TCRLA_Public/021008.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 8, 2002, Vol. 3, Issue 199

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Conflict Continues With Caribbean Star


A R G E N T I N A

PEREZ COMPANC: Shares Down Ahead Of Petrobras Buy


B E R M U D A

TYCO INTERNATIONAL: Investors Propose Accountability Measures
TYCO INTERNATIONAL: Ex-CFO Offers Bail Bond Anew


B R A Z I L

MRS LOGISTICA: Increases Cargo Transports
NET SERVICOS: Denies Reports Suggesting Creditor Takeover
VARIG: Must Agree To Restart Talks Over Firings To Avert Strike


C H I L E

ENERSIS: Selling Assets, Shares To Deal With Economic Downturn
ENERSIS: Analysts Predict Extensive Buyer Search Pending


C O L O M B I A

COLOMBIAN GOVERNEMT: Growing Debts Create Difficult Future


E C U A D O R

GOVERNMENT: Takes On US$114 Million Power Sector Bail Out


M E X I C O

AHMSA: Starts Paying Debts Owed To Suppliers
EMPRESA ICA: Considers Bid For El Cajon Hydro Project
GRUPO MEXICO: SPCC Sale Not In Immediate Plans


P E R U

ESSALUD: Top Exec Slams Rumors Indicating Financial Strain


T R I N I D A D   &   T O B A G O

BWIA: Staff Agree To Compromise In Order To Achieve Goal


     - - - - - - - - - -


=================================
A N T I G U A   &   B A R B U D A
=================================

LIAT: Conflict Continues With Caribbean Star
--------------------------------------------
Antigua-based airline LIAT has not worked out an alliance with
fellow airline Caribbean Star, reports The Antigua Sun. LIAT's
Director of Corporate Development, David Stuart said that his
airline is happy to work with any other airline, but the decision
lies with the "Star" now.

Stuart also admits that both LIAT and the Caribbean Star are
losing business, despite research results saying LIAT is the
preferred carrier. He suggested that "Star" concentrate on the
South American market.

"We are the people's airline and maybe the Star should open
routes to Brazil, Belem and Cuba and some other places and we can
work together like that. There is need for rationalization, we
shouldn't have two dash 8 carriers flying around out of Antigua
and neither one making a profit," Stuart said.

"We at LIAT want to make it categorically clear that we are happy
to work with any other airlines and we have demonstrated this by
working with BWIA, WinAir and Air Caribes and I think the ball is
now in the court of the Star," he added.

However, Caribbean Star's Director of Marketing, Sandra Scotland
refuted Stuart's statements, saying that the Caribbean Star has
asked LIAT for some sort of alliance, but has received no
response.

Scotland also corrected Stuart's claims on market penetration,
saying that the Caribbean Star controls 50 percent of the market,
and is leading in the region, despite the fact that it still has
a long way to go in the international market.

"I don't know what David Stuart is referring to or where he gets
his information about LIAT being the number one carrier, for our
research tells us that amongst Caribbean people Caribbean Star
actually takes over 50 per cent market share in each destination
we fly," Scotland said.

CONTACTS: LIAT Corporate Headquarters
          V.C. Bird International Airport,
          P.O. Box 819,
          St. John's, Antigua West Indies
          Tel. 1 (268) 480-5600/1/2/3/4/5/6
          Fax: 1 (268) 480-5625
          Homepage: http://www.liatairline.com/
          Contact: Garry Cullen - Chief Executive Officer
                   David Stuart - Vice President of Marketing
      
          Caribbean Star Airlines
          Coolidge Industrial Estate
          P.O. Box 1628W,
          Airport Road,
          St. John's, Antigua West Indies
          Tel. 1 (268) 480-2500
          Homepage: http://www.flycaribbeanstar.com/
          Contact: Paul Moreira - Chief Executive Officer
                   Sandra Scotland - Director of Marketing



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

PEREZ COMPANC: Shares Down Ahead Of Petrobras Buy
-------------------------------------------------
Investors' prediction that Perez Companc would be bought by
Brazil's federal energy giant Petroleo Brasiliero SA this week
sent the Argentine company's shares down Friday after climbing
the previous day to their highest level in more than two months.

According to a Bloomberg report, Perez Companc American
depositary receipts on Friday fell 2.3% to US$5.03, reversing a
5.1% increase Thursday. On the Buenos Aires Stock Exchange, the
Company's shares fell 2.4% to ARS2.01 after gaining 6.7%
Thursday.

"Investors are selling ahead of the weekend, but it's pretty much
completed its restructuring now so we should see it recover its
value next week," said Rafael Ber, an analyst at Argentine
Research in Buenos Aires. "Investors like that it will switch
into Petrobras hands, but right now they are taking profits."

Petrobras agreed to purchase a controlling 58.6% stake in Perez
Companc for about US$1.1 billion. The Argentine company, which
controls energy company Pecom Energia, has debts of about US$2
billion.

Perez said it would complete the restructuring of $950 million in
bank debt Friday. Pecom will issue four series of bonds, which
will likely be issued to bank creditors in exchange for the loans
as part of Pecom's debt restructuring negotiations, said Eugenia
Benitez, an analyst at Allaria Ledesma & Cia brokerage in Buenos
Aires

Pecom's debt renegotiation, which included a US$845.2-million
debt swap in August, is crucial to finalizing the deal between
Perez Companc and Petrobras.

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





=============
B E R M U D A
=============

TYCO INTERNATIONAL: Investors Propose Accountability Measures
-------------------------------------------------------------
At least three institutional investors have filed shareholder
proposals with Tyco International Ltd. reports Knight Ridder
Business News. The proposals, aimed at strengthening Tyco's
financial accountability, will be presented at the Company's
annual meeting in February.

The investors and their proposals are:

-- The Northern California Pipe Trades Pension Trust Fund, which
holds 140,000 shares, proposes that Tyco reincorporate in the
United States.

-- The IBEW Pension Benefit Fund, a national pension plan for the
International Brotherhood of Electrical Workers based in
Washington holds 1.2 million shares and wants to separate the
Company's auditors from other consulting work.

-- The Amalgamated Bank of New York, a mutual fund stockholder
with 715,000 shares. It is seeking to separate the chairman and
chief executive posts, with an independent director filing the
chairman's job.

Altogether, the three shareholders own about 1% of Tyco.

The Company has received proposals for the auditor and chairman
in past meetings. An attempt to separate the Company's auditing
and consulting work was voted down last year. However, this might
be given more attention this year, after former top executives
allegedly looted the Company's funds.

Former CEO Dennis Kozlowski, ex-CFO Mark Swartz and former
general counsel Mark Belnick are accused of stealing $170 million
from the Company and gaining $430 million from stock sales made
improperly through Tyco subsidiaries.

The Company's auditors, PriceWaterhouseCoopers are also under
investigation.

The third proposal, which calls for Tyco to reincorporate in the
United States, is a new one. Tyco has been based in Bermuda since
1997.

Proponents believe this is important, as the United States have
stricter rules on company accountability.

CONTACT:  TYCO INTERNATIONAL, LTD.
          The Zurich Center, Second Floor
          Pembroke HM 08, Bermuda
          Phone: (441) 292-8674


TYCO INTERNATIONAL: Ex-CFO Offers Bail Bond Anew
------------------------------------------------
Mark Swartz, former chief finance officer of Tyco International
Ltd. is offering to use US$5 million he received from a deferred
compensation plan to secure his US$50 million bail bond,
according to the Associated Press.

Swartz's initial offer of US$5 million worth of Tyco shares for
bail bond was unsuccessful. New York State Supreme Court Judge
Michael Obus rejected his offer, saying the stock was possibly
the reslult of funds Swartz allegedly swindled from the Company.

Swartz, along with Tyco's former CEO Dennis Kozlowski, is facing
charges of grand larceny and enterprise corruption.  Both pleaded
not guilty to the charges.

Kozlowski's ex-wife posted US$10 million cash for his US$100 bail
bond. It was accepted as the money was said to be part of their
divorce settlement.

Both Swartz and Kozlowski had trouble posting bail as all their
assets were frozen by court. Offers from relatives and others
have been rejected as those could be considered proceeds of the
alleged crime.

Swartz has the option to petition the judge who issued the
restraining order to unfreeze his assets. However, there are no
guarantees that such an attempt would succeed.

Prosecutor John Moscow however was unimpressed with the new
offering from Swartz.  

"If that's what they post" as collateral, "we'll still have
questions to ask," he said.

CONTACT:  TYCO INTERNATIONAL, LTD.
          The Zurich Center, Second Floor
          Pembroke HM 08, Bermuda
          Phone: (441) 292-8674



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


MRS LOGISTICA: Increases Cargo Transports
-----------------------------------------
Brazilian railroad concessionaire MRS Logistica reported a new
monthly record in cargo transports. In a Business News Americas
report, company president Julio Fontana Neto revealed that MRS
transported a total of 6.8 Mt in September.

"This year we should finish with a total of 74Mt moved, an
increase of 9% compared to 2001. The numbers for next year have
not been finalized, but we predict somewhere between 84 and 85Mt
transported," the executive said.

Growing demand stems from an export push and a small boom in
construction, he said. Growth is forcing MRS, holder of the
country's southeast railroad network, to invest in renewing its
fleet.

"We estimate that we need around 300 new wagons and 15 new
locomotives for the first quarter of next year," Fontana said.

TCR-LA earlier reported that MRS's net losses increased in the
second quarter three fold compared to the same period last year.
Negative numbers went from BRL46 million (US$14.9 million) in
2Q01 to BRL138 million (US$45 million) in 2Q02. The Company's net
revenue, on the other hand, grew 20% to BRL190 million (US$61mn)
for the same periods.

However, ratings agency S&P continues to warn over concerns about
the Company's debt to capital ratio. S&P suggests that
shareholders take care of the Company's dollar-denominated
liabilities as this could put pressure on MRS in the medium term.

MRS's shareholders include steel maker CSN and Usiminas, as well
as mining companies MBR and Ferteco.

CONTACT:  MRS LOGISTICA S.A.
          Praia de Botafogo, 228/1201-E
          Rio de Janeiro - RJ, 22359-900
          Brazil
          Phone: 55-21-2559-4600
          Fax: 55-21-2552-2635
          E-mail: daf@mrs.com.br
          Home Page: http://www.mrs.com.br
          Contacts:
          Julio Cesar Pinto, Chief Financial Officer
          Phone: (21) 2559 4600
                     (32) 3239 3600
                     (11) 3648 8401
          Fax:     (21) 2552 2635
                     (32) 3239 3609
                     (11) 3645 2743
          E-mail: jfn@mrs.com.br

        
NET SERVICOS: Denies Reports Suggesting Creditor Takeover
---------------------------------------------------------
Net Servicos de Comunicacao SA (formerly Globo Cabo), says its
battle plan for US$651 million in debt does not include asking 21
creditors to convert to their liablities to equity this Friday.
Dow Jones Newswires reports the announcement was made by the
Brazilian cable television provider in reaction to an article
released by Rio de Janeiro daily O Dia suggesting such a plan was
under way, which could lead to creditors assuming control of the
Company.

Net Servicos recently completed a recapitalization effort.
However, recent weakness in Brazil's currency, the real, has
again exacerbated the Company's debt difficulties.

CONTACT:  GLOBO COMUNICACOES E PARTICIPACOES - GLOBOPAR
          Rua Afranio de Melo Franco
          135/4  andar- Leblon
          Rio de Janeiro - RJ
          CEP: 22430-060
          Phone: (21) 240.2000
          Fax: (21) 259.6586
          Home Page: www.globopar.com.br
          Contacts:
          Mr. Roberto Marinho, President - Board of Directors
          Mauro Molchansky, Executive Director
          Marcos Carneiro, Director - Corporate Relations


VARIG: Must Agree To Restart Talks Over Firings To Avert Strike
---------------------------------------------------------------
Varig's pilots association will inform Latin America's biggest
airline Monday of a two week deadline to agree to restart talks.
The discussions will center on the dismissal of 60 pilots and a
decision to place another 60 on unpaid leave, reports Bloomberg.

Otherwise, according Alexandre Moraes, the legal adviser of the
1,300-member pilots' association, the Company will have to deal
with a weeklong strike beginning Oct. 19. The union plans to meet
on Oct. 18 to decide if pilots will carry out the threatened work
stoppage.

"Seventy-five percent of the roughly 200 people at the meeting
today [Friday] opted to strike," Moraes said. Varig has 1,400
pilots, 92% of whom are members of the association.

A strike at Varig would cripple flights by Brazil's biggest
carrier and add to losses at the airline, which hasn't turned a
profit since 1997. Varig is under pressure from creditors to
reduce costs and raise cash to lower about US$900 million in
debt.

Varig is owned by its employees through Fundacao Ruben Berta,
which controls 87% of the airline's voting shares. Rubem Berta
contracted KPMG to assist in the restructuring of the cash-
strapped airline.

Critics believe that the nonprofit Rubem Berta foundation has
hampered management at the airline. A pilots' union proposal to
restructure the Company would reduce the stake of the foundation
to 10% and remove company executives from the foundation's board.

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page: www.varig.com.br/english/
          Contacts:
          Dorival Ramos Schultz, EVP Finance and CFO
          E-mail: dorival.schultz@varig.com.br

          Investor Relations:
          Av. Almirante Silvio de Noronha,
          n  365-Bloco "B" - s/458 / Centro
          Rio de Janeiro, Brazil

          KPMG Brazil
          Belo Horizonte
          Rua Paraba, 1122
          13th Floor
          30130-918 Belo Horizonte MG
          Telephone 55 (31) 3261 5444
          Telefax 55 (31) 3261 5151
                   or
          Brasilia
          SBS Quadra 2 BL A N 1
          Edificio Casa de Sao Paulo SL 502
          70078-900 Braslia - DF
          Telephone 55 (61) 223 2024
          Telefax 55 (61) 224 0473



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

ENERSIS: Selling Assets, Shares To Deal With Economic Downturn
--------------------------------------------------------------
Enersis SA, South America's second-largest energy company, is
embarking on a massive financial restructuring in order to deal
with the region's current economic situation. The company's
troubles include a devaluation and recession in Argentina and
falling or weak demand in many of the other countries where it
operates.

The Company revealed plans to sell non-essential businesses and
as much as US$1.5 billion in shares to reduce debt. The plan
should allow Enersis to reduce its US$9.3 billion in debt by as
much as US$2.2 billion, the Company said in a letter to Chilean
regulators. The plan also allows Enersis's parent company,
Spain's Endesa SA, to convert loans to its Chilean unit into
stock, an Enersis spokesman said.

Analysts see the Company's strategy as a pre-emptive strike
against further downgrades on its debt structure, some of which
may be called in by banks if the group's operating and financial
situation deteriorates further.

David Hurd, head of Latin American utilities research at Deutsche
Bank in the US, said a downgrade by Standard & Poor's, the credit
rating agency, could trigger so-called "cross-default" clauses on
some of the group's loans.

"This is basically a balance-sheet exercise to keep the banks
from calling in about US$2 billion in loans," he said.

Enersis is struggling under the weight of its debt, which is 1.2
times consolidated equity, including minority interests.

Shareholders will vote on the plan in the first quarter next
year, Enersis told regulators in the statement.

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: Analysts Predict Extensive Buyer Search Pending
--------------------------------------------------------
Enersis, which is planning to carry out an asset sale or to issue
fresh equity in order to reduce debt, may find it hard to find
buyers and persuade shareholders, including Chilean pension
funds, to buy additional stock following a 57% drop in the share
price this year, Bloomberg reports, citing analysts.

"There's no doubt that they need to reduce their debt," said
David Hurd, an analyst at Deutsche Bank Securities Inc. in
Baltimore. "But they're doing it by selling assets at a time when
there aren't buyers."

Enersis said it plans to sell its Chilean power distributor Cia.
Electrica del Rio Maipo SA and real estate unit Manso de Velasco
Ltd.

The Company's energy generating unit, Empresa Nacional de
Electricidad SA, said it plans to raise between US$600 million to
US$700 million selling assets, including a Chilean generating
company, transmission lines, as well as a roadway unit valued at
US$50 million.

Sale of the roadway unit would allow Empresa Nacional to shed
US$200 million of debt. The Company also plans to refinance debt
owed to it by its gas pipeline, the Company said in a statement
to regulators.



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

COLOMBIAN GOVERNEMT: Growing Debts Create Difficult Future
----------------------------------------------------------
The Colombian government revealed Thursday plans to issue US$1
billion in bonds on international markets in 2003. The issuance,
according to Reuters, will be backed by an Inter-American
Development Bank guarantee. In addition, Colombia will also issue
US$4.6 billion in bonds at home, including both roll-over of old
paper and new paper, and expects to receive disbursements
totaling US$1.9 billion from multilateral lending agencies next
year.

Colombia, with a US$90 billion economy, is facing increasing
difficulty in tapping international debt markets due to election
jitters in Brazil and concerns over the Andean nation's rising
debt load and sluggish economic growth - forecast at between 1.5%
and 2.0% in 2002.

According to the Central Bank, Colombia's total foreign debt from
both the public and private sectors reached US$38.3 billion in
June, up 0.32% against the US$38.2 billion recorded in June 2001.
Total foreign debt represented 47.3% of gross domestic product,
compared with 46.3% of GDP in June 2001. Public sector foreign
debt rose 0.68% to US$22.3 billion in June 2002, compared with
US$22.2 billion by the same month last year.

The Central Bank revealed that the biggest foreign debtor in June
was the central government with US$17.4 billion, including
US$10.6 billion in sovereign bonds, US$3.1 billion in credit from
the Inter-American Development Bank and US$1.3 billion from the
World Bank.

Municipal governments and municipal enterprises owed US$2.2
billion in foreign debt, while state-run firms, like Telecom and
Ecopetrol, had US$1.9 billion in foreign debt.

Total short-term foreign debt rose 2.3% to US$4.5 billion by June
against the same month last year. The vast majority, US$18.2
billion, in public debt was held in dollars, followed by US$1.9
billion in euros and US$1.2 billion in yen.

In August, Fitch Ratings cut its ratings outlook for Colombia to
negative from stable, saying the new government of President
Alvaro Uribe faces deteriorating financing conditions and rising
government debt levels.



=============
E C U A D O R
=============

GOVERNMENT: Takes On US$114 Million Power Sector Bail Out
---------------------------------------------------------
The government of Ecuador will shoulder US$114 million debt from
rates deficits held by power distributors, said an economy
ministry spokesperson, as quoted by Business New Americas Friday.
The debt is caused by distributors forced to sell energy at a
lower prices than which they can purchase it.

Solidarity Fund (FS) CEO Alejandro Ribanedeira said that the
US$114 million corresponds to the rates deficit from May to
December this year. The government expects the pay-off by the end
of October.

Reimbursement will not be in cash, but through accounting
procedures, as the distributors in question are government-owned.
The FS is majority shareholder in many of the generators and
distributors in the country.



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

AHMSA: Starts Paying Debts Owed To Suppliers
--------------------------------------------
Ailing Mexican steelmaker Altos Hornos de Mexico (AHMSA), which
has been avoiding payments for more than three years, began
paying the US$40 million it owes to suppliers, reports Mexico
City daily el Economista.

The decision to make the payments comes after the Company
experienced improvements in revenue. However, even after the
payment to suppliers, the Company still has more than US$1.8
billion in debt owed to bank creditors.

According to Roberto Elizondo, a representative of AHMSA's
suppliers, the banks' demand that the Company declare bankruptcy
was legitimate and protected the banks' interests, but he added
that the suppliers only hoped that the Company would not close,
"whatever the courts' verdict."

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. With two plants in Monclova, in northern
Mexico's Coahuila state, the Company describes itself as the
country's largest steelworks.

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


EMPRESA ICA: Considers Bid For El Cajon Hydro Project
-----------------------------------------------------
Empresas ICA, a Mexican engineering and construction group is
contemplating of joining the race for the construction of CFE's
US$1.04-billion, 750MW El Cajon hydro project in Nayarit state,
Business News Americas indicates.

ICA has purchased bidding rules from state power company CFE an
executive said, adding that ICA has not decided if it will bid on
its own or in partnership.

Other buyers of bidding rules are Sweden's Skanska, Italy's
Impregilio, Spain's Dragados, Brazil's Camargo Correa,
Argentina's Techint, and Mexico's La Nacional.

Bids are due December 16, and economic and technical offers will
be opened 9 January 2003. A final decision is expected January 16
and contract signing is planned for January 31.

Work is scheduled to begin by 6 February 2003, and the scheduled
completion date is 31 August 2007.

ICA is Mexico's largest engineering, procurement and construction
company in terms of revenues and assets. However, 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.

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.
     
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    


GRUPO MEXICO: SPCC Sale Not In Immediate Plans
----------------------------------------------
Ailing Mexican copper producer Grupo Mexico denied reports
indicating plans to sell its Peruvian subsidiary, Southern Peru
Copper Corp, relates Reuters. Recently, Goldman Sachs released a
report raising its rating on SPCC to "Trading Buy" from "Market
Perform" on the basis of "a probable near term change of control
that could re-rate its valuation multiples," among other reasons.

In response, Grupo Mexico, the world's third-largest copper
miner, said that the 54.3% stake in SPCC would stay in company
hands and that the only change it was contemplating with regards
to the stake was to transfer it from one of its subsidiaries,
U.S. unit Asarco Inc., to another, the Americas Mining Corp.
holding company.

"Grupo Mexico's business plans do not contemplate any change of
control in SPCC nor any modification in its ultimate beneficial
ownership of SPCC," the Company said.

In August, the U.S. Department of Justice filed a temporary
restraining order against Asarco to block it from moving the
stake in SPCC to Americas Mining. The move came as U.S.
authorities tagged Asarco as a potentially responsible party in a
U.S. federal pollution probe that could lead to an expensive
clean-up in addition to other environmental obligations, also in
the United States.

U.S. regulators believe that Asarco, without its valuable stake
in SPCC, won't have enough funds to pay potential costs incurred
in a clean-up if the company was ruled to be at fault.

"Currently, Asarco is negotiating with the U.S. department of
Justice a mutually acceptable settlement for this transaction in
order to end its legal challenge to the SPCC intracompany
transfer," Grupo Mexico said.

CONTACTS:  GRUPO MEXICO S.A. DE C.V
           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Mexico
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           http://www.gmexico.com
           Contacts:
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

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

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



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

ESSALUD: Top Exec Slams Rumors Indicating Financial Strain
----------------------------------------------------------
Essalud is not close to bankruptcy, nor even close to shutting
any of its hospitals, Cesar Guttierez, president of the medical
services company, said in response to rumors suggesting the
contrary.

According to a report by El Comercio, rumors have since surfaced
that Essalud is about to collapse because of its recently
released financial figures. Essalud is reportedly trimming costs
in order to cut its losses further. Following an 18-month period
of reduction in its stocks of medications, the Company recently
spent PEN200 million in restocking its supplies.

The financial figures also revealed that Essalud is wrestling
with about PEN1.4 billion in debts. The Company's financial
projections for the year also predicted a deficit of PEN300
million by December, though this has been reduced by 62%.

But Guttierez asserted that Essalud maintains the amount of
around PEN1.3 billion in the bank, including a contingency
reserve of PEN800 million, which has not been touched.



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Staff Agree To Compromise In Order To Achieve Goal
--------------------------------------------------------
Outgoing BWIA Area Manager Dawn Murray revealed that all the
airline's staff, including those in Guyana, have accepted the
Company's proposal, which is aimed at saving US$1 million a
month, even if it means "significant sacrifices in their
conditions of service," relates The Stabroek News.

According to Murray, apart from the directors and executives,
including the Chief Executive Officer Conrad Aleong, who have
agreed to salary cuts, all other staff have agreed to concessions
such as reduced annual leave, reduced sick leave, and cost
utilization such as doing more than one job within the airline.
Airline crews will also forego certain concessions when
overnighting at destinations also.

Murray noted that Aleong and Chairman Lawrence Duprey have set
the end of this month as the target date to reach final agreement
with all the staff, which has largely been achieved, along with
the first phase of the new strategic plan for the way forward.

The first phase of the strategic plan, Murray revealed, includes
the expansion of the BWIA network to form an alliance with LIAT
to thoroughly connect the Caribbean including Suriname. BWIA has
always worked towards a single regional carrier, Murray added.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           E-mail: mailto:mail@bwee.com
           Home Page: http://www.bwee.com/
           Contacts:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)



               ***********


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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