TCRLA_Public/021227.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, December 27, 2002, Vol. 3, Issue 255

                           Headlines


A R G E N T I N A

CTG: Extends $54M Debt Swap Terms Seeking Greater Participation
DIAL ARGENTINA: Parent Company Washes Hands of LatAm Subsidiary
* Argentina Heeds IMF Admonition to Ease Currency Controls


B E R M U D A

TRENWICK GROUP: Finalizes Agreement With Lloyd's LoC Providers
TYCO INTERNATIONAL: Postpones Announcement of Probe Results


B R A Z I L

ACESITA: Shares Jump Anticipating Sale Of CST Stake
CEMAR: Judge's Ruling Blocks Aneel's Sale Attempt
EMBRATEL: Telesp Blocks Local Telephony Service To Clients


C H I L E

ENDESA CHILE: Defends CNE Bill Aimed At Resolving Sector Woes
MADECO: Signs An Amended, Restated Loan Agreement
MADECO: Announces The Price Of Shares
SUPERMERCADOS UNIMARC: NYSE Notifies of ADR Price Non-Compliance
SUPERMERCADOS UNIMARC: CEO Resigns


C O L O M B I A

MILLICOM INT'L: America Movil Eyeing Colombian Asset
SEVEN SEAS: Sr. Note Holders File Involuntary Bankruptcy


D O M I N I C A N   R E P U B L I C

CENTENNIAL COMMUNICATIONS: S&P Cuts Credit Rating To B


J A M A I C A

CABLE & WIRELESS: Jamaican Supreme Court Says Monopoly Illegal


M E X I C O

CORPORACION DURANGO: Ratings Lowered to 'CC'; Outlook Negative
SATMEX: Ratings Remain on CreditWatch Negative
TV AZTECA: ICC Authorizes Option for 51% of CNI Channel 40


T R I N I D A D   &   T O B A G O

BWIA: Pensioners To Get Shares


U R U G U A Y

GALICIA URUGUAY: Judge Approves Deposits Rescheduling Proposal


V E N E Z U E L A

CITGO/PDV AMERICA: Fitch Places On Rating Watch Negative
PDVSA: Considers Asset Sale; Threatens To Dismiss Workers


     - - - - - - - - - -

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

CTG: Extends $54M Debt Swap Terms Seeking Greater Participation
---------------------------------------------------------------
Argentine thermo generator Guemes (CTG) informed the Buenos Aires
stock exchange that it has extended the terms of an offer to
exchange an issue of debentures totaling US$54 million to 2013
from 2012. According to Business News Americas, the decision
follows a meeting between the Company, which owns and operates a
245MW thermoelectric plant in Argentina's Salta province, and the
debentureholders.

Under the debt swap offer, which requires approval from the
exchange and the national securities regulator, CTG would pay
outstanding interest owing on the bonds at 2% annually, and a
bonus of US$7.50 for every US$1,000 worth of bonds.

The first offer would exchange the US$54 million debentures for
US$32.4 million of variable debentures falling due in 2013, plus
a maximum of 24.8 million, US$1-nominal value Class D ordinary
shares.

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

The second offer proposes exchanging the US$54 million debentures
for US$54 million of new variable debentures falling due in 2013.
Thus, the Company would issue US$1,000 of new debentures for each
US$1,000 of existing debenture capital.

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


DIAL ARGENTINA: Parent Company Washes Hands of LatAm Subsidiary
---------------------------------------------------------------
The Dial Corporation (NYSE: DL) announced on Monday that it has
reached an agreement to sell its Argentina business to an entity
designated by Southern Cross Group, a private equity investor in
Argentina. The transaction is structured as a sale of the assets
of Dial Argentina, S.A., which includes the stock it holds of its
two subsidiaries, Sulfargen, S.A. and The Dial Corporation San
Juan, S.A. The sale is subject to satisfaction of negotiated
closing conditions and receipt of approvals under Argentina's
antitrust and bulk transfer laws. The sale is expected to close
late in the first quarter or early in the second quarter of 2003.

The after-tax loss from this transaction in the fourth quarter
currently is expected to be in the range of $50.0 to $60.0
million or $0.53 to $0.64 per share (diluted). This non-cash loss
includes the reversal of the $95.1 million currency translation
adjustment that previously had been recorded as a reduction in
equity. In the first quarter of 2002, the Company recorded an
after-tax impairment charge of $43.3 million for the Argentina
business as a result of adopting the Financial Accounting
Standards Board (FASB) Statement No. 142, "Goodwill and Other
Intangible Assets." The transaction is expected to yield positive
cash flow from the sales proceeds of $6.0 million and tax
benefits of approximately $55.0 million. Additionally, because
Argentina's earnings are being reclassified to a discontinued
operation, estimated 2002 earnings per share from continuing
operations before special items is expected to decline by $0.04
to $1.18 (diluted). The Company's Argentina business lost $0.03
per share (diluted) in 2001 excluding special items. A
reconciliation of the foregoing pro forma earnings per share
numbers to earnings per share under generally accepted accounting
principles for 2001 and 2002 is attached.

"Although our in-country business remained relatively strong,
Argentina is not a good fit for us. Our business is primarily a
North American business and Argentina has been a management
distraction and challenge," said Herbert M. Baum, Dial's
chairman, president and CEO.

Sales in Argentina, on a dollar basis, declined from $63.0
million in the first nine months of 2001 to $39.4 million in the
same period in 2002, largely because of the devaluation of the
peso.

The Dial Corporation entered the Argentina market in 1997 when it
purchased personal care products maker Nuevo Federal, S.A. and
several Procter & Gamble soap brands. The Company also purchased
the Plusbelle hair care brand from Revlon in 2000. The sale is
consistent with the strategy Baum announced shortly after his
selection as CEO in 2000 to fix or jettison businesses that were
not performing up to expectations.

The Dial Corporation, headquartered in Scottsdale, Ariz., is one
of America's leading manufacturers of consumer products,
including Dial soaps, Purex laundry detergents, Renuzit air
fresheners and Armour Star canned meats. Dial products have been
in the American marketplace for more than 100 years. For more
information about The Dial Corporation, visit the Company's Web
site at www.dialcorp.com .

Statements in this press release as to the Company's
expectations, beliefs, plans or predictions for the future are
forward-looking statements within the Private Securities
Litigation Reform Act of 1995 (the "PSLRA"). Such forward-looking
statements include the Company's expectations that (i) the sale
will close late in the first quarter or early in the second
quarter of 2003; (ii) the after-tax loss from the sale will be in
the range of $50.0 to $60.0 million or $0.53 to $0.64 per share
(diluted); (iii) the sale will yield positive cash flow from the
sales proceeds of $6.0 million and tax benefits of approximately
$55.0 million; and (iv) earnings per share from continuing
operations and before special items in fiscal year 2002 will be
approximately $1.18 due to Argentina being reclassified as a
discontinued operation.

Forward-looking statements are inherently uncertain as they are
based on various expectations and assumptions concerning future
events and are subject to numerous known and unknown risks and
uncertainties that could cause actual events or results to differ
materially from those projected. For example, actual events or
results could differ materially if (1) either party fails to
satisfy the conditions to closing in the purchase agreement
resulting in the deal not being completed in a timely manner or
at all; (2) the Argentina government objects to the transaction
based upon antitrust concerns; (3) the Company does not
successfully complete the bulk sales transfer proceedings in
Argentina; (4) the Company is denied the $55.0 million of tax
benefits currently anticipated from the sale, (5) there is a
further devaluation of the Argentine Peso or economic conditions
in Argentina continue to deteriorate, (6) economic conditions in
the U.S. deteriorate resulting in lower sales, (7) competition in
the categories in which the Company competes continues or
intensifies, resulting in lower sales or requiring increased
expenditures and lower profit margins to preserve or maintain
market shares, (8) efforts to reduce costs are unsuccessful or do
not yield anticipated savings, (9) new products are unsuccessful
or do not produce the sales anticipated, (10) there are increases
in raw material, petroleum, natural gas and/or energy prices,
(11) the Company does not achieve the benefits anticipated from
steps being taken to try to improve operations and financial
results, or (12) the Company experiences a loss of or a
substantial decrease in purchases by any of its major customers.
These and other factors that could cause actual events or results
to differ materially from those in the forward-looking statements
are described in "Management's Discussion and Analysis of Results
of Operations and Financial Condition -- Factors That May Affect
Future Results and Financial Condition" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2001.

Due to these inherent uncertainties, the investment community is
urged not to place undue reliance on forward-looking statements.
In addition, the Company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes to projections
over time.

Reconciliation of Pro Forma Earnings to GAAP Earnings
Estimated Pro Forma Earnings Per Share
Income (Loss)
2001 2002

Income (Loss) Under Generally

Accepted Accounting Principles ($1.45) $0.19 - $0.30

Adjusted for:
Range of Loss on Disposal of Argentina (0.53 - 0.64)
Argentina Impairment Charge (0.46)
Argentina Operations (0.03) 0.04
SPC Discontinued Operations (2.21) 0.04
Restructuring Charges & Special Items (0.10) 0.03

Estimated Pro Forma Earnings $0.89 $1.18


* Argentina Heeds IMF Admonition to Ease Currency Controls
----------------------------------------------------------
In a bid to obtain a new aid from the International Monetary
Fund, the Argentine government may have to weaken its foreign
exchange controls, reports local daily Clarin, without specifying
its source of information.

According to the report, the IMF wants the country to allow
companies to freely remit foreign currency abroad to service
their new debts. Argentina, in a bid to strengthen central bank
reserves, had imposed restrictions on the amount individuals and
corporations may send abroad.

Argentina had lost its credit line to the IMF after defaulting on
US$95 billion of bonds last December. The country had been in
negotiations with the lender for almost a year, without positive
results.

The United States Treasury expects the two parties to reach an
agreement by January. The Clarin noted that this agreement would
allow Argentina to roll over its debt to multilateral lenders for
most of next year.



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

TRENWICK GROUP: Finalizes Agreement With Lloyd's LoC Providers
--------------------------------------------------------------
Trenwick Group Ltd. ("Trenwick") announced Monday that it had
entered into definitive final agreements with its Lloyd's letter
of credit providers with respect to the renewal of $182 million
of letters of credit supporting Trenwick's Lloyd's underwriting
operations. With additional capital provided by Trenwick and
National Indemnity Company, Trenwick's anticipated Lloyd's
underwriting capacity for 2003 is up to $500 million.

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.

Trenwick has identified certain risk factors which could cause
actual plans or results to differ substantially from those
included in any forward-looking statements. These risk factors
are discussed in Trenwick's Securities and Exchange Commission
filings, including but not limited to its most recent Form 10-K,
Form 10-Q and Form 8-K filed with the Securities and Exchange
Commission, and such discussions regarding risk factors are
hereby incorporated by reference into this press release. Copies
of such Securities and Exchange Commission filings are available
from Trenwick or directly from the Securities and Exchange
Commission.

CONTACT:  TRENWICK GROUP LTD.
          Alan L. Hunte, 441/298-8082


TYCO INTERNATIONAL: Postpones Announcement of Probe Results
-----------------------------------------------------------
Bermuda-based company Tyco International Ltd. said that the
announcement of the results of an internal investigation would be
on or before December 30, according to the Associated Press,
without explaining its reasons for the delay. The Company's
annual report is also due that same day.

The investigation, headed by lawyer David Boies, is focused on
the Company's accounting practices and is aimed at gaining
investor confidence after news of malfeasance allegedly done by
former executives shocked investors.

The Associated Press said that the release of the results could
complicate the Company's restructuring of US$5.8 billion in debt.

The release of the investigation results was initially promised
for release by late fall. The investigation was complete by the
late-fall deadline, however, a source told the Wall Street
Journal that Tyco may need some time to prepare a regulatory
filing summarizing the results.

Earlier reports reveal that Boies was not expecting to find any
major fraud. However, said the Associated Press, the probe could
leave open questions on the Company's acquisition accounting.
Another investigation by the United States Securities and
Exchange Commission looks into the same issues.

Tyco reported revenues of US$36 billion last year. Company shares
rose 21 cents to close at US$16.23 Monday on the New York Stock
Exchange.

CONTACT: TYCO INTERNATIONAL LTD.
         Corporate Office
         The Zurich Centre, Second Floor
         90 Pitts Bay Road
         Pembroke HM 08, Bermuda
         Phone: 441-292-8674
         Home Page: http://www.tyco.com
         Contacts:
         Gary Holmes (Media)
         Tel +1-212-424-1314
                 or
         Kathy Manning (Investors)
         Tel +1-603-778-9700



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

ACESITA: Shares Jump Anticipating Sale Of CST Stake
---------------------------------------------------
The market responded positively to news that two companies have
made a joint proposal to buy Acesita SA's stake in Cia.
Siderurgica de Tubarao (CST) for about BRL715 million (US$204
million). According to Bloomberg, Acesita's shares on Monday
closed at their highest level since March last year, gaining 4
centavos, or 4.3%, to 98 centavos at the Sao Paulo Stock Exchange
after Cia. Vale do Rio Doce (CVRD) and Arcelor offered to buy
Acesita's 50.1% stake in a holding company called Acos Planos do
Sul (APS), which in turn holds 37.29% of the total capital of
CST.

CVRD, the world's largest producer of iron ore, and Arcelor, the
world's largest steelmaker, said in a statement released on
Friday they plan to pay about US$21.58 per 1,000 shares.

"Acesita has a good cash flow but the problem is its debt," said
Lucio Graccho, who manages about BRL1 billion in stocks for HSBC
Asset Management in Sao Paulo. "The deal would give Acesita a
breath to equalize its debt."

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.

Acesita, whose owners include Luxembourg-based steel group
Arcelor, is is Latin America's sole integrated producer of flat-
rolled stainless and silicon steels with an annual production
capacity of 850,000 tons of liquid steel. 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.

CONTACT:  Acesita SA
          Registered Office
          Av Joao Pinheiro, 580
          Centro
          30130-180 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3235-4211
          Fax  +55 31 3235-4300
          Web  http://www.acesita.com.br
          Contacts:
          Valmir Marques Camilo, Chairman
          Bruno Le Forestier, Vice Chairman


CEMAR: Judge's Ruling Blocks Aneel's Sale Attempt
-------------------------------------------------
Brazil's power regulator Aneel will not be able to carry out the
sale of Maranhao state distributor Cemar after a state judge
upheld two injunctions filed by the state's urban utilities
workers union Sintuba against the process.

Sintuba president Fernando Pereira revealed to Business News
Americas that the union secured the backing of Workers' Party
(PT) president in Maranhao, Washington Oliveira, for the first
injunction and of the federal public ministry for the second.

He explained that the union doesn't want to see the Company
revert to the private sector, citing a disastrous two-year
experience. The union has asked the federal government to take
control of the Company.

Cemar was privatized in June 2000 and sold to US-based PPL under
a 30-year concession. Since then, according to Pereira, the
Company's debt has jumped from BRL200 million to BRL800 million,
while service has deteriorated.

PPL has now written off its investments in Cemar and given up on
its own attempts to sell the Company after failing to please
creditors.

Aneel intervened in August after Cemar filed for protection from
creditors and plans to sell PPL's 84% stake for US$1, but would
select the bidder that presented the best financial solution for
meeting Cemar's debts.

Cemar is viable as a company, generating monthly revenues of
BRL40 million, Mr. Pereira said. Sintuba wants a full audit to
discover what mistakes were made and where the money was spent.

Aneel said it would challenge the two injunctions and, if
successful, would restart the sale process.

CONTACT:  COMPANHIA ENERGETICA DO MARANHAO
          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024
          WEBSITE: http://www.cemar.com.br/

CREDITORS:  CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page: http://www.eletrobras.gov.br
            Contacts:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

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

            CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            E-mail: elnweb@eln.gov.br
            Home Page: http://www.eln.gov.br/
            Contact:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694
            E-mail: arlindo@eletrobras.gov.br

            FLEETBOSTON FINANCIAL CORP.
            100 Federal Street
            Boston, MA 02110
            Phone: (617) 434-2200
            Fax: (617) 434-6943
            URL: http://www.fleet.com/home.asp

MAJOR SHAREHOLDERS:

            PPL GLOBAL (90%)
            11350 Random Hills Road
            Suite 400
            Fairfax, VA 22030

            Phone: 703-293-2600
            Fax: 703-293-2659
            William F. HechtChairman, President/CEO
            John R. Biggar, Executive Vice President/CFO


EMBRATEL: Telesp Blocks Local Telephony Service To Clients
----------------------------------------------------------
Sao Paulo-based fixed line operator Telesp blocked local
telephony service to Embratel clients saying it doesn't have an
interconnection agreement with the long distance operator,
reports Business News Americas.

The companies' networks are already interconnected to facilitate
testing, however, no final interconnection agreement is in place.
According to Telesp, it had sent Embratel an interconnection
proposal, but Embratel has launched local telephony services
before signing the contract.

Embratel launched local telephony operations in Recife and
Fortaleza in November after securing interconnection with
Telemar.

But even in the absence of a full agreement, Embratel believes
Telesp is legally required to provide interconnection and said
that failure to honor that obligation will result to sanctions by
the regulator Anatel.

CONTACT:    EMBRATEL PARTICIPACOES S.A.
            Investor Relations
            Silvia Pereira
            Tel. (55 21) 2519-9662
            Fax: (55 21) 2519-6388
            Email: Silvia.Pereira@embratel.com.br
                   invest@embratel.com.br
                      or
            Press Relations:
            Helena Duncan/Mariana Palmeira
            Tel: (55 21) 2519-3653/3654
            Fax: (55 21) 2519-8010
            Email: hduncan@embratel.com.br
                   mpalm@embratel.com.br



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C H I L E
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ENDESA CHILE: Defends CNE Bill Aimed At Resolving Sector Woes
-------------------------------------------------------------
A spokesperson from Endesa Chile, the country's biggest power
producer, defended the national electricity regulator's (CNE)
fast-track bill to regulate transmission costs from criticisms
from its fellow generators.

Generators AES Gener and Colbun have criticized the regulator's
bill saying that it would help Endesa Chile save US$40 million a
year in transmission costs, while passing the costs on to smaller
generators with plants located closer to their clients.

In defense, the Endesa spokesperson said, "The CNE has presented
clear and solid arguments to defend its proposal, which is a
long-term solution to develop Chile's electricity market."

"Everyone has the right to give their opinion, but they don't
have a technical basis or solid argument, and what's worse is
that they don't offer any alternative to the current problems in
the sector."

CONTACT:  EMPRESA NACIONAL DE ELECTRICIDAD SA
          Santa Rosa 76
          Santiago, Chile
          Phone: +56-2-630-9000
          Fax: +56-2-635-4720
          http://www.endesa.cl
          Contacts:
          Pablo Yrarrazaval Valdes, Chairman
          Luis Rivera Novo, Chairman
          Hector Lopez Vilaseco, CEO


MADECO: Signs An Amended, Restated Loan Agreement
-------------------------------------------------
Madeco S.A. announced agreement on a new loan agreement with its
financial debtholders. Since the beginning of the year 2002,
Madeco has being negotiating with its local and international
bank debtholders a complete debt restructuring of its total bank
loans, the financial advisory was in charge of Deutsche Bank and
Morales, Noguera, Valdivieso and Besa acted as the legal counsel
for this transaction.

The Company's Board of Directors on an Extraordinary Session held
on December, 20th, 2002 was informed about the complete
subscription of the Amended and Restated Contracts signed between
Madeco S.A. and twelve of its local debtholders and two
international banks. Those three contracts (one local an two
international contracts) were finally ratified on December 18th,
2002 and include the same terms and conditions.

Rescheduling the Company's bank loans for a total amount of
approximately US$120 million entails: an up-front payment of 30%
of the total debt before the capital increase is completed and
the remaining 70% of the debt will be rescheduled for 7 years,
which includes a grace period of 3 years. The interest rates are
TAB ("Tasa Activa Bancaria" or Chilean Inter-bank rate) plus 175
basic points for loans denominated in U.F. and LIBOR plus 220
basic points for loans denominated in United Stated dollars.

The contract includes some conditions precedent to effectiveness
of the agreements to be accomplished before March 31, 2003. The
most important condition required that the founds obtained from
the capital increase approved at the Extraordinary Shareholders'
Meeting held on November 14th, 2002 will be no less than
Ch$49,400,491,450 and with part of those funds, the Company pays
30% of the debt to each one of its bank debtholders.

Related to the Company's capital increase, the major shareholder
and controller of Madeco has committed the subscription of at
least Ch$49,400,491,450.

Madeco, formerly Manufacturas de Cobre MADECO S.A., was
incorporated in 1944 as an open stock corporation under the laws
of the Republic of Chile and currently has operations in Chile,
Brazil, Peru and Argentina. Madeco is a leading Latin American
manufacturer of finished and semi-finished non-ferrous products
based on copper, copper alloys and aluminum. The Company is also
a leading manufacturer of flexible packaging products for use in
the packaging of mass consumer products such as food, snacks and
cosmetics.

Readers are cautioned not to place undue reliance on the forward-
looking statements included in the above text, which speak only
as of the date hereof. The Company undertakes no obligation to
release publicly the result of any revisions to these forward-
looking statements, which may be made to reflect events or
circumstances after the date hereof, including, without
limitation, changes in the Company's business strategy or planned
capital expenditures, or to reflect the occurrence of
unanticipated events.

CONTACT:  MARISOL FERNANDEZ
          Investor Relations
          Telefono: (56 2) 520-1380
          Fax: (56 2) 520-1545
          E-mail: mfl@madeco.cl
          Sitio Web : www.madeco.cl


MADECO: Announces The Price Of Shares
-------------------------------------
Madeco S.A. ("Madeco") (NYSE ticker: MAD) announced that, in
connection with the Company's capital increase approved at the
Extraordinary Shareholders' Meeting held on November, 14, 2002,
the Board of Directors at an Extraordinary Session held on
December, 20, 2002 agreed to initiate the share registration
process with the Chilean Superintendencia de Valores y Seguros
(Superintendency of Security and Insurance, or SVS). The
Company's Board of Directors fixed the price of each share at
Ch$24.

The Company has decided not to make the Rights Offering available
to holders of American Depositary Shares, or "ADSs", based on a
New York Stock Exchange exemption which allows an issuer to
exclude ADS holders in such an offering where it is impracticable
or unduly expensive for that Company to offer those rights to
U.S. holders of ADSs.

Neither the Rights Offering transaction nor the shares to be
offered and sold in that offering are registered under the U.S.
Securities Act of 1933 nor under any U.S. state securities laws.
The shares will be offered and sold in a transaction outside the
United States and will be offered and sold only to Non-U.S.
Persons in accordance with Regulation S under the Securities Act.


SUPERMERCADOS UNIMARC: NYSE Notifies of ADR Price Non-Compliance
----------------------------------------------------------------
Supermercados Unimarc S.A. ("Unimarc") (NYSE: UNR) announced that
it has received notification from the New York Stock Exchange
(NYSE) of its non-compliance with the exchange's requirements for
continued listing as a consequence of its ADR price falling below
the US$1.00 threshold for a consecutive 30-day trading period.
The Company informed the NYSE of its intention to cure this
issue.

Pursuant to NYSE regulations, the Company is required to cure the
non-compliance bringing the 30-day trading day average to above
US$1.00 within a period of six months from notification. The NYSE
may grant the Company until its next General Shareholders'
Meeting in the case that shareholder approval is required for the
Company to implement its curing measures.

Since the beginning of 2002, the Company has been undergoing a
financial restructuring. In January 2002, as a consequence of
Argentina's deep economic recession and the general economic
slowdown throughout the region, Unimarc believed it was necessary
to restructure the Company's liabilities and optimize and
rationalize the use of funds and working capital.

The Company believes it has made significant progress in its
restructuring efforts and will continue to review ways to improve
its equity and liabilities' structure.

Readers are cautioned not to place undue reliance on the forward-
looking statements included in the above text, which speak only
as of the date hereof. The Company undertakes no obligation to
release publicly the result of any revisions to these forward-
looking statements which may be made to reflect events or
circumstances after the date hereof, including, without
limitation, changes in the Company's business strategy or planned
capital expenditures, or to reflect the occurrence of
unanticipated events.

CONTACT:  Roberto Fuentes Flores, Investor Relations
          Tel: +011-56-2-678-7050
          Fax: +011-56-2-687-7004
          Email: rafuentes@unimarc.cl
          URL: http://www.unimarc.cl


SUPERMERCADOS UNIMARC: CEO Resigns
----------------------------------
Complying with articles 9 and 10 of law 18.045 of the Republic of
Chile and following "Superintendencia de Valores y Seguros"
regulations, Supermercados Unimarc S.A. (NYSE: UNR) states that
on December 19, 2002, the company Board of Directors voted in
favor of Mr. Alejandro Seymour Zamora's resignation, who up to
that date had served as C.E.O. of the company. For the time
being, the Board of Directors of Supermercados Unimarc S.A. will
assume C.E.O. duties.



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

MILLICOM INT'L: America Movil Eyeing Colombian Asset
----------------------------------------------------
Luxembourg-based Millicom International Cellular may find a buyer
for its Colombian wireless operator Celcaribe SA in America Movil
SA, Latin America's largest mobile phone company.

According to a Bloomberg report, Mexico City-based America Movil
is planning to purchase a 95% stake in Celcaribe, which operates
in seven provinces along the Colombia Caribbean Coast, for an
undisclosed amount. The sale of Celcaribe is anticipated to
result in Millicom incurring a book write-off of approximately
US$125 million.

Millicom, whose credit rating was recently cut by Moody's
Investors Service two levels to Caa2 from B3, had been selling
assets to pay its debt, which it said was "unsustainable in the
long term."

Millicom has retained Lazard to assist it in reviewing strategic
alternatives to address Millicom's ongoing liquidity needs,
including other potential asset sales and divestitures, the
availability of new debt and equity financing and potential debt
restructuring alternatives.

CONTACTS:  MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg
           Marc Beuls
           Telephone: +352 27 759 101
           President and Chief Executive Officer

           Jim Millstein
           Telephone: +1 212 632 6000

           Peter Warner
           Telephone: +44 20 7588 2721

           LAZARD
           Andrew Best
           Telephone: +44 20 7321 5022
           Investor Relations
           Shared Value Ltd., London


SEVEN SEAS: Sr. Note Holders File Involuntary Bankruptcy
--------------------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced that the Company
has received notice that the holders of a majority of the
Company's Senior Subordinated $110 Million Notes ("Senior Notes")
have filed an involuntary bankruptcy petition, Chapter 7, with
the United States Bankruptcy Court, Southern District of Texas,
Houston Division.

As previously announced, the Company is in default under its
Senior Notes due to a failure to make a scheduled $6,875,000
interest payment on November 15, 2002.

Seven Seas will consider various responses and alternatives prior
to taking any action with respect to the petition. The Company's
subsidiaries intend to continue operations in the ordinary course
and proceed with the closing of the previously announced sale of
their 57.7% participating interest in the shallow Guaduas Oil
Field and related assets.

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
          Tel: +1-713-622-8218
          URL: http://www.sevenseaspetro.com



===================================
D O M I N I C A N   R E P U B L I C
===================================

CENTENNIAL COMMUNICATIONS: S&P Cuts Credit Rating To B
------------------------------------------------------
US-Caribbean wireless/broadband operator Centennial
Communications had its corporate credit rating downgraded by
international credit ratings agency Standard & Poor's from B+ to
B, reports Business News Americas. S&P attributed the downgrade
to the poor operations of the Company's US operations.

"The company's domestic markets have been subject to heightened
competition from the larger, more national players, such as AT&T
Wireless and Cingular," S&P credit analyst Catherine Cosentino
said.

"The company also lost about 10,000 subscribers in its US
wireless market since May 31, 2002, against a backdrop of overall
growth for the industry," she said.

The agency is also concerned about Centennial's ability to meet
financial maintenance covenants under its secured bank loan
agreement, especially if operating cash flow from the Caribbean
wireless and broadband businesses do not grow materially in the
remainder of fiscal 2003.

Centennial reported about US$1.7 billion total debt for its
fiscal second-quarter ended November 30, 2002.

"If the company is not able to obtain additional liquidity
cushion and demonstrate its ability to meet bank financial
covenants in the near term, the ratings are likely to be lowered
by more than one notch," Cosetino said, adding that Centennial's
ratings may also be affected by a negative assessment of its
business plans and their execution prospects for the second half
of fiscal 2003 and fiscal 2004.

Centennial's Caribbean operations offer service to a population
of approximately 13 million people in Puerto Rico, the Dominican
Republic, and the U.S. Virgin Islands using digital wireless and
terrestrial broadband telecommunications technologies.

The U.S. Wireless operations, on the other hand, serve markets
with six million people in six states in two clusters: Indiana,
Michigan and Ohio, and Louisiana, Mississippi and Texas.

Welsh, Carson, Anderson & Stowe and an affiliate of The
Blackstone Group are controlling shareholders of Centennial.
Approximately nine percent of Centennial's common stock is
publicly traded on Nasdaq under the symbol CYCL.

CONTACT:  CENTENNIAL COMMUNICATIONS CORP.
          3349 Route 138, Bldg A.
          Wall, NJ 07719
          (732) 556 2200



=============
J A M A I C A
=============

CABLE & WIRELESS: Jamaican Supreme Court Says Monopoly Illegal
--------------------------------------------------------------
The Supreme Court of Jamaica issued a ruling last Thursday that
the monopoly of Cable and Wireless Plc over the country's long-
distance telephone market is unconstitutional, reports the Sunday
Times.

The report indicated the decision came by way of three Supreme
Court judges saying that the 2000 telecommunications Act had
given C&WJ unfair exclusive rights to the Jamaican long-distance
market.

The Jamaican government plans to appeal the country's decision,
while rival companies such as InfoChammel, Ltd. had applauded the
ruling.

Earlier reports say that C&WJ had lost its dominant share of the
Jamaican mobile phone market to Digicel. However, C&WJ officials
refuted the reports, saying Digicel had deliberately exaggerated
their figures.

The differences between the two companies had gone beyond Jamaica
after Digicel filed a complaint to the telecommunications
regulator in St. Vincent, alleging that C&WJ had intentionally
delayed an interconnection agreement between the two providers.
The regulator had threatened to enforce an interim agreement if
no agreement is reached soon.

The report also indicated that London-based Cable & Wireless may
exhaust its 3.8 billion pounds (US$6 billion) of cash within a
year after the phone and Internet provider repays debt, revamps
its biggest unit and is forced to set aside money, investors said
this month.

CONTACT:  Cable & Wireless PLC
          Head Office
          124 Theobalds Road
          London
          England
          WC1X 8RX
          Tel  +44 (0)20 7315 4000
          Fax  +44 (0)20 7315 5000
          Web  http://www.cw.com
          Contacts:
          Sir Ralph Robins, Non Executive Chairman
          Sir Winfried W. Bischoff, Non Executive Deputy Chairman
          Graham M. Wallace, Chief Executive
          Robert E. Lerwill, Executive Director Finance



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

CORPORACION DURANGO: Ratings Lowered to 'CC'; Outlook Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that it lowered
its foreign and local currency corporate credit ratings on
Corporaci˘n Durango S.A. de C.V. to 'CC' from 'B'.

The downgrade is based on the Mexican privately held paper,
packaging and newsprint company's announcement that certain
payments owed on financial obligations (non-rated) have not been
paid in accordance with their terms. The outlook on the ratings
remains negative.

"Because of Corporacion Durango's high debt burden, very tight
liquidity, uncertainties about asset sales, low prices for its
products and the effect that the economic slowdown has had in the
maquiladora export activities, the risk that the company will not
pay on a timely basis its debt coupons coming due from Jan. 15
through Feb. 1, 2003, has significantly increased," stated
Standard & Poor's credit analyst Manuel Guerena.

Corporacion Durango is working jointly with Rothschild Inc. and
PricewaterhouseCoopers to evaluate debt restructuring
alternatives at the holding company.

ANALYSTS:  Beatriz Coll, Mexico City (52) 55-5279-2016
           Manuel Guerena, Mexico City (52) 55-5279-2011


SATMEX: Ratings Remain on CreditWatch Negative
----------------------------------------------
Standard & Poor's Ratings Services said Monday that its 'CCC+'
corporate credit rating on Mexican satellite services company,
Sat‚lites Mexicanos S.A. de C.V. (Satmex) remains on CreditWatch
with negative implications where it was placed on Nov. 8, 2002.

Satmex's debt totals about US$530 million.

"Although Satmex successfully completed its consent and waiver
solicitations requested on Nov. 4, 2002, to amend its insurance
covenant and the terms of the indenture that restricted Satmex's
ability to amend the insurance covenant in the senior notes
indenture, Standard & Poor's is still concerned with Satmex's
financial profile because of its high debt levels coupled with
lower revenues and cash flows, and tight liquidity," said
Standard & Poor's credit analyst Patricia Calvo.

Interest on Satmex's high-yield bonds (US$32.4 million annually)
and US$1 million on the floating-rate notes' (FRNs) repayment,
will have to be paid through a combination of a very limited
US$4.8 million disposable cash reserve as of Sept. 30, 2002,
US$13 million recently drawn from its revolving credit facility
to be paid through its debt escrow account, and approximately
US$12 million quarterly EBITDA (US$35 million reported for the
first nine months of 2002). Standard & Poor's is concerned that
the company could exhaust its remaining liquidity in 2003 given
the potential for continued industry weakness. However, the
company is still waiting for funding approval by various export-
related credit agencies, which would alleviate liquidity issues
related to its FRNs.

As a result of a reduction in capacity utilization (70% in the
third quarter 2002) partly because of the loss of Satmex's
largest client, Innova S. de R.L. (B-/Stable/--), Satmex's
revenues decreased by 36% during the first nine months of 2002
when compared to the same period of 2001, while its EBITDA
coverage of interest decreased to 1.2x from 1.6x. EBITDA margin
decreased to 55.6% as of September 2002, from 65.1% a year
earlier.

Satmex collected the insurance proceeds from the loss of the
Solidaridad 1 satellite in January 2001, proceeds that are
reserved to fund the construction of the powerful Satmex 6 GEO
satellite, scheduled to be launched in the second quarter of
2003, and to fund the company's FRNs interest payments. As part
of the insurance proceeds, Satmex had US$24.5 million as of
September 2002, reserved in an escrow account for the payment of
US$16.9 million annual interests from its FRNs, providing for
roughly four months of interest service or to pay the revolving
credit facility.

Standard & Poor's expects that upon the launch of Satmex 6 GEO
satellite, the company will improve the revenue growth potential
of its footprint.

Satmex's fixed-satellite services were expected to benefit from
Internet-related signals transmissions, however the future of
this evolving market is now uncertain and less promissory. Satmex
is now focusing on the video demand and corporate network
markets, which are more stable. Satmex's geographic coverage (or
footprint) includes the continental U.S., the Caribbean, and all
Latin America except for certain regions of Brazil.

To resolve the CreditWatch listing, Standard & Poor's will
monitor Satmex's progress in obtaining funds from export credit
agencies to alleviate pressure on the refinancing of its senior
secured FRNs, as well as the restructuring features of its senior
unsecured bonds.

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


TV AZTECA: ICC Authorizes Option for 51% of CNI Channel 40
----------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish language television programming in
the world, announced Monday that on December 20, 2002, the
International Court of Arbitration (ICC) notified both TV Azteca
and Mr. Javier Moreno Valle, Chairman and CEO of CNI Canal 40, of
the final resolution authorizing TV Azteca the option to acquire
51% of Televisora del Valle de Mexico, S.A. (TVM), the
concessionaire of CNI Channel 40 in Mexico City.

The unanimously reached decision was issued by a three-arbitrator
panel, presided over by Colombian Rafael Bernal, and also
comprised of Carlos Pastrana and Jorge Gaxiola, both of Mexican
nationality. The arbitration authorizes TV Azteca the option to
acquire 51% of TVM's equity and declares the disputed agreements
are valid and enforceable for TVM and Mr. Javier Moreno Valle.

According to the decision issued, TV Azteca could exercise its
option to acquire 51% equity stake of TVM starting December 2,
2002, at a price at which the amounts owed to TV Azteca by TVM
and CNI Channel 40 since the joint venture started can be
deducted. Also, the resolution issued declares unfounded TVM's
arguments that the alliance was terminated because the Ministry
of Communications and Transport (SCT) had denied its
authorization. The statement concludes that TVM and Mr. Javier
Moreno Valle have to cover 70% of the total expenses and legal
fees of the arbitration procedure.

The arbitration issued and granted in favor of TV Azteca is
unappealable before the ICC. Also, the arbitration resolution has
to go through an execution procedure before the Mexican courts.
TV Azteca will maintain open this option recognized and
authorized by the ICC.

Company Profile

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks, Azteca 13 and Azteca 7, through more than
300 owned and operated stations across Mexico. TV Azteca
affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic
market; Unefon, a Mexican mobile telephony operator focused on
the mass market; and Todito.com, an Internet portal for North
American Spanish speakers.

INVESTOR RELATIONS:

        Bruno Rangel
        5255 3099 9167
        jrangelk@tvazteca.com.mx

        Rolando Villarreal
        5255 3099 0041
        rvillarreal@tvazteca.com.mx

MEDIA RELATIONS:

        Tristan Canales
        5255 3099 5786
        tcanales@tvazteca.com.mx



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

BWIA: Pensioners To Get Shares
------------------------------
BWIA pensioners under its 1971 pension plan will be receiving
15.5 percent share of the airline, after the Ministry of Finance
stated its wish to complete the transfer, through the T&T Airways
Corporation (Old BWIA). Those under 50, those over 50 who
accepted the VSEP offered by BWIA and who are still employed
there, will be given 500 shares each and a part of the residual
shares on the basis of contributions.

According to a report from the Trinidad Guardian, the arrangement
for the transfer of these shares was supposed to be carried out
in 1995 under the Acker agreement signed by government and a
number of foreign investors led by Edward Acker, the then
chairman of BWIA, to privatize the airline.

However, according to Trade and Industry Minister Ken Valley, who
was Minister of Finance at the time the agreement was signed, the
transfer was postponed due to the change in government.

"We started the process in 1995, but with the change in
government, it was put on hold. When I came back into office, I
wondered why it was never completed. But we are doing everything
to get it done," Valley said.

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
=============

GALICIA URUGUAY: Judge Approves Deposits Rescheduling Proposal
--------------------------------------------------------------
Grupo Financiero Galicia S.A. announced that the rescheduling
proposal for 100% of Banco Galicia Uruguay's deposits in dollars
that had been accepted by 82% of total depositors, was approved
by the intervening judge. This rescheduling will now be applied
to 100% of depositors. The first 3% in cash repayment will occur
during the first days of January after receiving the Uruguayan
Central Bank's instructions.

The latest court ruling will release close to US$947 million in
deposits and pave the way for the reopening of Banco Galicia
Uruguay. The favorable reply of Banco Galicia Uruguay's
depositors represents the confidence in the bank as a result of
long standing reputation of Banco Galicia in the financial
system.

Banco Galicia Uruguay was the country's second-largest private
financial institution in terms of deposits before it was
intervened and suspended by the central bank in mid-February
after losing US$500 million in deposits between December last
year and January 2002. Today, it has some 13,000 clients, 99% of
which are Argentines.

CONTACT:  Peter Richards
          Managing Director
          Telefax: (011) (5411) 4343-7528
          Email: prichards@gfgsa.com



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

CITGO/PDV AMERICA: Fitch Places On Rating Watch Negative
--------------------------------------------------------
Fitch Ratings has placed the debt ratings for CITGO Petroleum
Corporation (CITGO) and PDV America, Inc. on Rating Watch
Negative as a result of the heightened uncertainty related to the
prolonged political crisis and national strike in Venezuela.
Fitch rates CITGO's senior unsecured debt 'BBB-' and PDV
America's senior notes 'BB+'. CITGO is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela S.A.
(PDVSA), the national oil company of Venezuela.

The Rating Watch Negative status reflects the interruption of
crude oil supply from PDVSA and related entities as a result of
the general strike in Venezuela, which began on December 2. PDVSA
is contractually obligated to supply approximately 50% of CITGO's
feedstock requirements under long-term crude oil supply
agreements. Fitch believes that the supply interruptions from
Venezuela will remain in place at least as long as the national
strike continues unabated. The oil sector's overwhelming support
for the three-week old strike has effectively shut down
Venezuela's hydrocarbon industry, disrupting crude oil and
derivative product export flows. The continued sovereign
uncertainty may result in shareholder interference with CITGO and
PDV America, impairing their financial flexibility. A further
deterioration in the credit quality of Venezuela and PDVSA could
result in a multiple notch reduction in the ratings of PDV
America and CITGO.

CITGO is actively acquiring crude to maintain refinery
operations. To date, CITGO has been able to secure enough
alternate crudes to maintain full operations through the middle
of January. CITGO believes that it can secure adequate supply
over the longer term. However, the refinery's optimal performance
is designed for the Venezuelan crude specifications, and as such,
alternative crude slates may adversely impact CITGO's overall
economics. Fitch believes CITGO's liquidity position is more than
adequate to meet anticipated financial obligations over the near
term. CITGO has approximately $400 million in liquidity available
through the company's credit facilities and trade accounts
receivable program. In mid-December, CITGO entered into a new
$520 million credit facility to replace the credit facilities
maturing in May 2003.

CITGO is one of the largest independent crude oil refiners in the
United States, with three modern, highly complex crude oil
refineries and two asphalt refineries with a combined capacity of
756,000 barrels per day. The company also owns approximately 41%
interest in LYONDELL-CITGO Refining L.P. (LCR), a limited-
liability company that owns and operates a 265,000-barrel per day
crude oil refinery in Houston, Texas. CITGO markets refined
products through approximately 13,400 independently owned and
operated retail outlets.

Contact: Bryan Caviness 1-312-368-2056, Chicago, or Alejandro
Bertuol 1-212-908-0393, New York.

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


PDVSA: Considers Asset Sale; Threatens To Dismiss Workers
---------------------------------------------------------
Petroleos de Venezuela SA is contemplating selling unprofitable
businesses abroad in an effort to compensate for the US$1.3
billion of losses caused by the general strike that has been
crippling the Company's activities since December 2, reveals
PDVSA President Ali Rodriguez.

PDVSA's international assets include stakes in refineries in
Germany and gasoline stations in the U.S. Rodriguez, however,
didn't say which businesses the Company would sell. In addition,
the executive warned that the state oil producer, whose sole
shareholder is the government, would also fire workers.

"We are trying to manage a major crisis," Rodriguez said, adding,
"Strikers have inflicted grave damages on us."

Most of the Company's 40,000 workers are taking part in the
strike, curtailing exports from the world's fifth-largest
supplier and cutting daily production more than 90%. Crude oil
rose to a 23-month high on speculation that U.S. refiners have
dipped into reserves to make up for missing oil from Venezuela,
which supplies about 9% of crude used in the U.S.

In July, the oil company warned that 2002 profit would fall 53%
from last year to about US$2 billion because of oil production
cuts sanctioned by OPEC. Monthly revenue was forecast at about
US$2.5 billion before the strike.




               ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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or balance thereof are $25 each.  For subscription information,
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