TCRLA_Public/021016.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

           Wednesday, October 16, 2002, Vol. 3, Issue 205



BANCO SUDAMERIS: Parent Reaches Purchase Deal With Patagonia
FLEETBOSTON FINANCIAL: Class Action Claims LatAm Discrepencies
IMAGEN SATELITAL: Nasdaq Threatens Delisting; Claxson Appeals
STEWART ENTERPRISES: Argentine Operations' Sale Finalized
*IMF Calls For Increase In Argentine Utility Rates


GLOBAL CROSSING: Ex-CEO Seeks Back Pay, Housing Reimbursement
GLOBAL CROSSING: Ongoing Probe Unveils More Irregularities
TYCO INTERNATIONAL: More Auditors to Examine Books
TYCO INTERNATIONAL: Plans Buffalo, N.Y. Plant Closure
TYCO INTERNATIONAL: Names Richardson Electronics as Distributor


CELESC: Meeting Financial Obligations Ahead Of Schedule
CELESC: Board Approves Continued Talks With Petrobras
CELESC: Strikes Agreement With Aneel To Delay Spin Off
CSN: Brazil's Economic Woes Complicate Merger With Corus
*Brazilian President Predicts Inflation Surge Over Default


MINERA PUDAHUEL: Applies For Protection From Creditors


BANORO: Risky Practices Prompt Special Watch List Status


CYDSA: Delay In Economic Recovery Leads to Payment Defaults
GRUPO BITAL: HSBC May Obtain Purchase Approval by November

T R I N I D A D   &   T O B A G O

BWIA: Union Head Urges Immediate Government Intervention


BANCO COMERCIAL: Additional Potential Acquirer Surfaces

     - - - - - - - - - -


BANCO SUDAMERIS: Parent Reaches Purchase Deal With Patagonia
Italy's largest financial group IntesaBci agreed to terms with
Argentine provincial bank Banco Patagonia over the sale of its
local subsidiary Banco Sudameris, reports Argentine news services According to the negotiations, IntesaBci will inject
an additional US$100 million into Sudameris to capitalize the
bank and will retain minority ownership.

With the acquisition of Sudameris, Patagonia, one of the banks
that has suffered least from Argentina's financial meltdown, will
add ARS2 billion (US$538 million) in assets to its more modest
asset base of ARS289 million. The bank will also increase its
branch-network from 32 to 129 branches and boosting its payroll
from 500 employees to 1,800.

IntesaBci is selling units in Argentina and Brazil, as well as
shedding as many as 8,000 jobs worldwide, in a bid to return to
profitability after its 1999 purchase of Banca Comerciale
Italiana SpA and an increase in bad loans. IntesaBci joins
France's Credit Agricole and other banks limiting losses by
walking away from their Argentine businesses following the
government's default last year on US$95 billion of bonds and
devaluation of the currency in January.

CONTACT: IntesaBci SpA
         Piazza Paolo Ferrari 10
         20121 Milano
         Tel  +39 02 88 441
         Fax  +39 02 8844 3638
         Contact: Corrado Passera - Chief Executive Officer
                  Giampio Bracchi - Vice Chairman
                  Gianfranco Gutty - Vice Chairman

FLEETBOSTON FINANCIAL: Class Action Claims LatAm Discrepencies
The law firm of Schiffrin & Barroway, LLP announced pending class
action charges against FleetBoston Financial Corporation for
misleading investors about its business and financial condition.

The complaint was filed in the U.S. District Court for the
District Court of New Jersey. Plaintiff seeks damages for
violations of the federal securities laws on behalf of all
investors who purchased FleetBoston Financial Corporation
securities in connection with the merger between Summit and
FleetBoston which was completed on or about March 1, 2001 (the
"Class Period").

The complaint alleges that the Massachusetts-based FleetBoston
Financial Corporation filed a Registration Statement with the
Securities and Exchange Commission on January 25, 2001 and the
Joint Proxy Statement and Prospectus included within the
Registration Statement (collectively, the "Merger
Proxy/Prospectus"), incorporated by reference FleetBoston's Form
10-K for its year ending December 31, 1999, and its Form 10-Qs
for the three months ending March 31, 2000, June 30, 2000, and
September 30, 2000 ("Incorporated Filings"). The Complaint
alleges that the Incorporated Filings contained falsely positive
and misleading information about FleetBoston's success in Latin
American markets, in particular Argentina, and that the
Incorporated Filings contained false financial information
regarding FleetBoston's earnings stemming from its Argentinian
operations and its reserves for credit losses related to loans in
Argentina. This information was material to Summit shareholders
considering how to vote on the Merger, including whether the
Exchange Ratio accurately reflected the value of FleetBoston
common stock. Starting in January 2002 and continuing into 2002,
after the Merger was complete and Summit shareholders had already
tendered their shares, FleetBoston shocked its investors by
taking charges for credit losses on loans in Argentina amounting
to approximately $2.3 billion.

Defendants are the officers and/or directors of the FleetBoston
who signed the Registration Statement. As a result of defendants'
false statements, misrepresentations, and omissions, the price of
FleetBoston securities was artificially inflated at the time of
the Merger. FleetBoston shares reached a closing price of $41.00
per share on March 1, 2001, the closing date of the Merger.

If you purchased FleetBoston Financial Corporation securities in
connection with the merger between Summit and FleetBoston which
was completed on or about March 1, 2001, you may be a member of
the class and have until November 19, 2002 to move the court to
become a lead plaintiff. In order to serve as lead plaintiff,
however, you must meet certain legal requirements. To be a member
of the class, however, you do not need to take any action at this
time. Should you decide to seek appointment as a lead plaintiff,
you may retain Schiffrin & Barroway, or retain counsel of your

          Marc A. Topaz, Esq.
          Stuart L. Berman, Esq.
          Toll Free: 888-299-7706
          Tel.: 610-822-2221
          Fax Number: 610-822-0002

IMAGEN SATELITAL: Nasdaq Threatens Delisting; Claxson Appeals
Claxson Interactive Group Inc. (Nasdaq: XSON) (the "Company")
announced Monday that on October 9, 2002, it received a letter
from the Nasdaq Listing Qualifications Department indicating that
the Company is subject to delisting because of its failure to
comply with Marketplace Rule 4320(e)(2)(B), which requires a
minimum of (i) U.S.$2,500,000 stockholders' equity or (ii) a
market capitalization of U.S.$35,000,000 or (iii) net income of
U.S.$500,000, unless the Company requests a hearing prior to the
opening of business on October 15, 2002.

The Company has requested an oral hearing before the Nasdaq
Listing Qualifications Panel to review the determination reached
by the Nasdaq Listing Qualifications Department.  The hearing is
expected to be scheduled within 45 days of the filing of the
hearing request.  Under applicable rules, the hearing request
will stay the delisting of the Company's securities, pending a
decision by the Nasdaq Panel.  The Company intends to present a
plan to the Nasdaq Panel for achieving and sustaining compliance
with Marketplace Rule 4320(e)(2)(B), but there can be no
assurance the Nasdaq Panel will grant the Company's request for
continued listing.  If delisted, the Company would attempt to
have its Class A common stock traded in the over-the-counter
market via the Electronic Bulletin Board.

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

CONTACT:  Claxson Interactive Group, Inc.
          Press: Alfredo Richard, SVP, Communications

          Investors: Jose Antonio Ituarte, Chief Financial
          Web site:

STEWART ENTERPRISES: Argentine Operations' Sale Finalized
Stewart Enterprises, Inc. (Nasdaq NMS:STEI) announced Monday that
it has consumated the sale of its operations in Argentina. The
sale of operations in Argentina marks the completion of the
Company's foreign business divestitures. The total proceeds from
the sale of foreign operations will be approximately $245
million, including income tax benefits. The Company has received
about $203 million of the proceeds and expects to realize the
majority of the remaining proceeds of approximately $42 million,
primarily income tax benefits, during 2003. The Company plans to
use these tax benefits coupled with approximately $15 million of
its free cash flow to reduce its debt balance to $500 million.

William E. Rowe, President and Chief Executive Officer, stated,
"We are delighted to have successfully achieved this milestone at
the top end of the range that we previously estimated of $200
million to $250 million in total proceeds. We are now turning our
full attention to growth initiatives, including acquisitions, all
of which we plan to fund principally by deploying free cash

Mr. Rowe continued, "As we return to growth, our commitment
remains the same - to lead this industry by maximizing
shareholder value through solid operating performance, strong
cash flow and sound capitalization, to provide our employees with
competitive compensation and benefits, a quality work environment
and opportunity for advancement, and to provide each family we
serve with excellent quality, value and service. This commitment
will continue to drive our investment decisions as we analyze all
opportunities to deploy our free cash flow to grow the Company
and build shareholder value."

Founded in 1910, Stewart Enterprises is the third largest
provider of products and services in the death care industry in
the United States, currently owning and operating 309 funeral
homes and 150 cemeteries.

          William E. Rowe, 504/837-5880

*IMF Calls For Increase In Argentine Utility Rates
Argentina's Economy Ministry has opened a round of public
hearings over rate adjustments, reports Business News Americas.
The change in rates, scheduled to take effect in 45 days, was one
of the International Monetary Fund's demands.

Argentina has US$935 million loan payment due to the IMF, World
Bank and Inter-American Development Bank this month. Government
officials have proposed to default on the debt unless granted a
new aid package.

The government has expressed the need for help to end its four-
year recession. So far, no new funding has been received for the
last nine months. Argentina is currently negotiating for a new
aid package from the IMF.

The rates adjustments are seen as necessary to keep the country's
utility companies from going bankrupt. Argentina's
telecommunications, power and water companies have faced
escalating costs while revenues declined, or stayed level at

Aside from raising utilities rates, the IMF also wants the
country to include fiscal surplus and lift the bank freeze and
restrictions on foreign exchange transactions.

The economy ministry has said that the government expects to sign
the letter of intent to the IMF within the next two weeks. The
IMF's approval is expected to come by mid-November.


GLOBAL CROSSING: Ex-CEO Seeks Back Pay, Housing Reimbursement
A former chief executive of Global Crossing Ltd. filed a claim
seeking to force the Company to pay him US$708,000 in back pay
and over US$100,000 in rent for his Manhattan apartment,
according to the Wall Street Journal.

Leo Hindery, who served as CEO from Dec 1999 to October 2000,
asserts that Global Crossing owes him the back pay for his
US$83,000-a-month consulting services, which ended when the
Company filed for bankruptcy protection last January. He also
asks for eimbursement of five month's worth of rent at the
Waldorf-Astoria Towers in Manhattan.

Hindery maintained that, in his severance package, the Company
promised to pay his apartment rent until October 3, 2002. He also
said that the Company awarded him a consulting contract until
September 2002, with over US$1 million salary per annum.

Hindery is currently chairman and CEO of YES Network, a sports
broadcaster in New York. His requests were made known after
investors and regulators scrutinized severance packages of some
CEO's such as General Electric Co.'s John Welch Jr, and
WorldCom's Bernard Ebbers.

Global Crossing owes over US$12.4 billion to creditors, who
expect much less than that, when Global Crossing's sale to two
Asian companies is completed.

Edward Weisfelner, one of the attorneys representing Global
Crossing said that Hindery "can line up with all the other
general unsecured creditors."

Hindery's legal counsel, Philip Khinda, said that his client's
claim was just another routine filing, like the scores of filings
made by others.

Hindery is known to have clashed with the Company before. He had
made some critical comments after the disclosure of the Company's
questionable accounting. He is also known to be often at odds
with Gary Winnick, the Company's chairman who hired him.

Meanwhile, Winnick is expected to face more pressure from
creditors. There are talks that a group of creditor's may ask for
his resignation at a meeting scheduled Tuesday.

         Press Contacts: Fernanda Marques
         + 55 21 3820-4712

         Analysts/Investors Contact
         Ken Simril
         +1 310-385-3838

GLOBAL CROSSING: Ongoing Probe Unveils More Irregularities
Global Crossing, which is currently under investigation by the
FBI and the Securities and Exchange Commission, used questionable
accounting in the first half of 2001 to boost reported cash flow
and keep creditors from demanding payment on US$2 billion in
loans, Reuters reports, citing the Los Angeles Times newspaper.

According to the newspaper, which cited internal company
documents and e-mails it had obtained as the basis of its report,
federal investigators had focused on the period around May 2001
when executives cashed out large amounts of shares even as the
Company used suspect accounting to remain in good standing with

In May 2001, Global Crossing took steps to massage its reported
earnings before interest, taxes, depreciation and amortization,
in order to remain in compliance with a bank deal that measured
EBITDA against total debt and avoid crossing a threshold that
could have triggered a cash crunch, the Los Angeles Times

Global Crossing took an unusual decision in May 2001 to
capitalize what had been an 11-year rental agreement on its
Madison, New Jersey office. That move boosted EBITDA by $1.38
million, the report says.

Also at that time, five company executives, including Chairman
and founder Gary Winnick, cashed out 11.5 million shares, when
the shares traded as high as $15.

TYCO INTERNATIONAL: More Auditors to Examine Books
PricewaterhouseCoopers LLP has added more auditors in its annual
audit of Tyco International Ltd.'s books. David Nestor,
spokesperson for the accounting firm said that the additional
auditors were due to Tyco's request, and not a result of the
ongoing investigation on Tyco's accounting.

The Associated Press quoted Tyco's spokesman Gary Holmes saying
that the new management needed extra help. Earlier, individual
auditors from PricewaterhouseCoopers, who were supposed to review
the payouts to Tyco's former executives, were investigated.
Criminal charges are unlikely to be filed against the said

The investigation also wanted to find out if the auditors should
have released a proxy statement revealing that US$32 million
bonus paid to Tyco's former CEO Dennis Kozlowski.

Kozlowski, and Tyco's former finance chief Mark Swartz face
charges of grand larceny and enterprise corruption. Both pleaded
not guilty, and are out on bail.

TYCO INTERNATIONAL: Plans Buffalo, N.Y. Plant Closure
Tyco International Ltd. is planning to shut down its electronics
subsidiary M/A-COM Advanced Materials plant on Hertel Avenue.
Knight Ridder Business News reports that New York Mayor Anthony
Masiello blamed Tyco's corporate problems seeping down to M/A-
COM. But M/A-COM denied this, saying that the move was its own

The plan, including M/A-COM's move to Massachusetts was meant to
cut operations cost. The cost cutting would also mean the
elimination of 61 local jobs. Tyco also pointed out that not all
its subsidiaries were affected by the corporate scandal. It just
happened that M/A-COM was with the declining electronics sector.

Local economic development officials were disappointed in the
planned closure. M/A-COM had acquired local company Advanced
Refractory Technologies, but cut 50 jobs soon after the buyout
last year.

Local officials claim that the Buffalo plant could survive under
different ownership. In fact, they say that two buyers are
interested in the plant. One is local, and the other is from out
of town, according to the city's economic development arm.

The city has expressed its willingness to strike a deal with M/A-
COM to keep local operations going.  M/A-COM had issued a
statement that the Company is not discounting the possibility of
a deal, but emphasized that one of their priorities is to create
value for their shareholders.

Tyco's new chief executive officer Edward Breen has been trying
to gain back shareholders' confidence after the Company's scandal
involving former executives shocked the business community.

Among the Company's moves is to get back the severance packages
and other money Tyco's ex-CEO Dennis Kozlowski and former CFO
Mark Swartz allegedly stole from company funds.

Tyco's stock is currently trading at about US$13 per share,
substantially lower than the US$60 range it had when the year

TYCO INTERNATIONAL: Names Richardson Electronics as Distributor
Richardson Electronics (Nasdaq: RELL), a global provider of
engineered solutions for RF and wireless, today announced it has
been named an authorized industrial electronic distributor for
Tyco Electronics. Under the terms of the agreement, Richardson
will have distribution rights in North America including Canada
and Mexico.

"Richardson Electronics has been a valuable and loyal distributor
for Tyco Electronics primarily serving the RF and Wireless Market
Places," said Ray Horner, Director of Distribution for Tyco. "We
expect this expansion of the authorization to increase the market
share across product lines and the customer base for both Tyco
Electronics and Richardson Electronics."

The expanded relationship includes numerous products such as
switches and interconnect components, to support Richardson's
market focused customer base. The Tyco electronics family of
manufacturers such as AMP, Potter and Brumfield will increase
both companies penetration into wireless, industrial, and
commercial applications.

"This franchise expansion agreement is a significant development
for the Richardson interconnect business unit," said Kevin
McCormack, Richardson's business unit manager of wireless passive
components. "Tyco's products are found in virtually every market
segment within the electronic industry. This agreement will
facilitate Richardson's interconnect business unit to broaden our
product offering into key markets such as telematics, industrial
and commercial applications."

About Tyco Electronics

Tyco Electronics is one of the major business units of Tyco
International Ltd. Headquartered in Harrisburg, Pennsylvania,
USA, Tyco Electronics is the world's largest passive electronic
components manufacturer; a world leader in cutting-edge wireless,
active fiber optic and complete power systems technologies; and
is also rapidly developing extensive networking and building
technology installation services. The company has facilities
located in 51 countries serving customers in the aerospace,
automotive, computer, communications, consumer electronics,
industrial and power industries. Tyco Electronics provides
advanced technology products from over forty well-known and
respected brands, including Agastat, Alcoswitch, AMP, AMP
NETCONNECT, Buchanan, CII, CoEv, Critchley, Elcon, Elo
TouchSystems, M/A-COM, Madison Cable, OEG, OneSource Building
Technologies, Potter & Brumfield, Raychem, Schrack, Simel and TDI
Batteries. For more information visit .

About Richardson Electronics

Richardson Electronics, Ltd. is a global provider of "engineered
solutions," serving the RF and wireless communications,
industrial power conversion, security and display systems
markets. The Company delivers engineered solutions for its
customers' needs through product manufacturing, systems
integration, prototype design and manufacture, testing and


CELESC: Meeting Financial Obligations Ahead Of Schedule
Expecting to receive a total of BRL507 million from the federal
government, through BNDES, Brazilian power company Celesc said it
will pay off debentures and commercial paper in advance, reports
Business News Americas.

According to Celesc advisor Carlos Henrique Ramos Fonseca, the
Company plans to meet with holders of BRL32 million in debentures
on November 1 to renegotiate terms. Celesc plans to offer 100% of
the CDI, below current market conditions, to encourage the
holders to return their debentures ahead of schedule.

Celesc also plans to meet with holders of US$50 million in euro
commercial paper to discuss terms for retrieving the papers ahead
of schedule, Fonseca said. If Celesc debenture holders offer a
reasonable discount for the Company to take the papers back ahead
of schedule, then Celesc is willing to pay up, he said.

Both these loans are expensive, and are impacting Celesc's bottom
line, Fonseca explained. Now the Company has the cash from the
federal government it can set about trying to pay them off, he

"It's a way for investors to escape from the Brazil risk,"
Fonseca said, referring to the economic turmoil the country is
currently caught up in. "If the terms are favorable to both
parties then we'll rescue the debts."

The funds that the Florianopolis-based state-run distributor will
receive from BNDES is part of an agreement whereby the federal
government becomes a creditor of the Santa Catarina state
government in exchange for paying off its debts with Celesc. The
state government, which owes Celesc a total of BRL720 million,
could not make good on its payments. By taking over the debt, the
federal government, through BNDES, will settle payments with
Celesc. The state government will now pay the debt to the federal

           Rodovia SC 404 - Km 3
           Itacorubi 88034-900 Florianopolis - SC
           Phone   +55 48 231 6011
           Home Page
           Francisco De Asis Kuster, Chairman
           Enio Andrade Branco, Finance Director

CELESC: Board Approves Continued Talks With Petrobras
The board of Santa Catarina state distributor Celesc authorized
continued talks between its natural gas distribution subsidiary
SCGas and Brazil's federal energy company Petrobras, to sign a
memorandum of understanding to develop co-generation projects,
reports Business News Americas.

Although still a long way off, the idea is to create a new joint
venture company to provide co-generation solutions - either heat,
cold or electric power - using natural gas.

The partners are also considering construction of a
thermoelectric plant in Guaramirim using natural gas from

CELESC: Strikes Agreement With Aneel To Delay Spin Off
Celesc reached an agreement with power regulator Aneel to extend
until May 2003 a deadline for spinning off its operating assets
into subsidiaries for distribution, generation and transmission,
reveals Celesc advisor Carlos Henrique Ramos Fonseca.

"We've reached an agreement in principle although it has yet to
be formalized," Fonseca said.

Aneel wants all companies to spin off these different assets to
bring transparency to the costs and avoid cross-subsidies. Celesc
and Minas Gerais-based Cemig are the only companies to date that
have not complied, both claiming their plans have been delayed
because they need the approval of their respective state

CSN: Brazil's Economic Woes Complicate Merger With Corus
Benjamin Steinbruch, the CEO of Brazilian flat steel maker CSN,
revealed the impact of the country's economic woes in the
Company's planned merger with Anglo-Dutch group Corus, relates
Business News Americas.

"[Brazil's economic problems] on the one hand help the merger
because it demonstrates the solidness of CSN at these times but
complicate it when we have to explain what is happening here in
Brazil," Steinbruch said.

Both companies plan to conclude the merger in the first half of
next year. Approval by creditor banks and regulatory officials is

To see financial statements:

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

*Brazilian President Predicts Inflation Surge Over Default
Brazilian President Fernando Henrique Cardoso said Brazil will
not default on its BRL1.05 trillion (US$276 million) of debt.
However, the country may face a dangerous surge in inflation,
reports Bloomberg. Cardoso explained that because the country's
debts are payable in the local currency and is largely held by
local investors, Brazil will not have to spend foreign reserves
for their payment. Furthermore, default will be prevented by
printing money.

"I've seen analysts that say that 25 percent of the debt is in
dollars," Cardoso said in the interview with the magazine Epoca.
"They forget that it is paid in reais. It's a dollar amount in
reais. We do not depend on the dollar. If worse comes to worse,
we can monetize the debt, but beware, brutal inflation will

Brazil had BRL15 billion of debt due last month, and had
refinanced about BRL6.47 billion.


MINERA PUDAHUEL: Applies For Protection From Creditors
Chilean copper miner Minera Pudahuel, part of the Cruzat group,
applied for bankruptcy protection with the 24th Santiago Civil
Court, Business News Americas reports, citing Lal Segundar
newspaper. Patricio Jamarne, who was named provisional trustee,
has 30 days to submit a report on the Company's proposals to
restructure its finances.

Meanwhile, creditors will also have 30 days to present documents
certifying their stakes in the Company's debt. Creditors are due
to meet at the courtrooms on December 13 to discuss the matter.

Minera Pudahuel used to operate the Lo Aguirre copper mine 20km
west of Santiago that produced 15,000t/y cathodes, but was closed
a couple of years ago because of depleted reserves.


BANORO: Risky Practices Prompt Special Watch List Status
Guatemala local bank Banco de Nor-Oriente (Banoro) was placed
under a special watch by the country's banking regulator, reports
Business News Americas. The action was taken after Banoro was
found to have engaged in risky financial practices.

Earlier, the banking regulator has forced the bank to change its
president and general manager in a bid to improve its
administration. The new administration has called on its
shareholders to pay their loans in order to save the ailing bank.

Regulator Douglas Borja said that the bank's financial health is
under jeopardy due to excessive loans and overdrafts to
shareholders. The bank's shareholders have 30 days to inject
GTQ30 million (US$3.87 million) in the bank.

A spokesman from the banking regulator's office said that the
regulator could force Banoro into liquidation if they could not
manage to improve the bank's situation.

CONTACT: Banco del Nor-Oriente (BANORO)   
         4 Calle 10-46 Zona 1, Ciudad   
         Tel. No. (502) 941-2519   
         Fax No.  (502) 941-2545   


CYDSA: Delay In Economic Recovery Leads to Payment Defaults
Mexican chemical and textile producer Cydsa SA defaulted on its
principal and interest payments on bank loans amounting to US$4.4
million. Citing a Cydsa statement, Bloomberg reports that the
Company missed semi-annual principal and interest payments of
US$2 million and US$2.4 million on loans from the Mexican units
of Citigroup Inc., Banco Bilbao Vizcaya Argentaria SA and
Comerica Inc.. The payments were missed at its textile and
packaging-materials units, which took in 43% of revenue in the
first half of the year.

"This is due to the performance of our units, which have been
affected by the delay in the recovery of the world and local
economy," the Company said in the statement.

The Company said talks between it and the creditor banks over a
debt plan are now underway.

In November, Cydsa reached an agreement with bankers to extend
payments for six years on US$200.5 million in loans. That plan
was contingent on the restructuring of US$200 million of bonds
scheduled to mature in June this year.

Holders of US$159 million of the bonds accepted a plan in April
to extend the maturity date to June 2009, while holders of US$41
million sold the bonds to Cydsa below face value.

Cydsa reported sales in 2001 of roughly US$69.8 million on a cash
debt load of US$382 million. Its assets have a book value of
around US$1 billion

Based in Monterrey, Mexico, Cydsa maintains a presence in several
industrial sectors, including Chemicals and Plastics, Fibers and
Textile Products and Flexible Packaging.

          Jesus Montemayor, Treasury Director

GRUPO BITAL: HSBC May Obtain Purchase Approval by November
HSBC Holdings Plc, Europe's biggest bank by market value, is
likely to obtain approval for its purchase of Mexico's No. 5
bank, Grupo Financiero Bital, within two weeks, Mexican
regulators indicated.

In a Reuters report, Jonathan Davis, president of the National
Banking and Securities Commission said that if everything goes
well, HSBC would launch a tender offer for the outstanding Bital
shares by the end of October and the purchase could be finalized
by mid-November.

HSBC in August said it was buying Bital for US$1.14 billion in
cash and would fully capitalize the Mexican bank in the next two
years. According to Davis, the European bank may need to inject
between US$550 million and US$600 million of additional capital
into Bital.

Earlier, Bital executives had estimated that HSBC would have to
inject at least another US$450 million into the local concern to
comply with tougher bank requirements set to be in place next
year. Davis said that regulators are defining with HSBC
executives the amount needed to boost capital ratios of Bital.

Bital has about 1,400 branches and six million customers. After a
wave of foreign bank takeovers in the last two years, Mexico's
No. 4 banking group Banorte is now the only major bank left in
Mexican hands.

          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Home Page:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar

T R I N I D A D   &   T O B A G O

BWIA: Union Head Urges Immediate Government Intervention
Christopher Abraham, president of the Aviation Communication and
Allied Workers Union, is calling on the new Trinidad and Tobago
Government and its Prime Minister Patrick Manning to intervene in
the dispute between the management of BWIA and its staff. Abraham
criticized the government for not intervening when BWIA first
announced its restructuring exercise in January.

According to the ACAWU leader, the airline's financial crisis
could have been prevented and BWIA employees might not be facing
management's demands for cost cutting concession had the
Government gotten involved in January and took the workers into
their confidence.

"We are hoping since the Government now is an elected government
they would have their programs," said Abraham. "We need to meet
with them urgently on the issue of BWIA. We are prepared to work
together with the Government to save the airline."

Earlier, Manning had said the dispute between BWIA management and
its staff "is one in which the Government is well advised to stay
away from". However, the Prime Minister said the Government is
aware of the impact of BWIA's present circumstances and was
monitoring the situation closely.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           Home Page:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


BANCO COMERCIAL: Additional Potential Acquirer Surfaces
Another group has expressed an interest in taking over suspended
Uruguayan bank Banco Comercial, which is owned by international
banks J.P. Morgan Chase & Co., Credit Suisse First Boston and
Dresdner Bank AG, relates local daily El Pais. According to a
source, Uruguay's central bank chairman Julio de Brun and the
economy ministry's macroeconomic advisory director Isaac Alfie
have met with representatives from an unnamed US-based investment
fund to discuss about the fund's interest in acquiring Comercial.

The new potential bidder surfaced just days after Brazilian
financial group Brazilinvest Emprendimentos e Participacoes
announced its intention to takeover Comercial. Previous reports
revealed that Brasilinvest has already handed a takeover proposal
to the Economy Ministry and the central bank. In a few days,
Brazilinvest representatives are expected to meet with Uruguayan
authorities in Montevideo to discuss a potential deal.

Comercial, and three other local banks Banco de Credito, Banco
Montevideo and Banco Caja Obrera were all intervened and
suspended in July and August due to liquidity and capital
problems caused by the Uruguayan financial system's vulnerability
to Argentina's financial crisis.

The Uruguayan government and the different parties are trying to
beat the time, as there are only less than 10 days left before
the banks go into liquidation and the central bank has said it
will not prolong the negotiations.

Investment group St George is still negotiating the take over of
Banco de Credito and Greek group Tsakos is eyeing Montevideo and
Caja Obrera.

          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page:


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

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