/raid1/www/Hosts/bankrupt/TCRLA_Public/030207.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, February 7, 2003, Vol. 4, Issue 27

                           Headlines



A R G E N T I N A

ACINDAR: Standard & Poor's Rates $10M of Bonds `raD'
AUTOPISTAS DEL SOL: $170M Of Bonds Rated `D' by Moody's
FIDEICOMISO FINANCIERO: Local Moody's Rates Financial Trusts `D'
FIDEICOMISO FINANCIERO: Moody's-LA Rates Financial Trusts  `C'
GALTRUST: Financial Trusts Get Junk Ratings From Local Moody's

REALTY I: Moody's Latin America Rates Financial Trusts `C'
SOCIEDAD COMERCIAL DEL PLATA: S&P Rates Corporate Bonds `raD'
TGN: Seeks Central Bank's Consent To Pay $7.6M In Interest
*IDB Approves $1.5B Emergency Loan For Argentina


B E R M U D A

ESG RE: Late Filings Prompt Nasdaq Delisting; Fitch Comments
TYCO INTERNATIONAL: AFL-CIO Petition BofD to Leave Bermuda


B R A Z I L

EMBRATEL: Downplays Client Attrition To Telemar, Telesp
FIAT: Refuses To Comment On GM's Offer
LIGHT SERVICOS: Legal Woes Add To Financial Troubles
TELEMAR: Seeks BNDES Financial Support


C H I L E

CHILECTRA: Reports Red On Hefty Non-Operating Loss
SANTA ISABEL: Ahold Negotiating On Sale Of Operations


C O L O M B I A

SEVEN SEAS: Judge Approves Asset Sale to Subsidiaries


E C U A D O R

* S&P Revises Outlook on Ecuador to Positive


J A M A I C A

JUTC: To Make Severence Payments Friday


M E X I C O


CNI CANAL: Targets Politicians, Big Firms for Ad Revenues
CYDSA: Ends Alliance With Germany's Bayer AG
GRUPO MEXICO: Employees Move To Lift Strike



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

ACINDAR: Standard & Poor's Rates $10M of Bonds `raD'
----------------------------------------------------
Corporate bonds issued by steelmaker Acindar Industria Argentina
de Aceros were rated `raD' by the Argentine branch of Standard &
Poor's International Ratings, Ltd. (Sucursal Argentina) on
Wednesday, according to the National Securities Commission of
Argentina. The rating implies that the Company defaulted on
payments.

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.

The bonds, worth US$10 million dollars, are described in the
posting as "Negociables simples, no convertibles en acciones,
autorizadas por AGOyE de fecha 5.8.96", and mature on February
16, 2004.

The ratings reflect the Company's financial status as of
September 30, 2002.

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

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


AUTOPISTAS DEL SOL: $170M Of Bonds Rated `D' by Moody's
-------------------------------------------------------
Moody's Latin America Claficadora de Riesgo, S.A. issued a rating
of `D' to corporate bonds of Autopistas del Sol. The National
Securities Commission of Argentina described the bonds as
"Obligacion Negociable - Serie A." The bonds, worth US$170
million dollars, come due on August 1, 2004. These are classified
under "simple issue."

The rating, issued on Friday, is based upon the Company's
financial health as of the end of September 2002. No reasons for
the issue of the junk ratings were given in the NSC web site.


FIDEICOMISO FINANCIERO: Local Moody's Rates Financial Trusts `D'
----------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo issued `D' ratings
to various financial trusts of Fideicomiso Financiero Fidens. The
National Securities Commission of Argentina described the
affected securities as "Certificado de Participacion."

The rating is given to the following series, classified as
"Participation Certificate":

-- Series I, Class A, worth US$2.137 million.

-- Series I, Class B, worth US$1.742 million.

Both classes in Series I mature on February 28, 2014, according
to the posting.

-- Series II, class A, worth US$2.06 million. Maturity date is
July 31, 2014.

-- Series II, Class B, amounting to US$1.35 million. Comes due on
January 31, 2014.

The ratings were given last Friday. The CUSIP and the more
details behind the ratings issue were not indicated.


FIDEICOMISO FINANCIERO: Moody's-LA Rates Financial Trusts  `C'
--------------------------------------------------------------
Financial Trust of Fideicomsiso Financiero Fidens I were issued a
rating of `C' by Moody's Latin America Calificadora de Riesgo,
S.A., said in the National Securities Commission of Argentina in
its official web site. The securities are classified as "Debt
Security", and described in the posting as "Titulo de Deuda."

Series I, which matures at the end of December 2013, is worth
US$11.4 million, while Series II, worth US$10.97 million matures
on July 31, 2014.


GALTRUST: Financial Trusts Get Junk Ratings From Local Moody's
--------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. issued a rating
of `D' to US$200 million worth of Debt security of Galtrust I,
according to the National Securities Commission of Argentina.
The securities were called "Titulos de Deuda Clase B."

The same rating was given to US$200 million of financial trust,
referred to as "Certificados de Participacion." The ratings were
given on Friday. The reasons behind the rating and the CUSIP were
undisclosed.

REALTY I: Moody's Latin America Rates Financial Trusts `C'
----------------------------------------------------------
Financial trusts of Realty I received junk ratings from Moody's
Latin America Calificadora de Riesgo S.A., according to the
official website of the National Securities Commission of
Argentina.

A rating of `C' was given to two of the Company's securities on
Friday.

The ratings affect debt securities, described as "Titulod de
Deuda Fiducaria Clase B" worth US$1.6 million, and "Certificado
de Participacion" worth US$3.2 million. Maturity dates were not
disclosed.


SOCIEDAD COMERCIAL DEL PLATA: S&P Rates Corporate Bonds `raD'
-------------------------------------------------------------
Various corporate bonds of Sociedad Comercial del Plata S.A. were
rated `raD' by the Argentina branch of rating agency Standard &
Poor's, on Monday. The ratings reflect the Company's performance
as of the end of September 30 last year.

According to the National Securities Commission of Argentina, the
rating applies to the bonds classified as "series and/or class".
The concerned series of bonds under "emitada bajo Progr. Global
de Obligaciones Negociables por un monto de US$400 millones" are
the following:

-- Series 6, worth US$125 million. Maturity date was not
disclosed.
-- Series 7, worth US$40 million. Data on maturity dare is not
available.
-- Series 8, worth US$25 million. Date due is August 12, 2002.

The rating of `raD' is given when the company defaulted on a
debt, or has filed for bankruptcy, according to the rating
agency's definitions. The 'raD' rating is used when interest or
principal payments are not made on the date due, even if the
applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace
period.

Meanwhile, the Company's stocks were assigned a `4' rating by the
same agency.


TGN: Seeks Central Bank's Consent To Pay $7.6M In Interest
----------------------------------------------------------
Argentine gas transporter TGN is looking for approval from
Argentina's central bank to proceed with its plan to pay US$7.6
million in interest corresponding to the period November 1, 2002
to January 31, 2003. Citing a company statement to the Buenos
Aires stock market, Business News Americas reports that the
Company plans to pay interest at a cap of 3.5% to all creditors,
including its IFC A and B loans.

Fitch Ratings recently downgraded TGN's convertibility risk-
insured bonds (CRIBs) to DD from C after the Company failed to
make a US$9.5-million semi-annual interest due January 25, 2003.
A partial payment of US$1.9 million was paid to the CRIB holders
on January 27, 2003, corresponding to the period of July 25, 2002
through October 31, 2002.

TGN is a natural-gas pipeline company serving the Northern and
Central regions of the Republic of Argentina. The Company is
70.4% owned by Gasinvest S.A., a consortium of TotalFinaElf
(27.2%), Compania General de Combustibles (27.2%), Organization
Techint (27.2%), and Petrolium Nasional Berhad (18.4%). CMS
Energy also owns a large stake in the company (29.4%).

CONTACT:  TRANSPORTADORA DE GAS DEL NORTE (TGN)
          Don Bosco 3672, (C120ABF) Buenos Aires, Argentina.
          Phone: (+54 11) 4959-2000
          Fax: (+54 11) 4959-2242
          Home Page: www.tgn.com.ar/


*IDB Approves $1.5B Emergency Loan For Argentina
------------------------------------------------
The Inter-American Development Bank announced Wednesday a $1.5
billion, fast-disbursing emergency loan to Argentina to support a
program for social protection and to reduce the impact of the
economic crisis on the poor. The IDB could also consider another
$1 billion loan in the second semester of 2003.

The Argentine government says rapid disbursing resources will
support the continuity of social programs. Furthermore, another
reformulation will allow a $145 million disbursement for fiscal
program.

Reformulation of a previously approved $500 million loan to
support a program for consolidation and fiscal reform, will
enable the Bank to make a $145 million immediate disbursement.

Emergency loan

The $1.5 billion loan approved by the IDB Board of Executive
Directors will support measures that the Argentine government
will adopt to ensure macroeconomic stability while focusing
social services on those sectors with the least income.

IDB President Enrique V. Iglesias praised Argentina for taking
steps to overcome a crisis that affected the country last year
and said that the Bank will strongly support efforts for
recovery. He added that, besides the resources approved
Wednesday, the Bank expects to approve a similar loan for $1
billion for Argentina in the second half of 2003.

The IDB program to support Argentina, in response to priorities
established by the government of that country, was prepared in
coordination with the International Monetary Fund and the World
Bank. IDB specialists have maintained a constant dialogue with
the other multilateral institutions while preparing the present
loan to coordinate efforts and to ensure complementarity.

Conditions for disbursement of the loan include an agreement on
and effective operation of a stabilization program with the IMF;
protection of priority social programs; support of the social
strategy for the efficiency and continuity of the social
policies; and strategic advances in the country's social
protection system in the areas of health, education and social
development.

Support for Argentina is being undertaken within the framework of
a strategy adopted by the IDB and government authorities to
improve the efficiency of social services to reduce poverty and
improve the quality of life of the population.

The loan is for a five-year term, with a grace period of three
years, at a variable interest rate equivalent to the six-month
Libor dollar rate plus 400 basis points.

Reformulation of resources to support federal program for
consolidation and fiscal discipline

The reformulation of a $500 million loan to support the Argentine
government in advancing fiscal consolidation and setting the
basis for the implementation of structural fiscal reforms will
allow the disbursement of a second tranche of financing, in the
amount of $145 million.

The IDB Executive Board of Directors approved the reformulation
in light of the country's progress in complying with the
conditions established for the operation, which was designed to
achieve fiscal equilibrium in the short run.

The first disbursement, for $255 million, was made in September
2001. The third disbursement, for $100 million, could be
considered towards mid 2003.

The financing will help the federal and provincial governments
carry out more transparent financial management, budgeting and
taxation policies that meet short-term fiscal performance goals.
The program is expected to contribute to the adoption of measures
that will foster increased efficiency, transparency and public
awareness in the use of public resources, while strengthening
taxation systems.

The program meets the terms of the agreement that Argentina
formalized in January with the IMF, and is being carried out by
the Economy Ministry through the Undersecretariat of Provincial
Relations of the Secretariat of Finance.



=============
B E R M U D A
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ESG RE: Late Filings Prompt Nasdaq Delisting; Fitch Comments
------------------------------------------------------------
Following the delisting of ESG Re Limited's securities from
Nasdaq, Fitch Ratings has stated that the Insurer Financial
Strength ratings of 'B' will remain on Rating Watch Negative for
ESG Reinsurance Bermuda Limited, ESG Reinsurance Ireland Limited
and European Specialty Ruckversicherung AG, the principal
reinsurance subsidiaries of ESG Re Limited, Bermuda. As the
agency's IFS ratings for the company and its principal
subsidiaries already reflect the delisting of the company's
shares from Nasdaq, no further rating action will result from
this specific event.

The reason given by The Nasdaq Listing Qualifications Panel for
the delisting of the company's securities with effect from 4
February 2003 was its failure to file its Form 10-Q's for the
quarter ended 30 September 2002 in a timely fashion and failure
to file amendments to previously filed reports reflecting
anticipated restatements in its financial statements. Fitch
understands that ESG Re is considering appealing the decision to
delist its shares.

Deloitte & Touche resigned as ESG Re's independent auditors with
effect from 22 November 2002 and on 29 November provided the
company with a list of accounting disagreements relating to the
quarter ending 30 September 2002. BDO International was
subsequently approved as the company's new independent auditors
with effect from 24 December. As a result of the resignation of
Deloitte & Touche, Fitch downgraded the IFS ratings of ESG Re and
its principal subsidiaries to 'B' from 'BB-' (BB minus) on 4
December 2002, maintaining the Rating Watch Negative in place
since 14 August 2002. Fitch's rating action reflected the
negative impact that the resignation and accounting disagreements
were likely to have on the company's business relationships over
the short-term and reduced financial flexibility resulting from
the suspension and possible delisting of its shares from Nasdaq.

Included in the disagreements provided by Deloitte & Touche was
one reportable event: the accounting of a co-reinsurance contract
with ACE Limited. This reportable event was proposed by Deloitte
& Touche as a restatement to the company's financial statements
for the quarter ended 30 September 2001, the fiscal year ended 31
December 2001, and the quarters ended 31 March and 30 June 2002.

BDO is in the process of auditing the company's financial
statements for the accounting periods detailed above, together
with the fourth quarter of 2002 and the full fiscal year ended 31
December 2002.

Fitch will remain in close contact with the company, with a view
to reviewing BDO's audit conclusions as they become available.
ESG Re will remain on Rating Watch Negative pending resolution of
this issue.

CONTACT:  Chris Waterman, London
          Tel: +44 (0)20 7417 6328
          Email: chris.waterman@fitchratings.coml

          David Wharrier, London
          Tel: +44 (0)20 7417 6292
          david.wharrier@fitchratings.com

Media Relations: Kris Anderson 44 20 7417 4361, London


TYCO INTERNATIONAL: AFL-CIO Petition BofD to Leave Bermuda
----------------------------------------------------------
In a letter Wednesday, the AFL-CIO called on members of Tyco
International Ltd.'s (NYSE: TYC) board of directors to chart a
new direction for the company: back to the United States of
America. The AFL-CIO asked Tyco's directors to move the company's
2003 annual meeting from Bermuda, an offshore tax haven, to the
United States and asked Tyco to take the necessary steps to move
its legal headquarters back from Bermuda to the United States.
Tyco shareholders are about to elect new directors at this year's
annual meeting, giving the company a unique opportunity to
restore investor confidence after the scandals of 2002.

"By reincorporating in Bermuda in 1997, Tyco stripped
shareholders of their rights under U.S. law and then former top
Tyco executives looted the company of hundred of millions of
dollars.  This company owes its shareholders, many of whom are
working people investing their retirement savings, proof that
Tyco is serious about leaving behind the time of corruption that
coincided with its move to Bermuda," said AFL-CIO Secretary-
Treasurer Richard L. Trumka.

The American Federation of State, County and Municipal Employees
(AFSCME) Pension Plan has submitted a shareholder proposal to
Tyco, which shareholders will vote on at Tyco's annual meeting,
demanding that the company return to the United States.  The
proposal already has won the support of some of the largest
public employee pension funds in the country, including CalPERS,
CalSTERS and the Connecticut Retirement Plans.

In 2002, the AFL-CIO and Machinists union worked closely with
Connecticut elected officials and activists during a months-long
campaign that successfully defeated an effort by Stanley Works to
reincorporate in Bermuda. The AFL-CIO supports legislation such
as the Corporate Patriot Enforcement Act, introduced Wednesday by
Sen. Harry Reid and Rep. Richard Neal to end the practice of
corporations running away from their responsibilities by
reincorporating in offshore tax havens like Bermuda.

The AFL-CIO is a federation of trade unions representing 13
million working men and women who participate in the capital
markets as investors through defined-benefit and defined-
contribution plans, as well as through mutual funds and
individual accounts.  Benefit funds sponsored by AFL-CIO
affiliate unions have over $400 billion in assets and are
significant shareholders in Tyco.



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

EMBRATEL: Downplays Client Attrition To Telemar, Telesp
-------------------------------------------------------
Embratel, which is controlled by US-based WorldCom, is not at all
concerned about losing clients to local telephony incumbents
Telemar and Telesp, Embratel chairman and WorldCom VP Dan
Crawford indicated to Brazilian news agency Ultimo Segundo.

According to Crawford, the subscriber segment, which is leaving
Embratel, is not the operator's target market. "We were not sad
to lose [these clients]," he said.

Last year, Telemar and Telesp - controlled by Spain's Telefonica
- received long distance licenses from the local regulator in
exchange for meeting build-out requirements, cutting into the
duopoly Embratel and its rival Intelig had held since 1998.

However, Embratel, Brazil's long distance incumbent, will have
completed by February 15 its 29-city launch of local services,
giving Telemar and Telefonica a run for their money in that
segment. The operator aims to serve 35% of the country's 10,000
largest corporations in five years.

Embratel reported this week a full year 2002 net loss of BRL626
million (US$174 million), a 13% increase from that of 2001,
Business News Americas recalls. The full year loss came despite a
fourth-quarter 2002 profit of BRL112 million.

The Company attributed last year's poor results mainly to the
effect of the 52.3% decline of the real against the US dollar.
The total depreciation amount exceeded the hedged portion of the
Company's foreign currency debt.

CEO Jorge Rodriguez said "2002 was a year of slow economic
growth, considerable uncertainty and continued downward pressure
on prices."

"If the local currency becomes stable then there's a good chance
that [more] positive results can be expected in coming quarters,
since local currency fluctuation has been Embratel's main
explanation for losses in the previous seven quarters," Pyramid
Research analyst Juliana Abreu told Business News Americas.

"Exchange rate fluctuation in 2002 was primarily a result of
political uncertainty and market speculation. Now that there is a
new government things are quieter," she said. However, the new
administration is just starting and the major macroeconomic
reforms it plans - which themselves have yet to be proved viable
- have not yet been passed, she added.

To see Income Statement:
http://bankrupt.com/misc/Income_Statement.htm
To see Balance Sheet: http://bankrupt.com/misc/Balance_Sheet.htm

CONTACT:  Embratel Participacoes S.A.
          Silvia Pereira, Investor Relations Manager
          Tel: 55 21 2121-6474/9662 (messages)
          Email: Silvia.Pereira@embratel.com.br
          invest@embratel.com.br


FIAT: Refuses To Comment On GM's Offer
--------------------------------------
Fiat SpA remains mum on reports that General Motors Corp has
offered it EUR1.7 billion for its operations in Brazil as well as
the cancellation of Fiat's put option, according to La Repubblica
newspaper. The newspaper relates that, under the put option, Fiat
has the right from January 1, 2004 to require GM to buy the
remaining 80% of the Fiat Auto unit that it does not already own.

Fiat's creditor banks, however, are not so keen on GM's proposal.
The creditors, the newspaper says, believe that the put option
alone is worth EUR1.7 billion. Furthermore, the banks are against
Fiat selling its Brazilian operations as well as selling its Alfa
Romeo brand to Volkswagen AG.

Umberto Agnelli is expected to take over as Fiat chairman, from
Paolo Fresco, earlier than previously expected.  Fiat's board is
likely to meet February 28 to discuss restructuring plans, as
well as the approval of its results.


LIGHT SERVICOS: Legal Woes Add To Financial Troubles
----------------------------------------------------
Already fraught with a heavy debt burden, Brazil's Light Servicos
de Eletricidade, a unit of France's Electricite de France, is
confronted with another headache.

Dow Jones recalls that on Tuesday, the Rio de Janeiro State
Prosecutors' office decided to reopen a 1999-2000 corruption case
in which Light accused state tax inspectors of attempting to
extort BRL3.0 million ($1=BRL3.56) so that the revenue service
would drop charges of tax evasion against the Company.

The case was dismissed after a brief investigation failed to
prove a wrongdoing on the part of the state tax inspectors.

Now, state prosecutors Antonio Vicente da Costa and Elio
Fischberg have decided to reopen the case because the tax
inspectors involved in the Light case are again in the spotlight,
says Dow Jones. They are under investigation for other corruption
cases which happened at the same time as the one involving Light.

The power distributor, which serves the metropolitan area of Rio
de Janeiro, declined to comment on the reopening of the case. But
according to a company spokesman, Light will comply with requests
from the prosecutors' office.

Light, which faces BRL1 billion (about US$288mn) of debt
maturities in both 2003 and 2004, recently had its global scale
rating downgraded to CCC+ from B by credit rating agency Standard
& Poor's. The downgrade came on concern that EDF, which is its
main source of liquidity, would not inject any more cash into the
debt-laden unit.

But according to Light CFO Paulo Pinto, the parent company will
not allow Light to default on its debt payments.

Pinto revealed that Light is preparing to pay off US$150 million
in bonds due this month from its own cash resources, which
currently total US$200 million. EDF is discussing a further
capital injection for Light to help the Rio company pay US$600
million owed to third parties equivalent to 60% of the US$1
billion in debts due this year, Pinto said.

EDF and Light want to pay down the Company's debts to a level
where they can be managed by cash flow, which is estimated to
reach about US$300 million this year, Pinto said.

Light has total debts of about BRL3.8 billion (US$1.07bn),
including a US$200 million loan from EDF, and 80% of the debts
are linked to the US dollar.

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


TELEMAR: Seeks BNDES Financial Support
--------------------------------------
Telemar, Brazil's incumbent telco, will turn to Brazil's national
development bank BNDES for financial backing in its efforts to
reach its investment benchmark of BRL2 billion, half of which is
earmarked for its PCS subsidiary Oi. The subsidiary plans to
invest BRL2.7 billion in the 2001-2004 period.

According to Business News Americas, the Company is looking to
secure BRL870 million (US$244mn) in funding from BNDES.

The move follows a US$550-million loan that the Company recently
obtained from French bank Societe General, German development
bank KFW and the Japan Bank for International Cooperation (JBIC).
Of this sum, Telemar will destine US$250 million toward
investment, and US$300 million to pay off supplier debt
obligations.

As of September 2002, Telemar had a net debt level of BRL10.3
billion. While the figure seems huge at first glance, BBVA
analyst Roger Oey expects a reduction to take place soon.

"The major Oi investments have happened, so we now expect
Telemar's debt load to be reduced, especially because we are not
expecting any acquisitions on the part of Telemar," Oey told
Business News Americas.

Oey noted that Telemar has a good relationship with its creditors
due to its ability to generate cash and pay off debt obligations
in reasonable timing.

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          Email: terziani@telemar.com.br
          Tel: 55 21 3131 1208

          Carlos Lacerda
          Email: carlosl@telemar.com.br
          Tel: 55 21 3131 1314

          Fax: 55 21 3131 1155

          THOMSON FINANCIAL CORPORATE GROUP
          Rick Huber
          Email: richard.huber@tfn.com

          Mariana Crespo
          Email: mariana.crespo@tfn.com

          Tel: 1 212 807 5026
          Fax: 1 212 807 5025




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C H I L E
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CHILECTRA: Reports Red On Hefty Non-Operating Loss
--------------------------------------------------
Chilean distributor Chilectra, a subsidiary of Chilean holding
Enersis, posted a consolidated net loss of CLP31 billion in 2002,
reversing a CLP73.2-billion profit in 2001, reports Business News
Americas. A non-operating loss of CLP130 billion in 2002, against
the previous year's CLP13.5-billion profit, drove the Company to
the red despite an operating profit of CLP87.3 billion, a 7%
increase from 2001.

Accounting losses from operations in Argentina and Brazil, as
well as the liquidation of a Panamanian unit, accounted for
CLP72.4 billion in non-operating losses.

Lower income from related companies accounted for a further
CLP48.6 billion, while financial costs increased 13% to CLP51
billion and exchange rate differences led to CLP14.5 billion
losses in 2002 after CLP3.2 billion profits in 2001.

Chilectra holds 34% of Buenos Aires distributor Edesur, 15.6% of
Lima-based Edelnor, 35.5% of Rio de Janeiro state's Cerj and
13.2% of Ceara state's Coelce in Brazil, and 9.9% Codensa, which
serves Colombian capital Bogota.


SANTA ISABEL: Ahold Negotiating On Sale Of Operations
------------------------------------------------------
Ahold confirmed Wednesday it is engaging in exploratory talks
regarding the possible sale of its stake in its Chilean
supermarket activities that trade under the Santa Isabel banner.
The Peruvian and Paraguayan operations will not be part of this
transaction. At year-end 2002, Santa Isabel operated 77 stores in
Chile.

Notwithstanding the fact that Ahold and Chilean retailer Cencosud
S.A. must still agree on the terms of the final agreements, the
parties intend to negotiate on the basis that these activities
have a total value, not considering any liability, of
approximately USD 150 million. The related book value, including
goodwill, of the Chilean assets is approximately USD 220 million.

Cencosud has interests in real estate, do-it-yourself (DIY)
stores and hypermarkets. Its wholly-owned subsidiary,
Hipermercados Jumbo S.A., is the third-largest food retailer in
the country with 7 hypermarkets and 15 DIY stores. The company
also operates 11 hypermarkets and 21 DIY stores in Argentina.

The possible divestment of its stake in its Chilean activities
fits within Ahold's strategy announced November 19, 2002. The
strategy focuses on boosting growth in its profitable core
businesses, reducing debt and rationalizing the portfolio.
Consistently underperforming core assets are being scrutinized
for potential divestment. Ahold's Chilean activities fall within
that category.

Outside The Netherlands Koninklijke Ahold N.V., being its
registered name, presents itself under the name of "Royal Ahold"
or simply "Ahold".

CONTACT:  Royal Ahold
          Investor Relations:
          Huibert Wurfbain, 011-31-75-659-5813
          or
          Media Relations:
          Annemiek Louwers, 011-31-75-659-5720
          or
          Taylor Rafferty New York
          Media Relations:
          Ethan Sack, 212/889-4350
          or
          Taylor Rafferty London
          Media Relations:
          Matthew Nardella, + 44 20 7936 0400



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

SEVEN SEAS: Judge Approves Asset Sale to Subsidiaries
----------------------------------------------------------------
Judge Wesley W. Steen of the U.S. Bankruptcy Court in Houston
approved Monday a motion by the Chapter 11 trustee overseeing
Seven Seas Petroleum Inc.'s bankruptcy case in light of the sale
of the assets of the Company's subsidiaries.

Randall Rios, who serves as general bankruptcy counsel for Ben
Floyd, the Chapter 11 trustee, told Dow Jones Newswires Wednesday
that Judge Steen approved the sale Monday and gave the trustee
power to close the transaction.

On December 13, 2002, Sociedad Internacional Petrolera SA signed
an agreement to buy Seven Seas' nonbankrupt units' assets,
including interests in an oil field and a pipeline in South
America, for US$20 million.

In his order, Judge Steen said that the purchase price was the
highest and best offer for the assets. It was necessary to close
the transaction promptly to preserve value for Seven Seas
Petroleum, its estate and its creditors, according to the order.

The proceeds of the sale will be distributed to Seven Seas
Petroleum only under a reorganization plan or an additional court
order, the filing said.

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.

CONTACT:  Daniel Drum, Investor Relations
          +1-713-622-8218



=============
E C U A D O R
=============

* S&P Revises Outlook on Ecuador to Positive
--------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it revised
its outlook on the Republic of Ecuador to positive from stable,
reflecting the government's commitment to improve fiscal balances
and sign a letter of intent with the International Monetary Fund
(IMF). Standard & Poor's also said that it affirmed its 'CCC+'
long-term and 'C' short-term sovereign credit ratings on the
republic.

"The positive outlook reflects ongoing progress by the government
of President Lucio Guti‚rrez in strengthening Ecuador's 2003
fiscal balances, reducing recourse to arrears, and signaling
better prospects for servicing commercial debt on time," said
sovereign analyst Lisa Schineller.

"Expenditure cuts (including the public sector wage bill) and
revenue-enhancing measures (such as increases in gasoline and
electricity prices) have been outlined, and a letter of intent
for a US$200 million
IMF Stand-By Arrangement is being negotiated," she added.

According to Ms. Schineller, some of these fiscal measures will
require congressional approval; this in turn, complicates the
likelihood of their implementation, as Congress and President
Guti‚rrez are not expected to have a smooth working relationship.

"Ecuador's contentious political landscape, which includes strong
regional and ethnic divisions, have precluded significant
commitment by successive governments to the reform that could
transform this resource-rich nation," noted Ms. Schineller.
"Economic challenges and vulnerabilities limit economic growth
and poverty reduction, while the government's tight cash flow
position and poor debt payment record constrain access to
financing and require concerted effort by the executive and
legislative branches to satisfy a hard budget constraint," she
said.

According to Standard & Poor's, while the government's commitment
to fiscal adjustment has improved significantly under President
Guti‚rrez and his economic team, relations with Congress pose a
large risk to policy implementation. Since Ecuador faces severe
constraints in tapping local and international capital markets,
access to IMF and other multilateral funds is crucial in order
for Ecuador to meet its scheduled amortization payments. "If
Ecuador (both the executive and Congress) complies with the
fiscal measures needed to ensure final approval of an IMF
Agreement, the ratings could be upgraded," Mr. Schineller said.
"Conversely, failure to capitalize on recent progress to secure
official financing would impair prospects for servicing
commercial debt on time, and the ratings could come under
downward pressure," she concluded.

ANALYST: Lisa M Schineller, New York (1) 212-438-7352



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

JUTC: To Make Severence Payments Friday
---------------------------------------
Accountants of Jamaica Urban Transit Company (JUTC) were due to
have finalized by Thursday how much the Company will have to
spend on redundancy payments this Friday, The Jamaica Gleaner
reports. According to JUTC's Information Officer Errol Lee, the
Company already has set aside some money for the said payments.

The Company made 280 of its employees redundant last week
culminating the first phase of the recommendations put forward in
a recent review by a team of Swedish transport experts, who were
called in to assess JUTC after an audit done by KPMG-Peat Marwick
deemed the Company technically insolvent.

The experts also made the following recommendations: that
priority be given to the cashless fare collection system to stem
leakage and encourage frequent travellers; revised scheduling;
and revised costs for services including security.

JUTC has been struggling with daily losses of about US$3.6
million. Its net worth as of Feb. 2002 is negative US$1.13
billion. The recommendations mentioned above are designed to save
the four-year-old state-owned bus company US$700 million over the
next 15 months.

The restructuring is expected to be completed by March 31.



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


CNI CANAL: Targets Politicians, Big Firms for Ad Revenues
---------------------------------------------------------
CNI Canal 40 will set its eyes on political parties and large
companies as it embarks on a commercial strategy aimed at
recovering its losses generated during the month it was off the
air, reports Mexico City daily El Universal, citing the Company's
executives.

The executives said that they would compensate advertisers for
the time contracted that could not be broadcast during the period
the Company was not in operation.

"We are rescheduling everything we did not broadcast last month
and we are contacting advertisers regarding their communication
projects," said the sources.

Advertisers such as Santander-Serf¡n said they would evaluate new
advertising contracts with the TV company.

Manuel Somoza, general director of Prudential Apolo, said that
the investment fund would continue to use Canal 40.

"We are interested in continuing because it is a useful medium
that gives what we need. If it continues being useful we will
continue advertising," said Somoza.

Canal 40 expects this year to be better year than 2002 due to the
mid-term elections, which will boost total spending on
advertising.

CNI lost control of Canal 40 to TV Azteca, Mexico's No. 2
network, on Dec. 27 after an international court of arbitrage
ruled that Canal 40 had broken its contract with the network, a
deal that gave Azteca the right to program and sell airtime for
the local channel.

Canal 40 argued that Azteca used the court ruling as a pretext to
take the law into its own hands, and according to numerous
employees, the broadcaster hired armed guards and used force to
take over the facilities.


CYDSA: Ends Alliance With Germany's Bayer AG
--------------------------------------------
Mexican industrial group Grupo Celulosa y Derivados (Cydsa)
decided to close down Industrias Cydsa Bayer in a move signaling
an end to the Company's alliance with German company Bayer A.G.,
Mexico City daily el Economista reveals.

The closure, which was mutually agreed with Bayer A.G., is part
of the restructuring of the Company's business portfolio, which
is focused on consolidating products with the highest added
value, Cesareo Frias, corporate director general of Cydsa, said.

The plant, which was formed in 1995 is located in Coatzacoalcos,
Veracruz and produces Toluene Diisocyanate, which is used in the
manufacture of polyurethane foam.

Alejandro Von Rossum, Director General of the Chemical Division
of Cydsa, said that Bayer Polymers will continue serving
Industria Cydsa Bayer clients through its affiliate Bayer de
M‚xico.

Thus, Cydsa will quit the polyurethane foam business, while Bayer
will maintain the operations of this manufacturing center.

Cydsa is looking to improve its operational and financial
situation after failing to make a US$7.5-million payment of a
US$159-million bond due in December.

U.S. firms Rothschild Inc. and PricewaterhouseCoopers have been
contracted as assessors in its financial restructuring.

Monterrey-based Cydsa has been affected by poor performances from
some of its subsidiaries, which have struggled in the present
economic climate, according to an unnamed company official.

The Company has more than 20 subsidiaries involved in businesses
such as wastewater management, environmental services, textile
manufacture, industrial packaging, chemicals and plastics.

CONTACT:  CYDSA, S.A. DE C.V., IN MEXICO
          Jesus Montemayor, Treasury Director
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


GRUPO MEXICO: Employees Move To Lift Strike
-------------------------------------------
The employees of Mexicana de Cananea have presented a new
proposal to the executives of Grupo Mexico in an attempt to bring
a two-week old strike to an end, Mexico City daily el Economista
reports.

The details of the proposal were not disclosed. But, according to
Jaime Escamilla, general secretary of Social Conflicts and
Housing, the workers have opted to establish solid proposals and
defined schedules to avoid problems that could only hold up the
negotiations.

The union committee met with executives of the Company in the
Labor Secretariat after the Federal Arbitration and Conciliation
Board (JFCA) postponed its decision on the legality of the strike
for an indefinite period.

"The talks have progressed well, which is why we are confident
that the company will take our requests into account," Escamilla
said.

The General Administration of Mines and the Economic Development
Secretariat of the state of Sonora estimated that the mine would
make around US$616 per day with copper at US$0.70 per pound, so
the two weeks of strike would have cost the firm approximately
US$9.24 million.

The workers lodged a strike Jan. 20 demanding a 32% productivity
bonus, a 5.25% wage hike and a 5% stake in the mine. Grupo Mexico
has proposed to pay the 32% productivity bonus in a term of three
months but that proposal was rejected by the striking workers.

Grupo Mexico, which has had to renegotiate its debt after being
hit in recent years by low world copper prices, threatened to
close Cananea down in mid-2002 during a strike, but that dispute
was settled with a 5.75% increase in wages and benefits. Just
recently, the Company again issued a warning that it would close
the mine if a settlement will not be reached.

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




               ***********


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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