TCRLA_Public/021204.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, December 4, 2002, Vol. 3, Issue 240


ARGENTINE UTILITIES: Rate Hike Decree May Prompt Court Challenge
CLISA: Exercises Grace Period on Interest Coupon Payment
NEXTEL COMMUNICATIONS: Troubled Unit Produces More Losses
* Argentine Central Bank Stops Peso Decline After Bank Thaw


ESG RE: Auditors Resign; Nasdaq Notifies of Filing Deficiency


CANBRAS: CSFB To Advise On Brazilian Operations Sale
CEMIG: Reports Growing Losses For 3Q02
CHAPECO: BNDES Proposes Converting Debt For Shares
COMPANHIA MINUANO: Restructuring Plan To Be Finalized Soon
CELG: Strikes Initial Deal To Renegotiate Eletrobras Debt
VESPER: New PCS Licenses Foster Wireless Launch


AES GENER: Feller Rate Puts Outlook On CreditWatch Negative


* S&P Assigns 'BB' to Colombia's $500M Bond Issue

D O M I N I C A N   R E P U B L I C

EDESUR: Billing Dispute Gets Regulatory Response
TRICOM: Moody's Cuts Ratings On Dismal Performance, Liquidity


AEROLITORAL: Flight Schedules Resume as Union Accepts Deal
BANCO DEL SURESTE: IPAB To Spend MXN1.5 Bln On Liquidation
ROHN: UNR Indicates Conditional Support For Asset Sale


URUGUAYAN BANKS: Government Hiring Foreign Bank For Management
URUGUAYAN BANKS: Uruguay's Recovery Hinges on Banking Solution

     - - - - - - - - - -


ARGENTINE UTILITIES: Rate Hike Decree May Prompt Court Challenge
The administrative court in Argentina may suspend the increase in
utility rates if it sees the increases have violated the
country's constitution. Business News Americas reported that
President Eduardo Duhalde had passed the decree to increase
residential electricity rates by 11 percent and gas rates by 7

An earlier report from Bloomberg mentioned that lower-income
consumers would be exempted from the price increase, which is
about 47.5 percent of electricity users and 35 percent of gas

The increase, which took effect last Monday, was issued to
satisfy the demands of the International Monetary Fund for it to
grant Argentina a new aid package it had been asking for in the
past several months. The IMF, however, had been asking for a
higher increase.

Utility companies in the country had also been asking for price
hikes after rates have been frozen since January, while the value
of local currency had fallen by as much as 72 percent.

"This is not a massive increase, but it is a necessary adjustment
because the state has the responsibility to guarantee the level
of service," President Duhalde said, as quoted by local daily

However, consumer groups are prepared to appeal the decree and
may achieve positive results.  Earlier, the courts suspended
public meetings discussing rates increases saying such meetings
are unconstitutional.

The report cited a source at the national electricity generator
Enre saying that Argentine consumers earning salaries in the
local currency simply could not afford the hikes, even if the
court does not suspend the increases.

According to the BNAmericas report, the government also plans to
have another increase in March next year.

CLISA: Exercises Grace Period on Interest Coupon Payment
Compania Latinoamericana de Infraestructura & Servicios S.A.
(CLISA; CC/Negative/--) announced Monday that it will exercise
the 30-day grace period for the interest coupon payment on its
US$100 million 11.625% senior notes originally due on Dec. 1,
2002. At the same time, the company announced that it would hold
meetings with bondholders on Dec. 10 in New York City and Dec. 17
in Buenos Aires to discuss its current financial position and a
preliminary restructuring plan. Since the company is in the
process of renegotiating the notes and it is estimated that it
could arrive to a solution within the grace period, the ratings
on CLISA remain at 'CC' with a negative outlook. Nevertheless,
the ratings on the notes would be lowered to 'D' if the company
fails to pay the interest coupon by the end of the grace period
or the terms of the restructuring plan imply a loss of value for
the bondholders. Argentina-based CLISA is a holding company
mainly devoted to construction, and mass transportation and toll
roads, that also participates in waste management. As of
September 2002, the company's total debt amounted to US$147
million, including the US$100 million notes that mature in June
2004. About 18% of total debt matures until September 2003.

ANALYSTS:  Ivana Recalde, Buenos Aires (54) 114-891-2127
           Marta Castelli, Buenos Aires (54) 114-891-2128

NEXTEL COMMUNICATIONS: Troubled Unit Produces More Losses
The parent company of NII Holdings, Inc. posted losses on its
incomplete fourth quarter results released last Saturday,
according to the Washington Post.

Nextel Communications, Inc. posted a net loss of US$127 million
on revenue of about US$1.9 billion while it losing US$42 million
on revenue of US$1.5 billion for the same period last year.

The according to the report, these results were focused on
domestic operations and did not include earnings-per-share
results or consolidated numbers.

The company plans to file its full results with the Securities
and Exchange Commission by the first day of April next year,
according to its Jim Mooney, the company's executive vice
president and chief operations officer.

Nextel, which owns 95 percent of NII Holdings, is still trying to
determine the extent of the loss that is caused by its extremely
troubled unit.

NII is currently negotiating with its creditors seeking
permission to restructure its debt, worth almost US$2 billion.

According to the report, the discussions may lead to the
company's filing for Chapter 11 bankruptcy protection.

Mooney expects Nextel to experience little impact in the event
NII files for Chapter 11 saying that Nextel is not liable for
NII's debts.

However, company spokesperson Elizabeth Brooks said that Nextel
may have to take undetermined charges for any investments made in
the international unit. NII had suffered much from the economic
recession in Argentina.

Earlier, Nextel had been planning to spin off NII and fund it
from the proceeds of selling shares to the public. However,
Nextel was forced to provide NII with funds as the capital market
had tightened, according to the report.

Mooney said that Nextel had invested about US$250 million in NII
and had plans to invest another US$250 million.

But Mooney defended Nextel's plight saying the company did well
despite the economic pressure it had to face in Argentina and
Brazil. "The real issue has been the access to capital markets",
he said.

Patrick Comack, telecommunications analyst for Miami-based
investment bank Guzman & Co. said that Nextel is "kind of
abandoning a losing operation in order to save the mothership.

According to him, the move will save the parent company cash and
expenses while stemming losses.

CONTACT:  Nextel Communications Inc
          Head Office
          2001 Edmund Halley Drive
          United States 20191
          Tel  +1 703 433-4000
          Fax  +1 703 433-4343
          William E. Conway Jr., Chairman
          Timothy M. Donahue, President and CEO   
          Morgan E. O'Brien, Vice Chairman   

          NII HOLDINGS, INC.
          10700 Parkridge Blvd., Ste. 600
          Reston, VA 20191    
          Phone: 703-390-5100
          Fax: 703-390-5149

* Argentine Central Bank Stops Peso Decline After Bank Thaw
The central bank of Argentina had to increase the sale of dollars
to shore up the local currency after the government lifted  
restrictions on how much depositors may withdraw from savings and
checking accounts. The so-called banking thaw had depositors
forming lines outside banks to withdraw their money. Others
queued at exchange houses to buy dollars.

However, the president of the central bank Aldo Pignanelli said
that he would not recommend the government to free more funds

According to a report from Bloomberg News, bank clients regained
access to ARS21 billion (US$6 billion). The funds may be used to
buy more dollars, which may cause a further decline in the local
currency and add to inflation.

The value of the peso started going down in the morning trading
but recovered after the central bank stepped in. Local money
traders confirmed the increase in demand for the US dollar,
saying that the central bank had been selling more dollars than
the average in past months.

The International Monetary Fund had cited that dollar reserves
are important in helping the country gain investor confidence.
Argentina had lost its credit line to the IMF after it defaulted
on US$95 billion in bonds last December.

Aldo Abram, an economist from Exante consulting company, said
that the peso might be under pressure for some days. He added
that the central bank had the capacity to keep a slide in the
value of the peso in check.

``With Christmas around the corner, people and companies need the
extra money,'' Abram said. ``Plus the dollar has more than
tripled and many consider it is too expensive.''

The peso had been trading at ARS3.55 to the dollar, remaining
unchanged since Friday's trading.

Analysts say that deposits may help keep the money in the local
currency, saying that depositors can get annual interest rates of
44 percent on their peso deposits by buying six-month government

``The return on peso-denominated accounts are pretty high at this
point, which is a good incentive to keep the money at the bank,''
said Lawrence Krohn, chief economist for Latin America at ING
Financial Markets LLC, as quoted by the report.

The peso is not declining more, said the analysts, as Argentines
would need the newly available cash to buy goods they had been
prevented from buying since the banking freeze took effect,
according to the report.

The banking restrictions, which were put in effect in December
last year, had triggered riots that led to the resignation of
then-President Francisco de la Rua.

Argentina's Economy Minister Roberto Lavagna ordered the banking
thaw after the central bank's reserves surpassed the US$10
billion mark for the first time since June, by growing 12 percent
since August.

According to Lavagna, the thaw would help increase spending and
help the country recover from recession.

Meanwhile, Argentine banks would no longer be accepting dollar
deposits. Long-term deposits remain frozen and the government had
not made any statements as to when these would be thawed.

Clients with long-term deposits have been given the option to
trade them for bonds or accept a timetable by which the
government would release funds periodically.

The report indicated that most of the funds would be released by
July to December of next year, until the end of 2005. of 2005.


ESG RE: Auditors Resign; Nasdaq Notifies of Filing Deficiency
ESG Re Limited (Nasdaq: ESREE) announced Monday that Deloitte &
Touche has resigned as ESG's independent auditors effective
November 22, 2002. ESG is currently in the process of seeking a
replacement auditor.

Deloitte & Touche had not completed its review under SAS 71 of
the Company's financial statements for the quarter ended
September 30, 2002. ESG filed a Form 12b-25 on November 15, 2002,
indicating its expectation to file the quarterly Report on Form
10-Q on November 19, 2002. ESG continued to supply responses,
supporting documentation, analysis and access to management to
Deloitte up to and including the date of their resignation. ESG
acknowledges that had the third quarter review been completed by
Deloitte & Touche, there may have been some adjustments which
would have affected the Company's financial results announced for
the period ended September 30, 2002. While ESG cannot at this
time identify the exact amount of those adjustments or the effect
of these adjustments on subsequent financial periods, it
currently estimates, based on the information available to it,
that such adjustments are likely to be on the order of $500,000,
although there can be no assurance that the amount might not be

ESG also announced that it received a Nasdaq Staff Determination
letter on November 25, 2002, indicating that ESG failed to comply
with the timely filing requirements for continued listing set
forth in Marketplace Rule 4310c(14), and that its securities will
be delisted from the Nasdaq Stock Market, effective at the
opening of business on December 3, 2002. ESG has not yet filed
its Form 10-Q reporting on the quarter ended September 30, 2002.

ESG has requested an oral hearing before a Nasdaq Listing
Qualifications Panel to review the Staff Determination. The
hearing is expected to be scheduled within 45 days of the filing
of the hearing request. ESG has been advised that the hearing
request will stay the delisting of ESG's securities, pending a
decision by the Panel. ESG will present a plan to Nasdaq for
achieving the requirements for continued listing, but there can
be no assurance the Panel will grant ESG's requests for continued

A Current Report on Form 8-K will be filed by the end of Monday
covering both of these matters.

Uncertainties related to forward looking statements: Certain
statements and information included in this Press Release
constitute "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934 as amended.
These statements express our intentions, strategies, or
predictions for the future. Forward looking statements in this
Press Release include, among other things, statements regarding:
the continued listing or delisting of our stock from the Nasdaq
Stock Market. These forward looking statements involve unknown
risks, uncertainties and other factors that may cause actual
results, performance or achievements of ESG to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. A further
discussion of factors that could affect ESG's results is included
in reports filed by ESG with the Securities and Exchange
Commission, including ESG's Annual Report on Form 10-K for the
year ended December 31, 2001 and Quarterly Report on Form 10-Q
for the quarter ended June 30, 2002.

         Alasdair Davis
         Tel +353 1 6750200
         Alice Russell
         Tel +353 86 819 2945


CANBRAS: CSFB To Advise On Brazilian Operations Sale
Canbras Communications Corp. announced Monday that it has engaged
Credit Suisse First Boston Corporation (CSFB) as financial
advisor to assist in reviewing strategic and financial
alternatives for the corporation. With the assistance of CSFB,
Canbras is conducting a process aimed at gauging potential
interest by third parties in acquiring Canbras' broadband
communications operations in Brazil.

At this time, the process is in a preliminary stage and there can
be no assurance regarding the outcome, including whether any
definitive expressions of interest or bids will be made, or if
made whether any such proposals will be on acceptable terms,
including price, or whether any agreement could be concluded. In
addition, if any such agreement could be concluded, the closing
of any transaction would be subject to regulatory and other
required approvals.

Canbras saw its net loss narrow 70% to Cdn$1.69 million
(US$1.01mn) for 3Q02, compared to the Cdn$5.73 million net loss
reported for the same quarter last year. In its third quarter
earnings statement, the Company said it would be challenged to
meet cash requirements for 2003 and 2004.

Canbras, through the Canbras Group, is a leading broadband
communications services provider in Brazil, offering cable
television, Internet and data services in Greater Sao Paulo and
surrounding areas and the State of Parana. Canbras Communications
Corp.'s common shares are listed on the Toronto Stock Exchange
under the trading symbol CBC.

Bell Canada International Inc., a subsidiary of BCE Inc.,
Canada's largest communications company, is the indirect majority
shareholder of the Corporation.

CONTACT:  Canbras Communications Corp.
          Howard N. Hendrick, 514/392-2260
          514/392-2266 (FAX)

CEMIG: Reports Growing Losses For 3Q02
Cemig, the Minas Gerais state power company, reported a net loss
of BRL442 million in this year's third quarter, about 111% higher
from last year's losses. Business News Americas reported that the
publication of the third quarter results were delayed as the
state of Minas Gerais and the Company held negotiations on the
state's debt of BRL1.1 billion.

The State received a discount of BRL300 million after paying the
Company up front, as agreed by the two parties. The discount had
been accounted for and is included in the 3Q02 results.

According to the report, the Company had a net loss of BRL268
million (US$74 million) for the first nine months of this year.

The Company's finance director Christiano Correa de Barros
attributed losses to one-off adjustments including exchange rate
losses and new figures released by the wholesale market MAE for
transactions carried out by Cemig over the last two years,
according to the report. As of the end of September, the
Company's total debt was BRL3.6 billion.

Sergio Tamashiro, an energy analyst at Unibanco said that most of
these payments should not be repeated in the fourth quarter.
However, he admitted that the figures are still provisional and
there may still be a few surprises in the official results.

The report cited Tamashiro saying operating results were
disappointing. Earnings before interest, tax, depreciation and
amortization were only BRL187 million, way below the expected
BRL274 million. The decline was attributed to the adjustment in
the Mae figures.

The report indicated that total revenues were 3.6bn reais for the
first nine months of the year, compared to 2.7bn reais in the
same period of 2001. But total costs rose to 3.2bn reais, up from
2.6bn reais in 2001, according to Cemig.

According to Tamashiro, sales at electric power companies are not
recovering as fast as expected. He added that sales may grow by
4-5% next year, but from a much lower base level.

But Cemig president Djalma Bastos de Morais is confident
investments in new connections and new generation capacity would
pay off when the country's economy recovers.

Cemig's plants, in various stages of construction, can generate a
total of 2,500MW.

The Company reports investments of BRL764 million and 141,000 new
connections during this year's first three quarters.

CONTACT:  Cia Energetica de Minas Gerais Cemig
          Registered Office
          Edificio Julio Soares
          Avenida Barbacena, 1200
          Sto Agostinho
          30123-970 Belo Horizonte - MG
          Tel  +55 31 3349-2111
          Fax  +55 31 3299-4691
          Djalma Bastos de Morais, Chairman

CHAPECO: BNDES Proposes Converting Debt For Shares
The Brazilian development bank BNDES has outlined a plan to
capitalize embattled slaughterhouse Chapeco, reports Gazeta
Mercantil. The plan, which aims to prepare Chapeco for a future
sale, is comprised of the conversion of long-term debts into
equity. The Company's long-term liabilities total US$134 million
and would be converted into shares and 15 creditors will become
its shareholders.

The proposal also calls for the exit of the Argentinean group
Macri, which owns 65% of the Company's shares. BNDES owns 30%
stake while the remaining 5% floats on the stock exchange.

The maximum stake allowed to BNDES in private undertakings is
30%, but, in special cases, there are exceptions. Besides BNDES,
IFC and BB (Banco do Brasil) would become the Company's majority
shareholders. Bradesco and Bozano Participacoes are other two
creditors that will become stockholders.

The plan outlined by BNDES is yet to see the approval of
Chapeco's controller and its creditors.

Chapeco is facing financial difficulties since the beginning of
the year and in Sep it gave vacation to the workers of its hogs
slaughterhouse, based in Santa Rosa (Rio Grande do Sul state).

COMPANHIA MINUANO: Restructuring Plan To Be Finalized Soon
Rio Grande do Sul-based Companhia Minuano de Alimentos, which
recently applied for bankruptcy protection from creditors, is to
complete a restructuring plan, reports Gazeta Mercantil. Under
the plan, the Brazilian food products company aims to expand
market share in the domestic market over the next year. In order
to accomplish such goal, the Company is studying partnerships
with other companies to continue the operations in the Passo
Fundo-based plant (Rio Grande do Sul), with capacity to slaughter
50,000 poultry/day. The Fundo unit produces processed and non-
processed poultry meat.

Minuano has a two-year term to pay off its BRL22.4 million debts
with suppliers (40% will be paid off in the first year and the
remainder in the second year).

The Passo Fundo-based plant was discontinued two weeks ago, but
operations will probably be resumed in the next year. The Company
will keep the unit based in Arroio do Meio (Rio Grade do Sul),
where the poultry meat is processed into meat rolls.  As part of
the restructuring process, the Company signed three agreements
with Avipal for a five-year period.

The first agreement involves the slaughtering of 120,000
poultry/day in the Lajeado-based facility (Rio Grande do Sul) for
five days per week over this year and six days/week as of 2003
year. The contract will bring in a BRL1.6 million turnover per
month as of January.

The second agreement predicts the leasing of the animal feed
plant, based in Arroio do Meio, with capacity to produce 20,000 m
tons per month to Avipal, leading to a BRL100,000 income to
Companhia Minuano.

Aside from that, there is an agreement that establishes the
supply of 650,000 one-day-old chicks per week, which will bring
in BRL850,000 per month. Exports account for 30% of gross

The main importers are Argentina, Italy, Japan, Hong Kong,
Holland, Singapore, Greece, Switzerland, Caribe and Middle East.
Minuano has a portfolio with more than 100 products.

CELG: Strikes Initial Deal To Renegotiate Eletrobras Debt
Brazil's Goias state power company Celg, which owes Eletrobras a
total of BRL840 million, reached an agreement to renegotiate debt
with the federal power company, reports Business News Americas.
Under the terms negotiated between Goias state planning secretary
Giuseppe Vecci, Celg president Jose Walter Vazquez Filho and
Eletrobras CFO Nereu Ramos Neto, Celg would repay debts of BRL658
million (US$181 million) over 18 years, including a three-year
grace period. Eletrobras board is expected to approve the
arangement in a meeting scheduled for December 9.

"The negotiations are going well. We are sure the renegotiation
of the debt is guaranteed," Celg's Vazquez said.

Meanwhile, Goias governor Marconi Perillo also plans to meet with
finance minister Pedro Malan and Brazil's national development
bank BNDES to seek another loan worth BRL128 million to refinance
Celg, which is currently losing about BRL15 million a month.

Perillo has also sent a request to Eletrobras for a line of
credit worth BRL100 million to invest in substations,
distribution network and transmission lines. The money would be
transferred to Celg as and when the projects require.

The recent debt renegotiation follows a decision by the Goias
state to abandon a plan to sell its 49% stake in Celg to
Eletrobras. Celg has significant debts with a number of
generation companies, but Eletrobras is its largest creditor.

Goias abandoned the plan following a valuation that fell short of
the state government's expectations. Brazilian bank Unibanco
Holdings SA released an analysis for Eletrobras putting Celg's
valuation at between BRL44 million and BRL126 million. According
to Perillo, the valuation was way below the Company's expected
reference price and much lower than an evaluation of BRL350
million made by Eletrobras a few months ago.

According to press reports, Celg President Altino Ventura Filho
said the valuation was like a "symbolic price" and the state
wouldn't sell state assets at "banana prices."

          Rua 2 - Qd. A-37 - Edificio Gileno Godoi
          Jardim Goias - Goiania - Goias
          CEP: 74805-180
          Phone:  (0XX62)   243-2222
          Fax:  (0XX62) 243-2100
          Home Page:
          Jose Walter Vazquez Filho,  President
          Phone: (0XX62) 243-1001
          Samuel Albernaz, Administrative Director
          Phone: (0XX62) 243-1031
          Javahe de Lima, Economic-Financial Dir./Investor
          Phone: (0XX62) 243-1041

           Avenida Presidente Vargas 409, 13 Andar
           20071-003 Rio de Janeiro Brazil
           Phone: (21) 2514-5151
           Fax: +55-21-2242-2697
           Home Page:
           Cladio da Silva avila, President
           Jose Alexandre Nogueira de Resende, Director of
                                 Financial and Market Relations

           Investor Relations Division
           Phone: (0XX21) 2514-6207 / 2514-6333
           Av. Presidente Vargas, 409 - 9  andar
           20071-003 - Rio de Janeiro - RJ

VESPER: New PCS Licenses Foster Wireless Launch
Brazilian local exchange carrier Vesper may launch mobile
services within the next six months after winning three PCS
licenses in the auction last November 19.

According to Business News Americas, the licenses, which were for
the 1800MHz band, cover the states of Sao Paulo, Minas Gerais,
Alagoas, Ceara, Paraiba, Pernambuco, Piaui, and Rio Grande do

The terms of the PCs licenses require that, in its first year of
operation, Vesper has to offer services in 50 percent of urban
areas in all cities that has a population of more than half a
million. A spokesperson said that the Company is still studying
in which cities it will be providing services.

The spokesperson also revealed that the Company may be using its
Wireless Local Loop (WLL) network, where it currently offers
local telephony services using a license in the 1900MHz band. He
added that it may take about six months for the WLL network to be
adapted for mobile operations.

Last year, Vesper encountered opposition from mobile operators
when it attempted to offer cordless handsets. But telecoms
regulator Anatel ruled that WLL operators may use their networks
for mobile services, provided they have a mobile license.

The official ruling allows Vesper to avoid costly infrastructure
buildout to launch GSM mobile services in the 1800MHz band.
According to the report, Vesper can use the CDMA solutions made
by its controlling shareholder, US-based wireless technology
provider Qualcomm (Nasdaq: QCOM), over its existing network.

Qualcomm had increased its stake in Vesper to 74 percent last
year, after VeloCom and BellCanada International backed out.
According to the report, Qualcomm is expected to invest about
US$350 million in the Company over an unspecified period of time.

The report also mentions that Vesper does not have objections to
the idea of sharing PCS licenses with a strategic partner, though
it has not decided on the matter yet.

CONTACT:  Qualcomm Inc
          5775 Morehouse Dr.
          San Diego, CA 92121-1714    
          Phone: 858-587-1121
          Fax: 858-658-2100
          Dr. Irwin M. Jacobs, Chairman & Chief Executive     


AES GENER: Feller Rate Puts Outlook On CreditWatch Negative
Feller Rate, a Chilean credit ratings agency and an affiliate of
Standard & Poor's, placed the domestic A- ratings on local
generator AES Gener's solvency and bonds on creditwatch outlook.

According to Business News Americas, the local ratings agency was
compelled to make the move on concern about the possible impact
of Gener's failure to divest assets outside of Chile on the
Company's solvency.

AES Gener's assets outside of Chile include Itabo in the
Dominican Republic, the TermoAndes generator and InterAndes
transmission company in Argentina, and Colombian hydro generator

But it seems like Itabo is the only asset that AES Gener can sell
in the short-term, as Argentina's financial situation hampers the
sale of TermoAndes or InterAndes. The sale of Chivor is also
clouded with uncertainty since it is subject to a US Chapter 11
bankruptcy filing.

Meanwhile, the financial situation of Gener's U.S.-based parent
AES Corp., which is currently restructuring debt due this month,
is also a concern, Feller Rate said.


* S&P Assigns 'BB' to Colombia's $500M Bond Issue
Standard & Poor's Ratings Services said Monday that it assigned
its 'BB' foreign currency rating to the Republic of Colombia's
planned US$500 million 10-year bond due Jan. 15, 2013. Standard &
Poor's also affirmed its sovereign credit ratings on the
republic. The outlook on the ratings remains negative.

According to Sovereign Credit Analyst Richard Francis, the
ratings are constrained by ongoing fiscal stress due to low
economic growth, and by internal conflicts resulting from
continuing guerilla and paramilitary activities and drug

"The negative outlook indicates that a downgrade could occur if
the reform measures currently before Congress or the economic
measures contained in the referendum fail or are diluted in a
material way," said Mr. Francis. "On the other hand, passage of
these measures could allow the rating to stabilize at the current
level," he added.

Mr. Francis also noted that the government must pass pending tax
and pension reform legislation and several other economic
measures in order to maintain investor confidence.

ANALYSTS:  Richard Francis, New York (1)-212-438-7348
           John Chambers, CFA, New York (1) 212-438-7344

D O M I N I C A N   R E P U B L I C

EDESUR: Billing Dispute Gets Regulatory Response
Dominican Republic power distributor Edesur has 15 days to
respond to last week's charges by Superintendent of Power Julio
Cross that it violated the Power Ruling when it billed for
periods greater than 31 days or less than 27 days.

The DR1 Daily News relates that the Superintendence said there
are many cases of consumers that have been billed for periods of
34 days while Article 458 of the General Law of Electricity,
which went into effect in August, obliges the company to invoice
its clients based on the meter readings for expired monthly

The affected consumers could be awarded credits for as much as 10
times the amount billed in excess. Cross is urging consumers to
visit the Protecom offices to place their claims.

Edesur is owned by Spain's Union Fenosa.

CONTACT:  Union Fenosa SA
          Head Office
          Avda San Luis No 77
          28033 Madrid
          Tel  +34 91 567 6000
          Fax  +34 91 571 4593
          Telex  27412
          Antonio Basagoiti, Chairman
          Vicente Arias Mosquera, Vice Chairman
          Antonio Barrera de Irimo, Vice Chairman

TRICOM: Moody's Cuts Ratings On Dismal Performance, Liquidity
Mounting concern regarding poor operating performance and
liquidity prompted Moody's Investors Service to downgrade all the
ratings of Dominican Republic-based telecoms operator Tricom.

The international rating agency lowered Monday Tricom's senior
implied rating from B2 to Caa1, its 11.375% guaranteed senior
notes due 2004 from B3 to Caa2, and the senior unsecured issuer
rating from Caa1 to Caa3.

All ratings have also been placed on review for possible further
downgrade. Tricom has relied, in part, upon short term funding to
support its plant expansion.

"This has created a basic funding mismatch and a debt service
capability that relies upon management's success in rolling
forward or extending the maturities of an assortment of short
term bank credit facilities," Moody's said. The revised ratings
incorporate Moody's view that a significant level of debt
restructuring will be necessary to address the Company's
liquidity and capital structure issues.

During the past year, Tricom has incurred a substantial level of
capital investments that have yet to show signs of revitalizing
growth, which remains stalled under the pressure of lowered
international settlement rates, declining toll pricing and
customer churn. The Company has indicated that its recent
initiative to disconnect marginal customers may further depress
sales in the near-term.

At the end of September 2002, Tricom had liquidity of about US$42
million, including US$7 million in cash, US$13 million of
marketable investments, and US$22 million available under its
credit facilities. In addition, the Company had US$8 million
unused under its local commercial paper program.

Moody's believes that this level of liquidity would sustain
operations for approximately three quarters based upon Tricom's
actual cash burn rate over the past nine months. Moody's
considers that Tricom will be unable to generate sufficient cash
to meet its debt repayment schedule, which as of September 30,
2002, included US$110 million that matures in less than one year,
plus US$353 million (including the US$200 million senior notes)
that matures between one to three years.

"We consider that the prospects of refinancing long term debt at
maturity are limited, given disappointing operating performance
and leverage that exceeds six times," Moody's said.

Moody's expects Tricom will likely pursue debt restructuring to
alleviate its debt service pressure, and believes that the
interests of long-term noteholders would probably be compromised.

Tricom is controlled by GFN, a local conglomerate that has
provided funding to Tricom as recently as December 2001. However
there can be no assurance that GFN will continue to fully support
Tricom's funding needs in the long term. Moody's noted that
Bancredito, a GFN-related bank, provides major direct funding and
financial guarantees to Tricom.

To see Tricom's latest financial statements:

         Miguel Guerrero, Investor Relations
         +1-809-476-4044 or +1-809-476-4012


AEROLITORAL: Flight Schedules Resume as Union Accepts Deal
Flight schedules at Mexican airline Aerolitoral were expected to
get back to normal Tuesday after being suspended for two days.
The carrier's operations were suspended Sunday after the
airline's 255 pilots turned down an offer for a 5.5% raise and a
0.3% increase in other perks. But on Monday, the pilots union
ASPA accepted the offer, lifting the two-day suspension of

Aerolitoral pilots currently earn between MXN20,000 (US$2,000)
and MXN40,000 (US$4,000) a month, airline spokesman Gonzalo
Sanchez said.

Aerolitoral, which is controlled by airline holding company
Cintra SA, serves 32 Mexican cities, as well as Los Angeles;
Houston, San Antonio, and El Paso, Texas; and Tucson, Ariz.

Federal government-controlled Cintra also controls AeroMexico and
Mexicana, two of Mexico's biggest airlines, which it is seeking
to privatize in the future.

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


          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:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          Paseo de las Palmas No. 405
          Piso 8
          Col. Lomas de Chapultepec
          11000 Mexico City, Mexico
          Phone: 5255-5201-3200
          Fax: 5255-5201-3222

BANCO DEL SURESTE: IPAB To Spend MXN1.5 Bln On Liquidation
Banco del Sureste, the last of the intervened banks in the hands
of the Mexican government, will be liquidated, said the Institute
for Bank Savings Protection (IPAB).

Liquidation will be in accordance with the Law of Credit
Institutions and the Bank Savings Protection Law, the IPAB said -
- meaning the institution will have to expend MXN1.5 billion, as
this is the estimated amount of capital that Sureste lacks.

According to a Cronica report, clients of the defunct bank will
have 90 working days beginning Monday to withdraw their funds.

Sureste has 22 branches, 9 in Mexico City and 13 in southeastern
Mexico, with a total of 42,940 clients. The number of accounts
totals 47,002, of which only 7,798 have balances of more than
MXN1,000 (US$99.15).

ROHN: UNR Indicates Conditional Support For Asset Sale
ROHN Industries (Nasdaq: ROHN), a provider of infrastructure
equipment for the telecommunications industry, announced Monday
that its majority stockholder, the UNR Asbestos-Disease Claims
Trust, has indicated that, based on certain valuation assumptions
and concessions that ROHN hopes to obtain from the lenders under
its bank credit facility, it will support the previously
announced sale of substantially all of the Company's assets to an
affiliate of Platinum Equity LLC, a Los Angeles-based private
equity firm. There are ongoing discussions between the Company,
the Trust and the Company's bank lenders regarding these matters.

ROHN Industries, Inc. is a manufacturer and installer of
telecommunications infrastructure equipment for the wireless
industry. Its products are used in cellular, PCS, radio and
television broadcast markets. The company's products and services
include towers, design and construction, poles and antennae
mounts. ROHN has ongoing manufacturing locations in Peoria,
Illinois and Frankfort, Indiana along with a sales office in
Mexico City, Mexico.

CONTACT:  ROHN Industries, Inc.
          Al Dix, Chief Financial Officer
          Tel: +1-309-633-6809


URUGUAYAN BANKS: Government Hiring Foreign Bank For Management
Uruguay will retain a foreign bank to operate Nuevo Banco
Comercial, the new government bank that will replace three failed
banks, before it can be sold, Bloomberg reports, citing Economy
Minister Alejandro Atchugarry.

"Until we sell the bank it will be run by a first rate
international bank," Mr. Atchugarry said.

Nuevo Banco Comercial will rise from the ashes of Banco Comercial
-- majority owned by J.P. Morgan Chase & Co., Credit Suisse First
Boston and Dresdner Bank AG -- Banco Montevideo, Banco Caja
Obrera, the three banks, which were suspended by the Uruguayan
central bank earlier this year due to capital and liquidity

The proposal to form Nuevo Banco Comercial will be sent to
Congress "over the next few days," thje Minister said, without
revealing how much the new bank would have in assets.

Uruguay is going to close these banks in a move seen as part of a
fulfillment of a promise made in August to obtain US$3.8 billion
in credit from the International Monetary Fund, World Bank and
Inter-American Development Bank.

A fourth bank, Banco de Credito was also suspended and according
to Atchugarry, the government is still considering a proposal
from St. George Ltd., an investment arm of the Rev. Sun Myung
Moon's Unification Church, to reopen the said bank.

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

          1399 - Montevideo
          Fax: 9162880
          Home Page:
          Contact: Sr. Marcelo Pestarino, President

URUGUAYAN BANKS: Uruguay's Recovery Hinges on Banking Solution
Analysts at international rating agency Fitch indicated that the
recovery of Uruguay's financial system is partly dependent on the
solution to the fate of the four suspended -- Banco Comercial,
Banco Montevideo, Banco Caja Obrera and Banco de Credito,
Business News Americas relates.

London-based Fitch sovereign analyst Richard Fox, the search for
a solution to the four suspended banks has "taken longer than

On Friday, Uruguay's central bank once again extended the
suspensions of the four banks. The suspension will remain in
place until December 13.

Another Fitch sovereign analyst, New York-based Morgan Harting,
the closure of the country's largest banks is putting additional
strain on commercial activity in an economy struggling to get
back on its feet again.

Fitch has single B foreign and local currency long-term debt
ratings on Uruguay, with negative outlooks. In the "coming weeks"
Fitch will decide whether to downgrade Uruguay or maintain the
sovereign rating, Harting said.


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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *