TCRLA_Public/021021.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

           Monday, October 21, 2002, Vol. 3, Issue 208

                           Headlines


A R G E N T I N A

ARGENTINE UTILITIES: Reduces Services, Seeking Rate Increases
PEREZ COMPANC: Petrobas Becomes Controlling Shareholder
* Argentina Appeals IMF Aid Terms


B E R M U D A


TYCO INTERNATIONAL: Auditors May Not Certify Books
TYCO INTERNATIONAL: Board Meeting Addresses Concerns


B R A Z I L

BEM: Privatization Delayed Due To Reevaluation Of Base Price
NET SERVICOS: Shares Gain As Local Currency Strengthens
VARIG: Forecasting Profitable International Operations
* Taylor Predicts Post-Election Recovery


C H I L E

ENAMI: Congress Signs Bill Making State A Guarantor
ENAMI: Board To Discuss Finances, Disputada Draft Agreement
MADECO: Launching Another Round of Capitalization
SAESA: "Investor Uncertainty" Postpones Planned Bond Issue


E C U A D O R

PACIFICTEL: Shareholder To Submit Service Improvement Plan


M E X I C O

CHUPA CHUPS: Denies Plans to Close Two Factories
HYLSAMEX: Developing New Technology to Diversify Sales


P E R U

BACKUS: Conasev Opens Probe Into Three Companies
EDEGEL: Offers ISA Part of Stake In Power Transmission Lines


     - - - - - - - - - -

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

ARGENTINE UTILITIES: Reduces Services, Seeking Rate Increases
--------------------------------------------------------------
Grievances against Argentina's utilities companies are increasing
reports Bloomberg. Complaints about telecommunications services
have increased by as much as 20 percent in the past year,
according to the National Communications Commission, the agency
that handles the country's telecommunications industry.

Many companies have cut maintenance schedules after sustaining a
72%  currency value declined in the last year. The changes have
led to more complaints from consumers, as requests for repairs
don't get addressed sooner. However, the deterioration of
services has triggered an intense opposition to future rate
increases.

Economists warn that the deterioration in services may estrange
customers, which could further the difficulties of recovery.
The state had planned to reduce its involvement in the economy
and hoped to improve services through foreign investment.
Electricite de France, Telecom Italia SpA, the UK's BG Group Plc
and Spain's Endesa SA, were among foreign companies that acquired
nearly all Argentina's electricity, gas and water utilities from
the government in the early 1990s.

However, the utilities business became unprofitable last January,
when the country abandoned its fixed one-to-one ratio with the US
dollar. The peso has dropped to 3.6 per dollar, quadrupling the
cost of dollar denominated debts, forcing many companies to
default on their debts.

The biggest private default in Argentina was by the local joint
venture of France Telecom SA and Telecom Italia SpA in April,
when they stopped payments on $3.2 billion of bonds and bank
loans. Foreign-owned utilities in distress clamored to be allowed
to raise prices in order to start negotiations on their debts.

Losses were compounded when the government imposed a bank freeze
on deposits, cutting off consumers from their money, and making
them late on the bill payments. Consumer group Consumidores
Libres said that the late payments quadrupled to 40 percent of
all utilities bills.

Telephone and electricity companies also faced losses due to a
significant increase in cable thefts. A spokesman for Telefonica
de Argentina Sa said that over 900 kilometers of wire have been
stolen from the company this year.

The government has permitted the companied to relax quality
standards to partially offset losses. However, this only added to
the discontent of a number of consumers. Consumer protection
groups say in claims against electricity distributors to replace
or repair appliances are on the rise due to the lower quality of
services.

Because of the unfavorable conditions utilities companies face,
some are contemplating of pulling out from the country. Public
Service Enterprise Group Inc., the owner of New Jersey's largest
utility, in September said it would sell its 90 percent stake in
a provincial power distribution company.

Electricite de France, Europe's largest power company, said it
will stop investing in its Argentine unit and may write off the
$1 billion it has spent in the country thus far.

France Telecom in March wrote off the value of its 360 million
euro ($354 million) stake in the joint venture with Telecom
Italia, saying its participation would probably be diluted in a
debt restructuring.

Other companies have asked the government to allow them to raise
prices by as much as 250 percent to offset losses due to the
declining value of the local currency. Public hearings on their
requests have been scheduled to begin by the end of this month.


PEREZ COMPANC: Petrobas Becomes Controlling Shareholder
-------------------------------------------------------
Pecom Energia S.A. (Buenos Aires: PECO) announces that Perez
Companc S.A. (Buenos Aires: PC NYSE: PC) announced Thursday
receiving notice that Petrobras Participacoes, S.L. has acquired
from Jorge Gregorio Perez Companc, Maria Carmen Sundblad de Perez
Companc, Jorge Perez Companc, Rosario Perez Companc, Pilar Perez
Companc, Luis Perez Companc, Cecilia Perez Companc, Catalina
Perez Companc, Pablo Perez Companc and Fundaci˘n Perez Companc,
their aggregate equity interest in Perez Companc S.A., composed
of 1,249,716,746 Class B Shares representing 58.62% of Perez
Companc S.A.'s shares and capital stock.

The pertinent notice states that the relevant filings with the
"Comisi˘n Nacional de Defensa de la Competencia" (Antitrust
Committee) under the terms provided for by Law N.25,156 and with
the "Consejo Administrativo de Defensa Economica" (Economic
Defense Administrative Board) of Brazil under the terms provided
for by Law N.8884/94 will be made, the transfer of the equity
interest mentioned above made on this date having been effected
subject to the approval of the above referenced agencies.

Pecom added it was also informed that it is not Petrobras
Participa‡oes S.L. intention to acquire any higher interest in
Perez Companc S.A. capital stock.

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


* Argentina Appeals IMF Aid Terms
---------------------------------
The government of Argentina has requested some changes to the
conditions the International Monetary Fund requires in order to
grant the crisis-embattled country aid. According to Reuters, the
country sent the IMF a list of the requested modifications, as a
response to the draft letter of intent outlining economic
policies to be implemented by the country.

Argentine Economy Minister Roberto Lavagna said that the response
the country sent to the IMF shows that the negotiations between
the two parties are making progress. Argentina lost its credit
line to the International Monetary Fund last year and is
currently in negotiations with the multilateral lender for a new
aid package.

In the course of the negotiations, the IMF asked Argentina to
resolve a freeze on its banks deposits, which the country did.
Another of the reasons the IMF cited as one that would reject
Argentina's loan request was the dispute between the Argentine
Congress, President and Supreme Court. That conflict was resolved
when the Congress called off the planned impeachment of the
Supreme Court.

The IMF has also called on Argentina's officials to support a
plan to make budget spending cuts in order to resolve the crisis
that has gripped the country for four years.



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


TYCO INTERNATIONAL: Auditors May Not Certify Books
--------------------------------------------------
PricewaterhouseCoopers LLP (PwC) is leery of signing-off on the
Tyco International Ltd.'s financial statements, reports the Wall
Street Journal. According to the report, PwC would wait for the
results from a separate forensic audit rather than certify the
results in time for the release of Tyco's fiscal fourth quarter
figures by Oct 24.

Outside attorneys and a separate accounting firm is conducting an
intensive accounting investigation on the embattled company's
books, with the cooperation of PwC. It is expected to be done by
late November.

Records show that PwC signed off Tyco's earnings on the same
dates that Tyco issued its fourth-quarter results for the past
three fiscal years. Securities rules provide that PwC has until
Tyco's annual report date to complete the auditing, and sign the
letter.

Individual auditors from PwC were subjected to interrogation
following the investigation on the corporate scandal that hit
Tyco. The interrogation was done 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 are
indicted on charges of grand larceny and enterprise corruption.
Both pleaded not guilty, and are out on bail.

CONTACT: Tyco International Ltd.
         Corporate Office
         The Zurich Centre, Second Floor
         90 Pitts Bay Road
         Pembroke HM 08, Bermuda
         Phone: 441-292-8674
         Home Page: http://www.tyco.com


TYCO INTERNATIONAL: Board Meeting Addresses Concerns
----------------------------------------------------
The board of Tyco International Ltd. met in Bermuda Friday. At
the top of its agenda is how to resolve the scandal resulting
from the alleged fraud the company's former executives had
committed. Another priority is covering how to gain investor
confidence that was shattered by the scam.

The Times Online quoted Lord Ashcroft, a non-executive director
saying that, though the amount the management allegedly took
without authorization is major by almost any standard, it is not
that big in relation with Tyco's capitalization.

The company's market capitalization has declined markedly after
the market learned that Tyco's former chief executive Dennis
Kozlowski and former finance chief Mark Swartz had allegedly
embezzled about US$600 million dollars from the company's
coffers. However, the company's capitalization is still valued at
US$26 billion.

Lord Ashcroft also discussed the implications that may result
when Tyco's name is dragged along with that of Enron and
WorldCom, both of which has gone down bankrupt.

Lord Ashcroft also said that allegations that Tyco may have
cheated on its books have caused the sharp decline in the
company's shares. He added that a thorough investigation done by
forensic accountants have found nothing to prove the allegations.

Tyco's shares were down to US$6.98 in July down from US$60 in
December last year. It closed at US$12.92 on the New York Stock
Exchange Monday.

Kozlowski and Swartz face charges of grand larceny and enterprise
corruption. Both pleaded not guilty, and are out on bail.



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

BEM: Privatization Delayed Due To Reevaluation Of Base Price
------------------------------------------------------------
Brazil's federal accounts bureau has ordered a reevaluation of
the minimum price for Banco do Estado do Maranhao (BEM) to
reflect the bank's poor 1Q02 results, said spokesperson from the
Brazilian central bank. As a result, the privatization of BEM,
which was scheduled for October 31, was moved to a later date,
December 3.

In March, the central bank set a BRL91.9-million (US$23.9mn)
minimum bid price for BEM, without taking into account the bank's
1Q02 results, where actual net income of BRL900,000 fell well
short of the projected BRL2 million. The reevaluation, which will
be conducted by the auditing consortium Delloite, Trevisan, Souza
Campos, Zalcberg, Maxima, and Rosenberg, is expected to reduce
the price tag listed in the first draft of BEM's bidding rules.

The central bank is expected to announce the new price tag for
BEM by the end of this month, based on the findings of the
auditing consortium. Pre-qualified bidders are Brazil's first and
second-largest private banks, Bradesco and Itau.


NET SERVICOS: Shares Gain As Local Currency Strengthens
-------------------------------------------------------
Shares of Net Servicos de Comunicacao SA (formerly Globo Cabo)
rose 3 centavos, or 13%, to 27 centavos as Brazil's currency, the
real, strengthened 0.9% against the dollar on Thursday, reports
Bloomberg. The cable television company has 59% of its BRL1.67-
billion debt denominated in dollars and its results have been
impacted by a weaker currency.

"Globo Cabo is rising because of the gain in the real but also
because it already fell a lot recently," said Eduardo Favrin, who
manages BRL400 million in equities for J.P. Morgan Chase & Co. in
Sao Paulo.

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: Forecasting Profitable International Operations
------------------------------------------------------
The Brazilian airline company Varig may be dealing with a tight
financial condition at home but in the international scene, the
Company is looking toward brighter results. According to a report
by Folha de Sao Paulo, the airline posted BRL6.8 million profits
with its international operations during the Jan-Jun 2002 period.
The profits resulted from a drastic strategy, which included a
91% cutback on a number of international flights during the
period. That represented a slash of 92% on its income. Moreover,
the Company also had to return 12 planes in the beginning of the
second quarter of this year.

Varig, which is owned by its employees through Fundacao Rubem
Berta, which controls 87% of the airline's voting shares, is
under pressure from creditors to reduce costs and raise cash to
lower about US$900 million in debt. Rubem Berta has already
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


* Taylor Predicts Post-Election Recovery
-------------------------------------------------
U.S. Treasury Undersecretary for International Affairs John
Taylor expressed his confidence that Brazil will be on the road
to economic growth after the presidential elections. Dow Jones
Newwires quoted Taylor's remarks saying that they have followed
the country's economy closely and that the uncertainty is caused
by the elections.

Taylor speech comes after Brazil's Worker's Party, whose
candidate Luiz Inacio Lula da Silva is seen as the one likely to
win the Oct. 27 run off, launched a plan to strengthen domestic
capital market. This is aimed to reinvigorate the country's
economy.

While details of the Workers' Party policy program was not
revealed, indications show that Lula ma raise the primary surplus
target to 5 percent of the gross domestic product. Analysts say
that this is what is needed to stop the growth of the public debt
load.



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

ENAMI: Congress Signs Bill Making State A Guarantor
---------------------------------------------------
The Chilean senate now awaits a recently-signed bill designating
the state as an explicit guarantor of up to US$160 million worth
of debts held by state-owned minerals company Enami. The measure
was approved by the lower house of congress for passage to the
senate.

Enami, however, is looking to have the state guarantee up to
US$250 million in bonds that the Company plans to issue in order
to help pay off part of its debts of some US$480 million. Enami's
chief executive Jaime Perez de Arce is confident that it will
raise the target amount since the country's finance ministry had
assured him the issue would be guaranteed and "I have to trust
that is the case."

Late last year, in an effort to help resolve its debt problems,
Enami attempted to issue some US$140 million in bonds. However,
the issue flopped because the bonds did not receive an explicit
state guarantee and as a result were rated AA by ratings agencies
as opposed to AAA.

Enami's debts mounted substantially in the 1990s with a US$164-
million "advanced profits" payment to the state, supplied with
loans from Lyonnaise and Dresdner banks. The Company had been due
to present a plan on refinancing these debts by the end of
September.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President


ENAMI: Board To Discuss Finances, Disputada Draft Agreement
-----------------------------------------------------------
The board of Enami was scheduled to meet Friday for a review of
its finances, reports Business News Americas. Also included in
the agenda is a draft agreement of a US$1.3-billion deal to sell
ExxonMobil's Chilean copper mining subsidiary Disputada de las
Condes to South Africa's Anglo American.

The sale, announced in May, has been held up because of tax
negotiations between the Chilean government and the US oil giant,
and legal action filed by Enami to ensure an option it holds to
49% of Disputada is recognized in the purchase contract.

According to Reuters, Enami and Exxon "appear" to have resolved
the issue out of court. The remaining obstacle was how to value
the option, which Enami had under a 1978 agreement in which it
sold Disputada to Exxon.


MADECO: Launching Another Round of Capitalization
-------------------------------------------------
Chilean copper cable company Madeco, following a recent failed
capital increase intended to raise US$90 million to pay half of
its short debt up front, will try to raise US$137 million in a
new capitalization bid, says Dow Jones. Madeco is in the middle
of a major financial restructuring after problems in Argentina
and Brazil, as well as low demand from the telecommunications
industry, hit company earnings. The resulting financial strain
makes servicing its US$330 million in debt increasingly
difficult.

"Madeco will continue with its financial restructuring process
and negotiations with its creditors with the objective of finding
and reaching an agreeable solution for all parties involved," the
Company said Thursday.

The Company will hold an extraordinary shareholders meeting next
week to seek approval for the new capital increase, US$12 million
in which is to go to executive compensation stock option plans,
while US$125 million will be offered to shareholders and third
parties.

In addition to cables, Madeco makes finished and semi-finished
nonferrous products based on copper, aluminum, related alloys and
optical fiber as well as flexible packaging products for use in
the mass consumer market for food, snacks and cosmetics products.

To see latest financial statements:
http://bankrupt.com/misc/Madeco.doc

CONTACT:  MADECO S.A.
          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          E-mail: mfl@madeco.cl
          Home Page: http://www.madeco.cl
          Contacts:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545
          E-mail: ir@madeco.cl

RESTRUCTURING ADVISER:

          SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller


SAESA: "Investor Uncertainty" Postpones Planned Bond Issue
----------------------------------------------------------
Chilean distributor Saesa had planned to issue some US$175
million in bonds on October 11 and use the proceeds to pay a
US$150-million loan due October 18, reports Business News
Americas. However, due to "investor uncertainty" following a drop
in the valuation of utility shares on Wall Street, the Company
decided to delay the planned issue for more than 60 days,
according to a Saesa spokesperson.

As a result, Saesa decided to negotiate with creditors to
restructure the loan in order to avoid a possible default. Saesa
had planned to change the terms of the bond issue to offer
investors more attractive conditions, including greater
guarantees.

Saesa had planned to issue a series C coupon bond of 6.5mn UF at
4.5% annual interest, maturing in July 2007; and a series D issue
of 4.5mn UF at 5.25% annual interest, maturing in 21 years with
amortization starting in January 2008.

CONTACT:  SAESA
          Gerencia y Administracion Zonal de Osorno
          Bulnes 441, Osorno
          Telefono: (64) 206400
          Fax: (64) 206209 - Casilla: 21 -0



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

PACIFICTEL: Shareholder To Submit Service Improvement Plan
----------------------------------------------------------
Fondo de Solidaridad (FS), the Ecuadorian government holding
company for state-owned enterprises, was hoping to submit to
Conatel last week a service improvement plan for fixed-line
operator Pacifictel and have Conatel's approval of the plan by
Tuesday, according to FS chairman Alejandro Rivadeniera.

Business News Americas suggests that approval of the plan is
necessary in order for Conatel to set a new date for selecting a
foreign administrator for Pacifictel, which has about 650,000
lines in service. Rivadeniera revealed that the administrator was
to have been selected on October 15, but the process was delayed
at the request of potential bidders.

Pacifictel's woes have been due mainly to poor service. According
to an El Universal report, Pacifictel loses US$150,000 to bypass,
billing errors, uncollectibles and flawed interconnection
agreements. Rivadeneira believes that taking in a foreign company
to administrate Pacifictel will help "stop the bleeding."



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

CHUPA CHUPS: Denies Plans to Close Two Factories
------------------------------------------------
Barcelona, Spain-based Chupa Chups SA, the world's largest
lollipop-maker, may be planning to shut down its factories in
China and Mexico after both units failed to return profits,
according to a report by Spanish daily El Mundo.

The report surfaced after the Company reduced about 2% of its
total workforce since the beginning of the year amid efforts to
reduce production. The Company also dismissed about 100 temporary
workers at its Villamayor plant in the Asturias region of Spain.

However, Bloomberg relates that Chupa Chups has denied the report
released by El Mundo, saying it is developing a "consolidation
plan" to maintain its expansion levels and profitability as it
attempts to offset slowing economic growth. The Company, which
gets 90% of revenue from outside Spain, said its business is
growing in Mexico, without being more specific.

Chupa Chups is owned by the Bernat family and is not publicly
traded. The company's revenue fell 2.5% in 2001, the first
decrease in a decade.


HYLSAMEX: Developing New Technology to Diversify Sales
------------------------------------------------------
Monterrey-based Hylsamex, a unit of conglomerate Alfa, plans to
invest a total of US$8 million in the development of new
technology. The Mexican steel maker, according to a report
released by Mexico City daily El Universal, will sell these
products to other companies or export these to 10 different
countries. Hylsamex noted however, that in the last two years,
the export of new processes to transform steel has dropped
dramatically due to the crisis in the industry at the global
level.

The Company recently reopened its no.1 plant in Monterrey and
planned to 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.

Hylsamex 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 E R U
=======

BACKUS: Conasev Opens Probe Into Three Companies
------------------------------------------------
Conasev, Peru's market regulator, opened investigations into
three companies that bought shares in the country's main brewery,
Union de Cervecerias Peruanas Backus & Johnston SAA (Backus).
According to a Conasev spokesperson, there is no deadline to make
a ruling in the cases.

Reportedly Conasev is now investigating Colombia's Bavaria and
Venezuela's Cisneros Group after it found signs of alleged
collusion between the two companies over their purchases of big
equity stakes in Backus just days apart in July.

The regulator also said there were signs Venezuela's Empresas
Polar may have raised its stake in the brewer to more than 25%
without launching a tender. Under Peruvian rules, firms seeking a
25% stake of a company must launch a full bid.

The regulator's decision to extend its probe is the latest
development in a takeover battle for Backus, which has a virtual
monopoly on beer sales in Peru. Conasev gave all sides five days
to present their respective defenses to the allegations.

Gabriela Galvez, an analyst at Interfip Bolsa SA brokerage in
Lima believes that one of the three buying shares in Backus will
probably end up with the control of the company. Backus had sales
of about US$252 million last year and profit of about US$34
million.

The allegations stem from July trades by which Bavaria and
Cisneros separately each arranged purchases of less than a
quarter of all voting shares of Backus. Polar, which at the time
already held Backus shares, said Cisneros and Bavaria were
working together. Bavaria in turn accused Polar of owning more
than 25% of Backus without having disclosed it.

CONTACT:  UNION DE CERVECERIAS PERUANAS BACKUS & JOHNSTON S.A.
          Jr. Chiclayo 594, Rimac
          Lima 25.
          Phone: +511-4810570
          Fax: +511-3820008
          Email: cobackus@backus.com.pe
          Home Page: http://www.backus.com.pe/INDEX-I.HTM
          Contact: Mr. Carlos Bentn, General Manager


EDEGEL: Offers ISA Part of Stake In Power Transmission Lines
------------------------------------------------------------
Peruvian electricity generation company Edegel proposed to sell
to the Colombian ISA (Interconexion Electrica S.A) part of its
share in its power transmission lines, according to a report
released by Comtex Custom Wires. Proceeds of the proposed sale
will be used to pay off part of Edegel's debt with its Chilean
parent, Endesa Chile, which is looking to prop up its ailing
finances.  Other possible buyers for the transmission lines
include Hydro Quebec and the Spanish Red Electrica.

Endesa Chile is controlled by Enersis S.A., which recently
revealed plans to sell some of its assets to help ease debts of
US$10.8 billion. That sum includes a US$1.4 billion loan payment
to Enersis' parent, Spain's largest power group, Endesa. Edegel's
total current debt stands at US$275 million, while Endesa's
stands at US$4.5 billion.

Edegel declined to comment on how much the company hoped to net
from the sale of the transmission lines. The Company is
forecasting a profit of around US$37 million this year, down
19.5% from nearly US$46 million in 2001, because of higher tax
payments. But according to Edegel Managing Director Jose Griso,
the Company was doing well despite economic woes across Latin
America.

"Edegel has a phenomenal (financial) position and very low debt.
But we are a unit of another company and ... that company (Endesa
Chile) has a high debt level," he said.

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





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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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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