TCRLA_Public/021120.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Wednesday, November 20, 2002, Vol. 3, Issue 230

                           Headlines

A R G E N T I N A

CABLEVISION: Sinks Deeper Into Red On Peso Devaluation
CAMUZZI GAS: S&P Withdraws `SD' Corporate Credit Rating
IRSA/CRESUD: Bond Sale Enters Second Phase
IRSA: Mulls Selling Interests In Buenos Aires-based Hotels
METROGAS: Issues `02 Nine Month Results Conference Call Script

SUDAMERIS ARGENTINA: Accepts Mildesa's Purchase Offer
TRANSENER: Seeks Minor Increase in Project Funds

* Argentine Spending Hinders IMF Loan
* Court Suspends Public Utility Rates Hike Anew


B E R M U D A

FLAG TELECOM: Case Heard Friday
GLOBAL CROSSING: Details Asia Global Plan, Chapter 11 Filing
TYCO INTERNATIONAL: Names New Directors
TYCO: Ionics Denies Tyco Claim


B R A Z I L

AES SUL: Postpones Debenture Talks
COSIPA: 3Q02 Net Loss Not As Bad As Expected
VARIG: Management Hands BNDES Restructuring Plan


M E X I C O

ALESTRA: S&P Lowers Corporate Credit Rating to 'D'
BITAL: Some MXN330M Will Be Taken From Reserves
GRUPO IUSACELL: Retains Morgan Stanley as Financial Advisor
GRUPO IUSACELL: Moody's Downgrades Ratings
GRUPO IUSACELL: Shares Plummet On Concern About Restructuring


P E R U

SIMSA: Phelps Dodge Selling Interest To Galloway


U R U G U A Y

* Uruguay Economists Ask Government To Start Debt Talks


V E N E Z U E L A

* S&P Affirms Venezuela's Long-Term Ratings; Outlook Negative
* Fitch Expresses Concerns About Venezuela's Ratings

     -  -  -  -  -  -  -  -


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

CABLEVISION: Sinks Deeper Into Red On Peso Devaluation
------------------------------------------------------
The devaluation of the Argentine peso in January dragged
Argentine cable TV and broadband provider Cablevision deeper into
the red, reports Business News Americas.

For the nine months ending Sep. 30, 2002, the Company registered
a net loss of ARS2.99 billion (US$839 million) compared to a
ARS163-million net loss in the same year-ago period.

Cablevision saw a 48%-decrease in EBITDA in the first nine months
of 2002 to ARS150 million from ARS291 million a year ago. EBITDA
margin shrank to 27% compared to 33.5% a year ago.

Revenues for the first nine months of 2002 also shrank 40% to
ARS558 million from ARS871 million in the same period in 2001.

As a result of the devaluation and subsequent depreciation of the
peso, Cablevision's debt grew to ARS2.97 billion at end-
September, compared to ARS1.84 billion a year ago. A portion of
operating costs and 90% of Cablevision's debt are denominated in
dollars. Like several other Argentine operators, the Company has
stopped paying interest and principal on dollar denominated debt.

In September, the Company said it would restructure its debt and
hired Merrill Lynch & Co. to assist it in the process.

Cablevision is owned by the U.S. buyout fund Hicks, Muse, Tate &
Furst Inc. and VLG Acquisition Corp., a U.S.-based private equity
fund.

CONTACT:  MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO



CAMUZZI GAS: S&P Withdraws `SD' Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services withdrew Monday its selective
default-'SD' corporate credit ratings on the Argentine gas
distribution company Camuzzi Gas del Sur S.A., at the Company's
request.

Camuzzi Gas del Sur is a subsidiary of Camuzzi Argentina S.A., a
holding company devoted to public services, with investments in 7
operating companies, which are focused on natural gas
distribution, electric power transportation and distribution, and
supply of drinking water and sewage services.

ANALYSTS:  Pablo Lutereau, Buenos Aires (54) 114-891-2125
           Luciano Gremone, Buenos Aires (54) 11-4891-2143
     
CONTACT:  CAMUZZI ARGENTINA S.A.
          Av. Alicia Moreau de Justo 270 Piso 4o
          (C1107AAF) Buenos Aires - Argentina
          Phone: (54-11) 4891-2270
          Mobile: (54-11) 15-5329-4876
          Fax: (54-11) 4891-2237
          E-Mail: hugo.krajnc@camuzzi.com.ar
          Home Page: http://www.camuzzi.com.ar/
          Contact:
          Hugo Krajnc, Institutional Relations Director
          Fabrizio Garilli, Chairman:
          Martn Juan Blaquier, Vice-Chairman & C.E.O.


IRSA/CRESUD: Bond Sale Enters Second Phase
------------------------------------------
The sale of US$150 million in five-year securities by Argentine
agricultural company Cresud and real estate firm Inversiones y
Representaciones S.A. (IRSA) is now in its second phase, says Dow
Jones.

The process, which kicked off last month, saw Cresud offering
US$50 million of securities, and IRSA US$100 million of the
bonds.

In the first phase, which closed Nov. 14, the bonds, which carry
an annual yield of 8%- were offered to shareholders with
preemptive rights. Shareholders of IRSA bought US$66.74 million
worth of their bonds offered, while Cresud's shareholders
purchased US$20.50 million of the bonds that were offered.

In the second phase of the bond offer, which lasts until Nov. 18,
those shareholders with pre-emptive rights who have already
chosen to buy securities, will be able to buy more of the bonds.

From then until Nov. 20, the remaining unsubscribed bonds will be
available to the general public.

IRSA, according to a company representative, is confident that
the bond sale should result in the sale of all the securities on
offer. The representative also said the company expected
considerable interest from U.S. investors.

IRSA is Argentina's leading property development firms with major
holdings in downtown Buenos Aires and a controlling interest in
leading shopping center developer Alto Palermo S.A. Cresud is
IRSA's arm for investments in farmland and livestock.

The companies were among the first to return to the capital
markets since credit to most Argentine individuals and businesses
was cut off after the country defaulted on most of its US$141-
billion public debt.

CONTACT:  Irsa Inversiones y Representaciones SA
          Head Office
          Piso1
          Bolivar 108
          Buenos Aires
          Argentina C1066AAD
          Tel  +54 11 4323 7555
          Fax  +54 11 4323 7597
          Web  http://www.irsa.com.ar/
          Contacts:
          Eduardo Sergio Elsztain, Executive Chairman
          M. Marcelo Mindlin, Executive Vice Chairman
          Atty Saul Zang, Vice Chairman


IRSA: Mulls Selling Interests In Buenos Aires-based Hotels
----------------------------------------------------------
IRSA, Argentina's biggest real estate company, which has been
selling assets as part of a restructuring process aimed at
reducing debt, is mulling over a possible sale of its interests
in Buenos Aires-based hotels Inter-Continental and Sheraton
Libertador, reports El Cronista.

The Company owns 75% of Inter-Continental. The rest is owned by
Six Continents, owner of the brand. IRSA intends to get nearly
US$25 million for the Inter-Continental stake, which it acquired
as part of the acquisition package of Alto Palermo from Perez
Companc in 1997. However, offers do not reach US$15 million.

Meanwhile, with Sheraton Libertador hotel, in which it has 80%
ownership, IRSA wants nearly US$20 million but offers do not
reach US$10 million. The remaining 20% of Sheraton Libertador is
owned by Sheraton.


METROGAS: Issues `02 Nine Month Results Conference Call Script
--------------------------------------------------------------
Good afternoon and thank you for participating today in MetroGAS'
conference call summarizing our results for the first nine months
of the year 2002. My name is Luis Domenech, General Director of
MetroGAS and with me is Eduardo Villegas, Administrative and
Finance Director. We will review some highlights of the nine-
month period ended September 30, 2002, and then we'll answer any
questions that you may have.

All of the aspects of the Argentine financial crisis, including
the pesification and freezing of tariffs, the amendment of the
Convertibility Law, the massive devaluation, the political
environment and the demise of the banking system, have
contributed to the deterioration of the financial and operating
health of all Argentine public service companies. Faced with
these challenges, MetroGAS has sought to address this difficult
situation in a proactive manner. The Company continues working to
mitigate the detrimental impact of this crisis on its operating
performance and financial health to the greatest extent possible.
We turn now to our review of the challenges facing the Company,
and trying to achieve a solution to face its short-term cash flow
obligations, during the contract re-negotiation process.

Insignificant progress has been made to date regarding the re-
negotiation with the Government. The Public Works and Services
Contracts' Re-negotiation Commission has had four successive
coordinators since its creation.

On August 16, and following a formal request by the Re-
negotiation Commission, MetroGAS submitted a new presentation
focused on the distribution margin levels required to cover O&M,
minimum investment and financial costs.

The Economy Ministry called for a Public Hearing for the
treatment of an emergency tariff adjustment requested by the
Transportation and Distribution Companies to be held on September
26.

On September 24 the Justice suspended all public hearings
supporting a request made by the Ombudsman of the City of Buenos
Aires and the Defence Associations of Users and Consumers.

It is believed that the current administration will leave key
decisions regarding the major tariff adjustments as well as the
license re-negotiation process to the next administration - which
will take office at the end of May 2003.

The Government negotiations with the IMF are positively
influencing the attitude of Economy Minister Lavagna, who has
changed his public speech and is now advocating for urgent
(though marginal) tariff increases for the public services, as an
imperative to avoid quality of service deterioration (possibly
"one digit" adjustment).

Within the framework of the Emergency Law, the National Executive
Branch issued several decrees through which was established that
in order to ensure the continuity and quality of the utilities,
the mere declaration of preventive bankruptcy will not entitle
the rescission of concession contracts or licenses. In addition,
it was extended for a period of 120 business days from the
original expiration date, the term for the Ministry of Economy to
submit to the National Executive Branch, the proposals for the
renegotiation of contracts. The Ministry of Economy will be able
to extend this term to 60 days if the renegotiation process
demands it.

Because of the judicial suspension of the established process for
a short term tariff adjustment, on October 11, MetroGAS presented
to ENARGAS a formal request for a Public Hearing for the revision
of the current tariffs on the basis of "justified and objective"
circumstances of costs variation, as established in Article 46 of
the transportation and distribution Regulatory Framework - Law
24.076 -, and submitted to the Ministry of Economy an extensive
note detailing all the formal errors made by the National
Government from the beginning of the license renegotiation
process.

Finally, the ENARGAS called for a new public hearing to be held
on November 18, after being authorised by the Ministry of Economy
to act with its original faculties.

New judicial measures that might interfere this process should
not be discarded.

On October 30, ENARGAS released an order aiming an adjustment on
tariffs, through article 46 of the Regulatory Framework. MetroGAS
gave its reasons for that adjustment, but keeping legal assertion
of the right to claim at national or international courts, if
necessary.

Specifically, MetroGAS has been fighting to obtain tariff
adjustments in the short-term, as well as to achieve a final
solution to address not only its operational, maintenance and
minimum investment requirements but also the need to meet its
financial obligations.

The Company continues to negotiate at the appropriate levels in
order to obtain the most favorable terms, including tariff
increases, and the right to pass through increases in gas,
transportation and other costs in order to have its economic
equilibrium restored.

Despite the crisis, MetroGAS continues to have important
operating strengths: (i) We are the exclusive gas distribution
service provider for the Federal District and southern part of
Buenos Aires; (ii) We provide indispensable public services and
cover over 1.9 million customers in one of Argentina's wealthiest
and most populous areas; (iii) Management continues to reduce
costs and to improve the level of collections. Capex has been
reduced to minimum levels needed to ensure business continuity,
maintaining the quality of gas supplies and meeting the Basic
License Rules. Personnel expenses and other variable expenses
remain relatively stable in peso terms. Management fees and
dividend payments have been suspended.

We turn now to review MetroGAS financial information according to
its financial statements for the nine-month period ended
September 30, 2002 and the new local GAAP.

As I mentioned last quarter, due to Executive Order N° 1269/02
enacted by the government, the National Securities Exchange
approved the restatement for inflation accounting methodology,
retroactively in effect since January 1, 2002. Accordingly,
results accumulating monetary transactions have been restated in
constant Argentine pesos, applying to the original value the
conversion factor to the month when the transaction took place.
Results related to non-monetary assets valued at restated costs
have been computed based on the restated amounts of such assets.
Financial results have been valued net of general inflation on
the related assets and liabilities. The effect of inflation on
the remaining monetary assets and liabilities has been disclosed
as "Results of exposure to inflation."

Figures corresponding to the first nine months and third quarter
of 2001 have been restated to constant Argentine pesos as of
September 30, 2002 for comparative purposes. This restatement
does not change in any way the prior period figures, except to
update the reported amounts to constant Argentine pesos as of
that date. The inflation rate for the period amounted to 122%, in
accordance to the internal wholesale price index. It is worth
mentioning that the restatement for inflation does not improve
the generation of funds, being the financial condition of the
Company the same.

In addition to inflationary accounting, since January 1, 2002,
MetroGAS has discontinued the accrual of revenues based on US PPI
tariffs adjustments, which are currently in dispute with the
Government.

Subsequently, ENARGAS approved temporarily for the period of May
1 through June 30, 2002, the tariffs expressed in pesos. The
prices approved corresponded to the price of gas at wellhead for
the same period of 2001. ENARGAS extended these tariffs for an
additional month (to July 31), and finally ratified them on
August 1, 2002.

Regarding operations, while total volumes delivered decreased in
the first nine months of year 2002, the higher decrease in net
sales was mainly due to the restatement for inflation of 2001
figures that exceeded significantly the increase in tariffs for
the first nine months of 2002.

The volumes of gas delivered during the first nine months of
2002, totaled 4.8 billion cubic meters, which represents a
decrease of 2.1% compared to 4.9 billion cubic meters delivered
during the same period of 2001.

Volumes delivered to residential customers during the first nine
months of 2002 increased by 1.0% to 1,490.6 million cubic meters
compared to 1,475.2 million cubic meters during the same period
of the previous year due to lower temperatures.

Net sales to residential customers decreased by 47.6% due to the
discontinuation of US PPI adjustment accrual and the restatement
for inflation of 2001 figures that exceeded significantly the
increase in tariffs for the first nine months of 2002.

The volumes delivered to power plants in the nine-month period
ended September 30, 2002, decreased by 10.0% to 1,828.2 million
cubic meters compared to 2,031.8 million cubic meters during the
same period of 2001, due to a reduction in the electric power
demand as a result of the Argentine economic recession. The
larger decrease of 57.6% experienced in net sales, if compared to
the volumes delivered, corresponds to the higher increase of the
adjustment index used to restate for inflation 2001 figures with
respect to the increase in tariffs and, to a lesser extent, to
the change in the sales mix increasing the volumes delivered
under transportation and distribution services which are billed
at a lower price than the volumes of sales of gas.

Despite the lower level of economic activity in Argentina since
the end of 1998, volumes delivered to industrial, commercial and
governmental customers increased by 0.8% to 967.6 million cubic
meters during the first nine months of 2002 compared to 959.9
million cubic meters during the same period of the previous year.
Nevertheless, net sales and transportation and distribution
services to these customers decreased by 47.3% during the first
nine months of 2002 compared to the same period of the previous
year, due to the discontinuation of US PPI adjustment accrual and
the restatement for inflation of 2001 figures as mentioned
before, and to a lesser extent to the change in the sales mix,
with decreasing volumes of sales of gas and increasing volumes
delivered under transportation and distribution services which
are sold at a lower tariff.

Due to the Argentine recession, during the first nine months of
2002, compressed natural gas sale volumes decreased by 0.4% to
378.0 million cubic meters, compared to 379.7 million cubic
meters during the same period of 2001. Net sales of compressed
natural gas decreased 43.3% also as a consequence of the
discontinuation of US PPI adjustment accrual and the restatement
for inflation of 2001 figures compared to the 2002 increase in
tariffs.

Operating costs decreased 43.1% to $469.7 million in the first
nine months of the year 2002, from $826.0 million in the same
period of 2001. This variation was mainly due to the restatement
for inflation of 2001 figures that exceeded the real increase in
costs, the discontinuation of the US PPI adjustment accrual
related to transportation costs and the decrease in gas costs as
a result of a reduction of volumes of gas purchased.

Total SG&A expenses decreased by 9.1% to $ 121.5 million in the
first nine months of 2002 from $ 133.7 million in the same period
of 2001. This decrease resulted mainly from the restatement for
inflation of 2001 figures, partially offset by the increase in
the allowance for doubtful accounts based on the Company's
estimates of collection, and the increase in certain provisions.

Administrative expenses decreased by 24.4% to $ 61.5 million
during the first nine months of 2002, from $ 81.4 million in the
same period of 2001, as a result of the higher increase of the
adjustment index used to restate for inflation 2001 figures
compared to the real increase in expenses, partially offset by
the increase in certain provisions.

Selling expenses increased 14.7% to $ 60.0 million during the
first nine months of 2002, from $ 52.3 million in the same period
of 2001. This was caused primarily as a result of the increase in
the allowance for doubtful accounts based on the Company's
estimates of collection, partially offset by the restatement for
inflation mentioned before.

Net financing and holding results totaled a loss of $ 763.8
million during the first nine months of 2002 compared to $ 40.8
million in the same period of the previous year. This increase
was mainly caused by an increase in losses from financial and
holding results generated by liabilities amounting to $ 488.0
million, principally resulting from exchange losses generated by
the peso devaluation on the foreign-currency denominated
financial debt not pesified, partially offset by the results for
exposure to inflation and holding results generated by
liabilities. Additionally, financial and holding results
generated by assets amounted to a loss of $ 223.7 million for the
first nine months of 2002 compared to an income of $ 11.3 million
for the same period of last year, principally due to results for
exposure to inflation and holding results generated by assets.

With respect to taxes, as of fiscal year 2002, income tax is
recorded under the deferred income tax methodology. During the
first nine months of 2002, the Company accrued an income of $
198.6 million for income tax due to the income tax carryfoward
for the period and the deferred income tax assets generated by
the exchange losses, deductible according to the Emergency Law,
partially offset by a valuation allowance against these deferred
assets, compared to a loss of $ 58.8 million for the same period
of the previous year corresponding to income tax payable.

Net cash provided by operating activities amounted to $ 59.8
million during the first nine months of 2002 while the net cash
used in the same period of the previous year totaled $ 6.8
million. This variation is mainly due to the suspension of
interest payments related to financial debt, the lower increase
in trade receivables as a result of the US PPI accrual during
2001, the decrease in taxable payable and in accounts payable due
to lower gas purchased.

As a consequence of the action plan designed to mitigate the
impact of the crisis and to continue providing the distribution
service, capital investments during the first nine months of 2002
were reduced to $ 17.0 million from $ 114.8 million during the
same period of the previous year.

The Company's total capitalization at September 30, 2002 amounted
to $2,303.7 million, consisting of $ 1,558.9 million of debt and
$744.8 million of shareholders' equity.

Eduardo Villegas, will now provide you the financial details for
the third quarter of 2002.

As we announced last Friday, MetroGAS sales for the three-month
period ended September 30, 2002 totaled $ 215.8 million and for
the same period of 2001 totaled $ 477.3 million. Net income for
the third quarter of 2002 amounted to $ 183.2 million while net
income for the same period of 2001 amounted to $ 59.9 million.

Net sales for the three-month period ended September 30, 2002
decreased by 54.8% when compared to the same period of previous
year, due basically to the restatement for inflation of 2001
figures that exceeded significantly the increase in tariffs as
Luis has mentioned before, and the discontinuation of US PPI
adjustment accrual. Nevertheless, volumes delivered during the
third quarter of 2002 increased by 6.9% when compared to the same
period of 2001 mainly as a result of the increase in volumes
delivered to residential customers due to lower average
temperatures.

Operating costs decreased by 50.3% during the third quarter of
2002 to $ 160.4 million compared to $ 322.9 million in the same
period of 2001. This decrease was mainly due to the restatement
for inflation of 2001 figures that exceeded the real increase in
costs.

During the third quarter of 2002 the Company purchased 1,357.2
million cubic meters representing a 6.4% increase in gas volume
purchased compared to the 1,275.6 million cubic meters purchased
during the same period of 2001. This increase in volumes
purchased was mainly due to the increase in volumes delivered to
residential customers during the third quarter of this year.

Gas transportation costs decreased by 61.7% during the third
quarter of 2002, compared to the same period of the previous
year. In addition to the restatement for inflation of the cost
already mentioned, this decrease was due to the discontinuation
of US PPI adjustment accrual.

Total SG&A expenses decreased by 20.1% to $ 37.9 million in the
third quarter of 2002 from $ 47.4 million in the comparable
period of 2001, primarily as a result of the higher increase of
the adjustment index used to restate 2001 figures for inflation
compared to the real increase in expenses, partially offset by
the increase in the allowance for doubtful accounts based on the
Company's estimates of collection, and the increase in certain
provisions.

Net financing and holding results for the third quarter of 2002
totaled an income of $172.9 million, compared to a loss of $13.3
million in the same period of 2001. The income for the third
quarter of 2002 is mainly due to the decrease in exchange losses
generated by the peso devaluation on the foreign-currency
denominated financial debt not pesified and the results for
exposure to inflation generated by liabilities as a result of the
fact that the devaluation rate was lower than inflation rate for
this quarter.

During the third quarter of 2002, the Company accrued an income
tax loss of $7.8 million compared to $32.9 million for the same
period of the previous year. The decrease in the effective income
tax rate is mainly due to the effects of the restatement for
inflation that are considered permanent differences under the
deferred income tax methodology.

Luis Domenech, will now conclude this conference call.

The mismatch between peso-revenues and dollar-denominated debt,
coupled with the massive devaluation, was the main reason for the
Company's inability to service debt. MetroGAS suspended payment
to all financial creditors on March 25, 2002, as cash generation
could only support operations.

On August 12, 2002 MetroGAS made an extraordinary payment on
accrued interest until April 30, 2002 on its financial debt. The
payment was funded with the proceeds of the early termination of
a cross-currency swap that resulted in an increase measured in
U.S. dollars of MetroGAS' debt denominated in Euros. In addition,
on November 1, 2002, MetroGAS made a new extraordinary payment on
its accrued interest until September 30, 2002 on its financial
indebtedness, while the payment of the Principal of Series B, due
on September 27, 2002, remains suspended. MetroGAS believes that
these payments resulted in its financial creditors being treated
equitably with respect to the total amount paid.

We hope that you will recognize that these payments of the funds
demonstrate our commitment to making payments to financial
creditors whenever it is possible and prudent to do so.

We want to assure you that the Company is committing all its
efforts toward obtaining tariff increases sufficient to pay our
financial obligations, in addition to its operational and
maintenance costs.

MetroGAS will continue to strive to restore financial equilibrium
through its re-negotiation with the Government and will continue
to focus on maintaining safe and sound uninterrupted operations.
During this period, Management will continue to provide creditors
with regular updates on the re-negotiation and on its operating
and financial performance.

We thank you for your continued support and appreciate your
patience during this crisis as we look to develop the most
equitable solution in the long-term.

This concludes our review of MetroGAS' results for the three-
month period ended September 30, 2002.

Click link to see summary of latest financial statements:
http://bankrupt.com/misc/Summary_Financial_Statements.htm

CONTACT: METROGAS
         Alberto Alfredo Alvarez, President
         William Harvey Adamson, First VP
         Gen. Director Enrique Barruti, HR Director
         Fernando Aceiro New Bus. Director
         Luis Domenech Admin. and Fin. Director

         Their Address:
         G. Araoz de Lamadrid 1360
         1267 Buenos Aires, Argentina
         Phone: (800) 422-2066
         Fax: (201) 262-2541
         Email: info@metrogas.com.ar
         URL: http://www.metrogas.com.ar


SUDAMERIS ARGENTINA: Accepts Mildesa's Purchase Offer
-----------------------------------------------------
Italian bank IntesaBci, which is looking to exit Latin America to
improve its risk-profile and overall performance, accepted an
offer by Argentina's Mildesa group to buy its local banking unit
Banco Sudameris Argentina, Business News Americas reports, citing
a Sudameris statement.

Mildesa group, which is the majority shareholder of Argentina
bank Banco Patagonia, made the offer October 18. The group's
offer includes a re-capitalization of Sudameris Argentina and a
merger with Banco Patagonia, in which IntesaBci will take up a
minority stake.

The divestiture of its Argentine unit is expected to produce
charges of some US$150 million on IntesaBci's consolidated income
statement.

In the statement, Sudameris Argentina said it would proceed to
obtain authorization from the regulatory authorities in Argentina
to complete the transfer. The operation should be completed
before year-end.

Milan-based IntesaBci is disposing of its units in Argentina and
Brazil as well as shedding as many as 8,000 jobs in a bid to
return to profit after it posted an unexpected loss in the second
quarter. It has struggled to reorganize since the EUR9.9-billion
(US$9.6 billion) acquisition of Banca Commerciale Italiana SpA in
1999. Its Latin American unit, Sudameris, and much of its other
international businesses stem from that purchase.

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


TRANSENER: Seeks Minor Increase in Project Funds
------------------------------------------------
Argentine transmission company Transener is looking to increase
funds that would back its two ambitious projects, one to
interconnect Chile and Brazil, and another to supply two mining
projects in Argentina.

The "fondo fiduciario" trust fund currently receives 0.06% of the
value of all transactions on the country's wholesale market
(Cammesa), and uses the funds for transmission projects that
benefit the whole sector. However, according to Transener CEO
Silvio Resnich, the Company considers the proportion too small
and has proposed to increase the figure to at least 0.1%.

Argentina's energy department is expected to make a decision on
the proposal by year-end but according to Resnich, the department
is already considering the proposal.

Transener, which is owned by Pecom Energia and the UK's National
Grid, registered consolidated losses of ARS620.4 million
(US$174.3mn) for the nine months to September 30, 2002, compared
to net profits of ARS51.5 million in the same period of 2001.

Sales revenues during the period decreased 34.4% to ARS220.8
million due to the freeze on power rates.

For the nine months ended Sep. 30, the Company also recorded non-
operating losses of ARS666.3 million, of which exchange rate
differences on liabilities accounted for ARS505.1 million.

Transener defaulted on debt payments in 2002 and holds some
US$460 million in dollar-denominated debt. The Company remains in
default, but in a recent statement, said it "continues working
towards the objective of evaluating the restructuring of its debt
and maintaining fluid
conversation with its creditors."

Morgan Stanley is Transener's financial advisor.

Transener owns the concession to operate the extra high voltage
electricity transmission network in the Argentine Republic. Since
its creation in 1993, the Company has remained a leader in the
field.

CONTACT:  COMPANIA DE TRANSPORTE DE ENERGIA ELECTRICA EN ALTA
          TENSION (Transener S.A.)
          Av. Paseo Colon 728, 6"Piso - (1063)
          Buenos Aires, Argentina
          Tel. (5411) 4342-6925

          Business Development:
          Carlos A. Jeifetz (jeifecar@transx.com.ar)
          Gerardo Baseotto (baseoger@transx.com.ar)
          Tel.: (54-11) 4334-0182 / 4342-6925
          Fax: (54-11) 4342-4861

          MORGAN STANLEY, DEAN WITTER & COMPANY
          1585 Broadway
          New York, New York 10036
          United States
          Phone: +1 212 761-4000
          Home Page http://www.msdw.com


* Argentine Spending Hinders IMF Loan
-------------------------------------
Argentina has yet to obtain the loan it seeks after more than ten
months of negotiations with the International Monetary Fund.

A report from BBC News demonstrates that the country's inability
to control government spending is the main contributor to the
lender's reluctance to grant the country aid, economists say.

The country's federal constitution guarantees both regional and
federal authorities have to cooperate in controlling total
government spending, as the IMF requires.

The IMF had said progress had been made in the negotiations,
though a number of differences remain.  The report also mentions
an IMF statement referring a measure for fighting inflation, a
huge concern in Argentina, which had a history of severe
inflation problems before the 1990s.

The spending in the provinces have to be taken into consideration
as a number of them have funded their spending by issuing what
are in effect separate currencies.

This results in more difficulties for the country's central bank
tp control the amount of cash in circulation.


* Court Suspends Public Utility Rates Hike Anew
-----------------------------------------------
The national administrative court in Argentina had suspended
public meetings discussing utility rates hikes for the second
time.

Business News Americas quoted a representative from Argentine
transmission company, Transener, stating the court suspended the
meetings on grounds that negotiations for rates increases should
not be held under pressure of emergency hearings.

The source added that the court intends hearings to be conducted
through "integrated, contract-based" negotiations.

Economy Minister Roberto Lavagna said that the government in
considering an emergency decree to raise utility rates by 10
percent if the court persists in blocking the meetings.

Earlier, the court had suspended public meetings, saying they are
unconstitutional.

Lavanga reversed a previous ruling, this time allowing energy
regulators to negotiate rates increases.

Rates are currently frozen at their January 2002 levels.

The government finds itself in a dilemma: it needs to increase
hikes to satisfy IMF demands and encourage investment, but
consumer interest groups present strong opposition.

In related news, the government announced a reduction in sales
tax. A 19 percent reduction will take effect within the next 60
days.

The source said this only benefits the consumers.



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

FLAG TELECOM: Case Heard Friday
-------------------------------
Three Bermuda telecom under the Flag corporate group had their
cases heard at the Supreme Court last Friday. The three companies
were: Flag Atlantic Ltd., Flag Atlantic Holdings Ltd. and Flag
Telecoms Holdings Ltd., according to The Bermuda Sun. Their legal
counsel, Appleby Spurling & Kempe had already filed a petition
for the case.

Last month, The Bermuda Sun reported that the Supreme Court
ordered a meeting for the creditors Flag Telecom Holdings Ltd.
and Flag Ltd. to vote on a proposal for a settlement scheme.

Flag filed for Chapter 11 bankruptcy protection in the United
States last April, adding to the number of telecommunications
companies that failed due to mounting debt and industry-wide
over-capacity and slumping demand.

Companies in Bermuda were particularly affected. Among them
Telebermuda International, Globe Net and Global Crossing have
failed.

Flag filed a reorganization plan in a New York Bankruptcy court,
aiming to completely restructure the business two months after.

Flag's board of directors authorized the bankruptcy filing after
a syndicate of banks sped up repayment of its bank debt owed by
is unit Flag Atlantic Ltd.

The move had triggered a cross default in outstanding senior
notes.

CONTACT:  FLAG TELECOM HOLDINGS LTD, BERMUDA
          Head Office
          Cedar House
          41 Cedar Avenue
          Hamilton
          Bermuda
          HM12
          Tel  +1441 296 0909
          Contacts:
          Andres Bande, Chairman & Chief Executive   
          Edward McCormack, Deputy Chairman   
          Michel Cayouette, Chief Financial Officer


GLOBAL CROSSING: Details Asia Global Plan, Chapter 11 Filing
-----------------------------------------------------------------------
Global Crossing issued the following statement Monday after Asia
Global Crossing's announcement that it had signed a definitive
agreement to sell substantially all of its operations and assets
to Asia Netcom, a new Asia-based telecommunications company
founded by a consortium of investors, and that certain Asia
Global Crossing entities had commenced Chapter 11 cases in the
United States Bankruptcy Court for the Southern District of New
York and coordinated proceedings in the Supreme Court of Bermuda.

"Asia Global Crossing has said that it will continue to conduct
its business as usual while it reorganizes under Chapter 11, and
therefore Global Crossing expects that its worldwide operations
will also continue as usual and customers will not experience any
changes in their service."

ABOUT GLOBAL CROSSING
Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York (Bankruptcy Court) and
coordinated proceedings in the Supreme Court of Bermuda (Bermuda
Court). On the same date, the Bermuda Court granted an order
appointing joint provisional liquidators with the power to
oversee the continuation and reorganization of the Bermuda-
incorporated companies' businesses under the control of their
boards of directors and under the supervision of the Bankruptcy
Court and the Bermuda Court.

On April 23, 2002, Global Crossing commenced a Chapter 11 case in
the Bankruptcy Court for its affiliate, GT UK, Ltd. On August 4,
2002, Global Crossing commenced a Chapter 11 case in the United
States Bankruptcy Court for the Southern District of New York for
its affiliate, SAC Peru Ltd. On August 30, 2002, Global Crossing
commenced Chapter 11 cases in the Bankruptcy Court for an
additional 23 of its affiliates (as specified in the July Monthly
Operating Report filed with the Bankruptcy Court) in order to
coordinate the restructuring of those companies with its
restructuring. Global Crossing has also filed coordinated
insolvency proceedings in the Bermuda Court for those affiliates
that are incorporated in Bermuda. The administration of all the
cases filed subsequent to Global Crossing's initial filing on
January 28, 2002 has been consolidated with that of the cases
commenced in Bankruptcy Court on January 28, 2002.

Global Crossing's Plan of Reorganization, which it filed with the
Bankruptcy Court on September 16, 2002, does not include a
capital structure in which existing common or preferred equity
would retain any value.

CONTACT: GLOBAL CROSSING
         Press Contacts:
         Becky Yeamans
         +1 973-410-5857
         Rebecca.Yeamans@globalcrossing.com

         Tisha Kresler
         +1 973-410-8666
         Tisha.Kresler@globalcrossing.com

         Kevin Burgoyne
         +1 305-808-5925
         Kevin.Burgoyne@globalcrossing.com

         Mish Desmidt
         +44 (0) 118 908 6788
         Mish.Desmidt@globalcrossing.com

         Analysts/Investors Contact
         Ken Simril
         +1 310-385-3838
         investors@globalcrossing.com


TYCO INTERNATIONAL: Names New Directors
---------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) announced
Monday that Jerome York, Chairman, President and CEO of Micro
Warehouse, Inc., and Mackey J. McDonald, Chairman, President and
CEO of VF Corporation, have been appointed to the Board of
Directors.  Mr. York will fill the seat vacated by Lord Michael
Ashcroft and Mr. McDonald will serve in place of James S. Pasman,
Jr.

Lord Ashcroft and Mr. Pasman, who recently submitted letters of
resignation to Tyco Chairman and Chief Executive Officer Ed
Breen, are the first Tyco directors to resign following the
Board's unanimous decision not to nominate or support for re-
election at the company's 2003 annual meeting any of the nine
current Directors who were members of the Board prior to July of
this year.

Tyco Chairman and Chief Executive Officer Ed Breen said: "With
these recent additions to the Board, Tyco is well on its way
toward the creation of a new Board of Directors that will
complement our new management team.  I would like to thank
Michael Ashcroft and James Pasman for their many years of service
to Tyco and its predecessor companies.  I appreciate their role
in advancing our efforts to speed the transition to the
appointment of a new Board."

Mr. Breen continued, "Jerry York and Mackey McDonald are highly
respected and experienced business leaders, and I look forward to
working closely with them to set the strategic vision for this
company.  They will play an important role in helping the Board
restore the confidence of Tyco shareholders, investors, customers
and the capital markets, and in building on the many strengths of
this business."

Lord Ashcroft said, "After 18 years of service on the Board, it
was time for me to move on and allow the company's new management
team to do its job. I am pleased that the Board agreed with my
suggestion of appointing as advisors to the Board two current
directors.  I have, however, told the Board that I do not wish to
serve in this capacity because there are others more suitable
than I for this role.   Looking ahead, I wish the company well in
successfully meeting the challenges of rebuilding Tyco."

Mr. Pasman said, "I believe that a new Board will help propel
Tyco to the levels of operating performance, shareholder value
and investor confidence that the company deserves.  Even though I
am leaving my position as director, I will always remain a
staunch supporter of this business and the people of Tyco."

Mr. York said, "This is a great time to be joining the Tyco
Board.  Tyco has solid businesses and the potential for
significant growth.  I am excited about working with Ed Breen and
the rest of the new Board to establish the highest standards of
corporate governance, to articulate Tyco's business strategy
going forward and to develop long term plans to leverage the
company's operational and market advantages."

Mr. McDonald said, "The directorship is an important
responsibility at this juncture in the company's history, and I
look forward to participating in the work ahead to enhance Tyco's
reputation as a leader in business and in business ethics. Tyco's
new Board faces a challenge and a rare opportunity to take the
rigorous steps that will set a positive benchmark for corporate
culture across the nation."

The nominations of Messrs. York and McDonald to the Tyco Board
were previously announced on September 12, 2002.  In addition to
Messrs.York and McDonald, recently elected directors include Mr.
Breen and Lead Director Jack Krol. In total, four other nominees
have been selected by the Board.  These four nominees will join
the Board when there are additional resignations from existing
directors, and they will stand for election to the Board at the
Company's next annual meeting.

About Jerome York

Mr. York is the Chairman, President and CEO of Micro Warehouse,
Inc., a reseller of computer products through catalogs, the
Internet, and telemarketers.  Micro Warehouse offers more than
30,000 items and distributes more than 75 million catalogs
worldwide each year.  Before Mr. York joined Micro Warehouse he
was the Vice Chairman of Tracinda Corporation from 1995 to 1999,
Chief Financial Officer of IBM Corporation from 1993 to 1995 and
held various positions at Chrysler Corporation from 1979 to 1993.
Mr. York graduated with a B.S. degree from the United States
Military Academy, and received an M.S. from the Massachusetts
Institute of Technology and an M.B.A. from the University of
Michigan.

About Mackey McDonald
Mr. McDonald serves as the Chairman, President and CEO of VF
Corporation, a designer, manufacturer and marketer of jeanswear,
intimate apparel, playwear, workwear and daypacks.  VF has a
number of principal brands including Lee, Wrangler, Riders,
Rustler, Vanity Fair, Bestform, Lily of France, Healthtex,
Jansport and The North Face. Mr. McDonald began his tenure at VF
Corporation in 1982 and was named Chairman, President and CEO in
1998.

He also was a Director, Operations at Hanes Corporation. Mr.
McDonald graduated from Davidson College and received his M.B.A.
in Marketing from Georgia State University.

ABOUT TYCO INTERNATIONAL LTD.

Tyco International Ltd. is a diversified manufacturing and
service company.  Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves.  Tyco also holds strong
leadership positions in medical device products, and plastics and
adhesives.  Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.

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


TYCO: Ionics Denies Tyco Claim
------------------------------
Ionics Inc. is contesting Tyco Electronics Corporation's demands
for a US$5.6 million payment related to a US unit Ionics closed
this year, reports The Bermuda Sun.

In a statement to the Manila stock exchange, Ionics said that a
letter of guarantee, which Tyco Electronics presented, "appears
to be a forgery".

Ionics is the largest traded electronics maker in the
Philippines. Its shares fell by 5.6 percent after the news broke
out.

Tyco Electronics, owned by the controversial Tyco International
Ltd., claims that Ionics Circuits (USA) Inc. owes the, US$3.6
million in unpaid bills and US$2 million in cancellation charges.

Ionics Vice President Judy Qua said that the signature in the
letter Tyco presented appears to be a forgery of the signature of
former Ionics vice president for finance Bonifacio Domingo.

According to the report, Ionics is seeking a judicial declaration
that it's not liable to Tyco for debts of Milpitas, California-
based Ionics Circuits, its statement said.

Tyco and two other companies have filed a petition seeking
involuntary bankruptcy against Ionics Circuits in bankruptcy
court in California. The two other companies were mentioned as
Photocircuits and MCX.

Ionics had been trying to sell its unit in the United States,
which according to Qua has few assets as most of its equipments
were leased.

CONTACT:  IONICS INC.
          Head Office
          65 Grove Street
          Watertown
          MASSACHUSETTS
          United States
          02472
          Tel  +1 617 926-2500
          Fax  +1 617 926-3760
          Web  http://www.ionics.com
          Contacts:
          Arthur L. Goldstein, Chairman, President & CEO   
          William E. Katz, Executive Vice President   



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

AES SUL: Postpones Debenture Talks
----------------------------------
Brazilian distributor AES Sul informed the Sao Paulo stock
exchange that it is delaying renegotiation talks with holders of
BRL187.5 million (US$53mn) in first issue debentures until
November 29, reports Business News Americas.

The local unit of U.S.-based AES Corp. wants to postpone the
expiry of the first issue of debentures by one year, from
December 1, 2003 to December 1, 2004. Throughout the renegotiated
period, AES Sul will continue to pay existing interest rates at
the interbank depositary rate, plus 4.5% a year on the BRL112.5
million first series; and the IGPM inflation index, plus 14.9% on
the second series issue of BRL75 million.

AES Sul said it plans to make full payment of interest and other
related charges on December 1, 2002, as agreed in the original
terms. It will also make an extraordinary interest payment
equivalent to 1.7% of the total debt as of December 1, 2002.

AES would then pay on June 1 and December 1, 2003, 20% of the
accumulated interest payments related to both series over the
previous six months.

The remaining 80% of the interest charges due on those two dates
would be added to the principal, amortized at 8.2% a year. The
total amount outstanding will be repaid in 12 monthly
installments from December 1, 2003.

AES Sul will also pay another premium of 1.25% on December 1,
2002.

Brazil's Planner Corretora de Valores is acting as the fiduciary
agent.

AES Sul recently had its debt rating downgraded to Caa1 from B3
by Moody's Investors Service. The rating outlook is negative.

Moody's is concerned about the Company's ability to refinance
upcoming debt maturities in an environment in which new financing
has become more difficult due to the effects of the devaluation
of the Brazilian Real against the dollar.

The Brazilian Real has deteriorated substantially against the US
dollar. AES Sul currently has a US$300-million US dollar
denominated bank loan. The Company's near term liquidity position
appears strained and is dependent upon its banks' willingness to
extend the maturity of the US$300 million loan, as well as its
ability to restructure the repayment of the BRL187.5-million
debenture.


COSIPA: 3Q02 Net Loss Not As Bad As Expected
--------------------------------------------
Cosipa, a flat steel maker based in Sao Paulo, Brazil reported a
net loss of BRL543 million (US$150 million) for this year's third
quarter.  Last year, the Company posted net profits of BRL4.1
million for the same period.

According to Business News Americas, the devaluation of the local
currency is one of the main factors causing the Company's loss,
although exports create a natural hedge against its dollar-
denominated debts.

The devaluation added to the 45 percent growth of the Company's
net debt since the end of last year's third quarter. As of the
end of September this year, net debt was pegged at BRL5.9
billion.

However, despite the poor figures, an analyst for BBA investment
bank told BNAmericas that these were actually better than what
was expected.

According to the report, net revenue rose 65% to 693mn reais in
the third quarter compared to 3Q01, while Ebitda increased 85% to
223mn reais in the same comparison. An Ebitda margin of 32%, up
from 21% in 3Q01, stems from "higher prices on the international
market and the impact of the devaluation of the real against the
dollar," the analyst said.

Total sales also went up by 44 percent to 889,000 tons for the
third quarter, compared to last year's report. Foreign sales of
slabs increase exports to 375,000, almost four times that of last
year.

Cosipa is controlled by steelmaker Usiminas, based in Belo
Horizonte.

CONTACT:  Usinas Siderurgicas de Minas Gerais Usiminas PN A
          Rua Prof. Jose Vieira de
          Mendonca, 3011
          Engenheiro Nogueira
          31310-260 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3499-8000
          Fax  +55 31 3499-8475
          Web  http://www.usiminas.com.br
          Contact:
          Jose Augusto Muller de Oliveira Gomes, Chairman


NET SERVICOS: Announces Third Quarter 2002 Financial Results
------------------------------------------------------------
Net Servicos de Comunicacao S.A., former 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
(Vírtua) and multimedia and data communication services for
corporate networks, announced Friday its earnings results for the
third quarter of 2002 (3Q02).

- Net revenue for 3Q02 was US$ 92.9 million, a 16.9% decrease
when compared to US$ 111.7 million in 2Q02. This quarter was
positively impacted by the Region 3 (Southern Brazil) monthly fee
readjustment in September, by the PPV sales of the Brazilian
Soccer Championship and by monthly fee readjustments in Regions 1
(Sao Paulo) and 2 (Rio de Janeiro) that took place in June and
impacted all months of this quarter. However, when translate to
American dollar this increase in Net Revenues has been completely
offset by the Real depreciation.

- EBITDA reached US$ 19.9 million in 3Q02, a 26.7% decrease from
US$ 27.2 million in the previous quarter. This result was mainly
driven by the Real depreciation, the higher programming expenses
in local currency and also by the Brazilian Soccer Championship
PPV expenses. EBITDA margin was 21.4% in the quarter, a decrease
from 24.3% in 2Q02. In the first nine months of 2002, EBITDA
reached US$ 78.4 million, a 16.4% decrease compared to the first
nine months of 2001, and EBITDA margin fell to 24.2% compared to
24.7% in the previous year.

- Depreciation and Amortization expenses decreased 26.1% reaching
US$ 17.3 million in this quarter compared to US$ 23.4 million in
2Q02. The depreciation rate in 2Q02 was extraordinarily reduced
to compensate a higher intermediary rate for 1Q02, before a
definitive depreciation rate was determined. Disregarding such
adjustment in 2Q02, there would be no significant change in
depreciation and amortization amounts other than the Real
depreciation.

- Following the lower EBITDA, Operating Income (EBIT) decreased
to US$ 2.4 million compared to US$ 4.6 million in 2Q02, despite
lower depreciation expenses.

- Net debt decreased 44.0% to US$ 310.1 million in this quarter
from US$ 554.0 million. The Real depreciation, the conversion and
delivery of debentures in the capitalization process and the
retirement of the Zero Coupon Guaranteed Notes and BNDES loans
were the main reasons of this decrease.

- Net loss was US$ 116.8 million in the quarter, a 1.1% increase
compared to US$ 115.5 million in the previous quarter. The Real
depreciation increased losses on exchange rate but also reduced
financial expenses denominated in local currency, and those
variations offset each other.

- Pay-TV ARPU (Total Gross Revenues excluding Sign-on and hookup
revenues divided by the average number of connected subscribers)
decreased 13.7%, reaching US$ 25.71 compared to US$ 29.79 in
2Q02. This result is a consequence of the Real depreciation,
despite the fee readjustments and PPV sales.

Broadband ARPU was US$ 18.48, a decrease of 23.0% compared to an
ARPU of US$ 24.00 in the previous quarter, mainly due to the Real
depreciation. Furthermore, the payment of sign-on fees by ISPs
adopting the new Vírtua model had a positive influence on
broadband revenues in 2Q02. Since no new ISP joined the model in
3Q02, only the rebates from ISPs, related to the number of
subscribers, were recognized.

OPERATING PERFORMANCE
- The company maintains its strategy of being extremely selective
regarding new sales, which was adopted in earlier quarters. As a
consequence, the subscriber base was reduced one more time, 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.

- 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 annualized churn rate in 3Q02 was 17.9% compared to 19.6%
in the previous quarter. The selectivity in sales and the
company's new strategy to focus on improved communication and
costumer satisfaction has also contributed to reduce the churn
rate during the last two quarters.

- Due to the Call Center outsourcing to EDS, effective in August,
the company faced some difficulties, which are common during
transition periods. After this initial period, results have
already shown a significant improvement in customer service.

- This improvement also influenced the increase of Brazilian
Soccer Championship pay-per-view sales, which were 5.5% higher,
in comparison to the same period of 2001, reaching more than
94,000 sales.

- Total net sales of Vírtua 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 in this quarter. As anticipated in the release of 2Q02
results, 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%.

- Vírtua's annualized churn rate was 19.9%, quite low when
compared to the 34.3% in 2Q02. The change in the control system
in Regions 1 and 2 also had a negative impact in 3Q02.
Disregarding that extraordinary change, churn would have been
18.5%.

- 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).

- Gross revenues totaled US$ 112.7 million, decreasing 16.4%
compared to US$ 134.9 million in the previous quarter. Gross
revenues are comprised of the following:

1. Pay-TV subscription revenues decreased 17.7% reaching US$ 97.1
million. Pay-TV revenues were positively affected by fee
readjustments implemented in June for Regions 1 and 2, therefore
impacting all months of this quarter, and by the fee readjustment
implemented in September in Region 3, more than compensating the
decrease in the number of subscribers. However, this increase in
Net Revenues has been completely offset by the Real Depreciation.

2. Average hook-up revenue. (Per new subscribers) reached US$
43.99 a 21.4% decrease compared to US$ 55.99 in the previous
quarter. The real depreciation offset the effects of the new
pricing policy adopted in 2Q02, when the hook up fee was
equalized for all selections.

3. Pay-Per-View revenues (PPV) were positively impacted by the
Brazilian Soccer championship sales, in line with the Company's
expectations, due to the seasonal characteristic of the product.
PPV revenues reached US$ 5.0 million, an increase of 84.2%
compared to 2Q02 and 19.1% lower when compared to 3Q01. Despite
higher sales of the Brazilian Soccer Championship in 2002,
revenues in 3Q02 were lower than the previous year due to the
closing of PSN sport channel in 2Q02 and the Real depreciation.

4. Corporate network revenues reached US$ 3.8 million, a decrease
of 25.7% compared to US$ 5.2 million in the previous quarter.
This result is mainly due to the Real depreciation and to renewal
of some of the contracts for amounts lower than previously
practiced.

5. Broadband revenues were US$ 2.9 million in 3Q02, 23.8% below
the US$ 3.8 million recorded in the previous quarter. The higher
revenues in the previous quarter, due to the payment of sign-on
fees by ISPs, as a consequence of the implementation of the new
Vírtua model, and the Real depreciation influenced negatively
this quarter's results. This quarter only the rebates from ISPs,
related to the number of subscribers, were recognized.

- Services and other taxes reached US$ 19.9 million, compared to
US$ 23.2 million in 2Q02, a 14.4% decrease, mainly as a
consequence of the Real depreciation.

- Net Revenues were US$ 92.9 million, a 16.9% decrease compared
to 2Q02 as a consequence of the aforementioned reasons.

- Direct Operating Expenses were US$ 55.5 million, 14.7% lower
than the US$ 65.1 million registered in the previous quarter. The
main reasons for such performance are as follows:

1. Programming and Royalties were US$ 35.2 million compared to
US$ 39.5 million in 2Q02, a 10.9% decrease. This decrease is
explained by the Real depreciation, which offset the seasonal
impact of higher expenses related to the rights of the Brazilian
Soccer championship and the impact of higher costs in Reais of
dollar-linked programming expenses. When compared as a percentage
of net revenues, these expenses raised to 37.9%, compared to
35.4% in the previous quarter. For this reason, the Company is
still committed to solve this question on a permanent basis in
negotiations with its programmers.

2. Network Expenses totaled US$ 5.8 million, a 12.1% decrease
over the US$ 6.6 million registered in the previous quarter.
These lower expenses are the result of the Real depreciation, as
a slight increase in parts, fuel and materials costs negatively
impacted the results in Reais.

3. Customer Relations were US$ 2.1 million this quarter compared
to US$ 3.7 million in 2Q02, a 41.7% decrease, following the Real
depreciation and the end of promotional campaigns related to the
World Cup.

4. Payroll and Benefits expenses totaled US$ 7.8 million, a 19.5%
decrease over the previous quarter. The Real depreciation and the
reduction in payroll expenses offset one-time expenses related to
the lay-off of employees due the outsourcing of the call center.

5. Other Operating Expenses decreased 18.8% to US$ 4.7 million,
because the Real depreciation and offset third parties services
cost that increased due to the outsourcing of the Call Center to
EDS.

- Selling, General and Administrative Expenses (SG&A) were US$
17.4 million, a decrease of 10.1% over the previous quarter. The
main reasons for this performance were:

1. Selling Expenses totaled US$ 0.5 million, a 44.0% decrease
over the previous quarter as a consequence of both Real
depreciation and the reduction in the sales team following the
new sales strategy implemented by the Company.

2. General and Administrative Expenses reached US$ 13.7 million,
compared to US$ 15.2 million in the 2Q02, a 9.4% decrease. This
decrease is a consequence of the Real depreciation, once the
launch of JDE system this quarter resulted in implementation
expenses. In addition, there was an increase in expenses with
system maintenance, since in August 2002 the company initiated a
project to integrate its existing 98 systems and 12 databases,
which were acquired as a result of the acquisitions of cable
operators through the years. The company is building a new IT
architecture, with 6 modules, which will result in 45 fully-
integrated systems and one single database. One of the main
targets of this process, which will be consolidated until the 2nd
half of 2003, is the satisfaction of subscribers and improvement
of customer service. These changes will produce savings of R$ 26
million, i.e., 35% of forecasted IT expenses for 2003.

3. Bad Debt Expenses reached US$ 3.0 million, or 3.2% of net
revenues, a 4.9% increase over the previous quarter. After the
implementation of JDE, the company identified some amounts that
had already been withdrawn from the subscriber control system but
were still due at the "Accounts Receivable" of Belo Horizonte
operation. The adjustment of this situation had a negative impact
in the bad debt expenses of 3Q02.

4. Other SG&A expenses were US$ 0.2 million, a decrease in
relation to the previous quarter due to the Real depreciation.

- Consolidated EBITDA was US$ 19.9 million, compared to US$ 27.2
million and the EBITDA margin was 21.4% in the 3Q02 compared to
24.3% in 2Q02. The Real depreciation and the higher costs of
programming and royalties as a percentage of net sales were the
main drivers of such performance. The EBITDA breakdown by
operating segment in 3Q02, shown on the table on the last page,
is as follows:

1. Pay-TV EBITDA was US$ 19.3 million, a 24.3% decrease compared
to US$ 25.5 million in the previous quarter. This decrease was a
consequence of higher programming, G&A and bad debt expenses in
local currency, and was also affected by the Real depreciation.

2. Broadband EBITDA fell 43.7%, totaling US$ 0.2 million compared
to US$ 0.4 million in 2Q02, mainly due to the Real depreciation
and to the absence of sign-on fees from ISPs in the quarter.

3. Corporate Networks EBITDA fell to US$ 0.4 million from US$ 1.3
million in the previous quarter, a decrease of 68.5%. In addition
to the Real depreciation and lower net revenues, general and
administrative expenses in local currency increased in comparison
to 2Q02.

- Depreciation and amortization reached US$ 17.3 million in 3Q02,
a 26.1% drop in relation to the US$ 23.4 million registered in
the previous quarter. The Real depreciation accounts for such
decrease, once the depreciation rate in 2Q02 was extraordinarily
lower because it compensated a higher intermediary rate for 1Q02,
before a definitive depreciation rate was determined.
Disregarding such adjustment in 2Q02, the only significant change
in depreciation expenses would be related to the Real
depreciation.

- Operating Income (EBIT) reached US$ 2.8 million, a 40.1%
decrease over the US$ 4.6 million registered in the previous
quarter, due to the aforementioned results.

- Net financial result11 was US$ 118.1 million, practically
stable in relation to the previous quarter. This result is
originated as follows:

1. Monetary indexation, net reached US$ 12.2 million, a 5.4%
decrease compared to the
US$ 12.9 million registered in the previous quarter. This
reduction is a consequence of the Real depreciation and of the
significant amortization of debentures of the 2nd issue this
quarter due to the capitalization process, which counterbalanced
the increase of the IGP-M inflation index.

2. Loss on exchange rate, net12 was US$ 85.0 million, compared to
US$ 67.3 million, a 26.3% increase. This increase reflects the
36.9% Real depreciation this quarter, compared to a depreciation
of 22.4% in the previous quarter.

3. Debt financial expenses13 were US$ 16.5 million, a 23.6%
decrease over the previous quarter (US$ 21.6 million). This
performance basically reflects the Real depreciation.

4. Other financial expenses totaled US$ 13.3 million, compared to
US$ 20.7 million in the previous quarter, a 35.5% decrease. This
decrease basically reflects the Real depreciation. The
restatement of the AFACs had a lower impact in 3Q02 due to the
completion of the capitalization, but this was offset by expenses
related to the offering of shares.

5. Financial income reached US$ 9.1 million, a 75.9% increase
compared to US$ 5.2 million in 2Q02, basically due to higher cash
positions and gains from hedges.

- Net loss was US$ 116.8 million (US$ 0.06 loss per share),
slightly higher than the US$ 115.5 million (US$ 0.41 loss per
share) registered in the 2Q02, as a consequence of the
aforementioned factors. The reduction in the loss per share is
due to the capitalization process concluded in September, which
significantly increased the number of shares.

- At the end of 3Q02 the company's total debt was US$ 339.5
million, a decrease of 40.5% compared to US$ 570.5 million in
2Q02. The reduction is due to the Real depreciation and to the
end of the capitalization, which resulted in the delivery and
conversion of 2,636 debentures of the 2nd Issue and the
retirement of the "Zero Coupon Guaranteed Notes" and the BNDES
loans.

-??The cash position grew to US$ 29.4 million in 3Q02 from US$
16.6 million in the previous quarter, resulting in a net debt of
US$ 310.1 million, a reduction of 44.0% compared to US$ 554.0
million in 2Q02.

- Net amortizations, excluding the delivery and conversion of
debentures of the 2nd Issue, totaled US$ 77.9 million during the
3Q02. The "Zero Coupon Guaranteed Notes" represented US$ 45.7
million of that amount, while payments of BNDES loans totaled US$
14.9 million and other short-term obligations added up US$ 17.3
million. Furthermore, interest expenses during the quarter were
US$ 12.4 million, where US$ 6.3 million were related to "Zero
Coupon Guaranteed Notes, US$ 1.8 million, to convertible
debenture and US$ 1.1 million to the Syndicated Loan-Net Sul
Notes.

- The conversion of 522 debentures of the 2nd Issue represented
US$ 21.6 million in principal amortization and the delivery of
2,114 debentures totaled US$ 93.5 million in principal and
interest. The delivered debentures are currently held in
Treasury.

- August 30th was the deadline for the exercise of the US$ 32
million Net Sul Notes put options. From this total, the company
was previously notified that Notes in the amount of US$ 7.7
million and representing 24% of the total put amount would be
exercised. On October 30th, settlement date of the anticipated
withdrawal, those Notes were acquired in the secondary market.

- Short-term debt was 27.3% of total debt by the end of the
quarter, a decrease compared to 2Q02, when it accounted for 37.8%
of total debt. The decrease is due to the retirement of the Zero
Coupon Guaranteed Notes and because US$ 32 million regarding
series B and C of Net Sul Notes, previously recorded as short-
term debt, were reallocated to long-term debt according to the
expiration of the exercise date of the put option.

- Dollar-linked debt increased to 72.6% of total debt, from 57.8%
in the previous quarter. The conversion and delivery of
debentures and the depreciation of the real against the US dollar
are responsible for such increase.

- At the end of 3Q02, 23% of short-term dollar-denominated debt
was hedged against currency devaluation, including principal and
interest.

Subsequent Events
As previously announced, the Company had proposed a financial re-
equation of certain of its debt due in 2002 and 2003 in order to
achieve certain objectives, particularly to reach a minimal
refinancing risk in those years adjusted to its cash flows. The
Company believed that the proposed re-equation would achieve its
stated objectives and would permit the Company to move to a
sustainable operational and financial position and to retain
sufficient liquidity, if the financial markets became unavailable
to it. However, since the time that the Company originally
proposed the financial re-equation, the financial markets in
Brazil have continued to deteriorate and the real has continued
to devaluate relative to the U.S. dollar, which is the currency
in which a substantial portion of the Company's debt and
obligations is denominated.

As disclosed in a "Fato Relevante", dated October 29, 2002, the
Board of Directors held a meeting on that date to review the
progress of the Company's proposed financial re-equation of
certain of its debts due in 2002 and 2003. On that occasion, the
Board of Directors, having acknowledgment of certain negotiations
relating to the financial re-equation process were still ongoing
and taking into consideration the significant changes in the
financial and exchange markets since the definition of the
financial reequation, recognized the necessity for evaluate
alternatives that make possible a suitable conclusion of the re-
scheduling of certain of its debt in order to achieve the initial
objectives traced by the Company. This is has been implemented by
the Company. So, the General Shareholders Meeting dated October,
28 and October, 30, could not deliberate on the documentation
final conditions relating to the re-equation.

To see financial statements:  
http://bankrupt.com/misc/Net_Servicos.pdf

CONTACTS: Marcio Minoru Miyakava
          (5511) 5186-2811
          minoru@netservicos.com.br

          Lu Yuan Fang
          (5511) 5186-2637
          lfang@netservicos.com.br


VARIG: Management Hands BNDES Restructuring Plan
------------------------------------------------
The management of Viacao Aerea Rio-Grandense SA (Varig) presented
its financial restructuring plan to the development bank BNDES in
an attempt to save the ailing Brazilian flag airline.

The management, according to a report by Jornal do Comercio, took
the step even without prior approval from pension fund, Fundacao
Ruben Berta, which controls 87% of Varig's stock. The non-profit
foundation, according to critics, has long hampered management.

Varig, Latin America's largest carrier, is struggling with debts
amounting US$900 million. It hired Bain & Co., KPMG and the
Brazilian law firm of Machado Meyer and Tavares Paes to assist it
in a restructuring effort slated to conclude in December.

In the first half of this year, Varig posted a BRL1.04-billion
loss amid rising dollar-denominated operating costs and greater
competitive pressure from upstarts like discount carrier Gol
Transportes Aereos.

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

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

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

          BAIN & CO
          Primary Contact: Wendy Miller
          Two Copley Place, Boston, MA 02116
          USA
          Phone: +1-617-572-2000
          Fax: +1-617-572-2461
          Email: miles.cook@bain.com
          URL: http://www.bain.com



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

ALESTRA: S&P Lowers Corporate Credit Rating to 'D'
--------------------------------------------------
Standard & Poor's Ratings Services said Monday it lowered its
local and foreign currency corporate credit ratings on Mexican
telecom provider Alestra S. de R.L. to 'D' from 'CC' following
missed interest payments on the company's US$300 million 12.625%
senior notes due May 15, 2009, and US$270 million 12.125% senior
notes due May 15, 2006.

The ratings on the notes were also lowered to 'D' from 'CC'. The
company's debt totaled US$621 million, as of September 2002.

According to the original terms of the indentures, Alestra has 30
days to make the interest payments. "Still, Standard & Poor's
does not expect that the company will make the payments in the
grace period," stated Standard & Poor's credit analyst Patricia
Calvo.

Alestra filed a registration statement with the Securities &
Exchange Commission on Sept. 23, 2002, for a repurchase and
exchange offer of its bonds. Standard & Poor's expects, that if
successful, the exchange offer will represent a deep discount to
the liquidation preference of the existing bonds. Subsequent to
completion of the exchange offer, the corporate credit rating
will be reassessed and the final determination will depend on the
amount and terms of debt repurchased and the tenor of its
existing debt. Still, Standard & Poor's expects that weak market
conditions and a heavy debt burden for the company will prevail.

Alestra is 49%-owned by AT&T Corp. (BBB+/Watch Neg/A-2) and 51%-
owned by Onexa S.A. de C.V. (owned by Grupo Alfa S.A. de C.V. and
Grupo Financiero BBVA Bancomer S.A. de C.V.). The company's
network covers 170 cities throughout Mexico, approximately 83% of
the Mexican long-distance market in terms of lines. Long-distance
related revenues represented 86% of its US$430 million total
revenues during 2001, and 79% of its US$301 million revenues
reported as of Sept. 30, 2002, a relative decrease explained by
the company's promotion of higher value-added services.

ANALYST: Patricia Calvo, Mexico City (52) 55-5279-2073


BITAL: Some MXN330M Will Be Taken From Reserves
-----------------------------------------------
Three courts ordered to seize part of Grupo Financiero Bital's
reserves in order to pay a client, to whom the bank owes due to
its negligence, reports Mexico City daily el Economista.

The client's legal representative, Jorge W. Kuntzy, said that he
now has the judge's order to request the funds from the Bank of
Mexico and that the money could be paid in eight working days.

According to Kuntzy, the accumulated interest up to 2002,
calculated at MXN330 million (US$32.2 million) that the bank is
refusing to pay will be taken from the its reserves.

The trouble started back 1996 when the client, who asked not to
be named, deposited five checks in Bital for a total of MXN4.22
million (US$412,000). Subsequently, a check for MXN210,000 was
drawn and paid to an automobile company. A few days later, Bital
asked the company to return the money in exchange for the check
because it claimed that the woman's account was frozen.

After a series of complications, the client's lawyer finally
managed to determine the exact balance and went through various
courts and several years of legal action to recover the money,
which ended with the latest move by the courts.

Meanwhile, HSBC Holdings Plc, Europe's biggest bank by market
value, continues in its pursuit to take over Bital. The UK-based
bank expect at least 90% of the Mexican bank's shareholders to
sell their stock in a US$1.14-billion takeover offer.

HSBC is reportedly offering to buy shares from shareholders of
Bital, at US$1.20 each, or 20% more than the shares were trading
at the time of the Aug. 21 offer. Bital's shares were unchanged
at MXN12.1 pesos (US$1.18). The tender offer expires November 22.

Bital board has advised shareholders that the offer is
financially sound and, given that it covers 100% of the group's
shares, also safeguards the rights of the minority shareholders.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax: 57.21.26.26
          E-mail: ricaggs@bital.com.mx


GRUPO IUSACELL: Retains Morgan Stanley as Financial Advisor
-----------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) announced
Monday that it has retained Morgan Stanley and Co. Incorporated
(Morgan Stanley) as a financial advisor. Morgan Stanley will
advise the Company on various debt restructuring alternatives.

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
                    Email: russell.olson@iusacell.com.mx

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


GRUPO IUSACELL: Moody's Downgrades Ratings
------------------------------------------
Moody's downgraded its rating of Grupo Iusacell from "Caa2" to
"C" and cut the rating of the senior, non-guaranteed debt of
Grupo Iusacell Celular, from "B3" to "Ca".

Moody's, in a press statement, attributed the downgrades to
Iusacell's recent announcement of a plan to restructure its debt,
where it is unlikely that there will be additional financial
support from Verizon or Vodafone. In addition, Moody's is also
concerned that Iusacell's financial flexibility will continue to
deteriorate.

The additional weakening of the financial ratios during the third
quarter also played a large part in the lowered ratings, as did
the firm's incapability of reversing the loss of market against
Telcel and other competitors. The new ratings show that Moody's
believes there is a risk of default and that bondholders could
suffer significant losses.


GRUPO IUSACELL: Shares Plummet On Concern About Restructuring
-------------------------------------------------------------
Grupo Iusacell saw its shares plunge 15% to 54 centavos (5 U.S.
cents) after it announced that it has hired Morgan Stanley to
help restructure debt.

Bloomberg indicates that analysts are apprehensive about the
Company's ability to successfully restructure its debt, which
according to Standard & Poor's total about US$810 million, amid a
tough economic environment.

"It's becoming a tougher market for Iusacell to survive in," said
Patrick Grenham, a telecommunications analyst at Salomon Smith
Barney Inc. "There is a possibility that they could restructure
the debt and that equity holders could get out of it, but we
wouldn't be prepared to buy on the basis of that right now."

Earlier this month, S&P lowered Iusacell's credit rating three
levels to CCC+. The rating on Iusacell is now five levels above
default.

Iuscell's shares, Bloomberg reveals, have fallen 85% this year.



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

SIMSA: Phelps Dodge Selling Interest To Galloway
------------------------------------------------
Arizona-based miner Phelps Dodge is getting rid of its 40% stake
in San Ignacio de Morococha (Simsa), a Peruvian lead-zinc miner
that went into a form of bankruptcy protection late last year
with US$18 million in debt.

According to the Area Minera online service, Phelps Dodge, the
world's number two copper miner, decided to sell its ownership in
Simsa to Galloway Investment. The transaction will leave Galloway
Investment with 54.17% of Simsa and Minera AV with 45.83%. Both
companies belong to Peru's Grupo Arias Vargas.

Phelps' decision follows fruitless attempts to have Simsa
declared insolvent on belief that Simsa's US$7.3-million
restructuring plan, which gained approval from creditors in
August, was unviable given weak metal prices.

The plan includes a strategic alliance with Swiss natural
resources company Glencore under which Simsa will sell Glencore
its Monobamba I and II electric generators and its Callao mineral
deposit for a total of US$6 million.

The agreement gives Simsa the right to buy back the assets.

Glencore will provide a further US$500,000 via zinc concentrate
purchases while the trading company Corvalco will contribute
US$800,000 in credit via lead and zinc concentrate purchases,
according to Area Minera  

With the funds raised, Simsa intends to invest in exploration,
mine development and machinery repairs to increase production at
its San Vicente mine in central Peru's Junin department, Area
Minera said.

CONTACT:  COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA
          Calle Uno 795 - Urb.
          Corpac
          San Isidro - Lima 27
          Phone: 224-3432
          Fax: 224-1321
          E-Mail: simsa@simsa.com.pe



=============
U R U G U A Y
=============

* Uruguay Economists Ask Government To Start Debt Talks
-------------------------------------------------------
Top Uruguayan economists are calling for the country to
renegotiate its debt as Latin America wallows in an economic
slump.

The country has US$11 billion in debt, equivalent to 85 percent
of its gross domestic product, and is still trying to recover
from the worst economic crisis it has faced.

Former Uruguay Central Bank president Ramon Diaz described the
debt as "exceeding the possibilities of payments".

United Press International reports that the country faces a US$2
billion debt payment due next year and another US$1.2 billion
payment the year after. By 2005 another US$1.5 billion in debt
matures.  Inflation for this year has reached 40 percent and GDP
has fallen by 11 percent.

The government had not announced any intentions to renegotiate
its debts, though economists had explicitly voiced their
recommendations for debt talks.

Uruguay is deeply affected by the economic woes of its two
neighbors, Argentina and Brazil.

Argentina has just defaulted on a payment to the World Bank after
failing to get a new loan from the International Monetary Fund.
The country's woes began with its December default. Things have
gone downhill ever since.

Brazil is also having economic troubles, after investors were
scared that the new president-elect would trigger a country-wide
default.

Uruguay sends about one-half of its total exports to these two
countries. Its currency had been devalued since June, adding to
the country's difficulties.

The United States and IMF had moved to aid the country with an
emergency US$1.5 billion bridge loan in August, and adding to the
country's credit line.

Despite this show of confidence, economists say the country has
to move quickly to renegotiate debts to allow it to fulfill its
debt obligations.



=================
V E N E Z U E L A
=================

* S&P Affirms Venezuela's Long-Term Ratings; Outlook Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed Monday its 'B-' long-
term and its 'C' short-term foreign currency sovereign credit
ratings on the Bolivarian Republic of Venezuela. The outlook on
the foreign currency ratings remains negative. (Standard & Poor's
does not rate the republic's local currency debt.)

The affirmation follows the announcement of a debt exchange for
Venezuelan bolivar (VB) denominated government bonds that are
maturing between December 2002 and the first semester of 2005 for
longer-dated securities. "We do not view the transaction as a
coerced exchange," said Sovereign Analyst Bruno Boccara.
"Participation is voluntary, it covers only 30% of Venezuela's
central government domestic debt maturing during the period, and
there is a sweetener in the form of a partial exchange rate
protection in some of the new securities," he added.

Nevertheless, according to Mr. Boccara, even if the government is
successful in reducing amortization payments by the equivalent of
US$1.5 billion (or VB2 trillion) over the next two years, the
fiscal situation will remain tenuous. "The positive impact of the
devaluation of the bolivar on the fiscal accounts will not be as
pronounced in 2003 as in 2002, and Standard & Poor's expects the
central government budget deficit to widen to approximately 6% of
GDP in 2003 from approximately 2% of GDP in 2002," noted Mr.
Boccara. "Depending upon participation rates in the forthcoming
internal debt swap, financing requirements for 2003 will be
approximately between 8% and 10% of GDP," he said.

Standard & Poor's negative outlook on the ratings reflects the
challenges the government faces in honoring principal and
interest payments coming due in 2003. "Since the opposition's
Coordinating Group gathered enough signatures (1.2 million) to
request the National Electoral Council to call a consultative
referendum, the political crisis has become more pronounced,
hurting confidence, contracting output, and limiting the
Venezuelan economic team's room to maneuver," noted Mr. Boccara.
"In addition to the severe financing constraints and political
polarization, the Bolivarian Republic of Venezuela's ratings are
also constrained by weak institutions, excessive dependence on
oil revenue, and poor human development indicators," he
concluded.

ANALYSTS:  Bruno Boccara, New York (1) 212-438-7495
           John Chambers, CFA, New York (1) 212-438-7344


* Fitch Expresses Concerns About Venezuela's Ratings
----------------------------------------------------
Fitch Ratings has expressed concerns about Venezuela's sovereign
ratings given the government's announced intention to swap
domestic bonds (DPNs) that come due in 2003 and 2004 for longer-
term securities. The proposed swap is indicative of the short-
term refinancing pressures Venezuela faces due to the current
economic and political situation and Fitch will be monitoring the
conduct and outcome of the exchange. A successful and market-
friendly exchange may partially ease financing pressures. On the
other hand, a low participation rate in the exchange would
exacerbate concerns over the government's near-term financing
outlook. If the exchange is accomplished in a coercive manner
than Fitch may consider this an event of default. Venezuela's
long-term foreign currency rating is 'B' and its long-term local
currency rating is 'B-' by Fitch. The Rating Outlook is Negative.

Thus far, the authorities have announced that the exchange will
take place in two phases. In the first phase, holders of eligible
DPN bonds (maturing between December 2002 and June 2005) will
participate in an open auction managed by the Central Bank of
Venezuela. Participants will be able to exchange their securities
for others with the maturity extended by one year. The yield will
be determined based on the results of the auction. Only those
bondholders that participated in the first phase will be eligible
to participate in the second stage. Again, participation will not
be mandatory. Bondholders can choose to extend the maturities for
part or all of their instruments by three or four years and the
new bond will contain an annual payment clause that compensates
holders for any eventual risk of significant currency
depreciation. This clause will only apply in the event that
devaluation exceeds the yield of the instrument in bolivares
compared with a dollar reference rate. The ministry has also
stated that this payment clause will only pertain to one issuance
and will be limited to VEB$1,500 billion (about US$1.1 billion at
current exchange rate).

The exchange offer may yield significant amortization relief
through 2006. The central government has approximately US$3
billion and US$2.3 billion in domestic amortizations due in 2003
and 2004, respectively. A successful debt transaction could help
international bond holders by alleviating the government's cash
flow constraints. However, under the current economic policy
framework this amortization relief may not be sufficient. Even if
the government is successful in extending the tenors of about
one-third of its domestic debt, Fitch estimates it would still
have a financing gap of close to 9% of GDP, or about US$7.8
billion. Higher than expected oil prices and major exchange rate
depreciation have allowed the authorities to avoid any
significant fiscal adjustment this year and provided the central
bank with sufficient resources to stabilize the exchange rate. If
the recent downward trend in oil prices continues, particularly
in light of the expansionary 2003 budget presented to Congress,
then the government could still experience financing difficulties
next year. In addition, macroeconomic imbalances could intensify.
On the political front, uncertainty with respect to the
sustainability of the Chavez government continues. As a result,
it is unlikely that any substantial changes for the better to
macroeconomic policy will occur. Confidence in the government is
likely to remain weak, making it difficult to exit the current
recession.

Fitch maintains Venezuela's foreign currency rating above its
local currency rating as the country's external liquidity
position remains strong relative to similarly rated sovereigns.
In addition, the government has, in the past, shown its
willingness to continue servicing international obligations while
domestic obligations have been in default. However, given the
government's dwindling sources of extraordinary revenues and
difficulties in tapping domestic as well as international
markets, an unsuccessful debt exchange could make default by the
Venezuelan government on a broad range of its debt obligations a
real possibility.

CONTACT:  Theresa Paiz Fredel 1-212-908-0534, New York
          Richard Fox +44 (0)20 7417 4357, London

Media Relations: James Jockle 1-212-908-0547, New York




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

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

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

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