TCRLA_Public/030210.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

            Monday, February 10, 2003, Vol. 4, Issue 28



CRM: Suspends P&I Payments; S&P Drops Ratings to 'D'
REPSOL YPF: Ibersecurities Ups Recommendation On Higher Income
* Lazard Probable Choice as Argentina's Restructuring Adviser


RESIDENSEA LTD.: Announces Refinancing
SEA CONTAINERS: Falling Share Price Raises Inquiries


TELEMAR: Increases Fixed to Mobile Service Rates
USIMINAS: Revamps Cosipa's Debt; Seeks BB Investimentos' Aid
VARIG/TAM: Merging Operations To Avert Possible Bankruptcy
* Brazil Forecasts US$4 Billion Debt Refinancing in 2003


AEROCONTINENTE: To Establish Alliance With Chilean Firm
CTR: Parent Brokers Debt Agreement with Lenders
MANQUEHUE NET: Debt Ratings Improve on New Development Plan


CFE: El Cajon Project Bid Deadline Extended to February 19
GRUPO MEXICO: Cananea Workers End Strike
GRUPO TMM: TFM Completes Exchange Offer
HAYES LEMMERZ: Reorganization Disclosure Conditionally Approved
ISPAT INTERNATIONAL: Fourth Quarter 2002 Results Improve


MINERA VOLCAN: Treatment Plant Operations Suspended Indefinitely


CITGO: Uncertainty Over Liquidity Pulls Down Debt Ratings
CITGO/PDV AMERICA: S&P Changes CreditWatch Listing to Developing
IBH: To Voluntarily Delist From The Nasdaq Smallcap Market

      - - - - - - - - - -


CRM: Suspends P&I Payments; S&P Drops Ratings to 'D'
Standard & Poor's Ratings Services said Thursday that it lowered
its local and foreign currency corporate credit ratings on
Argentine mobile provider Compa¤ˇa de Radiocomunicaciones M˘viles
S.A. (CRM) to 'D' from 'SD'. The rating on the US$150 million
9.25% senior unsecured notes due 2008 will remain at 'CC' until
there is an effective default on that security. The next interest
payment on those notes is due in May 2003.

The rating action is based on the company's decision to suspend
principal and interest payments on its financial obligations in
order to preserve liquidity to continue funding its operations,
in light of the current economic situation in Argentina and its
limited financial flexibility.

The company has hired BroadSpan Capital as financial advisor to
restructure the terms of the existing debt and align them with
CRM's expected cash generation.

Although, until now, the company remained current on interest for
the majority of the bank and capital market debt, it had missed
certain short-term bank maturities in June 2002. As of September
30, 2002, when the latest financial statements were issued, total
debt reached approximately US$512 million, including two
syndicated loans for a total of US$268 million and the
aforementioned rated US$150 million notes. That filing also
indicated CRM had past due maturities with banks for US$119.6

"CRM's financial flexibility is severely constrained by the
contraction of the credit market for Argentine corporates, the
mismatch between dollar-denominated debt and peso-denominated
revenues after the Argentine currency devaluation in early 2002,
the harsh demand conditions in the country, and the relatively
onerous debt maturity schedule in comparison with the company's
cash generation ability," stated Standard & Poor's credit analyst
Ivana Recalde.

CRM is 65% owned by BellSouth Corp. (A+/Stable/A-1), 25% by
Motorola Inc. (BBB/Stable/A-2), and the remaining 10% is held by
other minority

ANALYSTS:  Ivana Recalde, Buenos Aires (54) 114-891-2127
            Marta Castelli, Buenos Aires (54) 114-891-2128

REPSOL YPF: Ibersecurities Ups Recommendation On Higher Income
Spanish securities rating agency Ibersecurities expects to see a
great boost in Spanish oil company Repsol YPF's net income due to
the stabilization of the Argentine peso, the increase in oil
prices, an increase in production, recovery of operating margins,
and the divestment of assets.

Citing an Ibersecurities statement, Business News Americas
reports that Repsol is likely to up its net income by 114% to
about US$2.4 billion from the previous year. In light of this
expectation, Ibersecurities changed its recommendation for the
oil company from `neutral' to `buy.'

In 2001, the economic crisis in Argentina, low oil prices, and a
reduction in refining margins, drove Repsol's net income 57%
lower to US$1.1 billion.

Repsol YPF is scheduled to report its 2002 results on February

          Head Office
          Paseo de la Castellana 278
          28046 Madrid
          Tel  +34 91 348 81 00
          Fax  +34 91 348 28 21
          Telex  48162 RESOLE
          Alfonso Cortina de Alcocer, Chairman
          Jose Vilarasu Salat, Vice Chairman
          Antonio Hernandez, Vice Chairman

* Lazard Probable Choice as Argentina's Restructuring Adviser
Argentine Economy Minister Roberto Lavagna said that Lazard LLC,
the world's largest closely held investment bank, will most
likely be chosen to advise the country on negotiations for new
payment terms on US$95 billion of debt, which the country
defaulted on in December 2001.

Mr. Lavagna explained that Lazard offer to charge US$190,000 per
month was the lowest among the three finalist banks. The other
two are UBS Warburg, which offered to charge US$194,000 monthly,
while Morgan Stanley asked for a monthly fee of US$1.2 million,
said the government.

Analysts say that the adviser bank may earn at least US$150
million. The winner would manage the swap of old securities for
new bonds, once all 700,000 holders are identified.  The deal
would be the world's largest debt restructuring in history.

The adviser bank's tasks include identifying bondholders and the
type of securities they hold, and estimating how much the country
could afford to pay, which the government says may take as long
as 12 months.

Bloomberg said Argentina is also seeking to negotiate new terms
with creditors mostly in the U.S., Europe and Japan who hold
about 100 different bonds denominated in eight currencies.
Investors may have to wait at least another year to receive as
little as 20 cents on the dollar, analysts said.

Meanwhile, Morgan Stanley said that competitors do not realize
the amount of work involved to advise on the debt talks.

Francisco Pujol, co-head of global emerging markets at Morgan
Stanley in New York said, "It is necessary to dedicate a large
amount of resources to do a good job. I think the winners are
failing to recognize the amount of work there is, not just by the
size of the debt, but the intricacies of the restructuring."

UBS declined to comment.

Lazard said it expects to hear from the government soon. The bank
is looking forward to receiving a confirmation saying it won the

At a press conference, the country's Finance Secretary Guillermo
Nielsen said that the bids would need further deliberations as
UBS's offer included charges for items like communications and
transportation instead of fees specifically for advisory work.


RESIDENSEA LTD.: Announces Refinancing
ResidenSea Ltd., owner and operator of The World, the first
mixed-use resort community at sea, has restructured its debt
financing.  The terms of the new arrangement are an amortizing
$91 million term facility, due in 2008 and an increased $50
million revolving facility, due in 2005.

According to Robert Riley, president and chief executive officer,
the restructured debt financing supports the latest business
plan, and assists the company's business strategy.

"With these new financial arrangements in place, we are confident
that sales velocity will increase, potentially outpacing the $20
million of residences sold since delivery." said Riley.

About The World:

The World of ResidenSea is the first mixed-use resort community
at sea, comprised of 110 two- and three-bedroom, privately owned
residences - many of which are available for rental - and 88
studio residences available for the high-end vacation market. The
World began its pioneering odyssey in March 2002 on an ever-
winding world voyage, featuring extended stays in port that give
residents and guests the time to experience all the sights,
sounds and flavors of the world's most exciting destinations.
Both residents and vacationing guests are offered the flexibility
of embarking and disembarking in ports of call of their choice;
for guests, vacation stays are booked at daily fares. For more
information about The World's residential purchase options,
please call +1-305-264-9090; for inquiries regarding vacation
stays onboard, call ResidenSea at 800-970-6601 in the U.S. or
Canada or +1-305-779-3399 outside the U.S.; or visit ResidenSea's
website at

ResidenSea Ltd., in Nassau, The Bahamas, is the holding company
of the Group. Its wholly owned subsidiaries, ResidenSea AS and
ResidenSea (U.S.A.), Inc., are both service companies involved in
the sales and marketing of the vessel "The World." The World of
ResidenSea Ltd. is the ship-owning company.

SEA CONTAINERS: Falling Share Price Raises Inquiries
Sea Containers Ltd., a Bermuda-based leisure and marine cargo
company, said Thursday that it has received a number of inquiries
about the recent drop in the Company's common share price.

Mr. James B. Sherwood, president, said that he was mystified
because the Company had an excellent fourth quarter in 2002 and
its earnings for the year will be significantly higher than the
$27.9 million ($1.40 per common share diluted) reported for the
nine months ended September 30, 2002. This will represent a huge
improvement over the net income of $4.5 million ($0.24 per common
share diluted) reported for the full year 2001.

Mr. Sherwood said that the 2002 results were currently under
audit and the Company would announce its results late in March as
customary. The president also said that the fourth quarter, 2002
results were better than expected because marine container
leasing showed improvement and the Company's rail subsidiary,
GNER, had achieved important cost savings while revenue was on

"Shelf" registrations for sale of Sea Containers common shares
and those of Orient-Express Hotels Ltd. owned by the Company, as
well as the Form 144 filing for sale of his own shares were
exhausted late in 2002 and new filings have recently been made.
Mr. Sherwood said in his own case he has no present intention of
selling any of his shares in the Company at Thursday's distress

Last year, Sea Containers revealed a plan to sell part of its
stake in Orient-Express Hotels Ltd. in order to meet heavy debt
repayments in 2003, including US$158 million of senior notes
falling due on July 1. However, the plan became unattractive
after a slump in the Company's share price in May to about US$13
from US$20.

CONTACT:  Sea Containers Ltd
           41 Cedar Avenue
           P.O. Box HM 1179
           Hamilton HM EX, Bermuda
           Phone: + 1 (441) 295 2244
           Fax: + 1 (441) 292 8666


Net Servicos de Comunicacao S.A., former Globo Cabo S.A.,
(Bovespa:PLIM4) (Bovespa:PLIM3) (Nasdaq:NETC) (Latibex:XNET), the
largest Pay-TV multi-service operator in Latin America, an
important provider of bi-directional broadband Internet access
(Virtua) and multimedia and data communication services for
corporate networks, announced that the Company's board of
directors elected Francisco Tosta Valim Filho as chief executive
officer in its meeting that ended Thursday.

The contribution of the new CEO will be particularly valuable to
the Company in the ongoing reorientation and strengthening of its
operations as well as in the conclusion of the re-equation of the
Company's debt.

CONTACT: Net Servicos de Comunicacao S.A.
          Investor Relations:
          Marcio Minoru, 011/5511-5186-2811

          Lu Yuan Fang, 011/5511-5186-2637

TELEMAR: Increases Fixed to Mobile Service Rates
Tele Norte Leste Participa‡oes, S.A. (NYSE: TNE) announced
Thursday that the Brazilian Telecommunications Regulatory Agency
- Anatel - approved yesterday the new cap rates charged by
Telemar on fixed to mobile calls, as well as the interconnection
rates charged by the mobile operators to Telemar for such calls.

Unlike previous years, Anatel decided to align the fixed to
mobile rates with the interconnection rates charged by the mobile
companies: from now on, the wireline customer will have different
fixed-to-mobile rates, according to the mobile operator which
terminates the call. That means that the higher the
interconnection charged by a specific mobile operator, the higher
the fixed to mobile rate charged on calls carried by that
operator will be.

The fixed to mobile rate increase was limited to 27.6%, which was
the inflation index (IGP-DI) for the period of 14 months, from
November 1st, 2001 - base date for the previous rate increase -
through January 1st, 2003, which has been established as the new
base date for future rate increases.

Also in a change from previous years, Anatel approved an average
increase for the fixed to mobile service rates slightly above the
rate increase for mobile interconnection charges: 24.82% for the
average local fixed to mobile service offered by Telemar (VC-1),
net of taxes, and an average of 21.99% for the mobile
interconnection charges (TU-M and VU-M), as well as the long
distance fixed to mobile service rates (VC-2 and VC-3).

The effective value date for the fixed to mobile rate increase by
Telemar will be February 08, 2003. Fixed-to-mobile revenues
generally account for 20-22% of the gross revenues of Telemar.

See the new rates for the fixed to mobile service approved by
Anatel to Telemar at:

           Roberto Terziani
           Tel: 55 21 3131 1208
           Fax: 55 21 3131 1155

           Carlos Lacerda
           Tel: 55 21 3131 1314
           Fax: 55 21 3131 1155

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

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

USIMINAS: Revamps Cosipa's Debt; Seeks BB Investimentos' Aid
Brazilian flat steelmaker Usiminas undertook a decision to
restructure the debt of its subsidiary Cosipa, which totaled
US$1.47 at the end of 2002, reports Business News Americas.
The restructuring process will likely involve two operations in
the short term, according to analysts' expectations. One is a
debenture offer of some US$300 million, which is forecast for
this month, and the other is a securitized loan.

The Belo Horizonte-based, which holds 93% of Cosipa's total
capital, has hired BB Investimentos to assist in the debt-
restructuring. Together, Usiminas and Cosipa produce some 9.2Mt
of crude steel a year.

At the end of last year, Usiminas registered a consolidated gross
debt of US$2.7 billion.

VARIG/TAM: Merging Operations To Avert Possible Bankruptcy
Viacao Aerea Rio-Grandense SA, Latin America's largest airline,
and TAM Linhas Aereas SA, a family owned competitor about two
thirds of Varig's size, announced merger plans Thursday in a move
to stave off an impending collapse.

According to the two airlines, they will merge their operations
into a joint venture to be listed on the stock exchange. The
deal, to be detailed by June 30, is subject to regulatory
approval and could face some limitations by antitrust authorities
in the domestic market, where the two companies have roughly a
70% share.

The deal comes after the government, which itself is struggling
to reduce costs to keep up debt payments, refused to provide aid
to Varig, which has implored its assistance after defaulting on
some of its US$900-million debt last year.

Tam is generally considered more efficient than Varig. However,
the airline is also struggling to recover a net loss of BRL450
million ($125m) in the first nine months of last year.

An alliance is "probably the only way that they can be
successful," said Patricio Sepulveda, regional director for Latin
America at Montreal-based International Air Transport

Banco Fator, a local investment bank, has been hired to advise
both companies on the process.

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:
               Dorival Ramos Schultz, EVP Finance and CFO

               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
               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
               Phone: +1-617-572-2000
               Fax: +1-617-572-2461

               Daniel Mandelli Martin, President
               Buenos Aires
               Tel. (54) (11) 4816-0001

* Brazil Forecasts US$4 Billion Debt Refinancing in 2003
Brazil plans to sell as much as US$4 billion of international
bonds this year, according to Bloomberg. The report did not
indicate specific dates when the government might offer new
bonds. Brazilian Treasury Secretary Joaquim Levy said the country
needs to raise funds to help refinance about 55 percent of the
US$7.3 billion in foreign bonds and loans coming due this ear.
This is about BRL300 billion of foreign and local government

At a press conference, Mr. Levy said that the remaining debt
coming due this year may be refinanced through domestic debt
sales, or government cash reserves. This is in alignment with
Lula's promise to reduce dependence on foreign financing,
including loans from the International Monetary Fund, according
to some investors.

At the time of the presentation of the 2002 financing plan, the
treasury said it expects the volume of debt maturing in less than
a year, which is currently 40 percent, to be between 16 to 29
percent of total debt.

The plan to sell debt indicates the country's confidence that
foreign investors would buy the bonds, for the first time in
almost one year. But some investors remain unconvinced. Peter
Geraghty of Darby Overseas Investment in Washington said that he
wants more proof of President Inacio Lula da Silva's commitment
to curb spending before he buys the bonds.

"They've said they're serious about reform but I don't think the
administration has been tested yet," he said.

Some economists say Brazil may default on some of its debts
within the next three years.

Last year, the country sold US$3.93 billion of international
bonds by April. At that time, yields on the benchmark 8 percent
bond due 2014 increased following investors' concerns of a
default, said Bloomberg.

The country is not likely to sell international bonds until the
benchmark bond yields went down further. According to Muhammad
El-Erian of Pacific Management Co., Brazilian bonds yield an
average of 13 percentage points more than U.S. treasuries with
comparable maturity. He added that the Brazilian bonds have to
narrow to about 8 to 8.5 percentage points in order to sell

The cost of debt service in Brazil went up by 4 percentage points
last year due to the 35 percent decline in the value of the local
currency, said Mr. Levy. About half of the government's debt is
tied to the overnight interest rate -- which the central bank has
raised 7.5 percentage points to 25.5 percent in the past 12
months - and more than a third of the debt is linked to the
dollar, said Bloomberg.

Mr. Levy added that this year, he expects the value of
outstanding domestic and foreign bonds to rise to as much as
BRL1.02 trillion (US$284.8 billion). The government would attempt
to steady its debt load through increasing sales of inflation-
linked securities and bonds with fixed interest rate, he said.

The government will also try to postpone the maturity of its
securities to an average of 38 months. At the end of last year,
the average maturity was 33 months.


AEROCONTINENTE: To Establish Alliance With Chilean Firm
Peruvian airline AeroContinente is hoping operations in Chile
will resume promptly. The company's authorization to operate in
that country was impounded following an investigation into its
alleged involvement in drug trafficking and money laundering.

Instead of waiting until its judicial problems in Chilean courts
are solved, the Company is seeking an alliance with a Chilean
company, making it a majority owner. The Company believes this is
the easiest way and fastest solution for allowing the Peruvian
airline to resume operations there.

According to AeroContinente's president, Lupe Zevallos, although
talks with the Chilean helicopter company Nimbu - owned by the
former LanChile pilot Diogenes Arredondo - are on stand by, the
Company has made progress on negotiations with other Chilean

"We never reached any agreement with Nimbu, as we were only
exploring new business opportunities. But we are talking to other
companies," Zevallos said.

           Jr. Moyobamba 101
           Tarapoto, Peru
           Phone: (094) 524332
           Fax: (094) 523704
           Home Page:
           Contact: Sr. Zad Desm,, Vice President

CTR: Parent Brokers Debt Agreement with Lenders
SR Telecom, the telecommunications industry's leading supplier of
fixed wireless access solutions, announced Thursday that it has
reached an agreement with the lenders of Communicacion y
Telefonia Rural, S.A. (CTR), its service provider subsidiary in

"We are pleased with the ongoing support and confidence
demonstrated by the lenders in our wireless operations," said
David Adams, Vice President, Finance and Chief Financial Officer.
"This agreement supports the future performance of our CTR
subsidiary based on a business plan that will enable it to meet
key financial targets and improved EBITDA."

This agreement provides for a restructuring of principle
repayments due in 2003 and a deferral of a portion of the
originally scheduled payments to 2004. The deferral is similar to
arrangements made with the lenders in 2002 for scheduled
repayments in support of CTR. This partial restructuring enables
CRT to focus on completing its network and introducing marketing
initiatives to improve its financial performance.


SR Telecom is a world leader and innovator in Point-to-Multipoint
Wireless Access solutions, which include equipment, network
planning, project management, installation and maintenance
services. Its products, which are used in over 110 countries, are
among the most advanced and reliable PMP wireless
telecommunications systems available today. Serving telecom
operators worldwide, SR Telecom's fixed wireless solutions
provide high-quality voice and data for applications ranging from
carrier class telephone service to high- speed Internet access.

CONTACT:  David Adams, Vice-President, Finance and CFO,
           Tel: (514) 335-4035

           Paul Goyette, Director, Communications
           Tel: (514) 335-2429 ext. 4361,


           Scott Lawrence, MAISON BRISON
           Tel: (514) 731-0000

MANQUEHUE NET: Debt Ratings Improve on New Development Plan
Fitch Ratings upgraded the debt rating of Chilean competitive
local exchange operator Manquehue Net to BB from B-, with a
stable outlook, reports Business News Americas. The upgrade on
the Company's rating also reflects a positive trend in its
operating cash flow.

The action follows the Company's successful restructuring of a
US$23.4-million syndicated loan through a new development plan,
obtaining two years grace for repayment. Moreover, under the new
schedule, repayment will now be disbursed over five years,
starting in September 2004.

The loan was taken out in May 2001 with Corpbanca, BCI, BICE,
Dresdner Bank and Banco Security.

The development plan now requires liability to exceed EBITDA by a
factor no greater than 5.5 from June 2006 onwards, compared to a
factor if 9.5 in June 2003. Additionally, total assets are to be
no less than 4.6mn UF (Chile's inflation-indexed currency),
compared to the current minimum of 6.1mn UF (101.7bn pesos, or

Manquehue is now generating annual EBITDA of CLP6.5 billion,
covering financial expenses by a factor of 1.5. The Company ended
3Q02 with total debt of CLP56 billion.

The Company also got a shot in the arm after shareholders
Metrogas and Inversiones el Roble made a capital injection to the
tune of CLP2 billion. The new development plan reinforces the
Company's efforts to target the high-income sector.

Another positive factor, Business News Americas recalls, is the
November 2002 arrival of Capital Trust, a new shareholder, which
took a 19.4% stake as its share of a 30% stake divested by UK-
based power company National Grid. Existing Manquehue
shareholders Williams Communications and investment company Xycom
took the rest of National Grid's stake to raise theirs to 23.5%
and 12 .7%, respectively. Local shareholders, the Rabat Group and
gas company Metrogas, hold 19.13% and 25.54% stakes in the
Company, respectively.

           Av. Condor 796, Enterprise City,
           Huechuraba Santiago Chile
           Phone: 00 562 243 8800
           Fax: 00 562 248 7292
           EMAIL: info@manquehue.netl
           Home Page:
           Mr. Miller Williams, President
           Sr.Jos, Luis Rabat Vilaplana, Vice President


CFE: El Cajon Project Bid Deadline Extended to February 19
CFE, Mexico's state power company said it postponed the deadline
for receiving bids on the construction of the El Cajon hydro
project to February 19. A company source told Business News
Americas that the reason for the deadline extension is to give
interested companies to prepare their bids.

This is the second time the deadline was postponed. A revised set
of bidding rules, which contain more geological and technical
data, caused the original deadline to be moved to February 7.

The source added that about 30 companies have bought bidding
rules so far. He also said that some companies have formed
consortiums in order to bid for the project. Bidding rules will
be sold until February 13.

Business News Americas named a few companies, which reportedly
purchased bidding rules. These are Mexico's ICA Group, Sweden's
Skanska, Italy's Impregilio, Spain's Dragados, Brazil's Camargo
Correa and Argentina's Techint.

According to the official company timetable, CFE would make a
final decision on March 10, after economic bids are opened on
March 3. Work is set to begin on March 26.

The US$ 1.04 billion project in Nayarit state is to be completed
in August 2007. The plant would have a capacity of 750MW.

           Rio Rodano 14, Col. Cuauhtemoc
           06598 Mexico, D.F., Mexico
           Phone: +52-55-5229-4400
           Fax: +52-55-5310-4614
           Alfredo Elias Ayub, General Director
           Arturo Hernandez Alvarez, Director of Operations
           Francisco J. Santoyo Vargas, Director of Finance

GRUPO MEXICO: Cananea Workers End Strike
The strike at Grupo Mexico SA's Cananea copper mine in northern
Mexico's Sonora state ended Thursday after the world's third-
largest copper producer reached an agreement with unions on a
productivity bonus and other benefits for miners. Union
spokeswoman Consuelo Aguilar said that striking workers have
returned to work Thursday morning.

"We've finally reached an agreement that will help us boost
capacity and productivity," said Juan Rebolledo, vice president
for international affairs at Grupo Mexico.

Under the agreement, Grupo Mexico will pay workers a bonus of
26.5% of their salary if they produce a minimum of 130,000 tons
and 32.58% for 160,000 tons for the first three months. From then
on, bonuses will range from 32.58% to 68.20%. The Company also
agreed to pay half of the workers wages for the duration of the

Rebolledo said the company expects to exceed 150,000 tons at the
mine this year, but couldn't make an estimate until production
figures are revised.

           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:
           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

GRUPO TMM: TFM Completes Exchange Offer
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo
TFM"), announced Thursday that its subsidiary, TFM, S.A. de C.V.
("TFM"), has successfully completed its exchange offer for its
outstanding unregistered 12.50 percent Senior Notes due 2012 (the
"Outstanding Notes"). Holders of approximately $179,675,000 in
principal amount, representing nearly 100 percent of the total
principal amount of the Outstanding Notes, tendered their
Outstanding Notes for an equal principal amount of new registered
notes (the "Exchange Notes"). The Exchange Notes were issued on
February 4, 2003.

The terms of the Exchange Notes are identical in all material
respects to the terms of the Outstanding Notes, except for the
transfer restrictions and registration rights relating to the
Outstanding Notes. The exchange offer was made upon the terms and
subject to the conditions set forth in the prospectus, dated
January 3, 2003, and the letter of transmittal related to the
exchange offer. The exchange offer commenced on January 3, 2003
and expired on January 31, 2003 (the "Expiration Date"). Tenders
may not be withdrawn after the Expiration Date.

The exchange offer was made solely by the prospectus dated
January 3, 2003, the related letter of transmittal, and any
amendments or supplements thereto. This announcement is neither
an offer to purchase nor a solicitation of an offer to sell TFM
notes. The exchange offer was not made to, nor were tenders
accepted from, or on behalf of, holders of Outstanding Notes in
any jurisdiction in which the making of the exchange offer or the
acceptance thereof was not in compliance with the laws of such

Headquartered in Mexico City, TFM operates Mexico's Northeast
railway and carries over forty percent (40%) of the country's
rail cargo. Visit TFM's web site at The site
offers Spanish/English language options. Grupo TMM, S.A.
(NYSE:TMM and BMV: TMM A) and Kansas City Southern (NYSE:KSU) are
owners of the controlling interest in TFM.

CONTACT:  Grupo TFM Company Contact:
           Jacinto Marina, 011-525-55-629-8790


           Leon Ortiz, 011-525-55-447-5847

HAYES LEMMERZ: Reorganization Disclosure Conditionally Approved
Hayes Lemmerz International, Inc. (OTC Bulletin Board: HLMMQ)
Thursday announced that it has reached an agreement in principle
on its Disclosure Statement and Plan of Reorganization with its
pre-petition secured lenders and Apollo Management V, L.P., which
manages funds owning over 40% of the Company's Senior Notes. The
parties believe they are close to reaching agreement with the
Official Committee of Unsecured Creditors, the last major
constituent in the case.

The Disclosure Statement hearing held in the United States
Bankruptcy Court for the District of Delaware on February 6, 2003
has been continued until February 20, 2003, after resolving most
of the 10 objections before the Court. The Company believes that
this brief continuation will allow time for an agreement
including the Creditors' Committee to be finalized, which will
permit timely confirmation of its Plan of Reorganization on April
9, 2003.

"We are pleased with the progress to date and believe that this
will enable the Company to emerge timely from Chapter 11 and
maximize the value for our constituents," said Curt Clawson,
Chairman and CEO.

Hayes Lemmerz and its subsidiaries in the United States and one
subsidiary in Mexico filed voluntary petitions for reorganization
under Chapter 11 of the bankruptcy code in the U.S. Bankruptcy
Court for the District of Delaware on December 5, 2001.

Hayes Lemmerz International, Inc. is one of the world's leading
global suppliers of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components. The Company has 44 plants, 3 joint venture facilities
and 11,400 employees worldwide.

           Marika Diamond
           Tel: +1-734-737-5162

ISPAT INTERNATIONAL: Fourth Quarter 2002 Results Improve
- Ispat International N.V., (NYSE: IST US; AEX: IST NA), reported
Thursday a net income of $51 million or 42 cents per share for
the fourth quarter of 2002 as compared to a loss of $86 million
or negative 71 cents per share for the fourth quarter of 2001.

Consolidated sales(1) and operating income for the fourth quarter
were $1.3 billion and $29 million, respectively, as compared to
$1.1 billion and an operating loss of $68 million, respectively,
for the fourth quarter of 2001. The Company achieved a 16%
increase in steel shipments to 3.7 million tons, as compared to
3.2 million tons shipped in the same period last year.

Results for the fourth quarter of 2002 were negatively impacted
by net amount of $55 million towards certain one-time items such
as write-off of investments in Empire mines, write down of 2A
Bloomer and 21" Bar Mill at Ispat Inland and gain from sale of
assets in Pipe making subsidiary at Mexico.

Net debt(2) at the end of fourth quarter was $2.2 billion.
Capital expenditure for fourth quarter of 2002 totaled $39
million. At December 31, 2002 the Company's consolidated cash,
cash equivalents and short-term liquid investments totaled $77
million. The Company also had approximately $308 million
available to it under various undrawn lines of credit and bank
credit arrangements(3).

During the fourth quarter of 2002, the Company also recorded an
after-tax charge of $273 to Other Comprehensive Income towards
minimum pension liability adjustment. This charge, which
pertained mostly to Ispat Inland, reduced the amount of
Shareholders' Equity in the Balance Sheet.

Ispat International N.V. is one of the world's largest steel
producers, with major steelmaking operations in the United
States, Canada, Mexico, Trinidad, Germany and France. The Company
produces a broad range of flat and long products with over 90% of
sales in North American Free Trade Agreement (NAFTA)
participating countries and the European Union (EU) countries.
Ispat International is a member of The LNM Group.

To see financial statements:

           T.N. Ramaswamy, Director, Finance
           Tel: +44-20-7543-1174 or +31-10-282-9471

           McInerney, Investor Relations of Citigate Dewe Rogerson
           Tel: +1-212-419-4219


MINERA VOLCAN: Treatment Plant Operations Suspended Indefinitely
Compania Minera Volcan ceased operations at its mineral treatment
plan Mahr Tunel, the largest zinc miner in Peru revealed in a
filing with the Lima Stock Exchange. The Company didn't say when
the suspension, which is seen by an analyst as a move to cut
costs, would be lifted.

According to Luis Bravo, an analyst at Centura SAB brokerage,
closing the plant will cut costs without hurting output because
Volcan has four other treatment plants with a combined capacity
to treat about 15,000 metric tons of mineral daily.

"They are moving production from Mahr Tunel to other plants where
they have excess capacity to save," Bravo said, adding that the
Company's 2002 output was 276,000 metric tons, or about 88% of
its capacity of 314,000 metric tons.

Meanwhile, an official from the Company told Reuters that the
miner is hoping for higher zinc prices to pull itself out of a
slump and finance a program of exploration for its vast mining

"I hope to see prices between $800 and $850 a tonne during the
year," the official said, adding that higher zinc prices could
help Volcan finance an exploration program after several years of
lean exploration budgets.

Volcan has some 240,000 acres (100,000 hectares) in mining
concessions in Cerro de Pasco and Yauli. Volcan is expected to
release financial results for 2002 next month, and according to
the official, these results were "not going to be good."

As of September 30, Volcan had lost PEN49.5 million ($14.1
million) compared with a loss of PEN19.7 million ($5.62 million)
a year earlier.

Figures published recently by Peru's Energy and Mines Ministry
showed that Volcan's zinc production, which accounts for 85% of
the Company's income, had declined 13.6% in 2002 compared with a
year earlier to 275,935 tonnes of fine zinc in concentrates.

The official said a week-long strike in October and a cash-flow
problem that led to a scarcity of inputs and lack of spare parts
had been responsible for the decline.

"We are overcoming this situation but we still need a little more
time," the official said.

Volcan's goal in 2003 is to bring zinc output back to 2001
levels, when the company produced 319,317 tonnes of fine zinc in
concentrates, he said.

           Av Gregorio Escobedo
           710 Jesus Mara
           Lima, Peru
           Tel: +51 1 219-4000
           Fax: +51 1 261-9716
           Mr. FMG Sayan (Francisco), Chairperson


CITGO: Uncertainty Over Liquidity Pulls Down Debt Ratings
Citgo Petroleum had its senior unsecured long-term debt rating
downgraded to Ba3 from Ba2 by credit rating agency Moody's.
According to Business News Americas, the ratings are being kept
under review for further downgrade. Moody's also downgraded
Citgo's senior implied rating to Ba3 from Ba1.

The downgrades came amid a general strike in Venezuela that has
clouded Citgo's liquidity, as well as its financial performance.
Moody's suggested the Ba3 rating reflects the expectation that
Citgo will become more highly leveraged following a planned sale
of US$550 million in new unsecured notes and potential dividend
flows to direct parent PDV America.

CITGO/PDV AMERICA: S&P Changes CreditWatch Listing to Developing
Standard & Poor's Ratings Services said Thursday it revised its
CreditWatch listing on refining and marketing company PDV America
Inc. to developing from negative. The ratings on PDV America,
including those of its wholly owned CITGO Petroleum Corp.
subsidiary, were placed on CreditWatch on Dec. 10, 2002.

Tulsa, Okla.-based PDV America, which is indirectly owned by
Petroleos de Venezuela S.A., has about $2 billion in debt and
capital lease obligations outstanding.

"The revision of the CreditWatch listing to developing reflects
the potential for a ratings upgrade, downgrade, or affirmation,
depending on the success of the efforts to restore liquidity,
which is tied to maintenance of improved crude oil shipment
volumes from Venezuela and access to external financing," said
Standard & Poor's credit analyst Bruce Schwartz. "However, if
CITGO is unable to complete a proposed bond offering, ratings on
PDV America and CITGO likely will be lowered because PDV
America's liquidity could be insufficient to meet 2003
obligations barring financial assistance from PDVSA or access to
alternative external financing," he continued.

CITGO also announced Thursday that it will sell $550 million in
new unsecured notes, which would raise the company's liquid
resources to about $800 million. The proceeds of the offering
will be retained by CITGO to reduce outstanding bank debt and
meet potential calls on the company's resources (i.e., provide
for the potential termination letters of credit posted on behalf
of CITGO, working capital needs, and maturing debt at PDV

Following the completion of the debt offering, Standard & Poor's
will reevaluate its ratings on PDV America. A ratings upgrade
would be contingent on:

--PDV America raising at least $200 million of additional
external funds to fortify liquidity;

--Continued shipments of Venezuelan crude oil at or near crude
supply agreement volume minimums with continuing advantageous
trade terms, which implies that Venezuelan political conditions
will sufficiently stabilize to prevent a reversion to volume
disruptions; and

--Sufficiently buoyant refining margins that enable CITGO to
generate at least $700 million of operating cash flow in 2003.

If CITGO does not complete the notes offering, the corporate
credit rating and all ratings of PDV America and CITGO likely
will be lowered by at least one notch.

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

IBH: To Voluntarily Delist From The Nasdaq Smallcap Market
International Briquettes Holding (Nasdaq: "IBHVF") said that the
Company will voluntarily delist its shares from The Nasdaq
SmallCap Market ("Nasdaq"). The delisting is expected to be
effective from the opening of business on February 18, 2003.

Trading of the Company's shares on Nasdaq will cease upon
delisting. The Company's shares will continue to trade and be
listed on the Caracas Stock Exchange. The shareholders of the
Company approved the delisting of the Company's shares at the
Company's annual shareholder meeting held on January 27, 2003.
The delisting of the Company's shares was sought in light of the
particular situation of the Company and the need of using
efficiently its resources. For these reasons, the Company decided
that the administrative costs of maintaining a listing on the
Nasdaq SmallCap Market were not justified.

Individuals who wish to sell the Company's shares on the Nasdaq
SmallCap Market before the close of trading on February 17, 2003
should consult their brokers.

CONTACT:  International Briquettes Holding, IBH
           Armando Rond˘n, Investor Relations
           Telephones: (58-212) 707.62.80 / 61.27
           Telefax: (58-212) 707.63.52


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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