/raid1/www/Hosts/bankrupt/TCRLA_Public/030123.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

           Thursday, January 23, 2003, Vol. 4, Issue 16

                           Headlines



A R G E N T I N A

ACINDAR: Default Conditions Persist, Fitch Confirms D Rating
* Argentina May Receive Bridge Loan From Spain To Pay Debts


B E R M U D A

TYCO INTERNATIONAL: Executives' Bonuses Delayed for Cash Flow


B O L I V I A

SEMAPA: Government Presents Three Bailout Plans


B R A Z I L

BCP/BSE: BSE Seen As Strategic For America Movil
CEMAR: Feds to Review Takeover Options At February Seminar
TELESP CELULAR: TCO Shareholders Oppose Acquisition Procedures
UOL: Not Closing Miami Office
USIMINAS: Better Sales, Prices Prompt 56% Jump In 2002 EBITDA


C H I L E

SEGUROS RENTA: Poor Risk Rating Threatens Annuities License
TELEFONICA CTC: VTR Wins Again in Appeals Court; $13M Awareded


C O L O M B I A

SEVEN SEAS: Seeks Court Approval to Convert Case to Chapter 11
SEVEN SEAS: Section 341(a) Meeting Set for February 11
SEVEN SEAS: US Trustee Appoints Ben Floyd as Chapter 11 Trustee


M E X I C O

ALESTRA: $80M Injection Hinges On Successful Restructuring
GRUPO MEXICO: Threatens Complete Closure If Strike Persists
PEMEX: Billions Required to Prevent Financial Crash
SANLUIS CORPORACION: Concludes Debt Restructuring Process
SANLUIS CORPORACION: Fitch Places 'B-/CCC+' On Restructured Debt


T R I N I D A D   &   T O B A G O

BWIA: Seeking Further Concessions As Savings Target Date Looms


U R U G U A Y

BANCO DE CREDITO: Suspension Extended Until February 7


V E N E Z U E L A

MANPA: Defers Payments To Suppliers Due To Cash Flow Problems
PDVSA FINANCE: Moody's Cuts Ratings To Caa1 From B3
PDVSA: Foreign, Local Currency Issuer Dropped To Caa1
* Continuing Political Upheaval Leads to Moody's Cuts
* Fitch Anticipates Continuing Political Impasse in Venezuela


    - - - - - - - - - - -

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

ACINDAR: Default Conditions Persist, Fitch Confirms D Rating
------------------------------------------------------------
Fitch confirmed its D(arg) rating on US$100 million of bonds
issued by Argentine long products steelmaker Acindar, Business
News Americas reports, citing a Fitch statement. Acindar
defaulted on interest payments on the bond in February and August
last year after the Company declared in December 2001 that it was
freezing all debt repayments.

Acindar, which is controlled by the Acevedo family and Brazilian
steelmaker Belgo-Mineira, has suffered from the slump in the
Argentine construction sector, while its foreign debt was
impacted by the devaluation of the local peso currency last year.

At the end of September 2002, the Company's debts stood at
US$1.16 billion, excluding a US$60-million convertible debenture
issue. Of the total, US$108 million had been converted into pesos
and the rest was dollar-denominated.

CONTACTS:  ACINDAR SA
           Jose I. Giraudo, Investor Relations Manager
           Phone: (5411) 4719 8674

           Andrea Dala, Investor Relations Officer
           Phone: (5411) 4719 8672


* Argentina May Receive Bridge Loan From Spain To Pay Debts
-----------------------------------------------------------
Spain may grant a bridge loan to Argentina to allow it to pay
US$845 million due to the Inter-American Development Bank,
reports local daily Clarin, without revealing its source of the
information. This may help Argentina from defaulting on more debt
payments until the International Monetary Fund signs a loan
agreement today.

The report indicates that the country may make a payment of
US$726 million to the World Bank on Wednesday.

The IMF accord would allow the country to defer payment on US$6.6
billion in debt due to the fund and US$4.4 billion due to the
World Bank and the IADB.

In related news, the World Bank said it may grant the country a
US$1 billion loan for family and education assistance after the
deferral plan receives the approval of the IMF.

The country has lost its credit lines to multilateral lenders,
except for the IMF, after defaulting on a record US$95 million in
debt on December 2001. Argentina officially entered default
status with the World Bank in November and with the IADB on
Wednesday last week.



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

TYCO INTERNATIONAL: Executives' Bonuses Delayed for Cash Flow
-----------------------------------------------
Bermuda-based Tyco International, Ltd. has delayed paying bonuses
to its executives, the Associated Press reports. The move is seen
as a way to improve cash flow figures when the Company reports
its first fiscal earnings. An unnamed source close to the
situation refuted rumors saying that the Company has no intention
of deceiving investors by inflating figures in its earnings
report. Cash flow has always been an issue for Tyco.

The source explained that the Company's new chief executive
officer Edward Breen did not want to award bonuses to anyone who
may have had a hand in the reported improper manipulation in the
Company's books. A recently concluded internal investigation on
the Company's books revealed no significant fraud, but final
judgment on the situation may be withheld until the Securities
and Exchange Commission completes its own forensic investigation
on the said books.

Tyco spokesperson Gary Holmes offered no comments on the issue.

The Company is facing US$5.8 billion in debt coming due next
month, but just received a US$1.5 billion credit line from
bankers. In order to cope up with its financial obligations, the
Company has sold convertible bonds worth US$4.25 million
recently.

Last year, the Company posted about US$36 billion in revenues.

Tyco shares were down 87 cents to US$17 in late morning trading
on the New York Stock Exchange, said AP.

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 O L I V I A
=============

SEMAPA: Government Presents Three Bailout Plans
-----------------------------------------------
Cochabamba water utility, SEMAPA, may be a step closer to an
US$18.5-million dollar loan from the Inter-American Development
Bank, after the Bolivian government presented three bailout plans
for the Company. Earlier reports suggested that the country's
finance ministry refused to grant a public credit certificate to
SEMAPA. The refusal hindered the Company's chances of earning a
loan from the IADB. Business News Americas reports that basic
services deputy minister Jose Barragan presented three solutions
to clear the Company.

The first proposal was that the government would issue a decree
clearing SEMAPA of all bad credit if the utility submits a
refinancing plan. SEMAPA has until March 1 to clear its credit
rating to qualify for IADB financing.

Another was the assumption of SEMAPA's debt by a third party,
such as the Cochabamba municipal government. The last one was to
have SEMAPA draw up a financial restructuring plan.

SEMAPA's proponents chose the first proposal as "viable" and
urged the government to push it forward in 48 hours.



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

BCP/BSE: BSE Seen As Strategic For America Movil
------------------------------------------------
Local media have long singled out Telecom Americas, controlled by
Mexico's America Movil, as buying its way into Sao Paulo through
mobile operator BCP, recalls Business News Americas. But analysts
suggest a purchase of BSE, BCP's sister company, could be an
advantageous strategy for America Movil.

For one, BSE would make a complimentary geographical fit for
America Movil by extending its presence from Brazil's
southernmost state of Rio Grande do Sul all the way up the coast
to the northeastern region where BSE operates: the states of
Alagoas, Rio Grande do Norte, Ceara, Piaui, and Pernambuco. Just
south of these states are the states of Bahia and Sergipe - a
region covered by one of America Movil's three new PCS licenses,
Unibanco analyst Raphael Biderman said.

Furthermore, BSE had a net debt load of only BRL2.25 billion
(US$650 million) at the end of September last year, while BCP had
BRL7.1 billion in the same period. Biderman said that BCP's
largely dollar-denominated debt has been hit hard by depreciation
over the past few years.

Bellsouth and Verbier Communications, a unit of local Banco Safra
controls both BCP and BSE.

CONTACT:  BCP S.A.
          Rua Fl›rida, 1970 4o andar
          Sao Paulo - SP
          Tel: 55 11 5509-6428
          Fax: 55 11 5509-6257
          Home Page: http://www.bcp.com.br

          BELLSOUTH CORPORATION
          1155 Peachtree St. NE
          Atlanta, GA 30309-3610
          Phone: 404-249-2000
          Fax: 404-249-5599
          Home Page: http://www.bellsouth.com/
          Contacts:
          Investor Relations
          Phone (US):    800.241.3419
          Fax: 404.249.2060
          E-mail: investor@bellsouth.com


CEMAR: Feds to Review Takeover Options At February Seminar
----------------------------------------------------------
Brazil's urban utilities workers union Stiu-MA has scheduled a
seminar for early February to discuss options for the federal
government to take control of the state power utility Cemar,
Business News Americas reports, citing Stiu-MA secretary general
Vaner Almeida.

Stiu-MA has filed lawsuits with Brazilian Courts in order to
block power regulator Aneel's plan to transfer Cemar to a new
private owner, after what it refers to as a "disastrous"
experiment with US-based PPL International. PPL acquired 90% of
the shares in the Company in June 2000 but walked away in August
2002 after failing to win a price hike from Aneel.

According to the union, Cemar's debt jumped from BRL200 million
to BRL800 million, while service has deteriorated.

The union's lawsuits have been accepted by the court and up to
now, Aneel has not contested the court decisions, Almeida said.
But he is not ruling out the possibility of an appeal by the
regulator.

Meanwhile, the new government is likely to have a hard time
finding a solution to the problem. The new administration, which
has ruled out further privatization in the electric power sector,
may be forced to think again as it does not have the cash to
rescue all the troubled electric power distributors that remain
in state hands.

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


TELESP CELULAR: TCO Shareholders Oppose Acquisition Procedures
--------------------------------------------------------------
Brasilcel's acquisition of Brazilian mobile operator Tele Centro
Oeste (TCO) has suffered a setback. Local daily Valor Economico
reports that the minority shareholders of TCO have raised
arguments regarding the preferential share swap with mobile
holding Telesp Celular Participacoes (TCP) as part of the
acquisition.

Brasilcel announced last week that it will carry out the
acquisition in three steps. The first involves a purchase of
BRL1.4 billion (US$420mn) worth of common stock in TCO from
Fixcel, thereby obtaining a 61.1% stake in TCO.

The second and third steps in the acquisition involve a public
offering to purchase remaining common stock held on the market,
followed by the conversion of TCO preferred stock to TCP shares.
These last two steps, which would add another BRL2 billion to the
acquisition cost, bringing it up to BRL3.4 billion, elicited
objections from TCO shareholders.

According to the disgruntled investors, Brasilcel is paying about
225% more per share for ordinary shares compared to preferential
shares.

Waldir Correa, the president of Brazil's national capital markets
investors association (Animec), told Valor Economico that
generally only 20-30% more is paid for voting shares.

Citing local analysts, Business News Americas reveals that the
rate offered for minority shares is very low at 1.27 TCP shares
for each TCO share.

CONTACT:  Telesp Celular Participacoes S.A.
          Edson Alves Menini, (55 11) 3059-7531


UOL: Not Closing Miami Office
-----------------------------
An executive from Brazilian and regional Internet service and web
content provider UOL (www.uol.com) denied that its Miami-based US
office is about to close down. Speculation regarding the imminent
closure follow the downsizing of its workforce in Miami to just
only two employees.

"[The Miami office] did not shut down and will not shut down,"
UOL advertising and e-commerce manager Alexandre Hohagen said
without explaining the reduction.

According to Business News Americas, the Company began to reduce
the number of its employees in December, but only revealed the
action this week. Some of the Miami employees, including the
international sales force and its manager, will be transferred to
UOL's headquarters in Sao Paulo.

Last year, UOL executives repeatedly claimed that the Company's
international operations, Miami included, would reach breakeven
by year-end. These affirmations came despite widening losses at
its international operations. In the first nine-month period in
2002, UOL reported a loss of BRL240 million (US$64.8 million), an
84.7% increase from the figure posted in the same period in 2001.

Outside of Brazil, UOL operates in Argentina, Chile, Colombia,
Venezuela, Mexico and the US. The Company's shareholders are
Grupo Folha, Grupo Abril and a private investor group headed by
investment bank Morgan Stanley.


USIMINAS: Better Sales, Prices Prompt 56% Jump In 2002 EBITDA
-------------------------------------------------------------
Brazilian flat steelmaker Usiminas posted an EBITDA of BRL2.4
billion (US$727 million) in 2002, reports Business News Americas,
citing the Usiminas' preliminary results. The consolidated
figures, released Tuesday, included the Company's flat
steelmaking subsidiary, Cosipa, based in Sao Paulo.

The results showed that EBITDA grew by 56% compared to that in
2001. The Company's consolidated net revenues went up by 37% to
BRL6.7 billion in the same annual comparison.

The increase was attributed to higher sales volumes and a rise in
the international prices. The favorable combination allowed the
Company to reduce consolidated gross debt to US$2.7 billion at
the end of last year from US$3.4 billion at the end of 2001.

Business News Americas reports that the Company has increased
steel production by 19.3% compared to 2001. The 2002 production
totaled 8.45Mt, to which Cosipa contributed 3.8Mt, showing a
production increase of 57.4% from the previous year.

Last year, consolidated export volumes went up to 2.31Mt, almost
twice 2001's figures. About 30% of the Company's total sales
volume corresponds to exported steel, while domestic sales of
galvanized products increased 19% to 476,000t last year.

Rony Stefano, a steel analyst for investment bank BBV, told
Business News Americas, "It is a positive result in terms of
sales volume. Usiminas also took part of the market share of (Rio
de Janeiro-based flat steelmaker) CSN which directed more of its
output to exports."

CSN, however, according to Mr. Stefano, has proved itself to be a
"more agile" competitor, posting a consolidated Ebitda margin of
56% compared to Usiminas' 43%, as reported last December.

"Usiminas' outlook for 2003 is not so good despite domestic
prices appearing stronger than international prices. The Company
will have to face increased competition from CSN and also the
entrance of Vega do Sul steel mill producing galvanized products
for the market by the end of the year," the analyst said.

Stefano recommends investors hold on to their Usiminas shares and
forecasts the Company -- excluding Cosipa's contribution -- will
post a net loss of BRL130 million for 2003, the report says.

CONTACT:  Usinas Siderurgicas de Minas Gerais Usiminas PN A
          Rua Prof. Jose Vieira de
          Mendonca, 3011
          Engenheiro Nogueira
          31310-260 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3499-8000
          Fax  +55 31 3499-8475
          Web  http://www.usiminas.com.br
          Contact:
          Jose Augusto Muller de Oliveira Gomes, Chairman



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

SEGUROS RENTA: Poor Risk Rating Threatens Annuities License
-----------------------------------------------------------
Seguros Renta Nacional will lose its license to sell annuities if
it can't improve its credit risk rating in 60 days, reports El
Mercurio. Chile's securities and insurance regulator, the SVS,
issued the warning after Fitch Chile reduced the insurance
company's rating last month from BBB with negative implications
to BB with stable implications. Fitch said the Company's
investment portfolio had too many assets in businesses affiliated
with the insurer's parent the Errazuriz group, especially in the
areas of real estate, leasing, mortgages and shares.

The SVS introduced new solvency regulations prohibiting insurance
companies with a rating under BBB from selling annuities. This is
the regulator's way of making sure that insurance companies have
sufficient funds on hand to cover their annuities.


TELEFONICA CTC: VTR Wins Again in Appeals Court; $13M Awareded
--------------------------------------------------------------
Telefonica CTC Chile was ordered to pay cable modem operator VTR
GlobalCom up to US$13 million by an appeals court, Business News
Americas reports, citing local press. The payment is said to be
for interconnection charges dating back to November 1999.

In 2000, VTR filed a lawsuit versus CTC for refusing to pay
interconnection fees, which it won in a lower court in June 2002.
In that ruling, CTC was ordered to pay US$10 million to VTR in
back payments. Local paper El Diario reported that another US$3
million was added to that backlog in the six months since.

CTC has decided to take the case to the Supreme Court after the
appeals court ruling last Monday.

CTC had refused to pay for sending its calls over VTR's network
as long as its US$270 million lawsuit filed against the
government remains unresolved.

CTC had sued the government for its five-year tariff decree,
which, according to CTC has restricted its competitiveness at
unsustainable levels. The tariff decree had set the fee CTC can
charge rivals to connect to its network to be much lower than
what those companies charge CTC for interconnection.

Subtel, the country's telecoms regulator had set the
restrictions. According to the report, CTC can charge rivals an
interconnection fee of CLP5 per minute while it has to pay VTR
CLP11 pesos for a reciprocal interconnection per minute.

CTC is the largest telco in the country, contolling about 80
percent of the fixed line service in Chile. VTR comes second to
CTC, and has an impressive performance in cities like Santiago.

CONTACT:  TELEFONICA CTC
          Avenida Providencia 111, Piso 2
          Santiago, Chile
          Phone: +56-2-691-2020
          Fax: +56-2-691-2392
          Homepage: http://www.ctc.cl
          Contacts:
          Mr. Bruno Philippi, President
          Mr. Jacinto Dˇaz, Vice President
          Gisela Escobar, Head of Investor Relations



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

SEVEN SEAS: Seeks Court Approval to Convert Case to Chapter 11
--------------------------------------------------------------
Seven Seas Petroleum Inc. filed an expedited motion to convert to
case under Chapter 11. On December 20, 2002, the Debtor relates
that a group of its creditors filed a petition to involuntarily
adjudicate Seven Seas as a chapter 7 debtor. Seven Seas
consequently consented to the Adjudication under Chapter 11.

The Debtor determines that conversion of this case to Chapter 11
is in the best interest of creditors and parties-in-interest.
Consequently, Seven Seas desires to convert this case to a case
under Chapter 11 of the Bankruptcy Code.

Seven Seas Petroleum Inc., filed for chapter 11 protection on
January 14, 2003 at the U.S. Bankruptcy Court for the Southern
District of Texas. Tony M. Davis, Esq., at Baker Botts LLP
represents the Debtor in its restructuring efforts. As of
September 30, 2002, the Company listed $180,389,000 in total
assets and $185,970,000 in total debts.

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


SEVEN SEAS: Section 341(a) Meeting Set for February 11
------------------------------------------------------
The United States Trustee will convene a meeting of Seven Seas
Petroleum Inc.'s creditors on February 11, 2003 at 10:00 a.m. at
Houston, 515 Rusk Suite 3401.  This is the first meeting of
creditors required under 11 U.S.C. Sec. 341(a) in all bankruptcy
cases. Proofs of claim are due on May 12, 2003.

All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.


SEVEN SEAS: US Trustee Appoints Ben Floyd as Chapter 11 Trustee
---------------------------------------------------------------
Upon the application of Richard Simmons, the United States
Trustee, the U.S. Bankruptcy Court for the Southern District of
Texas approved the appointment of Ben Floyd to serve as Chapter
11 Trustee for Seven Seas Petroleum, Inc.'s chapter 11 case.

Mr. Floyd is an attorney with the law firm of Floyd, Isgur, Rios
& Wahrlich, PC located at:

          700 Louisiana, Suite 4600
          Houston, Texas, 77002-2732
          Tel: 713 222 1470
          Fax: 713 222 1475

Mr. Floyd is currently a chapter 7 trustee on the panel of
chapter 7 trustee in the Southern District of Texas and is
routinely appointed to chapter 7 cases in a regular rotation with
other chapter 7 trustees.  However, the UST assures the Court
that Mr. Floyd does not have any connections with the Debtor, the
creditors and persons employed in the Office of the United States
Trustee.

For Mr. Floyd's appointment, the UST has consulted with:

     1) Tony Davis, Counsel for the Debtor;

     2) James Franklin Donnell, Counsel for the Petitioning
        Creditors; and

     3) Paul Heath, Counsel for Chesapeake Energy Corporation.

On December 20, 2002 a group of its creditors filed a petition to
involuntarily adjudicate Seven Seas as a chapter 7 debtor. Seven
Seas consequently consented to the Adjudication under Chapter 11
on January 14, 2003.  Tony M. Davis, Esq., at Baker Botts LLP
represents the Debtor in its restructuring efforts. As of
September 30, 2002, the Company listed $180,389,000 in total
assets and $185,970,000 in total debts.



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

ALESTRA: $80M Injection Hinges On Successful Restructuring
----------------------------------------------------------
Three shareholders of Alestra have expressed willingness to
provide an US$80 million capital injection into the ailing
Mexican international exchange operator. However, according to
Alestra's treasurer Sergio Bravo, the capital injection will only
come if Alestra successfully restructures its US$570-million
debt. Already, the Company has drawn up a proposal to restructure
the said debt.

"The offer we are proposing consists of the following, in two
parts: A tender offer for the repurchase of current papers at a
discount price; and for the other side, exchange of paper for
other paper with a lower interest rate and a longer-term
maturity," he said.

The restructuring efforts are targeted at the Company's US$270
million in 12.1% eurobonds maturing in 2006 and US$300 million in
12.6% eurobonds maturing in 2009. Together, the two bonds amount
to US$570 million of the Company's approximately US$600 million
total debt.

However, the debt proposal still needs authorization from the US
and Mexican securities regulators, Bravo said, adding that
Alestra expects to receive authorization in the next days. After
the authorization, the Company will then submit the proposal for
bondholders to approve or reject by the end of January.

Mexican industrial group Alfa controls 25.6% of Alestra through
Onexa, a 50:50 joint venture with local bank BBVA Bancomer. US
telecoms giant AT&T Corp controls the remaining 49% of the
indebted operator. The injection would be divided 25:25:50
between the three shareholders, matching their relative ownership
stakes, Bravo confirmed.

CONTACT:  ALESTRA S.A. DE R.L. DE C.V
          Av. Paseo de las Palmas No. 405
          Col. Lomas de Chapultepec
          11000 Mexico, D.F.
          Phone: 5201-5020
                 5201-5019
          Fax: 5201-5031
               5201-5027
          Web site: http://www.alestra.com.mx/cgi-
          Executives: Rolando Zubiran, Chief Executive Officer
                      Eduardo Lazos, V.P. Engineering & Ops
          Investor Relations: Alberto Guajardo
                              Phone: (52-818) 625-2219
          E-mail: aguajard@alestra.com.mx

FINANCIAL ADVISOR: MORGAN STANLEY
                   Worldwide Headquarters
                   1585 Broadway
                   New York, NY 10036
                   Phone: (212) 761-4000
                   Fax: (212) 761-0086
                   Home Page: http://www.morganstanley.com/
                   Contact:
                   Investor Relations
                   Phone: (212) 762-8131

                   In Mexico:
                   MORGAN STANLEY & CO. INCORPORATED
                   Oficina de Representaci>n en M,xico
                   Andres Bello 10
                   8o Piso
                   Colonia Polanco
                   11560 Mexico, D.F.
                   Phone: 011-525-282-6700
                   Fax: 011-525-282-9200


GRUPO MEXICO: Threatens Complete Closure If Strike Persists
-----------------------------------------------------------
Grupo Mexico SA, the world's third-largest copper producer,
warned it would shut down its Cananea mine in the northern state
of Sonora if workers continue to strike. In a statement sent to
the Mexico City stock exchange later Tuesday, Grupo Mexico said
if the strike is not called off "soon," it would consider closing
the mine permanently. The Company described the strike action as
"without legal basis."

Management and unions failed to reach a wage agreement by Monday
night's deadline and 3,000 workers downed tools Tuesday morning
at the open-pit mine, which produces around 150,000t/y copper of
which 50,000t is in the form of cathodes using SX-EW technology.

The strike "will have an immediate impact" on the mine's
production, Juan Rebolledo, vice president for international
affairs, said.

Grupo Mexico has been hurt by strikes in Mexico and Peru and
slumping copper prices because of slowing world economies that
have cut into profit and caused the Company to default on 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


PEMEX: Billions Required to Prevent Financial Crash
---------------------------------------------------
Raul Munoz Leos, General Director of Petroleos Mexicanos, warned
that Mexico's state-controlled oil company must embark on a major
restructuring and seek tens of billions of dollars in investment
in order to stave off an impending collapse.

Corruption and inefficiency have been blamed for the Company's
problems. According to a report by the New York Times, Pemex lost
US$3.5 billion last year after taxes and royalties, and
corruption costs the Company at least US$1 billion annually.

CONTACT:  PETROLEOS MEXICANOS
          Marina Nacional 329, Colonia Huasteca
          11311 M‚xico, D.F., Mexico
          Phone: +52-55-5531-6061
          Fax: +52-55-5531-6321
          http://www.pemex.com
          OFFICERS:
             Raul Munoz Leos, General Director
             Jose A. Ceballos Soberanis, Director Corporate
                                         Operations
             Jose Juan Suarez Coppel, Director Corporate Finance




SANLUIS CORPORACION: Concludes Debt Restructuring Process
---------------------------------------------------------
SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), the Mexican
autoparts manufacturing company informs that it has
satisfactorily reached its financial restructuring process.
January 15 marked the closing date of the debt restructuring for
its main operating business, the Suspensions Group. That piece of
the deal totaled US$234.2 million.

As previously reported, the agreement in principle with the 14
creditor banks for the Suspensions Group was in place as of March
17, 2002. This latest achievement, together with the closing of
the already announced debt restructurings for the Brakes Group
(US$34 million) and for the holding company SANLUIS itself
(US$291.3 million), represents a clear guarantee for the
continuity and operational stability, according to Company
officials. The firm forecasts favorable conditions for competing
in the North American OEM autoparts market where its products
have good acceptance and market share with the largest car makers
in the world.

The formalization of the agreements reached with the creditor
banks of the Suspensions Group was conditioned on the closing of
the financial restructuring of the SANLUIS holding company in
terms satisfactory to the creditor banks. This restructuring was
closed during the month of December, 2002, when the cash tender
and exchange offers for the old Eurobonds and ECP issued by
SANLUIS were concluded. The new instruments used in the exchange
offer were issued by a new subsidiary of SANLUIS (SANLUIS Co-
Inter, S.A. -SISA). As a result, old debt was acquired at a
discount with the payment of US$45 million in cash for US$128.6
million face value, and old debt was exchanged for a total amount
of US$123.8 million with the new debt issued in two tranches of
US$47.6 million and of US$76.2 million with maturities in June of
2010 and in June of 2011, respectively.

With this, a long negotiating process that began on September of
2001 is concluded, therefore reaching the objective that
SANLUIS's Board of Directors, chaired by Mr. Antonio Madero, had
established. The Board sought an orderly restructuring of its
debt, without affecting the operations of its businesses, and to
the benefit of its customers, shareholders, workers, employees
and providers.

CONTACT:  SANLUIS Corporacion, S.A. de C.V.
          Hector Amador
          Tel. +11-5255-5229-5838
          Fax. +11-5255-5202-6604
          Email: hamador@sanluiscorp.com.mex
          Web site:  www.sanluiscorp.com


SANLUIS CORPORACION: Fitch Places 'B-/CCC+' On Restructured Debt
----------------------------------------------------------------
Fitch Ratings has assigned ratings of 'B-' to the senior secured
debt obligations and 'CCC+' to the senior unsecured obligations
of SANLUIS Corporacion, S.A. de C.V. (SANLUIS) as the debt
restructuring has been formally completed. The senior secured
rating of 'B-' applies to the estimated $265 million of bank
loans that are held by SANLUIS' operating subsidiaries and are
secured by assets, while the senior unsecured rating of 'CCC+'
applies to the estimated $47.6 million of newly issued 8% senior
notes due 2010 and $76.2 million of 7% mandatorily convertible
debentures due 2011 that SANLUIS' debt holders have received in
exchange for defaulted debt that they formerly held. These
securities have been issued by SISA, a wholly owned subsidiary of
SANLUIS that will indirectly own all of SANLUIS' operating
companies, and are effectively in a subordinated position
compared the bank loans. The Rating Outlook is Stable.

The debt restructuring is positive for SANLUIS as it will result
in the reduction of SANLUIS' debt burden by close to 25% and the
lengthening of debt maturities. In addition, cash flow will
improve as a portion of the company's debt will have interest
that is paid-in-kind rather than paid in cash. The resulting
improvements in its debt profile are expected to help SANLUIS
normalize its ongoing operations and to focus on improving the
profitability of its auto part business. Since defaulting on its
debt obligations, SANLUIS has sought to preserve a minimum of
liquidity necessary for its ongoing operations. This objective
was made difficult by more restrictive credit terms from raw
material suppliers and other vendors. Since then, credit terms
have gradually improved and are expected to become more normal
after the debt restructuring is completed. SANLUIS will continue
to face a challenging operating environment for the auto parts
industry. SANLUIS, which manufactures suspension and brake
components primarily for export to original equipment
manufacturers (OEMs) including Ford, DaimlerChrysler and General
Motors, is exposed to the cyclicality of the United States auto
industry, which remains in a downturn.

SANLUIS' debt leverage will remain high after the debt
restructuring, with EBITDA generation of $55.5 million over the
twelve months ended September 30, 2002 to total pro forma debt
above 8.0 times (x). EBITDA/interest during the first nine months
of 2002 would have been slightly above 1.0x if SANLUIS was still
making interest payments on its debt as originally scheduled.
After the debt restructuring, EBITDA/interest is expected to
improve closer to 1.5x due to the recent stabilization of
profitability margins and the estimated reduction in debt from
$568 million at September 30, 2002 to an estimated $427.3 million
after the restructuring. The new debt profile will be comprised
of $38.9 million at the SANLUIS holding company level, $123.8
million at the SISA level ($47.6 million in senior notes and
$76.2 million in convertible debentures), $34 million at the
brake group subsidiary level and $230.6 million at the suspension
group subsidiary level. On a cash basis, EBITDA/interest will be
closer to 2.0x since interest on the 7% mandatorily convertible
debentures due 2011 will be paid-in-kind and capitalized rather
than paid in cash.

SANLUIS has completed the debt restructuring process that began
in September 2001 after the company defaulted on its debt
obligations. Consolidated debt at the time of the default was
approximately $550 million, of which half were direct obligations
of SANLUIS, and the remaining were the obligations of its
operating subsidiaries. Direct obligations of SANLUIS, which were
unsecured, were effectively in a subordinated position versus
operating subsidiary debt, which was secured by receivables. In
March 2002, SANLUIS reached an agreement in principle with the
holders of its operating subsidiary debt. Under this agreement,
the maturity of the operating subsidiary debt has been extended.
In return, creditors received an increase in coupon rates in the
latter years. In October 2002, SANLUIS launched a cash tender and
debt exchange offering open to holders of the company's direct
obligations, which totaled $291.3 million and included $200
million senior notes due 2008, $77.5 million euro commercial
paper, and $13.8 million of other unsecured debt obligations.
Holders were given the option to choose between a cash payment of
$350 for each $1,000 in principal amount of debt tendered, or
$384.15 in principal amount of newly issued 8% senior notes due
2010 plus $615.85 in principal amount of newly issued 7%
convertible debentures due 2011. On December 16, 2002, SANLUIS
announced that 87% of the debt holders consented to the cash
tender and debt exchange offering. As a result, $128.6 million in
defaulted debt and $36.4 million in unpaid and accrued interest
have been retired with a cash payment of $45 million. In
addition, $123.8 million of defaulted debt has been exchanged for
$47.6 million of 8% senior notes due 2010 plus $76.2 million of
7% convertible debentures due 2011.

CONTACT:  Guido A. Chamorro 1-312-368-5473, Chicago
          Giovanna Caccialanza, CFA 1-212-908-0898, New York

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



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

BWIA: Seeking Further Concessions As Savings Target Date Looms
--------------------------------------------------------------
BWIA, the flagship carrier of Trinidad and Tobago, continues
negotiations with unions as the January 31 deadline for the
Company to have a plan to save US$1.4 million monthly draws near.
The airline needs to save the target amount in monthly overhead
in order to maintain its viability and fulfill the requirements
of a loan granted to it by the government.

However, the unions had not yet fully agreed to the concessions
asked by the Company. Last year, the unions agreed to US$130,000
of the US$300,000 in monthly concessions.

The Trinidad Express quoted BWIA's corporate communications
director Clint Williams as saying the airline "will be forced to
look at other means of saving money including job losses", if it
fails to get the labor concessions. He added, "We have fought to
preserve jobs against an industry backdrop of massive job cuts.
We have tried to save as many jobs as possible."

However, he maintained that the "door is still open" for the
unions to decide on the concessions. Negotiations are still going
on, the report said.

The report added that the airline may have to slash costs further
after posting a half year loss of US$8 million last year.

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

BANCO DE CREDITO: Suspension Extended Until February 7
------------------------------------------------------
The Uruguayan central bank has granted St. George Co., an
investment company of the South Korean Moon group, more time to
negotiate the reopening of suspended local bank Banco de Credito.
In a statement, the central bank confirmed that it has extended
the suspension of Banco de Credito from January 17 to February 7.

Business News Americas recalls that the central bank has been
planning to extend the suspension again due to difficulties in
reaching a final agreement with St George, which submitted a
proposal to the central bank on January 14 to take over the bank.
A central bank spokesperson said that the parties are close to a
deal.

Under the terms of the proposed deal, St George would capitalize
Banco de Credito with its own funds and 20-30% of the bank's
frozen deposits in exchange for a majority stake. St George and
depositors would become the new owners.

Banco de Credito, along with Banco Comerical, Montevideo and Caja
Obrera, were intervened and suspended between July and August
last year due to capital and liquidity problems. The government
plans to merge the other three suspended banks into a new bank,
El Nuevo Banco Comercial, which is slated to open mid-February,
Business News Americas said.



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

MANPA: Defers Payments To Suppliers Due To Cash Flow Problems
-------------------------------------------------------------
Manufacturas del Papel CA (Manpa), Venezuela's largest publicly
traded paper company, is beginning to feel the effects of the
ongoing nationwide strike aimed at ousting President Hugo Chavez.
El Nacional cited company officials as saying that Manpa has
suspended payment to its suppliers due to cash flow difficulties
brought about by the strike.

"We have a serious cash flow problem," Manpa President Carlos
Delfino was quoted as saying. "We have been unable to place our
products for about 50 days."

Manpa, which produces paper bags, paper pads and tissue paper,
managed to slash its bank debt by 60% over the last two years to
about US$30 million through the sale of assets.


PDVSA FINANCE: Moody's Cuts Ratings To Caa1 From B3
---------------------------------------------------
Moody's Investors Service downgraded the ratings of PDVSA Finance
Ltd. to Caa1 from B3 after downgrading Petroleos de Venezuela's
(PDVSA) foreign and local currency ratings to Caa1 from B3.

The downgrade affects approximately US$3.4 billion of debt
securities issued by PDVSA Finance. The ratings on the notes
remain on review for possible further downgrade.

According to Moody's, the ratings of the PDVSA Finance notes are
linked to the local currency and foreign currency ratings of
PDVSA, which generates the receivables that back the repayment of
the rated notes. As a result of this linkage, any further change
in those ratings may also result in a change in the PDVSA Finance
notes' ratings.

New York
Linda Stesney
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Maria Muller
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


PDVSA: Foreign, Local Currency Issuer Dropped To Caa1
-----------------------------------------------------
Petroleos de Venezuela (PDVSA) had its foreign and local currency
issuer ratings downgraded to Caa1 from B3 by Moody's Investors
Service. The cut came after Moody's downgraded Venezuela's
country ceiling for foreign currency bonds to Caa1 from B3.

The outlook for PDVSA's ratings is developing, as is the outlook
for the country foreign currency ceiling.

Moody's said it moved PDVSA's ratings to a level equal with the
sovereign's in a prior rating action on January 9, 2003. That
action reflected the scale of the operational, export and
institutional disruptions that have affected PDVSA since the
national strike began in December 2002. Moody's believes it will
take substantial financial resources to restore PDVSA's
production capacity.

PDVSA, the state oil company of Venezuela, is located in Caracas,
Venezuela.

New York
John Diaz
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Thomas S. Coleman
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


* Continuing Political Upheaval Leads to Moody's Cuts
-----------------------------------------------------
The ongoing suspension of Venezuela's oil operations and the
uncertainty about when production will resume prompted Moody's
Investors Service to downgrade Venezuela's country ceiling for
foreign currency bonds and notes to Caa1 from B3.

Moody's affirmed the Caa1 ratings for the country ceiling for
foreign currency bank deposits and for the republic's local
currency-denominated bonds.

The outlook for all of Venezuela's ratings has been changed to
developing from stable.

According to Moody's, the downgrade of Venezuela's country
ceiling for foreign currency bonds and notes reflects a sharp
increase in liquidity and rollover risk resulting from prolonged
disruption of production at the state-owned oil company PDVSA.

PDVSA's exports are Venezuela's main source of foreign currency
earnings and the principal support for the ratings.

While the authorities continue to make significant efforts to
service the public sector debt on a timely basis, Moody's noted
that there is no certainty that the policy will be maintained,
especially as the political crisis continues.

Meanwhile, Moody's noted that if the political crisis is resolved
relatively quickly, economic normalcy might return to the country
fairly soon.

New York
Vincent J. Truglia
Managing Director
Moody's Investors Service

New York
Luis Ernesto Martinez-Alas
VP - Senior Credit Officer
Moody's Investors Service


* Fitch Anticipates Continuing Political Impasse in Venezuela
-------------------------------------------------------------
In its credit analysis of Venezuela, Fitch Ratings is utilizing a
base case scenario that anticipates the impasse between the
government and the opposition will continue. But, according to
the featured article in the latest edition of the Fitch Ratings
Latin America Quarterly newsletter published recently, the
national strike will eventually dissipate and Venezuelans will
return to work.

'For many years, Venezuela's strong debt service capacity has
mitigated any concern regarding its willingness to service debt
that could arise from political instability and social unrest,'
said Theresa Paiz Fredel, Director, Fitch Ratings. 'The current
national strike has severely disrupted the economy, increasing
pressures on both government finances and international reserves
that could ultimately affect the government's willingness to meet
its obligations.'

A peaceful, democratic and constitutional resolution of to the
current political crisis could stabilize Venezuela's
creditworthiness, according to Fitch. Further, any future credit
rating upgrades will be dependent on a sustainable resolution of
the political crisis, full resumption of past oil export levels,
improvements in the government's macroeconomic policy framework,
and a resumption of access to domestic and international capital
markets.

The new issue of 'Latin America Quarterly' includes an additional
article on Venezuela, focusing on Hugo Chavez and the PDVSA
strike. Other articles evaluate investor concerns concerning the
investment-grade status of Mexico, provide an outlook on Latin
American structured finance for the new year and outline Fitch's
launch of a national ratings service in the Dominican Republic,
the first international rating agency to do so.

The 'Latin America Quarterly' is designed to provide investors
and other capital market participants with timely and accurate
information regarding Latin American sovereigns, corporates,
financial institutions and structured finance, all rated by Fitch
Ratings.

The entire issue is available on the Fitch web site
'www.fitchratings.com' and can be found in the newsletters
section of the link marked 'Sovereigns'.

CONTACT: Sheila Robinson 1-212-908-0632, New York

Media Relations: Matt Burkhard 1-212-908-0540, New York


               ***********


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.

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
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The TCR Latin America subscription rate is $575 per half-year,
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* * * End of Transmission * * *