TCRLA_Public/021105.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, November 5, 2002, Vol. 3, Issue 219

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Government Sponsoring $9M Bail-out


A R G E N T I N A

IMPSAT FIBER: Confirms Restructuring Plan
* ARGENTINE BANKS: 1Q02 Results Reflect Sketchy Economy
* IMF Reports Progress in Talks with Argentina


B R A Z I L

AES SUL: Moody's Downgrades Ratings to Caa1, Negative Outlook
BESC: Central Bank Sets Base Price At BRL520.7M
COSIPA: Achieves Export Target Amid Increased Protectionism
NET SERVICOS: Announces Third Quarter 2002 Operating Results
TELEMAR: Reports Narrow Loss, Yet Fails Analysts' Expectations

TELEMAR: Board Approves Acquisition Of Pegasus
VASP: Court Orders Government To Pay $549M


C O L O M B I A

BANCAFE: Moody's Revises E+ BFSR Outlook To Stable


M E X I C O

AEROMEXICO: Wins Delta Airlines Contract
AHMSA: Bank Creditors Mull Lawsuit
BANCO ANAHUAC: IPAB Covers Guaranteed Obligations
BITAL: HSBC Launches Cash Tender Offer
CFE: Registers Net Loss in 3Q02 On Exchange Rate Fluctuations

CINTRA: Issues Info Regarding Administration, Assets Sale
GRUPO IUSACELL: At Risk Of Delisting From NYSE
MAXCOM TELECOMUNICACIONES: Clarifies 2003 EBITDA Guidance
SATMEX: Seeks Consent On Notes' Insurance Waiver
SATMEX: Moody's Cuts Credit Ratings

SUGAR REFINERIES: Judge Orders Injunction on Sugar-Mill Seizure


T R I N I D A D   &   T O B A G O

BWIA: Stock Sinks to Record Low Over Revenue Concerns
BWIA: Execs Say BWIA Will Survive Current Turbulence
BWIA/LIAT/AIR JAMAICA: Prime Minister Seeks One Regional Airline



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

LIAT: Government Sponsoring $9M Bail-out
----------------------------------------
A meeting of Caricom's heads of government resulted in the
decision they will bail out regional carrier LIAT.

The Saturday edition of The Trinidad Express showed that the
bail-out fund was estimated to be about US$9 million.

The report also revealed that 40 percent of the amount will be
guaranteed by the government of Trinidad and Tobago.

Prime Minister Patrick Manning yesterday said Friday that the
decision is in part, a form of support to LIAT shareholder BWIA,
another troubled airline. Manning explained that it was in the
interest of the region that they support LIAT.

Manning clarified that the country's position in the plight of
BWIA remains unchanged despite the support to LIAT.

In exchange for the help, LIAT is required to formulate plans to
restructure the airline to ensure its viability. A committee has
also been set up to help protect the airlines from predatory
pricing in the routes LIAT shares with Caribbean Star Airline.

St. Vincent Prime Minister Dr Ralph Gonsalves clarified that the
meeting was not set out to destroy the Caribbean Star Airline,
saying that they want the Caribbean Star in the air, but there
must be fair competition.

CONTACT:  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/
          Contacts:
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing


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

IMPSAT FIBER: Confirms Restructuring Plan
--------------------------------------------
Impsat Fiber Networks, Inc. ("Impsat" or the "Company")
(OTC:IMPT), a leading provider of integrated telecommunications
services in Latin America, announced Friday that its Disclosure
Statement was approved by the United States Bankruptcy Court for
the Southern District of New York and that Judge Robert Gerber
authorized the Company to solicit votes on its Plan of
Reorganization under Chapter 11.

The Confirmation Hearing on the Company's pre-negotiated Plan is
scheduled for December 11, 2002.

Copies of the Plan, Disclosure Statement and accompanying ballot,
and full details of the procedures for voting will be mailed by
November 1, 2002 to the Company's Senior Noteholders, equipment
vendors and suppliers, and other creditors, who will vote on the
Company's proposed Plan. All ballots must be received by the
balloting agent, Arnold & Porter, by December 3, 2002. The
Disclosure Statement describes the proposed Plan originally filed
on September 4, 2002, which reflects the terms announced earlier
this year of the agreement in principle with the Company's
largest creditors and subsequently at the time of filing for
Chapter 11. The Official Committee of Unsecured Creditors, which
was elected by the US Trustee, has indicated its support to the
Company's Plan and is urging creditors to accept it.

This Plan, which involves a restructuring of Impsat Fiber
Networks, Inc.'s indebtedness under its vendor financing
agreements, Guaranteed Senior Notes due 2003, Senior Notes due
2005 and Senior Notes 2008, contemplates the reduction in
Impsat's consolidated debt by approximately $680 million.

Ricardo Verdaguer, Impsat's chief executive officer, stated: "Our
progress through the Chapter 11 process is consistent with our
original timeframe. We continue to believe that with the
continuing support of our creditors we will be able to emerge
from Chapter 11 before year-end."

Impsat Fiber Networks, Inc. is a holding company and its
subsidiaries, which are independent legal entities, will continue
to operate without interruption and serve their customers
normally. After the restructuring is completed, Impsat's
strengthened capital structure will reinforce the Company's
leadership in the Latin American telecommunications market.

Impsat Fiber Networks, Inc. is a leading provider of fully
integrated broadband data, Internet and voice telecommunications
services in Latin America. Impsat has recently launched an
extensive pan-Latin American high capacity broadband network in
Brazil, Argentina, Chile and Colombia using advanced
technologies, including IP/ATM switching, DWDM, and non-zero
dispersion fiber optics. The Company has also deployed fourteen
facilities to provide hosting services. Impsat currently provides
services to 3,000 national and multinational companies,
government entities and wholesale services to carriers, ISPs and
other service providers throughout the region. The Company has
local operations in Argentina, Colombia, Venezuela, Ecuador,
Mexico, Brazil, the United States, Chile and Peru. Visit us at
www.impsat.com.

CONTACT:  IMPSAT Fiber Networks, Inc.
          Hector Alonso or Gonzalo Alende Serra
          54.11.5170.3700
          www.impsat.com

          HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
          John McKenna or Lily Chu
          212/497-4100

          CITIGATE DEWE ROGERSON INC.
          John McInerney or Robin Weinberg
          212/688-6840


* ARGENTINE BANKS: 1Q02 Results Reflect Sketchy Economy
-------------------------------------------------------
After the Argentine sovereign debt default, the asymmetric
pesification of deposits and loans, the court rulings declaring
the pesification unconstitutional, and the myriad of changes,
often contradictory, that the government introduced in the
regulatory framework, the picture of the financial system
looked, at best, bleak.

Until this week, however, the extent of the damage caused was
almost impossible to measure, given that banks have not
published any financial statements since the debacle. Truth be
told, the delay was not the bank's fault alone, but mainly due
to the lengthy negotiations carried out between the government
and the banks about the size of the compensations to be provided
in the form of government bonds, with participants also devising
means to avoid showing a negative equity in the balance sheet.

Balance sheets as of March 2002 included the accounting of the
compensation bonds, the losses caused by the asymmetric
pesification, and the effect of inflation. The compensation
bonds conceded by the Argentine government for the asymmetric
pesification of assets and deposits, and for the negative
foreign currency gap that this decision created, reached $4.1
billion for the largest private sector entities (see table:
http://bankrupt.com/misc/Table.htm).The total compensation for
the financial system is estimated at around $10 billion, though
it could be higher if the government accepts banks' claims for
additional reimbursements. These claims refer to the difference
between the pesified deposits at 1.4 pesos per U.S. dollar with
those paid to depositors with court rulings forcing the payment
in the original currency, at market exchange rate; and also to
the difference arising from the government decision to switch
between the CER index (which reflects the evolution of consumer
prices) and the CVS index (which reflects the evolution of the
average salary and therefore lags the CER index) used to adjust
retail mortgage loans to individuals.

Banks reported losses during first-quarter 2002, in which the
effects of the asymmetric pesification took place, that are not
as dramatic as expected. However, some issues need to be
considered when analyzing these figures:
- The real value of the government securities exposure. Without
considering the compensation bonds, the largest private sector
banks show $6.5 billion of government securities (either bonds or
loans; see table http://bankrupt.com/misc/Table.htm).If these
securities were valued at market prices, banks would probably not
have equity.
- Inflation indexed loans and deposits distort income statements.
Income and expenses coming from inflation-adjusted loans and
deposits are accrued and increase the net financial income.
Although this is not necessarily a problem if banks' are able to
collect the payments on the indexed loans, the uncertainty about
their ability to do so remains significant, and may be
artificially affecting profitability.
- The full impact of inflation has not yet kicked in. Although
the income statement incorporates the effect of the inflation
over the bank's net nonmonetary assets and liabilities, the
larger jump in the wholesale price index used for adjusting will
be realized in the second-quarter figures.
One significant result of the asymmetric pesification and the
ensuing compensation is the dramatic increase in the banks'
exposure to the government. As the table
http://bankrupt.com/misc/Table.htmshows, banks have increased
their exposure to an average of 57% of total assets. Standard &
Poor's expects this situation to get worse, as the private
sector portfolio continued to shrink during the year. In this
context, banks are pushing for using this exposure to pay down
the financial assistance that they received from the Argentine
Central Bank, hence netting part of the effect and significantly
reducing the size of the balance sheet. Regardless if this
measure is ever approved, the current exposure is unsustainable
and the accounting value is nowhere near the market value of
these securities.

Unfortunately, the bad news regarding the public sector portfolio
cannot be offset with more auspicious asset quality trends on the
private sector loan book. At this point, major banks have
reported an average increase in the NPL ratio of approximately
10% for first-quarter 2002. However, taking into account that the
largest and more numerous corporate defaults took place during
the second and the third quarters of this year, a much sharper
increase in NPL indicators can be expected in the banks' future
financials.

ANALYSTS: Gabriel Caracciolo, Buenos Aires (54) 114-891-2100;
Carina Lopez, Buenos Aires (54) 11-4891-2118; Ursula M Wilhelm,
Mexico City (52) 55-5279-2007


* IMF Reports Progress in Talks with Argentina
----------------------------------------------
The International Monetary Fund said Friday that negotiations
between the lender and Argentina had made progress in past week's
talks.

However, the IMF admits that some key areas need to be resolved,
but representatives from both parties are working things out,
reports Bloomberg. The IMF added that in the next few days, they
would stay in contact with Argentina to continue working towards
a sustainable program.

Argentine Economy Minister Roberto Lavagna met with IMF Managing
Director Horst Koehler and First Managing Director Anne Krueger
in the funds headquarters last week. The group also met with U.S.
Treasury Secretary Paul O'Neill at the Treasury Building in
Washington.

Lavagna said that help from the U.S. was "very constructive".

Earlier, the IMF said that it would have granted Argentina aid
had the country done what the IMF had asked in the letter of
intent.

Argentine President Duhalde had refused to impose an increase on
tax and utilities rates, as it would make life harder for the
Argentine population.

The country is seeking to have its first capital infusion since
it defaulted on a record US$97 million in debt last December.
According to the Economy Ministry, the country defaulted on $73.8
billion of bonds under international jurisdiction and $23.1
billion under domestic jurisdiction.

Furthermore, Argentina is pressured to secure funds sooner as it
faces a total of US$2.4 billion in debt due this year. For this
month, the country has to pay a total of US$935 million to the
IMF, World Bank and Inter-American Development Bank, according to
Bloomberg.



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

AES SUL: Moody's Downgrades Ratings to Caa1, Negative Outlook
-------------------------------------------------------------
Senior notes of Brazilian electric distribution company AES Sul
Distribuidora Gaucha de Energia S.A. (AES Sul) worth BRL250
million received a downgrade from Moody's Investors Service with
a negative outlook. The new rating is Caa1, down from the B3.

The downgrade shows the company's weak financial performance. It
also means that cash flow is less than what is needed and
refinancing upcoming debt maturities is essential. It also
indicates other factors like the Brazilian currency devaluation
and uncertain regulatory prospects for the recovery of power
costs.

The negative outlook shows uncertainty on the company's ability
to refinance as needed and improve its finances.

The devaluation of the Brazilian Real is one major cause of loss
for the company, creating a mismatch between revenues and
liabilities. The company has dollar denominated debts, worth
US$300 million, while earning in the local currency, which has
lost much of its value against the dollar. The company is also
strained in obtaining refinancing for is BRL187.5 million in
debentures.

An 8 percent decline in revenues for AES Sul was indirectly
caused by the power rationing in the country.

The company was able to pay debt payments due in June and October
this year, but payments for debts due this month depends on the
company's ability to renegotiate its debt terms. The company is
currently in talks with creditor banks to restructure and extend
local debenture maturities.

Another of AES Sul's problems is a regulatory ruling by Brazilian
regulator ANEEL alleging that AES Sul, of which 96.7 percent is
owned by a subsidiary of U.S-based AES Corporation, could not buy
power from Itaipu and resell it in the wholesale market, thereby
generating wholesale market revenues accrued by Sul in its income
statement in 2001.

The ruling implies that total disallowed revenues totals BRL350
million. The company is currently is challenging ANEEL's decision
in court. The judge has ruled in favor of Sul and ANEEL is
expected to appeal the judge's decision in the Appeals Court.
Unless ANEEL's position is overturned by the courts, Sul faces a
write-down of its accrual for expected collections, and will not
collect all or a portion of the cash related to these accruals,
according to a report from Moody's.

CONTACT:  New York
          Daniel Gates
          Managing Director
          Corporate Finance Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Robert Johnson
          VP - Senior Credit Officer
          Corporate Finance Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BESC: Central Bank Sets Base Price At BRL520.7M
-----------------------------------------------
The Brazilian central bank set Friday the minimum bid price for
Banco do Estado de Santa Catarina SA (Besc) at BRL520.7 million.
The price, according to Dow Jones Newswires, fell below earlier
estimates of BRL700 million.

The auction of Besc is part of President Fernando Henrique
Cardoso's administration's state-bank privatization program
that's due to conclude before Luiz Inacio Lula da Silva, the
candidate of the opposition, left-leaning Workers' Party who
recently won the presidential election, comes to power in
January.

However, factors such as weak investor appetite, political
uncertainty and tough market conditions, could lead to the
postponement of the said auction.

"I think the sales will be postponed until next year," said
Erivelto Rodrigues, president of local consultancy Austin Asis,
which specializes in banking.

"I don't think this is a good time for the banks to be making
acquisitions and I believe there will be political pressure from
the Workers' Party to delay the sales," he added.

Eligible bidders are ABN Amro Holding NV and Brazil's three
biggest banks not in government hands, Banco Bradesco SA, Banco
Itau SA and Unibanco-Uniao de Bancos Brasileiros SA.

Besc is now slated for a December 16 sale. It was previously
scheduled for November 20. Before that, the sale was moved from
April to June.

Of the total auction price of BRL520.7 million, the government is
valuing Besc's banking arm at BRL378.3 million and real-estate
unit Besc SA Credito Imobiliario at BRL142.5 million.

The companies will be sold together as one unit at the Sao Paulo
Bovespa exchange.


COSIPA: Achieves Export Target Amid Increased Protectionism
-----------------------------------------------------------
Cosipa, which is controlled by Belo Horizonte-based flat steel
maker Usiminas, has achieved this year's export targets.

In a Business News Americas report, Cosipa Commercial Director
Renato Vallerini Jr. revealed that Cosipa exported 1Mt of its
products between January and October of 2002. The Company
achieved its target despite increased protectionism in developed
economies.

"With the start-up of the new equipment, Cosipa has regained its
productive capacity of 4.5Mt/y," Vallerini said.

The executive admitted that exports have "apparently" benefited
from the devaluation of the real compared to the US dollar.

"We say apparently because this benefit is only apparent since
what is gained by an increase in revenue is offset by imports of
inputs and also by the liquidation of obligations of past
investments which were mainly contracted in dollars," he said.

Slab sales abroad of 665,000t dominated the product mix of the
company's exports in the first 10 months of this year.

Foreign sales of cold-rolled products reached 133,000t or 13% of
the total; heavy plates 109,000t or 11%; hot-rolled products
70,000t or 7%; and other products 70,000t or 6%.

According to a previous report released by the TCR-LA, Cosipa is
facing debts of up to BRL4.65 billion, 77% of which is tied to
the US dollar.

CONTACT:  COSIPA
          Avenida do Cafe, 277
          Torre B, 8  e 9  andar
          Vila Guarani
          04311-000 Sao Paulo, Brazil
          Phone: +55-11-5070-8800
          Fax: +55-11-5070-8863
          URL: http://www.cosipa.com.br


NET SERVICOS: Announces Third Quarter 2002 Operating Results
------------------------------------------------------------
Net Servi‡os de Comunica‡ao S.A., formerly Globo Cabo S.A.,
(Bovespa: PLIM4 and PLIM3; Nasdaq: NETC; Latibex: XNET), the
largest Pay-TV multi-service operator in Latin America, an
important provider of bi-directional broadband Internet access
(V”rtua) and multimedia and data communication services for
corporate networks, announced Thursday its operating results for
the third quarter of 2002 (3Q02).

The following operating information, except where otherwise
indicated, is presented on consolidated bases, and comparisons
are made with the second quarter 2002 (2Q02).

- The company maintains the same strategy adopted in earlier
quarters, by being extremely selective regarding new sales. As a
consequence, and also due to economic uncertainty, the subscriber
base fell again, in line with the company's expectations. The
active subscriber base ended the third quarter with 1,338.2
thousand subscribers, a 2.1% drop compared to 1,366.7 thousand in
the previous quarter. The total subscriber base, which includes
temporarily blocked subscribers, dropped 2.4% and ended the
quarter with 1,352.4 thousand subscribers.

- As a result of this selectivity, the Standard package sales
were lower in the quarter while the Advanced package sales were
higher than in 2Q02. Therefore, the subscriber mix changed
slightly, with a decrease in the participation of the Standard
package from 10.6% to 10.5% and an increase of the Advanced
selection, from 49.4% to 49.8%.

- The Call Center outsource to EDS, which was effective in
August, led the Company to face some operational difficulties,
which are common during transition periods. However, the initial
results have already shown an improvement in the percentage of
answered calls. After the outsourcing, total answered calls
improved from 80% to 87% in Sao Paulo and from 65% to 82% in Rio
de Janeiro. The already stated goal is to increase these
percentages to above 90% in the first quarter of 2003.

- Brazilian Soccer Championship pay-per-view (PPV) sales in the
3Q02 were 5.5% higher, in comparison to the same period of 2001.
There were more than 94,000 sales in the quarter, of which 82%
were of the full package, which represents higher value than
sales of single matches.

- The annualized churn rate in 3Q02 was 17.9% against 19.6% in
the previous quarter. The selectivity in sales and the company's
new strategy to focus on better communication and costumer
satisfaction have also contributed to drop the churn rate during
the last two quarters. The relaunch of "retention islands"
(skilled customer service targeting the retention of subscribers
that could potentially disconnect) had an important role in
lowering the churn rate in this quarter. During August and
September, the company reverted around 35% of the requested
disconnections.

- Voluntary disconnections, i.e., disconnections requested by our
subscribers, represented 21% of total disconnections. Among
those, the ones justified by financial or personal reasons rose
to 32% in 3Q02 against 25% in the previous quarter, and
disconnections justified by moving to other cities or to areas
not covered by our cable network reached 25% of total from the
2Q02's level of 24%. This clearly shows that macroeconomic
uncertainties in Brazil are still affecting the habits of lower
income classes, mainly our non-Advanced subscribers. Drifting to
competition remained at a low 6% level.

- Total net sales of V”rtua reached 55,348 at the end of 3Q02, an
increase of 3.1% compared to 2Q02. The change in the subscriber
control system in regions 1 and 2, initiated in 2Q02, has been
finished this quarter. As anticipated in the 2Q02 results
release, the subscriber base was not significantly impacted.

- Active subscriber base rose 3.0% in comparison to the previous
quarter, reaching 50,654 in 3Q02. Thus, the penetration in the
active subscriber base increased to 3.8%, and, when considering
only the subscriber base that has already activated bidirectional
access, the penetration also increased, reaching 11.7%.

- V”rtua's annualized churn rate was 19.9%, quite low when
compared to the 34.3% in 2Q02. The negative impact in this
quarter occurred due to the change in the control system.
Disregarding that extraordinary change, churn would have been
18.5%.

- Sales of speeds of 256 kbps or higher was 71% of sales mix,
against 53% in the previous quarter. The company has been
focusing on actions that could stimulate sales of higher speed
packages. Among those, we highlight the price policy of cable
modems, which are offered in different price levels depending on
the speed package, and a recent agreement with superIG, which
states that if the subscriber agrees to remain in the base for at
least 12 months and chooses a speed of 256 kbps or higher, cable
modems are offered under a free lease agreement.
- The number of corporate network stations rose 0.8%, increasing
from 4,012 in 2Q02 to 4,045 in 3Q02. The number of company-owned
stations, which represents higher value to the company, rose
4,1%, mainly due to Fibranet (point-to-point connection using
fiber optic structure).

Contacts:  Marcio Minoru Miyakava
           +55 (11) 5186-2811
           minoru@netservicos.com.br

           Lu Yuan Fang
           +55 (11) 5186-2637
           lfang@netservicos.com.br


TELEMAR: Reports Narrow Loss, Yet Fails Analysts' Expectations
--------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar) reported Friday a net
loss of BRL20.6 million(US$5.7 million), significantly narrower
than net loss for the same period last year of BRL341.5 million.

Telemar also declared third quarter revenue of BRL2.95 billion,
higher compared to BRL2.63 billion from the previous year. EBITDA
was up to BRL1.43 billion from BRL498.8 million last year.

The Company also reported financial expenses, which include
foreign exchange losses and interest costs, rose to 1.02 billion
reals from 635.8 million reals, partly due to Brazil's volatile
currency.

Telemar secured its place as Latin America's biggest phone
carrier in network size, having 17.6 million lines installed and
another 15.1 million in service as of the end of this year's
third quarter.

In a report from Dow Jones Newswires, for the Company's mobile
unit Oi, which launched about three months ago, the loss was
381.6 million reals on a consolidated basis, compared with a loss
of 429.1 million reals a year ago.

The Company feels that its unit Oi would close the year with one
million users, after the third quarter showed 500,000 users
connected.

Consolidated loss was more than the expected BRL2464 million,
which disappointed analysts. However, consolidated revenues were
higher than the estimated BRL3.03 billion. Consolidated EBITDA
was BRL1.29 billion, also higher than the BRL1.22 in the
forecast.

The Company also said that the debt position by the end of this
year should be down to about BRL9 billion from BRL0 billion at
the end of the third quarter. Capital expenditures are expected
to be about BRL2.0 billion this year, from BRL8.0 billion last
year.

CONTACTS: Tele Norte Leste Participacoes
          Rua Lauro Miller 116/22 andar-Botafogo
          22299-900 Rio de Janeiro, Brazil
          Phone: +55-61-327-5544
          Fax: +55-61-617-7090
          Home Page: http://www.telemar.com.br
          Contacts:
          S‚rgio Lins de Andrade, Chairman
          Jos‚ Fernandes Pauletti, VP Operations and Interim
                                   President
          Francisco Tosta Valim, VP Finance



TELEMAR: Board Approves Acquisition Of Pegasus
----------------------------------------------
Tele Norte Leste Participa‡oes, S.A.(NYSE: TNE) announced
Wednesday that the Boards of Directors of both TNE and Telemar
Norte Leste (TMAR) have approved the completion of the
acquisition of Pegasus Telecom, S.A., thus taking another step to
solidify the company's nationwide presence. Following is the
background to this decision and the details of the transaction:

On July 11, 2002, TNE and TMAR informed the Market that they had
signed advisory agreements with UBS Warburg and Goldman, Sachs &
Co., for the purpose of initiating an economic and financial
appraisal of PEGASUS TELECOM S.A. ("Pegasus") seeking to possibly
acquire stock control or increase the ownership interest held in
the capital stock of this company. These appraisals have recently
been completed and submitted to the managements of TNE and TMAR,
along with the outcome of both accounting and legal due diligence
investigations conducted by PriceWaterhouseCoopers Auditores and
Barbosa, Mssnich & Aragao Advogados, retained by TNE and TMAR.
The management of TNE and TMAR have examined the result of these
studies and submitted their recommendations to the respective
Boards of Directors.

The Boards of Directors of TNE and TMAR, at meetings that took
place on October 30, 2002, recommended the approval and
completion of the following transactions:

(i) TMAR will acquire shares representing 99.999% of the capital
stock of Pegasus; and
(ii) TNE will transfer to TMAR the interest it currently holds in
the capital stock of Pegasus, which is equivalent to 24.44%. The
disposal of the ownership interest held by TNE in Pegasus will be
made for the same price per share to be paid to the other
sellers.

The economic and financial appraisal of Pegasus was carried out
based on the financial statements as of June 30, 2002. The
appraised value, which is the average of the appraisals of the
two financial institutions mentioned above, is R$ 560,950,000,
before deducting the financial indebtedness. On that date, the
net Fixed Assets totaled the amount of R$ 474,746,630, and the
financial indebtedness was R$ 339,146,296. The acquisition of the
Pegasus shares by TMAR, to be voted on at an Extraordinary
General Shareholders' Meeting (AGE) of TMAR, will use as
reference the following components:

(i) R$ 221,803,704 (appraisal value less indebtedness), to be
adjusted by the difference between the actual value of the
financial indebtedness of Pegasus, ascertained on the date of
execution of the purchase and sale agreement and on June 30,
2002, which is the base date for said value;
(ii) the amount of R$ 114,000,000, recommended by TMAR's Board of
Executive Officers, which results from the potential synergies
and savings that the transaction brings to TMAR; and

(iii) the tax credit arising from Pegasus' tax losses, the amount
of which is estimated at R$ 44,000,000, as of the base date of
June 30, 2002. If, and to the extent that this tax credit is
actually used by TMAR and/or Pegasus in the future, the
corresponding amount will then be paid to the sellers
concurrently with its use. The above items will be considered by
all voting shareholders during the Extraordinary General
Shareholders Meeting, with the exception of item (ii), for which
the controlling shareholders have decided to abstain and leave
the issue for the consideration of minority shareholders only.

Pegasus Telecom is a telecommunications company with head offices
in the City of Sao Paulo and is engaged in the provision of
specialized limited services, covering broadband data
transmission and Internet access services, primarily in the
corporate and business markets, with the support of a fiber optic
cable network and a wireless system. The company is present in
several cities of the mid-southern region of Brazil.

Pegasus also holds ANATEL licenses to provide specialized network
services and specialized circuit services within the Brazilian
territory and worldwide. Pegasus has several metropolitan rings
and a backbone covering the states of Minas Gerais, Goi s,
Federal District (Bras”lia), Rio de Janeiro, Sao Paulo, Paran ,
Santa Catarina and Rio Grande do Sul, which are supplementary to
the long-distance network (backbone) of TMAR. With this
acquisition, TMAR will have a broad national coverage, and will
thus be able to provide better services to its clients in the
data transmission area, with greater opportunities for market
expansion.

The acquisition of a controlling interest in Pegasus by TMAR will
be submitted for ANATEL's approval in due course. TMAR
shareholders may obtain further details on the transaction at the
following address: Rua Humberto de Campos, n§ 425, Rio de
Janeiro, RJ. Arrangements for this purpose can be made with Mr.
Jos‚ Carlos

Contact:  TNE - INVESTOR RELATIONS
          Roberto Terziani (terziani@telemar.com.br) 55 21 3131
1208
          Carlos Lacerda (carlosl@telemar.com.br) 55 21 3131 1314
          Fax: 55 21 3131 1155

          THOMSON FINANCIAL CORPORATE GROUP
          Rick Huber (richard.huber@tfn.com)
          Mariana Crespo (mariana.crespo@tfn.com)
          Tel: 1 212 807 5026
          Fax: 1 212 807 5025
          Website: www.telemar.com.br/ir


VASP: Court Orders Government To Pay $549M
------------------------------------------
Brazilian air transportation Viacao Aerea Sao Paulo SA (Vasp) is
to get BRL2 billion (US$549 million) from the government,
Bloomberg indicates.

This after a court ordered the government to pay the ailing
company such amount for losses caused by an economic plan that
failed to end inflation. The price freeze, according to Gazeta
Mercantil newspaper, caused Vasp to post losses.

The government can still appeal the decision in the Supreme
Court.

Vasp is staggering with a heavy debt load of BRL1.9 billion.

CONTACTS:  VASP
           (For Investors)
           Cesis Canhedo, Chief Financial Officer
           PraOa Comandante Lineugomes, s/n
           04626-910 Sao Paulo, Brazil
           Phone: +55-11-532-3000
           Fax: +55-11-533-0444



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

BANCAFE: Moody's Revises E+ BFSR Outlook To Stable
--------------------------------------------------
Moody's revised the outlook on Colombian bank Bancafe's E+
financial strength rating to stable from positive due to the weak
operating environment in the region.

On September 10, 2001, Moody's upgraded the Bancafe's bank
financial strength rating to E+ from E and placed the bfsr on
positive outlook. At that time, Moody's stated that the action
reflected the strong improvements in the bank's financial
fundamentals, particularly its asset quality and capitalization,
which resulted from a well-managed pre-privatization
restructuring.

Moody's noted however, that while the Colombian bank has been
able to stem its losses, profitability remains weak, as the
overall economy has provided fewer opportunities than expected.

Colombian authorities have been seeking to sell Bancafe for more
than two years now because of the bank's drain on public
finances.

According to an earlier edition of the TCR-LA, Bancafe is likely
to be sold in a process that would involve the participation of
private equity through a capitalization process. Exactly how much
capital Bancafe would need is still unclear. But, according to
estimates, the institution would require additional funds similar
to that amount injected by Fogafin, Colombia's deposit insurance
agency. Fogafin has injected COL250 billion (US$98 million) into
Bancafe.

As of December 31, 2001, the bank had total assets of US$2.3
billion (unconsolidated).

CONTACT:  BANCAFE
          Street 28 Not 13 To 15
          Bogota District of Colombia
          Phone:  5600999 EXT. 4338
          E-mail:  ma.pulido@bancafe.com.co
          Fax:  336 76 77
          Home Page: www.bancafe.com
          Contact:
          Pedro Nel Ospina Santamaria, Legal Representative



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

AEROMEXICO: Wins Delta Airlines Contract
----------------------------------------
Aeromexico, Mexico's largest airline, outbid four U.S. firms in
the race for a contract to provide maintenance to jets owned by
Delta Airlines, suggests EFE.

Delta awarded Aeromexico the contract, which would see Aeromexico
removing all insulating materials from the U.S. jets and
replacing it with a new high technology fire resistant material
that will also insulate against temperature changes and noise.
Aeromexico adjunct director general Arturo Barahona said that the
work will be done at the firm's plant in Guadalajara.

In turn, Delta will perform maintenance on the engines of
Aeromexico jets, a service that is currently being carried out by
another foreign firm.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com


AHMSA: Bank Creditors Mull Lawsuit
----------------------------------
Bank creditors of Altos Hornos de M‚xico (AHMSA) led by Bank of
America, Banamex and Bancomer met after a court handed down a
decision that bans them from voting nor making their opinions at
the steel maker's shareholders assembly scheduled for November 7.

The banks are expected to launch a lawsuit against the Company's
executives.

According to a report by Mexico City daily el Economista, the
First Circuit Civil Court of the Federal District decided that
Grupo Acerero del Norte (GAN) and Ahmsa conserved their right to
vote on all of the shares handed over as security to the banks
because they are currently under the suspension of payments law.

The court also determined that that in the case of stocks that
were sold illegally outside and on the Mexico City Stock Exchange
(BMV) by Banamex and Banco Inverlat, the voting rights would be
suspended because of the demands presented by GAN to nullify the
transactions.

AS a result of all of this, only the representatives of GAN and
Ahmsa will be able to vote in the November 7 assembly, "unlike
the banks or other institutions that are in possession of shares
used as security."

Ahmsa is the largest steel producer in Mexico with two plants in
Monclova, Coahuila state.

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


BANCO ANAHUAC: IPAB Covers Guaranteed Obligations
-------------------------------------------------
The Bank Savings Protection Institute (IPAB) paid a total of
MXN787.4 million (US$77.1 million) to the depositors of the
defunct Banco Anahuac, reports Mexico City daily El Universal.

The term for requests for payment ended last October 3 and the
term to pay depositors ended October 31.

Banco Anahuac, which was intervened in November 1996 due to
irregular operations on the part of the bank's brokerage
promoters, which provoked a serious effect on Mexican Social
Security Institute (IMSS) assets, is currently in a process of
liquidation.

The decision to liquidate Anahuac came after a technical study
conducted by the consulting firm Deloitte & Touche (D&T) under
IPAB's order indicated that the bank doesn't have any future as a
viable business.

Bank Anahuac has a capital deficit of totaling US$69 million when
it was taken over by financial regulators. At the close of 2000,
Banco Anahuac lost MXN878 million (US$93 million).

CONTACT:  IPAB
          Varsovia 19 Col. Ju rez
          Delegaci>n Cuauhtemoc C.P. 06600
          Phone: 52.09.55.00
          E-Mail: investor-relations@ipab.org.mx
          Home Page: http://www.ipab.org.mx

          Investors Contact:

          Adri n Hong
          Phone: 5209-5636
          E-mail: eahong@ipab.org.mx

          Juan Pablo Trevizo
          Phone: 5209-5631
          E-mail: jptrevizo@ipab.org.mx

          Natalia Ize
          Phone: 5209-5636
          E-mail: nize@ipab.org.mx

          Erika Avil,s
          Phone: 5209-5500
          E-mail: eaviles@ipab.org.mx


BITAL: HSBC Launches Cash Tender Offer
--------------------------------------
HSBC Holdings plc (HSBC) launched a cash tender offer to acquire
all of the outstanding shares in Grupo Financiero Bital S.A. de
C.V. (GF Bital) on Friday.

The offer price is US$1.20967 per share in cash for each
outstanding share of the Series ``O' shares and Series ``L'
shares. These will be acquired on identical terms, as explained
in HSBC's offer document. The total consideration, assuming
tender of 100 per cent of GF Bital's aggregate 942,408,493
shares, would be approximately US$1.14 billion, as announced on
21 August 2002.

HSBC is launching the offer in accordance with Mexican capital
markets regulations, following agreement with certain
shareholders who hold approximately 57 per cent of the Series
``O' shares and approximately 52 per cent of the aggregate of GF
Bital shares. These shareholders have agreed to tender their
shares to HSBC in accordance with the terms of the offer. The
offer is also subject to the receipt of a number of regulatory
approvals and to certain terms and conditions.

The board of directors of GF Bital has recommended that GF Bital
shareholders accept HSBC's offer and tender their shares.

The offer will expire at 15.45 hours Mexico City time on 22
November 2002. A news release will be issued after the offer has
closed to inform shareholders of the outcome.

HSBC considers GF Bital to be an attractive banking franchise and
a major and highly respected force in Mexican financial services.
The acquisition will enable HSBC to become one of the few banks
that can facilitate investment and trade flows seamlessly amongst
the NAFTA countries and internationally.

Upon completion of the acquisition a new board will be appointed
and Group General Manager and Chief Executive Officer Designate
(Mexico) Alexander A. (Sandy) Flockhart will choose a new senior
management team.

With some 7,000 offices in 81 countries and territories and
assets of US$746 billion at 30 June 2002, the HSBC Group is one
of the world's largest banking and financial services
organisations.


CONTACT: HSBC
         London
         Richard Beck or Adrian Russell, 44/20-7260-6757/8211

         New York
         Linda Stryker-Luftig, 212/525-3800

         Hong Kong SAR
         Gareth Hewett or Viginia Lo, 852/2822-4929/4930

         GF Bital
         Mexico City
         Hill & Knowlton
         Jose Antonio Tamayo or Juan A Lozano, 52/55-5729-4010


CFE: Registers Net Loss in 3Q02 On Exchange Rate Fluctuations
-------------------------------------------------------------
The Federal Electricity Commission (CFE) reversed last year's
third-quarter profit to a net loss in the same period this year
due to exchange rate fluctuations.

According to a Mexico City daily el Economista report, CFE posted
a net loss of MXN4.92 billion (US$482 million) during the third
quarter of 2002, against a profit of MXN3.07 billion (US$301
million) in the same quarter of 2001.

However, for this year's January to September period, the CFE
obtained operating profits of MXN5.80 billion (US$568 million),
while in the same period of 2001, it reported a loss of MXN1.17
billion (US$115 million). The Company attributed the improvements
to lower costs of energy products and the reduction in subsidies
for domestic services.

But CFE director, Alfredo El”as Ayub, recognized that this year
only MXN4 billion (US$392 million) of the MXN5 billion (US$490
million) expected would be collected as a result of the reduction
in subsidies.

CONTACT:  COMISION FEDERAL DE ELECTRICIDAD
          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance


CINTRA: Issues Info Regarding Administration, Assets Sale
---------------------------------------------------------

The Board of Directors Cintra, S.A. de C.V. that met on the 24
and 25 of this month, resolved these issues:

1. Regarding the company management and its subsidiaries, the
Board recapitulated about the most important strategic
resolutions that have decided, recommended most of them by the
CEO's of the airlines. Particularly, stand out decisions about:

a) Fleet modernization

b) Restructure of the financial debt

c) Moderate management of the cash flow, considering the crisis
that the worldwide aviation industry goes through.

d) Permanent reduction of costs, not affecting the security and
efficiency of the operations.

e) Adoption of a permanent jet fuel hedging program
f) Reduction of the administrative structure, to its minimal
corporate expression and importantly in the operative level.

2. With the implemented measures we have reached a financial and
operative stable status, that allows a sound functioning of the
airlines.

3. The companies of the Group will continue adopting the
necessary measures to guarantee a secure and efficient operation,
and maintain the leadership in its markets.

4. Regarding the sale process with the recommendation of Merrill
Lynch, it's financial advisor, the board of directors resolved
the following points:

a) The Board recognizes that in the short term there are not
appropriate conditions to carry out the sale process.

b) The Board resolved that the financial advisor and the company
will permanently oversee the relevant market, to detect the time
of appropriate conditions.

c) Conclude the preparation of the documentation to initiate the
process as soon as the conditions are proper.

5. Finally, the Board of Directors recognized the work done by
all the personnel, considering the current situation and
requested to CEO's, executives, pilots, flight attendants, ground
personnel and administrative employees to intensify their work to
pass the unfavorable environment and guarantee the job sources.

CONTACT:  CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 Mexico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 Mexico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx


GRUPO IUSACELL: At Risk Of Delisting From NYSE
----------------------------------------------
Iusacell's share value has now dropped more than 80%. According
to Mexico City daily El Universal, the stock on Thursday ended at
US$0.70 and faces delisting from the New York Stock Exchange if
the price does not reach at least one dollar in the next six
months.

Carlos Espinal, new director general of Iusacell, tried to make a
move in August to prevent the Company's shares from slipping.
Espinal reportedly met with few analysts who still cover the
shares of what was once the second-largest mobile telephone
company in the country.

The executive revealed plans to reduce operating costs, lower
infrastructure investment and focus on large consumers. This
year, investments will be cut from US$250 million to US$130
million. Staff will also be dismissed to lower costs. Up to last
September redundancies numbered 842, which is more than 30% of
the total labor force.

However, analysts remain unconvinced. They believe that
Iusacell's problems are worsening because more competitors have
entered the market, controlling stockholders Verizon and Vodafone
have given it less attention and because of the firm's
inconsistent business strategy.

Grupo Iusacell, S.A. de C.V. is a wireless cellular and PCS
service provider in seven of Mexico's nine regions, including
Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla,
Leon and Merida. The Company's service regions encompass a total
of approximately 91 million POPs, representing approximately 90%
of the country's total population.

To see financial statements:
http://bankrupt.com/misc/Grupo_Iusacell.htm

    Investor Contacts:
    Russell A. Olson
    Chief Financial Officer
    011-5255-5109-5751
    russell.olson@iusacell.com.mx

    Carlos J. Moctezuma
    Manager, Investor Relations
    011-5255-5109-5780
    carlos.moctezuma@iusacell.com.mx


MAXCOM TELECOMUNICACIONES: Clarifies 2003 EBITDA Guidance
---------------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based
telecommunications provider (CLEC) using a "smart build" approach
to focus on small - and medium -sized businesses and residential
customers in the Mexican territory, made the following
announcements Friday:

On the Third Quarter Results Conference Call held two days ago,
management gave some guidance for 2003: Revenues of $80 to $90
million and EBITDA of $15 to $18 million dollars. These numbers
corresponded to a scenario where management assumed additional
financial resources of $25 to $30 million dollars for 2003. As
the Company informed also on the call, it is currently working
with a zero-funding scenario for next year, where Revenues are
expected between $70 and $75 million dollars and EBITDA of $8 to
$10 million dollars.

Additionally, Maxcom announced that effective November 2002, the
Company is offering dial tone in the City of Queretaro. Company
facilities are ready and working, all tests and interconnection
issues have been successfully concluded. Maxcom already built a
3,000-line cluster, where 850 lines are now in service.

The Company also announced the attainment of the ISO 9002
certification. The Multinational Auditor SGS issued, on October
10, their recommendation to grant Maxcom the certification, which
was obtained on October 25. The scope of this certification is
for the sale of residential and business telecommunications
services, from the sale to the delivery of the service.

Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile connectivity
to small- and medium-sized businesses and residential customers
in the Mexican territory. Maxcom launched commercial operations
in May 1999 and is currently offering local, long distance and
data services in Mexico City and the Cities of Puebla and
Queretaro.

CONTACT:  MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
          Mexico City, Mexico
          Jose-Antonio Solbes
          (5255) 5147-1125
          investor.relations@maxcom.com

          CITIGATE FINANCIAL INTELLIGENCE
          New York, NY
          Lucia Domville
          (212) 419-4166
          lucia.domville@citigatefi.com


SATMEX: Seeks Consent On Notes' Insurance Waiver
------------------------------------------------
Satelites Mexicanos, S.A. de C.V. ("Satmex") announced Friday
that it intends to launch on Monday, November 4, 2002, a consent
solicitation to the holders of its 101/8% Senior Notes due 2004
(the "Fixed Rate Notes") seeking a majority of such holders'
consent to amend the insurance covenant contained in the
indenture governing the Fixed Rate Notes to conform the insurance
requirements under that indenture to insurance coverage currently
available on commercially reasonable terms in the space insurance
market. Concurrently with the consent solicitation, Satmex
intends to launch a solicitation seeking a waiver from the
majority of the holders of its Senior Secured Floating Rate Notes
due 2004 (the "Floating Rate Notes") of the covenant in the
indenture governing the Floating Rate Notes that restricts
Satmex's ability to amend the insurance covenant in the Fixed
Rate Note indenture. As a condition to the amendment, Satmex will
also need to obtain a waiver from the majority of the lenders
under its revolving credit facility.

"Satmex management has been working diligently to obtain the most
attractive terms available in the space insurance market for the
upcoming Solidaridad 2 in-orbit policy renewal.  I am confident
that our investors and lenders will recognize the progress that
we have made and will support us with the requisite consents,"
said Lauro Gonzalez, chief executive officer of the company.

Satmex, a leading satellite operator in the Americas, owns and
operates a satellite system through which it offers broadcast,
telephone and telecommunications services to 39 countries in the
region. The Satmex fleet also helps develop rural areas by
offering distance learning and rural telephony services. And,
through its business partners in the NAFTA region and Latin
America, Satmex provides high-speed connectivity to ISPs and
Digital Broadcast Services (DBS), thus contributing to the
integration of Latin America with the rest of the Continent.
Satmex is ISO 9001 certified.

Satmex is a member of the Loral Global Alliance and offers its
customers the advantages of a worldwide network of satellite
capacity, providing global satellite solutions to the needs and
requirements of the Americas. For more information, please visit
the Satmex website at www.satmex.com.

CONTACTS:  SATELITES MEXICANOS, S.A. DE C.V.
           Kristi King Etchberger
           Tel. 011-52-55-5201-0804
           Web site:  http://www.satmex.com


SATMEX: Moody's Cuts Credit Ratings
-----------------------------------
Moody's Investors Service downgraded the ratings of Satelites
Mexicanos SA, a Mexican unit of U.S. satellite company Loral
Space & Communications Ltd.. The ratings affected are:
(Downgraded To/From)

- Senior Implied Rating                    Caa3         B2
- Senior Unsecured Issuer Rating           Ca           B3
- Senior Secured Floating Rate Notes
    due 2004                               B3           B1
- Senior Secured Revolving Credit
    Facility due 2002                      B3           B1
- 10.125% Senior Unsecured Notes
    due 2004                               Ca           B3

The rating outlook continues to be negative pending the
resolution of refinancing needs of the company over the forward
rating horizon.

Moody's lowered the ratings on concerns Satmex won't be able to
meet payments on about US$560 million debt.

Satmex has seen a slump on the demand for its services due to
Mexico's weak economic growth

"Weak fundamentals of the fixed satellite services industry, as
compounded by continued economic uncertainty both domestically
and in Mexico, have exacerbated the refinancing concerns,"
Moody's
said, adding all the Company's debt is due in the second half of
2004.

Satmex is a fixed satellite services company that leases
satellite transponder capacity for the transmission of video,
telecommunications and data to broadcast companies,
telecommunication firms and private corporations in Mexico, the
United States and throughout Latin America.

New York
Russell Solomon
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Marcus C. Jones
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


SUGAR REFINERIES: Judge Orders Injunction on Sugar-Mill Seizure
---------------------------------------------------------------
Mexico's Agriculture Ministry disclosed that a federal court
overturned President Vicente Fox's decree to expropriate 27
failing sugar mills last year, reports Mexico City daily Reforma.
Federal Judge Luz Maria Diaz issued an injunction on Thursday
after finding fault in the way the government nationalized the
Consorcio Azucarero Escorpion (Caze) consortium's 10 refineries.

According to the judge, the government didn't demonstrate
sufficient cause for the expropriation and didn't have enough
technical studies on the action, which was intended to save the
mills. The administration plans to appeal the ruling and has 10
days to make the appeal.

"The federal government maintains that the expropriation is the
necessary and correct measure," the ministry said in a statement,
according to the paper. "The verdict doesn't in any way imply the
cancellation of the expropriation decree or the return of the
mills."

Mexico's sugar refining industry, which is the world's eighth
largest, has been struggling in the past two years. Low market
prices and unpaid debts compounded by a restriction on exports to
the United States have forced many of the plants into bankruptcy.



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

BWIA: Stock Sinks to Record Low Over Revenue Concerns
-----------------------------------------------------
Shares of embattled airline British West Indies Airways (BWIA)
had lost 67 percent of its value since its Initial Public
Offering (IPO), marking a new record low. BWIA shares went down
to US$2.60 from US$7.85 in the Trinidad and Tobago Stock Exchange
within 20 months. Market capitalization also fell to TT370
million from TT370 million, reports local paper The Trinidad
Guardian.

According to the report, the price reduction was a result of
declining revenues following the load reduction since the Sept 11
attacks. A squabble between some pilots and the management
contributed to revenue loss in the peak period.

BWIA's IPO came at US$1.25 per share. Price/Earnings multiple was
16 - much higher than the average 12.2 in the market. Of the 12
million shares offered, 7.2 million were picked up. Some
investors thought that shares were overvalued.

Most of the price decline came during the first six months of the
offering. The stock dropped another 7 percent this year, making a
new record low.

CONTACT:  British 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, CFO (Trinidad)


BWIA: Execs Say BWIA Will Survive Current Turbulence
----------------------------------------------------
BWIA chairman Lawrence Duprey predicts the airline would survive
the ongoing slump; despite earlier reports indicating BWIA would
go to receivership. In a report from The Caribbean Investor,
Duprey said that the financial problems BWIA is facing will be
resolved as the management had hinted that it will not shy from
adverse decisions in ensuring the airline's viability.

Duprey added that BWIA will have to abandon old practices and use
new strategies to keep it competitive in the market. The
airline's Chief Executive Officer Conrad Aleong said that they
have achieved almost 85 percent of the goal of saving US$1
million per month.

He added that they have formulated "fall-back plans", but the
said plans are not employee-friendly. However, Aleong said that
the plans have to be imposed should the need arises.

"Management's job is to save the airline," he said adding that
management would do "whatever is required to save BWIA."

Aleong told reporters that the airline had "very strong" bookings
for Thanksgiving Holidays in the United States and that Christmas
booking was "strong as well."

Last Thursday was the deadline for the employees to accept the
proposed concessions they have to follow to keep BWIA alive. The
employees did accept the said concessions, but asked the
executives to "do their part", as the executives' pay cut would
not really affect them, as tax adjustment would even out the
supposed cut.

The employees' agreement to the plan comes with the condition
that all moves must be practicable and within the laws of
Trinidad and Tobago.

According to Aleong, BWIA pilots had agreed to a three percent
salary cut. He also expressed hope that talks with the government
would result in a loan for the airline.


BWIA/LIAT/AIR JAMAICA: Prime Minister Seeks One Regional Airline
----------------------------------------------------------------
Trinidad and Tobago Prime Minister Patrick Manning called for a
single regional airline Friday, as the region's major airlines
BWIA, LIAT and Air JAMAICA are facing heavy losses, reports The
Trinidad Express. Recent difficulties in the airline business had
shown need for the Caribbean islands to come together and form a
single regional air bridge, said Manning, citing the September 11
attacks started the decline in the industry.

He added that the single air bridge is necessary for the
development of the Caribbean single market and economy. Mr.
Manning also said that he has started the process of consultation
to obtain the needed approval from the other nations concerned.

The Prime Minister of Jamaica, on the forefront of promoting the
creation of a single regional airline said that he would support
the idea, despite Jamaica's minority shareholder position in its
national airline.

CONTACT:  Air Jamaica
          4 St. Lucia Avenue
          Kingston 5,
          Jamaica
          Tel No. 876/922-3460
          Fax /929-5643
          Email: webinfo@airjamaica.com
          Contact:
          Gordon Stewart, Chairman
          Allen Chastanet, Vice President for Marketing and Sales



               ***********


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
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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.


* * * End of Transmission * * *