TCRLA_Public/020919.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 19, 2002, Vol. 3, Issue 186



BANCO SUQUIA: Banex Joins List of Potential Purchasers
EDENOR: S&P Downgrades Currency Ratings to `D'
IMAGEN SATELITAL: Claxson Extends Exchange Offer Eight Days
TELECOM ARGENTINA: Initiates Debt Talks With Creditors


GLOBAL CROSSING: Selling former HQ
TYCO INTERNATIONAL: 8-K Filing Claims Restatement Unnecessary
TYCO INTERNATIONAL: May Sell Emergia Stake To Telefonica
TYCO INTERNATIONAL: S&P Keeps Ratings On CreditWatch, Negative
TYCO INTERNATIONAL: Ex-Exec's Have Trouble Posting Bail


BANCO FIAT: Searches for Partner as Part of Reorganization
ELETROPAULO METROPOLITANA: Bear Stearns Cuts Recommendation
EMBRATEL: Hires MS&CR2 To Aid In Debt Restructuring
EMBRATEL: Signs Three-Year Outsourcing Contract With BB
TUPY: President Ousted As Part of Reorganization Process


COEUR D'ALENE MINES: Provides Update on Debt Reduction Efforts
DISPUTADA: Exxon Holds `No Comment' Line On Agreement Reports
EDELNOR: Files For Chapter 11 Bankruptcy Protection In the U.S.
EDELNOR: Case Summary & 20 Largest Unsecured Creditors


SEVEN SEAS: Announces Operational, Financial Update


EMELEC: May Sue Big Debtors To Recover $15M In Debt


UNEFON: Files $900M Lawsuit Against Nortel, Delays Unefon Deal


MINERA VOLCAN: Finalizes Debt Agreement With Banks


BANCO COMERCIAL: International Banks To Aid In Capitalization


SIDOR: Union, Labor Ministry Meeting Resolves Conflict

     - - - - - - - - - -


BANCO SUQUIA: Banex Joins List of Potential Purchasers
Another bank has expressed interest in buying intervened bank
Banco Suquia, whose operations were handed over to Banco Nacion.
The intervention came after its parent, the French banking group
Credit Agricole, decided to leave Argentina.

According to an El Cronista report, Argentine bank Banco Banex
expressed its interest in buying Suquia just days after local
business group Petersen Inversiones (PISA) submitted to both
Banco Nacion and the central bank an offer to buy Suquia.

"We're really interested in getting the Cordoba entity," a Banex
director told El Cronista.

Suquia is one of three banks that were taken over by federally-
owned Banco Nacion earlier this year when the French Agricole
decided to pull out of Argentina. The two other local banks are
Banco Bisel and Entre Rios. The government opted to hand the
banks over to Banco Nacion, rather than suspending operations,
considering the important role they play in their respective
provinces' local economies.

The federal bank is now in the process of selling the three banks
but its still not clear if Nacion will handle the sale of the
three former Credit Agricole banks, a task the central bank has
claimed as its own.

Credit Agricole was among the foreign banks that stopped funding
Argentine units after a run on deposits late last year that was
followed by a US$95-billion government debt default and currency

          25 de Mayo 160 Cordoba
          5000 Cordoba
          Phone: 0351-422-2048
          Fax: 0351-420-0279
          Home Page:
          Bernard Pierre Jean Brousse, Vice-President
          Nestor Jose Belgrano, Director

          Monte Caseros 128
          3100 Entre Rios
          Phone: 0343-4201200
          Fax: 0343-4213869
          Contact: Alberto Roque Ferrero, Vice-President

          BANCO BISEL S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Phone: 0341-4200300
          Home Page:
          Guillermo Harteneck, President
          Jean Luc Perron, Vice President
          Bernard Brousse, Vice President

EDENOR: S&P Downgrades Currency Ratings to `D'
Argentine electric distributor Empresa Distribuidora y
Comercializadora Norte's (Edenor) had its local and foreign
currency ratings downgraded to `D' from `CC-' and `SD',

The downgrade, according to Reuters, was prompted by the
utility's failure to meet a US$37.5-million payment due on
September 16th. The scheduled payment was an installment of the
US$250 million floating rate notes with final maturity in June

Edenor has requested Central Bank's authorization to make
interest payments on the notes and is negotiating with its
bondholders to extend the principal maturity to 2003. This
negotiation is part of a general rescheduling of the Company's
approximately US$510 million debt. Edenor has retained JP Morgan
as advisor for the process.

The company has also been pursuing a power tariff increase to
stave off an impending bankruptcy. Its managing director, Henri
Ducre, has admitted Edenor could go bankrupt unless it is allowed
to hike power tariffs to offset the effects of inflation and the
depreciation of the peso.

Edenor is Argentina's largest electricity distribution company
serving approximately 2.3 million customers in the northwestern
half of greater Buenos Aires and the northern portion of the city
of Buenos Aires.

          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mai: to
          Home Page:

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

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

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

The expiration date for the Exchange Offer has been extended from
5:00 p.m. New York City time on September 16, 2002, to 5:00 p.m.
New York City time on September 24, 2002, unless further
extended.  As of 5:00 p.m. September 16, 2002, Claxson had
received tenders from holders of approximately U.S.$12.7 million
principal amount of the outstanding Old Notes.

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

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

The company's press release does not constitute an offer to sell
or the solicitation of an offer to buy, nor shall there be any
sale of, the new notes in any state of the United States in which
such offer, solicitation or sale would be unlawful.

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

          Press - Alfredo Richard, SVP, Communications

          Investors - Ezequiel Paz, AVP, Corporate Finance
          Web site:

TELECOM ARGENTINA: Initiates Debt Talks With Creditors
After missing a payment on part of its US$3.2-billion debt,
Telecom Argentina, the country's No. 1 telephone company, began
debt restructuring talks with creditors Tuesday, Sept. 17,
reports Reuters.

"In the process of renegotiating our financial debt, we had an
informative meeting with our creditors today," Telecom Argentina
spokesman Pablo Talamoni said.

Telecom, the most indebted company in Argentina, did not mention
a specific haircut for existing debt, Talamoni said, adding that
discussions would last "as long as is necessary."

Telecom Argentina is 54.7% owned by Nortel Inversora, a holding
company held in equal parts by France Telecom and Telecom Italia.

To see financial statements and accompanying notes:

          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109


GLOBAL CROSSING: Selling former HQ
The headquarters of the bankrupt telecommunications firm Global
Crossing is up for sale, according to a Associated Press report.
The firm's founder and president, Gary Winnick is currently
looking for a buyer for the property.

Pacific Capital Group, one of Winnick's investment firms,
acquired the complex for US$41.5 million in 1998. Global Crossing
then leased it for US$400,000 a month through one of its
subsidiaries, North Crescent Realty. Global Crossing broke it
lease last April, but Pacific Capital continues to use some of
the offices.

The complex was designed by Architect Paul Williams. Modeled
after an Italian villa, it symbolized Global Crossing's
flamboyant ways, with its elaborate gates, statues, fountains and
reflecting pools. Winnick reportedly worked in a replica of the
Oval Office he had built as part of the project.

At least US$7.5 million was spent on the property's renovations.
According to regulatory filings, Global Crossing footed at least
US$3.2 million of the bill.

The plaza also houses two other buildings, one built in 1938 for
MCA, and the other built in 1963 for Litton Industries. Office
space in these two structures totals 124,000 square feet. The
real estate firm Cushman & Wakefield was hired to sell the

The firm received several proposals on the property, reports
Martin Morgenstern, one of Cushman & Wakefield Senior directors.
Ideas include turning the complex into a boutique hotel or a
medical office. However, he declined to elaborate whether the
property would fetch more or less than what Pacific Capital paid.

The listing came a day after Global Crossing submitted its
reorganization plan with a New York bankruptcy court.

Last week, Winnick received a subpoena from the House Energy and
Commerce Committee, requiring him to answer questions on Global
Crossing's accounting practices. He is scheduled to appear before
the panel on Sept. 24.

          Becky Yeamans, +1-974-410-5857,

          Tisha Kresler, +1-973-410-8666

          Ken Simril, +1-310-385-5200

TYCO INTERNATIONAL: 8-K Filing Claims Restatement Unnecessary
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) filed
Tuesday a Form 8-K report with the Securities and Exchange
Commission on its investigation, review and analysis of
transactions between and among the Company and its subsidiaries
and the Company's officers and directors, including the improper
conduct of its former Chief Executive Officer, former Chief
Financial Officer and former Chief Corporate Counsel.

The Company said the improper conduct and the related misuse of
Company funds by its former management does not require material
adjustments to Tyco's prior financial statements because the
expenditure of these funds, while unauthorized, has already been
expensed in its financial statements.

The Company also said the improper conduct of its former
management has damaged Tyco. The amount of money improperly
diverted by Tyco's former senior executives from the Company to
themselves is very small in comparison with Tyco's total revenues
and profits, but it is very large by any other relevant
comparison; and the extent of the former executives' misconduct
has harmed Tyco's reputation and credibility with investors,
lenders and others. In the interest of restoring confidence in
the Company, the Company's disclosures in the 8-K filing go
beyond what the law requires, or what would ordinarily be
disclosed in such a filing.

The Company said that this pattern of improper and illegal
activity occurred for at least five years prior to June 3, 2002,
when former CEO L. Dennis Kozlowski resigned, and that this
activity was concealed from the Board and its relevant
committees. The nature of such conduct, to the extent it is now
known by Tyco, is described in the filing. The areas covered in
this filing include:

-- Relocation Programs, under which certain executive officers,
including Mr. Kozlowski, former CFO Mark Swartz and former Chief
Corporate Counsel Mark Belnick used the Company's relocation
program to take non-qualifying interest-free loans and
unauthorized benefits that were not generally available to all
salaried employees affected by relocations. Under the program,
Mr. Kozlowski improperly borrowed approximately $61,690,628 in
non-qualifying relocation loans to purchase real estate and other
properties, Mr. Swartz borrowed approximately $33,097,925 and Mr.
Belnick borrowed approximately $14,635,597.

-- The "TyCom Bonus" Misappropriation, in which Mr. Kozlowski
caused Tyco to pay a special, unapproved bonus to 51 employees
who had relocation loans with the Company.  The bonus was
calculated to forgive the relocation loans of 51 executives and
employees, totaling $56,415,037, and to pay compensation
sufficient to discharge all of the tax liability due as a result
of the forgiveness of those loans.  This action was purportedly
related to the successful completion of the TyCom Initial Public
Offering.  The total gross wages paid by the Company in this
mortgage forgiveness program were $95,962,000, of which amount
Mr. Kozlowski received $32,976,000 and Mr. Swartz received
$16,611,000.  These benefits were not approved by, or disclosed
to, the Compensation Committee or the Board of Directors.
However, the employees who received these bonuses were led by Mr.
Kozlowski to believe that they were part of a Board-approved

-- The "ADT Automotive Bonus" Misappropriations, in which Mr.
Kozlowski authorized Tyco to pay cash, award restricted shares of
Tyco common stock and purportedly forgive additional loans and
make related tax payments to approximately 17 Tyco officers and
employees -- even though the relocation loans of each of these 17
persons had already been paid in full.  Mr. Kozlowski and Mr.
Swartz received cash bonuses, restricted shares and "relocation"
benefits valued at approximately $25,566,610 and $12,844,632
respectively.  These benefits were not approved by or disclosed
to the Compensation Committee or the Board of Directors.  As with
the TyCom unauthorized bonus, other senior executives were misled
by Mr. Kozlowski to believe that the ADT Automotive award of
restricted shares was a Board-approved program.

-- The Key Employee Loan (KEL) Program, in which certain
executive officers borrowed money for purposes other than the
payment of taxes due upon the vesting of restricted shares, or
borrowed in excess of the maximum amount they were permitted
under the program.  Mr. Kozlowski was, by a large margin, the
greatest abuser of this program.  By the end of 2001, Mr.
Kozlowski had taken over 200 KEL loans -- some for millions of
dollars and some as small as $100 -- and his total borrowings
over that time exceeded $250 million.  Approximately 90% of Mr.
Kozlowski's KEL loans were non-program loans, which he used to
fund his personal lifestyle, including speculating in real
estate, acquisition of antiques and furnishings for his
properties (including properties purchased with unauthorized
"relocation loans") and the purchase and maintenance of his
yacht.  Mr. Swartz also borrowed millions in non-program loans.
Like Mr. Kozlowski, Mr. Swartz used those unauthorized loans to
purchase, develop and speculate in real estate; to fund
investments in various business ventures and partnerships; and
for miscellaneous personal uses having nothing to do with the
ownership of Tyco stock.  Tyco is currently evaluating the KEL
program in light of recent enactment of a prohibition upon loans
by public companies to directors and executive officers.

-- Attempted Unauthorized Credits to Key Employee Loan Accounts,
in which Mr. Kozlowki and Mr. Swartz attempted to erase an
outstanding $25 million KEL indebtedness to Mr. Kozlowski and
$12.5 million in KEL indebtedness to Mr. Swartz without the
knowledge or approval of the Compensation Committee.  Mr.
Kozlowski, through his attorneys, has acknowledged to Tyco that
he sought no approvals for these credits and that, if they were
entered as a credit to his KEL account, it was done so
improperly, and that he is therefore obligated to repay these
amounts to Tyco.  Mr. Swartz has also agreed to repay his
forgiven indebtedness with interest and has repaid most of the
amounts.  Tyco has reversed these entries and a related
unauthorized entry, thereby increasing the outstanding balances
for the key employee loan accounts of each individual involved.

-- Executive Compensation, including authorized and unauthorized
compensation to Mr. Belnick, which totaled $34,331,679 for the
years 1999-2001.  Belnick's compensation resulted from a secret
agreement that tied Mr. Belnick's compensation to Mr. Kozlowski's
compensation, thereby giving Mr. Belnick an undisclosed incentive
to aid and facilitate Mr. Kozlowski's improper diversion of
Company funds to Mr. Kozlowski's personal benefit.  The
undisclosed terms of Messrs. Kozlowski's and Belnick's agreement
were incorporated in a letter dated August 19, 1998 and signed by
Mr. Kozlowski.  Mr. Kozlowski and Mr. Belnick agreed that the
letter would not be disclosed to the Tyco Board, the Board's
Compensation Committee or the Tyco Human Resources department.
Mr. Belnick did, however, keep a copy of the undisclosed
agreement in his personal office.

-- Perquisites in excess of $50,000 per year for Mr. Kozlowski
and Mr. Swartz.  These perquisites were required to be reported
in a proxy to the extent they exceeded $50,000.  However, these
amounts were not reported in the proxy because Mr. Kozlowski and
Mr. Swartz represented that they would reimburse the Company for
amounts in excess of $50,000. However, in most cases Messrs.
Kozlowski and Swartz failed to reimburse the Company for all
perquisites in excess of $50,000.  Mr. Kozlowski also caused Tyco
to make available to him various properties that the Company
owned for his purported business use.  Tyco has now discovered
that Mr. Kozlowski periodically made personal use of properties
in North Hampton, NH, Boca Raton, FL, New York City and New
Castle, NH.

-- Self-Dealing Transactions and Other Misuses of Corporate
Trust, including Tyco properties purchased by or from Mr.
Kozlowski without disclosure to or authorization by the
Compensation Committee.  For example, Mr. Kozlowski and others
caused a Tyco subsidiary to purchase property in Rye, New
Hampshire from Mr. Kozlowski on July 6, 2000 for $4,500,000.
After an appraisal in March 2002 valued the property at
$1,500,000, Tyco wrote down the carrying value of the property to
the appraised value and charged Mr. Kozlowski's $3,049,576
overpayment to expense.  Mr. Kozlowski also used millions of
dollars of Company funds to pay for his other personal interests
and activities, including a $700,000 investment in the film
"Endurance"; more than $1 million for an extravagant birthday
party celebration for his wife in Sardinia; over $1 million in
undocumented business expenses, including a private venture;
jewelry, clothing, flowers, club membership dues and wine; and an
undocumented $110,000 charge for the purported corporate use of
Mr. Kozlowski's personal yacht, "Endeavour."  Mr. Kozlowski also
tampered with evidence under subpoena, purchased a New York City
apartment at its depreciated rather than its market value, and
took personal credit for at least $43 million in donations from
Tyco to charitable organizations.

-- Information Concerning Other Transactions Between Tyco and its
Directors, which includes detail about transactions between the
Company and certain directors.

Actions Taken by the Company

The 8-K filed Tuesday also includes previous announcements of
actions taken by Tyco to address the issues the Company has been
facing. These include:

-- A lawsuit against Mr. Kozlowski for breach of fiduciary
duties, fraud and other wrongful conduct.  This suit seeks to
recover actual and consequential damages, including
misappropriated or otherwise unauthorized payments fraudulently
made at Mr. Kozlowski's direction to himself, a former director
and other senior executives and key managers; repayment of
outstanding loans made to Mr. Kozlowski by a Company subsidiary;
disgorgement of all compensation paid to Mr. Kozlowski from 1997
through 2002; forfeiture of all benefits awarded to Mr. Kozlowski
from 1997 through 2002; and compensatory, consequential, special
and punitive damages suffered by Tyco as a result of Mr.
Kozlowski's wrongful conduct, including his breaches of fiduciary
duties and misappropriations of Tyco funds and assets.

-- A lawsuit against Mr. Belnick for a broad pattern of
misconduct, including using Company funds for personal gain.

-- A lawsuit against former director Frank Walsh for breaching
his fiduciary responsibilities by taking a $20 million "finders
fee" in connection with the CIT acquisition, without the
knowledge or approval of the Board.

-- The appointment of John A. Krol, former Chairman and CEO of
E.I DuPont, to the Board of Directors.

-- The appointment of Eric Pillmore as Senior Vice President for
Corporate Governance, a newly-created position.

-- The appointment of David FitzPatrick, the former Chief
Financial Officer of United Technologies, as Tyco's new CFO.

-- The appointment of William Lytton, the former General Counsel
of International Paper, as Tyco's new General Counsel.

-- The nomination of five leading figures in the business
community to fill expected vacancies on the Board before the
Company's next annual meeting.

-- The Board's vote not to nominate or support for re-election at
the Company's 2003 annual meeting any of the nine current members
of the Board who were members of the Board prior to July 2002.

As disclosed in its 10-Q report filed on August 14, 2002, Tyco's
new Chief Executive Officer Ed Breen believes that one of his
immediate priorities is to restore the credibility of Tyco with
investors and regulators. For that reason, Mr. Breen has directed
Boies, Schiller & Flexner LLP and the forensic accounting firm of
Urbach Kahn & Werlin Advisors, in conjunction with the Company's
auditor, PricewaterhouseCoopers LLP, to perform an in-depth
review of Tyco's accounting beginning with fiscal year 1999 and
extending into the fourth quarter of the current fiscal year.
This review will include, but is not limited to, reviewing Tyco's
revenues, profits, cash flow and internal auditing procedures as
well as past and present accounting for acquisitions and

Management notes that Tyco currently has no reason to believe
that there are any material adjustments necessary to the
Company's financial results. However, Mr. Breen believes that, in
view of recent events at the Company, this in-depth review of
accounting practices is important if the Company is to provide
further assurance to shareholders and regulators that accounting
decisions made at Tyco have been appropriate and consistent with
Generally Accepted Accounting Principles. If this internal review
were to reveal any material adjustments necessary to the
Company's financial results, the Company of course would promptly
disclose such adjustments.


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.


The company's news release may contain certain "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and are subject to
risks, uncertainty and changes in circumstances, which may cause
actual results, performance or achievements to differ materially
from anticipated results, performance or achievements. All
statements contained herein that are not clearly historical in
nature are forward looking and the words "anticipate," "believe,"
"expect," "estimate," "plan," and similar expressions are
generally intended to identify forward-looking statements. The
forward-looking statements in this release include statements
addressing the following subjects: future financial condition and
operating results. Economic, business, competitive and/or
regulatory factors affecting Tyco's businesses are examples of
factors, among others, that could cause actual results to differ
materially from those described in the forward-looking

More detailed information about these and other factors is set
forth in Tyco's Annual Report on Form 10-K for the fiscal year
ended September 30, 2001, and in Tyco's Quarterly Report on Form
10-Q, for the quarter ended June 30, 2002. Tyco is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a
result of new information, future events or otherwise.

CONTACT:  Gary Holmes (Media)

          Kathy Manning (Investors)

TYCO INTERNATIONAL: May Sell Emergia Stake To Telefonica
A filing with the Comisi˘n Nacional del Mercado de Valores
(CNMV), the agency in charge of supervising and inspecting the
Spanish Stock Markets, revealed that Tyco International has the
option to sell its 6.3% stake in Emergia, the holding company it
shares with Telefonica SA, for EUR48.4 million, reports

Tyco, according to the filing, can exercise its option to sell
the stake in the holding to Telefonica "if Emergia hasn't begun
an initial public offering before Dec 31, 2002."

Nevertheless, the Emergia share sale is not expected to take
place in the short term due to current stock market conditions,
says Expansion.

TYCO INTERNATIONAL: S&P Keeps Ratings On CreditWatch, Negative
The 'BBB-' long-term corporate credit rating and 'A-3' short-term
rating of Tyco International Ltd. will remain on CreditWatch with
negative implications, said Standard & Poor's. The statement
comes after the Company issued a report to the US Securities and
Exchange Commission detailing improper conduct and misuse of
company funds by former senior management.

"The wrongdoing seems confined to a small number of senior
executives," said S&P.

The amounts disclosed to date are not material to Tyco's credit
quality and are not expected to require material restatements of
the troubled conglomerate's financial statements because the
related outlays have already been expensed. The findings so far
do not include any indication of broader misconduct or improper
accounting affecting areas beyond executive compensation.

However, S&P said it will await the outcome of the various
investigations including the internal probe and the SEC
investigation, before considering removing the ratings from

S&P's said the series of management changes recently have been
positive developments as well as the vote by the management board
not to nominate or support for re-election at the Company's 2003
annual meeting any of the nine current members of the board who
were members prior to July 2002.

But liquidity remains a concern, S&P said.

Removing the ratings from CreditWatch will depend on management's
addressing the gap between cash balances plus free cash flow and
obligations coming due in the next 15 months.

The ratings agency said it will continue to monitor the
performance of Tyco's still well-diversified business portfolio
and its efforts to stem any damage that recent events may have
had on customer, supplier, or employee relationships. Ratings
could be lowered if debt is not reduced meaningfully in the near
term -- the Company does not address in a timely manner
obligations coming due late in the calendar year 2003 or there
are further negative developments in connection with internal,
regulatory or law enforcement investigations.

Tyco should have sufficient liquidity to repay amounts
outstanding under accounts receivable securitizations -- about
US$540 million -- that might come due as a result of recent
rating downgrades.

Depending on the Company's future capital structure, the ratings
on debt obligations that S&P's currently rates in the investment-
grade category could be lowered even if the corporate credit
rating remains unchanged.

TYCO INTERNATIONAL: Ex-Exec's Have Trouble Posting Bail
Two former executives of Tyco International Ltd., charged with
looting the company of hundreds of millions of dollars, are
having a hard time posting bail, according to a report by the
Associated Press Monday.

Their legal counsel complained in court, saying their clients'
personal assets have been frozen, funds offered by relatives and
others are rejected as possible proceeds of the crimes with which
they are charged.

State Supreme Court Judge Michael Obus gave L. Dennis Kozlowski,
55, Tyco's former chief executive officer, and Mark Swartz, 42,
the corporation's former chief financial officer until Thursday
to post at least 10 percent of their bonds. The said bonds are
set for US$100 million for Kozlowski, and US$50 million for

Kozlowski's ex-wife, Angie, offered to put up her US$10 million
house in Greenwich, Conn., or US$10 million in municipal bonds as
bond security. However, these are rejected as both are "possibly
attributable to the course of conduct" charged in the indictment,
according to Assistant District Attorney John Moscow.

"We have made every reasonable effort to satisfy the bond that
your honor set," Stephen Kaufman, Kozlowski's legal counsel told
the judge.

Moscow replied, "It doesn't seem appropriate that the proceeds of
the crime should be used as bail. All we want to know is if the
bail is the proceeds of the crime."

Kaufman explained that the restraining order Judge Obus issued
last week keeps Kozlowski from using his assets anywhere in the
country for his bond. He commented outside court that it is
legally questionable whether a New York judge has that authority.

"He's got more assets than Custer had Indians, but he can't get
to them. He can't even go to an ATM," Kaufman said, explaining
that his clients problem is not lack of money.

Swartz's lawyer, James Mitchell found himself in the same
situation as Kaufman. Mitchell said his client's wife had offered
property she and the defendant owned jointly.

However, Moscow objected, saying, "It is quite obvious that that
the source of the funds is the defendant," citing the employment
history of Swartz's wife.

Judge Obus clarified that some of the bond collateral the
defendants are offering might not be subject to his restraining
order. He ordered the defense to return Thursday and post the
security. If Moscow objects, the court will hold a hearing on
whether it is acceptable.

Kozlowski and Swartz were charged last week with enterprise
corruption and grand larceny for allegedly pilfering some $600
million from Tyco. They face up to 25 years in prison on each of
those charges if convicted.

At the same time, Tyco's former general counsel Mark Belnick, 55,
was charged with falsification of documents, which covers up to
US$14 million in improper loans. He faces up to 4 years in

These charges were filed soon after the Securities and Exchange
Commission accused them of hiding huge loans and other money they
allegedly took out of the company's funds.

The SEC stated that Kozlowski used US$242 million from an
employee loan program, originally designed to help workers buy
Tyco stock, in order to pay for yachts, fine art, jewelry, luxury
apartments, and vacations, among other things.

Kozlowski resigned from Tyco a day after he was indicted in June
on tax evasion. He pleaded innocent on evading New York sales tax
allegedly due on US$13 million in art, including works by Renoir
and Monet.

Tyco is based in Bermuda, but is headquartered in New Hampshire.
The company makes everything from coat hangers to security
systems and medical equipment.


BANCO FIAT: Searches for Partner as Part of Reorganization
An executive from Banco Fiat SA revealed that the Brazilian
financing arm of the Italian automaker Fiat is now in talks with
companies, whose names are not revealed, as part of an effort to
find a partner.

"We can confirm that the negotiations are going ahead in a very
positive way, both in the domestic market and in the
international market," said Celso Fernandes, Banco Fiat's
commercial and marketing director in a statement.

Fernandes made no predictions as to when the bank might announce
an agreement.

The Banco Fiat financing arm would be attractive to any of the
big Brazilian banks such as Banco Bradesco SA, Banco Itau SA or
Uniao de Bancos Brasileiros SA, said Erivelto Rodrigues, director
of Austin Asis, a banking consultancy in Sao Paulo.

The partner search comes amid attempts by the Italian parent to
sell assets worldwide to cut debt. Fiat is seeking to sell its
car finance unit Fidis as part of its pledge to sell more than
EUR2 billion in assets this year to raise cash, reduce debt and
cover losses at its car unit.

In Brazil, where Fiat is the biggest maker of passenger cars, its
financing arm is the largest auto finance company and 26th
biggest bank with assets of BRL4.5 billion (US$1.4 billion),
according to central bank figures.

ELETROPAULO METROPOLITANA: Bear Stearns Cuts Recommendation
Despite Eletropaulo Metropolitana's recent success in reaching
agreements with creditors to reschedule some of its debts and
meet payments of commercial papers, Bear Stearns proceeded to cut
its equity rating recommendation on the Brazilian utility to peer
perform from outperform.

"Notwithstanding this success, we remain concerned regarding the
Company's ability to still rollover US$671 million in short-term
debt maturing by June 2003," Bear Stearns said in a research

Just recently, Eletropaulo reached an agreement with creditors to
reschedule around BRL175 million worth of debentures originally
due October 1, met a payment on US$150 million in commercial
paper, and is negotiating with bankers to reschedule an unpaid
portion of a US$225 million syndicated loan that came due in late

Eletropaulo distributes electricity to about 14 million people in
Sao Paulo, Brazil's most populous city and financial center, and
23 surrounding municipalities.

          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

EMBRATEL: Hires MS&CR2 To Aid In Debt Restructuring
Embratel, which has debts of BRL800 million coming due in the
first quarter next year, is to outline a financial restructuring
plan to cut expenses. The Brazilian telephone operator has hired
the consulting company MS&CR2 to assist it in its debt
restructuring efforts.

The Company attributed its financial difficulties mainly to
interconnection fees (46% of the net income) and the 2,000
accounts in default (6.5% of gross earnings).

Embratel reported a second-quarter loss of BRL152.2 million, a
whopping 292% rise over the year-earlier period. A 17.5%-
depreciation in Brazil's currency, the Real, was the main villain
as it magnified its overseas debt costs in local terms. But
revenue also dipped and provisions for nonpayment of accounts
remained high.

          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010

EMBRATEL: Signs Three-Year Outsourcing Contract With BB
Banco do Brasil (BB), Brazil's largest bank in terms of assets,
has signed a three-year outsourcing contract with long distance
incumbent operator Embratel. Under the contract, the federally-
controlled bank will outsource its remote and international
telecoms needs to Embratel. Embratel will connect 30 of BB's
existing points of presence (POPs), 25 of which lie outside

The bank's network is present in 25 cities and 18 countries in
the Americas, Europe and Asia. The distribution centers for voice
and data traffic are located in Brasilia, London, New York and

The bank has been working since April this year on a network
design, over which Embratel will provide Diginet, Global
Dedicated Line (GDL), International Frame Relay (IFR) and
Iternational Private Line (IPL) services.

"Our only supplier, from now on, will be Embratel," BB tech &
infrastructure VP Gustavo do Vale said. The bank expects its data
transmission speed to increase 60% and its monthlyoperational
costs to decrease 40% as a result of the contract.

Terms of the deal were not disclosed.

TUPY: President Ousted As Part of Reorganization Process
Despite positive operating results, Florianopolis-based foundry
Tupy is embarking on an administrative and financial
reorganization. The process is supposed to address its problems
with its cash flow resulting from high levels of indebtedness.

As part of the reorganization, Business News Americas reports
that the Company, Latin America's largest foundry, fired its
president Mario Egerland.

Tupy posted a net loss of BRL34 million (currently US$11 million)
and net revenue of BRL375 million (US$121 million) for the first
half of this year.

The Company didn't reveal the details of its financial
restructuring, but in its latest report, Tupy said that its major
shareholders - pension fund Previ (30.5%), Telos (22.6%), Aerus
(18.5%) and the equity arm of state development bank BNDESPar
(17.6%) - promised to inject capital, lengthen the firm's debt
profile and substitute debt denominated in foreign currency with
local currency obligations.

Last June, the board of directors approved the issue of BRL150
million (US$50 million) in promissory notes.

CONTACT:  TUPY S.A. (Head Office)
          Rua Albano Schmidt, 3400
          Joinville - Sc - Brasil
          CEP: 89206-900
          TEL: + 55 (47) 441-8181
          FAX: + 55 (47) 441-8141


COEUR D'ALENE MINES: Provides Update on Debt Reduction Efforts
Coeur d'Alene Mines Corporation (NYSE:CDE) announced its
shareholders elected directors and approved four proposals at the
Company's Annual Meeting of Shareholders held Tuesday.

Coeur's shareholders elected a slate of ten directors, approved
an increase in the number of authorized shares of common stock
from 125 million to 250 million, and approved increases in the
numbers of shares of common stock authorized for issuance under
the Company's Executive Compensation Program and Non-Employee
Directors' Stock Option Plan.

Highlights from the Company's presentation to its shareholders

Positive Exploration Results

Coeur continues to generate positive exploration results at Cerro
Bayo in Chile and Martha in Argentina.

At Cerro Bayo, four drill rigs are presently active. Two are
focused on delineating additional reserves in the immediate area
of mining operations. The other two are being used for "step-out"
drilling up to 1.0 mile to the north and 0.6 miles to the south
of the existing mine infrastructure in order to expand total
resources. The drilling program is part of an expanded $1.2
million exploration program taking place during the second half
of 2002. The program's objectives are to increase
reserves/resources and improve our geologic understanding of the
highly prospective 3 mile wide by 6 mile long Cerro Bayo
mineralized zone.

The Company has intersected new vein structures at Cerro Bayo.
During recent drilling on the Celia vein -- one of the main
sources of new reserves -- Coeur intersected two new veins.
Select values from these intercepts on the new Marta vein located
80 feet west of the Celia vein included 6.6 feet of 36.3 oz/ton
silver and 0.17 oz/ton gold and 4.0 feet of 42.9 oz/ton silver
and 0.39 oz/ton gold.

At Martha, Coeur has now completed twelve reverse circulation
holes totaling 2,600 feet and is planning to drill an additional
sixteen holes. These holes were drilled to assess the potential
in the immediate area of the mining operations where additional
reserves could be defined. Early results included 13.0 feet of
162 oz/ton silver and 0.14 oz/ton gold located outside the
eastern limits of the existing reserves. This result suggests
that there is a good probability that the mineralized zone could
be extended eastwards of the lower level of the mine and could
significantly increase the grades of the reserve block defined in
that area.

Continued Debt Reductions

Coeur's outstanding indebtedness has decreased to $105 million,
down from $146 million at the beginning of the year. A
significant portion of the remaining debt continues to
voluntarily convert into shares of Coeur's common stock. Since
June 30, approximately $21.9 million of debt has converted into
shares of common stock.

Since embarking on its debt reduction program in 1998, the
Company has reduced its annual cash interest expense from $20.4
million to approximately $5.3 million. Together with the
Company's significant growth in its low-cost silver production,
Coeur should generate positive cash flow during the remainder of

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

This document contains numerous forward-looking statements
relating to the Company's silver and gold mining business and
future transactions effecting its liquidity and capital
resources. The United States Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for certain forward-looking
statements. Operating, exploration and financial data, and other
statements in this document are based on information the company
believes reasonable, but involve significant uncertainties as to
future gold and silver prices, costs, ore grades, estimation of
gold and silver reserves, mining and processing conditions,
changes that could result from the Company's future acquisition
of new mining properties or businesses, the risks and hazards
inherent in the mining business (including environmental hazards,
industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, and risks
inherent in the ownership and operation of, or investment in,
mining properties or businesses in foreign countries. Actual
results and timetables could vary significantly from the
estimates presented. Readers are cautioned not to put undue
reliance on forward-looking statements. The Company disclaims any
intent or obligation to update publicly these forward-looking
statements, whether as a result of new information, future events
or otherwise.

          Mitchell J. Krebs, 208/769-8155

DISPUTADA: Exxon Holds `No Comment' Line On Agreement Reports
US oil giant ExxonMobil is sticking strictly to the no comment
line with regard to recent reports that it has reached an
agreement with the Chilean government. The deal in question would
allow the sale of its Disputada de Las Condes copper mining
subsidiary to proceed, reports Business News Americas.

However, Ed Glab, a spokesperson from Exxon's EMMI mining unit,
said that contact was continuing between the company and the
Chilean government.

Recent press reports have it that a preliminary agreement had
been reached under which Exxon has agreed to pay Chile US$40-45
million in capital gains taxes for the planned US$1.3-billion
sale of Disputada to South African mining group Anglo American.

However, according to Santiago business paper El Diario, a final
agreement has not been reached on the details of the Enami option

The state company, which filed legal action after Exxon refused
to recognize the option, had wanted the value of the mechanism to
be determined by market forces. But, according to the report,
Enami has now accepted that under the terms of the 1978 contract
under which it sold 85% of Disputada to Exxon for US$94 million,
the 49% option is now worth US$1.6 billion, valuing Disputada at
more than twice the Anglo sale price.

Anglo American has made it clear that it does not object in
principle to including the Enami option in the contract,
depending on how it is valued.

Enami's board, chaired by mining minister Alfonso Dulanto, is due
to meet September 25 to vote on the Exxon agreement, according to
the paper.

Their court battle to resolve this spat has held up the Exxon-
Anglo sale. Anglo said this week it expects to close the deal
within weeks.

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.

          Cynthia Langlands
          Phone: 972/444-1107

          Guillermo Garcia
          Phone: 562/230-6488

EDELNOR: Files For Chapter 11 Bankruptcy Protection In the U.S.
Empresa Electrica del Norte Grande SA (Edelnor), a Chilean power
generator, filed for Chapter 11 bankruptcy protection with the
U.S. Bankruptcy Court in Manhattan to complete a prearranged
reorganization of unsecured loans in the U.S. In the filing,
Edelnor, a unit of Spanish utility company Endesa S.A., revealed
it has nearly US$612.9 million in total assets and about US$385.5
million in total liabilities.

Citing a company press release dated Aug. 19, Dow Jones reports
that the Company said the planned Chapter 11 filing would affect
holders of US$340 million in unsecured loans from Bank of America
N.A. and the New York branch of Switzerland's Union Bank. Court
documents revealed that Union Bank of Switzerland is owed about
US$260 million and Bank of America is owed more than US$92.4

Under the proposed reorganization plan, affected holders would
receive new 15-year certificates equal to just over 92% of the
original principal, a cash payment equal to 38% of the principal,
or a combination of the two.

In the release, Edelnor said that two-thirds of the affected
holders had to accept or reject the plan by Monday, but noted
that 74% had already pledged their support.

Edelnor said obligations to all other creditors will be met
through "the ordinary course of business."

Edelnor keeps principal executive offices in Santiago, Chile, and
for the past two years has maintained accounts in New York with
minimum total balances of about US$1 million to US$3 million,
according to a declaration by Chief Financial Officer Cristian
Bernstein. With the exception of those New York accounts, all of
Edelnor's assets are in Chile.

"A U.S. bankruptcy filing was preferable to a Chilean bankruptcy
for a number of reasons," said Bernstein in court papers. Most of
the Company's creditors are U.S. residents who are more familiar
with U.S. law, and certain creditors wouldn't be able to take
part in a Chilean bankruptcy, Bernstein said.

Moreover, the filing said, the proposed restructuring would
affect only the debt under Edelnor's existing loan agreements,
all of which are governed by New York law.

Court documents revealed two secured claims against Edelnor, held
by Tesoreria General de La Republica and Scotiabank Sud
Americano, both of Santiago. The total collateral value of
Tesoreria General's claim - related to power plants - is about
US$132.8 million, and Scotiabank claims roughly US$2.1 million in

EDELNOR: Case Summary & 20 Largest Unsecured Creditors
Debtor: Empresa Electrica Del Norte Grande S.A. (Edelnor)
        Avenida Apoqindo 3721, Oficina 81
        Las Condes
        Santiago, Chile

Bankruptcy Case No.: 02-14530

Type of Business: The Debtor is a partially integrated electric
                  utility engaged in the generation,
                  transmission and sale of electric power in
                  northern Chile. The Debtor owns and operates
                  coal, gas, diesel, fuel oil and hydroelectric
                  generating facilities.

Chapter 11 Petition Date: September 17, 2002

Court: Southern District of New York (Manhattan)

Judge: Allan L. Gropper

Debtor's Counsel: Lindsee Paige Granfield, Esq.
                  Thomas J. Moloney, Esq.
                  Cleary, Gottlieb, Steen & Hamilton
                  One Liberty Plaza
                  New York, NY 10006
                  (212) 225-2000
                  Fax : (212) 225-3499

Total Assets: $612,861,000 (as of July 31, 2002)

Total Debts: $385,483,000 (as of July 31, 2002)

Debtor's 20 Largest Unsecured Creditors:

Entity                                            Claim Amount
------                                            ------------
Union Bank of Switzerland, Stamford Branch        $259,956,597
Paul Morrison, Executive Director
677 Washington
Boulevard, Stamford,
Connecticut, 06912,
United States

Bank of America, N.A.                              $92,441,250
Mary-Claire Carter, Agency Management
1850 Gateway Boulevard,
Concord, California 94520,
United States

Ansaldo Energia S.P.A. Via Nicola Lorenzini 8,      $1,022,545
Malverino Porfido, Risk Director
16152 Genova, Italy

Puerto Mejillones S.A.                                $229,667

Babcock Montajes Chile S.A.                           $148,524

Ypf S.A. Avda. Pte. Roque Saenz                       $138,023

Electroandina S.A.                                    $116,568

B. Bosch S.A.                                          $91,931

Esso Chile Petrolera Ltda.                             $75,595

Shinwa (USA) Inc.                                      $70,584

Mobil Argentina S.A.                                   $62,248

Tecpetrol S.A.                                         $62,248

Adan Rozas Catalan El Yodo Nro. 8137                   $50,236

Western Bulk Carriers                                  $43,125

Cdec-Sing Ltda.                                        $43,125

ACE Seguros S.A.                                       $39,946

Empresa Electrica Cavancha S.A.                        $39,640

Compa¤ˇa de Petroleos de Chile S.A.                    $26,262

Compa¤ia General De Combustibles S.A.                  $13,562

Roberto Miranda M. Gonzalo Cerda Nro. 1224             $13,024


SEVEN SEAS: Announces Operational, Financial Update
Seven Seas Petroleum Inc. (Amex: SEV) announced Tuesday that its
Escuela 2 exploration well is currently drilling at approximately
20,155 feet in the lower Cretaceous (Utica- Caballeros) formation
and is expected to reach total depth within 24 hours. Electric
logs have been run on the well to a depth of 19,933 feet and are
currently being evaluated.  After reaching total depth,
additional logs and wire line tests will be undertaken and
evaluated.  Based upon the preliminary log and sample analysis
and natural gas shows, including heavier hydrocarbons (C1 through
C5), the Company believes the well should be production tested
and is presently evaluating how best to test the well.  Depending
upon the method and length of testing, it is estimated the costs
will be between $1.5 and $3.5 million.  To date, cumulative well
costs have reached approximately $21.1 million.  Testing costs
will bring the total cost for the Escuela 2 to between
approximately $22.6 and $24.6 million.

"We have the potential of a major discovery; however, it will
require a production test to determine the real potential of the
Escuela 2 well and possibly a second well to determine the full
potential of the prospect," stated Robert A. Hefner, III,
Chairman and Chief Executive Officer of Seven Seas Petroleum,

Operational Update

Production from the Guaduas Oil Field averaged approximately
6,100 barrels of oil per day (2,800 net to Seven Seas) during the
month of August compared to 6,700 barrels of oil per day (3,100
net to Seven Seas) during the month of July.  As previously
reported, the Company is attempting to optimize production from
existing wells through a workover program.  To date, the Company
has completed workover operations on three wells, the Tres Pasos
1-W, El Segundo 1-N and the Tres Pasos 6-N.  These efforts have
not yet increased production.  The Company has also fracture
treated the Tres Pasos 5-W.  The results may not be known for
several weeks and could potentially determine whether the company
proceeds with additional workovers.

Colombian "War Tax"

In August 2002, the newly elected Presidential administration in
Colombia imposed an emergency "war tax" of 1.2 percent on all in-
country equity, as calculated by Colombian tax authorities, to
finance efforts to combat ongoing guerilla activity.  Seven Seas
current "war tax" liability is estimated to be approximately
$800,000, payable in four installments beginning at the end of
September 2002 and ending in June 2003.

Rosablanca Association Contract

Given continuing regional political uncertainty in the area
covered by the Rosablanca Association Contract, the additional
costs to drill deeper on the Escuela 2, and the unexpected "war
tax", Seven Seas has decided to postpone the drilling of the
Santa Fe #1 well to test the Aguachica Prospect.  The Company
will consider potential farmout agreements.

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

Statements regarding anticipated oil and gas production and other
oil and gas operating activities, including the costs and timing
of those activities, are "forward looking statements" within the
meaning of the Securities Litigation Reform Act.  The statements
involve risks that could significantly impact Seven Seas
Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling
risks, inherent uncertainties in interpreting engineering and
geologic data, competition, reduced availability of drilling and
other well services, fluctuations in oil and gas prices and
prices for drilling and other well services and government
regulation and foreign political risks, as well as other risks
discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.

          Daniel Drum, Investor Relations
          Web site:


EMELEC: May Sue Big Debtors To Recover $15M In Debt
Ecuadorian distributor Emelec, which has failed to reach an
agreement with debtors following six months of negotiations, is
considering starting legal proceedings to recover US$15 million
as part of a plan to collect outstanding debt, Business News
Americas report, citing Emelec financial advisor Cristobal

"We have an overdue portfolio worth US$30 million of which we
intend to collect US$15 million, considering the financial
reality of the country," Accini explained, adding, "We are only
taking legal action against the big debtors."

The debtors consist of non-traded businesses, banks, and sports
venues, which have held the debts for more than eight months.
Emelec has cut power to its debtors, and currently disconnects
some 80,000 users a month, Accini said.

"The law allows us to cut power for overdue payments. This has
allowed us to balance our situation," he said.

Emelec will keep negotiating payment plans, and expects to
recover the outstanding US$15 million in 2003, Accini added.

Meanwhile, the Ecuadorian government is considering alternatives
for the future of Emelec, including selling its shares in the
stock market, or enabling it to issue debt titles in the
financial market. However, the government must first tackle the
US$400 million in debts piled up by Emelec since 1982 before
making a decision.

In March 2001, Ecuadorian electricity council Conelec canceled
Emelec's concession to distribute electricity in Guayaquil after
the Company broke its contract with the state, having accumulated
US$97 million in debts and failing to maintain service standards.

Emelec owner, Fernando Aspiazu was arrested, and the then-
government decided to sell the Company to reimburse clients of
Banco del Progreso, also owned by Aspiazu, and which was declared

CONTACT:  Electrica del Ecuador (EMELEC)
          Tel,fonos: (593-4) 248000 - 248003
          Fax: (593-4) 248051


UNEFON: Files $900M Lawsuit Against Nortel, Delays Unefon Deal
TV Azteca, S.A. de C.V. (NYSE: TZA)(BMV: TVAZTCA), one of the two
largest producers of Spanish language television programming in
the world, announced today that Unefon, S.A. de C.V. (BMV:
UNEFON), a Mexican mobile telephony operator 46.5% owned by the
company, filed a lawsuit against Nortel Networks Limited,
Unefon's major equipment supplier and lender, for US$900 million.

As a consequence of the dispute, TV Azteca will postpone the spin
off of the company's investment in Unefon to allow Unefon time to
resolve its disagreements with Nortel.  TV Azteca previously
announced that its board of directors has approved the spin off
of the company's investment in Unefon, as a distribution of
Unefon shares to TV Azteca shareholders before year-end.

Unefon has been seeking to restructure its debt and to negotiate
a procurement agreement with Nortel since the first quarter of
2002.  As part of this intention, last August, Unefon announced
that it did not make a US$6 million interest payment to Nortel.

Nortel responded with a notice of default to Unefon and warned
that a spin off would be interpreted as a change in the firm's
control, equivalent to an additional default.  Further, Nortel
decided to accelerate Unefon's indebtedness to Nortel, which
could result in a foreclosure of the guarantees of the loan,
comprised of Unefon's assets and concessions.

On September 9, Unefon filed a lawsuit for US$900 million against
Nortel alleging that Nortel has failed in its obligation to
syndicate portions of Unefon's indebtedness, which would have
triggered availability to Unefon of additional financing under
its agreement with Nortel.  The suit alleges that Nortel's
failure to "apply its best efforts" to syndicate the indebtedness
"in a diligent and timely manner" has resulted in lost profits, a
diminution in equity value, and has caused Unefon to default as a
consequence of Nortel's initial alleged default.

"Had Unefon been able to make use of the entire US$618 million
credit facility as originally agreed with Nortel, Unefon would
certainly be in a different business position," said Pedro
Padilla, TV Azteca's Chief Executive Officer.  "We believe
Unefon's current financial situation is a direct consequence of
the lack of financing, and that its claims against Nortel have

"Therefore, we are pushing back our original schedule to give
Unefon the opportunity to resolve its negotiations or legal case
with Nortel.  We would prefer not to negatively impact Unefon by
granting a distribution of shares in a manner that could result
in a broader legal dispute with its main supplier and lender,"
added Mr. Padilla.

TV Azteca noted that it intends to submit the spin off for
approval by its shareholders in the future in the same manner
approved by its board of directors.

The company stated that, effective immediately, TV Azteca ceases
its US$80 million financing support granted on behalf of Unefon
in July 2001.  As of August 30, Unefon had used US$48 million of
the guarantee.  TV Azteca will not allow Unefon to access the
remaining US$32 million of the facility until satisfactory
resolution of the dispute.

TV Azteca will continue to be subject to its commitment regarding
a US$35 million support to cover possible funding gaps through
December 2002, as agreed in year 2000 by TV Azteca and Moises
Saba. TV Azteca has not received any demand for payment from
Unefon under this commitment.

TV Azteca noted it does not have any direct obligations with

Even though TV Azteca believes the lawsuit of Unefon has merit,
it cannot give assurances that Unefon will win it, and in the
event of winning it, it cannot give assurances that the courts
will grant a judgment in the amount requested.

Company Profile

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country.  TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic;
Unefon, a Mexican mobile telephony operator focused on the mass
market; and, an Internet portal for North American
Spanish speakers.

Except for historical information, the matters discussed in this
press release are forward-looking statements and are subject to
certain risks and uncertainties that could cause actual results
to differ materially from those projected.  Risks that may affect
TV Azteca are identified in its Form 20-F and other filings with
the US Securities and Exchange Commission.

          Investor Relations:
          Bruno Rangel
          5255 3099 9167

          Rolando Villarreal
          5255 3099 0041

          Media Relations:
          Tristan Canales


MINERA VOLCAN: Finalizes Debt Agreement With Banks
Peruvian zinc miner Minera Volcan informed the Lima bourse that
it has finalized a financial restructuring agreement with a
syndicate of banks, reports Business News Americas. The banks
involved are: Banque Cantonale Vaudoise, Societe Generale, Banco
Wiese Sudameris, BNP Paribas, Fortis Bank and Westdeutsche
Landesbank Girozentrale.

Under the agreement, Volcan will reschedule a US$110-million loan
package over five years with an 18-month grace period.
Amortization, including interest, will be US$100,000 a month from
October, compared with previous installments of US$2.17 million.
The deal also involves a new credit of US$6.5 million, as part of
the US$110 million. Furthermore, the agreement required Volcan to
put up its mining properties as collateral.

Meanwhile, Volcan revealed plans to place 51% of its A series
voting shares in a trust as part of a plan to seek a strategic
partner within 30 months, and is renegotiating terms with
suppliers and sub-contractors to free up funds of US$13 million.

Volcan owns the Paragsha underground mine in the Cerro de Pasco
district in central Peru's Junin department and three other mines
in the nearby Yauli district. It extracts copper and lead, as
well as zinc.


BANCO COMERCIAL: International Banks To Aid In Capitalization
Several international banks and institutions have expressed
interest in taking part in the capitalization of intervened and
suspended Uruguayan bank Banco Comercial. According to a local
daily El Pais report, Comercial's executive director Paul Elberse
has traveled to New York and Washington to hold talks with the
international banks that are shareholders in Comercial, and also
with the International Finance Corporation and the Inter-American
Development Bank.

Comercial's international shareholders, which include Germany-
based Dresdner Bank, US-based JP Morgan and Switzerland-based
Credit Suisse, have submitted official requests to the central
bank to participate in Comercial's upcoming capitalization.

Elberse will also meet with two international investors that have
expressed interest in Comercial.

Comercial, one of Uruguay's largest banks, was intervened
together with several other local banks in July and August due to
a massive bank run caused by the Uruguayan financial system's
vulnerability to Argentina's financial crisis.

Comercial's problems were also aggravated by a very public
scandal in which some of its owners were accused of illegal
capital flight and money laundering.


SIDOR: Union, Labor Ministry Meeting Resolves Conflict
A looming strike at the Venezuelan steel maker Siderurgica del
Orinico (Sidor) was averted after its unions reached a deal with
labor minister Maria Cristina Iglesias at a meeting called Monday
to resolve an ongoing dispute over Sidor management methodology
in calculating wages, reports Business News Americas.

"The agreement will be put to workers on Wednesday and we hope
we'll sign the final document on Thursday to end the conflict at
Sidor," said a spokesperson for the Sutiss trade union, which
represents some 5,400 Sidor employees and another 6,000
subcontracted workers.

The labor ministry, which acted as mediator, called in the union
leaders for a meeting in Caracas to discuss their demands and
finally reached a deal early Tuesday morning on the four points
at issue.

The protracted labor dispute came at the back of the Company's
efforts to negotiate the refinancing of much of its US$1.45
billion debt with a group of banks and the Venezuelan state.

Sidor, which has been battered by the sharp slide in steel prices
and the shrinking domestic economy, had failed to meet the terms
of an earlier 2000 debt restructuring deal.

Sidor, a former state operation, was privatized in 1997 when the
Consorcio Amazonia acquired a majority stake. Shareholders are
Mexican companies Hylsamex and Tamsa, Brazil's Usiminas,
Argentina's Siderar and Venezuela's Sivensa.

          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page:


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.

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