TCRLA_Public/020912.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, September 12, 2002, Vol. 3, Issue 181



ARGENTINE BANKS: Government Considers Bankruptcy Protection
GRUPO GALICIA: Transfering To Nasdaq SmallCap
REPSOL YPF: Petrobras To Appeal Court's Injunction On Asset Swap
REPSOL YPF: Partners With Petrobras To Export Gas To Brazil


TYCO INTERNATIONAL: Names New Executive Vice President, CFO


CELG: Eletrobras Delays Purchase As Elections Loom
CELG: Eager To See Changes In Annual Rates
CSN: Claims Adequate Liquidity To Cover Maturing Debts
CSN: Corus Maintains Stance In Planned Takeover
ELETROPAULO METROPOLITANA: Gets Two-Week Extension On Debt Talks

ELETROPAULO METROPOLITANA: Seals Debt Agreement With Bondholders
INTESABCI: S&P Applauds Latin American Exit


ENAMI: Government Seeks State Guarantees To Restructure Debts
MANQUEHUE NET: Foreign Owners May Exit Before Year-end


GRUPO MEXICO: May Use Inbursa Credit To Pay Unit's Debt
GRUPO TMM: Changes Ticker Symbol, Reorganization's Final Step
ISPAT INTERNATIONAL: Concludes Swap, Imexsa Credit Amendments


SIDOR: Braces For Another Union Strike

     - - - - - - - - - -


ARGENTINE BANKS: Government Considers Bankruptcy Protection
In a new bid to prevent banking clients from withdrawing cash
from the ailing financial system, the Argentine government is
considering filing a form of bankruptcy protection for its banks,
reports Dow Jones.

The report details a plan by Economy Minister Roberto Lavagna to
shelter the country's entire financial system by initiating
bankruptcy procedures, a move that would protect banks from being
forced to return deposits to savers.

Meanwhile, the government on Tuesday offered Argentines the
chance to swap frozen bank deposits in exchange for government
bonds. Lavagna said up to 60% of savings in higher-rate, longer-
term bank accounts, known as "term deposits," could be freed
under the move.

Since December, Argentines have been prohibited from withdrawing
money from term deposits and restricted in taking funds from
other accounts as the government sought to prop up a banking
system that bled US$20 billion in deposits in the first 11 months
of last year.

Under the new plan, savers will be able to use up to ARS7,000
(US$1,944) from their term deposits to buy government bonds that
will mature in 2013. The savers will receive dollars when the
debt matures at a rate of one greenback for every ARS1.8

Savers also will be permitted to buy private bank debt using up
to ARS10,000 (US$3,000) of the cash they have placed in higher-
rate accounts. They will receive pesos back when the bonds
mature, also in 2013.

However, it was unclear whether depositors would be enticed by
the voluntary new offer.

GRUPO GALICIA: Transfering To Nasdaq SmallCap
The Nasdaq Stock Market delayed delisting Grupo Financiero
Galicia SA, the holding company for Argentina's largest publicly
traded bank, until December, relates Bloomberg. The U.S.
exchange, which threatened to delist the Company after it failed
to post required information in July due to Argentina's ongoing
political, economic and legal uncertainties, decided to transfer
the stock to the Nasdaq SmallCap Market from the Nasdaq National
Market leading to a change in the Company's U.S. ticker to GGAEC
from GGALE.

Galicia's American Depositary Receipts (ADR's) will list on the
Nasdaq SmallCap Market beginning Friday thanks to an exception
from the SmallCap public disclosure filing requirements, the
Company said. The exception is due to expire on December 2.

The Buenos Aires-based bank said it expected to provide a signed
audit opinion and financial results in accordance with U.S.
generally accepted accounting principles by the deadline.

"The Company believes that it can meet these conditions, there
can be no assurance that it will do so," Galicia said.

Grupo Galicia's biggest borrower is the Argentine government,
which defaulted on $95 billion of bonds in December and devalued
the peso. The company's inability to produce financial statements
for U.S. regulators underscores the difficulties it faces in
gauging losses as the South American nation slips deeper into

          Teniente General Juan D. Per>n 456, Piso 3
          1038 Buenos Aires, Argentina
          Phone: (54 11) 4343 7528 / 9475
          Home Page:
          Eduardo J. Escasany,  Chairman and CEO
          Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires

REPSOL YPF: Petrobras To Appeal Court's Injunction On Asset Swap
Brazil's federal energy company Petrobras won't quietly accept an
injunction recently handed down by a regional court in southern
Brazil. The ruling would lead to a suspension of the US$2-billion
asset swap with Spain's Repsol-YPF, suggests Business News

Petrobras said it would make an appeal against the injunction,
which came after five Petrobras employees challenged the asset
swap, saying the Brazilian company's assets were undervalued by
about US$384 million. The official valuation was carried out by
US investment bank, Morgan Stanley Dean Witter.

"Petrobras will study the presentation of an appeal, but
clarifies that this decision does not affect what has happened up
to this moment," a spokesperson said, explaining that the assets
were formally exchanged at the time the contract was signed in
December 2001.

Any compensation as a result of devaluation of the Argentine peso
was included in the original contract the spokesperson said.

However, local papers have it that the court said the final sale
agreement cannot be signed until oil regulator ANP and anti-trust
authority Cade publish their final decision.

Early this week, ANP said it has approved the deal and informed
its decision to the justice ministry's Economic Defense
Department (SDE). Cade has not yet presented its own decision.

          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:
          Av. Roque S enz Pe a, 777.
          C.P 1364. Buenos Aires

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

REPSOL YPF: Partners With Petrobras To Export Gas To Brazil
Repsol YPF SA, Europe's fifth-largest oil company, finalized a
partnership agreement with Petrobras to export natural gas it
produces in Bolivia to Brazil, Expansion reports. Under the
agreement, Repsol will produce the gas from its San Antonio and
San Alberto fields in Bolivia to be sold in Brazil by Petrobras,
Expansion said, without saying how much gas will be exported or
where it got the information.


TYCO INTERNATIONAL: Names New Executive Vice President, CFO
Tyco International Ltd. (NYSE: TYC, BSX: TTYI) announced
Wednesday that David J. FitzPatrick has been appointed Executive
Vice President and Chief Financial Officer for the company. Mr.
FitzPatrick joins Tyco from United Technologies Corporation,
where he has been Senior Vice President and Chief Financial
Officer since 1998.

Edward D. Breen, Chairman and Chief Executive Officer of Tyco,
said, "One of my highest priorities is building an exceptionally
capable management team that will bring top talent and experience
to the challenges and opportunities we face at Tyco. Dave
FitzPatrick is a world-class executive with exceptional
credibility in the financial community and I am extremely pleased
that he is joining the new team at Tyco. His experience and
accomplishments at United Technologies and earlier at Kodak and
General Motors are right on target for the needs here. Dave's
respect and reputation among the financial community for
uncompromising integrity, and his overall grasp of financial and
business issues, are strengths that I value highly. He is a
perfect fit for Tyco."

Mr. FitzPatrick said, "Tyco represents a tremendous opportunity
for me. The company's operating businesses are familiar to me and
playing a role in maximizing value with Ed Breen and his
management team is a great professional challenge. Ed's
commitment to building a strong management team dedicated to the
highest standards of corporate governance was a prerequisite.
Tyco faces significant challenges, yet I am confident we will
meet them while serving the interests of investors, customers and

Mr. FitzPatrick's appointment is effective immediately. He
succeeds Mark Swartz, who, as previously reported, has resigned
from the company.

Mr. FitzPatrick has served as Senior Vice President and Chief
Financial Officer for United Technologies Corp. since June 1998.
United Technologies Corp. (UTC) is a global leader of building
systems and aerospace products. Carrier, Otis, Pratt & Whitney,
Hamilton Sundstrand, and Sikorsky are among its well-known

Earlier, Mr. FitzPatrick was Vice President and Corporate
Controller for Eastman Kodak Company. He also enjoyed an 18-year
career with the General Motors Corporation, culminating with his
responsibilities as Chief Financial Officer, Cadillac Luxury Car

Mr. FitzPatrick graduated from the J. L. Kellogg School at
Northwestern University with a master's degree in management. He
also holds a bachelor's degree in accounting from the University
of Illinois, where he graduated with high honors.


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

CONTACT: Gary Holmes (Media)

         Kathy Manning (Investors)


CELG: Eletrobras Delays Purchase As Elections Loom
Brazil's federal power company Eletrobras' purchase of shares in
Companhia Energetica de Goias (CELG) may wait until after
presidential elections in October, says Business News Americas.
Under the initial agreement, Eletrobras would pay the Goias state
government about US$127 million for a 49% stake in CELG.
Eletrobras' board of directors is now questioning the validity of
the US$127 figure.

CELG is struggling with debts of about US$52 million and
Eletrobras seeks to step in to revive the Company before putting
it on the block for privatization. However, all four leading
presidential candidates have expressly opposed any more
privatizations once they take office.

Should Eletrobras not be allowed to sell CELG, the latter would
join the list of five state power companies that Eletrobras took
control of in 1996. These companies were also slated for a rapid
turnaround and subsequent privatization, but economic and
political circumstances prevented a quick sale. Now, Eletrobras
may find itself burdened with these companies for a while.

          Rua 2 - Qd. A-37 - Edificio Gileno Godoi
          Jardim Goias - Goiania - Goias
          CEP: 74805-180
          Phone:  (0XX62)   243-2222
          Fax:  (0XX62) 243-2100
          Home Page:
          Jose Walter Vazquez Filho,  President
          Phone: (0XX62) 243-1001
          Samuel Albernaz, Administrative Director
          Phone: (0XX62) 243-1031
          Javahe de Lima, Economic-Financial Dir./Investor
          Phone: (0XX62) 243-1041

CELG: Eager To See Changes In Annual Rates
CELG anxiously awaits the annual rates adjustment undertaken by
power regulator Aneel, reports Business News Americas. The
Company's concession contract completes another year on September
12, and CELG hopes to have the adjustment settled before that
date. However, Brazil's power regulator Aneel has said that it
cannot authorize any price adjustments as long as CELG has
overdue debts.

CSN: Claims Adequate Liquidity To Cover Maturing Debts
CSN will be able to pay US$140 million in promissory notes coming
due in the second week of October as it has still enough cash
reserves to cover the said payment, business daily Valor
Economico suggests.

According to the report, the steelmaker has US$450 million in its
treasury and continues to negotiate new credit lines. CSN
recently obtained US$70 million in trade finance, says the
report. CSN expected to obtain US$100 million but ended up with a
two-year loan paying 3.75% on top of Libor, the report adds.

Apprehensions among investors over the country's debt situation
and the upcoming presidential elections have tightened credit
accessibility for many Brazilian firms. To reduce risk, many
Brazilian companies are opting to pay off their debts before the
new president assumes office in January 2003 instead of rolling
them over.

To see latest financial statements:

          Rua Lauro Muller 116-36 Andar, PO Box 2736
          Rio De Janeiro, Brazil, 22299-900
          Phone: +011-55-21-2586-1442
          Home Page:
          Antonio Mary Ulrich, Exec. Officer - Investor Relations

CSN: Corus Maintains Stance In Planned Takeover
Corus Group PLC reiterated its commitment to buy CSN for US$4.3
billion in stock and debt despite the political and economic
turmoil in Brazil. The statement comes after the Financial Times
released a report suggesting that the Anglo-Dutch steel producer
was preparing an "escape" plan to scrap its planned takeover of
CSN. The disengagement was said to be based on belief that a
left-wing government possibly taking power in Brazil in next
month's elections could jeopardize a potential ownership in the
Rio de Janeiro-based flat steel. Concern is that it may lead to
the nationalization of important industrial plants, the newspaper

However, according to Corus spokesman Mike Hitchcock, the
transaction doesn't include withdrawal penalties and Corus
therefore doesn't need an "escape" plan should either side walk
away from the purchase.

"We're not working on a get-out plan," Hitchcock said. "We're
keen to do this merger and we hope to bring this to a successful
completion during the first quarter of next year."

ELETROPAULO METROPOLITANA: Gets Two-Week Extension On Debt Talks
A group of banks led by J.P. Morgan Chase & Co. granted
Eletropaulo Metropolitana SA a two-week extension on talks
regarding the payment of $191 million in debt. According to
Bloomberg, the banks agreed to continue talks until Sept. 23.

Eletropaulo, in a statement, said it hopes "to finalize
negotiations and the documentation to renew the balance in the
mount of US$191 million for a period of 24 months and have its
biggest part converted into reais."

The Company's failure to reach an agreement with banks
underscores its struggles to pay about US$280 million in debt
maturing through the end of the year. Brazil's currency has
tumbled 26% so far this year, making it more expensive for
companies with large dollar-denominated debt to meet obligations.

Eletropaulo, which last month paid US$34 million of the US$225
million loan, had until September 9 to complete the discussions
over terms of the debt extension.

          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          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:
          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

ELETROPAULO METROPOLITANA: Seals Debt Agreement With Bondholders
Eletropaulo Metropolitana SA struck a deal Friday with the
holders of BRL350 million worth of local debt maturing Oct. 1,
Dow Jones reports, citing local financial newspaper Valor
Economico. Terms of the deal include Eletropaulo paying 23%
interest on the bonds. Holders will receive the interest on the
debentures Oct. 1, while the principal will be paid in 23 monthly

The agreement doesn't include the BRL350 million in debentures
coming due in April 1 2003, the local daily said, adding that
bondholders preferred to wait until early next year to see how
the Company fares with its debt renegotiations.

The Brazilian power utility, which is a unit of AES Corp., is
struggling under the weight of its debt burden amidst a chaotic
financial environment. The Company has been in negotiations with
creditors in recent weeks for the extension of maturities on
payments on hundreds of millions in foreign currency debt.

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.

INTESABCI: S&P Applauds Latin American Exit
Bernard De Delonjevialle, a Standard & Poor's Milan-based banking
analyst, heartily approved of a decision by Italian financial
group IntesaBci to pull out of Latin America completely. In a
Business News Americas report, the analyst deemed the move
positive for IntesaBci, adding it could contribute to a future
change in the group's long-term foreign currency outlook from
negative to stable.

IntesaBci's original plan was to sell only its Brazilian
subsidiary Banco Sudameris Brazil to local bank Itau. The deal is
expected to go forward next year. However, the increasingly
volatile Latin American markets continued to deteriorate the
Italian group's asset quality and risk profile. The difficulties
are prompting it to sell the entire Sudameris franchise, which
has been the group's banking arm in Latin America.

Perhaps the biggest surprise in IntesaBci's announcement was 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.

Exposure to Latin America has "weighed heavily" on IntesaBci
during the last couple of years as the Sudameris franchise has
reported mainly losses to the consolidated balance sheet, De
Delonjevialle said.

Latin American exposure was one of two factors that prompted a
change in IntesaBci's long-term foreign currency outlook in
February from stable to negative. The other factor was the
group's exposure to large international corporations.

CONTACT:  IntesaBci
          Investor Relations:
          Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
                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

          Dionisio Derteano, 102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6000
          Fax: +51-1-440-7945
          Luis F. Wiese de Osma, Chairman
          Eugenio Bertini, CEO
          Carlos Palacios Rey, President, Executive Committee


ENAMI: Government Seeks State Guarantees To Restructure Debts
As part of an effort to restructure debt of Enami, the Chilean
government submitted a bill to congress that would provide state
guarantees for US$160 million in debts held by the state-owned
minerals company. The legislation is tagged "extra urgent," --
meaning each chamber has a maximum of 10 days to vote on the bill
that would provide state guarantees for US$1.5 billion in total.

Enami reportedly has debts totaling US$480 million and must reach
an agreement with creditor banks to renegotiate some US$240
million of short-term debts in September.

The new legislation, which is also seen benefiting other
companies such as state subway operator Metro, for its US$1
billion line 4, Valparaiso urban rail network Merval, for its
stage IV upgrade, and state railroad company EFE, for its
Metrotren services, is necessary because the state-guaranteed
debt would mature after the end of the current government, led by
President Ricardo Lagos, which is due to leave office early 2006.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Home Page:
          Jorge Rodriguez Grossi, President

MANQUEHUE NET: Foreign Owners May Exit Before Year-end
Embattled Chilean local exchange provider Manquehue Net may see
its foreign shareholders leave before year-end, according to a
report released by Business News Americas. A company source said:
"The internal order [of the company] is going to change, but that
should not be looked at as different shareholders than the ones
already present," implying that local shareholders would assume
the foreign shareholders' stakes.

Manquehue's foreign shareholders are US-based Williams
Communications and the UK's National Grid. These two
shareholders' commitment has been put in doubt as they themselves
are having problems of their own. Williams is currently
undergoing bankruptcy proceedings in the US, while National Grid
has said it wants to withdraw from all its South American
telecoms operations.

Recently, Manquehue sources confirmed that local shareholders
will be the only ones contributing to the Company's expected
CLP2-billion capital increase. Morever, the source also said that
while Manquehue would not be closed to the prospect of a new
shareholder, they are no longer actively looking for buyers.

Manquehue's four primary shareholders are Chilean gas company
Metrogas (25.6%), local group Rabat (21.2%), Williams
Communications (16.4%), and UK National Grid (30%). The Company
has 96,000 lines in service across 22 boroughs of the capital
city Santiago.

          Av. Condor 796, Enterprise City,
          Huechuraba Santiago Chile
          Phone: 00 562 243 8800
          Fax: 00 562 248 7292
          EMAIL: info@manquehue.netl
          Home Page:
          Mr. Miller Williams, President
          Sr.Jos, Luis Rabat Vilaplana, Vice President


GRUPO MEXICO: May Use Inbursa Credit To Pay Unit's Debt
Angelo Garcia, a Vector stock broker analyst, suggested that the
ailing copper producer Grupo Mexico will use a US$250 million
credit from the Inbursa bank to pay debts of its mining
subsidiary Grupo Minero Mexico, says Business News Americas.

The move follows a downgrade on the ratings of the world's third
largest copper producer to "selective default" by Standard &
Poor's for failing to pay principal worth US$26 million on
another debt.

Simultanously, Banamex Citgroup analysts revealed that Asarco,
another Grupo Mexico subsidiary, is facing environmental
commitments with the US government amounting to US$500 million.

The Company will continue negotiating with US authorities for
authorization to sell the 54% stake that Asarco holds in Southern
Peru Copper Corporation to American Mining Company, another Grupo
Mexico unit.

"With these resources they'll clean up Asarco's debts. In case
the permission to sell is denied, it will obtain a credit through
American Mining Company to backup its US subsidiary," Garcia

           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

           Ave. Caminos del Inca 171
           Urb. Chacarilla del Estanque
           Santiago de Surco
           Lima 33, Peru
           Tel: +51 1 372 1414
           Fax: +51 1 372 0238
           Home Page:
           German Larrea Mota-Velasco, Chairman & CEO
           Oscar Gonzalez Rocha, President & Director General
           Daniel Tellechea Salido, VP - Finance

           ASARCO, INC.
           2575 E. Camelback Rd., Ste. 500
           Phoenix, AZ 85016
           Phone: 602-977-6500
           Fax: 602-977-6701
           Home Page:
           German Larea Mota-Velasco, Chairman & CEO
           Genaro Larrea Mota-Velasco, President
           Daniel Tellechea Salido, VP & CFO

GRUPO TMM: Changes Ticker Symbol, Reorganization's Final Step
Mexico City, September 10 2002 - Grupo TMM (NYSE: TMM and TMM/L),
the largest Latin American multi-modal transportation and
logistics company, and owner of the controlling interest in Grupo
Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM),
announced Tuesday that "TMM" will replace the current "TMM/L"
stock symbol on the New York Stock Exchange effective Friday,
September 13, 2002.

Pursuant to shareholder approval of a reclassification of the
company's shares at a special meeting held on August 28, 2002,
each of the company's Series "L" shares will be exchanged for
Series "A" shares on a one-for-one basis effective Friday,
September 13, 2002. The company's "A" shares currently trade
under the ticker "TMM".

"We reclassified our two stock series into one for operational
simplicity and ease of communication within the investment
community," explained Javier Segovia, the company's president.
"Our new organizational structure is a publicly traded
corporation with all operations conducted through individually
branded and focused subsidiary corporations. We believe that this
reorganization has streamlined Grupo TMM's corporate structure
and aligned the interests of all shareholders more closely."

Headquartered in Mexico City, Grupo TMM is the premier Mexican
multimodal transportation company and logistics provider. Through
its branch offices and network of subsidiary companies, Grupo TMM
provides a dynamic combination of ocean and land transportation
services within Mexico. Grupo TMM also has the controlling
interest in Transportación Ferroviaria Mexicana (TFM), which
operates Mexico's Northeast railway and carries over 40 percent
of the country's rail cargo. Visit Grupo TMM's web site at,TFM's web site at
Both sites offer Spanish/English language options.

To see financial statements:

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

ISPAT INTERNATIONAL: Concludes Swap, Imexsa Credit Amendments
Ispat International N.V. ("Ispat"), (NYSE: IST; AEX: IST),
announced Monday that Ispat Mexicana, S.A. de C.V. ("Imexsa"),
Ispat's Mexican operating subsidiary, has completed its exchange
offer for all outstanding 10-1/8% Senior Structured Export
Certificates due 2003 of Imexsa Export Trust No. 96-1 (the
"Senior Certificates"). When the exchange offer expired at 5:00
p.m., New York City time, on September 4, 2002, 100% of the
Senior Certificates had been tendered. Under the terms of the
exchange offer, Imexsa exchanged 10-5/8% Senior Structured Export
Certificates due 2005 to be issued by Imexsa Export Trust No. 96-
1 (the "New Senior Certificates") for Senior Certificates validly
tendered and accepted for exchange. The New Senior Certificates
are fully and unconditionally guaranteed by Ispat, Grupo Ispat
International S.A. de C.V. ("Grupo") and certain of the
subsidiaries of Imexsa on a senior basis. The New Senior
Certificates are also secured on a pro rata basis with Imexsa's
bank loans by liens on certain assets of Imexsa and by a pledge
of the stock of Imexsa and Grupo.

Imexsa also reported that it has completed amendments to each of
its bank loans providing for, among other things, deferral of a
substantial majority of its amortization obligations through

Dresdner Kleinwort Wasserstein served as financial advisor to

This announcement is not an offer to purchase or a solicitation
of consents with respect to any Senior Certificates or an offer
of Senior Notes for sale. Securities may not be offered and sold
in the United States absent registration or an exemption from
registration. Any public offering of securities to be made in the
United States must be made by means of a prospectus that may be
obtained from the issuer or selling security holder and will
contain detailed information about the company and management, as
well as financial statements.

          T. N. Ramaswamy, Director Finance

          Annanya Sarin, Head of Communications
          +44-20-7543-1162, or +31-10-404-6738

          John McInerney, Investor Relations
          Citigate Dewe Rogerson, +1-212-419-4219


SIDOR: Braces For Another Union Strike
The head of Sutiss labor union warned Siderurgica del Orinoco
(Sidor) that the largest union may go on strike as early as next
week if the Venezuelan steelmaker fails to respond to their
demands at the end of the week, relates Bloomberg.

"If there is no agreement, we will take more drastic actions,"
Sutiss head, Ramon Machuca, said. "We are hoping there will be an

The warning came while Sidor is trying to overcome the effects of
a 22-day strike last year that cost it US$60 million. That strike
led to the company's second debt restructuring in two years.

In December, the company defaulted, and in July said it had
reached a preliminary agreement with banks and the government to
restructure US$1.45 billion in debt.

The union also held a 15-hour strike Monday. The two groups are
involved in a conflict revolving around benefits such as

"The Company made some unilateral changes to the contract," he
said. The two sides signed a new agreement in May 2001. It
expires in 18 months, Machuca said.

Sidor has lost money every year since it was sold by the
government in 1997. 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%.

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