TCRLA_Public/021217.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 17, 2002, Vol. 3, Issue 249

                           Headlines

A R G E N T I N A

AT&T LATIN AMERICA: Analyst Downplays Boost In Share Price
REPSOL YPF: Cutting Natural Gas Exploration on Price Fall


B E R M U D A

TYCO INTERNATIONAL: Declares Regular Quarterly Dividends


B R A Z I L

AES CORP.: Completes Bond Exchange and Bank Refinancing
AES CORP: Credit Rating Affirmed; Off CreditWatch
AES CORP. S&P Affirms `BB+' Rating On $120M Bank Loan
CFN: CVRD Considers Pullout
LIGHT: Temporarily Resolves Dispute With Two Labor Unions

TELEMAR: To Expand "Velox" ADSL Offering Next Year
VARIG: Petroleo To Seize More Assets After Rejecting Debt Plan


C O L O M B I A

SEVEN SEAS: Plans To Sell Producing Properties


M E X I C O

EMPRESAS ICA: Inbursa Credit Implies Vote Of Confidence
SAVIA: Distributing Seminis Shares


T R I N I D A D   &   T O B A G O

BWIA: Receivership Not An Option, Says President


U R U G U A Y

* IMF Aid Awaits Resolution of Four Suspended Banks


V E N E Z U E L A

CANTV: S&P Cuts Corporate Credit Rating To `CCC+'
EDC: S&P Cuts Credit Rating Following Sovereign Downgrade
PDVSA: S&P Cuts Rating to 'CCC+'; Outlook Negative
PDVSA FINANCE: S&P Lowers Senior Unsecured Notes Ratings
PETROZUATA FINANCE: S&P Lowers Ratings to 'B+'; Still on Watch

* S&P Lowers LTFC Rating On Default Probability

     -  -  -  -  -  -  -  -

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

AT&T LATIN AMERICA: Analyst Downplays Boost In Share Price
-----------------------------------------------------------
Shares of regional corporate communications provider AT&T Latin
America soared 138% Thursday to close at US$0.43/share on volume
of 5.99 million shares, compared to average daily volume of 1
million shares for the last 30 days, reports Business News
Americas.

But according to Kaufman Brothers equity analyst Vik Grover,
there was nothing more to it than just mere investor speculation.
He indicated that the boost in the stock was just driven by day
traders playing on the news that ATTL received a long distance
license in Brazil.  The heavy trading began shortly after the
Company released a statement on the license at 1:30PM EST
Thursday.

"They're just gamblers, not real investors," Grover said.

"The stock will come back down to US$0.20/share," Grover said,
adding a sustained rise in the share price is unlikely because
there is little equity in the Company.

To see financial statements: http://bankrupt.com/misc/AT&T.htm

CONTACT:  Media Relations
          Jim McGann
          +1-202-689-6337
          james.mcgann@attla.com

          Lydia Rodriguez
          +1-202-689-6323
          lydia.rodriguez@attla.com

          Investor Relations
          Catherine Castro
          +1-202-689-6336
          catherine.castro@attla.com

          URL: http://www.attla.com


REPSOL YPF: Cutting Natural Gas Exploration on Price Fall
---------------------------------------------------------
Due to the decline in natural gas prices in Argentina, Repsol YPF
SA, will reign in its gas exploration there, newspaper La Nacion
reports, citing company Chairman Alfonso Cortina.

Argentina saw an 82% plunge on the price of its natural gas,
making it one of the lowest in the world, following the
devaluation of the currency in Jan. 6. The Argentine government
is analyzing whether to increase the percentage of export revenue
energy companies need to keep in the country.

"It's fundamental to keep the rules of the game if the country
wants to guarantee investments to continue," Cortina said,
according to La Nacion.

Repsol YPF generates an average of 445,00 barrels of oil per day
in Argentina. About a quarter of this figure is exported at about
US$20 per barrel. This converts to around US$812 million in
export earnings for the Company every year.

CONTACT: REPSOL YPF SA
         Head Office
         Paseo de la Castellana 278
         28046 Madrid
         Spain
         Tel  +34 91 348 81 00
         Fax  +34 91 348 28 21
         Telex  48162 RESOLE
         Web  http://www.repsol.com
         Contact:
         Alfonso Cortina de Alcocer, Chairman
         Jose Vilarasu Salat, Vice Chairman
         Antonio Hernandez, Vice Chairman



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

TYCO INTERNATIONAL: Declares Regular Quarterly Dividends
--------------------------------------------------------
The Board of Directors of Tyco International Ltd. (NYSE: TYC,
LSE: TYI, BSX: TYC) has declared a regular quarterly cash
dividend of one and one quarter cents per common share. The
dividend is payable on February 3, 2003 to shareholders of record
on January 2, 2003.

About Tyco International Ltd,

Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) 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 reported fiscal 2002
revenues from continuing operations of approximately $36 billion.

CONTACT:  Gary Holmes
          Tel 212-424-1314



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

AES CORP.: Completes Bond Exchange and Bank Refinancing
-------------------------------------------------------
The AES Corporation (NYSE: AES) announced Thursday that it
successfully completed its $2.1 billion bank and bond refinancing
comprised of a $1.6 billion senior secured credit facility and
its exchange offer relating to $500 million of its outstanding
debt securities.

This refinancing substantially eliminates all scheduled parent
maturities at AES until November 2004, improving liquidity,
reducing debt service burden and enhancing financial flexibility.

Paul T. Hanrahan, AES President and Chief Executive Officer,
commented, "This refinancing is a major accomplishment as it
provides a solid foundation for AES's future. With the financial
stability afforded by this transaction, we can now focus entirely
on implementing our business plan, including our emphasis on
operational excellence and the execution of our asset sales and
cost reduction programs."

AES accepted all bonds validly tendered in its exchange offer for
its $300,000,000 8.75% Senior Notes due 2002 ("2002 Notes") and
its $200,000,000 7.375% Remarketable or Redeemable Securities due
2013, which are puttable in 2003 ("ROARs"). Approximately
$240,013,000 aggregate principal amount of the 2002 Notes and
$173,889,000 aggregate principal amount of the ROARs were
tendered. These amounts represent approximately 80% and 87% of
the outstanding 2002 Notes and ROARs, respectively. The new
Senior Secured Notes (the "Senior Secured Notes"), totaling
approximately $258 million, bear a coupon of 10% and will mature
on July 15, 2005 unless certain conditions are met to extend them
to December 12, 2005. The Senior Secured Notes have certain
mandatory prepayment provisions and scheduled amortization
payments. The Senior Secured Notes will be issued and the other
exchange offer consideration will be paid on December 13th.

AES also completed the $1.6 billion Senior Secured Credit
Facility ("Credit Facility") comprised of a $350 million
revolving credit facility, three tranches of term loans totaling
approximately $1.2 billion, and a reimbursement agreement
associated with a GBP 52.5 million letter of credit.

The Credit Facility benefits from a first priority lien, subject
to certain exceptions and permitted liens, on (i) all of the
capital stock of domestic subsidiaries owned directly by AES and
65% of the capital stock of certain foreign subsidiaries owned
directly by AES and (ii) certain inter-company receivables and
notes receivable and inter-company tax sharing agreements. The
collateral is shared with the Senior Secured Notes and certain
other secured parties.

The Credit Facility matures on July 15, 2005 with a potential
extension to December 12, 2005 if certain conditions are met. The
Credit Facility requires mandatory prepayments associated with a
proportion of the proceeds from asset sales, the issuances of
debt and equity securities and certain other cash flow sweeps.
Minimum amortization of approximately $810 million by no later
than November 25, 2004 will be required with mandatory
prepayments made prior to that date credited against such
required amortization. Loans under the revolving credit facility
and the term loan facilities bear an interest rate of LIBOR plus
6.5% or Prime plus 5.5%.

Barry Sharp, Chief Financial Officer, stated, "The completion of
this comprehensive refinancing is a major milestone for our
company. Our capital structure now allows us the time and
flexibility we need to continue to strengthen our balance sheet.
We are excited to have this refinancing completed and sincerely
appreciate the overwhelming support and the confidence expressed
by the bank and bond community in AES."

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 176
facilities totaling over 60 gigawatts of capacity, in 33
countries. AES's electricity distribution network sells 108,000
gigawatt hours per year to over 16 million end-use customers.

CONTACT:  AES CORPORATION
          Kenneth R. Woodcock, 703/522-1315


AES CORP: Credit Rating Affirmed; Off CreditWatch
-------------------------------------------------
Standard & Poor's Ratings Services on Friday affirmed its 'B+'
corporate credit rating on The AES Corp. (AES). At the same time
Standard & Poor's lowered its ratings on all of AES' senior
unsecured debt to 'B-' from 'B+'; affirmed the 'BB' rating on
AES' $1.62 billion senior secured bank facility and $350 million
senior secured exchange notes; affirmed the 'B-' rating on AES'
subordinated notes; and affirmed the 'CCC+' rating on AES' trust
preferred securities. All ratings have been removed from
CreditWatch where they were placed with negative implications on
Oct. 3, 2002. The outlook is negative.

The affirmation comes as AES has announced the closing of its
senior secured bank facility and senior secured exchange notes
maturing December 2005.

"The closing lifts the immediate threat of insolvency, and
provides AES with the ability to focus on its goal of improving
credit by selling assets and paying down parent-level debt to a
more manageable level, and by improving operations at its
operating businesses," said credit analyst Scott Taylor. As
Standard & Poor's has stated previously, the lower rating on the
unsecured notes reflects their disadvantaged position relative to
the newly secured senior notes. The negative outlook reflects the
need for AES to execute on this plan over the course of the next
two to three years, as well as the uncertainty surrounding the
outcome of negotiations with BNDES regarding approximately $900
million of debt maturities at AES Elpa and AES Transgas, the
holding companies of Eletropaulo (SD/--/--), in
2003, and indenture provisions that may allow unsecured holders
at AES Corp. to accelerate under certain bankruptcy events at
material subsidiaries. Such subsidiaries currently include AES
Drax (CC/Watch Neg/--) and C.A. Electricidade de Caracas, and
will likely soon include Eletropaulo according to AES Corp.

Standard & Poor's estimates that AES' liquidity will stand at
about $150 million given the close of the transaction and the
payoff of the December 2002 notes that were not tendered.
Standard & Poor's further estimates FFO/interest coverage in 2003
of between 1.5x and 1.7x and FFO/Debt of 14% - 15% given a range
of projected distributions from subsidiaries from $900 million to
$1.0 billion. Assuming capital expenditures of $200 million,
Standard & Poor's further estimates free cash flow, excluding any
proceeds from asset sales, of $50 million to $150 million.  If
asset sales and debt paydowns are executed, these metrics would
change depending on the amount of debt paid down and the cash
flows forgone by asset sales. Standard & Poor's will continue to
evaluate AES' evolving financial profile as AES moves forward
with its asset sale program.

Standard & Poor's has emphasized that the magnitude of
refinancing over the next several years is the largest hurdle
currently facing the independent power producers, and AES'
management has made substantial strides in restoring the
company's credit by closing this transaction and relieving
refinancing pressure. By pushing out all significant debt
maturities until November 2004, AES has put itself ahead of the
curve in this regard, but still faces substantial hurdles that
are reflected in the negative outlook.

Analyst:  Scott Taylor
          New York
          Tel (1) 212-438-2057

          Arthur F Simonson
          New York
          Tel (1) 212-438-2094


AES CORP. S&P Affirms `BB+' Rating On $120M Bank Loan
-----------------------------------------------------
Standard & Poor's Ratings Services on Friday affirmed its 'BB+'
rating on the $120 million bank loan secured by Compania de
Alumbrado Electrico de San Salvador S.A. de C.V. (CAESS), Empresa
Electrica De Oriente S.A. de C.V. (EEO), and Distribuidora
Electrica De Usulutan.  The rating affirmation came due to their
rating linkage to The AES Corp. (B+/Neg/--). The S&P removed the
rating from CreditWatch where it was placed with negative
implications on Oct. 3, 2002. The outlook is negative.

The rating action is directly attributable to the downgrade of
AES' ratings. There have been no other events that in and of
themselves would have caused a rating action on these
subsidiaries.

In most circumstances, Standard & Poor's will not rate the debt
of a wholly owned subsidiary higher than the rating of the
parent. Exceptions can be made, and were in these cases, on the
basis of the cumulative value provided by enhancements such as
structural protections, covenants, a pledge of stock, and an
independent director, assuming the stand-alone credit quality of
the entity supports such elevation.

These provisions serve to make these subsidiaries bankruptcy
remote from a sponsor with weaker credit quality. Standard &
Poor's views these provisions as supportive in that they reduce
the risk of a subsidiary being filed into bankruptcy in the event
of a parent bankruptcy, but does not view them as 100%
preventative of such a scenario. Therefore, Standard & Poor's
limits the rating differential provided by such structural
enhancements to three notches. On that basis, AES subsidiaries'
corporate credit ratings cannot be higher than 'BB+'.

CAESS' and EEO's primary source of cash to service their debt
burden comes from the stable operation of their distribution
business. As of June 30, 2002, CAESS' and EEO's nonrestricted
cash positions were $2.0 million and $10.3 million, respectively.
The debt service reserve account had $2.3 million and $800,000,
respectively. The companies have lines of credit with local banks
in the amount of $2.0 million and $3.5 million, respectively. The
mentioned lines of credit currently have no outstanding balance
on either facility and the companies' maturity schedule is
manageable as no debt comes due until 2010. The companies must
maintain a debt-to-capitalization ratio below 65.1% and a debt
service coverage ratio minimum of 1.5x. As of Sept. 30, 2002,
they were in compliance with the financial ratios.

Analyst:  Donaji Valencia
          Mexico City
          Tel (52) 55-5279-2054


CFN: CVRD Considers Pullout
---------------------------
Brazilian mining and logistics giant CVRD may divest its stake in
the money losing railroad concession CFN, CVRD general manager
Roger Agnelli told journalists. CVRD only expects to stay with
CFN if the other partners exit the concessionaire.

"CVRD's condition is to go alone or leave," Agnelli said. "But
with a negative net worth, the one that leaves has to pay the one
who decides to stay."

According to Business News Americas, federally-owned development
bank BNDES has injected CFN with BRL100 million (currently
US$27mn) in financing.

Agnelli said the problem with Brazil's transport sector stems
from the model of concessions that was adopted by the government.
Agnelli expects authorities to make changes to the concession
contracts of the railroad. The regulation restricting a company
to a maximum of 20% of a concessionaire's capital blocks the
necessary capitalization of these companies, he said.

CFN, which also includes Rio de Janeiro-based flat steelmaking
company CSN and the Vicunha group, operates a total of 4,500km of
track.


LIGHT: Temporarily Resolves Dispute With Two Labor Unions
---------------------------------------------------------
Thursday's meeting between Brazil's Rio de Janeiro city
distributor Light and two labor unions ended a ten-day strike.

According to Business News Americas, workers of the Sintergia and
Senge unions voted to agree to the terms of a temporary proposal
made by regional labor court judge Nelson Tomaz Braga. Light, for
its part, said it would not lay off any employees until the
regional tribunal hearing, in exchange for the unions' commitment
to end the strike.

Sintergia spokesperson Urbano do Vale Coelho told Business News
Americas that the regional court will hold a hearing once it
returns from the Christmas recess in January to listen to both
sides and rule on the dispute.

The dispute began when the unions' collective contract ended
November 30. Upon renewal of the contract, the unions sought for
a 10.2% increase, which they said was in line with inflation.
They also asked Light to introduce in the latest contract a job
stability clause.

Light offered only a 5% salary increase, which the unions were
prepared to accept provided that the Company include in the
contract a job guarantee clause. However, the Company refused to
give in to the second demand saying that for financial reasons it
needs to reduce its personnel faster, and according to Coelho,
had planned to lay off 700 workers at the end of this year.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


TELEMAR: To Expand "Velox" ADSL Offering Next Year
--------------------------------------------------
Brazilian fixed line operator Telemar plans to expand its "Velox"
ADSL offering in 2003, adding users in the cities already served
such as Rio de Janeiro, Belo Horizonte, Vitoria and Salvador,
reports Brazilian daily Estadao. It will also launch the service
in Recife and Fortaleza.

The Company currently has only 40,000 Velox customers but it
expects to broaden the client base to 60,000 by year-end since it
has been installing lines at the rate of 10,000/month, and aims
to double this by end-2003, according to Telemar consumer market
director Eduardo Aspesi as saying.

Telemar plans to invest some BRL100 million (US$26.8mn) for the
expansion, the report says.

Part of Telemar's heavy network investments in 2001 were designed
to bring infrastructure up to ADSL standards, as well as meeting
coverage goals that would earn the Company the right to enter new
markets and services.

As a latecomer to the ADSL market, Telemar should avoid mistakes
made by other service providers, such as failure to clarify
exactly where the service is available or difficulties in dealing
with technical failures. Telemar marketing will be directed only
towards potential clients that will need intensive Internet
access.

Telemar is Brazil's largest fixed line operator in terms of
network infrastructure, with 17.6 million installed lines and
15.1 million lines in service at the end of September.

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


VARIG: Petroleo To Seize More Assets After Rejecting Debt Plan
--------------------------------------------------------------
Brazilian airline Viacao Aerea Rio-Grandense SA failed to get
state-controlled fuel supplier Petroleo Distribuidora SA to agree
to its proposal to restructure BRL270 million in debt, reports O
Globo.

As a result, Petroleo, which earlier seized BRL15 million ($3.9
million) in credit card receipts and other revenue that guarantee
unpaid jet fuel purchases, plans to seize another BRL55 million
in assets.

Varig has been struggling to make payments on its US$900 million
debt after a 39% decline in Brazil's currency and a slump in air
travel boosted losses. Chief Executive Manuel Guedes is trying to
convince creditors to give Varig more time to make debt payments
and inject capital into the Company.

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



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

SEVEN SEAS: Plans To Sell Producing Properties
----------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced that its
Colombian subsidiaries entered into an Asset Purchase Agreement
with Sociedad Internacional Petrolera S.A. ("Sipetrol") for sale
of the subsidiaries' interest in the shallow Guaduas Oil Field,
inclusive of the 40-mile Guaduas-La Dorada Pipeline effective
December 13, 2002.

Sipetrol Agreement

Sipetrol has agreed to purchase the combined 57.7% participating
interests and related assets of Seven Seas Petroleum Colombia,
Inc., GHK Company Colombia and Petrolinson S.A. in the shallow
Guaduas Oil Field. Sipetrol is currently a 32.9% owner of
participating interest in the shallow Guaduas Oil Field and is a
party to a Joint Operating Agreement with the subsidiaries. The
basic terms are:

* The purchase price is $20 million subject to certain
  adjustments and taxes
* The effective time is 7:00 am on December 13, 2002
* The Closing is contingent on obtaining governmental approvals
  from both Chile and Colombia and the consent of Chesapeake
  Energy Corporation pursuant to the Note Purchase and Loan
  Agreement between Chesapeake and the Company, among other
  things
* The Closing is expected to occur in late January or early
  February
* GHK Company Colombia will continue to operate the shallow
  Guaduas Oil

Field pending Closing

Auction Process

The Company engaged CIBC World Markets ("CIBC") to provide
financial advice in late September 2002. CIBC commenced an
auction process to sell the producing interests in the Guaduas
Oil Field. This included establishing data rooms in Houston and
in Colombia and soliciting interests from fifty companies. Nine
companies went through the data rooms. Bids from several
prospective buyers were received in mid- November and this
process resulted in the agreement with Sipetrol on Friday.

Remaining Assets and Operations

After the sale, the only material assets of the Company and its
subsidiaries will be the rights associated with the Deep Dindal
association contract and certain Colombian tax assets. Neither
the Company nor its subsidiaries will have sufficient cash to
conduct any additional exploration activities.

The Company has been actively seeking to secure additional
financing or find a partner to participate in the completion of
the Escuela 2 well and test the commercial potential of the Deep
Dindal prospect. To date, the Company has been unsuccessful in
these efforts; however, the Company is continuing its efforts to
find a third party to provide the necessary financing to test the
Escuela 2 well. Even if tested, there are no assurances that the
Escuela 2 well would be productive and provide additional value.

After December 15, 2002, the Company may be in default under the
12-1/2% $110 Million Senior Subordinated Notes. Now that the
financial circumstances of the Company are more clearly defined,
the Company will accelerate its discussions with representatives
of the Senior Subordinated Noteholders.

The Company has received notice from Chesapeake that it is
currently in default under its 12% $45 Million Senior Secured
Notes ("$45 Million Notes"). Chesapeake as the collateral agent
for the $45 Million Notes holds a lien on the stock of all of the
Company's subsidiaries and its cash accounts.

AMEX Listing

As previously announced Seven Seas has been notified by the
American Stock Exchange ("AMEX") that the Company fails to meet
specific listing standards. The Company previously submitted a
plan to the AMEX to remedy these deficiencies; however, based
upon the present circumstances, the Company cannot satisfy the
AMEX standards

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America.

CONTACT:  SEVEN SEAS PETROLEUM INC.
          Daniel Drum, Investor Relations
          +1-713-622-8218



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

EMPRESAS ICA: Inbursa Credit Implies Vote Of Confidence
-------------------------------------------------------
The recently obtained MXN1.18-billion (US$115M) line of credit
from Mexican financial group Inbursa sends out positive signals
for local construction company, Empresas ICA.

"We see [the Inbursa facility] as a vote of confidence for ICA,
and besides giving the company liquidity, will help it obtain
better terms with other creditors," an analyst from brokerage IXE
Casa de Bolsa was quoted as saying.

According to a report by released by Mexico City daily el
Economista, ICA (Ingenieros Civiles Asociados) has downsized and
taken on smaller projects in light of its US$180-million debt and
a lack of important infrastructure projects in the country.

Although a lack of structural reforms means the outlook for
Mexico's construction industry next year is unclear, the
Company's operations could benefit due to the fact that 2003 is
an election year, according to IXE analysts.

Founded in 1947, ICA has completed construction and engineering
projects in 21 countries. ICA's principal business units include
Civil Construction and Industrial Construction. Through its
subsidiaries, ICA also develops housing, manages airports and
operates tunnels, highways and municipal services under
government concession contracts and/or partial sale of long term
contract rights.

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

CONTACTS:    EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
             Bernardo Quintana Isaac, Chairman/Pres/CEO
             Jos, L. Guerrero Alvarez, EVP Finance and CFO

             THEIR ADDRESS:
             Mineria No. 145, Colonia Escand>n
             11800 Mexico, D.F., Mexico
             Phone: +52-55-5272-9991
             Fax: +52-55-5227-5012
             URL: http://www.ica.com.mx


SAVIA: Distributing Seminis Shares
----------------------------------
Savia, S.A. de C.V. (BMV: SAVIA; NYSE: VAI) announced Friday that
it has signed a letter of intent with Fox Paine & Company, LLC, a
San Francisco-based private equity firm, under which Fox Paine,
and certain Savia related parties will acquire all of the
outstanding shares of Seminis, Inc. (Nasdaq: SMNS), the world's
largest developer, producer and marketer of fruit and vegetable
seeds. The proposed transaction has a total enterprise value in
excess of US$650 million.

As part of the transaction Savia will exchange its Seminis Class
C preferred shares for approximately 37.7 million shares of
Seminis common stock, after which, the total number of
outstanding Seminis common shares will be approximately 101.7
million. Savia will distribute most of its Seminis common shares
to Savia shareholders, or approximately 73.9 million shares, and
retain approximately 4.4 million shares. In addition, Savia will
sell the convertible debentures approved by the shareholders
meeting on September 2, 2002 and will sell the 4.4 million
retained Seminis shares. The proceeds will be used to repay a
portion of Savia's indebtedness.

Under the terms of the proposed transaction, Savia shareholders
that received Seminis shares and the public holders of the
outstanding shares of Seminis, will each receive, US$3.40 per
share in cash. Based upon Seminis' closing price of US$2.51 on
Friday, December 13, 2002, this represents a premium of 35%.

Savia, Alfonso Romo Garza, the Chairman and Chief Executive
Officer of Seminis, and certain entities affiliated with Mr. Romo
will enter into voting agreements to vote their shares,
representing, in the aggregate approximately 85% of the voting
power of Seminis, in favor of the transaction.

The letter of intent contemplates that existing management will
continue to run the company, with Mr. Romo continuing as Chairman
and Chief Executive Officer and Dexter Paine, President of Fox
Paine, serving as Vice Chairman of Seminis.

Mr. Romo said, "We are pleased to have found a partner in Fox
Paine. Their valued strategic insight and expertise will help
strengthen Seminis' position as the world's leading provider of
high-quality specialty seeds in both developed and emerging
markets. We will focus on capturing value in the food chain and
offering total solutions to our customers. Fox Paine's interest
and expertise in the industry, as well as their experience in
structuring complex transactions makes Fox Paine a valuable
partner. We will be working diligently over the near term to
execute definitive agreements."

Mr. Paine said, "We are very excited by the prospect of
participating in the future growth of Seminis through this
strategic investment. Seminis' innovative agricultural technology
and its experienced and talented management team, led by Alfonso
Romo Garza, together with its new capital structure, will
accelerate the next stage of this dynamic company's development."

The proposed transaction is subject to certain conditions,
including the satisfactory completion of a review of the business
and financial condition of Seminis by Fox Paine, the negotiation
of definitive agreements covering the transactions contemplated
under the letter of intent, the refinancing and incurrence of
additional indebtedness of Seminis, the acquisition of the
Seminis shares held by the public, the approval of bank lenders
of both Savia and its controlling shareholders, the obtaining of
regulatory approvals, the approval of the Board of Directors of
Savia and Seminis and the approval of shareholders of Savia (and
certain transactions among the controlling shareholders) and
Seminis.

Safe Harbor Statement

All statements in this press release other than statements of
historical facts are "forward-looking" statements, including
without limitation statements regarding the Company's financial
position, business strategy, plans, proposed transaction and
objectives of management and industry conditions. Although the
Company believes that the expectations reflected in such forward-
looking statements are reasonable, it can give no assurance that
such expectations will prove to be correct or that the proposed
transaction will be completed. The following factors, among
others, may affect the Company's actual results or the proposed
transaction and could cause such results to differ materially
from those expressed in any forward-looking statements made by or
on behalf of the Company: competitive factors, agribusiness
risks, governmental and economic risks associated with foreign
operations, need for additional financing as well as changes in
the equity markets. Further information on the factors that could
affect the Company's financial results is contained in the
Company's latest 20-F filed with the Securities and Exchange
Commission.

Savia (http://www.savia.com.mx)participates in industries that
offer high growth potential in Mexico and internationally. Among
its main subsidiaries are: Seminis a global leader in the
development, production and commercialization of fruit and
vegetable seeds; Bionova, a grower and marketer of fresh produce;
and Omega, a real estate development company.

Seminis, Inc. (http://www.seminis.com)is the world's largest
developer, producer and marketer of vegetable seeds. The company
uses seeds as the delivery vehicle for innovative agricultural
technology. Its products are designed to reduce the need for
agricultural chemicals, increase crop yield, reduce spoilage,
offer longer shelf life, create better tasting foods and foods
with better nutritional content. Seminis has established a
worldwide presence and global distribution network that spans 150
countries and territories.

Fox Paine & Company, LLC manages investment funds in excess of
US$1.5 billion, providing equity capital for corporate
acquisitions, company expansion and growth programs and
management buyouts. The Fox Paine funds are managed on behalf of
over 50 leading international financial institutions, including
major governmental and corporate pension systems, Fortune 100
companies, major life and property & casualty insurance and
reinsurance companies, money center and super regional commercial
banks, investment banking firms, and university endowments. Fox
Paine was founded in 1997 by Saul A. Fox, a former general
partner of Kohlberg Kravis Roberts & Co., and W. Dexter Paine,
III, a former general partner of Kohlberg & Co. More information
about Fox Paine can be found at http://www.foxpaine.com.

CONTACT:  SAVIA
          Francisco Garza
          Tel +52-818-1735500
          Email fjgarza@savia.com.mx
                or
          Media
          Francisco del Cueto
          Tel +55-56-623198
          Email delcueto@mail.internet.com.mx
          Website: http://www.savia.com.mx/

          JOELE FRANK
          Andy Brimmer
                or
          Nina Covalesky
          Web site:  http://www.foxpaine.com

          FOX PAINE
          Wilkinson Brimmer Katcher
          Tel  +1-212-355-4449, for Fox Paine/
          Web site: http://www.seminis.com



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

BWIA: Receivership Not An Option, Says President
------------------------------------------------
BWIA president Conrad Aleong admitted that the financial
situation at the airline is "still difficult" but ruled out
receivership as a possible solution to the airline's woes.

He noted receivership is a "fatal wound," and said, "we are not
going there as long as management can help it."

Just recently, BWIA slashed five managerial jobs as it scrambles
to save US$1.4 million a month to qualify for financial
assistance from the Government. Compensation packages have been
offered to them. One of the five negotiated an early retirement
package with the airline.

When asked about future job cuts, Aleong said: "We are finding
some areas where we can save the cash if we can do without those
particular positions. So we are doing what we can and as we find
positions we will continue to do so."

"We've tried to make it voluntary and we're still working hard on
making it voluntary," he said.

Jagroop Jagdeo, of CATTU, one of the airline's unions, said
employee morale was low because they had been hearing of job cuts
for a long time.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)



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

* IMF Aid Awaits Resolution of Four Suspended Banks
---------------------------------------------------
Uruguay may have to wait long before getting the US$380-million
portion of the US$2.8-billion loan from the International
Monetary Fund, reports Bloomberg.

The IMF has indicated that Uruguay must seek a resolution to a
deposit freeze and liquidity problems at four banks, whose
operations have been suspended, before getting the installment of
the loan.  The banks in question are Banco Comercial, Banco
Montevideo, Banco Caja Obrera and Banco de Credito,

"Resolution of the four suspended banks is very important" to the
IMF as the lender considers whether to disburse the installment,
IMF spokeswoman Angela Gaviria said in a statement.

The two-year IMF aid arrangement, approved in March and augmented
in August, has slowed a decline in Uruguay's bonds and currency,
which have fallen on investor concerns the country would default
on its debt.

"Macroeconomic developments under the program so far have been in
line with the targets established in August, and we are
encouraged by the stabilization of financial indicators since
them," Gaviria said.

Still, important issues are unresolved, she said. The IMF and
Uruguayan authorities are discussing a fiscal plan for 2003 and a
target for economic growth, she said.

"A key concern for the fund, as for the authorities, is the
growth outlook for the Uruguayan economy," Gaviria said. "We are
attaching great importance to establishing the necessary
conditions for a strong and sustained recovery of confidence,
investment, and growth."

CONTACT:  BANCO COMERCIAL
          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page: www.bancocomercial.com.uy/

          BANCO MONTEVIDEO
          Misiones
          1399 - Montevideo
          Fax: 9162880
          E-mail: info@bm.com.uy
          Home Page: http://www.bancomontevideo.com.uy
          Contact: Sr. Marcelo Pestarino, President



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

CANTV: S&P Cuts Corporate Credit Rating To `CCC+'
-------------------------------------------------
Standard & Poor's Ratings Services said on Friday that it lowered
its foreign currency corporate credit rating on Venezuelan
utility Compania Anonima Nacional Telefonos de Venezuela (CANTV)
to 'CCC+' from 'B-', following a similar action taken on the
ratings of the Bolivarian Republic of Venezuela.

The outlook on the rating remains negative.

The sovereign downgrade reflects the increasing probability of
default given the environment of growing political polarization,
critical social divisions, and economic paralysis due to the
ongoing strikes. The manner in which the political impasse could
be resolved remains uncertain as the opposition stiffens its
resolve and President Hugo Chavez hardens his position. Removal
of President Chavez would likely lead to a heightened
mobilization of his supporters and result in increased violence.

At the same time, the opposition remains fragmented and without a
leader who could begin to bridge the country's continually
deepening social divide. If President Chavez remains in power,
there is an increased probability that his administration will
become more radical, especially if a state of emergency is
called.

"CANTV's seasonally high December sales have been affected by the
ongoing strikes, but the business and financial profile of the
company should remain strong for its revised rating even
considering the recently approved extraordinary dividends. The
'CCC+' rating is also based on the effect that sovereign
implications might have on CANTV's credit profile," stated
Standard & Poor's credit analyst Patricia Calvo.

CANTV is partially owned by Verizon Communications Inc. and
Telefonica S.A..

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

          Santiago Carniado
          Mexico City
          Tel (52) 55-5279-2013


EDC: S&P Cuts Credit Rating Following Sovereign Downgrade
---------------------------------------------------------
Standard & Poor's Ratings Services said on Friday it downgraded
its foreign currency corporate credit rating on Venezuelan
utility C.A. La Electricidad De Caracas (EDC) to 'CCC+' from 'B-
', following a similar action taken on the ratings of the
Bolivarian Republic of Venezuela.

The rating's outlook remains negative.

The sovereign downgrade reflects the increasing probability of
default given the environment of growing political polarization,
critical social divisions, and economic paralysis due to the
ongoing strikes. The manner in which the political impasse could
be resolved remains uncertain as the opposition stiffens its
resolve and President Hugo Chavez hardens his position. Removal
of President Chavez would likely lead to a heightened
mobilization of his supporters and result in increased violence.

At the same time, the opposition remains fragmented and without a
leader who could begin to bridge the country's continually
deepening social divide. If President Chavez remains in power,
there is an increased probability that his administration will
become more radical, especially if a state of emergency is
called.

In a report, Standard & Poor's credit analyst Santiago Carniado
commented: "rising accounts receivables could further affect
EDC's credit quality because of the rising unemployment and the
inflation increases affecting businesses prospects and clients'
purchasing power."

EDC is a subsidiary of U.S.-based AES Corp.

Analyst:  Patricia Calvo
          Mexico City
          Tel (52) 55-5279-2073

          Santiago Carniado
          Mexico City
          Tel (52) 55-5279-2013


PDVSA: S&P Cuts Rating to 'CCC+'; Outlook Negative
--------------------------------------------------
Standard & Poor's Ratings Services said Friday it lowered its
corporate credit rating on Venezuelan state oil company Petroleos
de Venezuela S.A. (PDVSA) to 'CCC+' from 'B-'.

The outlook is negative.

The ratings downgrade reflects the downgrade of the credit
ratings of the Bolivarian Republic of Venezuela. Future ratings
changes will be linked to those on Venezuela.

"The ratings downgrade also reflects the near paralysis of
PDVSA's operations caused by labor unrest and political tensions
in Venezuela," said Standard & poor's credit analyst Bruce
Schwartz.

In recent days, PDVSA's production volumes reportedly have fallen
by about 70% and little to no oil and refined products have been
exported. PDVSA has declared force majeure on all crude oil
supply contracts and risks a near-complete operational shut-down
if storage capacity fills before PDVSA's export capability is
restored.

Standard & Poor's believes that the aforementioned operational
disruptions are straining PDVSA's financial position. Although
PDVSA appears to have cash balances (about $360 million plus
access to about $3 billion in the FIEM) plus available
incremental bank credit (more than $300 million at its wholly
owned subsidiary CITGO Petroleum Corp.) that exceed debt payments
through March, 2002 (about $370 million), Standard & Poor's
nevertheless is concerned that trade and financial debt payments
could be missed or deferred if the company's operations do not
normalize in the near future.

ANALYSTS:  Bruce Schwartz, CFA, New York (1) 212-438-7809
           Jose Coballasi, Mexico City (52) 55-5279-2014


PDVSA FINANCE: S&P Lowers Senior Unsecured Notes Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services on Friday lowered its ratings
on PDVSA Finance Ltd.'s senior unsecured notes to 'BB' from
'BB+'. The downgrade affects US$3.6 billion and Eur200 million
senior unsecured notes. The notes remain on CreditWatch, where
they were placed Dec. 10, 2002, with negative implications (see
list).

The rating action follows the lowering of Bolivarian Republic of
Venezuela's long-term foreign currency rating to 'CCC+' from 'B-
', and the subsequent lowering of Petroleos de Venezuela S.A.'s
(PDVSA) foreign currency rating to 'CCC+' from 'B-'. PDVSA
Finance is a wholly owned subsidiary of PDVSA. The negative
outlooks on the sovereign and PDVSA have been maintained.

The downgrade of the PDVSA Finance notes reflects recent severe
and continuing oil production and export shortfalls stemming from
a strike that began on Dec. 2, 2002. As a result of these
strikes, the Venezuelan economy is estimated to be losing about
US$50 million a day in export revenues at a time when the
government is under increasing financial and political pressure.
Standard & Poor's is concerned that the government, which
receives a substantial portion of its revenues from the export of
PDVSA's oil production, may have an increased incentive and
willingness to interfere in the offshore cash-trapping mechanism
of the structure.

Although the strike continues and little oil is being exported at
this time, the offshore transaction collection account is
expected to be fully funded from shipments made prior to the
strike so that the next quarterly debt service payment due in
February 2003 can be made without any drawdown from the
transaction liquidity reserve. With the liquidity reserve fully
funded and available to cover the May 2003 payment if necessary,
the structure is well protected even if the export disruption
continues for several weeks or months. Nevertheless, it is
uncertain how long it will take for the political and economic
crisis to stabilize, and for PDVSA to begin operating at normal
levels without further risk of disruptions to its production
facilities and exports. Consistent with Standard & Poor's policy
to maintain a strong link between the foreign currency rating of
the sovereign and a country's public sector entities, the rating
has been lowered to maintain the existing five-notch enhancement
above the sovereign's foreign currency rating (see Emerging
Market Export Future Flow Rating Less Volatile than Related
Corporate and Sovereign Ratings, published on RatingsDirect Nov.
6, 2002).

The five-notch enhancement reflects the strength of the structure
and its ability to mitigate sovereign interference, and is the
most enhancement given to a structured transaction rated by
Standard & Poor's and issued by a public sector entity. The five-
notch enhancement is also comparable to the strongest structures
rated by Standard & Poor's and issued by the private sector. The
structural features of the transaction include the deposit into
an offshore account of payments by designated customers of PDVSA
(including PDVSA's wholly owned subsidiary, Citgo Petroleum Co.).
In addition, once the strike is over and exports resume, there is
a strong incentive for the sovereign to continue to allow PDVSA
Finance to service its debt, even if the political and economic
crisis continues and the sovereign is in default on its own
obligations. Ensuring that PDVSA continues to operate efficiently
and productively is of strategic importance to the country due to
its heavy reliance on oil revenues.

The sovereign downgrade reflects the increasing probability of
default given the environment of growing political polarization,
critical social divisions, and economic paralysis due to the
ongoing strikes. The manner in which the political impasse could
be resolved remains uncertain as the opposition stiffens its
resolve and President Chavez hardens his position. Removal of
President Chavez would likely lead to a heightened mobilization
of his supporters and result in increased violence. Moreover, the
opposition remains fragmented, and a leader who might be able to
begin to bridge the country's growing social divide has not yet
appeared. If President Chavez remains in power, there is an
increased probability that his administration will become more
radical, especially if a state of emergency is called. Regardless
of the outcome, the country's political institutions remain
extremely weak, and their independence is almost completely
compromised. A resolution of the stalemate will not likely
satisfy either side sufficiently to reduce the tensions
undermining government rule and economic stability.

RATINGS LOWERED AND REMAIN ON CREDITWATCH WITH NEGATIVE
IMPLICATIONS

PDVSA Finance Ltd.
Class                       To                  From
A 6.45% notes due 2004      BB/Watch Neg        BB+/Watch Neg
B 6.65% notes due 2006      BB/Watch Neg        BB+/Watch Neg
C 6.80% notes due 2008      BB/Watch Neg        BB+/Watch Neg
D 7.40% notes due 2016      BB/Watch Neg        BB+/Watch Neg
E 7.50% notes due 2028      BB/Watch Neg        BB+/Watch Neg
F 8.75% notes due 2004      BB/Watch Neg        BB+/Watch Neg
G 6.25% notes due 2006      BB/Watch Neg        BB+/Watch Neg
H 9.40% notes due 2007      BB/Watch Neg        BB+/Watch Neg
I 9.75% notes due 2010      BB/Watch Neg        BB+/Watch Neg
J 9.95% notes due 2020      BB/Watch Neg        BB+/Watch Neg
K 8.50% notes due 2012      BB/Watch Neg        BB+/Watch Neg

Analyst:  Nancy Gigante Chu
          New York
          Tel (1) 212-438-2429

          Bruce Schwartz, CFA
          New York
          Tel (1) 212-438-7809


PETROZUATA FINANCE: S&P Lowers Ratings to 'B+'; Still on Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on
Petrozuata Finance Inc.'s $1 billion bonds to 'B+' from 'BB-'.
The rating remains on CreditWatch with negative implications
where it was placed on Dec. 10, 2002. The bonds are guaranteed by
Petrolera Zuata, Petrozuata C.A.

Petrozuata is a heavy oil upgrading project located in Venezuela
that is owned by Conoco Orinoco (50.1%), a subsidiary of
ConocoPhillips (A-/Stable/A-2), and PDVSA Petroleo Y Gas (49.9%),
a subsidiary of Petroleos de Venezuela S.A. (PDVSA:
CCC+/Negative/--).

The downgrade on Petrozuata's bonds follows Friday's downgrade by
Standard & Poor's of the credit rating on the Bolivarian Republic
of Venezuela to 'CCC+' from 'B-'. The rating outlook for
Venezuela is negative. The downgrade and negative outlook on the
sovereign reflects the increasing probability of default given
the environment of growing political polarization, critical
social divisions and economic paralysis due to the ongoing
strikes. The manner in which the political impasse could be
resolved remains uncertain as the opposition stiffens its resolve
and President Chavez hardens his position. Removal of President
Chavez would likely lead to a heightened mobilization of his
supporters and result in increased violence.

The continued placement of the Petrozuata bonds on CreditWatch
reflects the negative developments in Venezuela that have begun
to and that could continue to disrupt Petrozuata's production,
transport, and processing of heavy crude oils and its export of
synfuel products. The developments include a strike by management
and employees of PDVSA, which has led to a large reduction in
domestic production and refining, and a large drop in exports of
crude oil and refined products, and growing civil unrest between
the government and opposition groups.

ConocoPhillips has reported that Petrozuata operations began to
be affected by the strike on Dec. 9, due to insufficient supply
of hydrogen at the upgrader in Jose. PDVSA supplies the hydrogen.
This curtailment on operations has resulted in a reduction of oil
production to 80,000 barrels per day from 120,000 bpd. Petrozuata
does not rely on PDVSA for any other major inputs. There are no
operational problems with transportation of crude oil to the Jose
complex and export operations are normal.

The worsening political situation in the country could lead to
more widespread developments that could negatively affect the
company's wide range of operations. Petrozuata and other heavy
oil projects with operations at the Jose complex have in the past
been negatively affected by indirect strike actions, which were
resolved by government intervention. Also, there is increased
risk of sovereign intervention in the oil and gas sector,
especially if the strike action continues unabated, as the
country's lack of exports would seriously deteriorate the
government's financial position.

Standard & Poor's expects to resolve the CreditWatch as
developments warrant. The rating could fall if Petrozuata's
operations are affected such that disruptions lead to material
cash flow loss, an adverse government intervention into the
sector or the project occurs, or a further deterioration in the
creditworthiness of the sovereign.

ANALYST: Terry A Pratt, New York (1) 212-438-2080


* S&P Lowers LTFC Rating On Default Probability
-----------------------------------------------
Standard & Poor's Ratings Services said Friday that it lowered
its long-term foreign currency sovereign credit rating on the
Bolivarian Republic of Venezuela to 'CCC+' from 'B-'. Standard &
Poor's affirmed its 'C' short-term foreign currency sovereign
credit rating on the republic. The outlook on the long-term
foreign currency rating remains negative. (Standard & Poor's does
not rate Venezuela's local currency debt.)

"The downgrade and negative outlook reflect the increasing
probability of default given the environment of growing political
polarization, critical social divisions, and economic paralysis
due to the ongoing strikes," said Sovereign Analyst Richard
Francis. "The manner in which the political impasse could be
resolved remains uncertain as the opposition stiffens its resolve
and President Hugo Chavez hardens his position. Removal of
President Chavez would likely lead to a heightened mobilization
of his supporters and result in increased violence," he added.

At the same time, according to Sovereign Analyst Bruno Boccara,
the opposition remains fragmented and without a leader who could
begin to bridge the country's continually deepening social
divide. "If President Chavez remains in power, there is an
increased probability that his administration will become more
radical, especially if a state of emergency is called," Mr.
Boccara noted. "Resolution of the stalemate is unlikely to
satisfy either the pro- or anti-Chavez constituencies, nor reduce
the tensions undermining government rule and economic stability.
Regardless of outcome, Venezuela's political institutions have
weakened further and their independence is almost completely
compromised," he said.

Standard & Poor's said that if a default were to occur over the
near-term, it would be due to the governance crisis rather than
to immediate liquidity problems. International reserves
(including money in the oil stabilization fund) are placed at
over US$15 billion, according to central bank figures. The
central government's debt service from December 2002 through
March 2003 totals only about US$1.7 billion, which could be
easily serviced if the political situation normalizes-a scenario
that Standard & Poor's is not currently expecting. Petroleos de
Venezuela S.A. (PDVSA) appears to have adequate resources to meet
US$400 million in debt service over the same period, although
diminished export volumes are straining the company's financial
position.

"The negative impact on fiscal and economic performance from a
prolonged strike is severe, and the economy is losing about US$50
million a day in oil export revenue-about 60%-70% of which goes
to the government," said Mr. Boccara. "The longer the strike
lasts, the more the country's long-term ability to produce oil at
prestrike levels will be damaged. Little or no oil is currently
leaving the country, and gas and other fuel shortages are
disrupting key sectors and overall economic performance within
the republic. In such a political and economic environment,
foreign investors will likely remain on the sidelines for the
foreseeable future, further deepening the economic downturn," he
concluded.

Analyst:  Bruno Boccara
          New York
          Tel (1) 212-438-7495

          Richard Francis
          New York
          Tel (1)-212-438-7348

          Jane Eddy
          New York
          Tel (1) 212-438-7996





               ***********


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
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Information contained herein is obtained from sources believed to
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* * * End of Transmission * * *