TCRLA_Public/020906.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Friday, September 6, 2002, Vol. 3, Issue 177


A N T I G U A   &   B A R B U D A

LIAT: Ground Handling Operations Shift To New JV Company


ARGENTINE BANKS: CB Increases Financial System Protection Effort
NORTHERN ORION: Newport Exploration Acquiring Mantua Project
REPSOL YPF: UBS Cuts Recommendation Citing Argentine Exposure
REPSOL YPF: Exec's Graft Accusations Enrage Ecuador
SCOTIABANK QUILMES: Finalizes Arrangements With Comafi, Bansud

SCOTIABANK QUILMES: Moody's Withdraws Ratings Following Merger
TRANSENER: Official Response To Investor's Claim Forthcoming


TYCO INTERNATIONAL: Kozlowski Lawyers Object to Tax Charges


CELESC: Seeks Federal Government's $234 million Debt Repayment
CEMAR: Court Dismisses Creditor Protection Application
GLOBOPAR: Sells Stakes In 3 TV Affiliates To Pay Down Debt
VARIG: Government Airline-Related Tax Cut Boosts Share Price


MADECO: Registers 1.8B New Shares To Raise Capital


SEVEN SEAS: Results of Gas Injection Efforts Expected In 3Q02


KAISER ALUMINUM: Board OKs Jamaican Alumina Refinery Project


COPACO: Awaits Shareholders' Approval of 100-Day Plan

T R I N I D A D   &   T O B A G O

BWIA: Selling Half of Fleet To Counter Steep Decline in Profits



     - - - - - - - - - -

A N T I G U A   &   B A R B U D A

LIAT: Ground Handling Operations Shift To New JV Company
Due to financial necessity, LIAT halted ground handling
operations at VC Bird International Airport and transferred its
business to a new start-up company. The new venture, Caribbean
Airport Services (CAS), will maintain LIAT's majority

"For the last two years, the airline's management has been
addressing the essential financial restructuring of the Company
and taking whatever steps are necessary to secure the Company's
future," said a company news release.

CAS was born out of the restructuring program embarked upon by
LIAT's management to secure the long-term future for the Company.
LIAT invited a number of interested parties to share in this
partnership, which provides a business separation in ground
handling from its core business of air transportation.

Garry Cullen CEO of LIAT said, "SERVISAIR, the world's largest
independent airline ground handling company which handles over
700 airlines at 200 airport locations in 40 countries, are in the
latter stages of negotiations to join the venture. They have
however entered into a service agreement to assist CAS during its
start-up period."

CAS will have a very competitive cost base, and will be
positioned to successfully compete for other airline contracts at
its home base in Antigua, while pursuing expansion opportunities
throughout the region.

LIAT has been short of cash for the last couple of years but got
a shot in the arm in March after it received an EC$31-million
(US$11 million) loan to replace aging planes, finance its
voluntary severance program and boost marketing initiatives.

          P.O Box 819
          VC Bird Int. Airport
          Tel: 462 0700
          Fax: 462 2682/4765
          Home Page:


ARGENTINE BANKS: CB Increases Financial System Protection Effort
Struggling to stave off a collapse in the financial system, the
Argentine central bank issued new rules authorizing depositors to
open new bank accounts that aren't fettered by nine-month old
bank account withdrawal limits, reports Dow Jones Newswires.

In a statement, the Central Bank informed Argentineans that they
will be able to begin using these new accounts on October 1.
Additionally, the Central Bank also announced that persons who
make cash deposits in these new bank accounts won't be limited to
how much they can withdraw.

Since December, Argentina's banks have been subject to an onerous
partial freeze after depositors drained almost US$20 billion from
the financial system, fearing banks and the currency would

Argentina has been searching for ways to give its people greater
access to their savings, while ensuring that the country's banks
don't fold.

NORTHERN ORION: Newport Exploration Acquiring Mantua Project
Northern Orion Explorations Ltd ("Northern Orion") officially
announced entering into an agreement with Newport Exploration
Ltd. ("Newport") whereby Newport can acquire an undivided 50%
interest in the Mantua Copper Project in Cuba from Northern
Orion. The acquisition will be by way of an option agreement over
100% of the issued and outstanding common shares in Minera Mantua
Inc. ("Mantua"), a wholly owned subsidiary of Northern
Orion.  Geominera S.A., a Cuban company controlled by the
government of Cuba, holds the remaining 50% of the project.

Northern Orion believes that, by entering into this option
agreement, the Mantua Copper Project will be moved forward to
production expeditiously and consequently return value to
Northern Orion. Through the elimination of the ongoing sustaining
and development costs of the project, this will be accomplished
at no further cost to Northern Orion.

The Mantua project is located in Western Cuba and has excellent
infrastructure including paved highways, mine-site office
buildings, and mining equipment.  Previous metallurgical pilot
plant testing indicated that an annual production rate of 39
million pounds of copper cathode could be achieved with direct
operating costs of US$0.44 per pound over an 11-year mine
life.  This would place the operation in the lower quartile of
world copper production costs.  Capital costs were estimated at
US$48.5 million.  The Mantua Project is subject to a 2.5% royalty
due to Miramar Mining.

Newport has conducted its own due diligence on the Mantua project
and believes that the project can generate positive returns at
low copper prices due to the high grade of the deposit and low
operating costs per pound of copper produced. Newport would
acquire Northern Orion's interest in Mantua by way of an option
agreement, under the following terms:

- Newport will issue Northern Orion with 400,000 common shares of
Newport to enter into the Option Agreement.

- Newport will assume and pay carrying costs relating to Northern
Orion's operating costs in Cuba up to a maximum of US$20,000 per

- Newport will complete a program of sampling suitable for
metallurgical test work within 12 months from approval of the
acquisition in order to complete a bankable feasibility study,
such program to cost a maximum of US$750,000.

- Newport and Northern Orion agree on the following terms with
respect to the financing that will be required to place the
Mantua project into commercial production.

- Should Northern Orion identify, negotiate and secure a Credit
Facility satisfactory to Newport in order to commence commercial
production, Newport will issue 1,400,000 shares to Northern Orion
in consideration.  In this case Newport will assume US$20 million
of the US$28 million subordinated debt owing to Northern Orion by
Geominera, leaving Northern Orion with US$8 million of the
subordinated debt.

- Should Newport identify, negotiate and secure project financing
for commercial production on its own account, Newport would only
assume US$14 million of the subordinated debt owing to Northern
Orion by Geominera, leaving Northern Orion with the remaining
US$14 million subordinated debt.

- All costs incurred by Northern Orion and/or Newport in
negotiating and settling such financing as described above will
be a charge to Mantua.

- Upon fully exercising the option over the shares in Mantua,
Newport agrees to assume the obligations of the Miramar Royalty
on the Mantua project.

- Upon Regulatory approval of the Option Agreement between
Newport and Northern Orion, Northern Orion will be entitled to
appoint one director to the board of Newport.

As disclosed in a July 11, 2002 release, Northern Orion has total
contained metals amounting to approximately 8 billion pounds of
copper and 5 million ounces of gold in attributable mineral
resources in its three advanced projects. The Company's principal
objective is to maximize the economic potential of its interest
in the Agua Rica copper-gold-molybdenum project in Argentina. In
addition, Northern Orion is assessing a number of potential
opportunities that could provide the basis for accretive

          David Cohen, President & CEO
          Tel: (604) 689-9663, Fax: (604) 434-1487

REPSOL YPF: UBS Cuts Recommendation Citing Argentine Exposure
UBS Warburg slashed its recommendation on Repsol-YPF SA to
`reduce' from `hold' citing the Spanish-Argentine oil company's
heavy exposure to Argentina, relates Dow Jones Newswires.
Repsol's operations have been tied to Argentina since Repsol SA
bought Argentina's YPF in 1999 for US$15 billion.

Mired by continued economic policy uncertainty, Argentina's
financial environment continues to be fragile eight months after
defaulting on most of its public debt and devaluing the local
currency. Subsequently, the government failed to obtain an
emergency loan package with the International Monetary Fund.

"Argentina's economy has stabilized, politics have not," wrote
UBS Warburg in its report.

UBS also predicted that exploration and production would be
affected in 2003 by reductions in capital spending and argued
that the Company's stock price is not trading at a sufficient
discount to its peers. UBS said it was maintaining its target
price of GBP11 a share in London. That's below the current market
price of GBP13.3, however.

REPSOL YPF: Exec's Graft Accusations Enrage Ecuador
Eliseo Gomez, Repsol-YPF's country manager for Ecuador, made
graft accusations against Ecuador's judiciary and civil servants.

Gomez on Tuesday said: "It would be impossible to mention names,
but in my directory I have a list of more than 100 officials of
this type. In Ecuador the decisions are an auction, and who pays
the most wins." He also said "in almost all of Ecuador's public
institutions there are officials who only occupy themselves with
obstructing the work of foreign companies."

In response, Armando Guerrero, the president of Ecuador's Supreme
Court, slammed Gomez's accusations and challenged the Repsol
executive to put his accusations in writing and back them up with
evidence. He also invited Gomez to appear in his chambers later

Ramiro Larrea, the president of the Commission for the Civic
Control of Corruption, also asked Gomez to appear at the
commission's offices Thursday for the same purposes. The
commission has already opened an investigation into the charges.

But Gomez, late Wednesday, backed off a bit from his accusations,
saying they were "personal reactions" given in an impromptu press
conference and "weren't thought out."

"My words were the consequence of the frustrations that we have
had with the bureaucratic obstacles toward completing our
projects, which would benefit the country," he said in a written

Repsol-YPF belongs to an international consortium that's building
a 500-kilometer, US$1.1 billion oil pipeline in the Andean
country. The project is supposed to be finished by next July at
the latest, but the OCP consortium complained in June that it had
racked up US$1.2 million in losses linked to public protests.

Maria de los Angeles Mantilla, the OCP's spokeswoman, said
Gomez's comments weren't made on the consortium's behalf.

SCOTIABANK QUILMES: Finalizes Arrangements With Comafi, Bansud
Scotiabank confirmed Wednesday that its Argentine subsidiary,
Scotiabank Quilmes S.A., has reached firm agreements
with  Argentine-based Banco Comafi S.A. and Banco Bansud S.A.
that are intended to maximize jobs for employees and returns for
depositors and creditors of Scotiabank Quilmes.

"We have been working with the Central Bank over the last several
months to explore all possible options to maximize jobs for
employees and returns for depositors and creditors. We believe
this agreement with Banco Comafi and Banco Bansud is the best
possible solution given the extraordinarily difficult situation
in Argentina," said Scotiabank Chairman and CEO, Peter Godsoe.

The transaction will protect the interests of Scotiabank Quilmes'
depositors, creditors and employees and will have minimal
financial impact on Scotiabank.

All of the 91 branches of Scotiabank Quilmes are being reopened
by Comafi and Bansud and these banks have also assumed the
deposit obligations of Scotiabank Quilmes. Comafi and Bansud will
initially retain 1,200 former employees of Scotiabank Quilmes.

Substantially all of Scotiabank Quilmes' assets have been
transferred to a liquidation trust for the benefit of creditors.
The establishment of the liquidation trust is expected to provide
creditors with the best possible recovery in the circumstances.

All 1,700 former employees of Scotiabank Quilmes have received a
full severance package. While local regulations restricted
Scotiabank Quilmes from making full severance payments to
employees, Scotiabank matched the amount paid by Scotiabank
Quilmes to ensure employees received a fair and full severance

"For the past eight months, Scotiabank Quilmes employees have
been working extremely hard to serve their customers under the
most challenging conditions," said Mr. Godsoe. "This is part of
our commitment to do the right thing and is a tangible way we can
demonstrate goodwill and empathy to affected employees."

"The tragic situation in Argentina continues to have a very real
toll on all Argentines. We hope that Argentina is able to restore
economic confidence and stability for all its people," said Mr.

          Ann Wales, (416) 866-3703

SCOTIABANK QUILMES: Moody's Withdraws Ratings Following Merger
Moody's Investors Service withdrew the ratings of Scotiabank
Quilmes in light of its merger by absorption into Banco Macro-
Bansud and Banco Comafi, effective September 4, 2002.

Ratings of Scotiabank Quilmes that have been withdrawn:

- Ca long-term foreign currency deposit rating

- NP (Not Prime) short-term foreign currency deposit rating

- Ca long-term foreign currency debt rating

- NP (Not Prime) short-term foreign currency debt rating

- E bank financial strength rating

New York
Jeanne Del Casino
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

TRANSENER: Official Response To Investor's Claim Forthcoming
Compania de Transporte de Energia Electrica en Alta Tension S.A.
(Transener) is preparing a reply to a legal action made by a
private investor concerning an overdue interest payment for his
ownership in the Company, relates Business News Americas.

The Argentine transmission company, which is seeking proof of
ownership from the investor demanding US$20,000 in overdue
interest, will submit its response to the Buenos Aires stock
market soon.

The conflict with the investor has resulted in courts upholding
the investor's claims and freezing Transener assets.

"This is the result of a single investor with US$500,000 in class
'A' bonds and shares, whose interest equivalent of US$20,000 came
due in April this year and now he's taking legal action,"
Transener CFO Carlos Gonzalez said.

"This gentleman [Jacobo Alberto Khon] has spread this news
everywhere trying to get his money," said Gonzalez, adding that
"the company holds US$250 million in negotiable instruments,
which are distributed amongst many individuals," Gonzalez added.

Late in April, Transener suspended all current and future loan
payments, pending the renegotiation of US$470 million in debts.
The Company has selected Morgan Stanley as financial advisor to
help in developing a restructuring plan for all its liabilities.

According to Gonzalez, about US$250 million of Transener's debt
is in corporate bonds. About US$100 million of the bonds mature
in 2003 and US$150 million mature in 2008. The Company has US$180
million in bank debt due this year and US$40 million worth of
bank debt due in 2003, Gonzalez added.

Transener owns the concession to operate the extra high voltage
electricity transmission network in the Argentine Republic.
During these years, since its constitution in 1993, the company
has been positioned as a leader in that activity.

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

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

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


TYCO INTERNATIONAL: Kozlowski Lawyers Object to Tax Charges
Lawyers for Dennis Kozlowski, the former chief executive of Tyco
International, are working hard to get tax charges against their
client dismissed, the AP reports. Manhattan's state Supreme Court
indicted Kozlowski on charges he conspired to evade sales tax on
US$13 million worth of art, including works by Renoir and Monet.

In an effort to dismiss the charges, Kozlowski's lawyers argued
that prosecutors reached beyond the intent of the law. Court
papers submitted by Kozlowski lawyer James DeVita argue the New
York State legislature never intended to criminalize the failure
to pay sales tax by a retail customer.

"This is the first time in this state that a prosecutor has ever
attempted to charge a retail purchaser with criminal conduct in
connection with the failure to pay sales tax," Kozlowski's papers

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also maintains positions
in medical device products, and plastics and adhesives markets.
Tyco operates in more than 100 countries and had fiscal 2001
revenues from continuing operations of approximately $34 billion.

          The Zurich Centre, Second Floor
          90 Pitts Bay Road
          Pembroke HM 08, Bermuda


CELESC: Seeks Federal Government's $234 million Debt Repayment
Brazil's Santa Catarina state distributor Celesc might be forced
to trim down costs and limit investments if the federal
government fails to repay the BRL635-million (US$243 million)
debt it owes to the Company, Gazeta Mercantil reports, citing
consultant Carlos Enrique Fonseca. The federal government was due
to pay the debt June 27 after it reached an agreement with the
Santa Catarina state government to assume the debt owed to the
distributor, according to Celesc president Jose Fernando Faraco.

However, so far, the payment has not been made. Reportedly, the
issue is currently being studied by national development bank
BNDES, responsible for funding the repayment.

If the government pays up, Celesc could, in turn, pay off BRL664
million in short term debt, and free up money designated for
interest payments. The money could then be used to increase
Celesc's investments, Fonseca said.

           Rodovia SC 404 - Km 3
           Itacorubi 88034-900 Florianopolis - SC
           Phone   +55 48 231 6011
           Home Page
           Francisco De Asis Kuster, Chairman
           Enio Andrade Branco, Finance Director

CEMAR: Court Dismisses Creditor Protection Application
A Brazilian court dismissed Cemar's (Companhia Energetica do
Maranhao) application for the local equivalent of Chapter 11
protection, reports Business News Americas. The decision comes
after the power distributor signed an agreement with the
government to compensate Cemar for losses incurred during energy
rationing from June 2001 to February 2002.

The company had previously rejected the indemnity offer on the
grounds of insufficient compensation for rationing and energy
price freezes imposed by Brazil's MAE in 2001.

Cemar, controlled by US-based energy holding company PPL, filed
for debt protection last month after Brazil's power regulator
Aneel rejected the proposed sale of the Company to U.S.-based
investment company Franklin Park for US$1. The regulator decided
instead to manage the Company for at least six months to help it
cut costs and refinance debts.

TCR-Latin America reported Cemar has been hurt by declining power
demand and losses triggered by nine months of power rationing
that ended in March. The drop in revenue forced the Company to
miss payments on its BRL560 million (US$180 million) debt and
forced PPL Corp., its U.S.-based parent, to write off all of its
US$317 million investment in the unit.

          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024

            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

            Investor Relations Division
            Phone: (0XX21) 2514-6207 / 2514-6333
            Av. Presidente Vargas, 409 - 9  andar
            20071-003 - Rio de Janeiro - RJ

            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            Home Page:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694

            100 Federal Street
            Boston, MA 02110
            Phone: (617) 434-2200
            Fax: (617) 434-6943


            PPL GLOBAL (90%)
            11350 Random Hills Road
            Suite 400
            Fairfax, VA 22030

            Phone: 703-293-2600
            Fax: 703-293-2659
            William F. HechtChairman, President/CEO
            John R. Biggar, Executive Vice President/CFO

GLOBOPAR: Sells Stakes In 3 TV Affiliates To Pay Down Debt
In an effort to raise between US$150 million and US$200 million
to reduce its large debt load, Globopar SA, the main financing
vehicle for Brazilian media giant Organizacoes Globo SA, reached
an agreement to sell stakes in three local television affiliates.

Dow Jones relates Globopar announced members of the Marinho
family, the controlling shareholders of Globo, sold their 90%
stakes in the broadcasters for US$135 million to local
businessmen Jose Hawilla and Stefano Hawilla.

At Dec. 31, Globopar and its related units had BRL2.6 billion
($1=BRR3.15) in long-term debt, up from BRL2.1 billion a year
earlier, according to the holding company's filings.

          Rua Afranio de Melo Franco
          135/4  andar- Leblon
          Rio de Janeiro - RJ
          CEP: 22430-060
          Phone: (21) 240.2000
          Fax: (21) 259.6586
          Home Page:
          Mr. Roberto Marinho, President - Board of Directors
          Mauro Molchansky, Executive Director
          Marcos Carneiro, Director - Corporate Relations

VARIG: Government Airline-Related Tax Cut Boosts Share Price
Shares of Viacao Aerea Rio-Grandense SA (Varig), Latin America's
largest carrier, jumped 17 centavos, or 13%, to BRL1.45 in late
trading Tuesday on the Sao Paulo Stock Exchange, relates
Bloomberg. The stock soared after the Brazilian government
revealed plans to reduce taxes for airlines and forgive BRL600
million ($193 million) in unpaid social security contributions in
a bid to help cash-starved airlines.

The government plans to reduce import taxes on aircraft parts
and exempt airlines from paying taxes on the leasing of aircraft,
Sergio Amaral, Brazil's development minister, said at a press
conference in Brasilia. Brazil will also eliminate a financial
tax on the purchase of insurance by carriers.

The measures, which will mostly benefit Varig, will allow the
country's airlines to save between BRL800 million and BRL1
billion annually, according to Amaral.

Varig, which has US$900 million in debt, is currently negotiating
with Brazil's development bank and creditors. Varig's biggest
creditors are Petroleo Brasileiro SA, Banco do Brasil SA, and
General Electric Capital Corp. Varig is based in Porto Alegre,
and employs 14,500 people.

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:
          Dorival Ramos Schultz, EVP Finance and CFO

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


MADECO: Registers 1.8B New Shares To Raise Capital
Ailing Chilean copper and wire manufacturer Madeco advanced in
its efforts to raise new funds in order to pay off some of its
debts. According to a report released by Business News Americas,
the Company registered with Santiago's SVS securities regulator
an equity issue of 1.8 billion shares at CLP35 each to raise a
total of CLP63 billion (US$88 million). The offer will remain
open for 30 days from September 9 to October 8.

Those interested in taking up the offer can do so through a
special mechanism Madeco has set up with the Banco de Chile under
which, if it fails to raise a minimum of CLP47 billion or sign
contracts to reschedule debts with creditor banks, subscribers
will receive their money back. Interested parties can also
subscribe to the share offer directly via the normal route, but
they will not benefit from these advantages, Madeco said in a

The equity issue is part of an agreement reached at an
extraordinary shareholders' meeting on July 10. Madeco's majority
shareholder, Chile's Luksic group, has publicly committed itself
to taking up its 56.5% portion of the capital issue but analysts
say that minority shareholders may not be interested in doing so.

Madeco plans to use US$60 million of the capital increase to pay
off half of its short-term debt of US$120 million. The other half
will be paid off over seven years with three years' grace under
agreements reached with creditor banks. Any remaining funds would
be used as working capital.

Late last year, Madeco hired investment bank Salomon Smith Barney
to help it restructure debts amounting to US$325 million. The
debt consists of roughly US$100 million in long-term bonds,
US$120 million in bank loans and US$100 million related to
Madeco's subsidiaries.

To see latest financial statements:

          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          Home Page:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545

          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller


SEVEN SEAS: Results of Gas Injection Efforts Expected In 3Q02
Seven Seas Petroleum's recently started production-enhancing gas
injection efforts in the Guaduas field in Colombia are likely to
show results some time in the third quarter. The company's
expectations were detailed by Seven Seas spokesperson Daniel Drum
in a Business News Americas report.

Drilling at the field was halted at end-June after Seven Seas
failed to achieve production targets of 18,000-25,000 barrels a
day (b/d); production in June averaged about 6,800b/d. A high-
pressure compressor arrived on site toward the end of July, but
"it will take 90-120 days before we have any clear results one
way or the other," Drum said.

Guaduas has 12 producing wells, Drum said, adding that "work is
only being carried out in selected wells where we had high levels
of initial production."

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

To see financial statements:

          Daniel Drum, Investor Relations


KAISER ALUMINUM: Board OKs Jamaican Alumina Refinery Project
Kaiser Aluminum announced that its board of directors approved
spending $13.7 million at its 65%-owned Alpart alumina refinery
to improve efficiency and support the previously-announced
expansion of annual production capacity to 1.65 million metric

The spending covers two separate projects, both of which are
scheduled for completion by the end of 2003: a new dual-feed
system will enable the facility to more efficiently process
different grades of bauxite and a new cooling system will improve
alumina quality.

The total cost of the two projects is estimated at $21 million,
35% of which is funded by Alpart's minority-interest owner, Hydro
Aluminium AS.

Kaiser President and Chief Executive Officer Jack A. Hockema
said, "Continued capital investment in efficiency, quality, and
growth initiatives is essential for our ongoing efforts to
strengthen the company and emerge from Chapter 11. These two
projects, in particular, are key elements of Alpart's aggressive
plan for significant improvement in operating performance and
market position. The investment reflects our faith in the
Jamaican government's commitment to support ongoing improvements
in the competitive position of this key national industry. In
addition, we are pleased with our board's approval -- and with
the support that these projects have received from the committees
with whom we are working in our Chapter 11 case."

Kaiser Aluminum Corporation (OTCBB:KLUCQ) is a leading producer
of alumina, primary aluminum, and fabricated aluminum products.

Company press releases may contain statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The company cautions
that any such forward-looking statements are not guarantees of
future results and involve significant risks and uncertainties,
and that actual results may vary materially from those expressed
or implied in the forward-looking statements as a result of
various factors.

To see financial statements:

          Scott Lamb, 713/267-3826


COPACO: Awaits Shareholders' Approval of 100-Day Plan
Directors of Paraguayan state-owned incumbent telco, Copaco,
consented to implementing a US$20.1-million plan aimed at
streamlining projects over the next 100 days, Business News
Americas reports. Under the plan, Copaco would slash its total
workforce by 550 through voluntary retirement, a program expected
to cost PYG32.5 billion (US$5.24 million). Retirements will
proceed on a monthly basis so that severance packages amount to
no more than PYG10 billion/month over the last four months of the

The plan also budgets US$8.1 million for the digitalization of
Copaco's switching centers, and US$5.11 million for the
activation of 62,800 new fixed phone lines, which have remained
inactive because of lack of copper infrastructure. Another
US$4.23 million will go toward repair and maintenance-related

The Company expects its shareholders - the Paraguayan government
- to approve the plan before week end.

CONTACT:  COPACO S.A. (Ex. Antelco) - Paraguay
          Phone: 595-21-2192175
          Fax: 595-21-2192175

T R I N I D A D   &   T O B A G O

BWIA: Selling Half of Fleet To Counter Steep Decline in Profits
Financially strapped BWIA, Trinidad & Tobago's aviation company,
announced measures to help offset a sharp decrease in profits.
According to an article in, British West Indian
Airways will sell almost half of their fleet or 6 of the 13
airplanes, by March 2003. Various BWIA-routes in the Caribbean
area will be cutback as well.

In addition, BWIA, which used to have connecting flights between
the Piarco Airport at Port-of-Spain and the Hato Cura‡ao airport,
announced a new strategic partnership with the smaller adversary
in the Caribbean area, LIAT located in Antigua.

BWIA used to be one of the largest, if not the largest, Caribbean
aviation company. By halving its fleet, Bwee -as it is
traditionally called- will be similar in size to the Curacao's
Dutch Caribbean Airlines on the basis of airplanes.

BWIA has been dogged with internal problems leading to a negative
impact on its attempts to assure stability in the weakened
market. In July, an impasse between pilots and the Company led to
cancellations, delays and losses. The troubles have cost the
airline TT$8 million (US$1.3 million) from the middle of July
through early August. The latest figures follow the US$8.4
million loss posted for the first half of the year. The company
attributes its recent week results to declining travel after the
September 11 terrorist attacks on the United States.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           Home Page:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


The Uruguayan central bank announced that Banco Comercial and
Banco de Credito will not reopen for at least another month. The
two banks were ordered to close by the authorities on August 4
for 30 days so as to prevent a run on the banks.

On August 20, Uruguay promised the International Monetary Fund it
would shutter insolvent banks as part of a US$3.9 billion IMF
deal designed to pull the country out of a recession and to head
off the spread of the monetary crisis from neighboring Argentina.

Banco Comercial SA is the nation's largest non-government bank.
It is majority-owned by by J.P. Morgan Chase & Co., Credit Suisse
First Boston and Dresdner Bank AG. As of Sept 30, the bank has
assets of US$2.3 billion.

Meanwhile, Banco de Credito is close to being acquired by the
investment group St. George Limited. The Uruguayan government and
St. George, already a 49% stakeholder in Credito, are expected to
sign a deal that seals 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 was expected to present by 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.

          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page:

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

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

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

          Uwe Plucinski
          Deputy Chairman of the Supervisory Boa

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


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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