/raid1/www/Hosts/bankrupt/TCRLA_Public/020910.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, September 10, 2002, Vol. 3, Issue 179

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Reports Black For First Time In 25 Years
ARGENTINE BANKS: Central Bank Scraps Ban on Lending
CABLEVISION: Shareholders Engage Merrill Lynch to Restructure
CENTRAL PUERTO: Misses Payments on $6.64M Debt Due August 15
DISCO: Parent Injects Capital To Help Meet Debt Obligations

PEREZ COMPANC: Petrobras Due Diligence Still Unfinished
TGN: Makes Interest Payment On $20M, 5-Yr Debentures


B O L I V I A

NRG ENERGY: Financial Woes Prompt Moody's Ratings Downgrade


B R A Z I L

ACESITA: Marketing To Sugar, Construction Industries To Up Sales
AES CORP: Former World Bank Managing Director Joins Board
COSIPA: Issues BRL100M In Promissory Notes
ELETROPAULO METROPOLITANA: Honors Debt After Getting BNDES Funds
NATSTEEL BRASIL: Announces Natsteel Brasil Divestment

TELESP CELULAR: Issues Extraordinary BoD Meeting Minutes


M E X I C O

GRUPO MINSA: IFC Files Lawsuit Over Non-payment of Debt
GRUPO TMM: Company, Partner Consider TFM Buyout
HYLSA: Acerero Threatens Lawsuit Seeking Damages


     - - - - - - - - - -


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

AEROLINEAS ARGENTINAS: Reports Black For First Time In 25 Years
---------------------------------------------------------------
Aerolineas Argentinas, Argentina's No. 1 airline, surprised
analysts with its announcement that, for the first time in over
25 years, it made its first monthly operating profit in July,
relates Reuters. At an assembly of creditors held Thursday,
Aerolineas Chairman Antonio Mata revealed that the Company posted
the profit -- minus debt service costs -- in July and August
despite Argentina's chaotic recession.

The announcement stunned analysts given that most global carriers
are suffering following the Sept. 11 attacks in the US. Though
they pointed out Aerolineas already was granted bankruptcy
protection last year.

Air Comet, led by Spanish travel company Viajes Marsans, bought
Aerolineas last October from the Spanish government holding
company SEPI. The sale was regarded as a bargain basement buy at
US$615 million.

Claiming Aerolineas Argentines was running up operating losses of
US$300 million per year and had a backlog of over US$900 million
in accumulated liabilities, a Madrid-appointed board filed for
bankruptcy protection and was about to close the company down
when a buyer came forward.

Since then Aerolineas has been helped by a huge jump in domestic
market share, financial woes at its rivals, dollar revenue from
its lucrative international routes and an aggressive cost-cutting
campaign.

The airline has managed to increase its share of Argentina's
domestic market to 75% from 17% a year earlier through an
aggressive expansion of routes and a fare war with its two main
competitors, privately owned AIRG and Southern Winds.

The Company now gets 40% of its revenue from international
flights with prices based in U.S. dollars, a huge boon after
January's traumatic currency devaluation, which sent the peso 70%
lower against the dollar.

Aerolineas is currently negotiating with its creditors after
being granted bankruptcy protection last year.

CONTACT:  AEROLINEAS ARGENTINAS
          Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
          Phone: (54-11) 4310-3000
          Fax: (54-11) 4310-3585
          E-mail: volar@aerolineas.com.ar
          Home Page: www.aerolineas.com.ar
          Contact:
          Patricio Zabalia Lagos, President

          AIR COMET
          Baha de Pollensa, 21-23
          Edificio Airplus
          28042 Madrid
          Phone: 913 993 674
          Fax:  913 291 146
          E-mail: airplusops@jet.es
          Contact:
          Antonio Mata, presidente de Air Comet


ARGENTINE BANKS: Central Bank Scraps Ban on Lending
---------------------------------------------------
The Argentine central bank board decided Thursday to do away with
a restriction on lending by banks that have received discount
loans from it, Bloomberg reports, citing Argentine daily El
Clarin.

The decision follows a request made by state-owned Banco de la
Ciudad de Buenos Aires, which sought to lend ARS25 million
(US$6.9 million) to small- and medium-sized business while
maintaining its debt with the central bank.

The decision will apply to all banks that have received discount
loans, including BBVA Banco Frances SA, which owes the central
bank ARS1.4 billion, Banco de Galicia de Buenos Aires SA, which
owes ARS4.6 billion, and HSBC Bank Argentina SA, with ARS295
million of central bank debt, Clarin said.

CONTACT:  BANCO FRANCES
          Maria Elena Siburu de Lopez Oliva
          Investor Relations Manager, in Argentina
          Tel. 5411-4341-5035
          E-mail: mesiburu@bancofrances.com.ar

          Maria Adriana Arbelbide
          Investor Relations
          Tel. 5411-4341-5036
          E-mail: marbelbide@bancofrances.com.ar

          BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
          Tte. Gral Juan D. Peron 407
          1038 Buenos Aires, Argentina
          Phone: +54-11-6329-0000
          Fax: +54-11-6329-6100
          Home Page: http://www.bancogalicia.com.ar

          HSBC ARGENTINA
          Av. de Mayo 701, Piso 27, (1084)
          Buenos Aires, Argentina
          Tel: 54 11 4 344 3333
          Fax: 54 11 4 334 6679
          Contact: Michael Smith, Chairman and Chief Executive


CABLEVISION: Shareholders Engage Merrill Lynch to Restructure
-------------------------------------------------------------
The controlling shareholders (AMI Cable Holdings Ltd. and VLG
Acquisition Corporation, collectively the "Shareholders") of
CABLEVISION S.A. (the "Company") announced Friday that Merrill
Lynch & Co., has been engaged to provide financial advice and to
assist the Shareholders of the Company in evaluating
restructuring alternatives.  In the meantime, the shareholders
expect the company to continue to operate its business and
satisfy its operating expenses consistent with its normal
business practice.

CABLEVISION S.A. is headquartered in Buenos Aires, Argentina, and
is the largest cable company in Argentina based on the number of
subscribers.

AMI Cable Holdings Ltd., an affiliate of Hicks, Muse, Tate &
Furst, and co-owned with several other corporations, directly and
indirectly controls 50% of Cablevision.  VLG Acquisition
Corporation, indirectly controls 50% of Cablevision.

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
                 or
          Jerry Weiss of Merrill Lynch, +1-212-449-4914


CENTRAL PUERTO: Misses Payments on $6.64M Debt Due August 15
------------------------------------------------------------
Argentina's thermo-generator Central Puerto Sociedad Anonima
informed the Buenos Aires stock market that it missed US$6.64
million capital and interest payments due August 15. The debt,
according Business News Americas, refers to a May 1998 loan
signed with the Bank of America, First Security National
Association and the US' Export-Import Bank.

The missed payment came after the Company announced it registered
a loss of ARS216 million (US$59.2 million) in 1H02 due to debt-
exposure to the exchange rate and lower domestic energy demand.

"The first half was particularly difficult for Central Puerto
because  the energy price was very low, and our combined cycle
plants were closed for maintenance in January and February so we
had practically no production in those months," CFO Philippe
Rochoux said.

Central Puerto has been in default on its US$300 million debt,
nearly all of it US-dollar denominated, since February, Rochoux
said. The debt includes the amount owed to Sofax, which is 100%
owned by Central Puerto's majority owner TotalfinaElf; US$110
million with the Bank of America with guarantees from US-based
Exim Bank; US$11.5 million with Bankboston; and US$60 million
with a syndicate of banks. Of the smallest loan, US$50 million is
in dollars and US$10 million is a peso-denominated loan from
Banco de la Provincia de Buenos Aires.

The Argentine generator suspended payment of US$125.4 million in
capital and interest on a loan with French bank Sofax Banque in
May. The Company also suspended payments on all financial
obligations in February as a result of the economic downturn in
Argentina.

Central Puerto Sociedad Anonima is in the generation,
transportation, distribution, production, marketing,
commercialization, import and block sales of electric energy and
provision of technical and consultancy services.

To see Summary of Financial Results:
http://bankrupt.com/misc/CentralPuerto.htm

CONTACTS:  CENTRAL PUERTO
           Jacques Chambert Loir, CEO
           2701 Avenida Tomas A Edison
           Buenos Aires, Argentina
           Phone   +54 1 317 5074
           Home Page http://www.centralpuerto.com

CREDITORS:  BANCO DE LA PROVINCIA DE BUENOS AIRES
            San Martin 137 (C1004AAC)
            Buenos Aires, Repoblica Argentina
            Tel. 054 (011) 4347-0000

            BANK OF AMERICA - Corporate Headquarters
            Bank of America Corporate Center
            100 North Tryon Street
            Charlotte, North Carolina 28255
            www.BankofAmerica.com
            Contacts: Ken Lewis, Chairman & CEO


DISCO: Parent Injects Capital To Help Meet Debt Obligations
-----------------------------------------------------------
Disco SA, struggling to stay afloat following the devaluation of
the peso, got a shot in the arm from its parent, Royal Ahold NV.
Royal Ahold, the world's largest food distributor, decided to
capitalize Disco SA with US$70 million to help the ailing unit
eliminate debt.

Royal Ahold was forced to buy out Argentine partner Grupo Velox's
share in the 237-store chain after Velox defaulted on its debt.
Disco cost Royal Ahold EUR490 million (US$482 million) last
quarter, leading it to post its first three-month loss since
1973.

The EUR490-million charge for the Argentine unit included EUR410
million for the default of Velox and EUR80 million in goodwill
impairment.

CONTACT:  DISCO S.A.
          Larrea 847, Piso 1
          1117 Buenos Aires, Argentina
          Phone: +54-11-4964-8000
          Fax: +54-11-4964-8039
          Home Page: http://www.disco.com.ar
          Contacts:
          Eduardo R. Orteu, Chief Executive Officer
          Jose Sanch
    

PEREZ COMPANC: Petrobras Due Diligence Still Unfinished
-------------------------------------------------------
Brazil's federal energy company Petrobras said it is not yet
through with its due diligence for its planned purchase of
Argentine holding Perez Companc, relates Business News Americas.
The announcement came in response to an El Cronista report that
said due diligence would be wrapped up September 6, with
Petrobras' board to meet in Rio during the week of September 9 to
complete the deal by September 16.

Petrobras disclosed that due diligence began July 29 after it
announced its intention to buy 58.6% of Perez Companc for
US$1.125 billion. Perez Companc owns energy company Pecom
Energia. According to a Petrobras spokesperson, the process still
continues and there are no such deadlines in place.

The Petrobras board's approval reportedly hinges on what Pecom
assets will be included in the deal, as well as conditions
identified by Petrobras in July including the completion of
Pecom's US$997.5-million debt swap, and the due diligence study,
El Cronista reported.

Perez Companc owns controlling stakes in the firms Conuar
(Combustibles Nucleares Argentinos SA) and FAE (Fabrica de
Aleaciones Especiales), which Perez Companc has in partnership
with CNEA (Comision Nacional de Energia Atomica). These firms
will not be included in the sale due to a constitutional
provision that bans these companies from allowing a foreign
company to become a private partner.

Meanwhile, the debt swap was completed in August with the
extension of the terms of four series of notes for three years.

Argentina's anti-trust department will need to authorize the sale
if and when it is approved by Petrobras' board.

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

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar


TGN: Makes Interest Payment On $20M, 5-Yr Debentures
----------------------------------------------------
Argentine natural gas transport company TGN, despite a chaotic
financial environment, was able to make payments on its debt
obligations. Citing a company statement, Business News Americas
reports that TGN made a US$87,320 interest payment Thursday on
its US$20 million 7th series of 5-year debentures due March 5
2003. The quarterly payment is the Company's ninth on the series,
and corresponds to the six months from March 5.

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

NRG ENERGY: Financial Woes Prompt Moody's Ratings Downgrade
-----------------------------------------------------------
NRG Energy's substantial debt concerns prompted Moody's Investors
Service to lower its credit ratings on the Company and its
parent, Xcel Energy, according to Dow Jones Newswires. Moody's
dropped its rating on Xcel's senior unsecured debt to Baa3 from
Baa2, leaving it one notch above junk status. The ratings agency
slashed NRG's senior unsecured debt, already deep in junk
territory, to Caa1 from B1. Both ratings remain on review for a
downgrade.

"The rating action on Xcel reflects the poor performance and
financial difficulties of its subsidiary NRG Energy Inc., in
which Xcel has made substantial additional investments this
year," Moody's said in a release.

Recent downgrades to junk status triggered a requirement for NRG
to post US$1.1 billion to US$1.3 billion in collateral with
lenders by Sept. 13. The Company has said that it can't pay that
amount, and that it will seek additional waivers from lenders to
give it more time to develop a business plan.

Additionally, the Company is pursuing to raise US$1.4 billion
through the sale of its assets including those in the Latin
American region. However, a final determination about which of
these assets will go on the block will come by year-end.

Moody's said that these sales could cause write-downs on Xcel's
balance sheet, as NRG is trying to sell assets in a very
difficult market and under financial pressure.

In Latin America, 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).

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



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

ACESITA: Marketing To Sugar, Construction Industries To Up Sales
----------------------------------------------------------------
Heavily indebted stainless steel-maker Acesita expects sales to
double in the country's northeast region by marketing to the
sugar and construction industries, Business News Americas
reports, citing business daily Gazeta Mercantil. Accordingly, the
Belo Horizonte-based company plans to invest 500,000 reais
(US$160,000) in the two northeast capitals of Recife, in
Pernambuco, and Salvador, in Bahia.

Currently, the northeast region accounts for just 1% (or 2,000t)
of Acesita's sales in Brazil. The Company hopes business in the
region will increase by 10% a year and accompany growth of the
country's stainless steel market, which currently stands at some
190,000t/y.

"Since we are still entering the [sugar] segment, we have not
made any forecast of how much we could expand, but we do not
doubt the potential for growth in the northeast, which is
[Brazil's] second largest producer of sugar and alcohol," Mauro
Patricio, the Company's sales director, said.

Acesita, controlled by the Luxembourg-based Arcelor group,
expects to produce 350,000t of stainless steel this year and
470,000t in 2003.

Troubled Company Reporter-Latin America in August pegged the
Company's dollar-denominated debts at US$790 million, some of
which have short-term expirations. To free up near term
liquidity, the Company is planning to offload its 20% stake in
slab maker CST. The most likely buyer would be Luxembourg-based
steel group Arcelor, which has stakes in the two Brazilian mills.

The acquisition of Acesita's 20% stake in CST would allow Arcelor
to inject capital into the ailing company and push forward
negotiations for a possible merger between CST and Belo
Horizonte-based flat steel maker Usiminas. Acesita's stake in CST
is valued at US$500 million.

Acesita's net losses ballooned 114% to BRL239 million (US$80
million) for the first half of this year compared to the same
period last year.  Its heavy debts stem from a round of
investments totaling US$780 million starting in 1992 and ending
in the first half of 2002. The Company expects its results to
improve in the second half of the year.

CONTACT:  ACESITA
          Avenida Joao Pinheiro, 580
          30130-180 Belo Horizonte, Minas Gerais, Brazil
          Phone: +55-31-3235-4200
          Fax: +55-31-3235-4294
          URL: http://www.acesita.com.br
          Contacts:
          Luiz A. de Lima Fernandes, President
          Bernardo C. Marie Del Litto, Industrial Director
          Guilherme Amado, Financial Superintendent


AES CORP: Former World Bank Managing Director Joins Board
---------------------------------------------------------
The AES Corporation (NYSE:AES) announced Friday that former World
Bank Managing Director, Sven Sandstrom, has joined the Board of
Directors.  Mr. Sandstrom, 60, is an adviser and director at
several European corporations and institutions. He departed the
World Bank in December 2001 following a 30-year career with the
Bank, where he was named Managing Director in 1991. As Managing
Director, he most recently had oversight responsibility for the
following regions: Europe and Central Asia, Latin America and
Caribbean and East Asia and Pacific.

Mr. Sandstrom was born in northern Sweden and studied civil
engineering and business administration in his home country. In
the late 1960's he was a Research Associate at the Massachusetts
Institute of Technology (MIT) and Harvard Business School.

AES also announced Friday that Robert Waterman has retired from
the Board after serving for 17 years. Mr. Waterman, a best
selling author on management, initially advised AES while a
consultant with McKinsey & Company and later became a Board
member in 1985. He will continue to be an advisor to the AES
Board.

The change in Board membership maintains the number of AES Board
members at the present ceiling of 12. The Board has begun to take
steps to further strengthen governance by introducing a new range
of expertise into Board deliberations.

Roger W. Sant, Chairman of the Board of AES commented, "We
welcome the addition of Sven to our deliberations at this
critical time in the life of AES. His international experience in
the banking sector and strong leadership qualities will prove to
be a valuable addition to AES. At the same time, we want to
celebrate Bob Waterman's vast contribution to our company. Bob
has served AES for much of our history and we are grateful for
his clear vision and strategic thinking. I am pleased that we
will continue to have him as an advisor to the Board and we thank
him for his continuing dedication to AES."

Mr. Sandstrom said, "I am delighted to have the opportunity to
join the AES Board and look forward to working with the company
as it moves forward in strengthening its business around the
globe at a time when there are many challenges in the electric
power sector and in financial markets."

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This news release may contain "forward-
looking statements" regarding The AES Corporation's business.
These statements are not historical facts, but statements that
involve risks and uncertainties. Actual results could differ
materially from those projected in these forward-looking
statements.

For a discussion of such risks and uncertainties, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 177
facilities totaling over 59 gigawatts of capacity, in 33
countries. AES's electricity distribution network sells over
108,000 gigawatt hours per year to over 16 million end-use
customers.

For more general information visit our web site at www.aes.com or
contact investor relations at investing@aes.com.

CONTACT:  AES CORPORATION
          Kenneth R. Woodcock, 703/522-1315


COSIPA: Issues BRL100M In Promissory Notes
------------------------------------------
Companhia Siderurgica Paulista (Cosipa), Brazil's third-largest
steelmaker behind Companhia Siderurgica Nacional and Usinas
Siderurgicas de Minas Gerais (Usiminas), issued BRL100 million
(US$33 million) in promissory notes, Business News Americas
reports, citing Brazilian business daily Valor Economico.

The notes expire in 180 days. Banco Votorantim acted as
coordinator to the recent transaction. Proceeds of the issue will
be used to boost its working capital and buy time to launch
debentures when market conditions improve.

Sao Paulo-based flat steel maker Cosipa, which is controlled by
Belo Horizonte steel maker Usiminas, has a total of BRL1.52
billion (US$500 million) of promissory notes registered on the
market this year.

Cosipa slipped into the red in the second-quarter this year after
the value of the dollar rose by 22.4% versus the local currency,
the real, between April and June. The company registered a net
loss of BRL345 million (currently US$111 million) for the second-
quarter this year, compared to a net profit of BRL4 million for
the same-period 2001.

Financial losses jumped six fold to BRL594 million (US$192
million) for the second quarter 2002 against the figure posted in
the same year-ago period. EBITDA inched up less than 2% to BR120
million (US$39 million) in the same quarterly comparison, but
ebitda margins fell from 25.8% to 21.2%. Net operating revenues
during the quarter grew 23% to just over BRL566 million (US$183
million) from the same period in the previous year. With new
equipment increasing capacity, sales volumes rose 30% to 871,000t
in the same period.

Cosipa's production capacity has jumped from 2.5Mt/y to 4.5Mt/y
this year. With the completion of a US$1.1-billion investment
program, Cosipa expects to be operating at full capacity from
4Q02 onward.

Fabio Zagatti, a steel analyst with HSBC bank, told Business News
Americas that he predicts Cosipa will end this year with an
accumulated loss of BRL185 million (US$60 million).

Cosipa manufactures cold- and hot-rolled steel sheets, as well as
heavy plates and slabs. It sells its products internationally to
auto, home appliance, and pipe manufacturers, with most exports
going to North and Central America, South American countries,
Europe, and Asia and Oceania. The Company also runs its own
domestic port terminal for receiving raw materials used in steel
production and for exporting steel products. Usiminas owns 49.8%
of Cosipa's voting shares.

CONTACT:  Avenida do Cafe, 277
          Torre B, 8  e 9  andar
          Vila Guarani
          04311-000 Sao Paulo, Brazil
          Phone: +55-11-5070-8800
          Fax: +55-11-5070-8863
          URL: http://www.cosipa.com.br
     

ELETROPAULO METROPOLITANA: Honors Debt After Getting BNDES Funds
----------------------------------------------------------------
Brazilian distributor Eletropaulo Metropolitana, which recently
obtained payment from BNDES as part of an indemnity agreement
between the government and the electric sector, managed to pay a
US$250-million debt to a syndicate led by JP Morgan Chase in the
week of August 26. The official news, according to a Business
News Americas report, was revealed by Antonio Matiello,
spokesperson at power regulator Aneel.

"Eletropaulo confirmed the payment, after the national
development bank BNDES paid the company BRL922.8 million as an
advance on an indemnity agreement between the government and the
electric sector," said Matiello.

Eletropaulo had previously postponed the US$250-million debt
payment, due August 26, for two weeks.

Eletropaulo is also faced a September 4 deadline to pay another
US$60 million in debt in commercial paper that Matiello presumes
will be paid "considering the amount paid out by BNDES, but
there's still no official word," he added.

Eletropaulo is the largest electricity distributor in Latin
America in terms of revenues, with a sales volume of 32,563 GWh
in 2001. Since privatization on April 15, 1998, Eletropaulo has
been owned by LightGas, now known as AES ELPA. AES ELPA is 88.21%
owned and controlled by AES. AES ELPA owns 77.81% of
Eletropaulo's voting shares and 30.97% of total capital.

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

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

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

         
NATSTEEL BRASIL: Announces Natsteel Brasil Divestment
-----------------------------------------------------
The Board of Directors of NatSteel Ltd (the "Company"), in an
official announcement, refer to the proposed divestment
("Divestment") of the Company's entire 66.8 per cent interest in
NatSteel Brasil Ltda ("NatSteel Brasil") to Gerdau Participacoes
Ltda and Gerdau GTL Spain S.L. The transaction was first
announced on 30 January 2002. NatSteel Brasil is an investment
holding company formed for the sole purpose of holding NatSteel
and Finlayson's (as defined below) 24.79 per cent interest in
Acominas Gerais S.A. ("Acominas"), an integrated steel mill and
producer of mainly semi-finished steel products such as billets
and slabs.

At an extraordinary general meeting of the Company held on 18
March 2002, shareholders of the Company ("Shareholders") approved
the Divestment. Further details of the Divestment can be found in
the circular dated 1 March 2002 to Shareholders.

The Board of Directors announces that Gerdau Participacoes Ltda,
together with another wholly-owned subsidiary within the Gerdau
Group (collectively "GD"), had on 6 September 2002 exercised the
call option granted to it under the terms of the Divestment to
acquire the entire share capital of NatSteel Brasil held by the
Company and Finlayson Investments Pte Ltd ("Finlayson").
Finlayson is a wholly-owned subsidiary of Temasek Capital
(Private) Limited, which is in turn a wholly-owned subsidiary of
Temasek Holdings (Private) Limited, a substantial Shareholder. In
this regard, GD will pay on 18 October 2002 an aggregate cash
consideration of US$211.6 million for the entire share capital of
NatSteel Brasil, of which the Company's share is approximately
US$141.4 million. The Divestment would thereupon be completed and
NatSteel Brasil would be renamed GTL Brasil Ltda.

By Order of the Board
Lim Su-Ling (Ms)
Company Secretary
9 September 2002


TELESP CELULAR: Issues Extraordinary BoD Meeting Minutes
--------------------------------------------------------
Attendance: Miguel Antonio Igrejas Horta e Costa; Iriarte Jose
Araujo Esteves; Carlos Manuel de Lucena e Vasconcellos Cruz;
Zeinal Abedin Mohamed Bava; Paulo Jorge da Costa Goncalves
Fernandes; Francisco Jose de Azevedo Padinha; Gilson Rondinelli
Filho; Eduardo Perestrelo Correia de Matos; Luis Manuel Pego Todo
Bom; Norberto Veiga de Sousa Fernandes; Estanislau Jose Mata
Costa; Guilherme Silverio Portela Santos; Jose Pedro Faria
Pereira da Costa; Maria Paula de Almeida Martins Canais; Rui
Manuel de Medeiros D'Espiney Patricio; Paulo Jose Soares; Antonio
Goncalves de Oliveira.

On Sept. 6, 2002, at 4:00 p.m., at the Company's principal place
of business, in the City of Sao Paulo, State of Sao Paulo, at Rua
Abilio Soares, 409, the members of the Board of Directors of
Telesp Celular Participacoes S/A met in a Extraordinary Meeting
to resolve on the following Agenda: Ratification of an increase
in the Company's capital stock, within the limits of its
authorized capital, by means of the issuance, for private
subscription, of new common shares and new preferred shares,
including preferred shares underlying American Depositary Shares,
in connection with the rights offering to the Company's existing
shareholders that was authorized at an Extraordinary Meeting of
the Board of Directors and the Audit Committee on June 28, 2002.

RESOLUTIONS TAKEN: The Chairman opened the meeting and presented
the results of the pre-emptive rights offering to holders of the
Company's common shares, preferred shares and American Depositary
Shares that was authorized at an Extraordinary Meeting of the
Board of Directors and the Audit Committee on June 28, 2002. The
rights offering was fully subscribed, in the amount of seven
hundred and thirteen billion four hundred and sixteen million
five hundred and eighty thousand and sixty (713,416,580,060) new
shares, consisting of two hundred and forty-nine billion two
hundred and forty-four million eight hundred and sixty-eight
thousand and two hundred and fifty-nine (249,244,868,259) new
common shares and four hundred and sixty-four billion one hundred
and seventy-one million seven hundred and eleven thousand and
eight hundred and one (464,171,711,801) new preferred shares, and
fully paid.

As a result of the offering of seven billion nine hundred and
seventy-eight million six hundred and forty-four thousand and
nine hundred and eighty-two (7,978,644,982) preferred shares in a
public auction at the Sao Paulo Stock Exchange on Sept. 2, 2002,
at an average price of R$ 3.9207 per one thousand shares, the
proceeds of the rights offering increased by three million, three
hundred and fifty-six thousand, seven hundred and twenty-two
reais and ninety-nine centavos (R$ 3,356,722.99) to a total of
two billion, five hundred million, three hundred and fourteen
thousand, seven hundred and fifty-three reais and twenty centavos
(R$ 2,500,314,753.20).

Thereafter, the increase in the Company's capital stock from one
billion eight hundred and seventy-three million three hundred and
forty-six thousand seven hundred and sixteen reais and fifty-
three centavos (R$ 1,873,346,716.53) to four billion three
hundred and seventy-three million six hundred and sixty-one
thousand four hundred and sixty-nine reais and seventy-three
centavos (R$ 4,373,661,469.73), which is an overall increase of
two billion five hundred million three hundred and fourteen
thousand seven hundred and fifty-three reais and twenty centavos
(R$ 2,500,314,753.20), upon issuance of seven hundred and
thirteen billion four hundred and sixteen million five hundred
and eighty thousand and sixty (713,416,580,060) new shares,
consisting of two hundred and forty-nine billion two hundred and
forty-four million eight hundred and sixty-eight thousand two
hundred and fifty-nine (249,244,868,259) new common shares and
four hundred and sixty-four billion one hundred and seventy-one
million seven hundred and eleven thousand and eight hundred and
one (464,171,711,801) new preferred shares, which are in all
respects identical to existing common and preferred shares of the
Company, was ratified by unanimous vote.

There being nothing further to be discussed, I, the Secretary,
drew up these minutes, which were then read, checked and signed
by the members of the Board of Directors.

Sao Paulo, Sept. 6, 2002. Miguel Antonio Igrejas Horta e Costa
Chairman; Iriarte Jose Araujo Esteves Vice Chairman; Carlos
Manuel de Lucena e Vasconcellos Cruz Vice Chairman; Zeinal Abedin
Mohamed Bava Board member; Paulo Jorge da Costa Goncalves
Fernandes Board member; Francisco Jose de Azevedo Padinha Board
member; Gilson Rondinelli Filho; Board member; Eduardo Perestrelo
Correia de Matos Board member; Luis Manuel Pego Todo Bom Board
member; Norberto Veiga de Sousa Fernandes Board member;
Estanislau Jose Mata Costa Board member; Guilherme Silverio
Portela Santos Board member; Jose Pedro Faria Pereira da Costa
Board member; Maria Paula de Almeida Martins Canais Board member;
Rui Manuel de Medeiros D'Espiney Patricio Board member; Paulo
Jose Soares Board member; Antonio Goncalves de Oliveira Board
member. Luis Fernando Amadeo de Almeida Secretary.

The present is an examined copy of the minutes of the
extraordinary general shareholders' meeting of Telesp Celular
Participacoes S/A, held on Sept. 6, 2002, and entered in the
minutes of the shareholders' meeting book.

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



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

GRUPO MINSA: IFC Files Lawsuit Over Non-payment of Debt
-------------------------------------------------------
Grupo Minsa, Mexico's second-largest corn flour producer,
informed the Mexican Stock Exchange that it received notice of a
lawsuit filed by the International Finance Corp., the World
Bank's financing arm.

Minsa, in the filing with the bourse, revealed that the suit
alleges it of not paying a debt from 1996. Minsa didn't say how
much it owes the IFC, but said it is in the process of
renegotiating the loan, as well as debts owed to other creditors.
The corn miller said it expects to conclude these talks shortly
and still meet its 2002 operational goals.

Minsa's second-quarter loss ballooned to MXN87.1 million (US$
million) from MXN39.4 million in the year-ago quarter, in part
due a weaker peso. The difficulty made debt servicing costs more
expensive, according to the Company's earnings report.

Minsa had debt of MXN948 million (US$95 million) at the end of
June, three quarters of which matures in a year or less.


GRUPO TMM: Company, Partner Consider TFM Buyout
-----------------------------------------------
Grupo TMM (Transportation Maritima Mexicana) and partner US
transportation giant Kansas City Southern (KCS) plan to make a
complete buyout of Grupo TFM (Transportacion Ferroviaria
Mexicana) next year, reports Business News Americas.

The plan follows the partners' July acquisition of 24.6% of the
group from Mexico's government, KCS CFO Ronald Russ revealed in
JP Morgan conference Friday.

About 20% of TFM still belongs to the Mexican government,
although the "effective current economic interest" in the group
is 37.3% for KCS, 38.8% for Grupo TMM and indirectly 23.9% for
the government, Russ said.

Recently, Grupo TMM announced it is pursuing exchange of new debt
securities for all of the outstanding 9 1/2 percent Senior Notes
due 2003 and 10 1/4 percent Senior Notes due 2006 to help it
restructure its massive debts.

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.

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

CONTACT:  Grupo TMM
          Javier Segovia or Jacinto Marina
          Tel. 011-525-55-629-8866
                 or
          TFM
          Mario Mohar, 011-525-55-447-5811
          Investor Relations:
          Brad Skinner, 011-525-629-8725


HYLSA: Acerero Threatens Lawsuit Seeking Damages
------------------------------------------------
Mexican steel company Grupo Acerero is threatening to file a
lawsuit against Hylsa, the parent company of Hylsamex, Mexico's
second largest steel maker. The suit comes in retaliation to a
criminal case filed by Hylsa against Acerero businessmen Humberto
and Fernando Abaroa Lopez for alleged breach of trademark
regarding steel rebars.

According to lawyer Raul Cardenas, his clients were prompted to
leave Mexico for a year to escape arrest after the court issued
warrants and declined to grant bail. Subsequently, the courts
have decided no crime was committed, prompting the two to claim
damages.

CONTACT:  HYLSAMEX
          Investor Relations
          Margarita Gutierrez
          E-Mail: mgutierrez@hylsamex.com.mx

          Ricardo Sada
          E-Mail: rsada@hylsamex.com.mx
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452
          Mexico




               ***********


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

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

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

This material is copyrighted and any commercial use, resale or
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