TCRLA_Public/021210.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, December 10, 2002, Vol. 3, Issue 244



CTG: Sends Two Proposals To Restructure $54M In Debentures
METRORED: Judge Finalizes Bankruptcy After Accepting Proposal
* Argentina Debt Default Negotiations Likely in February


TRENWICK GROUP: Reaches Agreement With Lloyd's LoC Providers


ACESITA: Fitch Assigns New Debentures 'BBB-bra'; Watch Evolving
CSN: Considering Alternate Financing Options as Debts Loom
VARIG: Renegotiates Debt With Infraero
* Brazilian Leaders to Stress Action With IMF's Koehler


ENAMI: Looks To Offload Ventanas Next Year To Reduce Debt
ENAMI: Fitch Assigns Syndicated Loan 'A-' on Chile Backing
SAESA: Planned Capital Increase Gets Shareholder Nod
TERM0CANDELARIA: New Owners To Restructure $160M In Debts


IMPSAT FIBER: Introduces Disaster Recovery Program In Colombia
VALORES BAVARIA: Sells Sofasa Stake To Renault


GRUPO MEXICO: Analysts Still Perceive As Highly Risky

T R I N I D A D   &   T O B A G O

BWIA: Steering Committee Named for Viability Study
TRINIDADIAN AIRLINES: Subsidized Airbridge Rates Extend Survival

     - - - - - - - - - -


CTG: Sends Two Proposals To Restructure $54M In Debentures
Argentine thermo generator Central Termica Guemes S.A (CTG),
which is under pressure to renegotiate US$54 million in
debentures, put forward two potential plans for exchanging the
debt with various debentures, reports Business News Americas.
In a statement to the Buenos Aires stock exchange, the Company
disclosed that the first offer would exchange the US$54 million
debentures for US$32.4 million of variable rate debentures
falling due in 2012, plus a maximum of 24.8 million, US$1-nominal
value Class D ordinary shares.

The exchange would mean that the Company would issue US$600 of
new debentures plus 460 ordinary shares for each US$1,000 of
existing debenture capital outstanding.

The second alternative proposes exchanging the US$54 million
debentures for US$54 million of new variable debentures falling
due in 2012. Under this scenario, the Company would issue
US$1,000 of new debentures for each US$1,000 of existing
debenture capital.

According to the statement, the proposals are not definitive and
could be modified prior to the presentation of a formal swap
offer.  The US$54 million of existing debentures that CTG is
seeking to restructure were issued in September 2000 and fall due

In a previous Business News Americas report, an unnamed company
spokesperson suggested that the Argentine utility might be forced
declare bankruptcy if it can't renegotiate the debt "as soon as
possible," and at the latest by year-end.

CONTACT:  Central Termica Guemes S.A.
          Avenida Leandro N Alam 822
          Piso 12
          Ciudad Autonoma de Buenos Aires C1001AAQ
          Tel. +54 4311-6064/6065/6066

METRORED: Judge Finalizes Bankruptcy After Accepting Proposal
The bankruptcy case of MetroRed Argentina is now closed after the
corporate communications provider's creditors submitted a new
ownership proposal, reports Business News Americas. Argentine
judge Fernando Ottolenghi, who completed the case, also ordered
MetroRed's US$9-million asset liquidation suspended. The sale was  
scheduled for Friday (December 6), although the creditors
submitted their proposal just two minutes before the deadline for
calling off the auction.

So far, the content of the proposal is still not clear as local
press have reported different versions about the details.
According to a La Nacion report, investment group Coinvest will
take control of MetroRed after reaching an agreement with 99.5%
of its creditors in talks that began six months ago.

Coinvest, formed early this year by ex-directors of fixed line
telco Telefonica de Argentina, CEI Citicorp Holdings and the
Exxel Group, agreed to protect jobs at Metrored and to take on
the company's debt. The group secured financing from banks HSBC
and Banco Macro Bansud, the paper reported.

El Cronista however reported that the creditors themselves -
including BankBoston parent company Fleet Financial Group,
Fidelity Investments and banking group HSBC - will take control
of the Company, with HSBC becoming the majority owner.

MetroRed, Fidelity, Coinvest and the banks were not available for
immediate comment on the deal.

          Paseo Col>n 746
          Piso 4 (C1063ACU)
          Buenos Aires
          Phone: (5411) 4876-7700
          Fax: (5411) 4876-7767
          Home Page:

* Argentina Debt Default Negotiations Likely in February
Argentine Finance Secretary said on Thursday that the country
should be ready to open formal talks in February regarding the
bonds Argentina defaulted on last year. Reuters quoted Mr.
Nielsen saying that the country is in the process of choosing a
financial adviser for the renegotiation of the debt, worth US$60

The deadline for submission of proposals was Monday, December 09.
Mr. Nielsen will serve as the government's representative at the
talks, which will involve U.S. institutional holders, and retail
investors from Japan, Germany and Italy.

According to the report, a number of investors are doubtful about
striking a debt deal with the government, despite their eagerness
for talks, while the country's economic policy mix is uncertain.
The Finance Secretaruy is scheduled to meet investors in New York
last week to set the stage for the talks.

Mr. Nielsen added, "We will start the process and we will advance
as much as we can so that the incoming government will have fewer
problems dealing with this. We are going to hand over a menu of
possibilities and pave the way for resolution."

George Estes, sovereign credit analyst at Grantham Mayo Van
Otterloo, a Boston-based asset management firm which holds about
$1.5 billion in emerging market debt, expressed hopes of getting
specifics out of the meeting with Nielsen on the country's plans
of dealing with its debts.


TRENWICK GROUP: Reaches Agreement With Lloyd's LoC Providers
Trenwick Group Ltd. ("Trenwick")(NYSE:TWK) announced Sunday that
it had reached an agreement in principle with its Lloyd's letter
of credit providers and that it would be underwriting at Lloyd's
in 2003. The letter of credit providers have agreed in principle
to the renewal of $182 million of letters of credit supporting
Trenwick's Lloyd's underwriting operations. The provision of
letters of credit to Lloyd's is subject to the completion of
final documentation. With additional capital provided by Trenwick
and its previously announced agreement with National Indemnity
Company, an affiliate of the Berkshire Hathaway Group, Trenwick's
anticipated Lloyd's underwriting capacity for 2003 is up to $500

Michael Watson, Chairman and Chief Executive Officer of Trenwick
Managing Agents Limited, said, "I am delighted that we are able
to confirm our plans for 2003. Trenwick's Lloyd's capacity in
2003 will allow it the flexibility to develop its business next
year and participate further in market conditions which we
believe will continue to be very favorable."

Trenwick also announced today that it has hired Greenhill & Co,
LLC as its financial advisor. Greenhill & Co., a recognized
leader in providing advisory services in financial restructuring
transactions, has been hired by Trenwick to assist it in
evaluating and implementing a restructuring of its outstanding
indebtedness and preferred equity.

Trenwick also announced today that Trenwick International
Limited, its specialty London market insurance company, has
ceased to underwrite new business. Trenwick will continue to
administer and pay claims in connection with the insurance
policies previously underwritten by Trenwick International
Limited. Trenwick will record a charge in the fourth quarter of
2002 for the expenses it expects to incur in connection with the
termination of Trenwick International Limited's underwriting

W. Marston Becker, Acting Chairman and Acting Chief Executive
Officer of Trenwick, stated, "These actions represent significant
steps in the right direction for Trenwick. The $182 million of
letter of credit and continued support from National Indemnity
Company, Berkshire Hathaway's affiliate, for Trenwick's Lloyd's
underwriting operation allows us to continue to support those
portions of our business which we believe will produce the best
results for our policyholders, creditors and shareholders."

    Background Information

Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with two principal businesses operating
through its subsidiaries located in the United States, the United
Kingdom and Bermuda. Trenwick's reinsurance business provides
treaty reinsurance to insurers of property and casualty risks
from offices in the United States and Bermuda. Trenwick's
international operations underwrite specialty insurance as well
as treaty and facultative reinsurance on a worldwide basis
through its London operations.

CONTACT:          Trenwick Group Ltd.
                  Alan L. Hunte, 441/298-8082


ACESITA: Fitch Assigns New Debentures 'BBB-bra'; Watch Evolving
Fitch Ratings has assigned a 'BBB-bra' long-term national scale
rating to Acesita S.A.'s (Acesita) BRL800 million subordinate
debenture issuance. The debentures are adjusted by the IGP-M
(Indice Geral de Precos - Mercado) inflation index with a four-
year bullet maturity, yielding a maximum spread of up to 12.0%

In conjunction with this rating assignment, Acesita's 'BBB(bra)'
long-term national rating has been affirmed. The 'BBB-(bra)'
rating for debentures, which is one notch below Acesita's
'BBB(bra)' senior debt rating, reflects the subordination of this
debenture issuance to the company's senior financial obligations.
The proceeds of this issue will be used to retire the company's
fourth debenture issue which mature on December 15, 2002 and
lengthen its debt profile. The debentures have a put option in
December 2004. Fitch expects that, at minimum, BRL400 million of
the issuance will be sold to the company's controlling
shareholders. Acesita's senior debt rating has been changed to
Rating Watch Evolving from Rating Watch Negative. The rating for
the company's fifth debenture issue was assigned a Rating Watch
Evolving. The transaction is being coordinated by Banco do

The change in Rating Watch status reflects the potential for
greater cash flow generation as a result of the company's
improved operational profile. Acesita has exited its steel bar
business and plans to increase the production and exporting of
higher value-added stainless steel products. The change in the
rating status to Watch Evolving also considers the potential for
Acesita to sell its stake in Acos Planos do Sul S.A. during the
first half of 2003. Over the next several months, Fitch expects
Acesita to strengthen its credit profile by increasing cash flow
through stainless steel exports sales and by applying the
proceeds of any asset sales to reduce debt. For 2002, Acesita
should generate around BRL400 million of EBITDA. Considering an
average stainless steel price of close to USD1,000 per ton and a
relatively stable economic scenario, Acesita should be able to
generate between BRL500 and BRL600 million of EBITDA in 2003.

At the end of September 2002, Acesita's total gross debt was
BRL2.8 billion while cash and marketable securities totaled BRL31
million. Approximately 58% or BRL1.6 billion of the total debt
was short term debt. For the first nine months of 2002, Acesita's
leverage, as measured by total debt to EBITDA, was 7.5 times (x)
and its interest coverage ratio was 1.1x. In 2003, free cash flow
and the proceeds from asset sales are expected to be used to
reduce Acesita's debt levels such that the company's interest
coverage ratio could increase to above 2.0x and its leverage
ratio decrease to about 4.0x.

Acesita's ratings reflect the company's strong shareholder
structure and its dominant position in the Brazilian domestic
market as the sole producer of flat-rolled stainless and silicon
steels in Latin America. Fitch also considers the improvements
Acesita has achieved in operational efficiency, but they are
constrained by the company's high leverage, near-term refinancing
risk and exposure to the cyclical nature of the world stainless
steel market.

Acesita benefits from its relationship with Arcelor (via Usinor),
the world's largest steel producer, which provides Acesita with
significant operational and financial support. Acesita's
shareholder structure also includes several major Brazilian
pension funds. In addition to having managerial control over
Acesita, Arcelor holds the largest stake with 38.9% of Acesita's
voting capital and 27.7% of total capital.

With an annual production capacity of 850,000 tons of liquid
steel, Acesita is Latin America's sole integrated producer of
flat-rolled stainless and silicon steels. Depending on market
demand, Acesita has the flexibility to use its plant's entire
capacity for stainless steel production. With 800,000 tons of
stainless steel capacity, Acesita would rank among the top 10
flat stainless steel producers, representing approximately 4.7%
of world flat stainless steel production. Arcelor's total
stainless steel production capacity of about 2.6 million tons
represents approximately 15% of world stainless steel production.
In 2001, Acesita sold 704,000 tons of steel, of which 17% was
exported, primarily to Asia, Europe, and the Americas.

          Anabella Colombo, 55 11 287-3177, Brasil
          Jayme Bartling, 55 11 287-3177, Brasil
          Anita Saha 1-312-368-3179, Chicago
          James Jockle 1-212-908-0547, New York, Media Relations

CSN: Considering Alternate Financing Options as Debts Loom
Since credit options have been hampered by the difficult
environment surrounding the capital market, Brazilian flat
steelmaker is studying the possibility of a financial
securitization operation to boost its liquidity, reports Business
News Americas. According to corporate director Antonio Ulrich,
CSN has had some success in refinancing short-term liabilities.

"We were able to re-negotiate US$50 million of the US$140 million
in US commercial paper that fell due in October," he said.

The US$50 million matures this month, but the steelmaker is
already refinancing the loan through a 15-month pre-payment

CSN also has US$250 million in commercial paper falling due in
April 2003, and US$37 million in long-term amortizations
contracted from federal development bank BNDES. CSN invested
US$155mn in the first three quarters of 2002, and does not plan
to undertake any major investments next year.

"There will just be investments in maintenance, which will help
us reduce our debt levels," said CSN's executive director of
operations Albano Chagas Vieira.

CONTACT:  Luciana Paulo Ferreira, CSN - Investor Relations
          Tel. 021 2586 1442

VARIG: Renegotiates Debt With Infraero
Brazilian airline Varig, which is struggling with a debt load of
US$900 million, managed to renegotiate its BRL161 million in  
taxes owed to airports management company Infraero, reports O
Globo. The renegotiation allows Varig to pay BRL1.33 million per
day for the next 40 days, on top of the BRL1.51 million it has to
pay to Infraero, to keep using the airport.

The move is part of Varig's efforts to reduce debt with the
government. Recently, Economist Roberto Gianetti da Fonseca said
that Varig would not survive beyond December if a restructuring
plan is not implemented soon. Mr. Fonseca is acting as mediator
between Latin America's biggest airline and its creditors.

The Varig group, which also includes the Rio Sul and Nordeste
regional airlines, generates more than US$3 billion per year,
which should serve to ensure smooth negotiations on its debt.

However, a negotiated agreement struck last month between the
administrative council and creditors was rejected by the Ruben
Berta Foundation, which controls 87% of the airline. Leaders of
the employee-controlled foundation disagreed with the new
repayment schedule, objecting to the plan's favoring certain
creditors over others. The foundationsaid they sought new loans
from the BNDES development bank instead.

The foundation's refusal to accept the deal prompted the
resignation of Varig's president and board of directors. Now,
creditors are pushing to expedite debt negotiations, while the
Brazilian government, which has offered to kick in US$300 million
to help resolve the matter, says the Company must restructure
itself before it will pour in any more money.

The Company's new interim president, Manuel Guedes, described the
situation at the Company as delicate but he stressed that the
US$900-million debt Varig struggled under early this year had
dropped to US$764 million by September and can be renegotiated.

Varig, Brazil's flagship airline, has a fleet of 100 planes,
employs 15,000 people and serves 110 domestic and 27
international destinations.

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:
              Dorival Ramos Schultz, EVP Finance and CFO

              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
              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
              Phone: +1-617-572-2000
              Fax: +1-617-572-2461

* Brazilian Leaders to Stress Action With IMF's Koehler
Horst Koehler, managing director of International Monetary Fund
is scheduled to meet with Brazilian President Fernando Henrique
Cardoso, Finance Minister Pedro Malan and transition government
coordinator Antonio Palocci.

Upon his arrival in the country's capital last Friday, Koehler
had talks with Malan for an hour, according to Dow Jones
Newswires. Though the two leaders did not divulge the details of
their meeting, Malan was quoted saying it was "very good".

Koehler is also scheduled to meet with the country's President-
elect Luiz Inacio Lula da Silva the following day.

President Cardoso, meeting with Mercosur leaders earlier, said,
"The international financial architecture is incapable of facing
the current challenge. Argentina made very meaningful efforts to
solve its problems but so far it hasn't received the loans that
it needs. I'm going to tell him what I am saying here, that it's
a mistake not to act quickly and firmly."

Argentina had been negotiating with the IMF for almost a year
without success, while Brazil had just secured a US$30 billion
standby loan from the lender. The loan for Brazil is intended to
buffer the expected turbulence from its transition to a new
government early next year.


ENAMI: Looks To Offload Ventanas Next Year To Reduce Debt
Chile's state minerals company Enami is expecting to reduce its
US$480-million debt through the sale of Ventanas copper smelter-
refinery. The Company hopes to sell the asset, which is said to
be worth between US$300 million and US400 million, to state
copper corporation Codelco next year. However, the sale is seen
unlikely to happen since Codelco's interest in taking over
Ventanas is beginning to wear off.

In a report released by TCR-LA earlier, Codelco's chief executive
Juan Villarzu had said, "Ventanas does not figure in our
portfolio," adding, "I believe it suffers from a basic problem in
that it is located in a very narrow place, in a predominantly
tourist zone, and so investing in it doesn't make much sense."

Mr. Villarzu had said that the environmental demands on the plant
would become increasingly strict, "and one should think about
reducing Ventanas" rather than expanding it.

Meanwhile, citing El Mercurio newspaper, Business News Americas
reports Enami aims to renegotiate its US$240 million in short-
term debts with banks this month. This part of the debt, held
largely with Lyonnaise and Dresdner banks, matures at the end of
the year.

Enami expects to post a loss this year of US$25 million, compared
to 2001's deficit of US$28 million, according to El Mercurio. The
Company blames the losses on debt servicing charges.

Enami incurred large debts partly as a result of environmental
clean-up programs at Ventanas and its other smelter, Paipote in
northern Chile's Region III.

The Company is also said to be planning a bond issue of up to
US$250 million.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Home Page:
          Jorge Rodriguez Grossi, President

ENAMI: Fitch Assigns Syndicated Loan 'A-' on Chile Backing
Fitch Ratings has assigned an 'A-' foreign currency rating to the
proposed USD$220 million three-year syndicated bank loan of
Empresa Nacional de Mineria (ENAMI). This loan, which is expected
to close by year-end 2002, will have a full and unconditional
guarantee from the Republic of Chile whose long-term foreign and
local currency obligations are also rated 'A-' and 'AA-',

In addition, Fitch has affirmed the senior unsecured foreign
currency rating of 'A-' and the senior unsecured local currency
rating of 'AA-' of ENAMI. Unlike the issue specific rating
assigned to the syndicated loan, these latter two ratings
represent the credit quality of all debt at ENAMI, including debt
that does not carry an explicit government guarantee.

Fitch does not differentiate between the debt with and without
the explicit government guarantee due to a letter from the
government to the unsecured lenders, in which the government
expresses its intent to support these loans and states that it
does not consider them subordinate to the syndicated loan. Fitch
believes that the Chilean government will honor this implicit
commitment to ENAMI's lenders due to the negative externality
(e.g., significantly higher borrowing costs for Chile) that would
likely result from a default by ENAMI.

The Rating Outlook for the syndicated loan and the foreign and
local currency ratings is Stable.

ENAMI, an industrial enterprise that is wholly owned by the
Chilean government, provides copper smelting and refining
services to small to midsized mining operations. In addition, it
supports these companies by providing price-stabilization
programs, loans, and technical and marketing assistance. By
performing these functions for companies, ENAMI helps to create
thousands of jobs in areas of Chile where unemployment would
otherwise be high.

Since 1994, ENAMI's total debt (including non-interest bearing
debt) has grown from about USD250 million to nearly USD500
million, mainly as a result of the capital expenditures made to
adhere to stricter environmental standards and the cumulative,
dividend-like advances on earnings made to the Chilean government
of approximately USD164 million.

For the first nine months of 2002, the company's leverage, as
measured by total debt-to-EBITDA, was 11.3 times (x) and its
interest coverage ratio was 2.2x.

Credit ratios are not expected to improve until debt is reduced
by way of a capital infusion or from the sale of assets, such as
the smelting and refining facilities at Ventanas. The Ventanas
assets could generate approximately USD350 million in proceeds.
In addition, the potential exists for ENAMI to form a joint-
venture with a partner such as government-owned Codelco, the
world's largest copper producer. Such an alliance could allow for
synergies between the two state companies and may help strengthen
the credit fundamentals of ENAMI if the proceeds from the full or
partial sale of the Ventanas assets are used to reduce ENAMI's
debt. ENAMI's interests in several Chilean copper mines as well
as numerous mineral prospects could be sold and the proceeds used
to reduce debt.

ENAMI's liquidity is tight, with just USD6 million in cash. The
company's total bank debt was about USD390 million at Sept. 30,
2002. In addition, ENAMI has about USD94 million in non-interest
bearing bank debt raised by assigning export contracts to the
banks. Long-term debt maturities in 2003 and 2004 total
approximately USD130 million and USD73 million, respectively. The
proceeds of the proposed three-year USD220 million syndicated
bank loan would be used to repay two of ENAMI's largest bank
loans for USD150 million and USD70 million. ENAMI expects other
banks to rollover its remaining credit lines of about USD170
million as well as non-interest bearing bank debt.

CONTACT:          Fitch Ratings
                  Anita Saha, 312/368-3179
                  Joe Bormann, 312-368-3349 (Chicago)
                  Hernan Cheyre, +562-0206-7171 (Chile)
                  Media Relations:
                  James Jockle, 212/908-0547 (New York)

SAESA: Planned Capital Increase Gets Shareholder Nod
Shareholders of Saesa Group approved the Chilean distribution
holding company's planned capital increase, which is part of a
refinancing program designed to pay a US$150-million loan due
April 4, 2003, reports Business News Americas. The group is going
forward with a US$36.9-million increase for distributor Saesa, of
which US$26.3 million will be used to capitalize debts owed to
the group's US-based parent PSEG. The remaining balance will be
used to boost cash flow.

The group is also planning a capital increase of US$3 million for
distributor Frontel. The unit will capitalize US$1 million in
debt and increase cash flow with the remainder of its capital
increase. Under the terms of the US$150-million loan, distributor
Saesa owes the banks US$115 million and Frontel owes US$35

The loan was originally due October 18, but the deadline was
extended to November 8, and then extended again after Saesa Group
scrapped a US$175 million bond issue at the last minute due to
investor uncertainty.

Saesa Group still plans to issue the bonds before the April 4
deadline, but for a reduced amount and under different terms to
make the issue more attractive to potential investors.

United States power company PSEG owns Saesa.

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

TERM0CANDELARIA: New Owners To Restructure $160M In Debts
Colombian holding company Proelectrica sold its 340MW
Termocandelaria thermoelectric plant in Cartagena to the former
executives of Chilean power company AES Gener for an undisclosed
amount, reports Business News Americas. Proelectrica is owned by
US power company AES (65%) and US-based investment fund Scudder
Latin America Power Fund (35%).

The former AES Gener executives, who bought the plant through
their holding company SCL Energia, plans to restructure
Termocandelaria's debt totaling US$160 million, most of which are
long-term, El Mercurio newspaper reported. SCL is pinning hopes
of future success on winning the power supply contract for
expansion of the nearby Cartagena oil refinery, the paper added.

The acquisition includes personnel changes such as Eduardo
Damien, a former CEO of AES Gener's Chivor hydro plant in
Colombia, becoming Termocandelaria's CEO.


IMPSAT FIBER: Introduces Disaster Recovery Program In Colombia
Impsat Fiber Networks, Inc., a leading provider of fully
integrated broadband data, Internet and voice telecommunications
services in Latin America, launched a disaster recovery program
BCP (Business Continuity Plan) in Colombia.

The structure, according to Portafolio, includes not only backup
and data center services, but also a physical space from which to
operate, and even personal necessities.

Impsat has expanded its Internet data center in Bogota in order
to offer this new service, which is the first of its type in

The Company currently has 700 client companies, and expects to
end the year with sales of US$57 million, of which 90% comes from
its data transmission services.

Impsat filed for Chapter 11 bankruptcy protection on June 11 this
year, declaring assets of US$337.1 million and liabilities of
US$1.33 billion as of the end of May.

In the first week of November, the Company announced that its
Disclosure Statement was approved by the United States Bankruptcy
Court for the Southern District of New York and that Judge Robert
Gerber authorized the Company to solicit votes on its Plan of
Reorganization under Chapter 11.  The Confirmation Hearing on the
Company's pre-negotiated Plan is scheduled for December 11, 2002.

The Disclosure Statement describes the proposed Plan originally
filed on September 4, 2002, which reflects the terms announced
earlier this year of the agreement in principle with the
Company's largest creditors and subsequently at the time of
filing for Chapter 11. The Official Committee of Unsecured
Creditors, which was elected by the US Trustee, has indicated its
support to the Company's Plan and is urging creditors to accept

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

After the restructuring is completed, Impsat's strengthened
capital structure will reinforce the Company's leadership in the
Latin American telecommunications market.

CONTACT:  IMPSAT Fiber Networks, Inc.
          Hector Alonso or Gonzalo Alende Serra

          John McKenna or Lily Chu

          John McInerney or Robin Weinberg

VALORES BAVARIA: Sells Sofasa Stake To Renault
Valores Bavaria, Colombia's biggest diversified holding group,
will sell its shares in a Colombian auto assembler to French
carmaker Renault SA, Bloomberg indicates. Renault will boost its
stake in Sociedad de Fabricacion de Automotores SA (Sofasa) to
60%, Valores said in a statement, without revealing the value of
the operation. Renault had a 23.7% stake according to a September
filing with the Colombian stock exchange regulator.

Valores Bavaria, which is owned by the Grupo Santo Domingo, is
selling investments in an effort to turn a profit, after a third
quarter loss of COL122.9 billion, about the same as last year.
Valores shares have fallen 46% in the last 12 months, while the
Colombian stock exchange has risen 60%.

Profits in Sofasa, which builds cars for Toyota and Renault in
Colombia, have fallen 57% in the first nine months of the year to
CLP15.46 billion (US$5.5 million).

Valores also controls 50% of Alianza Summa - the merger of the
Colombia's two largest airlines, Avianca and ACES.

            No 7A-47 Calle 94
            Santafe de Bogota DC
            Phone: +57 1 600 2100
            Home Page:
            Javier Aguirre Nogues, Chairman
            Leonor Montoya Alvarez, President
            Victor Alberto Machado Perez, Secretary


GRUPO MEXICO: Analysts Still Perceive As Highly Risky
Analysts believe that mining giant Grupo Mexico SA is still on
shakey financial ground. The forecast comes despite reaching an
agreement with creditors to restructure the US$879 million of
debt held by its local unit Grupo Minero Mexico and agreeing at
the same time to conduct a US$110 million capital increase at the
unit, Dow Jones relates.

"All indications were that the (debt) workout would take place
and it appears that it has," said Joe Bormann, an analyst at
Fitch. "Things are still tight - it's only US$110 million of new
cash - but it did stretch out amortizations in a manner that'll
give them breathing room."

Grupo Minero still looks like a single-B credit, Bormann added.
Single-B ratings imply that a company's financial strength is
"speculative" and well below the average in the universe of
companies in both developed and emerging countries.

Grupo Mexico's capital increase to Grupo Minero "shows the
willingness of the parent to step up with fresh capital," said
Anita Saha, another analyst at Fitch. "They might have to do that
for Asarco."

Asarco, the U.S.-based unit of Grupo Mexico, signed an agreement
with a group of lenders to extend payment on a US$450-million
credit line that matured Nov. 10 to January 31, 2003.

"Asarco is doing fine," said Juan Rebolledo, the vice president
for international affairs at Grupo Mexico. "We are advancing our's moving along but it's not finished yet."

In late 2001, Grupo Minero and Asarco violated their agreements
on US$660 million of secured export debt and a US$450 million
loan, respectively. Creditors have been negotiating ever since
with Grupo Mexico over how they will get paid.

At the end of September, Grupo Mexico had US$2.4 billion in net

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

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

T R I N I D A D   &   T O B A G O

BWIA: Steering Committee Named for Viability Study
The Steering Committee, which would oversee a study on the future
viability of Trinidad and Tobago national airline BWIA, will be
headed by Kenneth Gordon, outgoing chairman of the Caribbean
Communications Network (CCN).

National Enterprises Ltd chairman Jerry Hospedales and Dr. Trevor
Farrell complete the three-man committee. Their work should be
done in six months, according to a Friday report from the
Trinidad Express. Prime Minister Patrick Manning announced the
appointments at a news conference at Whitehall.

The report further indicated that the Steering Committee would
determine the terms of reference of the consultants to be
employed and examine the concept of a regional airline. The third
objective would be to determine how Piarco International Airport
can be converted into a "an alternate hub into South America",
citing the country's Trade and Industry Secretary Kenneth Valley.

Meanwhile, Mr. Gordon is also appointed chairman of both First
Citizen's Bank Ltd., and First Citizen's Holding Ltd.

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

TRINIDADIAN AIRLINES: Subsidized Airbridge Rates Extend Survival
The government of Trinidad and Tobago has agreed to subsidize the
Tobago airbridge, said Trade and Industry Minister Kenneth
Valley. The planned subsidy, which would cost the government US$6
million per year, would greatly benefit Trinidadian airlines BWIA
and Tobago Express.

Earlier, Nelson Tom Yew, Tobago Express' general manager said
that the airline would not survive if the government would not
subsidize the reduced fare. BWIA Corporate Communications
Director Clint Williams said that BWIA is awaiting the details of
the proposed airfare reduction. The airbridge would reduce
airfare to US$200 and would be effective starting January 1 next

However, in the event that the traveler cancels or changes the
ticket, he would have to pay the unreduced fare of US$300, said
Penelope Beckles, Minister of Culture and Tourism. She added that
the US$200 airfare could be availed when the traveler buys the
ticket seven days ahead of the flight. BWIA had initially asked
that passengers should book three weeks in advance in order to
receive the airbridge rate.

          General Information

          Head-Office & Administration


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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