/raid1/www/Hosts/bankrupt/TCRLA_Public/020905.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

           Thursday, September 5, 2002, Vol. 3, Issue 176

                           Headlines


A R G E N T I N A

BANCO PATAGONIA: S&P Withdraws Ratings, Forecasts Stability
BANCO RIO: Moody's Assigns Ratings To CP Notes
BANCO URQUIJO: Talking Possible Takeover With BBVA Frances
CABLEVISION: Engages Merrill Lynch To Help Restructure Debts
IMAGEN SATELITAL: Claxson Increases Terms, Amends Exchange Offer

REPSOL YPF: Share Price Up But Analysts Wary
REPSOL YPF: Looks Forward To More Revenues Following Tax Break


B O L I V I A

NRG ENERGY: Decision Over LatAm Assets Will Be Known By Year-End


B R A Z I L

BANCO EXCEL: Shareholders Sue Arthur Andersen Worldwide
TELESP CELULAR: Updates Private Subscription Results


C H I L E

COEUR D'ALENE: Registration Statement Declared Effective by SEC


C O L O M B I A

EMCALI: Solution To Financial Troubles Draws Near


E C U A D O R

FILANBANCO: Fitch Withdraws Ratings As Bank Liquidates


M E X I C O

BITAL: HSBC Expresses Confidence In Mexican Market
SAVIA: Reports Details On Shareholder Meeting Agreements


P E R U

BACKUS: Objects to Government's Move To Boost Beer Taxes


U R U G U A Y

BANCO DE CREDITO: Investment Group Moves Closer To Acquisition


V E N E Z U E L A

FERTINITRO FINANCE: Fitch Lowers Debt Ratings to `B-'


     - - - - - - - - - -


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

BANCO PATAGONIA: S&P Withdraws Ratings, Forecasts Stability
-----------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it has
withdrawn its 'SD' counterparty rating on Banco Patagonia S.A. at
the request of the bank. As was the case with all Argentine
banks, Banco Patagonia's rating had been changed to 'SD'
following the government's decision to impose restrictions on
deposit withdrawals last December. "Although the current
situation of the Argentine financial system is extremely
critical, Banco Patagonia is well positioned to become a leading
regional bank once the economy stabilizes," said credit analyst
Carina Lopez.

Credit Analyst: Carina Lopez, Buenos Aires (54) 11-4891-2118


BANCO RIO: Moody's Assigns Ratings To CP Notes
----------------------------------------------
Moody's Investors Service assigned a Prime-1 rating to the
commercial paper issued by Argentine bank Banco Rio de la Plata
(Ca/NP/E) (Rio) through its ARS128-million fully supported
commercial paper program, the international rating agency said in
a statement.

HSBC Bank USA (Aa3/P-1/B-) (HSBC USA) issued an irrevocable
direct-pay letter of credit that provides full support for the
payment of commercial paper notes upon maturity. Moody's rating
on the CP notes is based primarily on HSBC's Prime-1 rating.

HSBC USA will also act as depositary, and will draw on the letter
of credit to pay maturing commercial paper notes.

Banco Rio, one of Argentina's largest banking companies, has
US$1.4 billion in total debt; about US$605 million of which
matures by May 2003 and another US$250 million matures by May
2004.

CONTACT:  BANCO RIO DE LA PLATA S.A.
          Bartolome Mitre 480
          1036 Buenos Aires, Argentina
          Phone: +54-14-341-1081-1580
          Fax: +54-14-341-1074-1084
          Home Page: http://www.bancorio.com.ar
          Contacts:
          Ana Patricia B. S. de Sautuola y O'Shea, Chairman
          Jose L. E. Cristofani, Executive Vice Chairman and CEO
          Pablo Caride, Corporate Finance


BANCO URQUIJO: Talking Possible Takeover With BBVA Frances
----------------------------------------------------------
BBVA Frances and Banco Urquijo are currently negotiating about a
potential takeover deal by Frances of Urquijo's Argentine
businesses.

Banco Urquijo, which started its closure process in Argentina
just two months ago, said that some of its assets are for sale
but the bank is not for sale. The bank, which had just one office
in Argentina, opened in Buenos Aires in the year 2000. Its
parent, KBL of Luxembourg, decided to have Banco Urquijo withdraw
from Argentina due to the country's deepening economic crisis.


CABLEVISION: Engages Merrill Lynch To Help Restructure Debts
------------------------------------------------------------
Argentina's leading cable-TV operator Cablevision SA said it will
restructure its debt and has hired the assistance of Merrill
Lynch & Co, relates Bloomberg. A Cablevision spokesman related
that the Company has total debts of US$790 million, of which
US$625 million is in bonds and US$165 million is in bank loans.

Cablevision has been struggling to meet its U.S.-dollar
denominated obligations since the devaluation of Argentine peso
on January 6. The company posted net losses of ARS2.93 billion
for the first half of this year, leading to a negative equity of
ARS2.1 billion. Cablevision also lost approximately 120,000
customers (9% of total subscribers).

Cablevision, owned by the U.S. buyout fund Hicks, Muse, Tate &
Furst Inc. and VLG Acquisition Corp., a U.S.-based private equity
fund, has 1.2 million customers in Argentina out of five million
cable subscribers across the country.

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

CONTACT:  MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO


IMAGEN SATELITAL: Claxson Increases Terms, Amends Exchange Offer
----------------------------------------------------------------
Claxson Interactive Group Inc. (Nasdaq: XSON) ("Claxson")
announced the extension and the amendment of its pending exchange
offer and consent solicitation (the "Exchange Offer") for all
U.S.$80 million outstanding principal amount of the 11% Senior
Notes due 2005 (144A Global CUSIP No. 44545HHA0 and Reg S Global
ISIN No. USP52800AA04) (the "Old Notes") of its subsidiary,
Imagen Satelital S.A. ("Imagen").

Claxson is now offering U.S.$500 in principal amount of its
Senior Notes due 2010 (the "New Notes") in exchange for each
U.S.$1,000 principal amount of Old Notes. The Company has also
increased the interest rate on the proposed New Notes 100 basis
points from 7.25% to 8.25%. In addition, Claxson has increased
the consent payment to U.S.$15 per U.S.$1,000 principal amount of
Old Notes payable to all holders who tender their Old Notes on or
prior to the new expiration date. The Company has also now
provided that Imagen will unconditionally and irrevocably
guarantee on a senior basis all the interest and principal
payments on the New Notes. Any holder who has previously tendered
their Old Notes will automatically be eligible to receive all of
the new and improved terms.

The Supplement dated September 3, 2002 contains a full
description of the amendments to the Exchange Offer in connection
with this extension. In addition, the Company will need the
approval of the public offering of the New Notes by the Argentine
Comision de Valores prior to expiration.

The expiration date for the Exchange Offer has been extended from
5:00 p.m. New York City time on August 30, 2002 to 5:00 p.m. New
York City time on September 16, 2002, unless further extended. As
of 5:00 p.m. New York City time on August 30, 2002 Claxson
received tenders from holders of approximately U.S. $8.1 million
in aggregate principal amount of the Old Notes.

Informational documents relating to the Exchange Offer will only
be distributed to eligible investors who complete and return an
Eligibility Letter that has already been sent to investors. If
you would like to receive this Eligibility Letter, please contact
Tom Long at D.F. King & Co., the Information Agent for the
Exchange Offer, at +(1) 212-493-6920, or Eduardo Rodriguez Sapey
at Banco Rio de la Plata, the Trustee and Rep. Exchange Agent in
Buenos Aires, Argentina at +(54) 11-4341-1013.

The new notes will not be registered under the U.S. Securities
Act of 1933, as amended, and will only be offered in the United
States to qualified institutional buyers and accredited investors
in private transactions and to persons outside the Unites States
in off-shore transactions. The new notes will be listed on the
Buenos Aires Stock Exchange.

The announcement does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the new notes in any state of the United States in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.

Claxson (Nasdaq: XSON) is a multimedia company providing branded
entertainment content targeted to Spanish and Portuguese speakers
around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through Claxson's assets in pay television, broadcast television,
radio and the Internet. Claxson was formed in a merger
transaction, which combined media assets contributed by El Sitio,
Inc., and other media assets contributed by funds affiliated with
Hicks, Muse, Tate & Furst Inc. and members of the Cisneros Group
of Companies. Headquartered in Buenos Aires, Argentina, and Miami
Beach, Florida, Claxson has a presence in all key Ibero-American
countries, including without limitation, Argentina, Chile,
Brazil, Spain, Portugal and the United States.

The company's press release contains forward-looking statements
within the meaning of the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
statements are based on the current expectations or beliefs of
Claxson's management and are subject to a number of factors and
uncertainties that could cause actual results to differ
materially from those described in the forward-looking
statements. For a detailed discussion of these factors and other
cautionary statements, please refer to Claxson's registration
statement on Form 20F filed with the U.S. Securities and Exchange
Commission on June 27, 2002.

CONTACT:  CLAXSON INTERACTIVE GROUP INC.
          Alfredo Richard  SVP, Communications, +1-305-894-3588
          Ezequiel Paz, AVP, Corporate Finance, +1-305-894-3574
          URL: http://www.claxson.com


REPSOL YPF: Share Price Up But Analysts Wary
--------------------------------------------
Shares of Repsol, Europe's No. 5 oil company, have gained 3.9%,
the second-biggest gainer in the past 30 days in the 11-member
Bloomberg Europe Oil and Gas Producers Index, reports Bloomberg.
The Company now ranks among Europe's best performing energy
stocks in the past month as investors bet that the worst is over
at its Latin American unit and is benefiting from rising oil
prices.

"Repsol's story was black and now it's turning grey as Argentina
lifts the restrictions it imposed on the industry," said Enrique
Marazuela, chief investment officer at Aegon Spain SA, which
manages about EUR1 billion (US$984 million.) The Company has been
buying Repsol shares for brokers.

Repsol has gained in recent weeks after it reduced its debt by
half to EUR8.96 billion in the first half of the year by selling
assets, and as the Argentine government started canceling some
export limits and taxes on the oil industry. Repsol's US$15
billion purchase of Argentine driller YPF caused its debt to soar
starting in 1999.

The Company is unlikely to make more provisions for the Argentine
peso's 72% decline, and expects to negotiate price increases in
the Latin American country later this year, Repsol said in July.
Its second-quarter profit jumped 54%.

"Argentina isn't going after the oil companies as it seemed to be
earlier in the year," said Enrique Soldevila, an analyst at BPI-
SGPS, who rates Repsol `hold.'

Repsol is the second-worst performer in the Bloomberg oil index
on the year, declining 23%.

Still, Repsol's recent gains aren't justified by changes in Latin
America or the likelihood that Repsol will meet its targets, said
Iain Reid, an analyst at UBS Warburg, who today downgraded the
stock to `reduce' from `hold.'

The current share price, "seems to us to discount a dramatic
recovery of Argentina, and Repsol achieving most if not all of
its strategic targets," said Reid in a note. "We think this is
unrealistic. We believe its limited cash position will force the
Company to revise production growth downwards when it next
presents its revised strategic plan."

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

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

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


REPSOL YPF: Looks Forward To More Revenues Following Tax Break
--------------------------------------------------------------
The recent move by the Argentine government to lower diesel
export taxes to 5% from 20%, retroactive to August 1, is expected
to bring in more revenues for the local unit of Spain-based
Repsol YPF. The company, in a Business News Americas report, said
that it expects to generate additional revenues of US$17 million
this year following the tax cut.

The tax break, which the government agreed to in return for
guarantees from oil companies regarding domestic supply of gas-
oil, would boost Repsol Argentina's diesel export revenues for
August-December by 17.4% to some US$115 million, based on a
volume of 120,000 cu. m. per month.

Friday's agreement confirms a preliminary agreement in June
designed to ease export burdens imposed on the companies after
January's devaluation. In Repsol's case, devaluation forced a
US$2.6 billion write-down on peso-denominated assets in 1H02.

"[The export tax cuts] will improve our profitability
substantially," the source said. "They are a sign of the good
relationship and constructive dialogue between the government and
oil companies."

Repsol's operations have been tied to Argentina since Repsol SA
bought Argentina's YPF in 1999 for US$15 billion. The purchase
transformed Repsol from being primarily involved in refining and
marketing into the Organization for Economic Cooperation and
Development's sixth-largest oil and gas company. Before the
acquisition, exploration and production accounted for about 23%
of the Company's assets, but this jumped to around 50% after the
purchase of YPF.


=============
B O L I V I A
=============

NRG ENERGY: Decision Over LatAm Assets Will Be Known By Year-End
----------------------------------------------------------------
United States power company, NRG, announced that a final
determination about which of its Latin American assets will go on
the block will come by year-end, reports Business News Americas.

In the region, NRG owns 98.6% of Bolivian hydro generator Cobee,
60% of Bolivian thermo generator Bulo Bulo, 99% voting stock of
the 156MW Itiquira hydro project in Brazil, 100% of Peruvian
hydro generator Cahua, 100% of Peruvian power company Energia
Pacasmayo, and a 25% stake in funds I and II of the Scudder Latin
American Power Fund (SLAP).

In April, NRG said it had retained Deutsche Bank to market the
assets, a process that continues, company spokesperson Lesa Bader
said.  The move to sell the LatAm assets is part of NRG's
strategy to improve liquidity and reduce debt.

CONTACT:  NRG Energy, Inc.
          901 Marquette Avenue
          Suite 2300
          Minneapolis, MN 55402-3265
          PHONE: 612.373.5300
          FAX: 612.373.5312
          WEBSITE: http://www.nrgenergy.com
          Contacts:
          David Peterson, Chairman, President, and CEO
          Leonard Bluhm, Exec. Vice President, and CFO
          W. Mark Hart, Senior Vice President    
          Keith Hilless, Senior Vice President, Asia Pacific   
          Craig Mataczynski, Senior Vice President, North America

          INVESTOR RELATIONS: Len Bluhm
                       Phone: 612/313-8900

FINANCIAL ADVISOR:
     
     Goldman Sachs (For European and UK portfolios)
     85 Broad St.
     New York, NY 10004   
     Phone: 212-902-1000
     Fax: 212-902-3000
     Home Page: http://www.gs.com

     Deutsche Bank (Latin American portfolio)
     Taunusanlage 12
     60262 Frankfurt, Germany     
     Phone: +49-69-910-91000
     Fax: +49-69-910-34227
     Home Page: http://www.deutsche-bank.de

     ABN-AMRO (Asia-Pacific portfolio)
     Foppingadreef 22
     1102 BS Amsterdam, The Netherlands     
     Phone: +31-20-628-9393
     Fax: +31-20-629-9111
     Home Page: http://www.abnamro.com

LEGAL ADVISOR: Sullivan & Cromwell
               125 Broad St.
               New York, NY 10004-2498   
               Phone: 212-558-4000
               Fax: 212-558-3588
               Home Page: http://www.sullcrom.com

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



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

BANCO EXCEL: Shareholders Sue Arthur Andersen Worldwide
-------------------------------------------------------
The law firm Srour Fischer & Mandell LLP announced today that it
has filed a first-of-its-kind RICO action against Arthur Andersen
Worldwide on behalf of certain shareholders of Banco Excel
Economico SA, a leading Brazilian bank. The suit seeks, among
other things, damages of at least $350 million and treble damages
for Andersen's role in fraudulently wresting control of the bank
away from the plaintiffs.

The complaint alleges that Andersen violated the RICO statutes --
its partners participated in a number of worldwide criminal
conspiracies to provide fraudulent accounting and auditing
services, obstructed justice, engaged in extortion, and other
such behavior, all in an effort to enrich themselves. The
complaint also alleges that Andersen encouraged its partners and
employees to become employed in senior positions by clients, so
that the pattern of deception could be continued.

At the heart of the matter is Andersen's alleged conspiracy with
Banco Bilboa Viscaya Argentaria S/A, the second largest Spanish
bank (now under indictment for bribing foreign officials to
purchase local banks at bargain basement prices), who sought to
acquire Excel. The plaintiffs charge that Andersen, working as
BBVA's auditor, fraudulently undervalued the bank, and worked in
concert with BBVA and senior officers of the Central Bank of
Brazil (who are also currently under indictment for accepting
bribes) to strong-arm the plaintiffs to sell the bank. Once the
sale was consummated for about the equivalent of one US dollar,
Andersen placed its own employees in management positions. The
complaint details that after the "purchase", Andersen's valuation
of the bank rose dramatically, but the plaintiffs were not
compensated accordingly.

The complaint was filed on August 27 in the United States
District Court for the Southern District of New York, and was
assigned to Judge Denny Chin.

Srour Fischer & Mandell handles complex litigations on behalf of
financial institutions, corporations and other entities. Their
practice is international in scope, with a particular emphasis on
the representation of South American and Middle Eastern
companies.

CONTACT: James Post, +1-212-754-1760, for Srour Fischer & Mandell
LLP


TELESP CELULAR: Updates Private Subscription Results
----------------------------------------------------
Telesp Celular Participacoes S.A ("TCP"), (NYSE:TCP) (BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)), the Brazilian holding company
that owns 100% of Telesp Celular S.A., announced (1) the number
of common shares (ON) and preferred shares (PN), unsubscribed
during TCP's rights offering, that were subscribed for at an
average price of R$3.50 and R$3.9207 per thousand shares,
respectively, in the Brazilian market during the public auction
held on Sept. 2, 2002 at the Sao Paulo Stock Exchange (BOVESPA)
and (2) the total number of shares subscribed in the rights
offering and the public auction.

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

The company's official subscription results were:

--------------------------------------------------------------
    Public Auction - Shares Subscribed - Brazilian Market
--------------------------------------------------------------
           Common Shares   (%)(1)   Preferred Shares    (%)(2)
--------------------------------------------------------------
Portugal         342,504   0.0001             --          --
Telecom
--------------------------------------------------------------
Other               --       --      7,978,644,982        1.72
Shareholders
--------------------------------------------------------------
Total            342,504   0.0001      7,978,644,982        1.72
--------------------------------------------------------------

         Public Auction - Shares Subscribed - Brazilian Market
--------------------------------------------------------------
                 TOTAL         (%)(3)
--------------------------------------------------------------
Portugal             342,504   0.0001
Telecom
--------------------------------------------------------------
Other          7,978,644,982     1.12
Shareholders
--------------------------------------------------------------
Total          7,978,987,486     1.12
--------------------------------------------------------------

                       Total Shares Subscribed
   (Initial Subscription Period, First and Second Reoffering
                      Rounds and Public Auction)
--------------------------------------------------------------
           Common Shares   (%)(1)   Preferred Shares   (%)(2)
                                    (including
                                     preferred shares
                                      underlying ADSs)

Portugal   247,223,858,841   99.19   326,830,614,443    70.41
Telecom
--------------------------------------------------------------
Other       2,021,009,418     0.81    137,341,097,358   29.59
Shareholders
--------------------------------------------------------------
Total     249,244,868,259   100.00    464,171,711,801  100.00
--------------------------------------------------------------

                        Total Shares Subscribed
   (Initial Subscription Period, First and Second Reoffering
                      Rounds and Public Auction)
--------------------------------------------------------------
                 TOTAL        (%)(3)
--------------------------------------------------------------
Portugal     574,054,473,284    80.47
Telecom
--------------------------------------------------------------
Other        139,362,106,776    19.53
Shareholders
--------------------------------------------------------------
Total        713,416,580,060   100.00
--------------------------------------------------------------
The Company also announces that on Sept. 6, 2002 a special
meeting of the Board of Directors will take place to vote for the
ratification of the capital increase.

If the capital increase is ratified by the Board of Directors,
TCP's shareholder structure will be as follows:
--------------------------------------------------------------
             Shareholder Structure after Capital Increase
--------------------------------------------------------------
               Common Shares     %      Preferred Shares    %
                                        (including
                                         preferred shares
                                         underlying ADSs)
--------------------------------------------------------------
Controlling   383,442,360,953  93.66    379,615,544,873  49.79
Shareholders
--------------------------------------------------------------
Portelcom
Participacoes
  S/A          92,112,338,122    22.50         719,908   0.00
--------------------------------------------------------------
Portugal Telecom
SGPS, S.A.    291,330,022,831    71.16 379,614,824,965  49.79
--------------------------------------------------------------
Other          25,941,503,583     6.34 382,784,943,100  50.21
Shareholders
--------------------------------------------------------------
TOTAL         409,383,864,536   100.00 762,400,487,973 100.00
--------------------------------------------------------------
             Shareholder Structure after Capital Increase
--------------------------------------------------------------
                     Total              %
--------------------------------------------------------------
Controlling         763,057,905,826    65.12
Shareholders
--------------------------------------------------------------
Portelcom
Participacoes S/A    92,113,058,030     7.86
--------------------------------------------------------------
Portugal Telecom
SGPS, S.A.          670,944,847,796    57.26
--------------------------------------------------------------
Other               408,726,446,683    34.88
Shareholders
--------------------------------------------------------------
TOTAL             1,171,784,352,509   100.00
--------------------------------------------------------------
(1) Percentage of common shares offered (2) Percentage of
preferred shares offered (3) Percentage of total shares offered

CONTACT:          TELESP CELULAR PARTICIPACOES S.A, SAO PAULO
                  Investor Relations:
                  Edson Alves Menini, (55 11) 3059-7531
                  emenini@telespcelular.com.br



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

COEUR D'ALENE: Registration Statement Declared Effective by SEC
---------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE:CDE) made an official
announcement Tuesday that the registration statement relating to
the secondary offering of up to $21.5 million principal amount of
a new series of 13 3/8% Convertible Senior Subordinated Notes
("New Series Notes") due December 31, 2003 that were issued in
June of this year was declared effective by the Securities and
Exchange Commission.

The registration statement registers the New Series Notes and the
shares of Common Stock issuable upon conversion thereof or that
may be issued as interest thereon for resale under the Securities
Act of 1933 by the securityholders named in the registration
statement. The shares of Common Stock issuable upon conversion of
the New Notes have been approved for listing on the New York
Stock Exchange (NYSE).

Coeur d'Alene Mines Corporation is the country's largest silver
producer, as well as a significant, low-cost producer of gold.
The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.

To see financial statements:
http://bankrupt.com/misc/COEUR.htm

CONTACT:  COEUR D'ALENE MINES CORPORATION
          Mitchell J. Krebs, 208/769-8155



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

EMCALI: Solution To Financial Troubles Draws Near
-------------------------------------------------
The future of the insolvent Cali-based utilities company Empresas
Municipales De Cali (Emcali) will be known this week. A final
decision is expected after the Colombian government and the
strategic committee managing Emcali define conditions for a
potential capitalization, Business News Americas reports, citing
Colombian daily Portafolio

"We have progressed a lot with the President [Alvaro Uribe] in
studying the possibility that the [national government] might
capitalize [Emcali]," Cali's mayor John Maro Rodriguez said.
"[Capitalization] would seem to be the best thing under the
current circumstances," he added.

Emcali, which the public services regulator intervened in April
2000 in an effort to save the Company from collapsing, has total
indebtedness of COP890 billion (US$341 million), COP483
billion of which is owed to foreign creditors.

Recapitalizing the Company would mark the next step in resolving
its bankruptcy. A final recovery plan is expected to be ready for
November 30 this year, said Portafolio.

Emcali is the telecommunications, electric power and water
utility for the Valle de Cauca department in southwestern
Colombia.

URL: http://www.emcali.com.co/



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

FILANBANCO: Fitch Withdraws Ratings As Bank Liquidates
------------------------------------------------------
Fitch Ratings has withdrawn the ratings assigned to Ecuador's
Filanbanco, following the resolution of the bank's liquidation.
The ratings affected are an individual rating of 'E' and a
support rating of '4T'. Formerly the largest bank in the system,
Filanbanco was intervened in the 1998-1999 crisis and remained
open until July 2001 under the administration of the deposit
guarantee agency (AGD). Upon resolution of a dispute with
depositors, the Central Bank ordered the bank to be liquidated on
July 31, 2002. Three trusts have been established to manage the
liquidation of the bank's assets and reimburse creditors
accordingly. As of the balance sheet at end-2001, the bank
reported liabilities nearly equal to its assets of US$743
million.

CONTACT:  FITCH RATINGS
          Linda Hammel
          1-212-908-0303

          Ricardo Chaves
          1-212-908-0606, New York

          Patricio Baus +5932 222-2323, Quito

          Media Relations:
          James Jockle 1-212-908-0547, New York

          FILANBANCO
          Av. 9 of 203 October and Pichincha
          Guayaquil, Ecuador
          Phone: 322780 ext. 2885
          Fax: 329451
          E-mail: mailto:administrador@filanbanco.com
          Home Page: http://www.filanbanco.com/
          Contacts:
          International Business Division
          Germania Narv ez Brandon
          E-mail: mailto:mgnarvaez@filanbanco.com

          Legal Divison (Guayaquil)
          Marks Arteaga Valenzuela, Departmental Manager
          E-mail: mailto:mmarteaga@filanbanco.com



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

BITAL: HSBC Expresses Confidence In Mexican Market
--------------------------------------------------
HSBC remains optimistic on the potential of the Mexican market
despite its weak legal framework for banks. Mexico has a
historically ineffective legal structure when it comes to
recovering guarantees from debtors who have failed to pay back
their loans. The assessment of Mexico's system comes by way of
Luis Miguel Vilatela, director of HSBC in Mexico, who is
concerned about the legal environment.

However, even if the British group sees the legal insecurity in
Mexico as an obstacle for doing business in the country, HSBC
believes that the Mexican market has "solid macroeconomic
fundamentals", Vilatela said.

HSBC made a bid for Mexico's fifth largest financial group Bital
in August, which was accepted by Bital's board. Just this week,
the European group announced that it is ready to take control of
the Mexican bank. Bital just needs to close its agreements with
the Bank Savings Protection Institute (IPAB) to integrate Banco
del Atlantico.

Vilatela said that HSBC would inject US$450 million into Bital to
help the local group with its ongoing capitalization process.

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

          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


SAVIA: Reports Details On Shareholder Meeting Agreements
--------------------------------------------------------
Savia (NYSE:VAI) announced Monday that its shareholders meeting
approved: (1) the conversion of Series "A" Shares Class I into a
Unique Series "B" Shares; (2) the underwriting of unsecured
convertible bonds to Series "B" Shares for the amount of
$50,200,000; and the corresponding issuing of Treasury Common
Stock.

This conversion may improve the company's tradability and will
allow foreign investors to participate in the company without the
need of Nacional Financiera's trust. The convertible bonds,
approved by the shareholders meeting, could be issued and used by
the company for its financial restructuring.

Savia (www.savia.com.mx) participates in industries that offer
high growth potential in Mexico and internationally. Among its
main subsidiaries are: Seminis, a global leader in the
development, production and commercialization of fruit and
vegetable seeds; Bionova, a company focused in plant science for
the development and improvement of fruit and vegetable seeds; and
Omega, a real estate development company.

To see Savia's latest financial statements:
http://bankrupt.com/misc/Savia.htm

CONTACT:  SAVIA
          Investor Relations:
          Francisco Garza
          Phone: 81-81735500
          Fax: 81-81735508
          e-mail: fjgarza@savia.com.mx

          Media Relations:
          Francisco del Cueto
          Phone: 5-6623198
          Fax: 5-6628544
          e-mail: elcueto@mail.internet.com.mx



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

BACKUS: Objects to Government's Move To Boost Beer Taxes
--------------------------------------------------------
Peruvian brewer Union de Cervecerias Peruanas Backus & Johnston
SAA (Backus) disagreed with the government's recent move to
increase taxes on beer over concerns that it would result in an
decrease in beer consumption. According to a report by Dow Jones
Newswires, last week, the government increased the selective
consumption tax on beer to PEN1.31 ($1=PEN3.6145) per liter, from
PEN1.16 a liter.

"This wrong-headed decision will oblige the beer industry to
increase the price of beer in the exact amount of the increase in
the selective tax," Backus said in a published statement, noting
that an earlier increase in the selective tax on beer from 1995
to 2001 reduced beer consumption.

"We believe that this measure will have a negative impact on
Backus' operations, as it will either reduce its sales volume or
deteriorate its operating margins," brokerage Interfip said in a
report.

Backus secured a monopoly on beer production in Peru after its
purchase of Compania Cervecera del Sur del Peru SA (Cervesur) in
2002. The company is currently mired in a conflict resulting from
a series of hotly-contested share purchases involving Venezuela's
Empresas Polar SA, Colombia's Bavaria SA and Venezuela's Cisneros
Group.

The conflict began in July when Bavaria SA bought a 21.96% stake
of Backus "A" voting shares, or 18.23% of Backus' corporate
capital, for about US$420 million.

Cisneros Group then said it would pay US$200 million for options
to buy 16% of Backus "A" shares. The Venezuelan company then
launched a bid for up to another 7.32% of the Backus shares,
aiming to keep its holdings under the 25% limit that would spark
a public offer on the Lima Stock Exchange. It has been buying
Backus "A" shares on the Lima Stock Exchange at an offer price of
PEN56 ($1=PEN3.5355) a share.

The battle deepened when Polar asked the Peruvian market
regulator Conasev to place an injunction to stop the Cisneros
Group from increasing its stake in Backus.

Polar, which holds 22.1% of the Backus "A" voting shares, said
Cisneros' moves were aimed at taking control of Backus without
making a public offer.

CONTACT:  UNION DE CERVECERIAS PERUANAS BACKUS & JOHNSTON S.A.
          Jr. Chiclayo 594, Rimac
          Lima 25.
          Phone: +511-4810570
          Fax: +511-3820008
          Email: cobackus@backus.com.pe
          Home Page: http://www.backus.com.pe/INDEX-I.HTM
          Contact: Mr. Carlos Bentn, General Manager



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

BANCO DE CREDITO: Investment Group Moves Closer To Acquisition
--------------------------------------------------------------
Investment group St. George Limited, which has openly expressed
its interest in taking full control of Uruguayan bank Banco de
Credito, struck an agreement with the government Friday on how to
solve the bank's financial problems.

According to Business News Americas, the government and St.
George, already a 49% stakeholder in Credito, are expected to
sign a deal to seal the fate of the local bank soon. However,
Economy Ministry VP Elizeu Christiano Netto said that the
transaction's conclusion depends on a business plan that St.
George is expected to present before September 5.

An earlier edition of Troubled Company Reporter - Latin America
cited Cristiano as saying that the plan involves St. George
injecting US$100 million in two US$50-million tranches. The
bank's deposits currently stand at US$100 million.

Banco de Credito was intervened and suspended along with Banco
Comercial, Banco Montevideo and Caja Obrera in July and August
due to liquidity and capital problems, which were a result of
spillover from the Argentine crisis.



=================
V E N E Z U E L A
=================

FERTINITRO FINANCE: Fitch Lowers Debt Ratings to `B-'
-----------------------------------------------------
Fitch Ratings lowered the debt rating of FertiNitro Finance
Inc.'s (FertiNitro) US$250 million 8.29% secured bonds due 2020
to 'B-' from 'B+'. The rating remains on Rating Watch Negative.

As presented in the Fitch press release dated June 7, 2002, the
'B+' rating reflected the combination of a higher senior debt
load, lower-than-expected production levels, and weaker-than-
projected fertilizer prices that have all contributed to
FertiNitro's tight liquidity position and limited debt service
capacity. In addition, Fitch highlighted several factors that
could contribute to further credit deterioration from the 'B+'
level.

The present rating downgrade to 'B-' reflects FertiNitro's
continued poor operating performance that has further diminished
its liquidity position, making it all but certain that external
liquidity support will be needed to make the upcoming October
debt service payment. FertiNitro expects to cover its October
debt service payment from a combination of operating cash flow
through September and external liquidity available particularly
from a sponsor equity facility which totals US$20 million.

While FertiNitro achieved final completion earlier this year, the
plant has not yet demonstrated its ability to consistently
perform at steady-state production levels close to nameplate
capacity. From January through August 2002, ammonia and urea
production averaged 74% and 60%, respectively, of base case
projections. Plant operations continue to be inconsistent largely
due to numerous fabrication defects that began being detected
after the project commenced commercial operations.

During August, FertiNitro's ammonia and urea production levels
averaged 31% and 20%, respectively, of base case projections. The
considerably lower production levels in August were primarily
attributed to unanticipated defects in the compressor units.
FertiNitro's management believes the operational problems are
being adequately resolved, and expects to ramp-up production in
early September.

FertiNitro's liquidity position remains extremely thin as a large
portion of the debt service reserve account (DSRA) was required
for the previous debt service payment and has since been unable
to be fully replenished. As a result, FertiNitro will require
additional funds from its external liquidity sources in order to
fully cover its upcoming US$43 million debt service payment in
October.

Currently, the project has external liquidity sources totaling
US$80 million. This includes the US$20 million sponsor equity
facility, which could be canceled at the discretion of
FertiNitro's Board prior to its October 2003 expiration; and a
US$60 million line of credit debt service reserve facility
(LOC/DSRF) that expires April 2003. If the LOC/DSRF is not
extended, any amounts drawn will come due and payable
approximately three weeks after the scheduled April debt service
payment date.

The Negative Rating Watch reflects the project's poor operating
performance and weak liquidity position over the near term,
specifically the prospects of its ability to meet its April 2003
debt service payment on a timely basis, or the need to draw on
the LOC/DSRF.

Fertilizantes Nitrogenados de Venezuela, FertiNitro, C.E.C. (the
Project) is a US$1.1 billion fertilizer plant with projected
annual production of 1.3 million mt of ammonia and 1.5 million mt
of urea. Debt repayment to lenders and bondholders relies on
FertiNitro's ability to generate revenues from producing ammonia
and urea products for export into the international markets.
While the project has long-term offtake contracts with an
affiliate of Koch Nitrogen Company and ISPL/Pequiven for the
plant's production volumes, bondholders are fully exposed to the
volatility of international fertilizer prices.

FertiNitro is owned 35% by a Koch Industries, Inc. subsidiary,
35% by Petroquimica de Venezuela, S.A. (Pequiven), a wholly owned
subsidiary of Petroleos de Venezuela S.A. (PDVSA), 20% by a
Snamprogetti S.p.A. subsidiary, and 10% by a Cerveceria Polar,
C.A. (Polar) subsidiary.

CONTACT:  FITCH RATINGS
          Caren Y. Chang, 1-312-368-3151
          John W. Kunkle, 1-312-606-2329
          Joy Guttschow, 1-312-368-3140
          Alejandro Bertuol, 1-212-908-0393
          James Jockle, 1-212-908-0547 (Media Relations)




               ***********


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

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

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

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

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

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


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