TCRLA_Public/020911.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

           Wednesday, September 11, 2002, Vol. 3, Issue 180

                           Headlines

A R G E N T I N A

BANCO RIO: Places $135M in Commercial Paper in US Market
REPSOL YPF: Brazilian Court Suspends Deal With Petrobras
REPSOL: Strikes Sale Agreement With Other CLH Shareholders
PEREZ COMPANC: Pecom Invites Co-Exploration Bids
STEWART ENTERPRISES: Signs Sale Letter for Argentine Operations

TELEFONICA DE ARGENTINA: Not Selling Assets


B R A Z I L

ARACRUZ CELULOSE: S&P Revises Outlook Ratings to Negative
CSN: Corus May Pull Out of Deal On Election Concerns
CVRD: Not For Sale Despite Brazil's Recent Economic Woes
ELETROPAULO METROPOLITANA: Corrects Debt Repayment Report
LIGHT: $150M Debt Payment Likely Made on Due Date


C H I L E

AES GENER: Restructures Argentine Subsidiaries' Debt
AES GENER: Situation Remains Precarious Despite Negotiations
DISPUTADA: Tax, Legal Disputes Continue To Hamper Sale
ENAMI: Declining Interest Rates Lead To Losses


M E X I C O

AVANTEL: Mexico Scratches Ownership Conflict Resolution


P E R U

INTESABCI: Pulls Out of Latin America


U R U G U A Y

ANCAP: Advance Fuel Sale Planned To Back Refinery Upgrade
BANCO DE CREDITO: Boston Consulting Hired as Advisor


V E N E Z U E L A

SIDOR: Workers Stage Strike To Protest Counter Proposal

     -  -  -  -  -  -  -  -

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

BANCO RIO: Places $135M in Commercial Paper in US Market
--------------------------------------------------------
Banco Rio de la Plata, the Argentine subsidiary of Spanish
financial group SCH, issued commercial paper in the US Market
Monday with US-based Bank of America acting as placement
agent, reports Business News Americas.

Rio officials disclosed that the amount issued totaled US$135
million. The deal was placed in tranches of US$50 million and one for US$35
million. All the notes were issued with 78-day maturities.

A US$270-million letter of credit renovation from SCH New York
branch gives Rio the right to issue commercial papers as it
pleases within a period of a year, according to a Rio executive.
The original letter of credit was worth US$300 million.

Banco Rio, one of Argentina's largest banking companies with 273
branches and some 5,000 employees, 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


REPSOL YPF: Brazilian Court Suspends Deal With Petrobras
--------------------------------------------------------
A regional court in Brazil's Rio Grande do Sul state granted a
request made by Petrobras workers to suspend the US$2-billion
asset swap between the Brazilian federal energy company and
Spain's Repsol-YPF, reports Business News Americas.

As reported, the companies reached a deal in December 2001 under
which, Repsol-YPF would take over a 30% stake in the Alberto
Pasqualini (Refap) refinery in Canoas, Rio Grande do Sul state,
as well as 15% of the Albacora Leste production field in the
Campos basin. Repsol would also take control of 340 of Petrobras'
gasoline stations, of which 30% would be in Sao Paulo state and
the rest from Mato Grosso, Goias, Minas Gerais, Parana, Santa
Catarina and Rio Grande do Sul.

In Argentina, Petrobras would take control of the EG3 chain of
735 gasoline stations, as well as one refinery, two terminals,
and a lubricants and asphalt plant.

The deal angered Petrobras' workers, who claimed that the
Petrobras assets involved in the exchange were undervalued by
about US$384 million. The official valuation was carried out by
US investment bank, Morgan Stanley Dean Witter.

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

CONTACT:  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

          MORGAN STANLEY, DEAN WITTER & COMPANY
          1585 Broadway
          New York, New York 10036
          United States
          Phone: +1 212 761-4000
          Home Page http://www.msdw.com


REPSOL: Strikes Sale Agreement With Other CLH Shareholders
----------------------------------------------------------
Repsol-YPF SA announced it has reached a preliminary agreement
with two other shareholders of Spanish fuel transport company
Compania Logistica de Hidrocarburos SA to sell a 5% stake in CLH
to Portugal's GALP Energia SGPS SA. The two shareholders in CLH,
Dow Jones reveals, are Compania Espanola de Petroleos SA (Cepsa)
and BP PLC.

The transaction, the value of which wasn't disclosed, is expected
to conclude by the end of October following due diligence and
after the establishment of a definitive sale contract. The
contract will include an option to acquire another 5% stake in
CLH, with an option deadline of Dec. 15, 2002, Repsol said.

Previously, Repsol, Cepsa and BP have sold a 25% stake in CLH to
Canada's Enbridge Inc., a 5% stake to Spanish company Disa, and a
5% stake to China Aviation (Singapore) Corp. Ltd. CLH controls
100% of Spain's oil pipelines and 80% of its storage capacity.
The 2000 legislation on the liberalization of the energy sector
bans a single company from holding more than 25% of CLH.

Repsol-YPF has committed to reducing its stake in CLH to 25%,
Cepsa to 15% and BP to 5%.


PEREZ COMPANC: Pecom Invites Co-Exploration Bids
------------------------------------------------
Argentine energy company, Pecom Energia, announced it is inviting
bids for a farm-in at its onshore San Carlos natural gas
exploration area as well as its Tinaco natural gas exploration
block in Venezuela's Cojedes and Portuguesa states, relates
Business News Americas.

Petrolera San Carlos operates San Carlos, while Perez Companc de
Venezuela operates Tinaco, both of which are located in the
Barinas-Apure basin. Both Petrolera San Carlos and Perez Companc
de Venezuela are 100% Pecom subsidiaries, and each owns 100% of
its respective concession.

Pecom didn't disclose what percentage it is seeking to farm out.

Pecom Energia S.A., controlled by Perez Companc S.A., is the
largest independently owned energy company in the Latin American
region. Its business activities include oil and gas production
and transportation, refining and petrochemicals, power
generation, transmission and distribution as well as forestry
activities. Headquartered in Buenos Aires, the Company has
operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru
and Ecuador.

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


STEWART ENTERPRISES: Signs Sale Letter for Argentine Operations
---------------------------------------------------------------
Stewart Enterprises, Inc. (Nasdaq NMS: STEI) reported Monday its
results for the third quarter of fiscal year 2002 and announced
that it has signed a letter of intent for the sale of its
operations in Argentina. When this sale and the pending sale of
the Company's operations in France are closed, the divestiture of
all of its foreign businesses will be complete. Management
continues to pursue business improvements and, with the
divestiture program nearing completion and the Company's debt
objective in reach, is now beginning to focus its attention on
acquisition opportunities and other growth initiatives.

As required by the Sarbanes-Oxley Act, with the filing of the
Company's Form10-Q for the quarter ended July 31, 2002, William
E. Rowe, President and Chief Executive Officer, and Kenneth C.
Budde, Chief Financial Officer, will submit certifications to the
SEC that the financial information contained in the filing fairly
presents, in all material respects, the financial condition,
results of operations and cash flows of the Company for the
periods presented.

Mr. Rowe added, "We stand behind our filings and have always
closely scrutinized our disclosures and financial releases. We
believe it is imperative that our shareholders, our employees,
and the families we serve understand our commitment to the
trustworthiness of our business practices, the accuracy of our
financial statements, and the ethical conduct of our people."

As previously announced, principally as a result of the
significant devaluation of the Argentine peso and the depressed
economic conditions in Argentina, the Company reevaluated the
expected loss on the disposition of the assets held for sale and
incurred a pre-tax noncash, nonrecurring charge to earnings of
$18.5 million ($11.2 million or $.10 per share after tax) during
the quarter ended July 31, 2002. Were it not primarily for the
above noted events in Argentina, the Company believes the charge
to earnings would not have been necessary.

Excluding the noncash nonrecurring charge discussed above,
earnings for the third quarter and nine months ended July 31,
2002, were $8.7 million and $34.3 million, or $0.08 and $0.32 per
share, respectively. Including the charge, the Company reported a
net loss of $2.5 million for the third quarter of fiscal year
2002 and net earnings of $23.1 million for the nine months ended
July 31, 2002.

Mr. Rowe stated, "Excluding the noncash nonrecurring charge
related to the loss on assets held for sale, we achieved both our
EPS and EBITDA forecasts. We also achieved all of our other
objectives, including revenue, gross profit, operating profit,
debt reduction and cash flow. Our domestic operations have
produced strong results over these last three quarters."

Once the Company adopted a plan to sell its foreign operations
and certain small domestic operations during the third quarter of
2001, it began segregating the operating results of these
businesses from the operations it plans to retain. The discussion
and the supplemental schedules included in this press release
segregate these revenues and costs in order to present the
Company's ongoing operating results on a comparable basis within
its funeral and cemetery segments. The Company's "operations to
be retained" consist of those businesses it has owned and
operated for all of the current and prior fiscal year and which
it plans to retain ("existing or core operations") plus those
businesses it has opened during the current and prior fiscal year
and plans to retain ("opened operations"). "Closed and held for
sale operations" consist of those that have been sold or closed
during the current and prior fiscal year and the businesses that
are being offered for sale.

The Company experienced an increase in funeral revenues from its
operations to be retained of $2.2 million for the quarter. This
increase was driven by a 5.0 percent increase in the average
revenue per funeral call, partially offset by a 2.6 percent
decrease in the number of funeral calls performed by these
businesses for the quarter. The Centers for Disease Control and
Prevention ("CDC") data shows a decline in the number of deaths
across the country of 8.1 percent for the Company's fiscal
quarter.

Brian J. Marlowe, Chief Operating Officer, commented, "This is
the sixth consecutive quarter that we have reported same store
funeral volumes that compare favorably to the CDC data. While we
acknowledge that the CDC data is not perfect, we believe it to be
the best indicator we have to gauge our market retention.
Additionally, we have had positive average revenue comparisons in
20 of the last 21 quarters. With a goal of increasing our
averages 2 percent to 3 percent annually, we increased our core
average revenue per funeral call by 5.3 percent for the quarter
and 4.1 percent on a year-to-date basis. We continue to be
pleased with our ability to enhance our average revenue through
our use of customized funeral planning and personalization."

Mr. Marlowe continued, "The ultimate driver of our success is how
we make people feel and how we make a difference to each and
every family served by this Company every day. Through customized
funeral planning and arranger training, our people are helping
families to celebrate the life of each individual in a very
personal way. Our ability to enhance consumer choices and
personalization, combined with our sincere commitment to each
family, has a direct impact on our funeral averages and our
market share."

The Company experienced a decrease in cemetery revenues from its
operations to be retained of $1.1 million for the quarter
compared to the same period last year. As stated in the annual
guidance provided by the Company at the beginning of the year,
the yield from its perpetual care trust funds in fiscal year 2002
is expected to be lower than that achieved in fiscal year 2001.
Excluding the decrease in perpetual care trust earnings, cemetery
revenue from operations to be retained would have been slightly
up for the quarter compared to last year.

Funeral margins from operations to be retained improved during
the three and nine months, primarily due to the elimination of
goodwill amortization resulting from the adoption of Statement of
Financial Accounting Standards No. 142 ("SFAS No. 142") "Goodwill
and Other Intangible Assets." Also contributing to the margin
improvement were the increase in funeral revenue and the close
management of funeral costs.

Cemetery margins from operations to be retained increased for the
three months ended July 31, 2002, primarily due to the
elimination of goodwill amortization and an improvement in the
quality of the Company's receivables based on current write-off
experience, which is much improved from last year. This
improvement is substantially offset by the decrease in earnings
realized on the Company's perpetual care trust funds.

For the nine months ended July 31, 2002, cemetery margins from
operations to be retained decreased primarily due to a decreases
in perpetual care trust earnings, preneed property sales and
merchandise deliveries, combined with the high fixed cost nature
of the cemetery business, which is partially offset by the
elimination of goodwill amortization. Perpetual care trust
earnings are down in 2002 compared to 2001, due to a lower yield
currently being realized on the portfolio.

The Company announced that cash flow from operations for the nine
months ending July 31, 2002 was $57 million, and free cash flow
(defined as cash flow from operations adjusted for maintenance
capital expenditures) was $45 million. As of July 31, 2002 and
September 3, 2002, the Company reported outstanding debt of $635
million and $582 million, respectively, excluding the Company's
$2 million ROARS option premium.

Third Quarter Results For Operations To Be Retained

-- Funeral revenues increased $2.2 million to $73.0 million,
principally due to a 5.0 percent increase in the average revenue
per call, partially offset by a 2.6 percent decrease in the
number of services performed.

-- The cremation rate for these businesses was 38.6 percent for
the third quarter of 2002.

-- Cemetery revenues decreased $1.1 million to $59.7 million,
principally due to a decline in the average yield earned on the
Company's perpetual care trust funds.

-- Funeral margins were 24.8 percent compared to 21.1 percent for
the same period in 2001.

-- Cemetery margins were 24.7 percent compared to 23.8 percent
for the same period in 2001.

-- Gross margins were 24.7 percent compared to 22.3 percent for
the same period in 2001.

-- Had the Company implemented SFAS No. 142 in 2001, the funeral
margins, cemetery margins and gross margins of its operations to
be retained would have been 24.1 percent, 25.7 percent and 24.8
percent, respectively, for the third quarter of 2001.

-- Funeral home goodwill amortization amounted to $2.1 million
and cemetery goodwill amortization amounted to $1.1 million for
the third quarter of 2001.

-- Excluding the loss on assets held for sale, domestic EBITDA
(defined as earnings before interest expense, taxes, depreciation
and amortization), which is representative of operations to be
retained, was $42.6 million, representing 31.9 percent of
domestic revenue compared to $45.6 million, or 34.2 percent, in
the third quarter of fiscal year 2001. The reduction is primarily
due to decreases in investment income and other income.

Year-To-Date Results For Operations To Be Retained

-- Funeral revenues increased $6.7 million to $230.3 million,
principally due to a 3.8 percent increase in the average revenue
per call, slightly offset by a 0.4 percent decrease in the number
of services performed.

-- The cremation rate for these businesses was 38.4 percent for
the nine months ended July 31, 2002.

-- Cemetery revenues decreased $13.4 million to $175.4 million,
principally due to a reduction in preneed property sales and
merchandise deliveries and a decline in the average yield earned
on the Company's perpetual care trust funds.

-- Funeral margins were 28.3 percent compared to 24.4 percent for
the same period in 2001.

-- Cemetery margins were 25.4 percent compared to 26.9 percent
for the same period in 2001.

-- Gross margins were 27.0 percent compared to 25.5 percent for
the same period in 2001.

-- Had the Company implemented SFAS No. 142 in 2001, the funeral
margins, cemetery margins and gross margins of its operations to
be retained would have been 27.4 percent, 28.7 percent and 28.0
percent, respectively, for the first nine months of 2001.

-- Funeral home goodwill amortization amounted to $6.8 million
and cemetery goodwill amortization amounted to $3.5 million for
first nine months of 2001.

-- Excluding the loss on assets held for sale, domestic EBITDA,
which is representative of operations to be retained, was $139.1
million, representing 34.0 percent of domestic revenue compared
to $151.0 million, or 36.1 percent, in the first nine months of
fiscal year 2001. The reduction is primarily due to decreases in
cemetery gross profit, investment income and other income.

Third Quarter Results For Existing Operations

-- The Company experienced a 5.3 percent increase in the average
revenue per funeral call for the quarter, partially offset by a
4.0 percent decrease in the number of funeral calls performed by
businesses it has owned and operated for all of this fiscal year
and last and which it plans to retain.

Year-To-Date Results For Existing Operations

-- The Company experienced a 4.1 percent increase in the average
revenue per funeral call for the nine months, partially offset by
a 1.9 percent decrease in the number of funeral calls performed
by businesses it has owned and operated for all of this fiscal
year and last and which it plans to retain.

CDC Data (data provided by the Centers for Disease Control and
Prevention)

-- Data obtained from the CDC indicate a decrease in deaths
across the country of 8.1 percent during the Company's fiscal
quarter ended July 31, 2002 compared to the same period in the
prior year.

-- Data obtained from the CDC indicate a decrease in deaths
across the country of 4.5 percent during the first nine months of
the Company's fiscal year compared to the same period in the
prior year.

Cash Flow Results And Debt Reduction

-- The Company announced that cash flow from operations for the
nine months ended July 31, 2002 was $57 million and free cash
flow was $45 million.

-- As of July 31, 2002 and September 3, 2002, the Company
reported outstanding debt of $635 million and $582 million,
respectively, excluding the Company's $2 million ROARS option
premium.

Third Quarter Results For Total Operations

-- The Company reported a net loss of $2.5 million, or $.02 per
share, compared to a net loss of $199.3 million, or $1.85 per
share, in the third quarter of 2001.

-- Principally as a result of the significant devaluation of the
Argentine peso and the depressed economic conditions in
Argentina, the Company incurred a pre-tax noncash, nonrecurring
charge to earnings of $18.5 million ($11.2 million or $.10 per
share after tax) during the quarter ended July 31, 2002.

-- Excluding nonrecurring charges, net earnings were $8.7
million, or $0.08 per share, compared to $11.2 million, or $0.10
per share, in the third quarter of 2001. Pro forma net earnings
for the quarter ended July 31, 2001, adjusted for the elimination
of goodwill amortization as required by SFAS No. 142, would have
been $15.7 million, or $0.15 per share, excluding nonrecurring
charges.

(Nonrecurring charges include the loss on assets held for sale in
fiscal year 2002. Fiscal year 2001 nonrecurring charges include
the early extinguishment of debt, and the loss on assets held for
sale and other charges.)

-- Total funeral revenues decreased $19.3 million to $83.3
million primarily due to the disposition of the Company's foreign
operations and other assets.

-- Total cemetery revenues decreased $2.1 million to $61.0
million primarily due to a decline in the average yield earned on
the Company's perpetual care trust funds and the impact of the
Company's foreign operations which have been sold or are held for
sale. The Company experienced an annual average yield of 4.5
percent in its perpetual care trust funds for the quarter ended
July 31, 2002, compared to an annual average yield of 6.7 percent
for the corresponding period in 2001.

-- Excluding the loss on assets held for sale, EBITDA was $44.1
million compared to $54.4 million for the third quarter last
year. The reduction was primarily due to decreases in gross
profit from the Company's foreign operations, which have been
sold or are held for sale, and decreases in investment income and
other income.

-- Depreciation and amortization was $14.4 million for the third
quarter of 2002 compared to $21.0 million for the corresponding
period in 2001, which included $4.9 million in goodwill
amortization ($3.4 million domestic) for the third quarter of
2001.

-- Investment income was $0.2 million compared to $1.2 million
for the third quarter of 2001. The decrease is principally due to
the sale of the Company's Mexican operations where investment
income in the prior year resulted from an average cash balance of
$28.0 million earning an average rate of 8.4 percent.

-- Other income, net, was $0.6 million compared to $2.6 million
for the third quarter of 2001. The decrease is principally due to
the sale of excess cemetery property and other domestic assets in
the prior year.

-- Interest expense decreased $0.2 million to $15.6 million, due
principally to a $188.7 million decrease in the average debt
outstanding during the quarter ended July 31, 2002, partially
offset by an approximate 179 basis point increase in the
Company's average interest rate, resulting from higher interest
costs associated with debt incurred in the Company's refinancing
transactions, which occurred on June 29, 2001.

Year-To-Date Results For Total Operations

-- The Company reported net earnings of $23.1 million, or $.21
per share, compared to a net loss of $415.9 million, or $3.88 per
share, for the first nine months of 2001.

-- Excluding nonrecurring charges, net earnings were $34.3
million, or $0.32 per share, compared to $44.6 million, or $0.42
per share, in the first nine months of 2001. Pro forma net
earnings for the nine months ended July 31, 2001, adjusted for
the elimination of goodwill amortization as required by SFAS No.
142, would have been $57.8 million, or $0.54 per share, excluding
nonrecurring charges.

(Nonrecurring charges include the loss on assets held for sale in
iscal year 2002. Fiscal year 2001 nonrecurring charges include
the loss on assets held for sale and other charges, the early
extinguishment of debt, and the cumulative effect of the
accounting change relating to the adoption of the Securities and
Exchange Commission's Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements.")

-- Total funeral revenues decreased $48.7 million to $269.2
million primarily due to the disposition of the Company's foreign
operations and other assets.

-- Total cemetery revenues decreased $15.8 million to $179.6
million due to a reduction in preneed property sales and
merchandise deliveries, a decline in the average yield earned on
the Company's perpetual care trust funds and the impact of the
Company's foreign operations which have been sold or are held for
sale. The Company experienced an annual average yield of 5.8
percent in its perpetual care trust funds for the nine months
ended July 31, 2002, compared to an annual average yield of 7.9
percent for the corresponding period in 2001.

-- Excluding the loss on assets held for sale, EBITDA was $146.1
million compared to $175.6 million for the first nine months of
2001. The reduction was primarily due to a decrease in gross
profit from the Company's foreign operations, which have been
sold or are held for sale, a decrease in cemetery gross profit
and decreases in investment income and other income.

-- Depreciation and amortization was $42.4 million compared to
$60.1 million in 2001, which included $14.6 million in goodwill
amortization ($10.7 million domestic) for the first nine months
of 2001.

-- Investment income was $0.4 million compared to $4.8 million
for the first nine months of 2001. The decrease is principally
due to the sale of the Company's Mexican operations where
investment income in the prior year resulted from an average cash
balance of $25.3 million earning an average rate of 12.4 percent.

-- Other income, net, was $1.2 million compared to $5.8 million
for the first nine months of 2001. The decrease is principally
due to the sale of excess cemetery property and other domestic
assets in the prior year.

-- Interest expense increased $3.2 million to $48.4 million, due
principally to an approximate 254 basis point increase in the
Company's average interest rate, partially offset by a $198.5
million decrease in the average debt outstanding during the nine
months ended July 31, 2002. The increase in the average rates
resulted from higher interest costs associated with debt incurred
in the Company's refinancing transactions, which occurred on June
29, 2001.

Progress on Initiatives

The Company now has a letter of intent for the sale of its
operations in Argentina. When this sale and the pending sale of
the Company's operations in France are closed, the divestiture of
all of its foreign businesses will be complete. Management
expects that total proceeds from the sale of its foreign
operations, including tax benefits, will be between $240 million
and $245 million, which is at the top end of the previously
estimated range.

Since the beginning of fiscal year 2001, the Company has reduced
its debt balance by 38 percent, from $946 million to $582
million. The Company's goal is to achieve a debt balance of about
$500 million. With the foreign asset sale proceeds, including tax
benefits, that the Company expects to receive, combined with free
cash flow, the Company expects to reach this goal during fiscal
year 2003.

Mr. Rowe commented, "Since this management team accepted the
opportunity to transition this Company through its changing
environment three years ago, we have achieved a number of
strategic goals including refinancing our debt, deleveraging our
Company with the divestiture of our foreign operations,
significantly increasing our operating cash flow, trimming costs
and overhead, and growing our revenues from domestic operations
through internal strategies. Throughout our transition, we
remained disciplined and focused with a consistent message. We
have come through on the other side of this transition with a
stronger operating model and a healthier capital structure. With
our $500 million debt objective in reach, we are focusing our
attention on acquisition opportunities and other growth
initiatives."

Long-Term Growth Plan

Mr. Rowe commented, "We believe the biggest opportunities for
growth reside in the acquisition of multi-location businesses
that we think can achieve an attractive internal rate of return,
generate free cash and be accretive to earnings. We plan to
balance our acquisition activities by building combination
operations with third parties and in our own cemeteries and also
by opening stand-alone alternative service firms in selected
markets. We believe that we can achieve single-digit growth by
growing revenue from our existing businesses by 3 percent per
year while holding costs to 2 percent growth. However, our goal
is to return to double-digit growth, and we believe that we can
get there with the disciplined execution of our long-term growth
plan."

Mr. Rowe concluded, "As we enter this new phase, our passion
remains the same - to lead this industry by maximizing
shareholder value through solid operating performance, strong
cash flow and sound capitalization, to provide our employees with
competitive compensation and benefits, a quality work environment
and opportunity for advancement, and to provide each family we
serve with excellent quality, value and service."

Founded in 1910, Stewart Enterprises is the third largest
provider of products and services in the death care industry in
the United States, currently owning and operating 309 funeral
homes and 150 cemeteries domestically.

COMPANY FORECASTS FOR FISCAL YEAR 2002

Certain statements made herein or elsewhere by, or on behalf of,
the Company that are not historical facts are intended to be
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.

The forecasts included herein were prepared by the Company's
management for the purpose of providing all investors with
forward-looking financial information frequently sought by the
investment community. The forecasts have not been audited or
otherwise approved by the Company's independent accountants or by
any regulatory authority.

Accuracy of the forecasts is dependent upon assumptions about
events that change over time and is thus susceptible to periodic
change based on actual experience and new developments. The
Company cautions readers that it assumes no obligation to update
or publicly release any revisions to the forecasts made herein
and, except to the extent required by applicable law, does not
intend to update or otherwise revise the forecasts more
frequently than quarterly.

The forecasts are based on a variety of estimates and assumptions
made by management of the Company with respect to, among other
things, industry performance; general economic, market, industry
and interest rate conditions; preneed and at-need sales
activities and trends; fluctuations in cost of goods sold and
other expenses; capital expenditures; and other matters that
cannot be accurately predicted, may not be realized and are
subject to significant business, economic and competitive
uncertainties, all of which are difficult to predict and many of
which are beyond the Company's control. Accordingly, there can be
no assurance that the assumptions made in preparing the forecasts
will prove accurate, and actual results may vary materially from
those contained in the forecasts. More specific information about
factors that could cause actual results to differ materially from
these forecasts is included herein.

For these reasons, the forecasts should not be regarded as an
accurate prediction of future results, but only of results that
may be obtained if substantially all of management's principal
expectations and assumptions are realized. The Company does not
represent or warrant, and assumes no responsibility for, the
completeness, accuracy or reliability of the forecasts.

Cautionary Statements

The Company cautions readers that the following important
factors, among others, in some cases have affected, and in the
future, could affect, the Company's actual consolidated results
and could cause the Company's actual consolidated results in the
future to differ materially from the goals and expectations
expressed in the forward-looking statements included herein and
in any other forward-looking statements made by or on behalf of
the Company.

Risks Related to the Company's Business

The Company's ability to achieve its debt reduction targets and
to service its debt in the future depends upon the Company's
ability to generate sufficient cash, which depends on many
factors, some of which are beyond the Company's control.

The Company's ability to achieve its debt reduction targets in
the time frame projected by the Company depends upon the
Company's ability to generate sufficient cash from three main
sources: (1) funds received upon the completion of the pending
sale of assets in France and Argentina, (2) income tax benefits
associated with the foreign asset sales and (3) its ongoing
operations. The Company cannot control whether or when it will be
able to complete transactions for the sale of its remaining
foreign assets in France and Argentina. The timing of the receipt
of the income tax benefits depends on the rate at which the
Company can produce capital gains against which the asset sale
losses can be offset and the timing of the Company's filing for
capital loss carrybacks to apply against previously-taxed capital
gains. The Company's ability to generate cash flow from
operations depends upon, among other things, the number of deaths
in the Company's markets, competition, the level of preneed
sales, the Company's ability to control its costs, stock and bond
market conditions, and general economic, financial and regulatory
factors, much of which is beyond the Company's control.

The Company may experience declines in preneed sales due to
numerous factors including changes made to contract terms and
sales force compensation, or a weakening economy. Declines in
preneed sales would reduce the Company's backlog and revenue and
could reduce its future market share.

In an effort to increase cash flow, the Company modified its
preneed sales strategies early in fiscal year 2000 by increasing
finance charges, requiring larger down payments and shortening
installment payment terms. Later in fiscal year 2000, the Company
changed the compensation structure for its preneed sales force.
These changes, and the accompanying sales force attrition and
adverse impact on sales force morale, caused preneed sales to
decline. Although the Company does not anticipate making further
significant changes in these areas, it may decide that further
adjustments are advisable, which could cause additional declines
in preneed sales. In addition, a weakening economy that causes
customers to have less discretionary income could cause a decline
in preneed sales. Declines in preneed cemetery property sales
would reduce current revenue, and declines in other preneed sales
would reduce the Company's backlog and future revenue and could
reduce future market share.

Increased preneed sales may have a negative impact on cash flow.

Preneed sales of cemetery property and funeral and cemetery
products and services are generally cash flow negative initially,
primarily due to the commissions paid on the sale, the portion of
the sales proceeds required to be placed into trust and the terms
of the particular contract such as the size of the down payment
required and the length of the contract. In fiscal year 2000, the
Company changed the terms and conditions of preneed sales
contracts and commissions and moderated its preneed sales effort
in order to reduce the initial negative impact on cash flow.
Nevertheless, the Company will continue to invest a significant
portion of cash flow in preneed acquisition costs, which reduces
cash flow available for other activities, and, to the extent
preneed activities are increased, cash flow will be further
reduced, and the Company's ability to service debt could be
adversely affected.

Price competition could reduce market share or cause the Company
to reduce prices to retain or recapture market share, either of
which could reduce revenues and margins.

The Company's funeral home and cemetery operations generally face
intense competition in local markets that typically are served by
numerous funeral homes and cemetery firms. The Company has
historically experienced price competition primarily from
independent funeral home and cemetery operators, and from
monument dealers, casket retailers, low-cost funeral providers
and other non-traditional providers of services or products. In
the past, this price competition has resulted in losing market
share in some markets. In other markets, the Company has had to
reduce prices and thereby profit margins in order to retain or
recapture market share. In addition, because of competition from
these types of competitors in some key markets, in fiscal year
1999 the Company lowered its goals for increases in average
revenue per funeral service performed in the future. Increased
price competition in the future could further reduce revenues,
profit margins and the backlog.

Increased advertising or better marketing by competitors, or
increased activity by competitors offering products or services
over the Internet, could cause the Company to lose market share
and revenues or cause the Company to incur increased costs in
order to retain or recapture the Company's market share.

In recent years, marketing through television, radio and print
advertising, direct mailings and personal sales calls has
increased with respect to the sales of preneed funeral services.
Extensive advertising or effective marketing by competitors in
local markets could cause the Company to lose market share and
revenues or cause it to increase marketing costs. In addition,
competitors may change the types or mix of products or services
offered. These changes may attract customers, causing the Company
to lose market share and revenue or to incur costs in response to
competition to vary the types or mix of products or services
offered by the Company. Also, increased use of the Internet by
customers to research and/or purchase products and services could
cause the Company to lose market share to competitors offering to
sell products or services over the Internet. The Company does not
currently sell products or services over the Internet.

Earnings from and principal of trust funds and escrow accounts
could be reduced by changes in stock and bond prices and interest
and dividend rates or by a decline in the size of the funds.

Earnings and investment gains and losses on trust funds and
escrow accounts are affected by financial market conditions that
are not within the Company's control. Earnings are also affected
by the mix of fixed-income and equity securities that the Company
chooses to maintain in the funds, and it may not choose the
optimal mix for any particular market condition. The size of the
funds depends upon the level of preneed sales, the amount of
investment gains or losses and funds added through acquisitions,
if any. Declines in earnings from perpetual care trust funds
would cause a decline in current revenues, while declines in
earnings from other trust funds and escrow accounts could cause a
decline in future revenues and cash flow. In addition, any
significant or sustained investment losses could result in there
being insufficient funds in the trusts to cover the cost of
delivering services and merchandise or maintaining cemeteries in
the future. Any such deficiency would have to be covered by cash
flow, which could have a material adverse effect on the Company's
financial condition and results of operations.

Increases in interest rates would increase the Company's interest
costs on its variable-rate long-term debt and could have a
material adverse effect on the Company's net income and earnings
per share.

As of September 3, 2002, $167.4 million of the Company's long-
term debt was subject to variable interest rates, although $100
million of that amount was fixed pursuant to the terms of
interest rate swaps expiring in March of 2004 and 2005.
Accordingly, any significant increase in interest rates could
substantially increase the Company's interest costs on its
variable-rate long-term debt, which could decrease the Company's
net income and earnings per share materially.

Covenant restrictions under the Company's senior secured credit
facilities and senior subordinated note indenture limit the
Company's flexibility in operating its business.

The Company's senior secured credit facilities and the indenture
governing the senior subordinated notes contain, among other
things, covenants that restrict the Company's and the subsidiary
guarantors' ability to finance future operations or capital needs
or to engage in other business activities. They limit, among
other things, the Company's and the subsidiary guarantors'
ability to: borrow money; pay dividends or distributions;
purchase or redeem stock; make investments; engage in
transactions with affiliates; engage in sale leaseback
transactions; consummate specified asset sales; effect a
consolidation or merger or sell, transfer, lease, or otherwise
dispose of all or substantially all assets; and create liens on
assets. In addition, the senior secured credit facilities contain
specific limits on capital expenditures as well as a requirement
that the Company maintain a liquidity reserve that increases over
time as long as any of the 6.70% Notes or 6.40% ROARS are
outstanding. Furthermore, the senior secured credit facilities
require the Company to maintain specified financial ratios and
satisfy financial condition tests and prohibit payment of the
6.70% Notes and the 6.40% ROARS unless thereafter the Company
will have liquidity no less than $25 million, as defined.

These covenants may require the Company to act in a manner
contrary to its business objectives. In addition, events beyond
the Company's control, including changes in general economic and
business conditions, may affect its ability to satisfy these
covenants. A breach of any of these covenants could result in a
default allowing the lenders to declare all amounts immediately
due and payable. The Company believes that the completion of the
sale of its remaining foreign operations will not violate these
covenants.

The Company's foreign operations are subject to political,
economic, currency and other risks that could adversely impact
its financial condition, operating results or cash flow.

The Company's foreign operations are subject to risks inherent in
doing business in foreign countries. Risks associated with
operating internationally include political, social and economic
instability, increased operating costs, expropriation and complex
and changing government regulations, all of which are beyond the
Company's control. To the extent the Company makes investments in
foreign assets or receives revenues in currencies other than U.S.
dollars, the value of assets and income could be, and have in the
past been, adversely affected by fluctuations in the value of
local currencies.

Increased insurance costs may have a negative impact on earnings
and cash flows.

The terrorist attacks on September 11, 2001 in the United States
were unprecedented and have resulted in the insurance industry
increasing premiums for new policies generally. As the Company's
various insurance policies come up for renewal, management
believes it is likely that the Company's insurance costs will
rise. Although management expects this to have a negative impact
on earnings and cash flow, the magnitude of the increased costs
cannot be predicted at this time.

Risks Related to the Death Care Industry

Declines in the number of deaths in the Company's markets can
cause a decrease in revenues. Changes in the number of deaths are
not predictable from market to market or over the short term.

Declines in the number of deaths could cause at-need sales of
funeral and cemetery services, property and merchandise to
decline, which could decrease revenues. Although the United
States Bureau of the Census estimates that the number of deaths
in the United States will increase by approximately 1 percent per
year from 2000 to 2010, longer lifespans could reduce the rate of
deaths. In addition, changes in the number of deaths can vary
among local markets and from quarter to quarter, and variations
in the number of deaths in the Company's markets or from quarter
to quarter are not predictable. These variations can cause
revenues to fluctuate. The Company's comparisons of the change in
the number of families served to the change in the number of
deaths reported by the Centers for Disease Control and Prevention
("CDC") from time to time may not necessarily be meaningful. The
CDC receives weekly mortality reports from 122 cities and
metropolitan areas in the United States within two to three weeks
from the date of death and reports the total number of deaths
occurring in these areas each week based on the reports received
from state health departments. The comparability of the company's
funeral calls to the CDC data is limited, as reports from the
state health departments are often delayed, and the 122 cities
reported on by the CDC are not necessarily comparable with the
markets in which the Company operates. Nonetheless, the Company
believes that the CDC data is the most comprehensive data of this
kind available.

The increasing number of cremations in the United States could
cause revenues to decline because the Company could lose market
share to firms specializing in cremations. In addition, basic
cremations produce no revenues for cemetery operations and lesser
funeral revenues and, in certain cases, lesser profit margins
than traditional funerals.

The Company's traditional cemetery and funeral service operations
face competition from the increasing number of cremations in the
United States. Industry studies indicate that the percentage of
cremations has steadily increased and that cremations will
represent approximately 40 percent of the United States burial
market by the year 2010, compared to 25 percent in 1999. The
trend toward cremation could cause cemeteries and traditional
funeral homes to lose market share and revenues to firms
specializing in cremations. In addition, basic cremations (with
no funeral service, casket, urn, mausoleum niche, columbarium
niche or burial) produce no revenues for cemetery operations and
lower revenues than traditional funerals and, when delivered at a
traditional funeral home, produce lower profit margins as well.

If the Company is not able to respond effectively to changing
consumer preferences, the Company's market share, revenues and
profitability could decrease.

Future market share, revenues and profits will depend in part on
the Company's ability to anticipate, identify and respond to
changing consumer preferences. During fiscal year 2000, the
Company began to implement strategies based on a proprietary,
extensive study of consumer preferences it commissioned in 1999.
However, the Company may not correctly anticipate or identify
trends in consumer preferences, or it may identify them later
than its competitors do. In addition, any strategies the Company
may implement to address these trends may prove incorrect or
ineffective.

Because the funeral and cemetery businesses are high fixed-cost
businesses, positive or negative changes in revenue can have a
disproportionately large effect on cash flow and profits.

Companies in the funeral home and cemetery business must incur
many of the costs of operating and maintaining facilities, land
and equipment regardless of the level of sales in any given
period. For example, the Company must pay salaries, utilities,
property taxes and maintenance costs on funeral homes and
maintain the grounds of cemeteries regardless of the number of
funeral services or interments performed. Because the Company
cannot decrease these costs significantly or rapidly when it
experiences declines in sales, declines in sales can cause
margins, profits and cash flow to decline at a greater rate than
the decline in revenues.

Changes or increases in, or failure to comply with, regulations
applicable to the Company's business could increase costs or
decrease cash flows.

The death care industry is subject to extensive regulation and
licensing requirements under federal, state and local laws and
the laws of foreign jurisdictions where it operates. For example,
the funeral home industry is regulated by the Federal Trade
Commission, which requires funeral homes to take actions designed
to protect consumers. State laws impose licensing requirements
and regulate preneed sales. Embalming facilities are subject to
stringent environmental and health regulations. Compliance with
these regulations is burdensome on the Company, and it is always
at risk of not complying with the regulations.

In addition, from time to time, governments and agencies propose
to amend or add regulations, which could increase costs or
decrease cash flows. For example, foreign, federal, state, local
and other regulatory agencies have considered and may enact
additional legislation or regulations that could affect the death
care industry. Several states and regulatory agencies have
considered or are considering regulations that could require more
liberal refund and cancellation policies for preneed sales of
products and services, limit or eliminate the ability of the
Company to use surety bonding, increase trust requirements and
prohibit the common ownership of funeral homes and cemeteries in
the same market. If adopted by the regulatory authorities of the
jurisdictions in which the Company operates, these and other
possible proposals could have a material effect on the Company,
its financial condition, its results of operations and its future
prospects.

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

CONTACT:  STEWART ENTERPRISES INC., Metairie
          Kenneth C. Budde, 504/837-5880


TELEFONICA DE ARGENTINA: Not Selling Assets
-------------------------------------------
Francisco de Narvaez, the owner of local retail chain Tia and
shopping center holding Paseo Alcorta, suggested that Telefonica
de Argentina may be looking to sell its media properties Telefe
and Radio Control, reports Business News Americas.

"We are negotiating. I hope there is news soon," De Narvaez said,
adding that talks are still in preliminary stages, as Telefonica
has not yet decided how much of the properties it wants to sell.

However, a Telefonica spokesperson rejected De Narvaez's claim,
saying "We totally and completely deny that there are talks
between the company and Francisco de Narvaez."

Telefonica's statement is given further credibility by the fact
that the board of Telefonica's media subsidiary Admira recently
approved a decision not to sell the properties.

CONTACT:  TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar
          Contacts:
          Carlos Fernandez-Prida Mendez Nunez, Chairman
          Paul Burton Savoldelli, Vice Chairman
          Fernando Raul Borio, Secretary



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

ARACRUZ CELULOSE: S&P Revises Outlook Ratings to Negative
---------------------------------------------------------
Standard & Poor's Rating Services said Friday that it affirmed
the triple-'B'-minus local and single-'B'-plus foreign currency
corporate credit ratings of Brazilian forest products company
Aracruz Celulose S.A.

The outlook on the local currency rating was revised to negative
from stable. The foreign currency rating outlook is negative. The
change in outlook reflects the negative economic and financial
environment in Brazil. Total debt outstanding is US$890 million.

"The negative outlook on the local currency corporate credit
rating reflects the increasing risks to which Aracruz is exposed
by operating in Brazil. Although Aracruz's commodity-oriented
production and sound cost position allow it to adequately handle
the difficult economic environment in the near term, a prolonged
and continuing deterioration of the economic and financial
conditions in the country could impose increasing operating and
financial challenges on the company," stated Standard & Poor's
credit analyst Milena Zaniboni.

The negative outlook on the foreign currency corporate credit
rating reflects the outlook of the sovereign rating of the
Federative Republic of Brazil.

Although the local currency rating of Aracruz above that of the
Republic of Brazil indicates that the company could withstand
significant pressures resulting from country risk or sovereign
interference, a stressed sovereign scenario could impose threats
on the company's operations.

The ratings reflect Aracruz's leading cost position in the
cyclical, commodity hardwood pulp markets and conservative
financial policy. The rating is, however, constrained by the
company's narrow product focus and single manufacturing site in
Brazil, which makes it susceptible to the vulnerabilities of the
Brazilian economy.

As an exporter of commodity market pulp, Aracruz's operating
performance is little dependent on the growth prospects of the
local economy but rather follows the supply and demand dynamics
of the global market. Recovering pulp prices in the past few
months, and increased production capacity with the start up of
Fiberline C are expected to generate stronger cash flows from the
second semester of 2002 on.

The company's cash position (expected to be at $300 million by
the end of 2002) and capacity to internally fund its operations
provide an important shield against bank and capital markets
volatility. Exposure to exchange volatility is also small, as the
company's operational currency is the U.S. dollar - revenues and
70% of debt are denominated in dollars. Actually, the volatility
of the local currency is beneficial to Aracruz as a significant
portion of costs is incurred in local currency.

Aracruz is the world's leading producer of bleached eucalyptus
hardwood market pulp, with about 18% of the global supply. The
company has recently finished an expansion to 2 million tons
(started operating in May 2002), and the total additional output
is already placed with existing customers. Aracruz controls 100%
of its fiber needs, a pulp mill located within an average
distance of 180 kilometers from its three forest bases, and owns
a port terminal close to the mill.

Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-5501-8945

CONTACT:  ARACRUZ CELULOSE
          Rua Lauro Mller, 116, 40 andar
          22299-900 Rio de Janeiro, Brazil
          Phone: +55-21-3820-8111
          Fax: +55-21-3820-8202
          Webstie: http://www.aracruz.com.br
          Contacts:
          Carlos A. Lira Aguiar, President and CEO
          Walter L. Nunes, COO
          Agilio L. de Macedo Filho, CFO


CSN: Corus May Pull Out of Deal On Election Concerns
----------------------------------------------------
Believing that a left-wing government possibly taking power in
Brazil in next month's elections could jeopardize a potential
ownership in CSN, Anglo-Dutch steel producer Corus is working on
a "get-out" scheme to scrap the US$4.3-billion planned takeover
of the Rio de Janeiro-based flat steel.

Financial Times revealed that on Monday Corus said: "What we have
so far is a non-binding agreement. We could walk away from this
if we felt the deal was not in our interests."

Tony Pedder, Corus chief executive, will provide further details
of the company's options when presenting half-year results on
Thursday. He is expected to reiterate, given the information
available, the move still makes sense.

The deal was based on the idea that a combination of the two
companies would provide a useful outlet for steel in an important
emerging market, as well as giving Corus steelmaking and iron ore
sites in Brazil that have much lower costs than Europe.

If Corus decides to rethink the deal, it would have time to pull
out, or renegotiate terms, before its planned issue of takeover
documents to shareholders in November. Shareholders of both Corus
and CSN are due to vote on the agreement in early 2003.

Corus shareholders are due to own 62.4% of the combined Corus/CSN
group, and the balance will belong to the Brazilian company's
shareholders.

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

CONTACT:  CIA SIDERURGICA NACIONAL (CSN)
          Rua Lauro Muller 116-36 Andar, PO Box 2736
          Rio De Janeiro, Brazil, 22299-900
          Phone: +011-55-21-2586-1442
                 +011-55-21-2586-1347
          Home Page: http://www.csn.com.br/english/index.htm
          Contact:
          Antonio Mary Ulrich, Exec. Officer - Investor Relations


CVRD: Not For Sale Despite Brazil's Recent Economic Woes
--------------------------------------------------------
Rio de Janeiro-based mining giant CVRD is not for sale, but
instead remains a buyer. This was the announcement made by the
Company's president, Roger Agnelli, in a Business News Americas
report to respond to rumors that CVRD could be sold to South
African mining group.

Agnelli acknowledged that recession in Brazil and in developed
market economies has put pressure on strong Brazilian companies
like airplane manufacturer Embraer and Rio Grande do Sul long
steel maker Gerdau.

"But we're not all up for sale at the price of bananas," the
executive said in reference to Brazil's currency having lost 23%
of its value against the dollar this year.

"Just look at our recent growth, and we still have not stopped,"
the executive said.

CVRD continues to push into new markets like China, Agnelli said,
and is making "massive" investments of up to US$45 million a year
in exploration.

Meanwhile, Agnelli also denied rumors that one of CVRD's major
shareholders, Bradespar, the equity arm of Brazilian bank
Bradesco, was interested in selling its stake in the company.

"This is not true. Whoever is a CVRD shareholder knows what
future the Company has," he said.

CONTACT:  CVRD
          Media:
          Roberto Castello Branco, +55-21-3814-4540
          castello@cvrd.com.br

          Andreia Reis, +55-21-3814-4643
          andreis@cvrd.com.br

          Barbara Geluda, +55-21-3814-4557
          geluda@cvrd.com.br

          Daniela Tinoco, +55-21-3814-4946
          daniela@cvrd.com.br


ELETROPAULO METROPOLITANA: Corrects Debt Repayment Report
---------------------------------------------------------
Eletropaulo Metropolitano corrected a Business News Americas
report released Monday that stated the Sao Paulo state power
distributor has paid off a US$225-million bank loan with a
syndicate of bank led by US investment bank JPMorgan.

The Company, which is controlled by US-based AES Corp., said it
has extended renegotiations of the loan for another two weeks.

The loan expired on August 26, when Eletropaulo agreed to pay 15%
of the loan and related interest, and continue talks through this
Monday.

Eletropaulo said it hopes to complete talks over the remaining
US$191 million within the next two weeks. It said it wants to
secure a new two-year loan, most of which would be converted into
Brazilian reais.

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


LIGHT: $150M Debt Payment Likely Made on Due Date
-------------------------------------------------
Electricity distributor Light Servicos De Eletricidade S.A.,
controlled by the French state-owned Electricite de France (EDF),
was scheduled to pay US$150 million in debt September 6, Business
News Americas reports, citing local daily Folha de Sao Paulo

The loan, which was signed in 2000, was to be paid with medium
term notes held by Light group subsidiaries, said Light
spokesperson Cristina Carmo, adding that the loan represents
Light's last remaining short-term debt.

Light's CFO Roberto Ribeiro Pinto revealed that the Company has
met all its financial commitments, including a US$225 million
debt paid on its August 26 due date.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO

          ELECTRICITE DE FRANCE (EDF)
          Rue Louis-Murat
          75384 Paris Cedex 08,
          France
          Phone: +33-1-40-42-54-30
          Fax:   +33-1-40-42-79-40
          Home Page: http://www.edf.fr
          Contacts:
          Francois Roussely,  Chairman and CEO
          Yannick d'Escatha, COO, Industry Branch
          Jacques Chauvin, Chief Financial Officer

          ELECTRICITE DE FRANCE (INTERNATIONAL)
          30, Rue Jacques Ibert
          75017 Paris
          Phone: 33 (0) 1 40 42 22 22
          Fax :  33 (0) 1 40 42 31 83
          Home Page :  http://www.edf.fr
          Contact :
          M. Fang Deyi
          Phone: 33 (0) 1 40 42 18 68
          Fax :  33 (0) 1 40 42 18 89
          E-mail : deyi.fang@edf.fr



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

AES GENER: Restructures Argentine Subsidiaries' Debt
----------------------------------------------------
AES Gener, the Chilean subsidiary of US energy company AES Corp.,
reached an agreement with the Bank of America (BofA) to takeover
the US$82-million debt of its Argentine subsidiaries, Termoandes
and Interandes, Business News Americas reports, citing an AES
Gener statement.

Under the agreement, AES Gener will use the US$10 million portion
notes it had secured in a collateral account to repurchase US$5
million at the time of closing, and another US$5 million in
November. The agreement includes subsequent quarterly purchases
of the remaining notes until July 2004.

BofA owns the floating rate notes of Termoandes and Interandes,
with US$82 million face value, issued in 1999 and due in December
2007. The bank had the right to sell its floating rate notes to
AES Gener between October 31st 2002 and January 31st 2003, but
both parties agreed to negotiate an agreement ahead of schedule.

AES Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity with
an installed capacity of 1,757 MW composed of 1,512 MW of thermal
and 245 MW of hydro generating capacity. The company operates
most of the thermal electric power plants in the country. AES
Gener serves both the Central Interconnection System (SIC) and
Northern Interconnection System (SING) through various
subsidiaries and related companies. Gener is 98.65%-owned by AES.

CONTACT:  AES GENER S.A.
          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page: www.gener.com
          Contact:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer

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


AES GENER: Situation Remains Precarious Despite Negotiations
------------------------------------------------------------
AES Gener has refinanced US$452 million of debt this year,
including agreements with Bank of America, ABN Amro, and its
Colombian subsidiary Chivor's syndicate of banks, Business News
Americas reports.

But despite these debt negotiations, the Company's liquidity
remains critical, analyst Gonzalo Oyarce of ratings agency Feller
Rate suggested.

"Even though AES renegotiated a US$40 million debt with ABM Amro
Bank, renegotiated its US$82 million syndicated credit with the
Bank of America, and renegotiated its Colombian subsidiary
Chivor's debt for US$330 million after the Company had defaulted
on some payments, AES Gener's financial situation is still
deteriorating," Oyarce said.

Although these gestures have helped to ensure AES Gener's
September cashflow, they are insufficient considering the
Company's debts due 2005 and 2006, respectively, Oyarce
explained.

AES Gener faces a US$500 million payment on convertible bonds due
2005 and US$200 million related to a Yankee bonds issue due 2006.

"The solution for AES Gener could come from its parent company
AES injecting more capital into the Company, or helping its
subsidiary to offer attractive terms to the holders of its US$500
million in negotiable bonds," Oyarce said.


DISPUTADA: Tax, Legal Disputes Continue To Hamper Sale
------------------------------------------------------
The tax and legal disputes concerning the sale of Chilean copper
mine Disputada de las Condes Limitada continue to impede the
conclusion of the transaction.

U.S. oil company Exxon Mobil agreed to sell the Chilean mining
business to South African miner Anglo-American in May in a US$1.3
billion cash deal and had expected to close the deal June 30.

However, a conflict began when the Chilean government asked Exxon
to pay taxes on the sale profits. The amount is about US$40
million to US$300 million, depending on the sale structure. Exxon
continues to refuse to give in to the request.

According to Chilean Mining Minister Alfonso Dulanto, there are
several tax structures under the country's foreign investment law
for Exxon to choose from. He also expressed belief "that any
formula that implies not paying taxes is a transgression of the
spirit of the law." Dulanto though is hopeful Exxon would
consider the request, and that an accord could soon be reached.

Meanwhile, the government is also seeking recognition and payment
for rights held by state mining company, Enami. Enami has the
right to buy Disputada.

The principal assets of Disputada include Los Bronces copper
mine, El Soldado copper mine and the Chagres smelter, all located
in Chile's central region. Disputada's two copper mines produced
252,000 tonnes of copper in 2001. Chile is the world's No.1
copper producer.

CONTACT:  EXXONMOBIL (U.S.)
          Cynthia Langlands
          Phone: 972/444-1107

          DISPUTADA (CHILE)
          Guillermo Garcia
          Phone: 562/230-6488


ENAMI: Declining Interest Rates Lead To Losses
----------------------------------------------
The drop in lower interest rates resulting from depressed global
markets pushed Enami further into the red, the Company said in a
Business News Americas report.

According to the Chilean state minerals company, its loss in the
first seven months of this year amounted to US$12 million
compared to a loss of US$19.8 million for the same-period in
2001.

Non-operating loss came in at US$15 million compared to US$17
million in same-period last year, while it made an operating
profit of US$3 million as opposed to an operating loss of US$4
million in the January-July period of last year.

According to the report, Enami expects to post a loss for this
year as a whole of US$24 million compared to last year's negative
earnings of US$28 million.

Enami has debts of US$480 million, a large chunk of which derives
from clean-up operations at its Ventanas and Paipote copper
smelters.

Just recently, the Company gave its blessing to proceed with an
efficiency and improvement plan, which has three main parts.

The first deals with Enami's long-term strategy to develop medium
and small-scale miners. The second involves splitting the
production and development operations of the Company to allow
greater transparency, and the third entails increasing Enami's
value by introducing cost-cutting measures worth US$32 million.

According to mining minister Alfonso Dulanto, approval of the
plan paved the way for the government to create a plan for
restructuring the Company's crippling debt. Once President
Ricardo Lagos receives the plan to overhaul Enami's organization
and management, the finance ministry will work on a formula to
settle the Company's debts, Dulanto said.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

AVANTEL: Mexico Scratches Ownership Conflict Resolution
-------------------------------------------------------
After granting several extensions to deadlines by which long
distance operator Avantel must resolve legal complications
arising from its foreign-dominated ownership structure, Mexico's
economy ministry eventually decided not to set a time limit.

"The [economy ministry] is not going to set a deadline for
Avantel, but we are going to work with them in a framework that
would let them regularize their situation, without their assets
losing value," Mexican daily La Reforma quoted a government
source close to the situation as saying.

Local law limits foreign ownership of fixed line telecoms
companies to 49%. In Avantel's case, the Company is technically
100% foreign-owned because Citigroup acquired a 55% stake in
Avantel SA when it bought Mexico's second-largest bank Grupo
Financiero Banamex-Accival SA for US$12.5 billion last year.
Bankrupt US-carrier WorldCom owns the remaining 45% of the
Company but decided to put it up for sale in May.

Originally, the Mexican government gave Avantel until February 7,
2002 to resolve the carrier's ownership conflict, but later
extended the deadline to September 7.

Avantel presented the government with a plan to bring it back
into compliance with the Mexican law. Under it, employees of
Citigroup's Banamex unit would nominate the majority of Avantel
directors. The eventual decision on such a proposal would be in
the hands of Citibank and Banamex, an Avantel spokesperson told
Business News Americas.

Pyramid Research senior analyst Gabriela Baez suggested that the
proposal indicates that Citgroup and Banamex view keeping Avantel
in their own hands as a better alternative to selling it.

The proposal would suit their purposes as it represents a kind of
investment vehicle that would allow them to fit under the
technical ownership limitations while really maintaining control,
she said.

Avantel is Mexico's second largest fixed line communications
company, with about 850,000 lines in service. Perhaps as a result
of the uncertainty surrounding its ownership structure and the
WorldCom bankruptcy, Avantel's customer base has declined by 13%
during the last four months, from a high of 980,000 lines in
April.

Credit Suisse First Boston analyst Dan Reingold in May valued
Avantel at US$200 million, reflecting a plunge in
telecommunications stocks in the last two years.

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

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



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

INTESABCI: Pulls Out of Latin America
-------------------------------------
Instead of selling only its Brazilian subsidiary Banco Sudameris
Brazil to local bank Itau, a deal which is expected to go forward
next year, Italian financial group IntesaBci has decided to make
a complete exit in Latin America "over the next couple months,"
relates Business News Americas.

The decision comes amid the group's struggles to improve its
performance and focus more on domestic operations.

IntesaBci, one of the largest European banks in the retail
segment with almost 13 million clients, including 9 million
individuals and one million companies in Italy, announced it will
now sell its entire Latin American banking arm, the Banque
Sudameris franchise.

But the biggest surprise in the IntesaBci announcement lies in
the fact that it has decided to offload its Peruvian subsidiary,
Banco Wiese Sudameris. The bank, the second-largest in Peru, has
had some difficult years and the Italians have injected hundreds
of millions of dollars to improve its balance sheet.

Peru's largest bank, Banco de Credito del Peru, and its third
largest, BBVA Banco Continental, are unlikely to be interested in
Wiese Sudameris, but mid-sized banks looking to grow, such as
Citibank and BankBoston, could be potential suitors, according to
Carla Valverde, a banking analyst at local brokerage Interfib
Bolsa.

Valverde told Business News Americas that Wiese Sudameris' loan
portfolio has shown a rapid deterioration in the last couple of
months and therefore the price factor is likely to be a very
important variable for potential suitors.

CONTACT:  IntesaBci
                Investor Relations:
                Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
          E-mail: investorelations@intesabci.it
          Contacts:
                Andrea Tamagnini, Tel: (39) 02 8850 3180
                Marco Delfrate, Tel: (39) 02 8850 2622
                Cristina Paltrinieri, Tel: (39) 02 8850 3571
                Carla De Alberti, Tel: (39) 02 8850 3159
                Giorgio Grossi, Tel: (39) 02 8850 3189
                Anna Gervasoni, Tel: (39) 02 8850 3466
                Maria Vittoria Buscicchio, Tel: (39) 02 8850 7114
                Manuela Banfi, Tel: (39) 02 8850 3273

          BANCO WIESE SUDAMERIS
          Dionisio Derteano, 102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6000
          Fax: +51-1-440-7945
          Website: http://www.bws.com.pe
          Luis F. Wiese de Osma, Chairman
          Eugenio Bertini, CEO
          Carlos Palacios Rey, President, Executive Committee



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

ANCAP: Advance Fuel Sale Planned To Back Refinery Upgrade
---------------------------------------------------------
Uruguay's state oil company Ancap plans to sell in advance
350,000 cubic meters of fuels and announce the winner in the next
few days.

Citing Ancap director Pedro Abdala, Business News Americas
reports that Ancap is confident of securing US$60 million from
the transaction and will then use the proceeds to complete the
US$120-million upgrade of La Teja refinery.

The upgrade is being undertaken by Argentina's Techint, and Ancap
had secured a US$115-million leasing agreement from a syndicate
of banks led by US-based Citibank, Abdala explained.

In May, Uruguay's sovereign rating was downgraded to junk status
that resulted to the suspension of the loan after about US$60
million had been disbursed, Abdala said. Although no more money
will be paid out, Ancap will continue to repay the loan on the
original terms, which include one year's grace period.

"Although the loss of investment grade could have ended up in
problems with the banks, they have manifested their aim of
maintaining the terms agreed initially and will not demand the
cash that has been paid out," Abdala said.

Ancap sought short-term mechanisms to continue with the work and
ensure it is completed on schedule in March 2003. These would be
replaced by the revenues from advanced sales.

However, the Company plans to replace these short-term solutions
by selling in advance a large part of the surplus that will be
produced once the refinery is upgraded, Abdala explained.

The refinery upgrade is nearly six months behind the original
schedule, Abdala said. Ancap directors decided to put work on
hold, at a cost of about US$5 million, as the Company evaluated
how it fitted in with the search for a strategic partner.

Work was restarted in September 2001 after the directors decided
the refinery upgrade was necessary regardless, and would have to
be completed, he said, adding that he had been opposed to the
delay but had been outnumbered by the other four board members.

CONTACT:  Administracion Nacional de Combustibles, Alcohol y
                Portland (ANCAP)
          Central Administration Paysando
          s/n esq. Avenida del Libertador
          Montevideo, 11100 Uruguay
          P.O. Box 1090
          Phones: +598(2) 902 0608
                          902 3892
                          902 4192
          Fax +598(2) 902 1136 902 1642
          Telex ANCAP UY 23168
          E-mail: info@ancap.com.uy
          Home Page: www.ancap.com.uy
          Contact:
          Benito E. Pi eiro, Chief Executive Officer
          Phone +598(2) 900 2945
                +598(2) 902 0608 Ext. 2253
          Fax +598(2) 908 9188


BANCO DE CREDITO: Boston Consulting Hired as Advisor
----------------------------------------------------
US-based Boston Consulting Group will advise suspended Uruguayan
bank Banco de Credito in regards to its future business plan,
says Business News Americas, citing local daily El Observador.

St. George, already a 49% stakeholder in Credito, has shown an
interest in taking control of the bank through capitalization. It
has already reached an agreement with the Uruguayan government
with regards to the bank's capital situation however the latter
requested a business plan before making a final decision on
Credito's future and re-opening.

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.

According to an El Observador report, more than 80% of the bank's
clients have accepted a plan presented by the bank to gradually
return their frozen savings.

ADVISER:  BOSTON CONSULTING GROUP (Boston)
          Exchange Place, 31st Floor
          Boston, Massachusetts 02109 USA
          Phone: +617 973 1200
          Fax: +617 973 1339

          Buenos Aires Office
          Bouchard 547-10
          (1106) Buenos Aires ARGENTINA
          Phone: +54 114 314 2228
          Fax: +54 114 314 2229

          Mexico City Office
          Colonia Bosques de las Lomas
          Mexico, D.F. C.P. 05120 MEXICO
          Phone: +52 55 5258 9999
          Fax: +52 55 5258 0444

          Monterrey Office
          Vasconcelos 101 Ote - 5
          Colonia Residencial San Agustin
          Garza Garcia, N.L.C.P. 66260 MEXICO
          Phone: +52 81 8368 6200
          Fax: +52 81 8368 0808



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

SIDOR: Workers Stage Strike To Protest Counter Proposal
-------------------------------------------------------
Workers at Venezuelan steel maker Siderurgica del Orinoco CA
(Sidor) staged a 16-hour strike Monday to protest management's
counter-proposal in an on-going labor dispute, Dow Jones reports,
citing Sutiss union president Ramon Machuca.

Some progress had been made in talks on new company methods to
calculate salaries, but the latest management proposal failed to
satisfy union demands.

"I can say with all honesty that there has been a change in the
company's salary structure, to the detriment of its workers,
affecting their families' income," Machuca said.

Employees were due to return to work Monday night, but may go on
an indefinite work slowdown as of Thursday if company executives
don't accede to their demands, Machuca said.

Sidor's work force currently totals about 8,500, including about
2,000 private contractors. Venezuela's government last month
capitalized US$350 million of a US$700-million debt Sidor had
with the state-owned Bandes investment bank, raising the
country's stake to 42% from 30%.

State-owned until January 1998, Sidor is now semiprivate, with
the remainder owned by the Amazonia consortium, made up of
Mexico's Hylsamex SA (E.HMX), Argentina's Siderar SA (E.SDR),
Venezuela's Sivensa (E.SVS) and Brazil's Usinas SA (E.UUS).

CONTACT:  SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Venezuela
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page: www.sidor.com.ve/




               ***********


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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