG Consulting's
strength in shared services, change management, and SAP
enterprise software skills in Peru, as well as increased
capabilities in finance-related solutions, program management,
and experience in the banking and telecommunications business
segments in Brazil.

"These transactions enhance our ability to offer industry-
tailored systems integration solutions," said Robin Palmer,
executive vice president, Latin America Region, KPMG Consulting.
"We have extended our depth of coverage in our key industries and
we have acquired some exceptional talent. Friday's announcement
also reinforces our commitment to the Latin American market --
particularly in Brazil, which represents one of our most
important strategic markets -- and positions us as one of the
leaders in providing business consulting and systems integration
services in the region."

Mr. Palmer added that KPMG Consulting recently unveiled its new
state-of- the-art consulting office in Sao Paolo, underscoring
the company's momentum in the Brazilian market.

About KPMG Consulting, Inc.

KPMG Consulting, Inc. (Nasdaq: KCIN), based in McLean, Virginia,
is one of the world's largest business consulting and systems
integration firms with approximately US $2.4 billion in annual
revenues for the fiscal year ended June 30, 2002. We currently
employ approximately 15,000 employees around the world providing
business and technology strategy, systems design and
architecture, applications implementation, network and systems
integration and managed services. We help our clients capitalize
on information technology to achieve their business objectives
through real-time access to important information and improved
business systems integration. Working with market leading
hardware and software companies, we serve more than 2,100
clients, including Global 2000 companies, small and medium-sized
businesses, government agencies and other organizations. Our
business and technology solutions are tailored to meet the
specific needs of the industries we serve and are delivered
through global industry-focused lines of business, including
communications and content companies, consumer and industrial
markets, financial services industries, high technology companies
and federal, state and local governments.

For more information about KPMG Consulting, Inc., visit the web
site at http://www.kpmgconsulting.com. KPMG Consulting, Inc. is
an independent consulting company, no longer affiliated with KPMG
LLP, the tax and audit firm.

CONTACT:  KPMG CONSULTING, INC.
          Ken Neal
          Phone: +1-212-954-2462
          E-mail: kneal@kpmg.com

          For Investors:
          Deborah Mandeville
          Phone: +1-617-988-1628
          E-mail: dmandeville@kpmg.com


ELETROPAULO / KLABIN: Petitioning Wallstreet for Credit Lines
-------------------------------------------------------------
Brazil's top economic officials are scheduled to go to New York
this week in order to lobby for continued credit lines to the
country, says Dow Jones.

The move comes amid a struggle by local companies to fulfill
their payment obligations, as foreign investors continue shaking
their heads at the idea of renewing even relatively stable short-
term credit.

Investors are skeptical about extending credit any longer due to
the country's debt burden and October presidential elections,
despite news unveiled earlier this month of a US$30 billion
International Monetary Fund loan.

"The lack of (credit) lines is a problem for companies," said
Luciana Massaad, an analyst at ING Barings in Brazil.

The companies most affected happen to have payment deadlines
coming up in the next couple months; around $10 billion in
international debt held by companies comes due between July and
December. The healthiest companies, such as Gerdau, are now
forced to tap into their cash reserves to repay these debts.

Gerdau used cash to repay US$140 million in commercial paper that
came due Wednesday. Gerdau, one of Brazil's stronger companies,
says it has many ways to meet another US$210 million payment
deadline this fall.

However, raising new debt would be an "expensive" option,
according to a source from the company.

Meanwhile, financially embattled companies, such as Eletropaulo
Metroplitana and Klabin SA, are having a hard time dealing with
the lack of credits.

Eletropaulo, Metropolitana, a unit of US-based giant company AES
Corp., barely managed to repay US$120 million of commercial paper
that came due on Wednesday. Investors had refused to renew the
debt, but Brazil's National Development Bank, or BNDES, finally
came to the rescue on Wednesday with BRL402 million, or about
US$130 million, in aid as part of an agreement to compensate
utilities for losses related to a power rationing program last
year.

Eletropaulo, which is Brazil's largest electricity distributor,
has around US$700 million of other debt coming due later this
year.

Packaging and paper company Klabin, on the other hand, has
relatively less cash on reserve than most exporters, only around
US$38 million. Klabin must meet payments on nearly US$540 million
of debt in the next twelve months, most of which is trade
finance-related. Klabin has tried raising new money in recent
months by selling local bonds or doing a structured trade deal,
but so far with no success.

"We are waiting for trade finance lines to come back," a source
from Klabin said.

To see Klabin's latest financial statements:
http://bankrupt.com/misc/Klabin.pdf

CONTACT:  INDUSTRIAS KLABIN
          Ronald Seckelmann, Financial and IR Director
          Luiz Marciano Candalaft, IR Manager
          Tel: (55 11) 3225-4045
          Email: marciano@klabin.com.br


CEMIG: Governor To Approve Power Plant Construction
---------------------------------------------------
Companhia Energetica de Minas Gerais (Cemig) and waterworks
company Copasa expected state governor Itamar Franco to sign
early this week an authorization to begin construction of two
power plants totaling 36MW, Business News Americas reports,
citing a Cemig statement.

Cemig and Copasa established a joint venture in July this year to
build the US$5-million, 13MW Barreiro cogeneration thermoelectric
plant. The joint venture, named Central Termeletrica de Cogeracao
(CTC), is 51% owned by Copasa and 49% by Cemig.

Previously, Cemig announced it has signed a 20-year contract to
build the plant at the facilities of steel tube manufacturer
Vallourec & Mannesmann Tubes (V&M do Brasil), located in the
Barreiro district of state capital Belo Horizonte.

Cemig and Copasa will provide investments, while Cemig will
operate and maintain the plant. V&M will supply gas from its
steel plant, which is currently flared. Construction began in
April 2002 and is scheduled for completion by July 2003. The
plant will supply electricity to 108,000 people.

Just recently, Cemig failed in its plans to auction 600MW of
power after investors shunned the process due to a very high
price.

According to a Business News Americas, Cemig reportedly charged a
minimum of 75/MWh for two-year contracts and 78/MWh for four-year
contracts. The only silver lining was that the electronic auction
platform provided by Banco do Brasil worked fine, Cemig said, and
will be used for further auctions later this year.

CONTACT:  COMPANHIA ENERGETICA DE MINAS GERAIS
          Luiz Fernando Rolla, Investor Relations
          Phone:  + 011-5531-299-3930
          Fax: + 011-5531-299-3933
          E-mail: CONTACT:  CEMIG
          Avenida Barbacena, 1200
          Sto Agostinho  30123-970 Belo Horizonte - MG
          Brazil
          Phone   +55 31 299 4900
          Home Page http://www.cemig.com.br
          Contacts:
          Djalma Bastos De Morais, Chairman
          Geraldo De Oliveira Faria, Vice Chairman
          Cristiano Correa De Barros, Finance Director


CSN: BNDES Hires Outside Legal Counsel To Evaluate Corus Deal
-------------------------------------------------------------
The intricacy of the proposed merger of Rio de Janeiro-based flat
steel CSN and Anglo-Dutch group Corus prompted Brazil's state-
owned development bank BNDES to seek evaluation of the deal
announced last month. BNDES will hold a tender process to select
an outside law firm to do the evaluation.

The planned merger between CSN and Corus needs the approval of
BNDES, as it is a creditor of CSN and of its controller, the
Vicunha group. BNDES became a creditor of Vicunha group after the
latter put up CSN shares as collateral to obtain a BRL1.5-billion
real loan from the bank in March 2001. The loan was used to
unwind a shareholder cross-ownership between the steel maker and
Rio-based mining giant CVRD. The group still owes BNDES US$600
million.

The chief executives of the two steel companies, Benjamin
Steinbruch (CSN) and Tony Pedder (Corus), in a meeting with bank
officials, promised to supply BNDES with all the details of the
merger within two months.

"It was an introductory meeting. We did not enter into details
about the operation," Pedder said.

Some market observers and legal specialists still believe the
"merger" is actually an acquisition of CSN by Corus, but Pedder
denied the transaction was a "disguised takeover."

Steinbruch said BNDES should approve the merger by the end of the
first-half of 2003. If both creditor banks and minority
shareholders approve the operation, CSN will end up being the
largest shareholder in Corus with 37.6% of the new company.

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

CONTACT:  Jose Marcos Treiger
          CSN - Investor Relations General Manager
          Tel. +55 21 2586 1442
          Email: jmtreiger@csn.com.br
          URL: www.csn.com.br

          Isabel Viera
          Thomson Financial
          Tel. +1 (212) 701-1823
          Email: isabel.vieira@tfn.com
          URL: www.thomsonfinancial.com

          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. Repoblica do Chile,
          100 - 13  andar - Sala 1301
          Tel.: (21)2277-8888
          Fax: (21) 2220-2615
          Email: contact@bndes.gov.br


CSN: Salomon Smith Maintains "Outperform" Recommendation
--------------------------------------------------------
Salomon Smith Barney continues with its "outperform"
recommendation for Rio de Janeiro-based integrated steelmaker
CSN, relates Business News Americas.

CSN, according to Salomon Smith analyst Jennifer Carrou, is a
high-risk company. The outperform rating means she predicts a
total rate of return on capital of 10-25% over the next 12 to 18
months.

Just recently, Fitch Ratings placed CSN's `B+' foreign currency
rating on Rating Watch Negative following the placement of
Brazil's sovereign foreign and local currency ratings on Rating
Watch Negative on August 1, 2002.

Fitch placed the rating on Rating Watch Negative on concern about
the increased country risk and unfavorable market conditions for
the Company as it faces tighter liquidity and greater refinancing
risk under the current volatile environment.

CONTACT:  SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller


ELETROPAULO METROPOLITANA: S&P Cuts Corporate Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services said Friday that it lowered
its global scale foreign currency and local currency corporate
credit ratings on Brazilian utility Eletropaulo Metropolitana
Eletricidade de Sao Paulo S.A. to double-'C' from triple-'C'. The
ratings on the Brazil National scale were also lowered to 'brCC'
from 'brCCC'. The downgrade is based on Standard & Poor's
perception that Eletropaulo has already used available sources of
liquidity and will face increasing challenges to amortize the
remaining debt coming due in 2002.

The ratings remain on CreditWatch with negative implications.
Eletropaulo has total debt of $1.6 billion, including the debt
held at holding companies.

"Eletropaulo reached an agreement yesterday with BNDES securing
the borrowing of some $125 million (Brazilian Real 400 million)
that was due to compensate Eletropaulo from losses that
originated with the recent rationing program," Standard & Poor's
credit analyst Milena Zaniboni said. "These resources have
assured the payment of the $120 million promissory notes that was
due on August 21. However, even though Eletropaulo is likely to
reach an agreement with creditors to extend the maturity of the
syndicated loan of $225 million due on Aug.26, financial
flexibility is even tighter under worsen market conditions,
resulting in the high likelihood of nonpayment of the remaining
maturities of 2002."

Standard & Poor's said the CreditWatch listing will be resolved
if Eletropaulo presents conditions to repay amortizations that
are coming due, and succeeds in its negotiations with creditors.
Through this, Standard & Poor's would be able to analyze the
company's cash flow and coverage ratios, and consider the
resulting amortization schedule.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


TEKA: Strikes Agreement With Creditors
--------------------------------------
Teka Tecelagem Juehnrich, a Brazilian textile products
manufacturer, reached an agreement with the investors of its
third debenture issuance (in 1996) worth BRL25 million, O Estado
de Sao Paulo reports without revealing the terms of the
agreement. The Company did not pay the installments of the debt
due in January and June.

TEKA - Tecelagem Juehnrich S.A. is the largest manufacturer of
bed, table and bathroom textile products in Latin America.  The
Group's principal activities are: marketing and sale of table,
bath and bed linens, such as bedspreads, bed sets, dishcloths,
tablecloths, towels, bathrobes and other related products. The
Group has five factories located in Blumenau, Indaial, Sumare,
Artur Nogueira and Passos with a production capacity around 28
thousand tons per year. The Company exports its products to 40
countries including EU and the United States. Exportation
represents 32% of 2001 Group's revenues.


CONTACT:  TEKA - Tecelagem Kuehnrich S.A.
          Rua Paulo Kuehnrich, 68
          Itoupava Norte  89052-900 Blumenau - SC
          Brazil
          Phone: +55 47 321-5000
          Home Page: http://www.teka.com.br
          Contact: Rolf Kuehnrich, Chairman
          Frederico Kuehnrich Neto, Vice Chairman
          Dieter G. Wachholz, Finance Director


TELESP CELULAR: Increasing Capital Through Private Placement
------------------------------------------------------------
Telesp Celular Participacoes S.A ("TCP"), (NYSE:TCP) (BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)), announced Friday updates to
its recent share offerings. Based on information provided by
Banco ABN Amro Real S.A., the registrar for the Company's shares,
the company disclosed:
  (i) the number of new TCP preferred shares (PN), common shares
(ON) and American depositary shares (ADSs) subscribed for in the
Brazilian and U.S. markets during the first reoffering round of
unsubscribed shares, which closed on Aug. 21, 2002,
(ii) the total number of shares subscribed in the Brazilian and
U.S. markets through Aug. 21, 2002, and
(iii) the number of remaining unsubscribed shares that are
available for subscription in the second reoffering round by TCP
shareholders who participated in the first reoffering round and
indicated an interest in subscribing for additional shares.


---------------------------------------------------------------
First Reoffering Round - Shares Subscribed - Brazilian Market
---------------------------------------------------------------
              Common Shares   (%)(1)  Preferred Shares   (%)(2)
---------------------------------------------------------------
Portugal      34,934,366,194   14.02   101,328,668,689    21.83
Telecom
---------------------------------------------------------------
Other             49,605,446    0.02    31,677,255,697     6.82
Shareholders
---------------------------------------------------------------
Total         34,983,971,640   14.04   133,005,924,386    28.65
---------------------------------------------------------------

First Reoffering Round - Shares Subscribed - Brazilian Market
---------------------------------------------------------------
                 TOTAL        (%)(3)
---------------------------------------------------------------
Portugal     136,263,034,883   19.10
Telecom
---------------------------------------------------------------
Other         31,726,861,143    4.45
Shareholders
---------------------------------------------------------------
Total        167,989,896,026   23.55
---------------------------------------------------------------

    First Reoffering Round - ADSs Subscribed - U.S. Market
---------------------------------------------------------------
                 ADSs         (%)(2)      TOTAL          (%)(3)
---------------------------------------------------------------
Portugal          10,835,602    5.84       10,835,602      3.80
Telecom
---------------------------------------------------------------
Other                  5,483   0.003             5,483    0.002
Shareholders
---------------------------------------------------------------
Total             10,841,085    5.84        10,841,085     3.80
---------------------------------------------------------------

          First Reoffering Round - Total Shares Subscribed
---------------------------------------------------------------
Common Shares (%)(1) Preferred Shares (%)(2)   TOTAL     (%)(3)
                     (including
                     preferred shares
                     underlying ADSs)
---------------------------------------------------------------
34,983,971,640      160,108,636,886        195,092,608,526
             14.04                    34.49               27.35
---------------------------------------------------------------
               Summary of Rights Offering Results
                    Total Shares Subscribed
     (Initial Subscription Period and First Reoffering Round)
---------------------------------------------------------------
             Common Shares   (%)(1) Preferred Shares  (%)(2)
                                    (including
                                    preferred shares
                                    underlying ADSs)
------------------------------------------------------------
Portugal    246,948,700,588   99.08  210,573,625,393   45.37
Telecom
------------------------------------------------------------
Other         2,020,961,696    0.81  100,996,966,756   21.76
Shareholders
------------------------------------------------------------
Total       248,969,662,284   99.89  311,570,592,149   67.12
------------------------------------------------------------

               Summary of Rights Offering Results
                      Total Shares Subscribed
   (Initial Subscription Period and First Reoffering Round)
------------------------------------------------------------
                TOTAL        (%)(3)
-----------------------------------
Portugal    457,522,325,981   64.13
Telecom
-----------------------------------
Other       103,017,928,452   14.44
Shareholders
-----------------------------------
Total       560,540,254,433   78.57
-----------------------------------

            Unsubscribed Shares Available for Subscription
               from Aug. 26, 2002 through Aug. 28, 2002
----------------------------------------------------------------
Common Shares  (%)(1) Preferred Shares  (%)(2)   TOTAL    (%)(3)
                      (including
                      preferred shares
                      underlying ADSs)
----------------------------------------------------------------
  275,205,975    0.11  152,601,119,652   32.88            21.43
                                              152,876,325,627
----------------------------------------------------------------

(1) Percentage of common shares offered
(2) Percentage of preferred shares offered
(3) Percentage of total shares offered

TCP shareholders who subscribed for shares during the first
reoffering round and indicated an interest in purchasing
additional shares in the second reoffering round will have the
right to subscribe for 0.00786663040526 of a common share and
1.14732573271796 preferred shares for each common and preferred
share subscribed, respectively, in the first reoffering round.

The period for subscription of remaining unsubscribed shares in
the second reoffering round, by preferred and common shareholders
who indicated an interest in purchasing additional shares in the
second reoffering round, ends on Aug. 28, 2002.

After that date, if there are any unsubscribed shares remaining,
a public auction will be held at the Sao Paulo Stock Exchange
(BOVESPA), where such unsubscribed shares will be offered to the
public.

TCP is a Brazilian holding company that owns 100% of Telesp
Celular S.A., the leading mobile operator in the state of Sao
Paulo in Brazil, and an 83% indirect economic interest in Global
Telecom S.A., a B-band mobile operator in the Brazilian states of
Santa Catarina and Parana.

CONTACT:  TELESP CELULAR PARTICIPACOES S.A, Sao Paulo
          Investor Relations:
          Edson Alves Menini
          Phone: (55 11) 3059-7531
          E-mail: emenini@telespcelular.com.br


VARIG: Beset With Uruguayan Unit's Woes
---------------------------------------
Besides dealing with financial problems of its own, Varig is also
grappling with the financial troubles of the Uruguayan airline
Pluna, Gazeta Mercantil reveals. Varig owns 49% of Pluna.

The Uruguayan government, which also owns 49% in Pluna, is
looking to sell its participation with Varig as the prospect
bidder. Varig's creditors, however, are not willing to include
Pluna in the Brazilian company's capitalization program.

Pluna reported a BRL33.3-million loss in 2001. Varig, with US$900
million in debt, on the other hand, needs a capitalization of
US$300 million.

CONTACT:  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



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

BITAL: ING Ditches Plan To Inject Capital After HSBC Proposal
-------------------------------------------------------------
Netherlands-based ING Group NV is not gowing forward with its
plans to take a 19.2% stake in Banco Bital for US$200 million,
according to ING spokesman Ward Snijders. In an AFX report,
Snijders said that the move came after HSBC Holdings PLC proposed
to bid for 100% of Grupo Financiero Bital SA de CV, Banco Bital's
parent company, for US$1.14 billion. The proposal was accepted by
Bital's board and was then recommended to shareholders.

ING entered into an agreement with Grupo Financiero Bital for a
19.2% stake in Banco Bital following an announcement of a
memorandum of understanding signed in March this year.

According to Snijders, the stake acquisition was planned as a
capital injection for Banco Bital. With the proposed takeover by
HSBC, the capital is no longer needed.

ING will continue its insurance joint venture with Grupo Bital,
in which the Dutch company holds 49%, Snijders said. In 1998, ING
entered into a bancassurance joint venture with Bital to enable
ING to distribute its insurance products through Bital's
branches.

The Dutch company has already held preliminary talks with HSBC on
the matter, Snijders added.

ING Group is one of the world's largest financial services groups
offering banking, insurance and asset management to over 50
million private, corporate and institutional clients in 65
countries. HSBC Group is one of the largest financial groups in
the world with some 7,000 offices in 81 countries and territories

CONTACT:  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 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

          HSBC HOLDING PLC
          10 Lower Thames St.
          London, EC3R 6Ae
          Phone: 44-20-7260-0500
          Home Page: http://www.hsbc.com
          Contact:
          Keith R.Whitson, CEO


BITAL: Spanish Bank, Investor To Sell 3% Stake To HSBC
------------------------------------------------------
Caixa Galicia and investor Olegario Vazquez Rana, who jointly own
3% of Mexico's Grupo Financiero Bital SA, revealed plans to sell
their participation in the Mexican group to HSBC Holdings Plc.

Citing Inaki Torres, a spokesman for the Spanish bank, Bloomberg
reports that the stake, which is being held by an investment
company, will be tendered to HSBC after the UK-based bank gets
Mexican regulatory approval to take over Bital, Mexico's fifth-
largest bank.

According to Torres' estimates, Caixa Galicia, which isn't traded
in the stock market, and Vazquez Rana will each make a capital
gain of US$3.4 million.


CFE: Moody's Upgrades Ratings of Five Power Projects
----------------------------------------------------
Moody's Investors Service upgraded the foreign currency debt
ratings of the following Mexican power projects related to
Comisión Federal de Electricidad (CFE), to Baa2 from Baa3:

- El Habal Funding Trust US$60.0 million 10.352% senior secured
notes due 2011

- Fideicomiso Petalcalco US$308.9 million 10.16% senior secured
notes due 2009

- Fideicomiso Petalcalco-Topolobampo US$250.0 million 8.125%
senior unsecured notes due 2003

- Monterrey Power, S.A. de C.V. US$235.54 million 9.625% senior
secured notes due 2009

- Proyectos de Energia, S.A. de C.V. US$100 million 9.75% senior
secured notes due 2013

The outlook on the ratings is stable.

Each of the ratings represents lease obligations of CFE to the
particular project, and the noteholders' claims rank pari-passu
with CFE's senior unsecured indebtedness.

The rating action concludes a review for possible upgrade that
was initiated on July 31, 2002.

Moody's upgraded the ratings believing that the prospects for
possible privatization of CFE have receded, that CFE will
continue to receive strong support from the government of Mexico
(Local Currency Rating of Baa1; Foreign Currency Rating of Baa2),
and that the need for government subsidies will decline over time
as rate increases are implemented.

While efforts to bring additional private capital into Mexico for
new power projects will move ahead, Moody's believes that CFE's
strong interlocking relationship with the Mexican government will
remain intact, providing support to CFE and its related projects
during a lengthy market transition period.

Moody's views the recent energy bill proposed by President Fox as
being consistent with this view. The bill if adopted, would
encourage much needed private investment, while the overall
electric sector would largely remain controlled by the Mexican
government.

CONTACT:  COMISION FEDERAL DE ELECTRICIDAD
          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance


GRUPO MIFEL: Talks With Mexican Banker Flop
--------------------------------------------
Talks between Mexican financial group Mifel and Mexican banker
Antonio del Valle over a stake sale failed to reach a successful
conclusion. According to Business News Americas, Del Valle and
the Mifel executives terminated the negotiations due to
differences of opinion over the group's future strategy. Del
Valle and a group of investors were expected to have injected
some MXN700 million (US$70.9 million) into the group in exchange
for 80% of its shares.

Sources say, however, that several other groups of investors are
now eyeing a stake in the Company after it showed attractive
profitability this year.

Mifel is a small niche-oriented financial group that focuses on
mortgage lending and corporate clients.


SANLUIS: BMV Halts Trading of Shares Over Price Volatility
----------------------------------------------------------
The Bolsa Mexicana de Valores (BMV) suspended trading on the
shares of Mexican autoparts manufacturer SanLuis Corporacion,
reports Business News Americas.

The suspension came following "extraordinary price fluctuations,"
the BMV said, noting the difference between the share's bid price
of MXN3.00 and ask price of MXN4.98 (US$0.31 and US$0.52). The
bourse said that the suspension will continue until officials of
the company issue a statement and explain the reasons for the
fluctuations.

In response, a SanLuis spokesperson said that the share price
discrepancy could be explained by the Company's delay in
releasing its 2Q02 results, which were due out on August 2. In
addition, ongoing negotiations with creditor banks to restructure
US$234 million of the Company's debts were cited as contributing
factors.

SanLuis announced Wednesday (Aug.21) that an agreement in
principle had been reached with a steering committee representing
the banks. SanLuis also has US$291 million in debt in the form of
commercial paper, due 2008.

SanLuis Corporacion quotes at the Mexican Stock Exchange under
the board code MSE: SANLUIS. Its Auto-Part Division, SANLUIS
Rassini, manufactures suspension and brake components and
systems, and it is a leading company in suspensions in North
America and mercosur. Over 85% of SanLuis Corporacion's
consolidated sales are made abroad and denominate in dollars.

CONTACT:  SANLUIS CORPORACION, S.A. DE C.V.
          Hector Amador, Investor Relations
          Phone: +5255-5-229-58-38
          Fax: +5255-5-202-66-04
          E-mail: hamador@sanluiscorp.com.mx
          Home Page: http://www.sanluiscorp.com



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

BANCO ALEMAN: Central Bank Delays Liquidation
---------------------------------------------
The Paraguayan central bank postponed its decision on the
liquidation of intervened bank Banco Aleman to allow deposits to
be transferred to other banks, Business News Americas reports.

Aleman, a subsidiary of Uruguay's Velox group, was intervened on
June 24 at its own request due to losses during a 20-day run on
deposits following local media rumors that the bank was
experiencing financial difficulties. The July 7 TCR-LA issue
cited Business News Americas reporting losses reaching more than
US$100 million. The recent BNAmericas report said total deposits
in the bank fell to US$26 million from US$100 million since the
government's intervention in June.

The bank's board of directors voted to liquidate the bank after
the Securities Regulatory Agency authorized the Grupo Velox,
which has owned the Banco Aleman since 1989, to wind up its
affairs and sell off its remaining assets to pay creditors.

CONTACT:  BANCO ALEMAN PARAGUAYO S.A.
          Estrella Esquina 14 de Mayo
          Asuncion, PARAGUAY
          Tel: (59521) 418 3000
          Fax: (59521) 447 645
          Home Page: http://www.bancoaleman.com.py/
          Contact:
          Juan Peirano, Presidente
          Ricardo Castillo Fracchia, Vice President



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

EMPRESAS LUCCHETTI: Faces Imminent Closure
------------------------------------------
Empresas Lucchetti SA, which is owned by Chile's Luksic family,
only has a few days left to operate its pasta factory in Lima,
Peru, Bloomberg suggests. The news comes after Lima Mayor Alberto
Andrade said his city will evict the factory and would only
accept a company request to delay the closing past Friday's
deadline for a few days.

"We already granted them a year's time to move," Andrade said.

The Lima city council, which originally refused to allow
construction of the US$40-million plant in 1997 due to
environmental concerns, ordered the plant to be closed within 12
months. The order came after a court charged that Lucchetti
executives manipulated a lawsuit allowing construction of the
plant with the help of former spy chief Vladimiro Montesinos.

Quinenco SA, the Luksic family holding company, said in a filing
to the U.S. Securities and Exchange Commission in July that
suspension of the operations of the plant would have a negative
impact on its finances, and would result to the suspension of its
obligations.

Lucchetti had earlier sold assets in Argentina and renegotiated
the Company's debts last year to reduce financing costs. The
Company hasn't posted a profit since 1997. As of December, it has
debts worth CLP56.4 billion (US$85 million), which is equivalent
to 120% of its net worth.

The Lucchetti plant in Peru reportedly involved about US$135
million in total investments.

CONTACT:  EMPRESAS LUCCHETTI S.A.
          2600 Av Vicuna Mackenna
          Comuna de Macul Santiago
          Chile
          Phone: +56 238 2711
                 +56 238 6592
          Home Page: http://www.lucchetti.cl/


SIMSA: Refinancing Plan Gains Approval From Creditors
-----------------------------------------------------
Creditors of Peruvian lead-zinc miner San Ignacio de Morococha
(Simsa) unanimously endorsed a refinancing plan for the Company,
Business News Americas reports. As agreed by creditors, a
steering committee composed of heavy machine distributor Sandvik
del Peru and Citileasing will implement the plan.

Simsa, which has a recognized debt of US$18 million, went into a
form of bankruptcy protection late last year. Its biggest single
shareholder, Phoenix-based Phelps Dodge (NYSE:PD) had initiated
the move for shareholders to declare the company bankrupt.

A July 10 TCR-LA issue reported Simsa's plans of establishing
partnership with Swiss natural resources company Glencore to help
the company restructure its debts.

Simsa mines at San Vicente in the Chanchamayo area of Junin
department in central Peru. The medium-sized Peruvian company
posted a first-half 2002 net loss of 4.17 soles (US$1.16
million).

CONTACT:  COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA
          Calle Uno 795 - Urb.
          Corpac
          San Isidro - Lima 27
          Phone: 224-3432
          Fax: 224-1321
          E-Mail: simsa@simsa.com.pe



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: On the Brink of Collapse
------------------------------
As part of an effort to stem its hemorrhaging accounts, BWIA West
Indies Airlines said it is considering a US$1-million a month
cost reduction plan, the Trinidad Guardian reports. President and
CEO Conrad Aleong assured that there will be no salary cuts
unless voluntarily agreed with workers or negotiated with unions.

However, the high-powered BWIA team created exclusively to
restructure the cash-strapped airline revealed its dim conclusion
last week. According to the team, even with reduced flying, job
cuts, concessions and selling off aircraft, the airline will
still need millions of dollars to turn itself around.

Industry insiders admit the troubled carrier is on the brink and
is in a desperate-maybe even terminal-financial position from
which it may not recover.

Although airline officials were not prepared to disclose the
airline's exact financial position, its 2001 financial report
points to debt of more than US$120 million.

Of greater concern to BWIA's accountants is the ever-increasing
portion of expenses being gobbled up by debt service payments.
Last year, the airline paid US$36 million to lease its aircraft
and engines alone. Sources have it that the airline's other debt-
service payments are in excess of US$10 million, which makes the
annual expense on leases and interest payments the second
costliest aspect of operating expenditure after employee
expenses.

According to sources, the surest signal of the morbidity of
BWIA's balance sheet was the airline's addiction to high interest
rate, short-term loans. The Company has received short-term loans
from RBTT, Citibank, Clico Investment Bank and the International
Lease Finance Corporation (ILFC).

Fees amounting to more than TT$30 million are owed to the
Airports Authority of Trinidad and Tobago none of which has been
repaid.

More critically, sources close to the current restructuring
discussions revealed that at least one of the airline's lessors
threatened to seize at least one of BWIA's Boeing 737 planes if
the ailing airline can't come up with cash up to November.

The Company entered into a loan agreement in October 2000 to
reschedule its obligations with the US-based ILFC for
US$3,096,059. The loan is unsecured and was to be repaid over 12
months commencing January 2001 with interest calculated at 11%.

But sources close to the deal said that BWIA has been unable to
make any of its monthly payments to ILFC.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           E-mail: mailto:mail@bwee.com
           Home Page: http://www.bwee.com/
           Contacts:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)



               ***********


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 * * *