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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, February 17, 2003, Vol. 4, Issue 33

                           Headlines


A R G E N T I N A

ARGENTINE UTILITIES: Government To Hold Ownership Debate
VINTAGE PETROLEUM: Hits 2002 Production, Cash Flow Targets
VINTAGE PETROLEUM: Reports 2002 Operational Results
* Argentina May Sell 10% of Stake in State Banks


B E R M U D A

TYCO INTERNATIONAL: Announces Debenture Repurchase Status


B R A Z I L

ACESITA: Vitoria Sale Prompts Fator Stock Outlook Upgrade
AES CORP.: Reports $6.51 Per Share Loss for 2002
AES CORP.: Re-Shapes Management Structure
ELETROPAULO METROPOLITANA: Brazil To Decide On Debts In 90 Days
* Brazil May Get $1B World Bank Loan Soon


C H I L E

ENDESA: Generates 161,825 GWh of Electricity in 2002
MADECO: Renews Capitalization Process Once Again


C O L O M B I A

MILLICOM INTERNATIONAL: Completes Sale Of Colombian Operations


J A M A I C A

JUTC: Teachers' Strike Reduces Passenger Load


M E X I C O

ALESTRA: Launches Cash Tender Offers; Exchange Offers
PEMEX: Warns of Oil Shortage; Opposition Party Wants MCS Revoked
SANLUIS CORPORACION: Denies Involuntary Bankruptcy Proceedings
TV AZTECA: Settles Suit With Pappas Telecasting
UNEFON: Mexican Court Denies Nortel's Bankruptcy Mandate
UNEFON: Looks To Expand Operations, Increase Client Base
VITRO: Issuing Ps. 1.14 Billion Medium Term Note In Mexico


P A R A G U A Y

* Government Denies "Put" Option, S&P Cuts Foreign Currency 'SD'


V E N E Z U E L A

PDVSA: Citgo Sale Still Pending Further Evaluation
PDVSA: Government Assembly Expected to OK Bail Out Funds


     - - - - - - - - - -

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A R G E N T I N A
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ARGENTINE UTILITIES: Government To Hold Ownership Debate
--------------------------------------------------------
The Argentine government plans to hold a public discussion to
determine ownership of utility companies after customer
complaints increased last year said Cabinet Chief Alfredo
Atanasof. Bloomberg, in a report, revealed a survey conducted by
Catterberg y Asociados, which showed that 65% of Argentines
believe that the next government should renegotiate contracts
with utility companies due to poor service.

The country will hold presidential elections on April 17, and the
new administration would take over on May 25.

Meanwhile, 23% of the 500 people surveyed said that the
government should take over the running of the companies, while
only 7% believe that the existing contracts should be maintained.
The survey, which claims an error margin of 4.4%, was conducted
between January 9 and January 11 in major cities throughout the
country.

Bloomberg said that power surges in the country have damaged
equipment, railroad upgrades are overdue and water companies have
put off flood-prevention work.


VINTAGE PETROLEUM: Hits 2002 Production, Cash Flow Targets
----------------------------------------------------------
Vintage Petroleum, Inc. announced that it achieved its 2002
targets for production, cash flow and EBITDAX as well as targets
for certain of its key costs. With the recent closing of the sale
of its Ecuador properties, Vintage has exceeded its goal of
reducing debt by $200 million. In addition, reserve additions
from all sources replaced 123 percent of the company's production
at a finding cost of $3.23 per equivalent barrel (BOE).

Large non-cash charges for the impairments of both goodwill and
oil and gas properties and the impact of the cumulative effect of
an accounting change earlier this year, nearly all of which
related to Vintage's operations in Canada, drove 2002 financial
results to a net loss of $143.7 million, or $2.27 per share, for
the year ended December 31, 2002. This compares to the prior
year's net income of $133.5 million, or $2.09 per diluted share.

Excluding the impact of these non-cash charges and other special
items, Vintage reported net income of $30.8 million, or $0.48 per
share, for the year ended December 31, 2002. Comparatively, net
income, excluding special items, for the year ended December 31,
2001, was $146.7 million or $2.29 per diluted share. A decrease
in production and lower realized oil and gas prices, combined
with higher exploration costs and interest expense, contributed
to the decline in net income, excluding special items.

Total production, including Ecuador production now classified as
a discontinued operation, totaled 32.5 million barrels of oil
equivalent (BOE), exceeding Vintage's 2002 target of 32.1 million
BOE. Total production from continuing operations for the year of
31.3 million BOE was down six percent from 33.2 million BOE in
2001. Oil production dropped four percent to 19.7 million barrels
and natural gas production was down eight percent to 69.8 billion
cubic feet (Bcf). Increases in year-over-year production in
Canada and Argentina in 2002 related to acquisitions during the
second and third quarters of 2001. These increases were more than
offset by the combined effects of non-strategic asset sales in
the U.S. during the fourth quarter of 2001 and second quarter of
2002 along with natural production declines and the impact of a
reduced capital spending program, which was curtailed in order to
provide funds for debt reduction.

A 32 percent decrease in the realized price for natural gas and a
four percent decrease in the realized price for oil combined with
the lower production levels to result in an 18 percent decrease
in oil and gas revenues to $577.7 million, compared to $707.1
million in 2001. Including the impact of hedges, the company's
realized price for oil averaged $21.31 per barrel in 2002,
compared with last year's average price of $22.22 per barrel and
the company's realized price of gas for 2002 averaged $2.26 per
Mcf, compared to $3.30 per Mcf in 2001.

Lease operating costs in 2002 of $204.3 million were relatively
even with those of last year. However, before the $24.8 million
impact of the tax imposed in 2002 on Argentina oil exports, lease
operating expense per BOE decreased seven percent to $5.73,
compared to $6.16 in 2001 primarily as a result of the beneficial
impact of the Argentine peso devaluation on peso- denominated
costs.

Inclusive of the costs in Trinidad and Ecuador, which are now
classified as discontinued operations, total lease operating,
general and administrative and oil and gas DD&A expenses per BOE
of $6.56, $1.59 and $5.43, respectively, were all in line with
the company's 2002 targets.

Exploration expense of $42.7 million ($25.9 million after tax)
for 2002 included $10.0 million of seismic, geological and
geophysical costs and $32.7 million of dry hole costs and lease
impairments. This compares to 2001's exploration expense of $21.6
million composed of $9.7 million of seismic, geological and
geophysical costs and $11.9 million of dry hole costs and lease
impairments.

Interest expense rose 20 percent to $77.7 million as a result of
higher average debt outstanding, principally associated with
acquisitions in Canada and Argentina during 2001.

Cash provided by operating activities (determined in accordance
with generally accepted accounting principles in the United
States) for 2002 was $240.9 million. "Adjusted cash flow" as
shown below was $241.3 million for 2002, exceeding Vintage's 2002
target of $230 million. The table below reconciles cash provided
by operating activities to "adjusted cash flow" and lists the
adjustments necessary to provide comparability to the company's
cash flow target for 2002 (in millions):

   Cash provided by operating activities                $240.9
    Adjustments to remove impact of:
      Changes in working capital items related
        to operating activities                           (2.9)
     Current income tax provision associated
       with net gain on property sales                     6.5
     Current income tax benefit for loss on
       early extinguishment of debt                       (3.2)
   Adjusted cash flow                                   $241.3

FOURTH QUARTER RESULTS

For the fourth quarter 2002, Vintage recorded a net loss of
$131.6 million, or $2.08 per share, compared to net income of
$4.3 million, or $0.07 per diluted share, for the year-ago
quarter.

Net income for the fourth quarter of 2002, excluding special
items, was $2.9 million, or $0.05 per diluted share. This
compares to fourth quarter 2001 net income, before special items,
of $3.7 million, or $0.06 per diluted share. In comparison to the
year-earlier quarter, the company's significantly higher realized
oil and gas prices in the fourth quarter of 2002 were more than
offset by the 21 percent decline in production, higher
exploration costs, the tax on Argentine crude oil exports and
higher lease operating and G&A expenses on a BOE basis.

For the fourth quarter 2002, exploration expense totaled $21.1
million ($13.1 million after tax), comprised of $10.4 million of
costs associated with the An Naeem and Osaylan prospects in
Yemen, dry hole costs and lease impairments in North America of
$7.1 million and $3.6 million of geological and geophysical
expenses. Total exploration expense in the year-earlier quarter
totaled $6.5 million.

DISCONTINUED OPERATIONS

In order to contribute to the funding of the company's debt
reduction program, Vintage entered into agreements to divest all
of its interests in Trinidad and Ecuador in June 2002 and
December 2002, respectively. In accordance with Statement of
Financial Accounting Standards (SFAS) No. 144, Vintage was
required to reclassify the assets, liabilities and results of its
operations in these countries as discontinued operations for all
periods presented. These reclassifications had no impact on
previously reported net income (loss).

Amortization of goodwill -

Effective January 1, 2002, Vintage adopted SFAS No. 142 which
eliminated amortization of goodwill. In 2001, the company
recorded $11.9 million for amortization of goodwill. No tax
benefit is recorded for goodwill amortization.

Gain (loss) on disposition of assets --

Pre-tax gains (losses) on disposition of assets were $(0.7)
million, $26.8 million, $48.4 million (including $31.9 million
reported as discontinued operations) and $26.9 million for the
fourth quarters of 2002 and 2001 and the years 2002 and 2001,
respectively.

Oil and gas property impairments --

Vintage recorded non-cash charges for oil and gas property
impairments in the fourth quarter of 2002 of $98.7 million ($57.7
million after-tax) related primarily to its Canadian properties,
triggered by significant downward revisions to its Canadian oil
and gas reserves. In the third and fourth quarters of 2001, the
company recorded non-cash charges for oil and gas property
impairments totaling $29.1 million ($17.9 million after tax).
Expected future cash flows, used in determining impairments, are
impacted by oil and gas price expectations and changes in
reserves. As a result, it is possible that additional oil and gas
impairment charges may be incurred in the future.

Loss on early extinguishment of debt --

In the second quarter of 2002, Vintage incurred a non-cash charge
of $5.2 million ($3.2 million after-tax) and a cash charge of
$3.0 million ($1.8 million after tax) related to the
restructuring of its bank facility and the redemption of $100
million of its 9% Senior Subordinated Notes due 2005.

Impairment of goodwill --

SFAS No. 142 requires a test for impairment of goodwill at least
annually. As of December 31, 2002, the company performed this
test which resulted in a non-cash charge of $76.4 million. No tax
benefit is recorded for goodwill impairment charges. All of
Vintage's recorded goodwill relates to its Canadian operations
and this impairment was triggered by significant downward
revisions to its Canadian oil and gas reserves. Recorded goodwill
at December 31, 2002, is $21.1 million and is subject to future
tests for impairment at least annually.

Cumulative effect of change in accounting principle --

Effective January 1, 2002, Vintage adopted SFAS No. 142, which
eliminated the amortization of goodwill and requires goodwill be
tested for impairment at least annually. All of the company's
recorded goodwill relates to its Canadian operations. The initial
test for impairment as of January 1, 2002, was completed during
the second quarter of 2002 and resulted in the recording of a
non-cash charge of $60.5 million as the cumulative effect of
change in accounting principle, in accordance with the provisions
of SFAS No. 142. No tax benefit is recorded for goodwill
impairment charges.

VINTAGE ACHIEVES DEBT REDUCTION TARGET

Culminating with the January 2003 closing of the sale of its
interest in Ecuador, Vintage achieved its stated goal to reduce
debt by $200 million. Proceeds from the sale of its Ecuador
interests, coupled with proceeds received from non-core property
sales earlier in 2002 and the application of cash flow in excess
of capital expenditures in 2002, allowed Vintage to achieve its
target. Vintage's net debt (long-term debt less cash) at December
31, 2002, was $874 million. Pro forma for the estimated after-tax
proceeds from the sale of Ecuador, net debt would be
approximately $775 million. This compares to net debt at year end
2001 of $1,004 million. Vintage is considering additional debt
reduction in 2003 to continue its progress toward lower debt
levels. Currently, it is anticipated that such deleveraging would
be funded primarily by other non-strategic asset sales.

2002 RESERVES AND PRODUCTION REPLACEMENT

At year-end 2002, the company's estimated proved reserves of oil
and gas totaled 529.3 million BOE. This total reflects the impact
of 13.3 million BOE of dispositions arising from non-core
property sales in the United States and Trinidad during 2002 as
part of the company's debt reduction program. At year-end 2002,
the company's proved reserves include proved reserves in Ecuador
of 45.4 million barrels of oil (18 percent proved developed)
which were sold in January 2003. Pro forma for this sale,
Vintage's estimated year- end proved reserves would be 483.9
million BOE. Proved reserves at year-end 2001 were 535 million
BOE.

Based on 2002 year-end prices of $31.20 per barrel (NYMEX) for
oil and $4.79 per MMBtu (Henry Hub spot price) for gas and the
company's price differentials, the present value of estimated
future net revenues, before income taxes, discounted at 10
percent (PV10), attributable to total proved reserves was
approximately $4.0 billion at year-end 2002. This compares to a
PV10 of $1.9 billion at year-end 2001 calculated using year-end
2001 prices of $19.84 per barrel (NYMEX) for oil and $2.65 per
MMBtu (Henry Hub spot price) for gas.

During 2002, the company made oil and gas capital expenditures of
$129.4 million. Capital expenditures were limited to
approximately 54 percent of cash flow provided by operating
activities as a result of management's decisions to use a portion
of cash flow to execute its debt reduction program during 2002
and to restrict the level of capital expenditures in Argentina
pending stabilization of the economic and political environment.
Total reserve additions from all sources during 2002 were 40.0
million BOE at a cost of $3.23 per BOE, replacing 123 percent of
32.5 million BOE of production. Total reserve additions in 2002,
excluding revisions to reserves were 22.7 million BOE, replacing
70 percent of production at a cost of $5.70 per BOE. The
company's estimated three-year average all sources reserve
replacement rate and three-year average finding costs are 189
percent and $6.75 per BOE, respectively.

CANADA

Impairments of oil and gas properties and goodwill attributable
to Vintage's Canadian operations severely impacted the company's
reported results of operations for both the fourth quarter and
the full year 2002. The major drivers of these impairments were
negative reserve revisions that occurred in certain fields where
several major wells performed below expectations. These negative
revisions, along with production, reduced Canadian oil and gas
reserves considerably, thereby significantly reducing the
estimate of future recoverable reserves and similarly, future net
cash flows from these properties.

The company achieved its production target for Canada in the past
two quarters. Nevertheless, Vintage seeks to further improve the
performance of this business unit by concentrating on technology-
driven exploitation and exploration opportunities that will have
a greater impact on production.

After a little more than a year of familiarization, drilling and
performance review of its property base in Canada, the company
has determined that certain of its properties do not fit its
long-term growth strategy and thus near-term investment activity
will be reduced. In order to focus on its most meaningful
opportunities in Canada and continue to reduce financial
leverage, the company has decided to divest certain non-strategic
properties in Canada.

The sale of certain non-strategic assets in Canada will narrow
the focus of operations similar to the impact of past asset sales
in the U.S. and the most recent asset sale in South America.
Canada remains an important core area for Vintage and after the
sale of non-core assets it is anticipated to provide a strong
base from which to expand operations in the future.

2003 REVISED BUDGET AND TARGETS
The total 2003 non-acquisition capital budget has been increased
slightly to $185 million from the previous level of $180 million,
reflecting primarily the carryover of amounts not expended in
2002 related to the exploration program in Yemen. The 2003
exploitation budget for Canada has been reduced by $12 million
and reallocated to exploitation activities in the United States
and Argentina in approximately equal proportions. The following
table reflects the allocation of the 2003 non-acquisition capital
budget (in millions, except percentages):

             Exploitation   Exploration    Total      Percent
                                                     of Total

United States    $49           $31          $80
Canada            30             8           38
North America     79            39          118         64%
Argentina         48            --           48         26%
Other
  International    2            17           19         10%
                $129           $56         $185        100%

Percent of Total 70%           30%

Based on its $185 million non-acquisition capital spending plan,
Vintage's targeted production remains unchanged at 29.1 million
BOE in 2003. The company has assumed a slightly higher average
NYMEX price for 2003 of $26.00 per barrel of oil versus its
previous 2003 assumption of $25.00 per barrel. For natural gas,
the company has raised its assumed NYMEX price for the year to
$4.50 per MMBtu from its previous 2003 assumption of $3.50 per
MMBtu due to a perceived tighter supply environment.

Given its revised outlook for the 2003 capital budget,
production, assumed prices and costs enumerated in the
accompanying table, "Vintage Petroleum, Inc., Revised 2003
Targets" as well as other expectations, Vintage has established a
target for cash flow before all exploration expense, working
capital changes and current taxes associated with property sales
of $235 million, which is $20 million higher than the previous
target. Similarly, the revised target for EBITDAX in 2003 has
been increased to $330 million from the previous target of $295
million.

Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation, exploration, and development of
oil and gas properties and the marketing of natural gas and crude
oil. Company headquarters are in Tulsa, Oklahoma, and its common
shares are traded on the New York Stock Exchange under the symbol
VPI.

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

CONTACT:  VINTAGE PETROLEUM, INC.
          Robert E. Phaneuf
          Vice President - Corporate Development
          Tel: +1-918-592-0101
          Web site: http://www.vintagepetroleum.com


VINTAGE PETROLEUM: Reports 2002 Operational Results
---------------------------------------------------
Vintage Petroleum, Inc. announced today the results and status of
its recent operational activities and plans for 2003.

United States

During 2002, five gross (2.1 net) exploitation and exploration
wells were drilled with an 80 percent success rate. Fourth
quarter drilling activity included three gross (1.8 net) wells
with a 100 percent success rate. In addition, 32 workovers were
completed to bring the 2002 total to 104 workovers.

Planned exploitation activity for 2003 includes an increased
level of drilling beginning with the Luling and West Ranch Fields
in Texas and the Pleito Ranch Field in California during the
first quarter. The 2003 exploitation budget has been increased
from $43.6 million to $48.6 million. Thirty-five wells are
planned to be drilled or sidetracked, and workover projects are
planned for about 145 wells in 2003.

Vintage is participating in the drilling of the Norman #1, an
exploration well on the Richaud prospect developed from a 3-D
seismic survey in Terrebonne Parish in south Louisiana.

The well is currently drilling below 16,000 feet toward a
targeted total depth of 20,000 feet.

Results are expected during the second quarter of 2003. This gas
prospect targets multiple lower Miocene Operc sands that are
analogous to the producing sands in the prolific Lilly Boom field
which is 3 miles to the southwest of and on trend with the
Richaud prospect. Vintage holds a 38 percent working interest in
this prospect that has estimated gross unrisked reserve potential
in excess of 100 billion cubic feet (Bcf) of natural gas.

Using an established play concept in the Permian basin of west
Texas, Vintage has generated three, multi-well, lower-risk gas
prospects and will use horizontal drilling and fracture
stimulation technology to produce gas from tight carbonate rocks
in areas of known production.
Vintage has an interest in over 19,500 gross acres encompassing
these three exploration prospects. The first well has begun
drilling on the first of these, the Leatherwood prospect, in
Terrell County, Texas. Leatherwood is targeting Devonian Age
tight carbonates at approximately 15,800 feet and total estimated
gross unrisked reserve potential of 170 Bcf for this multi-well
prospect. Vintage has a 33 percent working interest in this well
and results are expected during the second quarter. Two
additional prospects are scheduled for drilling during the second
and third quarters of 2003, and the exploration team continues to
generate additional tight carbonate prospects.

Vintage is also pursuing Oliocene and Miocene Age exploration
prospects offshore Texas. The company has acquired over 500
square miles of 3-D seismic data which is being used to generate
multiple prospects. Lease acquisition should occur during the
first half of 2003 and drilling is anticipated to begin by late
2003.

Argentina

Since its entry into Argentina in 1995, Vintage has drilled a
total of 305 wells with a success rate of 96 percent as of
December 31, 2002. During 2002, Vintage elected to reduce its
capital expenditures as a result of the political and economic
conditions in Argentina and drilled only 17 exploitation wells
and completed 91 workovers. All of the 17 drill wells were
successful and were drilled on locations covered by Vintage's 3-D
seismic surveys of the San Jorge basin.
The stabilization in Argentina's currency exchange rate,
reduction in the rate of inflation and Argentina's ongoing
negotiations with the IMF combined with attractive drilling
economics, resulted in the company's decision to reinitiate
drilling late in the fourth quarter. Vintage drilled three wells
with a 100 percent success rate in the Canadon Leon and Meseta
Espinosa concessions and completed 18 workovers during the fourth
quarter of 2002. A total of 178 square miles of new 3-D seismic
was recorded in the Las Heras/Piedra Clavada and Meseta Espinosa
concessions during 2002. Interpretation of this data is underway
to identify additional drilling prospects.

Capital spending for Argentina exploitation calls for increasing
activity levels during the year predicated upon the anticipated
continued political and economic stability which has been
achieved over the past months and the company's assessment of the
government's economic plans that emerge from the upcoming
elections. Planned 2003 activity in the San Jorge basin includes
an increased level of drilling, which began with a one-rig
program in early November 2002 and increased to a two-rig program
during the second week of February 2003.

The 2003 budget for Argentina has been increased to $48 million
from $43 million and allows for the addition of a third drilling
rig late in the second quarter. The program targets drilling 62
wells in the San Jorge basin and two wells in the Cuyo basin, a
substantial increase over the 17 well program in 2002. While
Argentine production declined throughout 2002 as a result of
shutting down substantially all drilling activity at the end of
the first quarter, the 2003 program targets a 10 percent increase
in fourth quarter 2003 oil production when compared to the same
period in 2002.

Canada

During the fourth quarter of 2002, 29 gross (23.9 net)
exploitation and extensional wells were drilled with a 61 percent
success rate. The company anticipates participating in 45-50
gross (30-35 net) wells during 2003. Exploitation activities will
comprise 73 percent of the 2003 budgeted capital expenditures
with the remainder allocated to exploration.

In the Sturgeon Lake area, two horizontal re-entries were drilled
and completed in the Devonian Leduc formation for a combined
average net rate of 615 barrels of oil per day (BOPD) during the
fourth quarter. Additional horizontal re-entries in 2003 will be
dependent on the performance of these wells. The exploitation
program in the Sturgeon Lake area targets bypassed, attic oil
accumulations identified with the aid of 3-D seismic. Infill
drilling in the Cretaceous Badheart gas pool has been deferred
due to a delay in the regulatory approval process. Vintage
anticipates securing all the necessary approvals during the
second quarter and plans to drill five to seven infill gas wells
during 2003.

Activity in the Grouard area during the fourth quarter continued
to focus on Devonian Gilwood oil targets. Three gross (2.2 net)
successful wells were drilled with a combined average net rate of
276 BOPD. An additional 16 square miles of 3-D seismic was
acquired and is under
evaluation for the identification of future prospects. Planned
2003 activity will continue to concentrate on high-graded oil
projects in the Sturgeon Lake and Grouard areas along with gas
opportunities in the Peace River Arch, East of Five and West
Central areas.

Vintage is continuing to build an inventory of exploration
prospects in Canada that may be placed on production within 12 to
18 months from discovery as well as high impact frontier and deep
basin plays. The first prospects are scheduled to begin drilling
during 2003.

Frontier Exploration

Vintage's second drilling campaign in Yemen drilled three wells
in 2002 based on 3-D seismic and geochemical surveys in the S-1
Damis Block. Drilling has commenced on the An Nagyah #3 well to
help assess the potential of the oil discovery in the Lam
formation made by the An Nagyah #2 during the fourth quarter of
2002. Pending the results of the An Nagyah #3, the company may
drill one or more additional wells in the current campaign.
Vintage has a 75 percent working interest in the block. In the
Northwest Territories of Canada, Vintage acquired additional
seismic and geochemical surveys during 2002 to aid in the
evaluation of its three exploration licenses that are 50 percent
owned and cover 880,000 gross acres in the central Mackenzie
valley of Canada.

Vintage and its operating partner initiated drilling operations
during late January on the Tree River C-36 well which has a
target depth of 6,200 feet and targets multiple geologic horizons
in the Devonian section. Three wells that were drilled but
unevaluated from the 2000/2001 winter drilling season will be
tested.

Vintage has a 70 percent working interest in two exploration
blocks situated in the Po valley, an industrial region of
northern Italy which has a well-developed production history and
pipeline infrastructure serving a highly developed gas market.
Vintage is the operator of the Bastiglia and Cento blocks
covering approximately 275,000 acres. The exploration program
targets gas in shallow Pliocene sands that are productive in this
area of the Po valley. Vintage's initial drilling campaign will
target gas in combination structural/stratigraphic traps based on
reprocessed 2-D seismic and newly acquired geochemical studies.
The process of well permitting is underway. Vintage intends to
spud the first of two exploration wells during the fourth quarter
of 2003 and drill to a target depth of 4,800 feet.


* Argentina May Sell 10% of Stake in State Banks
------------------------------------------------
The government of Argentina may sell 10% of its stakes in state
banks, in an effort to make their finances more transparent,
according to local daily, El Clarin. The country's economy
minister explained that the plan intends to "guarantee the
solvency and transparency of the state banks."

According to Oscar Lamberto, head of the senate budget
commission, the banks' financial statements would appear on the
Stock Exchange Commission and their shares would be traded.

State banks, Banco de la Provincia de Buenos Aires and Banco de
la Ciudad de Buenos Aires, turned down a plan to select an
advisor for the negotiations on the restructuring of the
country's US$95 billion of defaulted debt. Banco de la Nacion,
the country's biggest bank accepted the plan.

The government promised to select an adviser to satisfy one of
the requirements for a debt deferral plan granted by the
International Monetary Fund before the end of February.



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

TYCO INTERNATIONAL: Announces Debenture Repurchase Status
---------------------------------------------------------
Tyco International Ltd. (NYSE - TYC, BSX - TYC, LSE - TYI) on
Thursday announced the results of its offer to repurchase Zero
Coupon Convertible Debentures due February 12, 2021 issued by its
wholly-owned subsidiary, Tyco International Group S.A. Holders'
option to surrender their debentures for repurchase expired at
5:00 p.m., New York City time, on February 12, 2003.

Tyco has been advised by the depositary, U.S. Bank, N.A., that
$2,421,126,000 in aggregate principal amount at maturity of
debentures were validly surrendered for repurchase and not
withdrawn and Tyco has repurchased all of such debentures. The
purchase price for the debentures was $764.15 in cash per $1,000
in principal amount at maturity. The aggregate purchase price for
all of the debentures validly surrendered for repurchase and not
withdrawn was $1,850,103,433.



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B R A Z I L
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ACESITA: Vitoria Sale Prompts Fator Stock Outlook Upgrade
---------------------------------------------------------
Brazilian brokerage firm Fator Doria Atherina raised stainless
steelmaker Acesita's stock outlook, reports Business News
Americas.

"We decided to upgrade Acesita's shares based on the higher-than-
expected price the company obtained for the sale of its stake in
[Vitoria, Espirito Santo-based flat steelmaker] CST and due to
its preliminary figures reported for 4Q02, which beat market
expectations," Fator steel analyst, Luciana Machada, explained.

Belo Horizonte-based Acesita last week sold its 18.7% stake in
CST to a consortium, made up of Rio de Janeiro-based mining and
logistics giant CVRD and Luxembourg-based steel group Arcelor,
for US$227 million. The amount was reportedly 5% above the figure
offered by the buyers.

According to analysts, the proceeds of the sale will be used to
pay down the Company's US$1.3-billion debt and free funds for
investment that would have been used to pay interest.

Acesita's positive preliminary figures also indicated that the
Company will have a strong 2003, Machada suggested.

Figures showed a 29.3% increase in net revenues to BRL1.7 billion
(US$515mn) in 2002 compared to the previous year, while EBITDA
was up 53% at BRL432 million last year.

Acesita plans to release final results for 2002 including its
full income statement in March.

Machada forecasts that the Company will achieve net revenue of
BRL2.41 billion this year and BRL2.79 billion in 2004.

Acesita is also expected to post a net profit of BRL364 million
in 2003 and BRL494 million next year, Machada said.

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


AES CORP.: Reports $6.51 Per Share Loss for 2002
------------------------------------------------
AES Corporation(NYSE:AES): Diluted Earnings per Share Before
Charges were $0.78 for 2002; Parent Operating Cash Flow was
$1.095 Billion  The AES Corporation (NYSE: AES) announced
Thursday that net income from recurring operations for 2002 was
$421 million before certain charges. Diluted earnings per share
from recurring operations were $0.78 for the year. Net income
(loss) and diluted earnings (loss) per share for the year, after
all charges, were $(3.509) billion and $(6.51) per share,
respectively. For the year, revenues increased 13% to $8.6
billion.

For the quarter ended December 31, 2002, net income and diluted
earnings per share from recurring operations were $15 million and
$0.03 per share, respectively. Net income (loss) and diluted
earnings (loss) per share for the quarter, after all charges,
were $(2.766) billion and $(5.08) per share, respectively. Parent
Operating Cash Flow ("POCF") for 2002 was $1.095 billion.

Paul Hanrahan, President and Chief Executive Officer, commented,
"AES is on the road to recovery. Despite an extremely challenging
year for us and the entire sector, I am proud of the overall
progress AES made in 2002. As a result of our efforts last year,
we have significantly improved our liquidity situation. Looking
ahead to 2003, we are focused on substantially improving the
performance of our businesses across the company to provide value
to our shareholders and to position AES for long-term growth."

Barry Sharp, Chief Financial Officer, stated, "With our continued
emphasis on performance improvements and cash flow, we achieved
POCF of $1.095 billion for 2002. Combined with our successful
corporate refinancing at the end of 2002 and proceeds from our
asset sales program, we now have liquidity exceeding $500 million
and a flexible amortization schedule for continuing to reduce
debt at the parent company level over the next several years.
Looking forward to 2003, we expect consolidated net cash from our
subsidiary operating activities of approximately $2.2 billion -
which will enable cash distributions to the parent as POCF to
continue at an estimated $1.0 billion during 2003, further
supporting our continued progress toward a stronger balance
sheet."

AES's Expectations for 2003

Information contained in this release constitutes forward-looking
information statements within the meaning of the Securities Act
of 1933 and of the Securities Exchange Act of 1934. These
statements are not intended to be a guarantee of performance, but
instead constitute AES's current expectation based on reasonable
assumptions. Actual events and results may differ materially from
those projected. In addition to those listed below, important
factors that could affect actual results are discussed in AES's
filings with the Securities Exchange Commission, and readers are
encouraged to read those filings to learn more about the risk
factors associated with AES's businesses.

AES currently expects its earnings per share for 2003 before
discontinued operations, calculated in accordance with generally
accepted accounting principles, to be $0.50 per share. There are
a number of market factors, including foreign exchange rates,
commodity prices and interest rates, as well as other significant
business factors that could make our actual results vary from
this expectation. This expectation excludes the impact of
adopting new accounting principles and excludes the effects of
any future business acquisitions or dispositions.

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 176
facilities totaling over 60 gigawatts of capacity, in 33
countries. AES's electricity distribution network sells 108,000
gigawatt hours per year to over 16 million end-use customers.

http://bankrupt.com/misc/AES_CORP.htm

CONTACT:  AES Corp., Arlington
          Kenneth R. Woodcock, 703/522-1315
          Web site www.aes.com
          Investor relations: investing@aes.com


AES CORP.: Re-Shapes Management Structure
-----------------------------------------
The AES Corporation (NYSE: AES) announced Thursday organizational
changes intended to improve the Company's overall business
performance. The new management structure aligns reporting
responsibilities along two business lines as opposed to the
previous structure that was based on geographic regions. The new
business lines for organizational purposes are Electric
Generation and Integrated Utilities, each to be headed by one of
two Chief Operating Officers in the new organizational structure.

Effectively immediately, John Ruggirello, Executive Vice
President, becomes Chief Operating Officer for Generation. In
addition, AES has launched a global search to fill the new
position of Executive Vice President and Chief Operating Officer
for Integrated Utilities. Both COOs will report to Paul Hanrahan,
President and Chief Executive Officer. Mr. Hanrahan will serve as
acting Chief Operating Officer for Integrated Utilities until the
search is completed.

AES also announced that Joseph C. Brandt has been appointed Vice
President and Chief Restructuring Officer, and will report
directly to Mr. Hanrahan. Mr. Brandt has been responsible for the
restructuring of various troubled AES businesses since mid-2002,
and will continue with that responsibility.

"In the near term, we are focused on growing earnings and
shareholder value through operational excellence and performance
improvement," said Mr. Hanrahan. "This new management structure
is the best way for us to enhance performance, since the
performance issues in each business line cut across all
geographic boundaries. Although we made significant progress in
2002 as we grappled with the many challenges facing our industry,
we still have much room for improvement. That will be our main
focus in 2003 and beyond."

Mr. Hanrahan noted that as AES continues to expand its disclosure
of financial information to investors, the company will continue
to report financial information according to four business areas
(Contract Generation, Competitive Supply, Growth Distribution
Businesses and Large Utilities) and five geographic regions
(North America, Caribbean, South America, Europe and Asia).

In addition, AES announced that J. Stuart Ryan, Executive Vice
President and Chief Operating Officer for North America, will be
leaving the Company effective February 28, 2003 to pursue other
opportunities.


ELETROPAULO METROPOLITANA: Brazil To Decide On Debts In 90 Days
---------------------------------------------------------------
AES Corp. expects the Brazilian government to come to a
definitive solution for the debts owed by Eletropaulo holding
companies within 60-90 days, Business News Americas reports,
citing AES executive VP for Latin America Mark Fitzpatrick.

"We have heard some ministries have put some deadlines out there,
they are unofficial and we can't confirm them, but our
expectation is that in the next 60 to 90 days we will hear
something reasonably definitive about the long term solution to
the Eletropaulo holding company debt," he told analysts during a
conference call to discuss 2002 results.

"We are working with all the ministries and the bank that's
involved in this," Fitzpatrick said. "We sense there is a strong
desire on the part of the new government to simultaneously
reexamine the privatized electricity industry as well as come up
with an amicable solution on the debt that Eletropaulo holding
companies own through [national development bank] BNDES."

AES CEO Paul Hanrahan said: "We now have a new president in
Brazil and a new administration, and there is a crisis in the
electricity sector. There are big problems, and I think we and
others are watching to see how the government will respond to
this."

"We were not sensing that there is any interest in doing anything
as drastic as taking back the shares. There is a desire to try
and work something out as best we can tell," Hanrahan said.

According to AES CFO Barry Sharpe, the US parent company would be
tied in to a cross-default if Eletropaulo were to go into
bankruptcy. However, AES does not expect this to happen, Sharpe
added.

"If Eletropaulo files for bankruptcy it would be a cross-default
under the bond activity. There are significant reasons for it not
to do that [go into bankruptcy], because of the concession that
is in place and so we wouldn't expect that to occur because the
value of the business is in the concession," he explained.

"We also have some ability to manage that situation with respect
to other ownership percentages in other items," he said,
referring to other assets in Brazil that AES could use to pay off
the debts with BNDES.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


* Brazil May Get $1B World Bank Loan Soon
-----------------------------------------
Officials of the World Bank are scheduled to meet on February 25
to consider granting a loan of US$1 billion to Brazil to boost
the country's foreign-currency international reserves, said
Bloomberg, quoting Angela Furtado, a spokesperson for the bank.
The loan would be part of the US$1.5 billion in loans the lender
promised to lend Brazil this year.

Last year, the lender promised to have US$4.5 billion in loans
available to Brazil over the next 18 months, said the report.
Furthermore, the bank is considering lending the country between
US$6 billion to US$10 billion between now and the end of 2006,
when the term of President Inacio Lula da Silva expires.  The
president actively campaigned for help from the World Bank and
other lending agencies to ease the poverty in the country.

World Bank's vice president for Latin America and the Caribbean,
David de Ferranti said that the bank would disburse the money
immediately to bolster the country's reserves, pending a request
from the Brazilian government.



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

ENDESA: Generates 161,825 GWh of Electricity in 2002
----------------------------------------------------
-- In Spain, Endesa's electricity production amounted to 89,417
GWh in 2002, 3.2% higher than in the previous year.

-- In the rest of Europe, total electricity produced in 2002
reached 29,711 GWh, of which 59% corresponded to Endesa Italia.

-- Endesa's power plants in Latin America generated 42,455 GWh, a
decrease of 3.3% vs. 2001. This lower production is due to the
situation in Argentina: the drop in the electricity exports to
Brazil since February, gas restrictions and a lower demand.
Disregarding these, output in the rest of countries increased by
3.9%.

Endesa (NYSE:ELE) carries out its electricity business in Spain,
Latin America and some areas of the European Mediterranean
countries.

The electricity generated in the countries where Endesa and its
affiliates operate reached a total volume of 161,825 GWh in 2002.

In Spain, total generation was 89,417 GWh, a 3.2% increase
against 2001 in homogeneous terms, that is, without taking into
account the output from the power plants sold to Enel Viesgo.

During 2002, Endesa kept its leadership position in the Spanish
electricity generation market. The market share in the mainland
generation market, including the purchases from the Special
Regime and the imports, was 42% vs. 41.1% the previous year.

The commisioning of the two new CCGTs of San Roque and Besos
(1,732 GWh) together with the higher utilization of the fuel-gas
power plants than in 2001 (17%), offset the low hydro generation
in 2002, -28% vis-a-vis 2001, compared with the rest of the
sector that experienced a decrease of 44%.

It is worth noting that the new CCGTs have shown a very
satisfactory performance, with an availability rate over 85%, far
better than what could be expected for these plants in the first
months of operation.

Endesa's net generation in the mainland amounted to 78,161 GWh, a
3.1% increase over last year and against a 1% decrease for the
rest of the sector.

In the Canary and Balearic Islands and in the extrapeninsular
cities of Ceuta and Melilla the net generation increased 3.9% to
11.256 GWh.

The total electricity generated by Endesa's plants under Special
Regime in Spain in 2002, was 5,153 GWh against 5,138 GWh in 2001.
Endesa's market share in this sector is 15%.

As for the rest of Europe, total electricity generated was 29,711
GWh in 2002, of which 59% corresponded to the electricity
generated by Endesa Italia.

Endesa's power plants in Latin America generated 42,555 GWh, 3.3%
less than in 2001. This decrease is due the macroeconomic
situation in Argentina resulting in a lower amount of electricity
exports to Brazil since February 2002, gas restrictions and a
lack of demand. Generation by our plants in Latin America ex-
Argentina increased by 3.9%.

In Brazil, the companies where Endesa participates, generated
2,704 GWh, a 9.3% rise vs. 2001. In Colombia the generation
increased by 5% to 10,699 GWh. In Chile, the increase in
electricity production was 3.5% to 16,285 GWh. In Argentina the
total generation was 8,600 GWh, a 23.4% drop, and in Peru 4,409
GWh, a decrease of 2.3% against 2001 figures.

              ENDESA'S ELECTRICITY GENERATION IN 2002

                         . (net GWh)


GWh                                 SPAIN  LATAM EUROPE  TOTAL
----------------------------------------------------------------
Net Generation                     89,417 42,697 29,711 161,825
   - Hydro                           7,942 34,545  1,270  43,757
   - Thermal                        40,380  1,069 14,587  56,036
   - Fuel/ Gas                      12,700  7,083 13,854  33,637
   - Nuclear                        28,395                28,395
-----------------------------------------------------------------

Out of the total net generation in Spain, 45% correspond to
conventional thermal generation, especially to coal generation
plants, that once more showed their high competitiveness and had
an key role in the mainland demand coverage, offsetting the
decrease in the hydro generation due to the severe drought in
2002.

In Latin America, output increased by 1.6% vs. 2001, reaching
34,545 GWh which represents an 80% of the total electricity
production of the continent in 2002. It is worth mentioning that
most of Endesa's generation in the region comes from hydro
plants,

In Europe, 59% of the electricity generated in 2002 corresponded
to Endesa Italia's plants that generated a total amount of 17,551
GWh, of which 79% comes from fuel plants.

CONTACT:  Jacinto Pariente
          North America Investor Relations Office
          Telephone no. 212/750-7200
          URL: http://www.endesa.es


MADECO: Renews Capitalization Process Once Again
------------------------------------------------
Ailing Chilean copper wire and cable manufacturer Madeco plans to
embark on another capital increase in order to comply with a
condition established by 14 creditors, with whom the Company
recently reached a debt restructuring agreement.

According to Dow Jones, Madeco struck a deal with 14 creditor
banks on a US$120-million restructuring of debt, conditioned upon
a minimum CLP49.40 billion capital increase, roughly US$66
million. In this light, Madeco will seek CLP92.48 billion
($1=CLP748.70) in a fresh round of capitalization, which includes
the issuance of 3.8 billion new shares at a CLP24.19 issue price.

Late last year, an attempted capital increase failed after Madeco
was able to raise just some US$50 million, falling short of the
US$60 million amount that it needs to pay to meet short-term bank
debts.

This time around, controlling shareholder Quinenenco SA has
agreed to subscribe to the CLP49.40 billion total, proceeds of
which will go to pay Madeco's creditors 30% of the debt owed each
bank. The remaining 70% is to be paid in seven years, with a
three-year grace period, Madeco said.

Madeco has been undergoing financial restructuring since last
year after problems in Argentina and Brazil hit company earnings,
making payment on its US$330 million in debt difficult.

In addition to cables, Madeco makes finished and semi-finished
non-ferrous products based on copper, aluminum, related alloys
and optical fiber as well as flexible packaging products for use
in the mass consumer market for food, snacks and cosmetics
products.

CONTACT:  MADECO
          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          E-mail: mfl@madeco.cl
          Home Page: http://www.madeco.cl
          Contacts:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545
          E-mail: ir@madeco.cl



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

MILLICOM INTERNATIONAL: Completes Sale Of Colombian Operations
--------------------------------------------------------------
Millicom International Cellular S.A., the global
telecommunications investor, announces it has successfully
completed the sale of its Colombian operation, Celcaribe S.A., to
Comcel S.A., a subsidiary of America Movil. The net proceeds for
Millicom's interest in the equity of Celcaribe S.A. are US
$9,625,000, which have been paid on completion.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 17 cellular
operations and licenses in 16 countries. Millicom's cellular
operations have a combined population under license (excluding
Tele2) of approximately 369 million people. In addition, Millicom
provides high-speed wireless data services in seven countries.

Millicom also has a 6.8% interest in Tele2 AB, the leading
alternative pan-European telecommunications company offering
fixed and mobile telephony, data network and Internet services to
over 16 million customers in 21 countries. Millicom's shares are
traded on the Nasdaq Stock Market under the symbol MICC.

Lazard is acting for Millicom International Cellular S.A. in
connection with the exchange offer and consent solicitation and
no-one else and will not be responsible to anyone other than
Millicom International Cellular S.A. for providing the
protections offered to clients of Lazard nor for providing advice
in relation to the exchange offer or consent solicitation.

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

           Jim Millstein
           Lazard, New York
           Phone: +1 212 632 6000

           Peter Warner
           Daniel Bordessa
           Cyrus Kapadia
           Lazard, London
           Phone: +44 20 7588 2721

           Andrew Best
           Investor Relations
           Shared Value Ltd, London
           Phone: +44 20 7321 5022
           Home Page: http://www.millicom.com



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

JUTC: Teachers' Strike Reduces Passenger Load
---------------------------------------------
The Jamaica Urban Transit Company (JUTC) said Tuesday that the
strike staged by teachers in the country reduced its passenger
load by about one-third, reports the Jamaica Observer. The strike
forced children to stay home, decreasing the Company's
passengers, and exacerbating its financial problems.

Errol Lee, the Company's head of communications said, "School
children represent one-third of the passenger load."

Students pay $10, which is one-half of the regular fare, to ride
JUTC buses. The Company's daily income is estimated to be around
$5 million from about 350,000 passengers.

The four-year-old state-owned bus company has been struggling
with daily losses of about $3.6 million. Its net worth as of Feb.
2002 is negative $1.13 billion. In the last week of January, JUTC
retrenched 280 workers in line with its plan to save $700 million
over the next 15 months.



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

ALESTRA: Launches Cash Tender Offers; Exchange Offers
-----------------------------------------------------
Alestra, S. de R.L. de C.V. ("Alestra") announced on Thursday the
launch of cash tender offers, exchange offers and consent
solicitations for all of its outstanding Senior Notes.

For each $1,000 principal amount of its outstanding 12 1/8%
Senior Notes due 2006, Alestra will offer (i) $970 principal
amount of new Senior Step-Up Notes due May 2008, and an early
consent payment of $30 principal amount of those new notes or
(ii) a cash payment of $400 and an early consent payment of $30.
The Senior Step-Up Notes due May 2008 will pay cash interest of
5.0% until May 2006 and 7.0% thereafter. For each $1,000
principal amount of its outstanding 12 5/8% Senior Notes due
2009, Alestra will offer (i) $970 principal amount of new Senior
Step-Up Notes due February 2011, and an early consent payment of
$30 principal amount of those new notes or (ii) a cash payment of
$400 and an early consent payment of $30. The Senior Step-Up
Notes due February 2011 will pay cash interest of 5.0% until
August 2006 and 8.0% thereafter. The early consent payments will
be payable only to those holders of Senior Notes who tender their
Senior Notes prior to the early consent payment deadline which is
11:59 p.m. New York City time on February 27, 2003, unless
extended. Holders of Alestra's outstanding Senior Notes will be
able to elect the applicable exchange offer, cash tender offer,
or both, subject to proration. Holders who tender their Senior
Notes in the offers will not receive any accrued and unpaid
interest on those notes.

The offers will expire at 11:59 p.m., New York City time on March
13, 2003, unless extended. If the offers are consummated, the
restructuring, including the tender offers, the early consent
payments and expenses, will be financed by a capital contribution
from Alestra's shareholders in the amount of $80 million which
will be provided 51% by Onexa and 49% by AT&T. The offers are
conditioned among other things on the receipt of tenders of at
least 95% of the outstanding Senior Notes.

Prospectuses are being mailed to holders of record of the Senior
Notes. Holders may also obtain copies of the materials by calling
the Information Agent, D.F. King at 212/269-5550.

A registration statement relating to the new securities has been
filed with the Securities and Exchange Commission and is
effective as of February 12, 2003. These new securities may not
be sold nor may offers to buy be accepted prior to the time the
Company has obtained the necessary authorizations from the
Comision Nacional Bancaria y de Valores de Mexico. This release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall any sale of these securities in Mexico or
in any U.S. state or territory in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of Mexico and any such U.S. state or
territory.

This announcement and the cash tender offers, exchange offers,
and consent solicitations which are the subject hereof are not
being made in any jurisdiction in which, or to any person to
whom, it is unlawful to make such announcement and /or cash
tender offers, exchange offers and consent solicitations under
applicable securities laws. This announcement shall not under any
circumstances create any implication that the information
contained herein is correct as of any time subsequent to the date
hereof, or that there has been no change in the information set
forth herein or in the affairs of the Company or any of its
affiliates since the date hereof. No indications of interest in
the offers are sought by this press release.

Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a
leading provider of competitive telecommunications services in
Mexico that it markets under the AT&T brand name and carries on
its own network. Alestra offers domestic and international long
distance services, data and internet services and local services.

Morgan Stanley & Co. Incorporated is acting as dealer manager and
solicitation agent for the cash tender offers, exchange offers
and the consent solicitations.

CONTACT:  ALESTRA, S. DE R.L. DE C.V.
          Sergio Bravo, (52-818) 625-2269
          sbravo@alestra.com.mx

              or

          Alberto Guajardo, (52-818) 625-2219 (Investor
                                     Relations)
          aguajard@alestra.com.mx

              or

          Morgan Stanley & Co. Incorporated
          Heather Hammond, 800/624-1808
          11 212 761-1893 (international callers call collect)


PEMEX: Warns of Oil Shortage; Opposition Party Wants MCS Revoked
----------------------------------------------------------------
Members of the opposition party, Institutional Revolution Party
(PRI), in Congress threatened to go to the Supreme Court if the
Multiple Service Contracts (MCS) are not revoked, said Mexico
City daily El Universal Wednesday.

Senator David Jimenez of PRI alleged that Petr¢leos Mexicanos
(Pemex) director Ra£l Mu¤oz Leos tried to justify the contracts
through constitutional breaches.

Senator Manuel Bartlett accused Pemex of "handing over gas
exploration and exploitation in violation of the Constitution,
because it is prohibited."

"This is not Pemex's wealth, nor does it personally belong to the
administration of Mr. Vicente Fox; it is the wealth of the
Mexican nation," he said.

However, Mr. Mu¤oz and the National Action Party (PAN) argued
that the move is not aimed at privatizing the oil sector.
According to Mr. Mu¤oz, the MSCs are essential to boost private
sector investment in the hydrocarbons sector and overturn the
decline in natural gas production.

Mr. Mu¤oz said the contracts merely facilitate a grouping of
several services into a single contract, and that Pemex would be
responsible for overseeing the contractors' activities and would
retain the right to all hydrocarbons produced.

He added that natural gas production in the internal market,
which is expected to reach around 4 billion cubic feet a day
(bcf/d) in 2003, is well short of expected demand of 5.2bcf/d,
which is about 23 percent higher than in 2002. The MSCs, he said,
would reduce natural gas imports by one-half by 2006 and save
US$300million to US$800 million per year.

Mr. Mu¤oz said that despite expectations that the country would
nearly double national gas imports this year to 1.1bcf/d, from
592mcf/d, it would still fall short by 100mcf/d. The shortage
would adversely affect metal-producers, gas distributors,
petrochemical and power plants.

Pemex would also be reducing its supply to state power company,
CFE, to 1.7bcf/d even if the latter is expected to increase its
gas demands to 1.9bcf/d.

The Company plans to publish bidding rules in the second half of
February, call for bids in August, award the first contracts in
September, and winners start working in January next year, as
long as the congress approves it, said Pemex lawyer Cesar Nava.

Mexico is the only country among the world's top five crude oil
producers, where the biggest international oil companies do not
operate. The country banned international oil companies from
operating in its territory since 1938, when then-President Lazaro
Cardenas seized the hydrocarbon assets of British and North
American companies.


SANLUIS CORPORACION: Denies Involuntary Bankruptcy Proceedings
--------------------------------------------------------------
SANLUIS Corporacion is clarifying that it has not been declared
bankrupt, and according to our legal advisers, there is no legal
basis for its application, all of it supported by the fact that
we managed to restructure 100% of our Suspensions Group debt,
100% of our Brakes Group debt and 87% in the case of the holding,
achieving a 93.2% restructuring of the overall debt.

Based on the high restructuring levels achieved and the resulting
consensus that was obtained, the minimum requirements of the "Ley
de Concursos Mercantiles" (the Mexican bankruptcy law), have not
been met to declare that SANLUIS Corporacion is bankrupt or may
be declared bankrupt.

Therefore, our clients, suppliers, creditors, stockholders and
personnel must feel confident that SANLUIS will meet its
commitments since they are firm and irreversible, and therefore,
the continuity of our operations is ensured.

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


TV AZTECA: Settles Suit With Pappas Telecasting
-----------------------------------------------
Azteca America Signs Definitive Agreements to Resolve Legal
Disputes with Pappas Telecasting Companies

-TZA Receives $128 Million Note Secured by Los Angeles Station-

-Affiliations to Continue Under a New Framework-

TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish- language television programming
in the world, announced on Thursday that Azteca America Network,
the company's wholly owned broadcasting network focused on the
U.S. Hispanic market, has signed definitive agreements with
Pappas Telecasting Companies to resolve litigation between the
parties and establish a framework for working together in the
future. Pappas Telecasting Companies is the majority owner and
operator of Azteca America affiliates in the Los Angeles, San
Francisco-Sacramento, Houston and Reno markets.

The agreement settles all lawsuits and disputes between the
parties and results in the Pappas Telecasting Companies acquiring
the 25% equity interests owned by Azteca International
Corporation in the Houston and San Francisco- Sacramento
television stations, as well as satisfaction of the note in the
principal amount of approximately $52 million, plus accrued
interest, payable to TV Azteca by Pappas Telecasting of Southern
California LLC, the Pappas affiliate in Los Angeles. In return,
Azteca has received a note from the Pappas affiliate in Los
Angeles for $128 million, payable on May 31, 2003, with a
conditioned grace period of up to June 30, 2003. The note is
secured by the assets of the Los Angeles station KAZA-TV. If the
note is not paid by April 30, 2003, the principal amount will
increase to $129 million. The note will bear interest at the rate
of 11.6279% per year.

In addition, the parties have agreed that, if the note is not
paid in accordance with the agreed schedule, Azteca International
and the Pappas affiliate in Los Angeles will enter into a three-
year local marketing agreement (LMA) under which Azteca will
provide programming and services to the Los Angeles station KAZA-
TV. Azteca International will be entitled to retain all
advertising revenue derived from the programming it supplies to
the station and will pay Pappas Telecasting an annual LMA fee of
$15 million. However, Azteca's payments under the LMA will be
offset by the interest payable on the note. Accordingly, if
during the three-year LMA period no principal payments are made
on the note, then no cash payments will be required to be made by
Azteca for the LMA. The note may be prepaid, in whole or in part,
at any time.

If the LMA becomes effective, Azteca International Corporation
will also have the option to purchase, up to the permissible
statutory maximum of 25%, the assets of KAZA-TV; and to nominate
a qualified U.S. entity to acquire the remaining interest from
Pappas, for $250 million total price, less any then- unpaid
principal and interest on the note. The option must be exercised
no later than six months prior to the end of the three-year LMA
period. If the option is not exercised or the purchase of the
station is not completed by the end of the third year (with a
conditioned three-month extension), the annual LMA fee will
increase to $24.5 million, a portion of which would then continue
to be offset by the interest on the note, until the note is fully
paid. Azteca International Corporation may, after the original
three-year term of the LMA, require the note to be paid on two
years' notice, or if the purchase of the station is not completed
after the exercise of the option, on 21/2 year's notice. The LMA
will remain in effect as long as the note is not paid.

Under the settlement, the existing affiliation agreements for the
Pappas stations will continue in effect with certain
modifications. As modified, the affiliation agreements will
change to a 50-50 commercial time split framework, where network
advertising time is equally divided, in contrast to the previous
revenue sharing framework. The existing affiliation agreements
will continue in effect throughout 2003, and Azteca International
Corporation will have the option to extend the agreements until
May or June of 2004, after which the affiliation agreements will
be renewable for additional six-month periods unless either party
terminates them on 90 days notice.

Pappas Telecasting has also agreed to affiliate certain
additional stations with the Azteca America Network in several
smaller markets, to be announced at a later date.

Company Profile

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

Azteca America Network, a broadcast television network focused on
the rapidly growing U.S. Hispanic market, currently has
affiliation agreements with television broadcast stations
covering approximately 53% of the U.S. Hispanic population,
including stations in the Los Angeles, San Francisco, Sacramento,
Palm Springs, Santa Barbara, Fresno, and Bakersfield, California,
Las Vegas and Reno, Nevada, Miami, Orlando and Palm Beach,
Florida, Austin and Houston, Texas; as well as Albuquerque, New
York, Salt Lake City and Wichita markets.

    Investor Relations:

    Bruno Rangel                   Rolando Villarreal
    5255-3099-9167                 5255-3099-0041
    jrangelk@tvazteca.com.mx       rvillarreal@tvazteca.com.mx

    Media Relations:

    In Los Angeles

    Carmen Lawrence                Sonia Pena
    Weber Shandwick                Weber Shandwick
    310-407-6570                   310-407-6570
    clawrence@webershandwick.com   spena@webershandwick.com

    In Mexico City

    Daniel McCosh                  Tristan Canales
    5255-3099-9204                 5255-3099-1441
    dmccosh@tvazteca.com.mx        tcanales@tvazteca.com.mx

    Web site:  http://www.tvazteca.com.mx


UNEFON: Mexican Court Denies Nortel's Bankruptcy Mandate
--------------------------------------------------------
Mexican mobile operator Unefon emerged victorious from a case
lodged against it by Canadian technology supplier Nortel
Networks. Unefon chairman Moises Saba announced that a Mexican
judge definitively rejected Nortel's demand that Unefon be
declared bankrupt.

"There is no bankruptcy, Unefon is a company that financially is
moving ahead amazingly well. The case fell, is over and we are
waiting for the important part from Nortel, which is the case we
have in the United States," he said.

Unefon recognized that it had a US$300 million vendor financing
debt with Nortel, as well as a MXN950,000 debt for network
equipment supplied by Nortel. However, the Company argued that
the vendor financing debt does not come to term for another two
years and Nortel never actually billed it for the equipment.

Unefon suspended interest payments on the vendor financing debt
because it considered Nortel had failed to deliver the
infrastructure as originally agreed, preventing the telco from
operating at the intended capacity. Still outstanding is a
US$900-million lawsuit by Unefon against Nortel for failure to
deliver PCS network infrastructure worth US$70 million.

Unefon's major shareholders are Moises Saba and TV Azteca.

CONTACT:  Unefon S.A. De CV
          Head Office
          EdificioA
          Puriferico Sur 4119 Fuentes del
          Pedregal
          Mexico
          DF
          Mexico 14141
          Tel: +52 8582 50000
          Fax: +52 8582 5052
          Web site: http://www.unefon.com.mx/
          Contacts:
          Engr Moises M. Saba, Chairman
          Pedro L. Padilla, Vice Chairman

          Nortel Networks Corp.
          Head Office
          Suite 100
          8200 Dixie Road
          Brampton
          ONTARIO
          Canada
          L6T 5P6
          Tel  +1 905 863-0000
          Fax  +1 905 863-8423
          Web  http://www.nortelnetworks.com
          Contacts:
          Lynton R. Wilson, Chairman
          Frank A. Dunn, President & Chief Executive


UNEFON: Looks To Expand Operations, Increase Client Base
--------------------------------------------------------
Unefon is moving forward with its plans to expand its operations
to four more cities this year, Business News Americas reports,
citing Unefon CEO Adrian Steckel. The Company, which currently
covers the country's 15 largest cities, or 80% of Mexico's urban
population, has just initiated talks to select the technology
provider.

Unefon has a 4% market share, but Steckel is confident of growth
through new products and services. The executive projected 27%
growth in the client base, to reach 1.4 million users by year-end
compared to 1.1 million today.


VITRO: Issuing Ps. 1.14 Billion Medium Term Note In Mexico
----------------------------------------------------------
Vitro, S.A. de C.V. (NYSE:VTO; BMV: VITROA) announced that on
February 13th, 2003, it will issue a medium term note
(Certificados Burs tiles) in the Mexican market for Ps. 1.14
billion maturing on February 5th, 2009. The note will bear an
interest rate of 325 basis points over the 182-day Mexican CETES
This issue was granted a rating of AA-(mex) by Fitch M‚xico, S.A.
de C.V., rating agency. The rating implies a more solid credit
rating relative to other issuers or issues in Mexico.

This transaction is part of Vitro's previously stated strategy to
strengthen the Company's financial position while maintaining a
presence in the capital markets.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers, and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; fiberglass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers;
glassware for commercial, industrial and retail uses; plastic and
aluminum containers. Vitro also produces raw materials, and
equipment and capital goods for industrial use. Founded in 1909
in
Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries
have facilities and distribution centers in seven countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide.

CONTACT:  (Media Relations - Monterrey):
          Albert Chico Smith
          Vitro, S. A. de C.V.
          +52 (81) 8863-1335
          achico@vitro.com

          Media Relations - M,xico, D.F.:
          Eduardo Cruz
          Vitro, S. A. de C.V.
          +52 (55) 5089-6904
          ecruz@vitro.com

          Investor Relations
          Beatriz Martinez
          Vitro, S.A. de C.V.
          +52 (81) 8863-1258
          bemartinez@vitro.com

          (U.S. Agency):
          Luca Biondolillo/Susan Borinelli
          Breakstone & Ruth Int.
          (646) 536-7012 / 7018
          Lbiondolillo@breakstoneruth.com
          sborinelli@breakstoneruth.com

          Website: http://www.vitro.com



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

* Government Denies "Put" Option, S&P Cuts Foreign Currency 'SD'
----------------------------------------------------------------
Standard & Poor's Rating Services said Thursday that it lowered
its long-term foreign currency credit rating on the Republic of
Paraguay to 'SD' (Selective Default) from 'B-' and its short-term
foreign currency credit rating to 'SD' from 'C'. At the same
time, Standard & Poor's lowered its long-term local currency
credit rating on the republic to 'CCC' from 'B' and affirmed its
'C' short-term local currency credit rating. The outlook on the
long-term local currency rating remains negative.

The rating actions are based upon the failure of the government
of Paraguay to comply with the "put" option exercised by local
bondholders of U.S. dollar-denominated obligations. The bonds,
with US$20 million currently outstanding, mature in 2005;
however, the terms and conditions of this debt allow bondholders
to exercise a "put" option every year until maturity. The
government has not complied with these terms since investors
exercised the option on the bonds in late December 2002.

"The government of Paraguay is currently in negotiations with the
local banks that hold the defaulted bonds," said Sovereign
Analyst Sebastian Briozzo. "Nonetheless, given the government's
limited liquidity, full repayment of this debt seems unlikely in
the coming weeks," he added.

According to Mr. Briozzo, the Feb. 11, 2003, conclusion of the
impeachment process, which failed to remove President Gonzalez
Macchi, has provided more certainty as to how the political
transition will proceed. Presidential elections are scheduled for
April 27, 2003, and the inauguration of the new administration in
Aug. 15, 2003.

"Nonetheless, and despite minor signs of stabilization, after
four years of virtually no economic growth, economic and fiscal
deterioration have eroded the country's ability to honor its
payroll, other operating costs, and debt obligations, Mr. Briozzo
commented. "The failure of the government to comply with the
prerequisites for an agreement with the International Monetary
Fund has exacerbated these difficulties. In this regard, Paraguay
already has arrears with multilateral creditors that might place
disbursements scheduled for this year at risk," he said.

According to Standard & Poor's, at this point the government is
finding it difficult to secure alternative sources of financing
to cover both the fiscal deficit, estimated at around 3% of GDP
for 2003 or around US$120 million, and the maturing debt, which
equals approximately US$100 million. Relatively secure sources of
financing cover an amount similar to the debt payments, while the
government expects to bridge part of the estimated fiscal gap
with royalty revenue from the Itaip£ and Yaciret  dams. A final
determination on this is still being negotiated with the
governments of the Federative Republic of Brazil and the Republic
of Argentina.

ANALYSTS:  Sebastian Briozzo, New York 212-438-7342

           Lisa M Schineller, New York (1) 212-438-7352
           EMAIL: Lisa_schineller@standardandpoors.com

           Jane Eddy, New York (1) 212-438-7996
           EMAIL: Jane_eddy@standardandpoors.com



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

PDVSA: Citgo Sale Still Pending Further Evaluation
--------------------------------------------------
Petroleos de Venezuela SA (PDVSA) will only decide whether to put
Citgo Petroleum Corp., its U.S. oil unit, up for sale when an
ongoing review of the state oil company's assets is completed,
says Bloomberg.

"All of the company's businesses are under evaluation," PDVSA
President Ali Rodriguez said in a statement.

The statement came in response to strikers' claims that the
Company is negotiating the sale of Citgo. Earlier this month, Mr.
Rodriguez said that the Company would sell assets to pay for
investments needed to restore output.

PDVSA has been battling with a decline in revenue since the
strike, aimed at ousting Venezuelan President Hugo Chavez, began
in Dec. 2.


PDVSA: Government Assembly Expected to OK Bail Out Funds
--------------------------------------------------------
PDVSA, which is looking to raise funds in order to finance its
investment, is likely to get approval on its request to withdraw
US$1.1 billion from the government's FIEM rainy-day savings,
Reuters says, citing government representatives. The request was
presented to the National Assembly Wednesday, and according to
Angel Emiro Vera, vice president of the assembly's finance
commission, approval could come in next week.

"We have to approve it in the next week," Vera told Reuters in a
telephone interview.

Citing the central bank, Vera revealed PDVSA holds about US$2.44
billion in the FIEM, which had total deposits of US$2.58 billion
on Feb. 11. The proposed withdrawal would account for 42.5% of
the total in the FIEM, created in the 1990s to hold state savings
for use when oil revenues were scarce.

Assembly member Ricardo Sanguino, also part of the finance
commission, said the withdrawal was justified because the funds
would be used for investment.

In December, the assembly approved a reform in the FIEM law,
which allowed PDVSA swifter access to its savings in the fund.



               ***********


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
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