/raid1/www/Hosts/bankrupt/TCRLA_Public/021001.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, October 1, 2002, Vol. 3, Issue 194

                           Headlines

A R G E N T I N A

AGUAS ARGENTINAS: Currency Devaluation Thwarts 1H02 Results
AOL LATIN AMERICA: Forecasts Smaller 3Q02 Losses; Funding to `04
AOL LATIN AMERICA: Plans Nasdaq Warning Appeal In Two Weeks
BANCO SUQUIA: Hipotecario Joins Race For Control
EDEERSA: Sale Attracts Several Interested Bidders
NII HOLDINGS: Plan Confirmation Hearing Postponed
PEREZ COMPANC: Petrobras Buyout Awaits Lengthy Restructuring


B E R M U D A

TYCO INTERNATIONAL: Ratings Still On Watch Negative
TYCO INTERNATIONAL: Calls Former Execs' Payout `Obligatory'
TYCO INTERNATIONAL: Ex-CEO Out on Bail; Ex-CFO's Bail Rejected


B R A Z I L

ENRON: Tractebel Overcomes First Obstacle In Bahamas Unit Buy
KLABIN SA: Analysts See Default Unlikely, Solution Unclear


C H I L E

ENERSIS: Two Top Execs Tender Resignations
ENERSIS: Parent Considers Domestic Asset Sales
SILICA NETWORKS: New Owners Assume Operating Assets


C O L O M B I A

IMPSAT COLOMBIA: Restructures $27.9M Debt; Extends Maturities
SEVEN SEAS: Hires CIBC to Advise Potential Guaduas Sales


M E X I C O

AHMSA: Creditors Seek Bankruptcy Declaration
EMPRESAS ICA: Selling Cabo Stake To Pay Down Debts
HYLSAMEX: Restarts Operations at DAP Plant


P A N A M A

BANISTMO: Fitch Revises Outlook Downward To Negative


     - - - - - - - - - -


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

AGUAS ARGENTINAS: Currency Devaluation Thwarts 1H02 Results
-----------------------------------------------------------
Waterworks concessionaire Aguas Argentinas swung to red in the
first half of this year, posting a loss of ARS886 million (US$239
million) against a profit of ARS43 million in the same year-ago
period, reveals Business News Americas. The Company attributed
the negative result to the devaluation of the peso, which
affected operating costs and debts with the Inter-American
Development Bank (IDB) and the International Finance Corporation
(IFC), which total some US$700 million. Aguas went into default
in May this year.

The Argentine utility has been lobbying for a 42% increase in
tariffs to offset losses in the wake of the country's currency
float and subsequent devaluation. However, earlier this week, a
court suspended rate adjustments hearings with public service
providers. Aguas Argentinas has no comment on the situation, a
company spokesperson said, adding that the economy ministry would
appeal the ruling.

The spokesperson did say that, in addition to its request for
rate adjustments, Aguas is also trying to collect some ARS70
million the government owes in unpaid bills for water and
sewerage service.

Aguas Argentinas, which provides drinking water to 7.6 million
residents and sewerage service to another 5.7 million in capital
Buenos Aires and the greater metropolitan area, is controlled by
French group Suez's Ondeo.

CONTACT:  SUEZ
          Media:
          Antoine Lenoir
          Phone: +331-4006-6715
                 or
          Investors:
          Arnaud Erbin
          Phone: +331-4006-6489
                 or
          Belgium
          Guy Dellicour
          Phone: +322-507-02-77


AOL LATIN AMERICA: Forecasts Smaller 3Q02 Losses; Funding to `04
----------------------------------------------------------------
AOL Latin America (NASDAQ-SCM:AOLA) announced Friday that it
expects to report narrowed losses for the third quarter of 2002
and that it expects its current funding to allow it to finance
operations into the fourth quarter of 2003.

The shrinking loss margin would be the ninth quarter in a row
that AOL Latin America has reduced its per share deficit. The
company also said that its total revenues are expected to weaken
compared to the previous quarter primarily due to currency
devaluations and lower advertising revenue. In addition, the
company expects a modest reduction in membership as it continues
to implement initiatives to improve its base of paying members.

AOL Latin America now expects its cash on hand plus available
financing to continue to fund operations into the fourth quarter
of 2003, as a result of decreased operational expenses arising
from initiatives implemented at the beginning of 2002. The
company has also benefited from regional currency devaluations
because most of its costs are in local currencies. The company
has taken significant measures to reduce operating expenses by
realigning its network and introducing more efficient systems and
procedures to its call center operations. In addition, the
company continues to implement marketing initiatives that target
higher quality paying members more efficiently, which is expected
to result in better rates of collection and increased future
revenue. The company currently has over 400 retail point-of-sale
locations and expects to increase this number in the future.

Charles Herington, President and CEO of AOL Latin America said:
"AOL Latin America expects to deliver its ninth straight quarter
of narrowed losses which is an important factor in our ability to
continue to finance our operations into the fourth quarter of
2003 with our current funding. We have implemented a series of
initiatives since the end of last year that are proving to be
quite efficient despite the very difficult economic environment
in the region. We continue to believe in the long-term prospects
of the Internet in Latin America and remain committed to playing
an important role in the continued development of the industry."

About AOL Latin America

America Online Latin America, Inc. (NASDAQ-SCM:AOLA) is the
exclusive provider of AOL-branded services in Latin America and
has become one of the leading Internet and interactive services
providers in the region. AOL Latin America launched its first
service, America Online Brazil, in November 1999, and began as a
joint venture of America Online, Inc., a wholly owned subsidiary
of AOL Time Warner Inc. (NYSE:AOL), and the Cisneros Group of
Companies. Banco Itau, a leading Brazilian bank, is also a
minority stockholder of AOL Latin America. The Company combines
the technology, brand name, infrastructure and relationships of
America Online, the world's leader in branded interactive
services, with the relationships, regional experience and
extensive media assets of the Cisneros Group of Companies, one of
the leading media groups in the Americas. The Company currently
operates services in Brazil, Mexico and Argentina and serves
members of the AOL-branded service in Puerto Rico. It also
operates a regional portal accessible at http://www.aola.com.
America Online's 35 million members worldwide can access content
and offerings from AOL Latin America through the International
Channels on their local AOL services.

CONTACT:  AMERICA ONLINE LATIN AMERICA, INC., Fort Lauderdale
          News Media:
          Fernando Figueredo, 954/689-3000
          LatAmPressMail@aol.com
                  or
          Investor Relations:
          Monique Skruzny, 954/689-3000
          AOLAIRR@aol.com


AOL LATIN AMERICA: Plans Nasdaq Warning Appeal In Two Weeks
-----------------------------------------------------------
Fernando Figueredo, corporate communications VP at American
Online Latin America, disclosed that the regional ISP and content
provider will meet with Nasdaq officials in the next couple of
weeks to appeal a warning for not meeting the requirements for
listing on the Nasdaq SmallCap Market, relates Business News
Americas. AOLA received a letter from Nasdaq in late August
stating it had not met the US$35 million market capitalization
requirement for continued listing of its Class A Common Stock,
which continues to trade while the company appeals the ruling.

The Company expects Nasdaq to make a final decision 2-4 weeks
after the meeting. AOLA shares were trading at US$0.25 midday
Friday, compared to over US$3 a year ago.


BANCO SUQUIA: Hipotecario Joins Race For Control
------------------------------------------------
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 local financial daily El Cronista, Argentine
mortgage bank Banco Hipotecario has joined the race for the
control of Suquia. Already, two institutions, local bank Banex
and Argentine business group Petersen, have expressed interest in
buying Suquia, which has a strong presence in the economically
important Cordoba province.

However, banking analysts are now questioning Hipotecario's
ability to pay for the control of Suquia. In the middle of
August, Hipotecario announced that it would default on debts
worth US$1.15 billion because of Argentina's financial crisis.
The default limits Hipotecario's acquisition options, at least in
the short-term, the local analyst said.

However, Hipotecario may gain time due to the conflict between
Nacion and the central bank over how to sell Suquia. Both
institutions believe they have the right to manage the sale.

Hipotecario is Argentina's largest mortgage lender and is owned
by private investors and the Argentine government. The government
had plans to sell its stake in the bank on the stock market
before the country's economic crisis erupted at the end of last
year.

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.

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
devaluation.

CONTACT:  BANCO SUQUIA S.A
          25 de Mayo 160 Cordoba
          5000 Cordoba
          Argentina
          Phone: 0351-422-2048
          Fax: 0351-420-0279
          E-mail: relacioninversores@bancosuquia.com.ar
          Home Page: http://www.bancosuquia.com.ar/
          Contact:
          Bernard Pierre Jean Brousse, Vice-President
          Nestor Jose Belgrano, Director

          BANCO DE ENTRE RIOS S.A. (BERSA)
          Monte Caseros 128
          Parana
          3100 Entre Rios
          Argentina
          Phone: 0343-4201200
          Fax: 0343-4213869
          Contact: Alberto Roque Ferrero, Vice-President

          BANCO BISEL S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Argentina
          Phone: 0341-4200300
          Home Page: http://www.bancobisel.com.ar/
          Contact:
          Guillermo Harteneck, President
          Jean Luc Perron, Vice President
          Bernard Brousse, Vice President


EDEERSA: Sale Attracts Several Interested Bidders
-------------------------------------------------
The sale of US power company Public Service Enterprise Group
Inc.'s (PSEG) unit in Argentina has caught the attention of
several companies. News of the present interest came from  
company spokesperson Paul Rosengren in a Business News Americas
report. Mr. Rosengren withheld the names of the interested
companies, however.

PSEG, the owner of New Jersey's largest utility, recently
announced a decision to pull out of Argentina after posting a
US$264-million second-quarter loss mostly from writing off
electricity businesses in the country.

The Company is trying to sell its 90% stake in Argentine power
distributor Empresa Distribuidora de Electricidad de Entre Rios
(Edeersa) in the middle of deteriorating political and economic
climates in Argentina. The effort also faces negative
implications from energy rate freezes and the fall in domestic
energy demand.

PSEG is currently suing AES Corp. for backing out of an agreement
to buy stakes in three Argentine electric-distribution companies
and two power plants for US$420 million.


NII HOLDINGS: Plan Confirmation Hearing Postponed
-------------------------------------------------
NII Holdings, Inc., previously known as Nextel International,
announced Friday that the final confirmation hearing in its
bankruptcy proceedings before the U.S. Bankruptcy Court in
Wilmington, Del., which was originally scheduled for September
27, has been postponed and has been rescheduled for October 22 at
12:30.

ABOUT NII HOLDINGS, INC.

NII Holdings, Inc., formerly known as Nextel International, is a
substantially wholly owned subsidiary of Nextel Communications
(Nasdaq:NXTL). NII has operations in Mexico, Brazil, Peru,
Argentina, Chile and the Philippines. NII offers a fully
integrated wireless communications tool with digital cellular,
text/numeric paging, wireless Internet access and Nextel Direct
Connectr, a digital two-way radio feature. Visit the website at
http://www.nextelinternational.com

CONTACT:  NII Holdings Inc., Miami
          Media:
          Claudia Restrepo, 305/779-3086
          claudia.restrepo@nextel.com


PEREZ COMPANC: Petrobras Buyout Awaits Lengthy Restructuring
------------------------------------------------------------
Brazil's Petroleo Brasileiro SA (Petrobras) may have to exercise
substantial patience as its planned buyout of Argentina's Perez
Companc SA, Latin America's largest independent energy producer,
will be complicated by a pending restructuring, Bloomberg
indicates.

The news comes after an unidentified official from Pecom Energia
revealed that the restructuring of about US$950 million, which
was supposed to have been completed Friday, may take another 10
days.

Petrobras has agreed to buy a 58.7% stake in Perez Companc for
US$1.1 billion. However, it has conditioned that all debt must be
restructured before it would proceed with the transaction.

Pecom Energia on Aug. 1 completed its debt swap with bondholders.
The company has sustained a massive revenue drop and has been
forced to renegotiate its debt due to the deep economic recession
in Argentina.

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



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B E R M U D A
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TYCO INTERNATIONAL: Ratings Still On Watch Negative
---------------------------------------------------
Standard & Poor's Ratings Services said Friday that its triple-
'B'-minus long-term corporate credit and 'A-3' short-term ratings
on Tyco International Ltd. and its subsidiaries remain on
CreditWatch with negative implications following a number of
disclosures made in a conference call hosted by the company on
Sept. 25, 2002.

During the call, the company announced an estimated $2.5 billion
writedown in its telecommunications business. Of that amount,
$400 million to $500 million will be cash outlays over an 18-
month period. The company also lowered its earnings guidance for
the current quarter.

The writedown was precipitated by management's decision to
mothball its telecommunications manufacturing while focusing on
network sales and service. Management estimates that this will
reduce operating losses in this business from an annual run rate
of $340 million to about $125 million to $150 million within the
next 12 months to 15 months, with about the same effect on cash
flow. This writedown will not cause Tyco to breach the maximum
52.5% debt to capital covenant in its bank loan agreements. In
fact, the company has flexibility within the covenant limitations
for significant additional writedowns, which management does not
currently anticipate.

Management currently estimates earnings per share for the current
quarter of 30 to 33 cents per share. This compares with previous
management's estimate of 45 to 47 cents per share. The majority
of the variance (17 cents per share equates to approximately $339
million of net income) is due to an increase in the estimated tax
rate for this fiscal year to 22% from 18.5% following a
recapitalization of certain subsidiaries. This results in lower
projected intercompany debt balances, which reduce the tax-
deductibility of interest expense. The remainder of the variance
is due to continued weakness in the telecommunications business
and the scaling back of the security dealer program to conserve
cash. Management plans to spend $700 million to $800 million a
year on this program in the future versus $1.4 billion this year.
The company expects to generate $800 million to $900 million of
free cash this quarter (versus most recent guidance of $800
million to $1 billion). The situation with some vendors demanding
stricter payment terms has reportedly stabilized and should
therefore not be a further cash drain. Although earnings and cash
flow for this fiscal year are well below original expectations,
they are still at an acceptable level for the ratings given
expectations for debt reduction. Management is expected to
publish its earnings and cash flow expectations for fiscal 2003
within the next several weeks. These will be analyzed when the
ratings are reviewed.

Management also noted that the investigation into the company's
accounting and financial disclosures covering fiscal years 2000
through 2002, which is being conducted by forensic accountants
and outside counsel, is about 40% complete, and that it has not
turned up anything to date that requires additional disclosure.

The ratings could be lowered if: there are significant negative
developments in connection with the internal accounting
investigation or ongoing investigations by law enforcement and
regulatory agencies; debt is not refinanced in a timely manner.

Tyco has public and bank debt maturities during the next 15
months totaling about $5.8 billion, plus the potential "put" of
two zero-coupon debt issues totaling about $5.9 billion. (Tyco
has the option to satisfy $2.3 billion of the latter amount in
common stock at the February 2003 put date. However, it may
choose not to because the current low common share price would
cause significant dilution.) Management expects to have a new
bank credit agreement in place well in advance of the February
2003 maturity of its existing short-term line. Debt has been
reduced by about $1.6 billion during the current quarter, and the
company expects to end the quarter with about $6 billion in cash.

Standard & Poor's 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. Standard & Poor's will also
look to the new senior management team for clarification of
business and financial strategies.

Depending on the company's future capital structure (including
the possibility that security could be granted or other
developments could cause structural subordination), the ratings
on debt obligations that Standard & Poor's currently rates in the
investment-grade category could be lowered, even if the corporate
credit rating remains unchanged.

Credit Analyst: Cynthia Werneth, New York (1) 212-438-7819


TYCO INTERNATIONAL: Calls Former Execs' Payout `Obligatory'
-----------------------------------------------------------
Tyco International Ltd. awarded its former chief finance officer
Mark Swartz a total of US$44.8 million in compensation. Facing
criticism for agreeing to pay the amount while Swartz faces
charges for allegedly stealing from the Company's coffers, Tyco
declared Thursday that Swartz was contractually entitled to the
money and that the Company is reserving the right to recoup the
money if Swartz is found guilty.  

A report from the Knight Ridder News reveals that only US$9
million of the said amount was Swartz's severance pay. The of the
funds rest were from deferred compensation programs and insurance
policies that had been promised to Swartz.

Tyco Spokesman Gary Holmes said the Company had no choice but to
pay the money, as they were covered by pre-existing and binding
agreements. He added that the Company could withhold the money
only if Swartz was convicted of a crime.

Swartz has been indicted, not convicted, of the charges he faces
along with Tyco's former CEO Dennis Kozlowski. Swartz has
officially pleaded not guilty to the charges while his lawyer,
Charles Stillman, offered no comments.

Holmes said that, under a retention deal Swartz had with the
Company, he was entitled to US$91 million. But because of the
Company's lawsuit against him and Kozlowski, as well as the
indictment by the New York district attorney and an action
brought by the Securities and Exchange Commission, Tyco insisted
that Swartz negotiate with them on the compensation. In the end,
Swartz agreed to the US$ 44.8 million.

Apparently Tyco negotiated with Swartz as part of an agreement
that he would stay until they find a replacement for him. Swartz
formulated the Company's complex accounting structure, and
masterminded hundreds of acquisitions.


TYCO INTERNATIONAL: Ex-CEO Out on Bail; Ex-CFO's Bail Rejected
--------------------------------------------------------------
Manhattan State Supreme Court Justice Michael Obus accepted the
bail posted by former Tyco International Ltd. chief executive
officer Dennis Kozlowski. A report from the Associated Press
divulged the judge's decision Friday after a hearing conducted to
determine whether the money was part of the funds Kozlowski
allegedly embezzled from the company's finances.

Obus was satisfied that the US$10 million dollars Kozlowski's ex-
wife Angie posted was part of their divorce settlement.
Kozlowski's original bond was set at US$100 million.

He also noted that Kozlowski had worked for Tyco for 26 years and
had significant assets apart from what he allegedly stole.
Kozlowski was ordered to appear for a stays hearing on Nov. 7.

Meanwhile, the bond Tyco's former financial officer Mark Swartz
offered was rejected. Obus said that the court was not satisfied
with the disposition and origin of Tyco Stock Swartz presented.

Swartz's lawyer, Charles Stillman, said his client received the
stock he posted when he first joined Tyco. Swartz was given until
October 11 to offer more conclusive proof that the money is not
tainted.

Kozlowski and Swartz face charges of grand larceny and enterprise
corruption. Tyco's former general counsel Mark Belnick also faces
charges of falsifying business documents to cover up US$14
million in bad loans.



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

ENRON: Tractebel Overcomes First Obstacle In Bahamas Unit Buy
-------------------------------------------------------------
Tractebel North America, Inc., a unit of Belgian energy company
Tractebel SA, cleared its first hurdle in the purchase of Enron
Corp.'s liquefied natural gas (LNG) project in the Bahamas.
Citing spokeswoman Paulo Rockstroh, Reuters reports that the unit
obtained approval from the New York bankruptcy court on Friday to
proceed with plans to purchase the Enron unit.

Rockstroh would not comment on how much Tractabel paid for the
LNG terminal and pipeline project, pending a decision of the
Federal Energy Regulatory Commission (FERC) for its application
to transfer ownership rights of the pipeline. However, at the
time of Enron's announcement in January 2001, the company
estimated the cost of the project at US$300 million to US$400
million. The FERC approval is expected to come later this week.

Enron filed for bankruptcy protection early December 2001 in the
largest Chapter 11 case ever after Dynegy Inc. abandoned its
US$23 billion takeover of the Houston-based energy trader. Enron
listed about US$40 billion of debt, including off-balance-sheet
project financing. Since the bankruptcy filing, Enron has been
restructuring its accounts and selling assets.

CONTACTS: Mark Palmer of Enron Corp., +1-713-853-4738
          Enron Corp.
          Investor Relations Dept.
          P.O. Box 1188, Suite 4926B
          Houston, TX 77251-1188
          (713) 853-3956
          Email: investor-relations@enron.com

          Enron Corp.
          Public Relations Dept.
          P.O. Box 1188, Suite 4712
          Houston, TX 77251-1188
          (713) 853-5670


KLABIN SA: Analysts See Default Unlikely, Solution Unclear
----------------------------------------------------------
Analysts believe that Brazilian pulp and paper maker Klabin SA is
unlikely to default, but, maintained the situation at the Company
remains difficult. The Company faces onerous financial
obligations coming due by year-end, relates Dow Jones.

Klabin is "not going to be in default because they have assets to
sell, but the situation is difficult," said Daniella Guanabara,
an analyst at Banco Pactual in Brazil.

The Company is currently in negotiations with bondholders to
extend up to two years payment of US$109 million in debt due by
yearend. Klabin has a US$50-million Eurobond due in November and
another US$59 million bond maturing in December. In a proposal
distributed to creditors last week, the Company proposed to pay
15% of the amount due on time and extending payments on the
remainder for two years.

Putting the deal together would buy Klabin some time for raising
the nearly US$540 million it may have to spend on debt coming due
over the next twelve months. Klabin only has about US$38 million
of cash but has a few assets it could bring to the auction block.
The Company plans to raise US$28 million by selling part of its
business to a joint venture partner, the Norwegian newsprint
maker Morske.

Another option is to sell its tissue-making business to another
joint venture partner, the Mexican paper producer Kimberly-Clark
de Mexico SA. Guanabara said this asset is valued at around
US$135 million.

Klabin also has a specialty mill, called Bacell, that it could
sell, but analysts are pessimistic about where the Company might
find buyers.

"It will be difficult to negotiate this one because (Bacell) is
not a profitable business," said one analyst, who asked not to be
quoted saying negative things about the Company.

Finally, the Company could sell the mill Riocell, which makes
paper used for printing and writing. This asset is worth around
US$600 million and has high appeal to local buyers, analysts say.

Banco Pactual's Guanabara pointed out that, if the exporter must
sell valuable assets such as Riocell to meet its debt deadlines,
Klabin may end up having to restrict its business to domestic
markets, where competition is tough. The sales under
consideration could take a huge bite out of the Company's $1.15
billion in fixed assets.

"I think they should sell (all above-mentioned assets) now, but
it's up to them," said Edmo Chagas, an analyst at UBS Warburg.

To see Klabin's latest financial statements:
http://bankrupt.com/misc/Klabin.pdf

CONTACT:  INDUSTRIAS KLABIN
          Ronald Seckelmann, Financial and IR Director
          Luiz Marciano Candalaft, IR Manager
          Tel: (55 11) 3225-4045
          Email: marciano@klabin.com.br



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C H I L E
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ENERSIS: Two Top Execs Tender Resignations
-----------------------------------------
Enersis SA, South America's second-largest energy company lost
another two top executives. In the middle of its US$9.2 billion
debt battle, the company lost key upper management just a day
after Deputy Chief Executive Juan Ignacio Dominguez handed in his
resignation.

Citing an Enersis spokesman, Bloomberg reports that Chief
Financial Officer Mauricio Balbontin and Luis de la Barra,
manager of human resources at Enersis, both quit, without giving
reasons for their resignations or where they will work now.

The resignations came at a time when Enersis's parent company,
Spain's Endesa SA of Spain, is planning to sell assets to raise
as much as EUR3 billion (US$2.9 billion) to help reduce some
EUR23 billion in debt.

"The Company has to improve management and strengthen the
financial situation of Enersis, which is what we're doing," said
Jose Luis Palomo, Endesa's chief financial officer.

Alberto Lopez, manager of corporate business at Enersis, left
Enersis two weeks ago and will take a post at Endesa of Spain,
the Enersis spokesman said.

The Company, on Thursday, named Mario Valcarce, former CFO of
Enersis's energy generating unit, Empresa Nacional de
Electricidad SA, to replace Dominguez. Valcarce is a former
colleague of Pablo Yrarrazaval at Empresa Nacional, who was named
president of Enersis in July. No replacement was named for
Balbontin.

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

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682

          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl


ENERSIS: Parent Considers Domestic Asset Sales
----------------------------------------------
Spanish utility Endesa SA is contemplates selling domestic assets
belonging to its Chilean subsidiaries in the near-term. In a Dow
Jones Newswires article, Endesa executive Rafael Miranda revealed
that the Spanish firm could sell the domestic assets of Chilean
electricity holding Enersis SA and its unit Empresa Nacional de
Electricidad SA (Endesa Chile) soon. Selling the units is
projected to yield some EUR600 million and, once completed, would
cut the subsidiaries' debt by almost US$1 billion.

Among the assets on the block, Estrategia reports, are mobile
telecommunications company Smartcom, real estate company
Inmobiliaria Manso de Velasco, highway operator Infraestructura
2000, and several natural gas assets in Chile, though Miranda
didn't refer to these companies specifically in Estrategia's
report.

Both Enersis and Endesa Chile have seen their share prices
plummet due to concerns stemming from worries regarding their
crisis-hit Argentinean and Brazilian operations.


SILICA NETWORKS: New Owners Assume Operating Assets
---------------------------------------------------
UK-based power transmission company National Grid announced that
it and bankrupt US carrier Williams Communications have sold the
operating assets and business of Chilean-Argentine carrier of
carriers Silica Networks to three members of the Company's
management team.

According to a report by Business News Americas, Silica's former
operations director and current CEO, Sergio Munoz, teamed up with
sales and marketing director Bernardo Flood and CFO Craig
Philipps to acquire the assets. The sale was publicly announced
in a statement late Thursday.

"This completes the sales process that included the sale of
Manquehue Net's stake in Silica earlier in the week," National
Grid stated.

National Grid controlled Silica Networks with a 50% stake, while
Chilean local exchange provider Manquehue Net and Williams
Communications had 30.1% and 19.9% shares, respectively.

The departing shareholders absorbed all of the Company's
outstanding liabilities prior to the sale, outgoing Silica CEO
and National Grid point man Stephen Burnage told Business News
Americas.

"We are leaving the operation clean," he said.

The value of the transaction as well as Silica's assets and
business operations was confidential, Burnage said. Now, Silica's
new owners are expecting the Company to reach breakeven within a
year, Munoz said. According to Munoz, the network is fully
deployed and Silica plans to make little or no capital
expenditures.

Silica owns a 4,300km fiber-optic network between Santiago and
Buenos Aires. From the Chilean border, the network passes through
the Argentine cities of Mendoza, San Luis, Cordoba, and Rosario,
before continuing south to Bahia Blanca from Buenos Aires.

"Our main focus there [in Santiago] is providing Chilean
companies with access to Argentina," he said, adding, "In
Argentina we have a full national network, touching the country's
major cities, and of course we are going to focus on all those
areas."

"We have received very good response from potential customers,
and are very optimistic our business plan will be achieved," he
said, adding that Silica has working capital for the next 12
months.

Munoz put the breakdown of the Company's revenues between
Argentina and Chile in the medium term at 60-40, respectively.

CONTACT:  MANQUEHUE NET S.A.
          Av. Condor 796, Enterprise City,
          Huechuraba Santiago Chile
          Phone: 00 562 243 8800
          Fax: 00 562 248 7292
          EMAIL: info@manquehue.netl
          Home Page: http://www.manquehue.net/
                     http://www.manquehue.cl
          Contact:
          Mr. Miller Williams, President
          Sr.Jos, Luis Rabat Vilaplana, Vice President



===============
C O L O M B I A
===============

IMPSAT COLOMBIA: Restructures $27.9M Debt; Extends Maturities
-------------------------------------------------------------
Impsat Colombia, the Colombian division of Argentina-based
corporate communications provider Impsat Fiber Networks, struck a
deal to restructure COL79 billion (US$27.9 million) in debt with
22 local banks, according to a report by local financial daily
Portafolio.

Impsat revealed the agreement allowed for four and a half years
maturity, with interest rate the same as before. According to
Impsat Colombia chairman Jaime Alberto Pelaez, the operation was
necessary because of the high proportion of short-term debt. The
debt is 82.2% peso-denominated and 17.8% dollar-denominated.

The executive expects that Impsat Colombia, the country's largest
corporate services provider, will end this year with revenues of
US$60 million. In the first half of this year, Impsat Colombia
registered revenues of US$30 million and Ebitda of US$11.3
million.

The unit's parent, Impsat Fiber, a provider of broadband
Internet, data, and voice services in Latin America, filed for
chapter 11 protection on June 11, 2002. Anthony D. Boccanfuso,
Esq., and Michael J. Canning, Esq. at Arnold & Porter represent
the Debtor in its restructuring efforts. When the Company filed
for protection from its creditors, it listed $667,189,368 in
total assets and $1,334,732,793 in total debts.

To see Financial Statements:
http://bankrupt.com/misc/Impsat.htm

CONTACT:   IMPSAT Fiber Networks, Inc.
           Home Page: http://www.impsat.com

           Hector Alonso
           Gonzalo Alende Serra
           Phone: 54.11.5170.3700

DEBTORS' COUNSEL: Anthony D. Boccanfuso, Esq.
                  Michael J. Canning, Esq.
                  Arnold & Porter
                  399 Park Avenue
                  New York, New York 10022
                  (212) 715-1315
                  Fax : (212) 715-1399


SEVEN SEAS: Hires CIBC to Advise Potential Guaduas Sales
--------------------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced Friday that the
Company has engaged CIBC World Markets Corp. to provide financial
advice in connection with a possible sale of its interest in the
Guaduas Oil Field, its production facilities, and the forty- mile
Guaduas-La Dorada pipeline which connects the field to Colombia's
existing pipeline infrastructure.

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America.

CONTACT:  SEVEN SEAS PETROLEUM INC.
          Daniel Drum, Investor Relations
          +1-713-622-8218
          Web site: http://www.sevenseaspetro.com



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

AHMSA: Creditors Seek Bankruptcy Declaration
--------------------------------------------
Creditors of Altos Hornos de Mexico (AHMSA) and the owners of the
steel maker have been in negotiations for more than three years
now since the Company obtained protection from the courts in May
1999. But, so far, there is still no viable plan for a debt-
restructuring.

Based on the lack of a viable alternative, Bloomberg reports,  
creditors, led by Bank of America Corp., Citigroup Inc.'s Banamex
and Grupo Financiero BBVA Bancomer SA, are now asking a judge to
declare AHMSA, bankrupt. The company originally defaulted on
US$1.85 billion debt in April 1999.

Ronald Dickins, a spokesman for the committee of banks
representing creditors, believes that bankruptcy would produce a
change in management, as well as help creditors reach a debt
restructuring agreement with AHMSA.

AHMSA's spokesman Francisco Orduna however said that banks have
tried the same petition several times before but it has been
rejected because the Company is still operating.

AHMSA, which is owned by the Ancira and Autrey families, has been
mired in problems after world steel prices tumbled following the
1998 Asian crisis. Since 1999, AHMSA has suspended debt payment,
and has been negotiating with lenders regarding debt
restructuring.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.ahmsa.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres./CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


EMPRESAS ICA: Selling Cabo Stake To Pay Down Debts
--------------------------------------------------
Mexico's largest construction firm, ICA, continues to sell assets
in an effort to reduce debts.Business News Americas reports that
the Company is selling of its stake in tourism development
company Cabo del Sol. According to ICA president Bernardo
Quintana, Cabo del Sol, which is founded in 1990 in Baja
California Sur state, is estimated to be worth some US$100
million.

ICA had debts calculated at MXN12.3 billion (US$1.2 billion) at
the end of the second quarter of this year. The liabilities
include US$152 million classified as short-term. Over the second
quarter, the Company sold off MXN76 million pesos worth of
assets.
      
A weakening domestic macroeconomic environment, coupled with
delays in public spending, continue to pressure ICA's
profitability and financial flexibility. Notwithstanding
management's proactive efforts to improve the Company's cost
structure and reduce leverage levels, the current environment in
Mexico and Latin America continue to negatively affect ICA's
financial performance.

Empresas ICA (ICA) is Mexico's largest engineering, procurement
and construction company in terms of revenues and assets.
Established in 1947, the company is engaged in a full range of
construction and related activities, including the construction
of infrastructure, industrial, urban and housing facilities. ICA
also participates in the development and marketing of real
estate, the construction, maintenance and operation of highways,
bridges and tunnels and in the management and operation of water
supply systems and automobile parking facilities under
concessions granted by governmental authorities.

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

CONTACTS:  EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
           Bernardo Quintana Isaac, Chairman/Pres/CEO
           Jos, L. Guerrero Alvarez, EVP Finance and CFO

           THEIR ADDRESS:
           Mineria No. 145, Colonia Escand>n
           11800 Mexico, D.F., Mexico
           Phone: +52-55-5272-9991
           Fax: +52-55-5227-5012
           URL: http://www.ica.com.mx     


HYLSAMEX: Restarts Operations at DAP Plant
------------------------------------------
Margarita Gutierrez, an investor relations manager at Hylsamex,
announced that the Mexican steel maker reopened its no.1 plant in
Monterrey, relates La Reforma newspaper. The plant will initially
operate at only 35% of its 1Mt/y capacity. Hylsamex had suspended
operations at the plant since December 2000 due to low prices,
high costs - particularly for natural gas - and sluggish local
demand.

Monterrey-based Hylsamex, a unit of conglomerate Alfa, is
currently undergoing a restructuring of some US$1.3 billion
debts.  These debts were primarily caused by low international
prices for steel in recent years.  A strong Mexican peso last
year also added to its woes by making its exports more expensive
in dollar terms and less competitive on world markets.

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

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



===========
P A N A M A
===========

BANISTMO: Fitch Revises Outlook Downward To Negative
----------------------------------------------------
Fitch Ratings has changed the Rating Outlook on the long-term
debt ratings for Panama's Primer Banco del Istmo (Banistmo) to
Negative from Stable. At the same time, Banistmo's Long and
Short-term, Individual and Support ratings of 'BB+/B, 'C/D' and
'5', respectively, have been affirmed. This action is the result
of an ongoing negative trend in the bank's financial profile in
the context of a slow growth environment and continued
acquisition activity.

"While we believe that the bank's expansion strategy will enhance
its franchise, providing it with economy of scale benefits, as
well as greater revenue and risk diversification, it has
nevertheless, put further stress on its financial profile, which,
similar to the system, has been negatively impacted by the
ongoing economic downturn," said Fitch Ratings analysts.

Fitch remains concerned about pressures the acquisition process
of the last two years and the sluggish local economy have put on
capital, particularly with the decline in Tier 1 capital, which
led to a downgrade of the bank's ratings in December 2000. Given
unfavorable equity markets, the bank has been issuing preferred
shares in order to offset capital pressures, which, coupled with
modest earnings retention, has increased the Total capital ratio
to 11.1% at end-June 2002, not far from the bank's set target of
12% for the end of this year.

Nevertheless, Tier one capital, which stood at 6.6% at end-1998,
has continued along the downward trend that began before the PBA
merger, when it stood at 12% (end-1998). In addition to the low
capital levels, the bank has limited free capital as goodwill,
fixed assets, repossessed assets, permanent equity investments
and deferred tax credits accounted for 68% of total equity at
end-June 2002. Given the current economic climate, management has
established new capital targets, with an increased emphasis on
Tier 1 capital growth. They forecast gradually increasing the
Total and Tier 1 capital ratios to 15% and 11%, respectively, by
end-2005.

Profitability, while adequate, fell below historical levels in
2001 due primarily to non-recurring acquisition related expenses.
In the first half of this year the bank's profitability levels
have moved closer to historical levels, however, this was
primarily attributable to a non-recurring gain of USD 13.9 mln
associated with the Bancolat acquisition. Operating
profitability, on the other hand, remained weak as margin driven
growth in net interest revenue was offset by lower other
operating revenues, much of which is credit driven fees and thus
vulnerable to the economic cycle. Similar to other banks in the
system, Banistmo has an asset sensitive balance sheet and its
margin has benefited from the repricing of its liabilities, a
trend which is expected to continue in the near term.

Going forward, the ratings service believes that operating
profitability will improve due to wider margins and economy of
scale cost savings, which should help ease pressure from
provisions and goodwill amortization. Cost savings will be
derived from the rationalization of its branch network, which has
been reduced to 35 from 64 following the merger and is not
expected to increase following the Bancolat acquisition.

Asset quality has also come under pressure in recent periods and
at end-June 2002, impaired loans, comprised of past due and non
accrual loans, rose to 4.8% of the total portfolio, up from under
1.8% at end-2000. This is largely due to the incorporation of
acquired portfolios, which historically had higher past due loan
figures, the most recent of which, Bancolat, contributed past due
loans of USD 36 mln at end-June 2002, accounting for 70% of the
rise in impaired loans in the first half. At the same time, loan
loss reserve coverage has declined substantially despite an
increase in provisioning due to the increase in impaired loans.

The bank's acquisition-based strategy, both domestically and
regionally, continued throughout last year, strengthening its
position as the largest bank in Panama and the region. In the
third quarter of 2001, Banistmo purchased assets and liabilities
of USD 112 mln from ABN Amro's Panamanian operations.
Domestically, this was followed by the purchase of Banco
Latinoamerica (BANCOLAT), a medium sized bank with a focus on the
middle market, which reported 432 mln in assets at end-2001
(roughly 10.5% of Banistmo's total assets). The bank also
continued with its regional expansion through the purchase of a
49% stake in Grupo el Ahorro Hondureno, the largest financial
services company in Honduras. While this gave the bank effective
control of the bank, since ownership is below 50%, the purchase
is being carried on the group's books as an equity investment,
reducing the transparency of the bank's financial statements.

In the upcoming year, Fitch projects that it will become clear
whether the bank will be able to reap many of the expected
benefits from its expansion strategy. While analysts still
believe Banistmo is comparable to other banks in its rating
category, further rating action may be taken if a clear reversal
in the negative trend in the bank's financial profile is not
evident over the next year.

Fitch will continue to pay particular attention to the bank's
progress in addressing capital issues as well as its ability to
reduce asset quality problems to levels more in line with its
peer group.

CONTACT:  FITCH RATINGS
          Ricardo Chaves, 1-212-908-0606
          Linda Hammel, 1-212-908-0303
          Peter Shaw, 1-212-908-0553
          James Jockle, 1-212-908-0547 (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.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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