TCRLA_Public/020920.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, September 20, 2002, Vol. 3, Issue 187



HAVANNA SA: Heads To Auction Block By Month End
PECOM ENERGIA: Fitch Upgrades Ratings To 'CC
REPSOL YPF: Corporate Governance Changes Prompt Board Shuffle


GLOBAL CROSSING: Panel To Get Greater Power To Issue Subpoenas
TYCO INTERNATIONAL: Moody's Maintains Ratings Under Review
TYCO INTERNATIONAL: Eliminating Brittish Official From Board
TYCO INTERNATIONAL: Revelations May Hasten Pay Disclosure Reform


AES CORP.: Asset Sale Expected Outside US, Latin America
BCP TELECOMUNICACOES: Anatel Authorizes Rate Hike
CSN: Shares Plummet Following Bear Stearns Downgrade


EDELNOR: Seeks Authority to Pay Prepetition Creditors


AVANZIT SA: Colombian Unit May Appeal Court Ruling


SAVIA: Bionova to Challenge Amex Notification


INTESABCI: Fitch Places on Negative Ratings Watch
WEISE SUDAMERIS: Peru's Woes May Hamper Sale


AVENSA: International Flights May Be Curtailed
BANCO INDUSTRIAL: Bad Loans Threaten Bank's Strength
CITGO/PDV AMERICA: Fitch Downgrades Ratings; Outlook Negative

     - - - - - - - - - -


HAVANNA SA: Heads To Auction Block By Month End
Exxel Group, a buyout fund run by businessman Juan Navarro, plans
to auction its troubled cookie maker, Havanna SA, on September
30. According to a report by daily Clarin, the pending auction
has drawn the interest of Arcor Saic, Argentina's largest toffee
producer, and Molinos Rio de la Plata SA, the nation's biggest
pasta maker.

Havanna, which Exxel bought for US$85 million in 1998, sought
protection from creditors in August on debts of US$32 million.
Creditors include Deutsche Bank AG.

Meanwhile, another Exxel unit, Cia. de Alimentos Fargo SA,
Argentina's biggest bread maker, is also renegotiating US$160
million in debt.

          Brandsen 3298
          Mar del Plata, Buenos Aires 7600
          Phone: (54223) 4748323
          Fax: (54223) 4748327

          Caledonian House, Jennet Street,
          George Town, Grand Cayman, Cayman Islands.
          Phone: (10 345 949 0050
          Fax: (1) 345 949 8062

          Av del Libertador 602 Piso 27 (1001)
          Buenos Aires
          Phone: (54 11) 4815-2001
          Home Page:

PECOM ENERGIA: Fitch Upgrades Ratings To 'CC
Fitch Ratings has upgraded Pecom Energia's (Pecom) senior
unsecured foreign and local currency ratings to 'CC' from 'DD.'
Both ratings have Stable Rating Outlooks.

The actions follow a credit review period prompted by Pecom's
distressed debt exchange offer involving US$997.5 million in
outstanding securities. The exchange, completed in August,
involved its 7 7/8% notes due in August 2002; 9.0% notes due
January 2004; 9.0% notes due May 2006; and 8 1/8% notes due July
2007. Pecom accepted tenders from existing note holders equal to
an estimated 91.8% of the aggregate principal amount of the
outstanding notes. An estimated US$845 million in new securities
were issued as part of the exchange.

Pecom's financial flexibility and credit profile have been
adversely affected by the various emergency measures implemented
by the Duhalde administration - including pesofication,
revocation of convertibility and prohibition of price and/or
tariff adjustments based on foreign currency indexation - to
address the systemic crisis affecting Argentina following the
sovereign's default. These policies have eviscerated the market-
oriented framework instituted in the 1990s and expropriated
significant value and decision-making autonomy from private
sector companies, including Pecom.

Pecom's domestic operations have been adversely affected by the
marked deterioration of its regulated businesses. This refers to
the inability of regulated entities to completely pass through
the devaluation effect on its product pricing and the general
uncertainty surrounding the power generation segment. Fitch
believes that Pecom's international revenue generation ability
will also be hindered in the near term. This is attributed to
OPEC-related production cutbacks in Venezuela and to the
significant reductions in Pecom's capital investment program.
Capital expenditures are expected to total US$150 million this
year, compared to the recent annual mean of US$500 million. This
sharp decline will delay the monetization of the company's cross-
border upstream reserves, adversely affecting expected output
gains over the medium term.

Pecom is currently negotiating the refinancing of an estimated
US$950 million of debt owed to financial institutions associated
with working capital loans, debt issuances, trade financings and
letter of credit facilities. The successful refinancing of these
obligations into an acceptable bank loan profile is a condition
for the consummation of the proposed acquisition by Petroleo
Brasileiro S.A. (Petrobras) of a 58.6% interest in Perez Companc
S.A., Pecom's parent company. Fitch believes that, if finalized,
the acquisition by Petrobras would have a positive effect on
Pecom's financial flexibility and credit profile.

Pecom Energia is one of the most vertically integrated energy
conglomerates in Latin America. Core business activities include
oil and gas exploration, production and transportation; refining
and marketing; petrochemicals; and electricity. Other businesses
include small investments in agriculture, forestry and mining.
Pecom is controlled (98.21%) by Perez Companc S.A., an Argentine
holding company.

          Alejandro Bertuol, 212/908-0393 (New York)
          Ana Paula Ares, +54 11 4327-2444 (Buenos Aires)
          Media Relations:
          James Jockle, 212/908-0547 (New York)

REPSOL YPF: Corporate Governance Changes Prompt Board Shuffle
Repsol YPF SA, which is trying to improve corporate governance
and make its board more reflective of its shareholders, plans to
increase the voting power of independents on its board.

As part of the plan, Repsol, Europe's fifth-biggest oil company,
is now negotiating with Banco Bilbao Vizcaya Argentaria SA and La
Caixa savings bank to remove two directors who represent the
banks in the Company's board.

Should the plan be implemented, Repsol would be left with its two
biggest investors with one director each on a 10-member board
that includes six independent directors. Josep Vilarasau, La
Caixa's chairman, and Jose Ignacio Goirigolzarri, chief executive
of Banco Bilbao, would quit their vice chairmen posts at Repsol.

La Caja de Ahorros y Pensiones de Barcelona, or La Caixa, owns
about 12.5% of Repsol, while Banco Bilbao has about 8.4%.

          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


GLOBAL CROSSING: Panel To Get Greater Power To Issue Subpoenas
Attempts by Global Crossing Ltd. and Qwest Communications to
withhold information will give the chairman of a House committee
investigating both companies greater power to issue subpoenas,
the AP reports, citing a spokesman for the committee.

"In some cases, both companies have been slow to produce
documents and in other cases, refused to provide them
altogether," said Ken Johnson, spokesman for the House Energy and
Commerce Committee and its chairman, Rep. Billy Tauzin, R-La.

Global and Qwest are under investigation for deals between
telecommunications companies to swap capacity on their networks,
a transaction, which critics consider phony designed to boost
revenues and mislead investors.

Already, the panel has subpoenaed Gary Winnick, chairman of
Global Crossing, to appear at a Sept. 24 hearing, although
Johnson said it is now more likely that Winnick will be called to
testify at a later hearing.

The later hearing, for which a date has not been set, probably
will also include Joseph Nacchio, Qwest's former chief executive,
and other high-ranking officials from Qwest and Global Crossing,
Johnson said.

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

          Tisha Kresler, +1-973-410-8666

          Ken Simril, +1-310-385-5200

TYCO INTERNATIONAL: Moody's Maintains Ratings Under Review
Tyco International Ltd's current rating status remains the same
and its ratings, as well as its subsidiaries', will remain under
review for possible downgrade despite the information it
disclosed in its recent 8K filing, says Moody's Investors

In a filing made Tuesday with the Securities and Exchange
Commission, Tyco revealed the result of the first phase of an
investigation that is ongoing. The Company gave details of what
it called a "pattern of improper and illegal activity" by former
management. The allegations include loans forgiven to 51
employees, including former Chief Executive Dennis Kozlowski,
former Chief Financial Officer Mark Swartz and seven "key
managers," several of whom own Boca Raton homes. The filing also
detailed the actions that have been taken by the Company to
strengthen its management structure and corporate governance.

The rating agency noted that these actions provide a basis for
improved governance practices in the future and for re-
establishing the Company's credibility in the financial markets.

Nevertheless, the rating agency noted that the ratings remain
under review pending the outcome of several factors:

(1) any emerging issues related to the second phase of the
Company's ongoing internal investigation,
(2) outcome of external reviews consisting of legal
investigations and SEC inquiries,
(3) other potential litigation matters,
(4) any changes in the Company's strategic direction that could
include potential goodwill or asset impairment charges and
financial policies under the new management team,
(5) the Company's ability to implement a comprehensive
refinancing plan including its ability to repay/refinance
maturing debt over the next 12-18 months, (including two
convertible debt issues that have "put" features that could
require significant cash calls in calendar 2003 and Tyco's
US$3.855 billion term loan that matures in February 2003), and
(6) the Company's ability to restore profitability to historical
levels, especially within the Electronics segment, as well its
ability to generate meaningful free cash flow in an operating
environment where Tyco expects more modest 10-15% organic growth.

Moody's noted that the misappropriation of corporate funds and
resources by former executive officers and board members of Tyco
that were uncovered in the first phase of the Boies internal
investigation was extensive. The Company has taken significant
actions to improve its internal governance practices and has also
initiated steps to seek restitution of corporate funds from prior
management and directors.

However, findings stemming from the second phase of the
investigation, intended to scrutinize the divisional level and
address, among other things, ongoing accounting concerns, will be
crucial to restoring investor, customer, and supplier confidence.

Moody's continuing review will examine the findings of the second
phase study including the presence and significance of any new
accounting disclosures. The rating agency commented that
confirmation of the current ratings, and ultimately Tyco's
success in normalizing banking relationships and accessing the
capital markets, will be dependent on the absence of further
negative news surfacing from ongoing investigations including the
second phase of the internal study, expected to be completed
later this Fall.

With regard to corporate governance issues, Moody's said that
Tyco's Board decision not to stand for re-election provides an
opportunity for the Company to re-establish its governance
standards without the lingering questions associated with prior
management and directors. The nomination of the proposed slate of
new board members, along with the new chief financial officer and
chief counsel appointments, represent positive steps taken by
Tyco's new CEO. Also viewed very constructively is the expanded
second phase of the internal investigation that should provide
greater clarity as to the quality of Tyco's financial reporting.
The rating agency expects that Tyco's free cash flow generation
for this quarter will be within the range of $800 million to $1
billion and the Company's liquidity, enhanced by $4.4 billion of
proceeds from the CIT IPO, remains strong in the near-term.
Scheduled maturities of $1 billion of debt have been paid off
this quarter. However, Moody's noted that Tyco still faces
liquidity and refinancing risks associated with its significant
debt burden with sizable maturities over the next 12 -16 months.

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

CONTACT:  Gary Holmes (Media)

          Kathy Manning (Investors)

TYCO INTERNATIONAL: Eliminating Brittish Official From Board
Lord Ashcroft will not be renominated to Tyco International Ltd.
Board of Directors. The former Tory Party treasurer was one of
the directors under fire after the Company lost some US$600
million in pilfered funds, according to the Knight Ridder News.

Ashcroft, 55, had been a member of the Tyco Board since 1984. He
was reelected to board again last February, and is now one of the
directors to be sacked for failing to check the Company's ex-CEO
L. Dennis Kozlowski's activities. Earlier, he had filed his
resignation to give the new leadership a clean slate to shake up
the Company.

A few years ago, Ashcroft was under investigation over a property
in Boca Raton, Florida. His wife bought the property from him for
US$100, then sold it to Tyco executives for US$2.5 million on the
same day. No suggestion of wrongdoing was found.

Recently, major shareholders have been clamoring an extensive
cleanup of the board. Tyco's new CEO, Edward Breen, disclosed
that the board had voted not to nominate or support re-election
any of the nine current board members who were under Kozlowski.

Kozlowski, along with two other former Tyco executives, are
currently under arrest in New York. They are facing charges of
enterprise corruption and grand larceny for allegedly pilfering
some $600 million from Tyco. Kozlowski allegedly spent company
funds on mansions, yachts, fine art, and a million-dollar
birthday party in Sardinia.

Due to the scandals Tyco is facing, its shares have fallen to
US$17 last Friday from US$60 in January. The decrease gives
Ashcroft who is a former billionaire, a paper loss of about
US$240 million on his holding.

TYCO INTERNATIONAL: Revelations May Hasten Pay Disclosure Reform
Tyco International Ltd., a Bermuda-based conglomerate, said
former Chief Executive Dennis Kozlowski inappropriately used
company loan programs to pay personal expenses totaling millions
of dollars, in an SEC filing last Tuesday.

According to Knight Ridder Business News, the breathtaking array
of expenses includes millions spent on property, construction,
and interior decorating, US$3,000 worth of coat hangers, a
US$17,100 traveling toilette box, a $6,300 sewing basket, and a
US$2,200 wastebasket, among others.

Experts believe that such a disclosure could lead to the
formulation of new compensation disclosure rules.

The Tyco filing follows divorce-case revelations on the
retirement benefits former General Electric Co. CEO Jack Welch
got from his company. Welch was provided an apartment, food, wine
and domestic help. He was even given access to use company

Earlier this week, Welch agreed to pay for most of the things the
company provided him at an estimated cost of more than US$2
million a year. The company said that the SEC has launched an
informal investigation, saying it "believes it has complied with
the disclosure requirements" on Welch's benefits.

According to experts, the two revelations bring the disclosure
requirements under scrutiny, despite dissimilarites between the
two situations. They also stress that new rules on compensation
disclosure are overdue. According to the SEC, they are examining
increased requirements for the said disclosures.

"These are things that shareholders would like to know about and
should have a right to know about," said Cindy Schipani, a
University of Michigan business law professor and co-director of
the business school's corporate governance and social
responsibility program.

Professor Schipani further said that enhanced disclosure could
prompt companies to shy away from pay package excesses because of
the potential embarrassment.

"That may help rein in some behaviors that go too far, if they
have to be disclosed," she added.

A group of important business and government people assembled by
the Conference Board research group Tuesday, urged companies to
address the issue.

"There should be conspicuous strengthening of conspicuous
disclosure of all material aspects of compensation, stock options
and all employment agreements," former Commerce Secretary and
commission co-Chairman Pete Peterson said in releasing the
report. "The unfortunate recent headlines we've been reading make
clear the need for full and prompt disclosure."

Experts further asserted that the new rules on voluntary
disclosures from companies could take any of several forms:
prompt announcements when companies forgive loans to company
executives; a range or a reasonable estimate of annual retirement
benefits guaranteed to CEOs; listing former CEOs for several
years in the table that details the executive compensation;
providing more information about current and ongoing costs of
executive pension plans; or even disclosure of a CEO's income as
reported on a W-2 form filed with the IRS.

However, they agree on the intricacy of many of these proposals.

Peterson suggested, "Why don't we make them more conspicuous? Our
mantra is plain sight, plain English." addressing arguments that
relevant disclosures are already in regulatory filings.

"The greater the detail, the more numbing the information
becomes," said Jerold Siegan, co-chair of the corporate
governance practice at Arnstein & Lehr, a Chicago-based law firm.
"If it's disclosure that's unreadable to the public, it's not

"No board or compensation committee wants to be in a position to
have big surprises come out," according to Eliot Robinson, a
partner at the Powell, Goldstein, Frazer & Murphy law firm who
teaches at the Directors' College at the University of Georgia
business school. He added that new rules--either narrative
descriptions or dollar amounts--and more voluntary disclosure
wouldn't surprise him.

But he elaborated that the value of goods and services can change
substantially over time. Benefits now deemed "material" -- a
common standard in SEC disclosure requirements - may not have
been during the time they were promised.

In Tyco's case, however, several experts agree that it would be
difficult to create rules to prevent what Kozlowski had allegedly
done, since he formulated the relocation loan program to include
all salaried employees where benefits wouldn't be covered by
compensation disclosure rules.

Last week, Kozlowski, along with another Tyco executive was
charged with embezzling the company of tens of millions of
dollars by borrowing money and awarding themselves unauthorized
bonuses to help repay the loans.

Kozlowski pleaded innocent of the charges, saying he was unaware
of the individual expenses, and that the board members approved
of the loan and bonus programs he used.


AES CORP.: Asset Sale Expected Outside US, Latin America
Arlington, Virginia-based AES Corp. said that asset sales this
year are likely to take place outside the U.S. and Latin America
because of low prices and regulatory problems, relates Bloomberg.

"There are a lot of people out there with the goal of selling
assets in the merchant generation business, and we're finding the
U.S. assets are not attractive," AES Chief Executive Officer Paul
Hanrahan said at a conference in New York. "In Latin America
there is also not much in the way of interest."

The Company which, according to Hanrahan, is negotiating with
lenders to roll over approximately US$1.3 billion in bank loans
due next year into new loans, is trying to sell US$800 million
worth of assets this year. AES also expects to save US$200
million this year through cost cuts.

AES is a leading global power company comprised of competitive
generation, distribution and retail supply businesses in
Argentina, Australia, Bangladesh, Brazil, Cameroon, Canada,
Chile, China, Colombia, Czech. Republic, Dominican Republic, El
Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan,
the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Qatar,
South Africa, Sri Lanka, Tanzania, Uganda, Ukraine, the United
Kingdom, the United States and Venezuela.

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

          Kenneth R. Woodcock, 703/522-1315
          Investor Relations:
          Web Site:

BCP TELECOMUNICACOES: Anatel Authorizes Rate Hike
Brazilian mobile operator BCP Telecomunicacoes obtained approval
from the country's telecoms regulator Anatel to increase its
rates 6.25% in its key market of Sao Paulo city and 7.37% at its
northeastern operation. The new rates, according to Business News
Americas, will become effective after BCP publishes the increases
in local newspapers for two consecutive days.

Revenues lost by BCP since February are hard to calculate,
although, on average, operators that had their new rates approved
that month saw EBITDA margins rise from 37-38% to 40%.

In late March, BCP's controlling shareholders Bellsouth (NYSE:
BLS) and local bank Safra allowed BCP to default on debts of
US$375 million. The default caused international credit rating
agency Standard & Poor's to lower BCP's credit rating from 'BrCC'
to 'brD.'  That default was followed by another default -- US$1.6
million debt that came due in April. The latest default forced
creditors to take over the company's cash management.

Things would have been settled in June if not for the withdrawal
by Bellsouth of an offer to repay debts, provided local banks
allow a US$110 million discount.

          Address: Rua Fl>rida, 1970 4o andar
          Sao Paulo - SP
          Tel: 55 11 5509-6428
          Fax: 55 11 5509-6257
          Home Page:

CSN: Shares Plummet Following Bear Stearns Downgrade
Cia. Siderurgica Nacional SA (CSN) shares tumbled BRL1.40, or
3.8%, to BRL35.40, its lowest price since Aug. 15, reports
Bloomberg. The stock plunged after Daniel C. Altman and Roberto
Ellinghaus, analysts with Bear, Stearns & Co. downgraded Brazil's
second-largest steel maker to "peer perform" from "outperform."

"The premise of our Aug. 8 upgrade of Cia. Siderurgica Nacional
that Brazil risk would decline following the (International
Monetary Fund) package has not occurred," the analysts said in a
report. "While we see little downside, share outperformance may
be challenging while Brazilian fundamentals remain weak."

To see financial statements:

CONTACT:  Jose Marcos Treiger
          CSN - Investor Relations General Manager
          Tel. +55 21 2586 1442

          Isabel Viera
          Thomson Financial
          Tel. +1 (212) 701-1823


EDELNOR: Seeks Authority to Pay Prepetition Creditors
Empresa Electrica del Norte Grande SA seeks authority from the
U.S. Bankruptcy Court for the Southern District of New York to
pay prepetition creditors in accordance with the its customary
business practices, except Participation Certificate Claims,
employee claims and tax claims. The Debtor estimates the sum of
all accrued and unpaid claims as of the Petition Date to be

The Debtor submits that payment of prepetition claims of all
creditors in the ordinary course of business, is necessary to
ensure that the Debtor continue to receive goods and services.  
The services of prepetition creditors are critical to the
Debtor's day-to-day operations and are crucial for its successful
reorganization.  The Debtors point out that most Creditors are
general unsecured trade creditors supplying fuel transportation
services that are essential to the Debtor's business.

The Debtors further explain that only Participation Certificate
Holders are impaired under the Plan, who have voted to accept the
Plan. The Plan does not impair any other creditors or equity
security holders. Given that the Participation Certificate
Holders have overwhelmingly voted to accept the Prepackaged Plan,
it would serve no useful purpose to delay the Debtor's payment of
claims of all Creditors until consummation of the Plan.  

The Debtors are confident that, in any event, all such other
creditors will be paid in full as due and payable in the ordinary
course under the confirmed Plan. The Debtor represents that it
has available cash-on-hand to pay all claims of Creditors in the
ordinary course of business as they may become due and payable.

Moreover, Chilean law obligates the Debtor to pay its obligations
and failure to make the payments would constitute a violation of
Chilean law and give rise to additional liabilities.

Empresa Electrica del Norte Grande SA is a partially integrated
electric utility engaged in the generation, transmission and sale
of electric power in northern Chile. The Company filed for
chapter 11 protection on September 17, 2002.

Lindsee Paige Granfield, Esq., Thomas J. Moloney, Esq., at
Cleary, Gottlieb, Steen & Hamilton represent the Debtor in its
restructuring efforts.  When the Debtor filed the case, it listed
$612,861,000 in total assets and $385,483,000 in total debts.

          Avenida Apoqindo 3721, Oficina 81
          Las Condes
          Santiago, Chile

DEBTOR'S COUNSEL: Lindsee Paige Granfield, Esq.
                  Thomas J. Moloney, Esq.
                  One Liberty Plaza
                  New York, NY 10006
                  (212) 225-2000
                  Fax : (212) 225-3499


AVANZIT SA: Colombian Unit May Appeal Court Ruling
Radiotronica, the Colombian unit of Avanzit SA, is considering
appealing a court ruling that ordered it to pay a EUR16.3-million
fine and prohibits it from receiving EUR8.4 million to carry out
a project in Bogota.

According to its parent, which filed for receivership in May, any
payments will be conditional on an agreement with creditor banks
to restructure its outstanding debt.

Such an agreement is expected to be reached next month, the
Company said, adding that this should allow it to come out of
receivership before the end of this year.


SAVIA: Bionova to Challenge Amex Notification
Bionova Holding Corporation (AMEX:BVA) announced Wednesday that
it received notice from the American Stock Exchange that it had
determined the Company no longer meets the Exchange's
requirements for continued listing. As such, the Company's common
stock is subject to being delisted by the Exchange.

The Exchange based its determination on the Savia's history of
losses and other factors which, in the opinion of the Exchange,
indicate substantial doubt about the Company's ability to
continue as a going concern. The Company has appealed this
determination and requested a hearing before a committee of the
Exchange. There can be no assurance that the Company's request
for continued listing will be granted.

Bionova Produce Inc., a subsidiary of the Company, has come into
compliance with all of the covenants under its bank debt. As
previously reported, as of July 31, Bionova Produce was out of
compliance because its borrowings had exceeded its borrowing
base. Bionova Produce is now negotiating with the bank to renew
its line of credit and to obtain a new term loan to help finance
the next growing season.

Also, the Company's technology subsidiary, DNA Plant Technology
Corporation, licensed to Seminis Vegetable Seeds Inc., an
affiliate of the Company, certain rights to produce and to
distribute in Europe and Asia vine sweet mini-peppers and certain
other peppers under patents owned by DNAP. DNAP is continuing its
efforts to sell or license its intellectual property assets.

The Company's Annual Meeting of Stockholders was held on Aug. 27,
2002. Bernardo Jimenez and Eli Shlifer were re-elected to the
Board, to be joined by new directors Alejandro Sanchez, Alejandro
Perez and Adrian Rodriguez. Also, Gabriel Montemayor, the
Company's Chief Financial Officer, has resigned from the Company.
The Company expects to announce its new Chief Financial Officer
in the near future.

Bionova Holding Corporation is a leading fresh produce grower and
distributor. Its premium Master's Touchr and FreshWorld Farmsr
brands are widely distributed in the NAFTA market. Bionova
Holding Corporation is majority owned by Mexico's Savia, S.A. de

Savia advises that all statements in its press release, other
than statements of historical facts, are "forward-looking"
statements, including without limitation statements regarding
Bionova Holding's financial position, business strategy, plans
and objectives of management, and industry conditions. Although
the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. The
following factors, among others, may affect the Company's actual
results and could cause such results to differ materially from
those expressed in any forward-looking statements made by or on
behalf of the Company: liability resulting from shareholder
lawsuits, inability to obtain additional financing, competitive
factors, agribusiness risks, governmental and economic risks
associated with foreign operations, commercial success of new
products, proprietary protection of and advances in technology,
as well as the ability of the Company to successfully integrate
recent acquisitions and its management information systems and
controls. Further information on the factors that could affect
the Company's financial results is contained in the Company's
Form 10-Q for the quarter ended June 30, 2002, and Form 10-K for
the year ended Dec. 31, 2001, which have been filed with the
Securities and Exchange Commission.

          Investor Relations:
          Fernando Menendez, 877/393-7118


INTESABCI: Fitch Places on Negative Ratings Watch
Fitch Ratings, the international rating agency, on Wednesday
placed IntesaBci's Long-term rating of 'A+' and Individual of 'C'
on Rating Watch Negative. The Short-term rating of 'F1' and
Support of '2' are affirmed.

The rating action reflects Fitch's concerns that despite
restructuring, the group faces several immediate challenges that
are likely to put pressure on its ratings. The main concerns are
of earnings remaining low while restructuring takes place, and
thus of the bank's impaired capacity to make additional charges
for unforeseen problems. Fitch welcomes the group's greater
emphasis on retail business, but considers that more loan loss
provisions may be needed to improve asset quality so that it is
similar in quality to that of its national and international
peers. Capital adequacy ratios are also likely to remain
stretched until net income recovers to a reasonable level.

In IntesaBci's recently announced new strategic plan, there are
many positive elements, including the focus on creating a fully
unified bank, the desire to exit from Latin America, stronger
emphasis on retail banking, improvements in organisational
structure, and the goal of strengthening capital adequacy,
boosting profitability and reducing credit risk.

The agency will be visiting the bank shortly to discuss these
various matters with management, and expects to resolve the
Rating Watch soon afterwards.

Contact: Matthew Taylor, London Tel +44 (0)20 7417 4345; Matthew
Hegarty, London +44 (0)20 7417 6319

NOTE: Fitch Ratings's Support and Individual Ratings for Banks --
- Fitch's Individual ratings assess how a bank would be viewed if
it were entirely independent and could not rely on external
support. Its Support ratings deal with the question of whether a
bank would receive support from its owners or from the state if
it were to get into difficulty. These ratings are not debt
ratings but rather, respectively, an assessment of the intrinsic
strength of a bank and of any level of outside support that may,
or may not, be available to it.

Media Relations: Kris Anderson 44 20 7417 4361, London

WEISE SUDAMERIS: Peru's Woes May Hamper Sale
IntesaBci may find it hard to sell Banco Wiese Sudameris if the
Italian group finally decides to offload the second-largest bank
in Peru, Dow Jones suggests. Peru's banking system has weathered
recent storms well. However, some analysts believe that political
and economic concerns could dampen interest in the Andean nation,
and some analysts say there could be a shortage of buyers ready
to pump money into Peru's limited market.

"The majority of potential buyers of banks in Latin America
aren't going to be coming to Peru but to other countries with
larger markets," said Deutsche Bank banking analyst Valerie Fry.

Besides, the bank, which is the offspring of a 1999 merger of
banks Banco Wiese Ltdo and Banco de Lima Sudameris, has had some
difficult years and the Italian parent has injected hundreds of
millions of dollars to improve its balance sheet.

A struggling Banco Wiese had to be bailed out by a foreign buyer,
despite generous aid from the administration of now-exiled former
president Alberto Fujimori.

Banco Wiese Sudameris has officially said that it is looking
closely at its businesses to see how they can be made more
efficient. After that analysis and reorganization, "the best
alternatives to optimize the contribution of the bank to Grupo
IntesaBci will be evaluated," the bank said.

"In my view, if IntesaBci finally decides, after this second
stage, for the option to also leave Peru, this decision won't be
taken before two or three years, given that at this time there
aren't any negotiations to sell," Banco Wiese Sudameris' deputy
financial manager Rafael Llosa said recently.

Banque Sudameris, part of the IntesaBci group, now controls 94%,
while the Wiese family holds 1.82%. A government trust has a
2.27% stake.

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


AVENSA: International Flights May Be Curtailed
Aerovias Venezolanas SA, Venezuela's third-largest airline, may
be forced to reduce its international service and focus on
domestic routes if the country's infrastructure Ministry accepts
the recommendations based on a report that revealed technical

Avensa has sought investors for the US$35 million it needs to pay
debt and upgrade operations. The carrier three years ago withdrew
service on many of its routes as part of a restructuring. Avensa
is partially owned by the Venezuelan government and H.L. Boulton
& Co. SACA.

BANCO INDUSTRIAL: Bad Loans Threaten Bank's Strength
Banco Industrial de Venezuela, the country's fifth-largest bank,
has seen its bad loans more than double this year, as Venezuela's
recession and high interest rates made it difficult for borrowers
to repay their debt.

Citing government officials, Bloomberg reveals that the state-
owned bank's overdue loans now make up 48% of its portfolio. Bad
loans now total VEB148.1 billion (US$103 million), against
VEB64.9 billion at the start of the year.

Doubts have been raised regarding Banco Industrial's strength
following an appeal by President Hugo Chavez to supporters Sunday
to withdraw their funds from commercial banks and deposit them in
state banks, such as Banco Industrial.

Regulators ordered Banco Industrial to raise loan-loss provisions
in June 2000 to cover problems with its loan portfolio.

Banco Industrial, which serves as the bank for many government
agencies, had assets of VEB1.43 trillion as of July 31.

CITGO/PDV AMERICA: Fitch Downgrades Ratings; Outlook Negative
Fitch Ratings has downgraded the senior unsecured debt rating of
CITGO Petroleum Corporation to 'BBB-' from 'BBB'. Fitch has also
lowered the rating on the senior notes of PDV America, Inc. to
'BB+' from 'BBB-'. CITGO is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A. (PDVSA),
the state-owned oil company of Venezuela. The Rating Outlook for
both companies is Negative.

The rating actions reflect Fitch's continued concerns with the
prolonged political and macroeconomic uncertainty in Venezuela as
the country faces sharp economic contraction, accelerating
currency depreciation, a lack of a coherent macroeconomic plan
and increasing social and political tensions. Since the beginning
of 2002, Fitch has downgraded the long-term foreign currency
rating of Venezuela to 'B' from 'BB-' and its long-term local
currency (Venezuelan bolivar) rating to 'B-' from 'B'. The Rating
Outlook for Venezuela remains Negative. Although the strengths
and concerns that have supported CITGO and PDV America's ratings
remain unchanged, the latest sovereign downgrades with continued
Negative Rating Outlook heighten the possibility that the
ultimate shareholder (i.e. the Venezuelan government) may
interfere with CITGO and PDV America, impairing their financial

Venezuela has increasingly extracted cash out of CITGO and PDV
America in recent years as the downstream sector flourished in
2000 and 2001. Since 1998, the company has paid dividends of
approximately $1.1 billion ($570 million net of capital
contributions) to PDVSA. CITGO now faces a significant capital
expenditure program to meet the upcoming low sulfur gasoline and
diesel regulations, the current downturn in refining margins and
continued force majeure cutbacks in crude supply under the PDVSA
contracts. The company's current projections at conservative
margin assumptions, however, indicate that the company will
continue to maintain historic credit ratios.

PDV America also faces the maturity in August 2003 of the
remaining $500 million of senior notes that were upstreamed to
PDVSA in 1993. Although PDVSA repaid the first $500 million of
mirror notes, PDVSA could look to CITGO for some of the repayment
but the shareholder has indicated that it will not extract
dividends above CITGO's targeted debt-to-capitalization target of
47%. CITGO is in the process of renegotiating both its 5-year and
364-day revolving bank facilities, both of which mature in May

As the primary outlet for Venezuelan crude, the strategic
importance of CITGO to PDVSA, and ultimately Venezuela, has not
changed. Furthermore, the extent to which PDVSA can extract cash
from CITGO is limited by CITGO/PDV America's debt covenants and
the company's ability to raise debt. The bond agreements
restricting the upstreaming of dividends and changes to the crude
contracts remain intact. In the event of a loss of crude supply
from Venezuela, the company also has the ability to process
alternate heavy crudes and is doing so under the current force
majeure. Additionally, PDVSA and CITGO management have repeatedly
stated their intent to keep CITGO's credit profile within
investment grade. Excluding the Venezuela related volatility,
CITGO's financial flexibility and operating profile are
reflective of a solid 'BBB' U.S. refining company.

As one of the largest independent crude oil refiners in the
United States, CITGO owns three complex crude refineries and two
asphalt refineries with a total combined capacity of 750,000
barrels per day (bpd). The company also owns approximately 42%
interest in LYONDELL-CITGO Refining L.P., a limited liability
company that owns and operates a 265,000-bpd crude oil refinery
in Houston, TX. CITGO markets refined products through more than
13,397 independently owned and operated retail sites.

          Bryan Caviness, 312/368-2056
          Alejandro Bertuol, 212/908-0393
          James Jockle, 212/908-0547 (Media Relations)


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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