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       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

           Monday, January 20, 2003, Vol. 4, Issue 13

                           Headlines


A R G E N T I N A

TELECOM ARGENTINA: Debt Restructuring Deal Expected In 1H03
* Argentina Reaches Agreement With IMF
* Transcript of a Press Briefing by Thomas C. Dawson


B E R M U D A

ANNUITY AND LIFE: Wechsler Harwood Files Class Action Lawsuit


B R A Z I L

CEMAT: Restructures Rede's Debts
FLEETBOSTON FINANCIAL: LatAm Units Show Slight Improvements
GERDAU: Not Planning To Issue Debt In Foreign Markets
TELESP CELULAR: Acquires Tele Centro Sul Participacoes
VARIG: Suspends Leasing Payments To Buy Fuel


C H I L E

ENDESA: LatAm Subs Invest $39.4M Despite Turbulent Markets
ENERSIS: Modifies Financial Statements To Comply With New Rules


M E X I C O

ATSI COMMUNICATIONS: Responds to Trading Halt
CORPORACION DURANGO: S&P Lowers Corporate Credit Rating to 'SD'
GRUPO MEXICO: Dodges Debt Bullet With $225M Barclay's Loan
SATMEX: Updates Details on Satmex 6 Launch
SAVIA: Seminis Reports Improving Fiscal 2002 Results


T R I N I D A D   &   T O B A G O

BWIA: Shareholders' Counsel Forecasts `May Be The Next Enron'
BWIA: Minister Assures Lawsuit Won't Affect State Loan


U R U G U A Y

URUGUAYAN BANKS: McKinsey To Advise Government On Asset Sale


V E N E Z U E L A

EDC: Late Bill Payers Will See No Change in Service
FERTINITRO FINANCE: Fitch Cuts to 'CC' on Debt Coverage Concerns
SIDOR: Bleak Future Spurs Concern Among Mexican Partners
* S&P Comments on Venezuelan Oil Crisis


     - - - - - - - - - -

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A R G E N T I N A
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TELECOM ARGENTINA: Debt Restructuring Deal Expected In 1H03
-----------------------------------------------------------
Telecom Argentina, after nearly six months of debt negotiations
with bank lenders and bondholders, is about to close a debt-
restructuring agreement with the creditors, Business News
Americas indicates. Carlos Felices, CEO of the second-largest
telco in the country, said an agreement could be reached during
the first half of this year, adding that debt-restructuring will
be done with without shareholder changes.

Telecom is Argentina's largest corporate debtor with liabilities
amounting to some US$3.2 billion. The Company indefinitely
suspended payments on all principal and interest of its debt in
early 2002, after the post-devaluation crash of the peso against
the dollar knocked its asset-liability balance out of proportion.

For the first three quarters of 2002, Telecom said it accumulated
net loss of ARS4.15 billion, though most of those losses were
ultimately recorded in the first quarter. Telecom actually posted
a ARS480-million profit for 3Q02.

Telecom is 54.7% owned by Nortel Inversora, a joint venture
between Telecom Italia and France Telecom. Of the remaining
equity, 40.58% is traded on the Buenos Aires and New York stock
exchanges and 4.68% is in the hands of employees.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repœblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


* Argentina Reaches Agreement With IMF
--------------------------------------
Argentina and the International Monetary Fund arrived at
conclusive terms on new loans, according to the Associated Press.
The country will use the financial infusion to roll over debts
coming due within the first six months of this year. Thomas
Dawson, spokesman for the IMF said that the agreement would be
presented to the IMF executive board for review "in the coming
days". AP said that the lender usually approves the deals made by
its negotiators. Economy Minister Armando Torres also added that
the country made a payment of US$1B to the IMF on Thursday. The
payment was due on Friday.

President Eduardo Duhalde refused to make debt payments to
international lenders until a new aid package from the IMF is
secured. According to Mr. Duhalde, making debt payments risks his
ability to control monetary policy.

The country previously asked for a weeklong extension on a US$700
million payment due to the Inter-American Development Bank. The
payment's grace 30-day grace period expired on Thursday.



* Transcript of a Press Briefing by Thomas C. Dawson
----------------------------------------------------

Thomas C. Dawson
Director, External Relations Department
International Monetary Fund
Thursday, January 16, 2003
Washington, D.C.

MR. DAWSON: Good morning, everyone. I am Tom Dawson, Director of
External Relations at the IMF, and Happy New Year. This is
another of our regular press briefings.

Before I take questions, I would like to flag a couple of events
that are on the home page of our external website: the Sovereign
Debt Restructuring Mechanism Conference on January 22nd and the
Global Linkages Conference on January 30th and 31st. Both will be
held here at Fund headquarters.

The SDRM Conference, which is part of our ongoing consultations
with a range of experts on the subject, is not open to the press,
but I do expect we will circulate some of the remarks issued
during the event, both on the part of Fund staff but as well on
the part of the outside participants. We will have more
information on that nearer to the event. Press, though, are
welcome to attend an Economic Forum being held at 5:30 on January
22nd. It is sort of a wrap-up of the conference, and First Deputy
Managing Director Anne Krueger will chair the forum.

As noted on the Web, the forum is entitled "The New Approach to
Sovereign Debt Restructuring Mechanism" and will be a panel
discussion that includes Mexico's Deputy Finance Minister
Augustin Carstens and Ann Pettifor of "Drop the Debt", among
other participants.

The "Global Linkages" conference on January 30th to 31st is
hosted by the Fund's Research Department. It will explore how
economic linkages across countries have changed in recent years
and discuss implications for public policy. If you are interested
in attending, send an e-mail to Media at imf.org. Access is on a
first-come, first-served basis, and I gather that it is rather
tight at this point. But it is worth trying, and we will see if
we can get additional people in if you are interested.

Now I will be happy to take any questions you may have.

QUESTIONER: Ms. Krueger is in Turkey now, and at the time when
Turkey failed to meet last year's target for primary surplus, are
you concerned over the recent level of public-government
spending? And are you also concerned about government plans to
amend an IMF-backed state bidding law? And in more general terms,
how would you define the situation of the Turkish economy at this
point? Thanks.

MR. DAWSON: Well, as you noted in the preface to your question,
the First Deputy Managing Director is in Turkey today. She will
be shortly making a brief statement to the press, so I do not
think it is really quite appropriate for me to steal her thunder.


On the other hand, I do think it is important that Turkey
consolidate the gains that have been achieved under the program
where very substantial progress was made, and this certainly
involves the need to maintain a high primary surplus as well as
pursue the areas in restructuring. So I think in that sense it is
important to focus on the need, as I said, to preserve the gains,
but I believe the First Deputy Managing Director will be making a
statement later.

There also was a story yesterday-and there is a story actually
this morning out of Ankara-correcting what had been a false
report that the discussions that Ms. Krueger had had with the
authorities had included the idea of an augmentation or change in
the size of the program. There have been no such discussions.

I do believe that in her comments later today she will talk in
some detail on the state of the program, which is, I think, what
your question really was.

QUESTIONER: There have been suggestions in Brazil that the cost
of financing the zero hunger program could be calculated as a
social investment and not as an expense on the budget. Would that
be possible?

MR. DAWSON: I am aware of those reports, but I do not have any
basis on my part to respond. We do have a review scheduled coming
up in a few weeks, and we will be discussing the state of the
program. And I think the Minister Palocci has been quite clear on
the need to have a program that is both supportive of the very
important social needs within Brazil, but also of the need to
demonstrate the commitment to a sustainable fiscal position. And
I think the authorities have shown quite a bit of determination
and success in the early days in terms of being able to balance
those needs. But in terms of that specific idea, as I said, I am
aware of the discussion that has appeared in some parts of the
press, but it is not an issue that at this point we are engaged
on. As I indicated, we will be having the review mission going
down in the next few weeks.

QUESTIONER: Argentina did not pay yesterday to the IDB. I would
like to know if this is an additional problem to reach an
agreement with the IMF. And, also, Minister Lavagna said
yesterday that there have been some problems at the monetary
level in order to reach an agreement. I would like to know what
exactly is the problem.

MR. DAWSON: With regard to the payments to the other
institutions, in the factual level you certainly should direct
your questions to those institutions. In terms of the impact of
those developments on our negotiations, there is, in fact, no
impact. We are working quite diligently in an attempt to finalize
what we have described as an interim program. We are close. We
are hopeful that in the near future-I think near future should be
hopefully in terms of the next day, day and a half, meaning by
the end of tomorrow, we hopefully will have something to
announce.

I think it is fair to say that we have been making steady
progress. It is not at all unusual that issues come up and go
back, and, again, in terms of those people go through the details
of the actual letters of intent, memorandum of economic policy
and so on.

I did have the opportunity this morning to review actually a
transcript of Minister Lavagna's statements yesterday, and I did
not find them quite as newsworthy-I guess I could say that-as
perhaps some of the stories were. This is a normal process of
trying to reach-to finalize an agreement, and as I say, I think
we are on track. And this is essentially the timeline that we
have planned since we announced the idea of the interim
agreement, which was, I guess, December 20th, I believe. So as
far as we are concerned, we are operating on the basis that we
were expecting to then.

QUESTIONER: So that announcement that you expect at the end of
tomorrow would be for...

MR. DAWSON: We are hoping to be soon finalizing the interim
agreement that we are talking about, and if things go well, we
should be in a position in the next 36 hours or so of announcing
something. We are not there yet. There still is at least one
unresolved issue, and we are working to resolve that as soon as
we can. I cannot promise it, but this is sort of what our hope
is.

QUESTIONER: IMF sources have said, but not on the record-and I
was hoping you could say on the record-that this deal is expected
purely to roll over payments coming due to you through June.
Would that be...

MR. DAWSON: It is an interim arrangement that would, in a
fashion, maintain exposure. So if you want to use the word
"rollover," that's fair. I do not think I would necessarily focus
on the word "June," because I am not quite sure in my mind at
this point of the precise tenor. But, clearly, the intent is to
provide a degree of breathing room so that the Fund-Argentina
relationship can go forward. We can await the new election and
see how with the new authorities we can work on an agreement that
is of a more medium-term nature.

QUESTIONER: You referred to one point that was unresolved. Which
point would that be?

MR. DAWSON: No, no. I think I actually said "at least one point,
but I am aware of one point", but these are not issues where
there is a draft and there is seven items and then steadily you
go one, two, three, four, five, six, seven to resolve them all.
Things do go back and forth. It is a naturally fluid process. I
am aware of one particular item. It may well be that there is
another item that has come up, as-this can work in both
directions as people look at language and they see something they
might not have seen before. This is a perfectly normal process.
There is nothing unusual happening in the last two weeks in this
regard. It is completely normal, and as I indicated, we are on
the same timeline that we anticipated almost a month ago, almost
four weeks ago.

QUESTIONER: How do you respond to criticism that Argentina is
blackmailing you by not paying the other organizations?

MR. DAWSON: I think I have answered that question. We are
precisely on the timeline that we planned from the beginning, the
pace of work and the nature of the discussions from before.

QUESTIONER: And also some critics says that you are lending this
money to Argentina to save yourselves. What do you think...

MR. DAWSON: We are a cooperative institution. We exist to serve
our members, and we are trying to assist our members. That is our
purpose.

QUESTIONER: Anne Krueger sat in this very room just a couple of
months ago when your annual report came out and said-

MR. DAWSON: Time does fly. It was more than a couple of months
ago.

QUESTIONER: ...and said that she would not be bothered if
Argentina did have to default with you. And she repeatedly, as
did then Treasury Secretary Paul O'Neill say that the IMF was not
going to loan money to countries that had not undertaken the
correct reforms. A number of commentators have suggested that
Argentina have not undertaken these reforms, and I wonder if you
could specify exactly what has changed that has made the IMF-

MR. DAWSON: I do not think anything has changed at all. Last fall
we were talking about more of a medium-term program. We are now
talking about a transition program.

Secondly, I would suggest that you take a look at the program
when it is made public in the spirit of our transparency of what
the program actually contains, and I think you will indeed say
measures in the fiscal and monetary area as well as in some other
areas as well. So I would think that-I do not think there is any
contradiction, although, of course, there has been a passage of
time, and in my rough calculation, it is closer to four months
than two months.

QUESTIONER: A brief follow-up. It has been said that as part of
the agreement, Argentina will have to really pay the arrears to
the World Bank and the IDB-is this true?-before it is signed.

MR. DAWSON: Before it is signed? I am not quite sure what
"signed" means. Look, we are on progress. I do not think that
question is relevant. We are going ahead, and I do not think
there is anything stopping us from concluding our negotiations at
this point. That is the issue that we are hoping to resolve, as I
said in the next 36 hours or so.

In terms of going forward, certainly as the institutions-in this
sense, we are talking about three institutions-go forward, each
of them do have their own policies in terms of arrears and so on,
and I think when one actually gets to the point of disbursements,
that will have to be addressed at the time. But I believe it will
be addressed consistently with what the institution's policies
are. But it is-sometimes when we say it is a hypothetical
question, we mean it will be coming up in three months. It is not
quite the same hypothetical question because it is a question
coming up in the next week or so. But I think it will be
addressed.

QUESTIONER: The amount of money being printed in Argentina and
the possibility of running high levels of inflation, could that
be one of the sticking points?

MR. DAWSON: Certainly the monetary anchor and the monetary
program over time has been a concern of ours. It is, as I
indicated, one of the two specific elements of the program that I
indicated today and I have indicated previously. I would not
necessarily steer you in the direction that this is an
outstanding issue is, no.

QUESTIONER: In order to sign this interim agreement, has
Argentina fulfilled whatever you wanted in the fiscal and
monetary and banking system reforms? Has Argentina done those
reforms?

MR. DAWSON: Well, there are two elements of what a program is.
There is an element in terms of where we are, which could or
could not necessarily imply prior conditions, prior actions. Then
there is also the question of agreeing on a program going
forward. I think we are more in the context of agreeing on a
program going forward with particular measures, targets, and so
on. So I think one can assume that when-if and when an agreement
is signed, submitted to the Board, for example, -that it will be
an agreement that has been fulfilled up to that point in time. So
it is sort of a circular question you are asking.

QUESTIONER: In the Japanese Government, the ruling party called
for introducing inflation target to fight inflation growing. Does
the IMF support this idea?

MR. DAWSON: I was not up-to-date on that particular
recommendation. Certainly we have been quite clear-and Ken
Rogoff, the Economic Counselor and Director of Research, has been
very clear on our view that there is need to be an aggressive
monetary program in Japan, accompanied by financial sector
restructuring. So I think we will need to get back to you in
terms of the specific commentary, but anything that goes in the
direction of a more aggressive monetary policy I think would
certainly meet with Mr. Rogoff's approval-along with financial
sector restructuring, let me make clear.

QUESTIONER: On another country, in Latin America, Ecuador, an IMF
mission is arriving in Quito this weekend, and two questions. Do
you have an updated information about the mission? And the second
one is: There were some [inaudible] saying that the new
government is requesting twice the amount initially asked to the
IMF. It would be around $500 million.

MR. DAWSON: I have no information regarding the latter part in
terms of size of a program. It would be a little premature on
that.

You are correct, as you indicated, a mission is going to Quito
this weekend to conclude the Article IV discussions, and also to
continue negotiations on a possible new stand-by. We have been
discussing with the incoming administration-although it is no
longer an incoming administration, since it was inaugurated
yesterday-their new program over the last few weeks. The
discussions have been going well, and we would hope that this
mission can reach agreement ad referendum on a program that could
be supported by a new stand-by. But to repeat, I do not have
anything with regard to that issue on size of program, increase
in the size of the program.

QUESTIONER: I just want to know why now you are ready to get in
agreement with Argentina. What exactly has changed? And why it
actually does not have anything to do with Argentina going in
default with you, as Wall Street suggested.

MR. DAWSON: Well, I do not know what Wall Street is suggesting.
Wall Street is a market, and there are lots of views on Wall
Street and not necessarily always consistent views or accurate or
uniform views.

In terms of where we are on Argentina, it has been a very
difficult process. It has been a very difficult time for
Argentina and the Argentine people, and, as I said earlier, we
exist to serve our members, to try to find ways to assist them.
Given the present state of the Argentine political process at
this point, this sort of an approach for this sort of an interim
agreement seems the practical way of being of the most assistance
to Argentina at this point in time, this being, as indicated, a
transition interim arrangement to hopefully be able to work with
the new government that comes in the spring to have a more
medium-term program.

QUESTIONER: [inaudible] going on default. I mean, is it or is it
not?

MR. DAWSON: We are not unaware of forthcoming obligations, but we
operate to assist our members, and this seems a quite reasonable,
pragmatic way to go forward.

As I indicated, wait for when the agreement is concluded, as I
said, hopefully in the next 36 hours, take a look at what is in
there, and you will see it is an agreement that attempts to
maintain the progress that has been made over the last year. I
mean, there has clearly been an element of stabilization in the
Argentine economy when it comes to the bottoming out of the
recession, some indications of scattered areas of recovery,
certainly stabilization of the exchange rate, and in many senses
a better inflation performance than -had perhaps been expected.

So I think it is the best that we can do at this point in time,
and I think that is what our purpose is. Our purpose is to help-
to help our members in these difficult times.

QUESTIONER: Can I just get you to clarify-and I am sorry if you
have already mentioned this. Is there going to be any release of
fresh funds involved in the interim agreement?

MR. DAWSON: No. It is essentially what is in the vernacular
referred to as a rollover agreement.

QUESTIONER: And you are saying the next 36 hours...

MR. DAWSON: Now, that is as far as we are concerned. You would
have to talk to the other institutions about what the nature of
their program is in terms of the World Bank and the IDB.

QUESTIONER: And would that assume then that Argentina will make
the payment that is due tomorrow?

MR. DAWSON: We will worry about that and consider that when it
happens, and as I said we are quite timely and transparent in
terms of our announcements in that regard. So we will be-we will
be clear as to where we are, when we are, where we are.

QUESTIONER: Tom, perhaps you could explain to those of us who are
not privy to the negotiations exactly what are the difference
between Ecuador and Argentina. From an outsider's point of view,
you have two countries who were in negotiations with the IMF, and
neither, for political reasons, was able to deliver on what the
IMF wanted. In the case of Ecuador, you decided not to give them
a loan and wait for the new government to be elected before
renegotiating again. And in the case of Argentina, you have
decided to try and make an agreement before the election. Can you
explain to outsiders the difference in the two situations, which
look very similar and seem to show some favoritism?

MR. DAWSON: I actually do not see any similarity, and there is
nothing-I mean, first of all, the Argentines are interested in
this sort of an agreement. I am not aware that the Ecuadorians
have expressed any interest in any sort of a similar agreement.
There ends the idea that they are the same.

QUESTIONER: Does the IMF have any reaction to the new budget that
the Palestinian Authority has introduced?

MR. DAWSON: The Palestinian Authority has been making efforts to
reform its financial management, and we think good progress has
been made. At the end of December, the Minister, Minister Fayyad,
the Finance Minister but also, in the interest of full
disclosure, a former Fund staffer, submitted a budget proposal to
the parliament. The budget is based on a tight expenditure stance
and supported by strong reform measures.

We, the Fund, are continuing our technical assistance for these
reforms and future reforms planned, such as strengthening of the
tax administration and budget reforms in terms of integration of
the capital and operating budget. So this is one of those areas
where the Fund is involved with countries in a non-program sense
of the word but providing technical assistance to help strengthen
financial management.

QUESTIONER: For the record, I would like to know which are,
according to the Fund, the issues that the Fund intended to
negotiate with Argentina for a sustainable long-term program that
are left aside at this agreement and have to be faced by the next
government. What kind of things do you think or the Fund thinks
that is completely left aside of this agreement?

The other thing is you have been all along all this process
talking about so-called political consensus. That disappeared in
the last weeks. Are you expecting after this sad experience, this
long, frustrating negotiation, that with the next government,
while negotiating that medium-term program that you are looking
forward to, that you will able to see a political consensus
emerge in support of a workable proposition, despite the current
fragmented political situation in Argentina?

MR. DAWSON: Well, certainly fragmented political situations make
it difficult for programs to be developed, approved, and
maintained. Indeed, in other regions of the world, I would note
the Fund has been criticized for going into countries when there
is not such a consensus.

Now, in terms of what the medium-term-what a medium-term program
might look like under a new government, I think the best way-the
best suggestion I would make is you just could go back to last
April and again to this last fall, and look at the programs put
forward at that time and that were agreed between the governors
of the provinces and the administration. I believe there was
first a 14-point program, and then there was another one later
on. Those sorts of elements which are of the more structural,
longer-term nature are the sorts of things that in the medium
term a new government will need to address.

These are not issues raised by the Fund. These were issues raised
by the Argentine central government in discussions with the
provinces, with the governors. So I think that is indicative. It
is not that the Fund has a one-size-fits-all or laundry list we
are putting forward. I think the Argentines have developed the
sort of sketching out of the areas that need to be addressed, and
we would look forward, with a new government, to trying to work
with them to see how they can implement what they have
identified.

So I think I would go back to the 14 points of April, and you
will see a number of those points are contained in the interim
agreement. But some of those same points will continue on. I
mean, the fiscal, monetary areas will continue on, under any
program, and some of the other areas that are not encompassed in
the prospective program will need to be addressed by the new
government.

So I think the road map is quite there and the road map is
"fabricado" (made) in Argentina.

Thank you very much.

[Whereupon, the press briefing was concluded.]

IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772



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B E R M U D A
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ANNUITY AND LIFE: Wechsler Harwood Files Class Action Lawsuit
-------------------------------------------------------------
Wechsler Harwood LLP has commenced a securities class action on
behalf of shareholders who purchased, converted, exchanged or
otherwise acquired the common stock of Annuity and Life Re
(Holdings), Ltd. (NYSE:ANR) between February 12, 2001 and
November 19, 2002, inclusive (the "Class Period").

The case is pending in the United States District Court for the
District of Connecticut against defendant Annuity and Life Re
(Holdings), Ltd. and against Frederick S. Hammer, Lawrence S.
Doyle and John F. Burke.

The complaint charges Annuity and Life Re (Holdings), Ltd. and
certain of its officers and directors with issuing false and
misleading statements concerning its business and financial
condition. Specifically, the complaint alleges that throughout
the Class Period, as alleged in the complaint, defendants issued
numerous statements and filed quarterly and annual reports with
the SEC which described the Company's increasing revenues and
financial performance. As alleged in the complaint, these
statements were materially false and misleading because they
failed to disclose and/or misrepresented the following adverse
facts, among others: (i) that the Company had failed to properly
account for embedded derivatives contained in certain of its
annuity reinsurance contracts in 2001; (ii) that, since at least
2001, the Company had understated a portion of its liabilities
and expenses; (iii) that the Company lacked adequate internal
controls and was therefore unable to ascertain the true financial
condition of the Company; and (iv) that as a result, the values
of the Company's balance sheet and financial results were
materially overstated at all relevant times.

On November 19, 2002, the last day of the Class Period, Annuity
and Life announced that it would restate its financial results
for years 2000, 2001 and the first and second quarters of 2002,
the period ending June 30, 2002. As detailed in the announcement,
the restatement was necessary because the Company had failed to
properly account for embedded derivatives contained in certain of
its annuity reinsurance contracts in 2001, and, that since at
least 2001, the Company had understated a portion of its
liabilities and expenses. Following this disclosure, shares of
Annuity and Life fell as much as 44%, culminating a 91% decline
in the price of the Company's common stock in the prior twelve
months.

Purchasers of securities during the Class Period may, no later
than February 3, 2002, move to be appointed as a lead plaintiff
in this class action. A lead plaintiff is a representative party
that acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court
must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one
or more class members may together serve as lead plaintiff. The
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. Wechsler
Harwood, or other counsel of choice, may be selected to serve as
counsel in this action.

CONTACT:  WECHSLER HARWOOD LLP
          488 Madison Avenue, 8th Floor
          New York, New York 10022
          Toll Free Telephone: (877) 935-7400
          Craig Lowther (Shareholder Relations Department)
          Email: clowther@whesq.com



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B R A Z I L
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CEMAT: Restructures Rede's Debts
--------------------------------
Brazilian utility Cemat received approval from its board on terms
for a BRL320-million (US$97 million) debt-restructuring plan.
In a statement cited by Business News Americas, Cemat said it
will loan the money from Brazil's national development bank
BNDES, which is releasing the money as an advance on a future
non-convertible debenture issue.

Cemat, which is based in the center-west state of Mato Grosso, is
one of the companies that belong to the group called Grupo Rede.
Cemat is restructuring Rede's financial obligations.

Board member Maria Fagundes voted in favor of the debt-
restructuring plan "due to the difficulties faced by the group,
above all a cash flow insufficiency."

Grupo Rede distributes electricity to over two million customers
in states covering 30% of Brazil.


FLEETBOSTON FINANCIAL: LatAm Units Show Slight Improvements
-----------------------------------------------------------
FleetBoston Financial (NYSE: FBF) reported Thursday fourth
quarter net income from continuing operations of $297 million, or
$.28 per share, compared with a net loss of $486 million, or $.47
per share, in the fourth quarter of last year. The improvement
from last year is mainly due to valuation charges taken in 2001
related to our Argentine and Principal Investing businesses,
partially offset by higher charges taken in the current year for
commercial credit. For 2002, net income from continuing
operations was $1.5 billion, or $1.44 per share, compared with
$968 million, or $.87 per share for the year 2001.

Including results from discontinued operations (primarily Fleet
Trading and Robertson Stephens in the current quarter), net
income in the fourth quarter was $261 million, or $.24 per share,
compared with a net loss of $507 million, or $.49 per share, in
the fourth quarter of last year. Net income in 2002 was $1.2
billion, or $1.12 per share, compared with $931 million, or $.83
per share, in 2001.

Chad Gifford, Chairman and Chief Executive Officer said,
"Strategic transitions are never easy, particularly in a
difficult operating environment such as exists today. As
promised, we have steadily reduced risk in the franchise, while
at the same time positioning our core banking franchise for
growth. In the area of risk reduction, we exited the investment
banking business and have significantly reduced our domestic
wholesale and Latin American exposures over the past year.
Simultaneously, we have effected great change in our core
consumer and wholesale banking businesses. We have seen growth
across a wide spectrum of customer measures. Our core consumer
deposits are up approximately 10% from a year ago. We look
forward to building upon this success in 2003 and to further
solidifying our position as the top bank for consumers and
businesses in the northeast. The path chosen is the right one for
us and our shareholders and we are confident of its success."

Eugene McQuade, President and Chief Operating Officer, remarked,
"I am energized by our strong group of business leaders who will
work with me in achieving the potential of our franchise. We have
assembled a talented management team each of whom fully
understands what is necessary to move Fleet to a top-tier
position among financial services companies. This past year has
been one of transition and while we have had to deal with
problems on several fronts, we remain a financially strong
company with capital and reserves of $20 billion."

Business Line Performance

Compared with the fourth quarter of last year, Personal Financial
Services and Wholesale Banking posted improved results.

Personal Financial Services benefited from a 10% increase in core
deposits as well as higher loan volumes, mainly related to home
equity and credit card. The business has also benefited from
higher business volumes resulting from increased customer usage,
lower attrition, and improved service levels and our home banking
product (HomeLink) recently surpassed the 3 million mark in
customers. Our Wealth Management and Brokerage business also
improved over the fourth quarter of last year, benefiting from
the acquisition of Liberty Financial's operations as well as
improved performance from Quick and Reilly. In Wholesale Banking,
despite a significant decline in loan levels due to risk
reduction efforts, earnings improved from the fourth quarter of
last year. This was due, in part, to higher levels of fee income
led by a healthy increase in cash management fees and lower
expenses.

During the fourth quarter, we also continued our efforts at
repositioning businesses in the US and abroad. Despite continued
exposure reductions in Argentina, Brazil, and Principal
Investing, all three units reported a slight improvement in their
results over the third quarter. Fourth quarter results also
included higher securities gains and a charge of approximately
$70 million related to current and planned staff reductions
included in this year's operating plan.

Credit Quality/Balance Sheet

Nonperforming assets declined $300 million, or 8%, from September
30 and totaled $3.5 billion at December 31, 2002. Loan loss
reserves stood at $3.9 billion, or 3.2% of total loans. Total
assets at December 31, 2002 were $190 billion, compared with $204
billion at December 31, 2001. The decrease from a year ago is
primarily due to our risk reduction strategies for domestic
commercial loan and Latin American exposures. Stockholders'
equity amounted to approximately $17 billion at December 31,
2002, with a common equity to assets ratio of 8.7%.

To see financial statements:
http://bankrupt.com/misc/FleetBoston_Financial.htm

CONTACT:  FleetBoston Financial
          Media Contact:
          James E. Mahoney, 617/434-9552
                  or
          Investor Contact:
          John A. Kahwaty, 617/434-3650


GERDAU: Not Planning To Issue Debt In Foreign Markets
-----------------------------------------------------
Brazilian sheet steelmaker Gerdau, whose debts have been
negatively affected by the 50% appreciation of the dollar last
year against the real, is responding to rumors of plans to issue
debt in foreign markets, reports Business News Americas. The
stories, allegedly advanced by Bank of America, suggested that
the Porto Alegre, Rio Grande do Sul-based company is planning to
raise US$65 million of foreign debt markets.

But a Gerdau spokesperson said there are no negotiations for
financing taking place on either foreign or domestic markets and
would not even comment on whether it had any debt payments coming
due. At the end of the third quarter last year, Gerdau's net debt
stood at BRL7.1 billion (currently US$2.15 billion).

CONTACT:  GERDAU, S.A.
          Avenida Farrapos, 1811
          90220-005 Porto Alegre
          Rio Grande do Sul, Brazil
          Phone: +55-51-3323-2000
          Fax: +55-51-3323-2080
          http://www.gerdau.com.br
          Contacts:
          Jorge Gerdau Johannpeter, President
          Osvaldo Burgos Schirmer, EVP Finance/Investor Relations


TELESP CELULAR: Acquires Tele Centro Sul Participacoes
------------------------------------------------------
Telesp Celular Participacoes S.A ("TCP"), (NYSE: TCP; BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)), the Brazilian holding company
that owns 100% of Telesp Celular S.A., the leading mobile
operator in the state of Sao Paulo in Brazil, and Global Telecom
S.A., a B-band mobile operator in the Brazilian states of Santa
Catarina and Parana, announces that its controlling shareholder,
Brasilcel N.V., a Joint Venture of PORTUGAL TELECOM, SGPS, S.A.,
PT MOVEIS, SGPS, S.A. and TELEFONICA MOVILES S.A., signed on
January 15, 2003, in benefit of TCP, a preliminary purchase and
sale agreement with Fixcel S.A. ("Fixcel") to acquire
77,256,410,396 common shares of Tele Centro Oeste Participacoes
S.A. ("TCO"), representing 61.10% of voting capital and 20.37% of
total capital ("Acquisition")

The execution of the final documents including the agreed terms
of the Acquisition is anticipated to occur at the end of coming
weeks. Such execution is subject to some conditions of the
preliminary agreement. The conclusion of the Acquisition is
anticipated to occur during the first half of 2003.

The acquisition depends on the approval of "Agencia Nacional de
Telecomunicacoes" - ANATEL, the Brazilian Communications
regulator and will be submitted to "Conselho Administrativo de
Direito Economico" - CADE, the Brazilian Antitrust Commission.

The price agreed in the preliminary agreement is R$ 1,408
billion, totaling R$ 18.23 per thousand common shares. A down
payment will be made when the shares are transferred and the
remaining balance will be paid afterwards. This price is subject
to adjustments due to the legal, accounting and financial due
diligence at TCO and its controlled companies, which shall begin
in a few days. The definitive price, as well as its payment
method, will be disclosed following those adjustments.

After the acquisition is concluded and, under the current
legislation, TCP will make a tender offer for the acquisition of
common shares from non-controlling shareholders of TCO by 80% of
the price paid per share in the Acquisition ("Tender Offer"). The
Tender Offer will begin as soon as it is registered at the
Comissao de Valores Mobiliarios, the Brazilian Securities and
Exchange Commission.

After the Acquisition and the Tender Offer are completed, TCP
expects to merge TCO's shares. The exchange ratio to be offered
will be 1,27 shares issued by TCP for each share issued by TCO.
This ratio will be adjusted by the results of the aforementioned
due diligence to be conducted at TCO and its controlled
companies.

CONTACT:  Telesp Celular Participacoes S.A.
          Investor Relations Director:
          Edson Alves Menini, (5511) 3059-7531
          URL: www.telespcelular.com.br

          Tele Centro Oeste Celular Participacoes S.A.
          Arthur Fonseca, +011-55-61-313-7765
          URL: http://www.tco.net.br


VARIG: Suspends Leasing Payments To Buy Fuel
--------------------------------------------
After paying off BRL100 million in short-term debt to fuel
distributor Petrobras Distribuidora SA, and paying cash for fuel,
Brazil's Viacao Aerea Rio- Grandense SA halted payments on some
lease agreements. According to unidentified company officials
cited by Valor Economico newspaper, the No. 1 carrier in Latin
America decided to stop making the payments in order to buy fuel.
The paper, however, didn't specify how much debt Varig has not
paid nor to which leasing companies.

Varig carries debt totaling US$720 million, US$300 million of
which comes due this year.

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 H I L E
=========

ENDESA: LatAm Subs Invest $39.4M Despite Turbulent Markets
----------------------------------------------------------
Endesa, through the Chilean Holding Enersis, just like its
subsidiaries Endesa Chile (head of the Generation Business Line
in Latin America) and Chilectra (that operates in Chile and has
important shares in other electric utilities in Argentina,
Brazil, Colombia and Peru) is developing an intense work of
social responsibility in the five Latin American countries in
which it is present.

According to the information collected in the "Social Management
Report" of Endesa in Latin America, that has just been edited.
Endesa and its Latin American subsidiaries have invested some US$
39.4 million in different activities directy related with the
operation of its business and social reponsibility that include
three areas: community, education, and culture during the 2000-
2002 period, which represents a yearly average of US$ 13 million.

These actions, which were also encouraged by the governments of
the different countries, by means of the granting of important
tax benefits, are coherent with the character of public service
that the electric business has, especially considering the
economic inequalities that exist in the areas of concession where
the companies of the Holding do their business.

The following is a breakdown presented by the scope of
performance and amounts involved in those three years.

AMOUNT INVESTED IN ACTIVITIES OF SOCIAL RESPONSIBILITY IN LATIN
AMERICA IN DOLLARS (2000-2002)

Community     29,719,000
Education      1,140,000
Culture        4,297,000
Foundations    4,306,000
TOTAL         39,462,000

Society and Community

During the lasts three years, the Latin Amercian companies of
Endesa have dedicated a total of US$ 29.7 million to social
activities directly justified by the operation of its business,
standing out, among other things, are the electrification of
rural and poor zones in Brazil, Peru and Colombia, the plan of
relocalization of families affected by the construction of the
Ralco hydroelectric plant in Chile, the lighting of sports fields
in Chile and Colombia, helping disabled people in Argentina, and
campaigns for the search of missing children in Chile and
Argentina.

The generating plants of the Holding continue with their activity
of electricity production, maintaining relations of collaboration
with communities and the authorities. For this reason, they have
developed activities and programmes oriented to improving the
quality of life of the people in the zones in which they operate.

Because of the construction of the Ralco hydroelectric plant in
the VIII region of Chile, Endesa Chile has started a plan of
relocalization that looks for sustainable progress in Pehuenche
communities of Alto Bio Bio, that will be affected directly by
the work.

With a total investment of US$30.9 million, the plan mentioned
above involves the purchase of land and the development of
infrastructure, living spaces, fire places, store houses,
corrals, community places, churches, electrification, potable
water system, roads, watering system, fences etc. In this context
they are developing, in addition, a sustainable plan of
assistance for ten years with actions of productive, turist,
social and cultural development. The commitment to help the
Pehuenche families that are indirectly affected by the Ralco
power plant is also added to the list of activities.

Other activiities in this area that stand out incluide the
training of youth leaders in risk prevention, as well as the
support to the construction of infrastructure in locations close
to the power plants.

The distribution companies, for their part, are conscious that a
relationship of collaboration with the social environment is a
reponsibility and the optimal setting for developing its
business. Because of this, they also promote activities with the
community including, for example, the lighting of sports fields,
with an investment close to US$ 1.7 million and the search for
children that up to this point include 20 million electricity
bills handed out with the faces of lost children..

Education

With respect to education, it is appropriate to point out that
some 400,000 children of the five Latin American countries in
which the Holding is present have benefitted in the last three
years in different programs started by the subsidiaries for
educating the children in the efficcient, rational, and safe use
of electricity. In this project the mascots of the companies:
"Dicri" (Argentina), "Lampinha" y "Cerjito" (Brazil), "Lucy"
(Colombia), "Chispita" (Chile) y "Dikri" (Peru) play a very
important role.

In addition, the companies of the Holding have started didactic
centers where the children learn by playing how electrical energy
is produced and how it is transported and distributed to homes,
and become concious about energy saving and security.

Culture

ENDESA and its Latin American subsidiaries have dedicated a large
part of its efforts to encourage these kinds of activities which
have benefitted 1.7 million people in Argentina, Brazil,
Colombia, Chile and Peru.

Among the relevant actions of the holding in the area of culture,
it is fit to point out the Cathedral and temple illumination
projects in Chile, Colombia and Peru, which involves a total of
US$ 3.7 million until the year 2005.

Another highlighted activity is the sponsoring of the
International Book Fair in Santiago (Chile), that is visited
annually by an average of 250,000 people during the 10 days that
the event lasts and that has had Enersis as the primary sponsor
for the last 11 years, with the commitment of continuing the
sponsorship at least until the year 2005.

Foundations

The foundations are a very important part for the Holding because
of its work in the diverse areas, including everything from
culture to science.

The Holding in Latin Amercia has four foundations in addition to
the Endesa Foundation that started in March of 1998 with the
purpose of integrating and managing the sponsorship activities,
which, untli then, Endesa and its Spanish subsidiaries were
doing.

The Codensa Foundation (Colombia) has the goal of making programs
for the development of social, educational, cultural, and
technological activities. The Emgesa Foundation also operates in
Colombia and is dedicated to promoting community development in
populations where the company facilities are located.

Endesa Chile has created and manages the Pehuen Foundation and
the San Ignacio del Huinay.Foundation. The Pehuen Foundation was
founded with the objective to promote programmes for the
improvement of the economic situation of the Pehuenche community
in Alto Bio Bio, while the San Ignacio del Huinay Foundation was
created together with Pontifical Catholic University of
Valparaiso, with the purpose of carrying out a project of
sustainable development in the south of Chile, based on more than
40,000 hectares (98842 acres) of forest, that will become a model
for other organizations in Chile to repeat.

Awards

The work carried out by Endesa in Latin America, in the area of
social responsibility has been recognized through various awards
and prizes granted to the majority of the companies in the
respective countries where the Holding operates.

Among these, stand out the tribute to Coelce by the Secretary of
Work and Social Action (SETAS in Spanish) of the Ceara state and
the "Consejo Estatal de Defensa del Ni¤o y del Adolescente", with
the "certicicate of society and social reponsibility"; the "Gran
Premio Ernesto Pinto Lagarrigue 2001", granted to Enersis by the
Corporation of Friends of Art for its "persistant and admirable
labor in the benefit of knowledge and development of art and
culture"; and the medal that the "C mara Chilena del Libro" gave
to Enersis for its " support that stands out in the world of
books and culture."


ENERSIS: Modifies Financial Statements To Comply With New Rules
---------------------------------------------------------------
Chilean power sector holding Enersis has done some adjustments in
its financial statements to comply with new accounting
regulations. Citing an Enersis statement, Business News Americas
reports that the Company has slashed the balance sheet value of
its assets in Argentina and Brazil by US$387 million, although
the impact will be softened by a US$97 million provision booked
in November 2002.

"The return on our investments in Argentina and Brazil was lower
than what we expected in 2002 due to the devaluation of the
currencies in those countries," an Enersis source said, adding
that the measure was taken to "clean house."

New accounting regulations stipulate the companies registered in
the United States must adjust their financial statements to
account for the real value of their assets.

Since Enersis' assets in Argentina and Brazil are worth less now
than when it bought them, Enersis has to adjust its books to
account for their reduced value.

"We took some provisions in 2002 because we recognized our
investments in these countries were not doing as well as we
expected, but the rules changed after November and companies are
no longer allowed to take provisions against the reduced book
value of their assets," the source explained.

Adjustments in the generation sector will be US$83 million (US$60
million in Brazil and US$23 million in Argentina), US$281 million
in distribution (US$255 million in Brazil and US$26 million in
Argentina), and US$23 million in services (all Chile). After
accounting for the November provisions (US$81 million in Brazil
and US$16 million in Argentina) the net effect on 2002 results
will be some US$290 million.

Enersis will meet with Deutsche Bank, SCH and Salomon Smith
Barney in the next few days to finalize the details of the
adjustment.

Enersis' generation subsidiary Endesa Chile arranged a charge
against 2002 results of US$137.4 million (US$100 million in
Brazil and US$37.4 million in Argentina), while distribution
subsidiary Chilectra arranged a US$145 million charge against
2002 results. The adjustments will have no effect on cash flow
and does not affect the respective companies' liquidity
positions, they announced.

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682
          Contacts:
          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl



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

ATSI COMMUNICATIONS: Responds to Trading Halt
--------------------------------------------
ATSI Communications, Inc. (AMEX:AI) announced Thursday that
trading in its stock has been halted on the American Stock
Exchange due to the delay in filing its 10-K and 10-Q from the
first quarter. ATSI hopes to complete its fiscal year 2002 audit
along with the 10-K and the first quarter 2003 ended 10-31-02 10-
Q within 21 days from the time ATSI reaches an agreement on a
transaction as previously announced on January 13, 2003.

ATSI had previously provided guidance that the year ended July
31, 2002 was anticipated to produce, excluding GlobalScape
results, a 40% increase in revenues from $35.9 million to
approximately $50.7 million for fiscal 2002. The company
anticipates that the 1st quarter of 2003 ended 10-31-02 will
produce revenues of approximately $7.3 million. Expenses for the
quarter are expected to be approximately $5.9 million, but gross
margins are likely to remain constant at 19% compared to the
first quarter 2001.

ATSI Communications, Inc. is an emerging international carrier
serving the rapidly expanding niche markets in and between Latin
America and the United States, primarily Mexico. The Company's
borderless strategy includes the deployment of a "next
generation" network for more efficient and cost effective service
offerings of domestic and international voice, data and Internet.
ATSI has clear advantages over the competition through its
corporate framework consisting of unique licenses,
interconnection and service agreements, network footprint, and
extensive retail distribution.

CONTACT:  The Eversull Group for ATSI Communications, Inc.
          Jack Eversull, 972/991-1672
          jack@theeversullgroup.com
          URL: www.atsi.net


CORPORACION DURANGO: S&P Lowers Corporate Credit Rating to 'SD'
---------------------------------------------------------------
Standard & Poor's Ratings Services said Thursday it lowered its
local and foreign currency corporate credit ratings on Mexican
packaging company Corporacion Durango S.A. de C.V. to 'SD' from
'CC' following missed interest payments on the company's US$175
million 13.75% senior notes due in 2009. The rating on these
notes was lowered to 'D'.

The ratings on the other rated bonds remain at 'CC' due to high
uncertainty regarding the timely payment of their coupons. The
company's debt totaled US$836.41 million, as of September 2002.

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

Corporacion Durango is working jointly with Rothschild Inc. and
PricewaterhouseCoopers to evaluate debt-restructuring
alternatives.

ANALYST: Beatriz Coll, Mexico City (52) 55-5279-2016


GRUPO MEXICO: Dodges Debt Bullet With $225M Barclay's Loan
----------------------------------------------------------
Grupo Mexico SA, which is looking to raise money to reinforce its
ailing financial structure and improve its operations, obtained a
US$225-million loan from Barclay's Capital. Citing a company
filing with the Mexican Stock Exchange, Dow Jones reports that
the Mexican copper mining and railroad concern obtained the loan
through its railways subsidiaries GFM Servicios Administrativos
SA and Ferrocarril Mexicano SA.

The loan, with a one-year maturity, will be refinanced over 10
years through another debt placement, Grupo Mexico said. At the
end of September, Grupo Mexico had US$2.4 billion in net
debt. In December, the Company reached an agreement to
restructure US$879 million in bank and bond debt.

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


SATMEX: Updates Details on Satmex 6 Launch
------------------------------------------
Satelites Mexicanos, S.A. de C.V. (Satmex), the leading satellite
services provider for Latin America, announced Thursday ongoing
progress in the construction of what will be the most powerful
communications satellite ever launched into orbit over the
Americas.

Satmex 6, with 36 C Band and 24 Ku Band transponders, will have
continental coverage reaching from the northern United States to
southern Argentina, with strong demand expected for video, data
and voice transmission services.

The latest advances available in satellite nanoelectronics and
communications technology have been incorporated into the
construction process, carried out in Palo Alto, California, by
Space Systems/Loral. The goal is to reach optimal performance
once the satellite is delivered into orbit. Furthermore,
improvements have been added and the redundancy of some
subsystems has been enhanced, increasing the reliability of its
operations. As a result, the launch is now expected to take place
during the third quarter of this year.

Lauro Gonzalez, CEO of Satmex, commented: "Satellites cannot be
repaired once they are launched into space. Given the importance
of Satmex 6 to our business plan and to the development of the
regional telecommunication market, we will not sacrifice quality
for timing. Pre-launch, we will ensure that all necessary tests
and, as needed, adjustments are completed to our satisfaction. We
have very high expectations for this satellite and maximum
performance levels are critical," concluded Mr. Gonzalez.

Among other analyses being carried out on Satmex 6 is the vacuum
chamber test. Conditions that the satellite will face in space
are simulated, including extreme temperatures ranging from -180.
C to + 85. C.

Weighing in at 5.6 tons, Satmex 6 will be launched from Kourou,
French Guiana, by Arianespace of France. The Ariane 5G rocket
will reach a speed of over 28 thousand kilometers per hour to
escape the earth's atmosphere and place Satmex 6 into its
transfer orbit, which will then take it up to 36 thousand
kilometers above the earth.

With a useful life in excess of 15 years, Satmex 6 will be the
third satellite in the Satmex fleet.

About Satmex

Satmex, the leading Mexican satellite operator in the Americas,
owns and operates a satellite system through which it offers
broadcast, telephone and telecommunications services to 39
countries in the region. The Satmex fleet also helps develop
rural areas by offering distance learning and rural telephony
services. And, through its business partners in the NAFTA region
and Latin America, Satmex provides high-speed connectivity to
ISPs and Digital Broadcast Services (DBS), thus contributing to
the integration of Latin America with the rest of the Continent.
Satmex is ISO 9001 certified.

Satmex is a member of the Loral Global Alliance and offers its
customers the advantages of a worldwide network of satellite
capacity, providing global satellite solutions to the needs and
requirements of the Americas. For more information, please visit
the Satmex web site at www.satmex.com

About Loral

Loral Space & Communications is a high technology company that
concentrates primarily on satellite-based services and satellite
manufacturing, including broadcast transponder leasing and value
added services, domestic and international corporate data
networks, broadband data transmission and Internet services. For
more information, visit Loral's web site at www.loral.com

CONTACT:  Cynthia Pelini, + 5255 5201 0808
          Kristi Etchberger, + 5255 5201 0804


SAVIA: Seminis Reports Improving Fiscal 2002 Results
----------------------------------------------------

FINANCIAL HIGHLIGHTS INCLUDE:

Net income reaches US$16.1 million in 2002.

- Adjusted EBITDA improves 18.7% to US$85.1 million from a year
ago.
- Debt reduced by US$57.6 million; successfully extends credit
facility for one year.

Seminis Inc., the world's largest developer, producer and
marketer of vegetable and fruit seeds, reported a net income of
US$16.1 million for the year ended September 30, 2002. This
compares to a net loss of US$134.5 million for fiscal year 2001.

After taking into account dividend accruals of US$14.5 million as
well as US$4.2 million of contingently payable dividends if the
Exchange Agreement (announced August 1, 2002) reached with its
majority shareholder Savia is not consummated, the net loss per
common share available to common shareholders was US$0.04 per
share. Had the exchange transaction between Savia and Seminis
been completed, net income available for common shareholders
would have been US$1.6 million or US$0.02 per share in fiscal
year 2002. This compares to a net loss available to common
shareholders of US$152.8 million or US$2.55 per share in fiscal
year 2001.

"The progress we are reporting today confirms that the strategic
business plan and optimisation measures implemented by management
during the previous two years have borne fruit both operationally
and financially," said Seminis Chairman and Chief Executive
Officer, Mr. Alfonso Romo. "During fiscal year 2002, and for the
seventh consecutive quarter, the company delivered on its promise
to increase sales, improve margins and contain expenses." He
added: "Now we will focus on innovative strategies that allow the
company to capture value in the food chain, consolidating
Seminis' future value".

Total sales for fiscal year 2002 increased 0.6% to US$452.6
million compared with US$449.9 million during the same period
last year. Fiscal year 2002 total sales were impacted negatively
by US$4.8 million as a result of currency fluctuations. In
constant dollars and excluding sales related to non-core and
divested businesses, net seed sales increased 4.0% to US$437.2
million.

"We have improved our pricing policy and new product introduction
process and continue to simplify our overall product portfolio,"
said Seminis President and Chief Operating Officer, Mr. Eugenio
Najera. "In addition to our traditional seed business, we are
currently implementing different programs that will allow the
company to grow beyond our historic customer base. This
innovative strategy will allow us to capture value that we create
throughout the food distribution chain," he said.

Gross profit for fiscal year 2002 increased to 62.0% of sales or
US$280.7 million, from 61.4% or US$276.0 million during the same
period last year, excluding US$58.2 million of non-recurring
inventory write downs in fiscal year 2001.

Total operating expenses for fiscal year 2002 were reduced by
13.0% to US$236.2 million, from US$271.6 million, which includes
a US$12.0 million severance provision, US$7.6 in expenses related
to global restructuring and US$2.6 in restricted share awards in
fiscal year 2001 and US$0.8 in charges related to global
restructuring and US$7.3 of restricted share awards in fiscal
year 2002. This reduction was partially attributable to
optimisation initiatives that reduce administrative and overhead
costs.

Operating income for fiscal year 2002 increased to US$52.6
million, up 18.2% from US$26.6 million for fiscal year 2001
excluding the aforementioned non- recurring expenses.

EBITDA adjusted for the aforementioned charges improved 18.7% for
the year to US$85.1 million from a year ago, representing 18.8%
of sales.

During the twelve months ended September 30, 2002, the company
reduced its total outstanding debt by US$57.6 million or 17.1%
from a year ago. Total debt outstanding as of September 30, 2002
was US$278.5 million. Seminis successfully negotiated a one-year
extension of its US$224.7 million outstanding syndicated credit
facility with its lenders. This amendment extends the final
maturity of the credit facility to December 31, 2003.

On December 13, 2002, Savia, S.A. de C.V., Seminis' majority
stockholder, announced that it signed a letter of intent with Fox
Paine and Company, LLC, a San Francisco private equity firm,
under which Fox Paine and certain Savia related parties will
acquire all of the outstanding shares of Seminis, Inc. In
response to the proposed transaction, Seminis formed a special
committee of the independent directors to evaluate the proposed
transaction and its fairness and to make a recommendation to the
full Board of Directors.

Details of the Exchange Agreement between Savia and Seminis can
be found in the 10-K filing for fiscal year 2002.

- Final results for the fourth quarter ending September 30, 2002
Net income for the fourth quarter of fiscal year 2002 was US$5.5
million compared to a loss of US$15.4 million during the same
quarter last year. As a result of accrued dividend obligations of
US$4.8 million on the preferred class B and C stock and
additional paid in capital, the company posted a net profit
available to common stockholders of US$0.7 million, or US$0.01
per share. This compares to a loss available to common
shareholders of US$20.2 million, or US$0.34 per share, during the
same quarter last year.

Net sales for the fourth quarter were US$113.7 million compared
to US$110.7 million for the same quarter last year representing
an increase of 2.7%.

Gross profit increased to US$70.1 million or 61.7% of sales
compared to US$67.2 million or 60.7% for the same quarter last
year.

Operating expenses for the reported quarter of fiscal 2002 were
reduced by US$5.4 million, or 8.4%, to US$58.7 million, from
US$64.1 million.

Operating income in the fourth quarter was US$11.4 million
compared to US$3.1 million for the same quarter last year.
Operating income in the reported quarter increased by US$8.3
million, or 267.6%.

EBITDA (Operating income/loss with depreciation and amortisation
added back) for the quarter was US$19.9 million compared to
US$14.5 million for the same quarter last year, an improvement of
37.4%.

- About Seminis

Seminis Inc. is the largest developer, producer and marketer of
vegetable seeds in the world. 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.

To see financial statements: http://bankrupt.com/misc/SEMINIS.htm

CONTACT:  SEMINIS
          Patrick Turner, +1-805-918-2201
          Email: patrick.turner@seminis.com

          Enrique Osorio, +1-805-918-2233
          Email: enrique.osorio@seminis.com
          Web site: http://www.seminis.com/



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

BWIA: Shareholders' Counsel Forecasts `May Be The Next Enron'
------------------------------------------------------------
Sudeesh Shivarattan, legal counselor of BWIA shareholders who
have file a case against the carrier believes that BWIA could
well become the next Enron, relates The Trinidad Guardian.

Mr. Shivarattan added, "There are a lot of open-ended issues
which creates suspicions."

The shareholders have filed a lawsuit against the airline in the
Port-of-Spain High Court on Dec 30 last year, seeking to regain
millions of dollars invested in BWIA's December 2000 Initial
Public Offering.

"Maybe this is the first time such an action has been taken under
the Companies Act," Mr. Shivarattan said, describing the case as
a "shareholder remedy action."

He explained that under the Companies Act, Chap. 81.01, there are
provisions for investors to question the operations of a company
and seek compensation for failing investments.

"We are asking that BWIA buy out the shareholders at the early
valuation we know of BWIA share at the IPO (Initial Public
Offering) values of TT$7.85 cents per share," Mr. Shivarattan
said, speaking from Toronto. "The shares have rapidly fallen and
right now they cannot even trade them."

The shareholders have a lot of questions about the Company's 2000
prospectus for its IPO, which promised group profits after
taxation of US$57,337,000 in 2001 and US$72,240,000 in 2002.

The report said that although the September 11 attacks had not
been foreseen during the 2002 prospectus was made, Mr.
Shivarattan had noted that the airline had been in financial
trouble then.

In 1998, the Company posted US$9.037 billion in profits on total
revenue of US$225.1 billion with total operating costs on
US$214.2 billion. In the following year, profits dropped to
US$3.68 billion despite an increase in the revenue at US$239.04
billion, with operating costs at US$237.05 billion. In 2000, net
profits went further down to US$1.17 billion although total
revenue went up to US$256.84 billion while operating costs
increased slightly to US$256.27 billion.

Mr. Shivarattan said, "We want to know whether the Company
really, in fact, made a substantial profit in trading in 1998 or
whether that profit came from somewhere else."

According to the report, about 60 per cent of the 12 million
shares BWIA, issued in the IPO in December 2000 were bought at
TT7.85 (US$1.50) per share, based on the figures in the
prospectus.

The 12 million shares represented 27 per cent of BWIA's ordinary
share capital and voting rights and 23 per cent of its issued
share capital.

The shares were undersubscribed by 40 percent. As such, the
Company raised only $57million (US$9 million). The target was $95
million (US$15 million).

BWIA corporate communications director Clint Williams refused to
on comment on the case.

In the lawsuit, the shareholders wanted to know why the value of
the common shares in BWIA fall from the high of TT$7.85 in
December 2000 to TT$2.80 within six months and then to
approximately TT$2.25 at present, and what was principally
responsible for the profit of US $9,000,000 in 1998 and the
reason why drop to only US$3,700,000 in 1999.

They are also asking what the basis for promising a net profit of
US $9.2 million for 2001 in a BWIA statement issued on January 2,
2001 was.

Furthermore, they are asking why BWIA Chief Executive Officer
Aleong maintain that December 2000 was the best time for the IPO
launch and what the amount of profit or loss in 2000 was.

They shareholders also want to know whether BWIA has borrowed any
money. If it has, the shareholders want to know how much, why,
from whom and at what rates of interest they are, and if there
are any outstanding loans and how much. They are also questioning
whether these loans in the best interest of BWIA and its
shareholders.

Earlier report show that the shareholders are demanding to know
why the IPO in December 2000 of BWIA was not underwritten, and
whether it was able to fulfil the purpose for which the proceeds
of the IPO were intended, notwithstanding that it was grossly
undersubscribed.

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)


BWIA: Minister Assures Lawsuit Won't Affect State Loan
------------------------------------------------------
Trinidad and Tobago Trade Minister Ken Valley said that the
lawsuit BWIA is facing would not affect the state's loan to the
airline. The state would watch the progress of the legal action
"with interest", as quoted by the Trinidad Guardian. Mr. Valley
would not reveal whether the government felt that the allegations
made by disgruntled shareholders were valid, said the report.

Mr. Valley met with the airlines executives on Tuesday to discuss
the BWIA's progress on the US$1.4 million the airline has to save
monthly to qualify itself for the state loan. The state, which
owns 33.5 percent of BWIA, had set the savings deadline for the
airline to start saving on January 30.

The government will be accepting BWIA's strategic plan presented.
The plan includes measures the airline will implement in order to
save the targeted US$1.4 million. Earlier reports show that BWIA
had been asking the unions representing its workers to agree to
concessions to help the airline meet the targeted savings plan .

However, Mr. Valley did not say if the airline had gained the
requested concessions, or found other ways of saving money. He
only said that the airline's board approved the plan.

BWIA corporate communications director Clint Williams said that
they have presented all their various alternatives to the
minister.



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

URUGUAYAN BANKS: McKinsey To Advise Government On Asset Sale
-------------------------------------------------------------
Uruguay's government, which is looking to sell assets belonging
to three suspended local banks, has chosen US-based consulting
firm McKinsey to advise it on the upcoming operation, reports
Business News Americas.

The banks Banco Comercial, Montevideo and Caja Obrera were
intervened and suspended by the government in July and August
last year due to liquidity problems. Just recently, authorities
decided to merge the three banks into a single bank, El Nuevo
Banco Comercial. The newly formed bank is expected to open its
doors in mid-February with 750 employees.

The best assets of the three banks will be transferred to El
Nuevo Banco Comercial, while the remaining assets will be sold
off between January 24 and 31. The government also holds McKinsey
responsible for choosing the best talents (from the three defunct
banks) who would compose the 750-workforce when the new bank
reopens.

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



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

EDC: Late Bill Payers Will See No Change in Service
---------------------------------------------------
Clients of CA Electricidad de Caracas (EDC), whose ability to pay
its bills has been hampered by the nationwide strike now in it
46th day, don't have to worry if they don't get to pay their
bills on time.

The Venezuelan electricity utility, a unit of AES Corp., said it
won't be cutting service to users with unpaid bills. According to
EDC spokesman Juan Jose Azpurua, the Company is implementing a
contingency plan to cope with late payments.

Azpurua didn't say what impact the strike would have on the
Company's earnings. EDC is due to report fourth-quarter earnings
later this month.

International ratings agency Fitch recently downgraded the senior
unsecured foreign currency ratings of EDC to 'CCC+' from 'B' as
well as the Company's unsecured local currency rating to 'CCC+'
from 'BB-'. The ratings have been assigned with negative
outlooks.

The downgrades came after Fitch lowered the long-term foreign
currency rating of the Bolivarian Republic of Venezuela to 'CCC+'
from 'B' and its long-term local currency (Venezuelan bolivar)
rating to 'CCC' from 'B-'. The ratings remain on negative rating
outlook. The sovereign actions reflect pressures on government
finances and international reserves.

CONTACT:  AES VENEZUELA
          Avenida Rio de Janeiro
          Qta. Tres Pinos
          Chuao, VE-1061 Caracas, Venezuela
          Phone: +58 14 929 2552
          Fax: +58 2 9937296
          E-mail: venezuela@aes.org
          Contact: Elmar Leal, Chairman
          Juan Font, Vice Chairman

          AES CORP
          Investor Relations
          Kenneth R. Woodcock, 703/522-1315
          www.investing@aes.com
          Website: http://www.aesc.com/



FERTINITRO FINANCE: Fitch Cuts to 'CC' on Debt Coverage Concerns
----------------------------------------------------------------
Fitch Ratings has lowered the debt rating of FertiNitro Finance
Inc.'s (FertiNitro) US$250 million 8.29% secured bonds due 2020
to 'CC' from 'CCC'. The rating remains on Rating Watch Negative.
Without a definitive source of external liquidity, Fitch believes
that default on the FertiNitro bonds is probable in the near
term.

The rating downgrade reflects the higher degree of uncertainty in
FertiNitro's ability to fully cover its upcoming US$44 million
debt service payment in April. Since late last year, FertiNitro
has been in discussions with its lenders and sponsors on
alternatives to address the project's worsening financial
situation, which has greatly diminished the project's liquidity.
In addition, the ongoing national strike in Venezuela that has
significantly curtailed PDVSA's operations has further eroded
FertiNitro's cash balances. FertiNitro relies on PDVSA for its
gas feedstock. Due to the prolonged national strike, FertiNitro
has been shutdown since mid-December.

As previously mentioned in the Fitch press release dated November
12, 2002, FertiNitro requires external liquidity to cover its
scheduled debt payment, capital expenditures related to critical
repairs, and the costs associated with an extended outage for the
repairs. Furthermore, due to unsuccessful negotiations between
FertiNitro and the EPC Contractor on the warranty-related costs,
the situation has proceeded to arbitration. Since November, both
the sponsors and lenders have been evaluating FertiNitro's
situation. Fitch believes external financial support from the
sponsors combined with relief from lenders to be critical in
addressing FertiNitro's distressed liquidity position.

FertiNitro is owned 35% by a Koch Industries, Inc. subsidiary,
35% by Petroquimica de Venezuela, S.A. (Pequiven), a wholly owned
subsidiary of Petroleos de Venezuela S.A. (PDVSA), 20% by a
Snamprogetti S.p.A. subsidiary, and 10% by a Cerveceria Polar,
C.A. (Polar) subsidiary.

CONTACT:  Fitch Ratings
          Caren Y. Chang, 312/368-3151,
          John W. Kunkle, CFA 312/606-2329,
          Joy Guttschow, 312/368-3140, Chicago;
          Alejandro Bertuol, 212/908-0393, New York.
          Media Relations:
          James Jockle, 212/908-0547, New York.


SIDOR: Bleak Future Spurs Concern Among Mexican Partners
--------------------------------------------------------
Mexican steelmakers Hylsa and Tamsa, partners in Venezuelan
steelmaker Siderurgica del Orinoco (Sidor), are getting
apprehensive about the Ciudad Guayana-based company's future.

"Sidor is selling its stocks, and that can't go on for ever," one
Hylsa executive was quoted as saying in the Mexican press.

At present, Sidor is operating using 40% of its normal natural
gas supplies due to the country's seven-week-old general strike,
a company official told Business News Americas.

"We normally use 200 million cubic feet of gas a day, but now
we're receiving just 40% of that amount," the official said.

Given the gas shortage, a result of the strike severely
curtailing operations of state oil giant PDVSA, Sidor had to
partially suspend operations on December 20.

"We're operating the direct reduced [iron] plant at 40% of
capacity but the cold-rolled and hot-rolled mills are operating
at full capacity," the spokesperson said.

The official assured that relations with long-term clients have
not been impacted by the problems and all contracts have been
fulfilled to date.

Sidor was largely privatized at the end of 1997, when the
Amazonia consortium made up of Latin American steel companies
Sivensa (Venezuela), Siderar (Argentina), Usiminas (Brazil),
Tamsa and Hylsamex (parent of Hylsa) bought a 70% stake in the
firm for US$1.2 billion.

Venezuela's state heavy industries holding company CVG, which
held on to the remaining 30%, was to have increased its stake to
42% last year under a debt capitalization plan, which involves
reducing Sidor's debts from US$1.45 billion to US$750 million.
The plan was announced by President Hugo Chavez in July last year
but the Company official said CVG has still not upped its stake
to 42%.

The fate of Sidor's refinancing and debt restructuring plan was
"not clear" as the government has been focusing on other issues.

CONTACT:  SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Venezuela
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page: www.sidor.com.ve/


* S&P Comments on Venezuelan Oil Crisis
----------------------------------------------
Standard & Poor's Ratings Services has recently taken several
negative ratings actions on credits linked to Venezuela to
reflect the devastating effects of the Venezuelan national strike
and oil crisis that has virtually shut down the country's oil
production and drastically reduced export earnings. Further
ratings actions can be expected if the Venezuelan oil industry
crisis is not resolved shortly and in the context of an easing of
the political stalemate.

Standard & Poor's credit analysts Bruce Schwartz and Terry Pratt
from the Corporate oil and gas group, Nancy Chu from Structured
Finance, and Laura Feinland Katz, Jane Eddy, and Richard Francis
from the Sovereign group will host a teleconference on Friday,
Jan. 17 at 10:30 a.m. EST to discuss the continuing Venezuelan
oil crisis and its effect on various credit ratings. During the
teleconference, analysts will provide an update on the broad
effects of the Venezuelan strike, the prospects for various
Venezuelan oil-backed deals, as well as U.S. and Caribbean
refiners dependent on Venezuelan source crude.

Standard & Poor's has downgraded its rating on Petroleos de
Venezuela S.A. (PDVSA) Finance notes (backed by existing and
future receivables generated from Venezuelan crude oil exports),
Petrozuata Finance notes (Venezuelan heavy oil project), and
placed Lyondell Chemical on CreditWatch negative. Standard &
Poor's further downgraded its ratings on U.S. refining and
marketing company PDV America Inc. (100% owned by PDVSA) and its
indirect, wholly-owned subsidiary CITGO Petroleum Corp. Standard
& Poor's also recently affirmed its 'CCC+' sovereign foreign
currency rating and negative outlook on the Bolivarian Republic
of Venezuela along with its 'CCC+' foreign currency rating on
PDVSA.

"We have been warning investors for years of the high exposure to
Venezuelan political risk that these credits faced," noted
Standard & Poor's credit analyst Laura Feinland Katz. "The
current course of events, including the extended nature of the
oil industry strike and the impact on export volumes, is
unprecedented." Standard & Poor's believes that the credit rating
of any company or transaction that is highly dependent on a
single emerging market should include a rigorous analysis on
long-term country risk assessment, with a particular focus on
political interference.

The Venezuelan oil strike has strained the financial resources of
refiners heavily dependent on Venezuelan crude production that
has dropped to less than 500,000 barrels per day from about 2.8
million barrels per day. "While refiners have been able to
continue operations by sourcing alternative sources of crude, the
margins of most companies are being pressured by reduced runs and
tighter sour crude discounts," said Standard & Poor's credit
analyst Bruce Schwartz.

The ongoing crisis derives from general civil unrest in an
environment of economic collapse, rising unemployment, and rising
inflation. "The strike impact on PDVSA is of course very direct
and has been precipitated to some degree by government policies
toward PDVSA's management," added Mr. Schwartz.

All of the high-profile heavy oil projects in Venezuela,
including Petrozuata, Cerro Negro, Syncor, and to a lesser
extent, Hamaca, have also been greatly affected by the strike
action. These projects, which are sponsored jointly by various
oil majors and PVDSA, produce heavy oil from Orinoco belt fields
and process it at upgraders at the coast. The heavy oil projects
have shut down all operations due to a lack of feedstocks at the
upgrader that are provided by PDVSA or third parties that require
inputs from PDVSA.

ANALYSTS:  Laura Feinland Katz, New York (1) 212-438-7893
           Bruce Schwartz, CFA, New York (1) 212-438-7809



               ***********


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 2003.  All rights reserved.  ISSN 1529-2746.

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* * * End of Transmission * * *