TCRLA_Public/021108.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

           Friday, November 8, 2002, Vol. 3, Issue 222


A N T I G U A   &   B A R B U D A

LIAT: Outlines Recapitalization, Fleet Changes
LIAT: CEO Voices Frustrations About Caribbean Star


AOL LATIN AMERICA: NASDAQ Approves Conditional Listing
PEREZ COMPANC: Better 3Q02 Sales Eclipsed By Continued Losses


MRM: Restructuring To Form New Company
TYCO INTERNATIONAL: Two Prior Directors May Stay


BANCO SUDAMERIS: Analysts Doubt Itau's Ongoing Commitment
CSN: New Water Consumption Fees Start Next Year
KLABIN: Analysts Suggest Asset Sale To Cover Debt Payments
SEAHAWK MINERALS: Top Execs Resign Amid Financial Struggles
* Sao Paulo To Skip BRL3.05 Billion Federal Debt Payment


EDELNOR: Tractebel, Codelco Wrap Up 82.3% Stake Purchase
MANQUEHUE NET: National Grid Makes Formal Departure


CHN/BANEJER: Undertakes Merger To Improve Ailing Conditions


GEOMAQUE EXPLORATIONS: Weather, Machinery Hampers 3Q02 Results


COPAMEX: Fitch Drops Ratings To 'BB-` Over Protection Concerns
HYLSAMEX: Analyzing Hylsa Unit's Role In Debt Reduction Options
GRUPO MEXICO: Proposes Talks With Striking Workers
GRUPO MEXICO: Asarco Seeks DOJ Nod To Sell SPCC
IUSACELL: Announces Intent to Restructure Debts


AES PANAMA: Wins Another Contract From Elektra


ANDE: Initiates Steps To Address Financial Problems

T R I N I D A D   &   T O B A G O

BWIA: Nears Target Savings, Union Agrees To Concessions

     - - - - - - - - - -

A N T I G U A   &   B A R B U D A

LIAT: Outlines Recapitalization, Fleet Changes
Facing a November 15 deadline to present a revised business plan,
LIAT has considered some significant operational changes to
include in the plan. The drastic measures are being taken in
order to avail itself of the US$9 million bail-out fund to be
guaranteed by regional governments.

LIAT Chairman Wilbur Harrington has revealed some parts of the
plan including the replacement of the airline's 37-seat, turbo-
prop Dash 8's with a 50-seater aircraft. He added that a jet is
also a possible addition to the fleet.

Local paper The Antigua Sun quoted Harrington's statement at a
news conference Tuesday: "We need to re-equip. We need necessary
funds for working capital as well as to assist us with re-
equipping.once we get rid of the predatory pricing, then we could
budget seriously as to what our costs are, what our revenues are,
what we need to do and what we need not to do."

"What we do need is an immediate injection of funds to continue
the re-equipping programme. The first phase calls for about US$8
million..that is to get us up to speed and the second phase is
about another US$15 million that would assist us in bringing the
new LIAT that we are projecting," said Harrigan.

Harrinton also disclosed the possibility of entering a joint
venture with a major financier, which he refused to name, from
outside the region.

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
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing

LIAT: CEO Voices Frustrations About Caribbean Star
LIAT Chief Executive Officer Gary Cullen lashed out at the
airline's competition, Caribbean Star, for rejecting LIAT's
efforts toward a dialogue. According to Mr. Cullen, he has
personally made every effort to obtain cooperation with the rival
airline through its executives, reports The Barbados Nation.

In a press conference, Tuesday, Mr. Cullen said, "Caribbean Star
has some excellent pilots and engineers. They have a lot of good
people. I have a quarrel with their owner, with their CEO, and
one or two of their other senior executives, because of the way
they do business. I don't like it."

Liat's CEO added that he hopes Caribbean Star owner, billionaire
Allan Stanford, will move toward an understanding in fair
competition, and have a civilized working relationship with

The Caricom has created a commission, headed by Trinidad and
Tobago, to resolve the alleged predatory pricing practices in the
routes LIAT share with the Caribbean Star. Predatory pricing is
cited as one of the problems slowly choking LIAT.

Furthermore, Mr. Cullen questioned the media for failing to
inquire about year two funding after Caribbean Star managed to
withstand a US$30 million loss in Year 1. He remains suspicious
as to why they can have a plan for five years before the airline
can be profitable.

          Coolidge Industrial Estate
          P.O. Box 1628W,
          Airport Road,
          St. John's, Antigua West Indies
          Tel. 1 (268) 480-2500
          Paul Moreira, Chief Executive Officer
          Sandra Scotland, Director of Marketing


AOL LATIN AMERICA: NASDAQ Approves Conditional Listing
America Online Latin America, Inc. (NASDAQ-SCM:AOLA) announced
Wednesday that the NASDAQ Listing Qualifications Panel has
granted the Company's request for an exception from the $35
million market capitalization requirement for continued listing
of the Company's class A common stock on the NASDAQ SmallCap

The Company noted its closing bid price of $0.70 on November 5,
2002 resulted in a market capitalization of $47 million of listed
securities. Given that the market capitalization exceeded $40
million, under the terms of the previously announced preferred
stock conversion agreement, America Online, Inc. and the Cisneros
Group of Companies will not be required to convert any preferred
stock to class A common stock.

Commencing on November 7, 2002, AOL Latin America will begin
a conditional listing period. During this time, the Company must
comply with the $35 million market capitalization requirement for
10 consecutive trading days, as well as come into compliance with
the minimum bid price requirement of $1.00 for a minimum of
10 consecutive trading days, commencing no later than January 13,
2003. There can be no assurances that the Company will be able to
meet these conditions. The Company intends to seek stockholder
approval to implement, if necessary, a reverse stock-split in an
effort to gain compliance with the minimum bid price requirement.

At the start of trading on November 7, 2002, AOL Latin America's
trading symbol "AOLA" will have a "C" ("AOLAC") after it,
denoting its conditional listing. If the Company is in compliance
with the requirements after the conditional listing period is
over, its trading symbol will again return to AOLA. Furthermore,
if the Company is in compliance with these two requirements
before January 27, 2003, it can petition to be removed from
conditional listing.

In the event that the Company does not satisfy the market
capitalization or the minimum bid price requirements during the
conditional listing period, AOL Latin America expects that its
class A common stock will then trade on the Over-the-Counter
Bulletin Board (OTCBB). The OTCBB is a regulated quotation
service that displays real-time quotes, last-sales prices, and
volume information for more than 3,600 equity securities.

About AOL Latin America

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

          Financial Community
          Monique Skruzny, 954/689-3256

          News Media
          Fernando Figueredo, 954/689-3256

PEREZ COMPANC: Better 3Q02 Sales Eclipsed By Continued Losses
Perez Companc S.A. (Buenos Aires: PC NYSE: PC), controlling
shareholder with a 98.21% stake in Pecom EnergĦa S.A. (Buenos
Aires: PECO), announces both companies' results for the third
quarter ended September 30, 2002.

- Perez Companc S.A. (whose only asset is its equity interest in
Pecom EnergĦa S.A.) posted a loss of P$47 million (P$0.022 per
share and P$0.22 per ADS) for the third quarter of 2002.
- Pecom EnergĦa S.A. posted a loss of P$53 million in the third
quarter of 2002.
- Pecom EnergĦa S.A.'s P$53 million loss for 2002 quarter was
mainly attributable to the following non-operating results:
- A P$ 288 million negative exchange difference for
depesification of the debt related to the acquisition of a 10%
interest in Distrilec Inversora S.A. Upon debt maturity, in June
2002, the Company and the counterparty put forward opposing
interpretations as to the application of conversion into pesos
measures to such debt. As of September 30, 2002, the Company
recorded the debt according to the new elements provided during
the course of the mediation process.
- A P$120 million loss resulting from a reduction in the forestry
business book value.
- A P$38 million loss resulting from assignment of 50% of the
exploratory rights to the San Carlos and Tinaco fields in
- A P$31 million loss for contingencies related to the OCP
contractual commitments (Ecuador) in relation to the future
production of Block 31, in Ecuador, derived from delays in the
area development plan on account of a global reduction in the
Company's investment plan.
- The losses mentioned above were partially offset by the gains
resulting from divestment of Cerro Vanguardia and the farming
business in the amount of P$123 million and P$27 million,
- Pecom EnergĦa's net sales increased to P$1,167 million or 24.3%
in 2002 third quarter from P$ 939 million in 2001 third quarter.
- Pecom EnergĦa's gross profit increased to P$444 million or
37.9% in 2002 quarter compared to P$322 million in 2001 quarter.
- Pecom EnergĦa's operating income for 2002 quarter amounted to
P$331 million, P$1 million lower than income recorded in 2001
- Capital expenditures and contributions to affiliates amounted
to P$158 million in 2002 quarter compared to P$422 million in
2001 quarter.


Net sales increased to P$1,167 million or 24.3%, primarily due to
the significant rise in the price of the main commodities. In the
prevailing inflationary scenario, the price of the main products
significantly increased in real terms on the basis of a dollar-
denominated contribution from foreign operations and the
alignment of domestic prices with export reference prices. In
such respect, in 2002 quarter, the price of crude oil, styrene
and polystyrene increased 54.3%, 100.2% and 47.4%, respectively.
During this quarter, through the implementation of an active
export-directed trade policy, the domestic recessive market
limitations were successfully offset. In 2002 quarter, sales for
the Oil and Gas Exploration and Production business segment
increased P$171 million before eliminations for inter-company
sales, and sales for the Petrochemical and Refining business
segments increased P$94 million and P$127 million, respectively.
In contrast, sales revenues from the Electricity segment
decreased P$22 million.


Gross profit increased to P$444 million or 37.9% in 2002 quarter,
mainly as a result of the increase in the Oil and Gas Exploration
and Production business segment (P$66 million) and in the
Petrochemicals business segment (P$66 million), attributable to
increased marketing margins in terms of pesos as a result of the
peso devaluation.

Equity in Operating Earnings of Affiliates

The main changes are detailed in each business segment the
different affiliates are grouped into.

Other Income Net

In 2002 quarter, losses were primarily attributable to the

- Reduction in value of the Forestry business accounting for a
P$120 million loss.
- Reduction in value of the San Carlos area accounting for a P$38
million loss.
- P$31 million loss for contingencies related to the Heavy Crude
Oil Pipeline (OCP) contractual commitments.
- P$9 million for tax on banking transactions.
- P$123 million gain from the sale of Cerro Vanguardia S.A.
- P$27 million gain from the sale of the farming business.

In 2001 quarter, losses were primarily attributable to the
reduction in value of assets in the Pampa del Castillo-La
Guitarra oil field in the amount of P$66 million.

Equity in Non-operating Earnings of Affiliates

Equity in non-operating earnings of affiliates accounted for a
P$119 million gain in 2002 quarter, which includes equity in
operating earnings of TGS and Citelec in the amount of P$6
million and P$17 million, respectively. Excluding such effect,
equity in non-operating earnings of affiliates accounted for a
P$96 million gain, primarily determined by adjustment to
inflation generated by the significant net borrowing monetary
positions of such companies and the respective exchange
differences on such monetary positions, which differences were
positive in 2002 quarter due to the exchange rate appreciation,
the significance of which offset the impact of related financial
costs. In 2001 quarter, equity in non-operating earnings of
affiliates recorded a P$73 million loss, determined by the impact
of the respective financial liabilities and income tax.

Financial income (expenses) and Holding gains (losses)

Financial income (expenses) and holding gains (losses) increased
P$297 million, amounting to a P$418 million loss, primarily
attributable to:

- A P$279 million gain for exchange differences resulting from
the effect of the peso revaluation on the foreign currency
borrowing monetary net position.
- A P$1,447 million loss as a result of conversion and
- A P$951 million gain for exposure to inflation generated by the
significant borrowing monetary position.
- P$165 million for net interest.


During the last 12 months, total assets increased P$1,046 million
or 7.5%. Total assets as of September 30, 2002, comprise fixed
assets (64%) and equity interest in companies (13.4%).
Total liabilities increased P$2,481 million. Liabilities as of
September 30, 2002 amount to P$9,878 million, 86.6% of which are
financial liabilities.


- Net sales increased to P$711 million or 31.7% in 2002 quarter,
primarily due to higher sales prices resulting from the peso

Combined sales of oil and gas declined to 176.0 thousand BOE/d or
8.6% in 2002 quarter. Oil sales volumes declined to 121 thousand
bbls/d or 7.2% in 2002 quarter. Gas sales volumes declined to 330
million cubic feet per day or 11.5 % in 2002 quarter.

- In Argentina, sales increased to P$434 million or 29.6%. This
increase primarily results from a 63% rise in sales prices,
partially offset by a 9.4% decline in sales volumes which
amounted to 63.0 thousand bbls/d. The 2001 quarter includes sales
attributable to Pampa del Castillo - La Guitarra oil field which
was sold in October 2001. Excluding Pampa del Castillo - La
Guitarra, sales volumes increased 4.0% in 2002 quarter compared
to 2001 quarter.
As regards the increase in the price per oil barrel, by taking
export parity as a reference the effects of the strong peso
devaluation could be passed through resulting in the recovery of
domestic market prices that had started in 2002 second quarter.
Tax on exports accounted for a P$29 million lower revenue in 2002
Natural gas sales revenues declined to P$43 million or 38%. The
daily volume of gas sold declined 14.7% due to the low level of
investments in gas areas. Sales prices declined to P$1.84 per
thousand cubic feet or 28.4%, in line with the Public Emergency
Law provisions which limit the possibility of increasing the
price of gas sold in the domestic market, in connection with
sales agreements entered into with utilities. Notwithstanding
that fact, the Company renegotiated the terms and conditions of
certain gas sales contracts, especially those executed with
exporting clients, adjusting the price of such contracts to the
new economic environment.

- Combined sales of oil and gas outside of Argentina increased to
P$277 million in 2002 quarter or 35.1%. Daily sales volumes of
oil and gas declined to 70.2 thousand BOE or 3.6%.
In Venezuela, sales of oil and gas increased to P$152 million or
9.3% in 2002 quarter. During 2002 quarter, the rate of royalties
in connection with third round contracts increased as a result of
disputes related to the new Hydrocarbons Law. Such royalties
increased from 16.7% to 30%, and those corresponding to the three
quarters of 2002 were recorded in 2002 third quarter accounting
for lower sales in the amount of P$32 million, awaiting the
closing of negotiations with PDVSA. The average price per barrel
of Venezuelan total production increased to P$36.7 or 19%. The
daily sales volume of oil equivalent declined to 50.1 thousand
barrels or 3.3% primarily attributable to the natural field
decline on account of reduced investments.
In Ecuador, the Company's production amounted to 0.8 thousand
barrels per day in 2002 quarter as a result of activities in
Block 18. Such production was delivered on consignment to
Petroecuador until approval of the Palo Azul field development

- Gross profit increased to P$298 million or 28.4% in 2002
quarter. Gross margin declined to 41.9% in 2002 quarter from
43.0% in 2001 quarter. During 2002 quarter, negotiations of rates
with service providers concluded. In some cases, retroactive
adjustments were recognized and resulted in a negative impact for
the quarter. Such adjustments also had a negative impact on
margins, provision for increased royalties related to the third
round areas in Venezuela and taxes on crude oil exports imposed
in Argentina. In addition, the peso devaluation had a positive
impact on foreign operations US dollar-denominated gross profit.

- The ratio of administrative and selling expenses to sales was
6% and 9% in 2002 and 2001 quarters, respectively.

- Exploration expenses increased P$15 million in 2002 quarter.
This was primarily attributable to completion of drillings of two
wells at exploration Block 35 in Peru and at Block 18 in Ecuador,
which did not prove to be successful.

- Equity in earnings of affiliates increased P$4 million in 2002
quarter, mainly as a result of equity in earnings of Petrolera
Perez Companc, which amounted to P$8 million in 2002 quarter and
P$4 million in 2001 quarter. This improvement is primarily due to
an increase in oil prices as a result of the peso devaluation.

- Other operating income recorded a P$16 million loss in 2002
quarter mainly attributable to an allowance for environmental

Hedge Of Produced Crude Oil Price

The Company, as a crude oil producer, is exposed to the related
price-fluctuation risk. In such conditions, the Company uses
various derivative instruments to mitigate such risk. These
instruments are based on West Texas Intermediate (WTI) as
reference price, which is used mainly to determine the sales
price in the market.

Income (loss) generated by such instruments, used to hedge crude
oil price, are deferred until the related foreseen transaction is
recognized and are recorded in the income statement as an
integral part of hedged sales.

As of September 30, 2002, the Company's oil hedge agreements for
year 2002 provide for hedging prices that change according to the
WTI actual price. The hedging volume is 45,500 bbl/d. For WTI
prices below 15 US$/bbl, the hedging price is 15.97 US$/bbl,
while for WTI prices equal to or above 15 US$/bbl and equal to or
below 23 US$/bbl, the hedging price is 17.36 US$/bbl. For WTI
prices of 24 US$/bbl, the hedging price is 17.84 US$/bbl. For WTI
prices of 25 US$/bbl, the hedging price is 18.55 US$/bbl. For WTI
prices above 25 US$/bbl, the hedging price increases US$1 per
each dollar of WTI price increase. Premiums paid were distributed
among hedging prices.

For the year 2003, option agreements provide a more flexible
structure. For WTI prices below 20 US$/bbl, the hedging price is
19.52 US$/bbl and the hedging volume amounts to 17,500 bbl/d. For
WTI prices equal or above 20 US$/bbl and below 21 US$/bbl, the
hedging price is 19.44 US$/bbl and the hedging volume falls to
15,000 bbl/d. For WTI prices equal or above 21 US$/bbl and below
or equal to 27 US$/bbl, the hedging price is 18.65 US$/bbl and
the hedging volume falls to 10,000 bbl/d. For WTI prices above 27
US$/bbl, the hedging volume is 17,500 bbl/d and the hedging price
is 22.31 US$/bbl. Premiums paid were distributed among reported
hedging prices. In addition to the above price hedging, during
2002 the Company closed out positions for a total of 67,500
bbl/d, which volume will be sold at market price and at a 1.42
US$/bbl discount. In such respect, the Company paid an aggregate
amount of 118, accounting for a deferred loss to be recorded as
reduced sales in 2003.

For the January 2004-December 2005 period, the Company carries
sold options for a volume of about 18.3 million barrels (an
average of 25.000 bbl/d) at an average exercise price of 19.87


- Operating income amounted to P$11 million in 2002 quarter while
no operating results were reported in 2001 quarter. In 2002
performance of this business segment was significantly affected
by the economic crisis and the severe currency devaluation that
resulted in a sharp shrinkage in domestic demand in addition to
the impossibility of protecting business margins on account of
measures adopted by the Argentine Government to prevent a price
increase and ensure supply. Increased operating income results
from equity in earnings of affiliates. During 2002 quarter, crude
oil volumes processed increased 32.9% to an average of 32,226

- Net sales of refinery products increased 49.2% to P$285 million
in 2002 quarter boosted by increased local prices and export
volumes. Total sales volumes increased 13.4% in 2002 quarter
mainly due to a significant 149% increase in exports, partially
offset by reduced local sales (11%) on account of a domestic
market shrinkage and the lack of profitability.
Gasoline sales volumes increased 32% as a result of increased
retail sales and diesel oil sales volumes increased 8% on account
of increased exports. In addition, sales volumes of heavy
products and aromatics increased 93% and 10%, respectively.
In order to mitigate the shrinkage in the domestic market and low
prices in diesel oil used for transportation, the trade policy
was directed to local sales of products with higher margins and
to export markets. Along these lines, a significant increase was
recorded in export volumes: diesel oil 509%, mainly to bordering
countries; heavy products 470% to the USA and bordering
countries, and asphalt products 113% to Paraguay.

- Gross profit dropped 28.6% to P$10 million. Gross margin
decreased from 7.3% in 2001 quarter to 3.5% in 2002 quarter.
Express initiatives of the Argentine Government and the gradual
drop in the activity level could curb the passing through of the
increase in crude oil costs to sales prices. In 2002 quarter, the
average price of crude oil increased 42.5% to P$88.4/bbl mainly
as a result of the peso devaluation while international prices
increased 6%. As a consequence of crude oil cost behavior and
international price behavior of other products, sales prices of
the following products increased as follows: diesel oil 22%,
gasoline 16%, benzene 200%, heavy products 57%, aromatics 31%,
paraffins 80%, medium distillates 33% and asphalts 36%.

- Equity in operating earnings of affiliates increased P$12
million to P$16 million due to the following:

- Equity in earnings of RefinerĦa del Norte increased to P$10
million in 2002 quarter from P$2 million in 2001 quarter, mainly
due to an increase in marketing margins boosted by a 10% increase
in LPG sales volumes, 18% and 28% increases in LPG local prices
and fuels, respectively, and mainly a 101% increase in export
prices capitalizing on the peso devaluation.

- Equity in earnings of EBR increased to P$ 6 million in 2002
quarter from P$2 million in 2001 quarter mainly derived from an
increased interest and the impact of the peso devaluation.


- Operating income for the Petrochemicals business segment
increased P$67 million to P$88 million in 2002 quarter, primarily
due to higher sales prices of styrenics resulting from the
combined effect of the peso devaluation and higher international
prices. Consequently, the improved international price of urea
allowed an increase in local prices for the fertilizers line,
additionally benefited by a reduced increase in input costs.

- Sales of styrenics in Argentina increased 48% to P$36 million.
In 2002 quarter, the price of styrene and polystyrene
significantly rose by 100.2% and 47.4%, respectively, as a
consequence of the combined effect of the peso devaluation and a
rise in international reference prices (66% and 38%,
respectively). Average price of rubber increased 34.1%. The
implementation of an active trade policy aimed at consolidating
foreign markets allowed to mitigate the restrictions imposed by
the domestic demand affected by low consumption levels.
Styrene and polystyrene sales volumes dropped 5.9% and 4%,
respectively during 2002 quarter, partially offset by a 13%
increase in polystyrene exports mainly to Europe. This allowed to
mitigate a 16% sales drop in the domestic market. Total rubber
sales volumes increased 4.6%. Export volumes mainly to Brazil and
Peru amounted to 76.3% on sales and increased 26% offsetting a
29% drop in the domestic market, due to increased competitive
imports attributable to improved financing conditions.
Fertilizers sales volumes increased 21% to P$98 million, mainly
boosted by price increases and the passing through of higher
costs as a consequence of the peso devaluation. Along these
lines, sales average prices increased 39.7% in 2002 quarter.
Total sales volumes dropped approximately 10% in 2002 quarter due
to a reduction in fertilizers consumption which was quite
significant at the beginning of the period under review,
specially in the wheat sowing area. This resulted in a 57% drop
in resale fertilizers sales, offset by a 37% increase in sales of
fertilizers produced by the Company.

In Brazil, Innova sales for 2002 quarter increased to P$146
million or 111.5%. Styrene and polystyrene sales prices rose 136%
and 78%, respectively, as a result of the peso devaluation in
addition to improved international prices. Styrene sales volumes
in the Brazilian market increased about 6% as a result of the
development of new customers. Polystyrene sales volumes increased
to 26.5 thousand tons or 7%, boosted by increased export volumes
that rose to 5 thousand tons or 132%, mainly to the USA, South
Africa, Ecuador and Hong Kong.

- Gross profit increased to P$111 million or 146% in 2002
quarter. Gross margin increased to 32% in 2002 quarter from 20%
in 2001 quarter. The styrenics business both in Argentina and
Brazil was favorably affected by increased international margins
compared to previous year.

- Equity in operating earnings of affiliates increased P$3
million to P$4 million attributable to equity in earnings of
PetroquĦmica Cuyo. This improvement results from increased
polypropylene marketing margins and from a change in the mix of
domestic and export sales since exports increased to 52% on sales
in 2002 quarter from 19% in 2001 quarter.

Comercializaci˘n Hydrocarbon Marketing and Transportation

- Net sales in 2002 quarter dropped P$21 million to P$3 million
due to a reformulation of the liquid processing business. Oil,
gas and LPG brokerage operations decreased to P$3 million in 2002
quarter from P$11 million in 2001 quarter mainly due to
conversion into pesos of gas operations and a drop in oil
operations volumes, partially offset by improved prices since it
is a commodity marketed in dollars. In addition, 2001 quarter
includes a P$13 million income from gas processing activities (a
total volume of 29,600 tons). As from 2002, liquid processing
activities are developed by the Oil and Gas Exploration and
Production business unit.

- Equity in operating earnings of affiliates dropped P$65 million
to P$2 million, due to the following:

- Income from direct and indirect interest in CIESA and TGS
recorded a P$60 million gain in 2001 quarter while no operating
results were reported in 2002 quarter.

- Equity in earnings of Oldelval S.A. decreased to P$2 million in
2002 quarter from P$5 million in 2001 quarter, mainly due to the
combined effect of reduced prices and a reduction of
approximately 3% in volumes transported. Though as from June 2002
Oldelval renegotiated transportation agreements with oil
producers with a partial recognition of the peso devaluation
effects, prices in constant pesos decreased 22%.


- Net sales of electricity generation decreased to P$46 million
or 19.3% in 2002 quarter.
Net sales attributable to the Genelba Power Plant dropped to P$38
million or 9.5% in 2002 quarter due to the effects of
pesification that reduced to P$34.7 per MWh or 27.1% in constant
pesos the average price of energy and power delivered in 2002
quarter from P$ 47.6 per MWh in 2001 quarter. Conversely, in 2002
quarter energy delivered increased 21.3% to 1,082 Gwh due to an
improvement in the plant's availability factor to 61.4% in 2002
quarter from 48.3% in 2001 quarter. This was mainly attributable
to the high water supply in the Comahue region in both quarters
and in Salto Grande in 2001 quarter which resulted in the power
plant coming out of dispatch.
In addition, 2001 quarter was also affected by the gas quota
which restricted generation. In spite of an about 1% drop in
energy demand, the Power Plant had increased power deliveries on
account of Genelba's improved costs compared to its competitors.
Net sales attributable to the Pichi Pic£n Leuf£ Complex dropped
to P$8 million or 46.7% as a consequence of the combined effect
of lower prices and a drop in energy generation to 310 GWh in
2002 quarter from 494 GWh in 2001 quarter. Improved volumes
during 2001 quarter were determined by the weather conditions
during such period, with an average water supply exceeding
historical averages. Average prices of energy in constant pesos
dropped to P$24.8 per MWh or 20% in 2002 quarter from P$31 per
MWh in 2001 quarter, primarily due to pesification, partially
offset by the application of area prices on account of
restrictions on the transportation capacity through the national
grid during 2001 quarter. In the period under review, a P$1
million accrual was recorded on account of the application of the
Energy Support Price Method.
Net sales of nuclear fuel elements and other products dropped to
P$11 million or 45% in 2002 quarter. During 2002 quarter this
activity was restricted on account of the shutdown of Atucha I
for technical reasons and reduced sales to Embalse nuclear power
plant, partially offset by increased sales of other products to
the foreign market.

- Gross profit for the generation business dropped to P$4 million
or 60%. Gross margin declined to 8.7% in 2002 quarter from 17.5%
in 2001 quarter, mainly affected by the distortions caused by
pesification within an inflationary context and a partially
dollarized cost structure.
Gross profit for the nuclear fuel elements and other products
business decreased to P$3 million or 66.7% in 2002 quarter. Gross
margin decreased to 27.3% in 2002 quarter from 45% in 2001
quarter, mainly due to a higher impact of fixed costs on account
of the drop in sales volumes in 2002 period, partly offset by
improved margins from exports of other products.

- Equity in earnings of affiliates decreased P$42 million during
2002 quarter, and recorded a P$2 million loss due to the

- Equity in operating earnings of Distrilec Inversora S.A
accounted for a P$3 million loss during 2002 quarter compared to
a P$23 million gain in 2001 quarter. This significant drop
resulted from tariff pesification which resulted in a reduction
in income and expenses for the period under review in constant
currency while depreciation level remained unchanged. Sales
revenues from Edesur S.A. dropped 53.7% to P$228 million in 2002
quarter from P$492 million in 2001 quarter, mainly as a result of
an about 53% decline in average sales prices in constant currency
derived from the beforementioned pesification, and a 1.3%
shrinkage in the demand for energy supplied by Edesur S.A..

- Equity in earnings of Citelec accounted for a P$15 million gain
during 2001 quarter while no operating results were reported
during 2002 quarter.


- Income from the forestry activity increased to P$19 million or
46.2% in 2002 quarter. These improvement results from the
combined effect of a 15% rise in sales volume and increased
export operations. Exports volumes rose from 24% on sales in 2001
quarter to 48% in 2002 quarter, derived from the improvement in
international competitiveness as a result of devaluation.
Income from the farming business for 2002 quarter includes
results until August when such business was sold to Argentina
Farmland Investors LLC. Therefore, sales revenues decreased P$4
million to P$8 million.

- Equity in earnings of affiliates recorded a P$16 million gain
in 2001 quarter and no results were recorded in 2002 quarter due
to the following:

In 2001 quarter, equity in earnings of Pecom Agra S.A. recorded a
P$8 million gain while no results were recorded in 2002 quarter
since such equity interest was transferred in March 2002 by means
of an asset swap with IRHE (Argentine Branch) and GENTISUR S.A..

- Equity in earnings of Cerro Vanguardia S.A. recorded a P$8
million gain in 2001 quarter while no results were recorded in
2002 quarter since such equity interest was sold in July 2002 to
the Anglogold group.

Pecom EnergĦa S.A., a company controlled by Perez Companc S.A.,
is a leading company in an important sector of the Argentine and
Latin American industry, including oil and gas production and
transportation, refining and petrochemicals, electricity
generation, transmission and distribution.

          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315


MRM: Restructuring To Form New Company
After announcing a boardroom clean recently, troubled Bermuda
insurer Mutual Risk Management (MRM) undergoes restructuring to
form a new viable company as a spin off from the salvaged
profitable parts of MRM. An article from The Bermuda Sun revealed
the new company would be called IAS Park Group. The new company
would stand as Bermuda's largest independent captive manager.

The restructuring also aims to have all MRM companies, including
IAS Park, move to former Bermuda Commercial Bank Building in 44
Church Street. David Ezekiel, new president and chief executive
officer of MRM would retain his position in the new company.

According to a report from The Royal Gazette, the restructuring
intends to see senior debt holders - with a principle debt of
US$235 million comprised of some US$131 million owing under MRM's
credit facility and US$104 million owing to debenture holders -
exchange debt for 80 percent stock of the new company. MRM is
expected to retain 20 percent holding in the new company.

IAS Park Group would have a staff of 300 worldwide, with 160 of
them in Bermuda, and would take on a "manageable" amount of debt
from MRM.

Meanwhile MRM, which is trading at 3.6 cents in the OTC Bulletin
Board will continue to exist until the legal battles of MRM's
Legion and Villanova subsidiaries are settled.

          P.O. Box HM 2064
          44 Church Street
          Hamilton HM HX
          Tel: (800) 772-0849 or (441) 295-5688
          Angus H. Ayliffe, Chief Financial Officer
          Fran Tucker, Investor Relations

          Legion Insurance Company (In Rehabilitation)
          Villanova Insurance Company (In Rehabilitation)
          Legion Indemnity Company
          One Logan Square
          Suite 1400
          Philadelphia, PA  19103
          Tel:   215.979.7879
          Fax:  215.963.1205
          Joseph M. Boyle, Acting President
          Paul Forbes, Senior Vice President - Underwriting
          Andrew Walsh, General Counsel
          Steve Zielinski, Senior Vice President - Claims
          Gregg Frederick, Senior Vice President - Reinsurance

TYCO INTERNATIONAL: Two Prior Directors May Stay
A proposal to retain two former members of the board of Tyco
International Ltd. could be presented in the Company meeting
scheduled for Friday, reports the Associated Press. Earlier, Tyco
had chosen to eliminate all members who the board who served
under the Company's indicted former CEO, Dennis Kozlowski.

Wendy Lane, one of Tyco's directors disclosed that outside
directors Richard Bodman and Michael Ashcroft could stay in the
board, should the proposal get approved.

According to Ms. Lane, the presence of the two would provide the
corporate and institutional memory needed to push the Company
forward, along with the majority of new directors. Mr. Ashcroft
and Mr. Bodin were selected to remain on the board because they
had lengthy service on the Tyco board and had critical business
experience, said Lane.

Mr. Ashcroft had proposed the motion for a mass resignation of
all the members of the board under Kozlowski, while Ms. Lane and
Bodin voted against it. Ashcroft voted in favor of the motion,
which was approved by an 8-3 vote.

Tyco is currently trying to gain investor confidence after
reports on the alleged embezzling done by former top executives.
Former CEO Kozlowski and former finance chief Mark Swartz were
charged of grand larceny and enterprise corruption, to which both
pleaded not guilty. Both are now out on bail, after some

         Corporate Office
         The Zurich Centre, Second Floor
         90 Pitts Bay Road
         Pembroke HM 08, Bermuda
         Phone: 441-292-8674
         Home Page:


BANCO SUDAMERIS: Analysts Doubt Itau's Ongoing Commitment
Analysts are skeptical that Banco Itau SA, Brazil's fourth-
largest bank, would keep its original commitment in its purchase
of Banco Sudameris Brasil SA, the Brazilian unit of the Italian
bank IntesaBci SpA, says Bloomberg.

"I have serious doubts whether Itau will keep its original
commitment in terms of timing and price," said Giacomo Chiorino,
a fund manager at Nuovi Investimenti in Biella, Italy, who sold
his IntesaBci shares Wednesday. "The price is high given the
situation in Brazil, and buying time will only help Itau."

IntesaBci agreed in March to sell the Brazilian unit to Itau for
US$1.44 billion. After examining Sudameris's books, Itau decided
it was worth less, Italian and Brazilian newspapers have
reported. The two banks are using a third party to determine the
final price, IntesaBci Chief Executive Officer Corrado Passera
said in October.

Itau President Roberto Setubal said Itau aims to close the
purchase of the unit by the end of this year.

"We are going through the steps which will take some more time,"
Setubal told analysts and journalists in a conference call in Sao
Paulo. "I believe the process will be concluded by the end of the

Milan-based IntesaBci is selling its Latin American businesses to
focus on improving profitability at home. Last month, it said it
would spend US$150 million to recapitalize its Argentine unit and
then give up control of it in a merger with Banco Patagonia SA, a
provincial lender in southern Argentina.

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

CSN: New Water Consumption Fees Start Next Year
Brazilian flat steel company CSN doesn't have to pay for the
water it consumes until next year, reports Business News
Americas. The committee for the Paraiba do Sul river basin
Ceivap, which is responsible for setting water rates in the
region where CSN operates its integrated steel mill in Volta
Redonda, was supposed to start charging fees this year. However,
lack of consensus among Ceivap's members forced the entity to
postpone charging for water taken directly from the river until
March 2003.

Proposed rates will vary from 0.008 to 0.02 reais per cu. m. of
water consumed, with discounts for those who treat the water
before pouring it back into the river. Currently the dollar is
worth BRL3.66.

Last month, CSN paid off US$65 million of US$140 million in debt,
and with the approval of four of the Company's creditors, would
roll over the remaining US$75 million. The operation left CSN
with US$700 million in cash putting it in a strong liquidity
position since it had no other liabilities maturing in the next
six months.

Despite the recent manuvers, earlier this week, Fitch downgraded
CSN's local currency debt rating from BBB- to BB+. The downgrade
"considers the continuing deterioration of the Brazilian
operational atmosphere, the weak outlook for domestic growth and
a contraction of foreign credit lines available to Brazilian
companies," the agency said in a statement.

The strong depreciation of the real and high interest rates have
increased pressure on local companies' ability to refinance
debts, Fitch said.

To see financial statements:

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

KLABIN: Analysts Suggest Asset Sale To Cover Debt Payments
Analysts recommended that it would be better for Brazilian paper
company Klabin S.A., which missed the principal payment on an
unrated US$50-million eurobond on the due date, November 4, 2002,
to sell some assets to raise cash to pay off its debt, than to
attempt renegotiatng the payment.

"Klabin cannot go into a year which could be volatile with a
noose around its neck, because it could get in trouble again,"
said Luiz Paulo Foggetti, an analyst at Fator Doria Atherino
brokerage. "The best thing is to sell assets.

The Company could sell its Riocell pulp plant for about US$400
million, or a factory in Basel for US$115 million, or a tissue
paper unit, which is worth about US$140 million, he said.

But despite the debt problems, analysts believe Klabin can
overcome its debt problems with the help of National Social and
Economic Development Bank (BNDES). At the end of Sep. 2002,
Klabin's debt totaled BRL3.2 billion, 67% of which is denominated
in foreign currency.

"Klabin is in good shape operationally and only needs to solve
that short term debt problem, which is very big for its size,"
said Clarissa Saldanha, an analyst at Banco Brascan.

BNDES and a group of private banks have agreed to buy debentures
from Klabin, the Company said without revealing the value of the
operation. Sources involved in the deal, however, said that BNDES
would commit BRL450 million (US$123 million), which, added to the
banks' contribution, would total some BRL1.2 billion -- enough to
cover the firm's 2002 debt payments.

Klabin had its local and foreign currency corporate credit rating
lowered by Standard & Poor's to "SD" or selective default, from
triple-C plus on Tuesday, a day after it missed payment on the
US$50-million Eurobond issue.

"The 'SD' rating indicates that, in Standard & Poor's view, the
missed payment does not imply general insolvency because the
Company continues to honor other types of debt," the rating
agency said in a statement.

CONTACT:  Ronald Seckelmann, Financial and IR Director
          Luiz Marciano Candalaft, IR Manager
          Tel: (55 11) 3225-4045

          Paulo Roberto Esteves
          Tel: (55 11) 3848-0887 Extension 205

SEAHAWK MINERALS: Top Execs Resign Amid Financial Struggles
Seahawk Minerals, which operates the Piteiras emerald project in
Minas Gerais, southeast Brazil, has seen its top officers depart
as the Company struggles to pay its debts. In a press release,
the Colorado-based gem producer announced the resignations of Mr.
Louis A. Lepry, Jr. as President and Director, and Mr. Hugues
Ouimet as Director, of the Company.

The Company also revealed in the release that a temporary Cease
Trade Order was placed on it by the B. C. Securities Commission
in September for failure to file an interim financial statement
for the six month period ended June 30, 2002.

Seahawk admitted it was unable to meet either its principal or
interest obligations on convertible debentures which matured at
the end of August 2002, and continues to be unable to meet its
obligations generally as they come due.

According to the Company, the assignee of the Debentureholders,
6014798 Canada Inc, has notified Seahawk that legal proceedings
have been initiated against the Company with respect to the
outstanding Convertible Debentures.

          P.O. Box 3556
          ENGLEWOOD, CO
          USA, 80155-3556
          Phone: +1 (303) 770-8505
          Fax: +1 (303) 770-9344

* Sao Paulo To Skip BRL3.05 Billion Federal Debt Payment
Sao Paulo will miss on BRL3.05 billion (US$581 million) payment
to the federal government of Brazil, resulting in a currency
decline for the first time in six days. Bloomberg also reported a
decline on bonds after the decision of Brazil's largest city
showed a shortage of funds among local administrations.

According to the city's finance secretary, it is impossible to
pay BRl3 billion to the National Treasury in one year when the
city budget is only BRL10 billion. An option in a three-year debt
restructuring accord provides that Sao Paulo may skip this
payment but will have to pay higher interest, raising Sao Paulo's
debt to the federal government to just over BRL16 billion.

Officials say the non-payment is not a default, as Sao Paulo will
now have to pay a 9 percent real interest rate on the entire 30-
year debt rather than 6 percent. City officials say that Sao
Paulo, whose mayor, Marta Suplicy ia a member of Lula's Workers'
Party, will also continue paying its regular monthly installment
of BRL70 million.

Brazil's new president, Inacio Lula da Silva may have to face
demands to renegotiate state and municipal debts. Sources close
to Lula said that the next government may consider giving states
and municipalities a break on debt payments as long as local
officials endorse cutting pensions for civil servants in the

Investors fear that rescheduling debt payments would have a
affect Brazil's revenues, which has to be kept stable to enable
the country to keep on paying its US$300 billion of debt. The
Brazilian currency fell to 3.6550 to the dollar, the weakest in a


EDELNOR: Tractebel, Codelco Wrap Up 82.3% Stake Purchase
Belgian energy firm Tractebel and Chilean state copper company
Codelco said on Tuesday they had finally wrapped up the US$5.7-
million purchase of 82.3% of debt-burdened power generator
Empresa Electrica del Norte (Edelnor) from investment firm FS

According to Reuters, Tractebel and Codelco, the world's largest
copper producer, bought the shares in the Chilean electricity
firm through their Inversiones Mejillones joint venture at a
price of $0.015 each.

"On November 5...a share sale contract was signed under the terms
of which F.S. Inversiones Limitada sold 375,844,194 shares of
Edelnor," the Company said in an official statement to the
Chilean stock exchange watchdog.

Edelnor, which supplies power to the north of Chile where many of
the country's biggest mining companies are located, is going
through a period of severe financial difficulties, which has
forced its creditors to seek bankruptcy protection in the United

Tractebel has held the exclusive option to buy Edelnor since
January 2002, when US power company Mirant sold its Edelnor stake
to FS Inversiones.

The purchase was made possible by a New York bankruptcy court's
recent approval of Edelnor's US$340-million debt restructuring
plan. Edelnor's debt restructuring plan gives creditors the
option of receiving a discounted cash payment equal to 38% of the
face value of their bonds, or converting existing notes into a
new loan equal to 92.14% of the current debt, or a combination of
the two.

Limits defined by both Tractebel and Codelco for the cash option
and the issuance of new certificates were fixed at 30.5% and
69.5% respectively. As a result, Edelnor's remaining debt, held
with Switzerland's UBS and the Bank of America, is reduced to
US$217 million.

Edelnor listed nearly US$612.9 million in total assets and about
US$385.5 million in total liabilities in the bankruptcy filing.

          Avenida Apoqindo 3721, Oficina 81
          Las Condes
          Santiago, Chile

DEBTOR'S COUNSEL: Lindsee Paige Granfield, Esq.
                  Thomas J. Moloney, Esq.
                  One Liberty Plaza
                  New York, NY 10006
                  (212) 225-2000
                  Fax : (212) 225-3499

MANQUEHUE NET: National Grid Makes Formal Departure
Embattled Chilean competitive local exchange provider Manquehue
Net sustained the exit of one of its foreign shareholders this
week. Citing the Santiago-based operator, Business News Americas
reports that UK-based power company National Grid has formally
divested its 30% stake in Manquehue Net. Terms of the exit were
not disclosed but earlier reports revealed that in mid-October,
other shareholders ditched the US$12-million asking price. They
thought it was too high.

Manquehue's other foreign shareholders, US-based telco Williams
Communications and investment company Xycom, will assume National
Grid's 30% stake, along with a new entrant, US-based investment
bank Capital Trust, "which played a strategic role in the
restructuring of the Company's loans," Manquehue said.

Prior to the divestiture Williams and Xycom owned 16.4% and 7% in
Manquehue, respectively. Following the current plan, Williams and
Xycom own 23.52% and 12.67% of the Company, respectively. Capital
Trust enters the scene with a 19.14% stake.

The recent divestiture didn't see a change in the ownership of
Manquehue's local shareholders. The Rabat Group and gas company
Metrogas, still hold their respective 19.13% and 25.54% stakes.

Manquehue recently restructured debts worth US$23 million. Total
debts now stand at US$100 million, of which US$15 million are
owed to suppliers, US$55 million are in bonds, and US$30 million
with banks.

          Av. Condor 796, Enterprise City,
          Huechuraba Santiago Chile
          Phone: 00 562 243 8800
          Fax: 00 562 248 7292
          EMAIL: info@manquehue.netl
          Home Page:
          Mr. Miller Williams, President
          Sr.Jos, Luis Rabat Vilaplana, Vice President


CHN/BANEJER: Undertakes Merger To Improve Ailing Conditions
Two Guatemalan state banks will initiate merger plans intended to
create one larger and stronger entity, indicates Business News
Americas. Banks Credito Hipotecario Nacional (CHN) and Banco del
Ejercito (Banejer) have seen their performances deteriorate. CHN
reported a GTQ13 million (US$1.72 million) loss this year to
date, while Banejer reported a GTQ41.4 million loss as of
September 30. Banejer has accumulated a total loss of GTQ100
million during the two last years.

In an effort to improve their financial conditions, the banks
have to be merged, a process that needs the approval of
Guatemala's supreme financial council, el Consejo Monetario. The
approval, however, is usually a mere formality, according to a
council source.  Guatemala's government also said this week it
would allocate GTQ25 million to CHN to help cover merger costs.
The merger is expected to conclude March 2003.

According to CHN chairman Hector Augusto Rodriguez and Banejer
CEO Amado Lopez at a press conference, as of next week, the banks
will begin to attend to one another's clients. They also said
Banejer's 133,000 account holders will be able to choose if they
want to transfer accounts to the new CHN or to another bank in
the financial system.

Rodriguez also said the merger will not lead to lay-offs at
Banejer. But, according to local daily Prensa Libre, employees
have been threatened with dismissal if the performance of the new
CHN is not improved.


GEOMAQUE EXPLORATIONS: Weather, Machinery Hampers 3Q02 Results
Geomaque Explorations Ltd. (TSX:GEO) announced Wednesday
consolidated financial and operating results for the third
quarter, ended September 30, 2002.

The loss for the three months ended September 30, 2002 was
$680,000, or nil per share, and for the nine months the loss was
$3,280,000 or $0.02 per share versus losses of $1,753,000 or
$0.03 per share for the three months and $ 4,618,000 for the nine
months ended September 30, 2001, respectively. Operations in the
first nine months of 2002 reflect the resumption of mining at the
Vueltas Mine in February and the commencement of gold production
from Pad 2 in April. Operations in the first nine months of 2001
reflect preproduction until July 1 at the Vueltas Mine and
declining production at the San Francisco Mine. Comparisons
between the periods are, therefore, not meaningful.

The relatively disappointing third quarter results of Geomaque do
not reflect the substantial improvements made at the Vueltas Mine
in Honduras nor the continued efforts of management towards
enhancing production. The operations were negatively affected by
the very rainy weather experienced throughout the quarter and the
ongoing mechanical problems with the crushing system that
curtailed operations for approximately one week during September.

However, with the return of dryer weather, production in October
has improved accordingly, with higher volumes of agglomerated ore
and ounces of gold being placed on the pads as discussed below.
The results of this improved production should be reflected in
increased gold production in the coming months. The dry season in
Honduras typically extends from October to May. Increases in
production should allow for improved operating cash costs per

The Company's cash position continues to be tight and Management
is constantly seeking to reduce costs at all levels of the
Company. The working capital deficit at September 30, 2002 of
$829,000 compares favourably to the deficit at June 30, 2002 of
$1,336,000. While the deficit at December 31, 2001 was only
$63,000, the accounts payable and accrued liabilities were
$3,551,000. At September 30, 2002, the accounts payable and
accrued liabilities have been reduced significantly to $1,983,000
and largely reflect normal levels of payables for mining and
corporate operations.

During the third quarter, 205,017 tonnes of agglomerated ore at
an average grade 1.55 g/t Au containing 10,210 ounces of gold
were placed on the lixiviation pads. Production in the third
quarter totaled 7,331 ounces of gold. Recoveries for the oxide
ore are reaching the planned rate of 80% estimated in the
feasibility study. During the quarter the price realized on gold
sales was $313 per ounce of gold produced and cash operating
costs were $314 per ounce. It should be noted that with the
return of dryer weather, production has improved and 91,407
tonnes of agglomerated ore at a grade of 1.54 g/t Au containing
4,517 ounces of gold were placed on the pad during the month of

For the nine-month period ended September 30, 2002, 481,482
tonnes of agglomerated ore at an average grade of 1.77 g/t Au
containing 27,450 ounces of gold were placed on the lixiviation
pads. Production for this nine-month period was 21,576 ounces of
gold. The realized gold price during the period was $307 per
ounce of gold produced and cash operating costs were $303 per

The Company's ability to raise equity capital in difficult
markets in September has allowed the Company to pursue the
exploration of some of its good prospective exploration
properties located close to the Vueltas mine, with particular
emphasis on adding oxide reserves to feed the existing plant.

The exploration program underway on the previously poorly
explored North and South Zones near the Vueltas Mine has met with
some success in discovering a potential new area of gold
mineralization. This zone appears to be a western extension of
the North Zone. It is located 400 meters north west of the Mine.
Strong veining identical to that experienced at the Mine was
encountered while prospecting. Trenching has exposed heavy
veining. The area of interest is currently 500 meters long and
100 meters wide. Prospecting, trenching and sampling is
continuing. These results are very encouraging, as no exploration
has been done in this area previously and the exposed
mineralization is typical of the Mine geology.

As part of the ongoing exploration program on areas near the
Mine, a soil geochemical program has been completed. Widely
spaced lines covered the North and South Zones. A previous
orientation line picked up a strong gold anomaly in the North
Zone and anomalous metals to the south of the Vueltas Mine using
the Enzyme Leach method. Results are expected shortly. Further
work will be planned after the geochemical results are available.
Drilling has been deferred until a comprehensive program for both
Zapotal and Vueltas can be made.

The focus of the Corporation continues to be the enhancement of
shareholder value by building on the operating Vueltas Mine,
expanding its reserves and mine life where possible, reducing the
debt position of the Corporation and concentrating on adding
value through the exploitation of its existing exploration
properties, particularly in Honduras where it has an established
operational management team and infrastructure. At the same time,
the Corporation is pursuing the acquisition of new gold
properties with near term production potential.

Geomaque Explorations Ltd. is an international mining company
that is producing gold from its Vueltas del Rio Mine in Honduras,
and exploring for precious metals in the Americas.

                  John W. W. Hick
                  President and Chief Executive Officer
                  (416) 956-7470
                  1210 - 181 University Avenue
                  Toronto, ON  M5H 3M7


COPAMEX: Fitch Drops Ratings To 'BB-` Over Protection Concerns
Fitch Ratings has downgraded Copamex, S.A. de C.V. (Copamex)
international foreign and local currency ratings to 'BB-' from
'BB'. These rating actions affect Copamex's US$180 million of
outstanding senior notes due 2004. Fitch has also downgraded
Copamex's national scale rating to 'A- (mex)' from 'A (mex)'.
This rating action affects Copamex's Ps. 1,000,000 Certificados
Bursatiles' program. All of these ratings have been assigned a
Stable Rating Outlook.

The rating action follows Copamex's inability to improve credit
protection measures, which are weak for the prior rating
category. In recent years, Copamex has faced a relatively
favorable operating environment, which has included domestic
economic growth, a strong peso and low interest rates.
Notwithstanding, strategies designed to improve the company's
business profile, such as an increased focus into value-added
products, have not translated into higher profitability levels
due to higher raw materials and marketing costs, an aggressive
pricing environment and a prolonged economic slowdown since 2001.
As a result, Copamex has not been able to significantly reduce
debt levels, which remain high as a result of past acquisitions.

Over the near term, Copamex's credit profile is not expected to
materially improve but may face pressures given a more
challenging domestic and external environment. Weak economic
growth in Mexico has pressured prices for the company's products.
In addition, the printing and writing division is more vulnerable
to the cyclical nature of international pulp prices following
Copamex's closure of its pulp mill in early 2001, although
Copamex has initially benefited from such closure by sourcing its
pulp needs at low international market prices. Before the closure
of the pulp mill, Copamex internally supplied approximately two-
thirds of its pulp needs.

Copamex's ratings are supported by a strong market position in
the categories it participates in the highly concentrated Mexican
paper industry. Over the past two years, the relatively stable
performance of the company's consumer products has partially
offset a weaker performance of the printing and writing division.
After completing several acquisitions during the late 1990s,
Copamex shifted its strategic focus from industrial paper
products to consumer products (including tissue paper and
feminine products), which now account for close to half of

Copamex continues to make progress on lengthening the maturity
profile of its debt. Starting in the fourth quarter of 2001, the
company has accessed the local bond market with three separate
issuances of local bonds ('Certificados Bursatiles') with an
aggregate face value of Ps. 1,000 million (equivalent to
approximately US$100 million). Proceeds from these issuances have
been used to refinance existing debt. Approximately 20% of the
company's total debt is peso-denominated, while the remaining 80%
is dollar-denominated.

Copamex's debt levels remained stable in recent years as the
company has limited capital expenditures to very moderate levels.
Total debt was Ps. 5,168 million (approximately US$519 million)
at June 30, 2002. Virtually all of the company's debt is
unsecured. The company's refinancing needs over the next twelve
months are moderate. Currently, Ps. 1,446 million (approximately
US$145 million) of the company's debt is short-term. Of this
amount, approximately half is composed of revolving bank loans
that are expected to be rolled over at maturity. Interest
coverage as measured by the ratio of EBITDA-to-gross interest
expense, is expected to remain between 2.0 times (x) and 2.5x
over the medium term. Debt levels are expected to remain stable,
in part due to continued moderate annual capital expenditures.

Copamex is one of Mexico's largest producers of paper-based
consumer and industrial products. The company participates in
three major paper-product segments: consumer products (tissue,
feminine hygiene, notebooks, and diapers), which accounted for
48% of revenues during the first six months 2002; packaging
(kraft paper, multiwall bags, corrugated boxes, and specialty
paper), which accounted for 28% of revenues; and printing and
writing paper (bond and copy paper), representing 24% of

CONTACT: Fitch Ratings
         Guido Chamorro, 312/368-5473
         Giovanna Caccialanza, CFA, 212/908-0898
         Victor Villareal, 528-18-335-7239
         James Jockle, 212/908-0547 (Media Relations)

HYLSAMEX: Analyzing Hylsa Unit's Role In Debt Reduction Options
Mexico's Hylsamex, the steel arm of conglomerate Grupo Alfa, is
considering several options on how to cut its US$1-billion net
debt. In an interview with Reuters, Hylsamex's President and
Chief Executive Alejandro Elizondo emphasized the need to define
the role for its Hylsa unit, which currently provides 70% of the
Company's sales.

According to Elizondo, Hylsamex's July debt restructuring, which
cut US$200 million in Hylsa debt, had given the group "time and
space" to consider options for its Hylsa unit.

"There are many alternatives and they range from a merger with
another producer or even the sale of some assets that we
currently operate to a third party," Elizondo said. "There are
many possibilities and we are going to explore them all."

Elizondo said Hylsamex's net debt, which at the end of the
quarter stood at US$1.054 billion, was "manageable and
sustainable" but he said the market would reward the Company if
its debt levels were lower.

"It is a strategic priority, and fortunately it is not necessary
and it is not urgent. That is the radical change we achieved with
the debt restructuring," Elizondo said. "We are spending a lot of
time on this topic and we will continue to spend a lot of time on
this topic."

To see financial statements:

          Investor Relations
          Margarita Gutierrez

          Ricardo Sada
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452

GRUPO MEXICO: Proposes Talks With Striking Workers
Grupo Mexico said it is willing to negotiate with striking
workers in order to resolve the conflict, which has led to the
closure of its zinc refinery in San Luis Potosi.

As previously reported in the TCR-LA, the Mexican mining concern
revealed the refinery has been closed since Sunday after workers
belonging to the National Mining, Metallurgical and Similar
Workers Union barred shift workers from carrying out the shift
changes needed to maintain operations.

The union claimed that the Company violated the collective work
contract and the ownership contract on the part of the National
Iron, Steel and Construction Union. They also demanded that the
Company bring its payroll lists up to date, allow for shifts with
different starting times as it had agreed, meet certain safety
demands and respect union autonomy.

Grupo Mexico responded to the accusations, stating the following

1. In no way has the company tried to back one or other union
competing for the ownership of the collective contract of the San
Luis Plant and is willing to work with whichever union is deemed
to be the owner.

2. The firm has respected the decisions of workers who have
continued working and those who have decided to go on strike.

3. The Company has satisfied workers' labor and salary rights,
including overtime for those who have decided to continue

4. The firm finds it lamentable that to resolve an inter-union
dispute, workers are utilized and encouraged to strike over
nonexistent contractual violations.

5. The Company has requested and is awaiting legally-backed
decisions from the labor authorities as soon as possible and fix
the rights of all so that the San Luis Plant can continue

6. The Company reiterates its willingness to attend to workers'
demands according to the law and under conditions of mutual

          Avenida Baja California 200,
          Colonia Roma Sur
          06760 M,xico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garc­a de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre›n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                   Finance  President

GRUPO MEXICO: Asarco Seeks DOJ Nod To Sell SPCC
Grupo Mexico's subsidiary Asarco seeks approval from the US
Department of Justice (DOJ) to sell its majority stake in
Southern Peru Copper Corporation (SPCC) in order to pay debts due
next week. The DOJ moved to block the sale of SPCC in August, on
concerns that Asarco was trying to avoid clean-up obligations
totaling about US$700 million, according a Wall Street analyst.

Asarco faces a November 10 deadline on some US$450 million of
debt due to a consortium of about 20 banks, reports Business News
Americas. Asarco has a 54 percent stake in SPCC, which it seeks
to sell to its parent company, Americas Mining Corporation (AMC).
AMC is also a unit of Grupo Mexico.

In the event Asarco's plans are approved, the proceeds from the
sale would reduce the Company's US$550 million short-term debt,
leaving only a US$350 million long-term debt. The next maturity
date would be in 2013, for US$100 million.

SPCC, which posted profits of US$14.4mn in 3Q02, is one of Peru's
largest companies and one of the 10 biggest copper producers
worldwide. Grupo Mexico is the world's third largest copper
producer, and acquired Asarco in late 1999 for US$2.2bn.

          2575 E. Camelback Rd., Ste. 500
          Phoenix, AZ 85016
          Phoenix City
          Phone: 602-977-6500
          Fax: 602-977-6701
          Home Page:
          Germ n Larea Mota-Velasco, Chairman and CEO
          Genaro Larrea Mota-Velasco, President
          Daniel Tellechea Salido, VP and CFO

IUSACELL: Announces Intent to Restructure Debts
Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) Wednesday
announced that it has initiated the process of evaluating
different alternatives for the purpose of restructuring its debt,
including the selection of advisors.

Management believes that as part of the re-engineering process to
refocus the Company on high-value customers, this is the
appropriate time to initiate the restructuring of its debt.
Iusacell continues to be in full compliance with all of its debt
covenants. The Company will communicate further information when
more specific data becomes available.

Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) (Iusacell) 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.
Iusacell is under the management and operating control of
subsidiaries of Verizon Communications Inc. (NYSE: VZ).

Investor Contacts:  Russell A. Olson, Chief Financial Officer
                    Tel +011-5255-5109-5751

                    Carlos J. Moctezuma, Investor Relations Mgr
                    Tel +011-5255-5109-5780

                    Company Website:


AES PANAMA: Wins Another Contract From Elektra
Even though AES Panama wasn't the lowest bidder for the 12-month
contract to supply Panamanian distributor Elektra 45MW from
January 1, 2004, it was awarded the contract, reports Business
News Americas. AES Panama already holds one contract to supply
49MW through end-2004, and in January this year won two 50MW
contracts for 2003-4.

The lowest-cost bidder ACP, the Panama Canal Authority, got
disqualified because it is not registered with the public
services regulator as an active generator and therefore did not
meet bidding rule requirements, said Elektra.

AES Panama is a unit of U.S.-based AES Corp, a leading global
power company comprised of contract generation, competitive
supply, large utilities and growth distribution businesses. AES'
generating assets include interests in 177 facilities totaling
over 59 gigawatts of capacity, in 33 countries. Its electricity
distribution network sells over 108,000 gigawatt hours per year
to over 16 million end-use

          Kenneth R. Woodcock, 703/522 1315


ANDE: Initiates Steps To Address Financial Problems
Paraguay's state power company Ande is embarking on a strategy
that it believes will guide its way out of its current financial
difficulties, reports Business News Americas. Part of the plan by
Ande president Angel Maria Recalde, who took office last week, is
to cut Ande's power purchases from the Itaipu bi-national hydro
plant by US$84 million for 2003.

According to Ande chief of staff Victor Romero, Ande agreed the
cuts with the Itaipu operating company and Brazil's federal power
company Eletrobras on Monday. The Company has lowered its power
purchase commitments from the original 713MW/month contracted to
400MW/m, Mr. Romero explained.

Meanwhile, talks between Ande and a number of banks operating in
Paraguay aimed at securing a short-term loan of about US$25
million are now underway. The loan will help meet commitments for
power purchases in the next three months, until the power
reductions take effect, Mr. Romero said.

Ande wants to keep the loan maturity as short as possible, and
avoid paying high interest rates, Mr. Romero said. Ande is also
examining the legal consequences of a state owned entity taking
out such a loan, he added.

Ande is also working on the main long-term solution - to hike
prices - as the existing tariffs do not cover its operating
costs. Mr. Romero added that the Company is running at a monthly
operating loss of about US$5 million on revenues of US$15-16

This issue is complicated because prices in Paraguay are
traditionally set by political and social benchmarks, rather than
by more modern technical aspects, according to Mr. Romero. The
Company also plans to implement administrative changes to improve
its operating performance.

The reduced Itaipu payments will also mean the company has some
room to restart investments in transmission and distribution,
Romero said. These would be partly directed at solving some of
the Company's technical and non-technical power losses, which are
estimated at about US$5 million a month, primarily on the
distribution side.

T R I N I D A D   &   T O B A G O

BWIA: Nears Target Savings, Union Agrees To Concessions
Beleaguered regional airline gets a step closer to its goals of
saving US$300,000 in labor costs this month after Jagdeo Jagoo,
president of CATTU, one of the unions representing BWIA employees
announced the unions intention to meet the new target savings set
for it.

CATTU had also asked the management to present their targeted
savings separately from that of the Aviation, Communication and
Allied Workers Union (ACAWU), another union of BWIA employees.

According to The Trinidad Express, both unions were originally
set a savings target of US$70,000. The new target figures are
US$25,000 a month for CATTU, which has 200 members and US$45,000
for ACAWU, which has 1,400 members.

Jagoo said Tuesday that CATTU has agreed to postpone annual bonus
payments for this year and the next. The daley would result in
savings of US$78,000 annually.

In addition to that, CATTU has given its approval that members
would render a monthly eight hours of overtime without pay. This
would mean another US$100,000 savings in a year. CATTU members
have also agreed to waive overtime subsistence allowances until
2004. CATTU's decision is a far cry from its previous rejection
on all concessions, except for a 50-50 meal chit programme.

Jagoo explained CATTU's change of heart saying, "As the chairman
(Lawrence Duprey) pointed out on (TV6's) Sunday Edition we are
running out of time. We have to look at the interest of the
Company." He added that the union hopes to set an example and
show their commitment to the airline.

In the mean time, ACAWU had not offered additional concessions.
However, ACWU Chairman Christopher Abraham said that the union
will meet with members to see if other concessions could be
offered. He added that the union may present their proposals on

After CATTU's offer, BWIA nears its targeted labor savings of
US$300,000 per month. BWIA is now trying to identify where the
US$115,000 savings will come from. The airline hopes that
concessions from ACAWU and flight attendants would cover this

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          Home Page:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)


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

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

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

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.

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