/raid1/www/Hosts/bankrupt/TCRLA_Public/030226.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

           Wednesday, February 26, 2003, Vol. 4, Issue 40

                           Headlines


A R G E N T I N A

CABLEVISION: Argentine Fitch Rates $1.5B of Bonds `D(arg)'
CLAXSON INTERACTIVE: Fitch Argentina Issues `raCC(arg)' to Bonds
EDENOR: $600M of Bonds Rated `raD' by Local S&P
EDESUR: Local S&P Rates $450M of Bonds `raCCC'
GAIN TRUST: Financial Trust Rated `raCCC'  by S&P

IMAGEN SATELITAL: Fitch Argentina Rates Corporate Bonds `D(arg)'
MULTICANAL: Fitch Issues Rates $1.05B of Bonds `D(arg)'
ROYAL AHOLD: Shocks Market With Reduced 2002 Earnings Forecast
ROYAL AHOLD: S&P Drops Credit Ratings On Earnings Adjustment
ROYAL AHOLD: Fitch Downgrades to 'BBB-/F3' Rating Watch Neg


B A R B A D O S

T GEDDES GRANT: Closing Down Operations by End-April


B E R M U D A

ANNUITY & LIFE: Reporting Big Losses for 4Q02
FLAG TELECOM: Hires New CEO to Navigate Recovery


B R A Z I L

AES CORP.: Steadfast In Brazil Despite Financial Difficulties
CIEN: Faces Default; Plans Sue Copel
TCP: Ordinary Board Meeting Minutes Summary Released
VARIG: Returning 10 Boeing Planes To GE In Merger Preparation
* Brazil To Auction BRL5.96 Billion of Debt on Tuesday


M E X I C O

CFE: Companies Gain More Time To Study Altamira V Bidding Rules
GRUPO TMM: Amends Registration Statement


T R I N I D A D   &   T O B A G O

CARONI LTD.: Agriculture Minister Confident of VSEP Acceptance
CARONI LTD.: Union Ready For VSEP Challenge
CARONI LTD.: Union Seeks Government Review On Factory Closure


U R U G U A Y

ANCAP: Board Authorizes Fuel Price Hike
CAYCU: Cofac Launches $7M Bid
* Uruguay's Financial Problems Drive Away Investors


V E N E Z U E L A

PETROZUATA: To Resume Operations Soon


     - - - - - - - - - -

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

CABLEVISION: Argentine Fitch Rates $1.5B of Bonds `D(arg)'
----------------------------------------------------------
Cablevision S.A.'s corporate bonds named "Obligaciones
negociables simples" were rated `D(arg)' by the Argentine branch
of Fitch Ratings, Ltd., on Wednesday. According to the National
Securities Commission of Argentina, the rating affects US$1.5
billion of the said bonds, whose maturity date was not disclosed.

The rating, based on the Company's performance as of the end of
September last year, means that the bonds are in imminent or in
current default.

Cablevision, owned by U.S. buyout fund Hicks, Muse, Tate & Furst
Inc. and VLG Acquisition Corp., posted a ARS2.99 billion (US$839
million) for the first three quarters of last year. The sharp
decline in the local currency resulted to an increase in the
Company's debt, which was at ARS2.97billion as of September 30,
2002.

CONTACT:  Cablevision Systems Corp
          Head Office
          1111 Stewart Avenue
          Bethpage
          NEW YORK
          United States
          11714
          Tel  +1 516 803-2300
          Fax  +1 516 803-2273
          Web site:  http://www.cablevision.com
          Contacts:
          Charles F. Dolan, Chairman
          William J. Bell, Vice Chairman
          James L. Dolan, President & Chief Executive
          Robert S. Lemle, Vice Chairman & Secretary

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO


CLAXSON INTERACTIVE: Fitch Argentina Issues `raCC(arg)' to Bonds
----------------------------------------------------------------
Corporate Bonds issued by Claxson Interactive Group, Inc. were
rated `CC(arg)' by Fitch Argentina Calificadora de Riesgo S.A. on
Wednesday.

The rating affects US$44.4 million of bonds described as
"Obligaciones negociables", according to Argentina's National
Securities Commission in its official web site. It was based on
the Company's financial health as of September 30, 2002.

The rating means denotes an extremely weak credit risk relative
to other issuers or issues in Argentina. Fitch said that the
Company's capacity to meet this financial obligation is depends
only on sustained, favorable business, or economic developments.

The announcement did not indicate the CUSIP and the maturity date
of the said bonds.

Claxson Interactive Group, Inc. is a multimedia company providing
branded entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through its assets in pay television, broadcast television, radio
and the Internet. Claxson was formed on September 21, 2001 in a
merger transaction, which combined El Sitio, Inc. and other media
assets contributed by funds affiliated with Hicks, Muse, Tate &
Furst Inc. and members of the Cisneros Group of Companies.
Headquartered in Buenos Aires, Argentina, and Miami Beach,
Florida, Claxson has a presence in all key Ibero-American
countries, including without limitation, Argentina, Mexico,
Chile, Brazil, Spain, Portugal and the United States.

CONTACT:  Claxson Interactive Group, Inc.
          Alfredo Richard
          Phone: +1-305-894-3588
          Web Site: http://www.claxson.com


EDENOR: $600M of Bonds Rated `raD' by Local S&P
-----------------------------------------------
Corporate bonds worth US$600 million issued by Argentine
electricity distributor, Edenor S.A., were rated `raD' by
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
on Thursday, announced the country's National Securities
Commission.

The bonds, described as "Programa Global de Obligaciones
Negociables" come due on November 5, 2006, and are classified
under the type "Program".

The rating, based on the Company's financial health as of the end
of September 2002, is issues to obligations when it is in payment
default, or when the obligor has filed for bankruptcy. The rating
agency said that the 'raD' rating is used when interest or
principal payments are not made on the date due, even if the
applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace
period.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mai: to ofitel@edenor.com.ar
          Home Page: http://www.edenor.com.ar


EDESUR: Local S&P Rates $450M of Bonds `raCCC'
----------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
issued an `raCCC' rating to US$450 million of corporate bonds
issued by Argentine distributor, Edesur S.A., said the National
Securities Commission of Argentina.

The rating, given on Thursday, means that the bonds are currently
vulnerable to non-payment, and is dependent upon favorable
business and financial conditions for the obligor to meet its
financial commitments on the obligation, based on definitions
given in the rating agency's web site. The rating was based on
the Company's performance as of the end of December last year.

The bonds, classified under "Program" are described as "Programa
de Obligaciones Negociables", but the maturity date was not
disclosed.

Edesur, which posted 2002 losses of US$56.6 million, is owned by
Endesa Spain's Latin American subsidiary Enersis (43%) and the
Distrilec investment group (56%), which in turn is owned by
Enersis (51%) and Pecom Energia (49%).

CONTACT:  EDESUR S.A.
          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos, 140, 3o P
          Capital Federal 1076
          Argentina
          Home Page: www.edesur.com.ar
          Tel.: 4370-3700/4370-3370
          Fax:4381-0708


GAIN TRUST: Financial Trust Rated `raCCC'  by S&P
-------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
gave a rating of `raCCC' to US$140 million of Financial Trust
named "Gain Trust T¡tulos de Deuda Vto. 2005."

An announcement in the official web site of the National
Securities Commission of Argentina described the financial trust
as "fideicomiso financiero", but the maturity date was not
indicated.

The rating, which was given on Thursday, means that the
obligation is currently vulnerable to non-payment, and is
dependent upon favorable business and financial conditions for
the obligor to meet its financial commitments on the obligation.


IMAGEN SATELITAL: Fitch Argentina Rates Corporate Bonds `D(arg)'
----------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. rated corporate bonds
of Imgagen Satelital S.A. `D(arg)', according to the National
Securities Commission of Argentina.

The rating was given on Wednesday, and affects US$80 million
worth of bonds called "Obligaciones Negociables", whose maturity
date was not indicated.

The rating of `D(arg)' indicates actual or imminent payment
default, according to the rating agency. The action was based on
the Company's performance as of the end of September 2002.

Imagen Satelital is a subsidiary of Claxson Interactive Group,
Incorporated.


MULTICANAL: Fitch Issues Rates $1.05B of Bonds `D(arg)'
-------------------------------------------------------
Fitch Argentina Calificadora de Riego S.A gave three sets of
corporate bonds issued by Argentine cable television operator,
Multicanal, S.A., a rating of `D(arg)'. The ratings, given on
Wednesday, were based on the company's financial position as of
September 30, 2002, said the National Securities Commission of
Argentina.

The affected bonds include US$1.05 billion of "obligaciones
negociables", classified under `program'.

Two sets of "obligaciones negociables", each worth US$125
million, were also issued the same junk ratings. These two were
classified under `simple issue.'

According to the rating agency, a rating of `D()arg' is assigned
to entities or financial commitments that are currently in
default.

Earlier this month, the Company, offered to pay 30 cents on the
dollar to holders of US$100 million of defaulted bonds.

The Company, which is majority owned by Argentina's largest media
group Clarin SA, offered to exchange the bonds for cash without
paying accrued and unpaid interest on its debt. Multicanal also
hired J.P. Morgan Securities Inc. as adviser for the exchange.
The offer will expire March 3, 2003, indicated a previous TCR-LA
report.

CONTACT:  MULTICANAL S.A.
          Avalos 2057
          C1431DPM Buenos Aires, Argentina
          Tel: 54 11 4524-4700
          Fax: 54 11 4370-5162
          Contact: Fabian Melnitzky
          E-mail: fmelnitz@redarg.com.ar


ROYAL AHOLD: Shocks Market With Reduced 2002 Earnings Forecast
--------------------------------------------------------------
- Financial statements for 2000, 2001 and interim results 2002 to
be restated
- CEO and CFO to resign
- EUR 3.1 billion new funding commitments obtained to support
liquidity position
- Enhanced focus on debt reduction

Overview

Ahold announces that net earnings and earnings per share under
Dutch GAAP and US GAAP will be significantly lower than
previously indicated for the year ended 29 December 2002. This is
due primarily to overstatements of income related to promotional
allowance programs at U.S. Foodservice which are still being
investigated. Based on information obtained to date, the company
believes that operating earnings for fiscal year 2001 and
expected operating earnings for fiscal year 2002 have been
overstated by an amount that the company believes may exceed US $
500 mln, with the majority of such amount occurring in the
expected operating earnings for fiscal year 2002. The
overstatements of the income discovered to date will require the
restatement of Ahold's financial statements for fiscal year 2001
and the first three quarters of fiscal year 2002.

In addition, the company announces that ICA Ahold, Jeronimo
Martins Retail and Disco Ahold International Holdings will be
proportionally consolidated under Dutch GAAP and US GAAP,
commencing with fiscal year 2002. The company will also restate
its historical financial statements so as to proportionally
consolidate under Dutch GAAP and US GAAP ICA Ahold, Jeronimo
Martins Retail, and Disco Ahold International Holdings. In
addition, the historical financial statements will be restated to
proportionally consolidate Bompreco and Paiz Ahold for the
periods during which they were 50% owned by the company.

The company also announces that it has been investigating,
through forensic accountants, the legality of certain
transactions and the accounting treatment thereof at its
Argentine subsidiary Disco. Because the investigation is ongoing,
Ahold cannot currently quantify the full financial impact of
these matters.

The Supervisory Board of Ahold announces that, in view of the
above, Ahold President and Chief Executive Officer, Cees van der
Hoeven, and Chief Financial Officer, Michael Meurs, will resign.
They will stay on for an appropriate period of time in order to
effect an orderly transition of affairs. The Chairman of the
Supervisory Board, Henny de Ruiter, has been designated to be
responsible for the daily supervision of the conduct of the
Executive Board and the business affairs of the company. Mr. De
Ruiter currently is a member of the Supervisory Board of N.V.
Koninklijke Nederlandsche Petroleum Maatschappij. In addition, he
is a member of the Supervisory Boards of Aegon N.V., Beers N.V.,
Heineken N.V. and Wolters Kluwer N.V.

As a consequence of the matters referred to above and, in
particular, the need to complete related investigations, the
company has deferred the announcement of its full year results
scheduled for 5th March. Ahold's auditors have also informed
Ahold that they are suspending the fiscal year 2002 audit pending
completion of these investigations.

Ahold has obtained EUR 3.1 billion commitments from a syndicate
of banks, including a EUR 2.65 bn credit facility and a EUR 450
mln backup facility.

ADDITIONAL INFORMATION

U.S. Foodservice overstatements

Recently, during the fiscal year 2002 year-end audit for U.S.
Foodservice, significant accounting irregularities were
discovered in the recognition of income including prepayment
amounts related to U.S. Foodservice's promotional allowance
programs. Based on information obtained to date, the company
believes that operating earnings for 2001 and expected operating
earnings for fiscal year 2002 have been overstated by an amount
that the company believes may exceed US $ 500 mln, with the
majority of such an amount occurring in the expected earnings for
fiscal year 2002. Ahold's operating earnings will be impacted by
the same amount.

The overstatements discovered to date will cause a restatement of
the financial statements under Dutch GAAP and U.S. GAAP for
fiscal year 2001 and for the first three quarters of fiscal year
2002. As a result of the complex nature of the promotional
allowance programs, extensive work is continuing as part of the
ongoing investigation to determine the exact amount of the
overstatement for each accounting period. These irregularities do
not affect net sales reported for U.S. Foodservice.

As noted above, a complete investigation ordered by the Audit
Committee of Ahold's Supervisory Board is continuing by outside
legal counsel and independent forensic accountants. Pending the
conclusion of this investigation, certain senior executives of
the U.S. Foodservice purchasing and marketing management team
have been suspended.

Proportionate Consolidation

Ahold has determined that ICA Ahold, Jeronimo Martins Retail and
Disco Ahold International Holdings will be proportionally
consolidated under Dutch GAAP and US GAAP, commencing from fiscal
year 2002. The company will also restate its historical financial
statements so as to proportionally consolidate under Dutch GAAP
and US GAAP ICA Ahold, Jeronimo Martins Retail and Disco Ahold
International Holdings. In addition, the historical financial
statements will be restated to proportionally consolidate
Bompreco and Paiz Ahold for the periods during which they were
50% owned by the company. Under proportional consolidation, Ahold
will consolidate its proportional share of each entity in its
financial statements. Previously, the full results of these
entities had been consolidated in Ahold's results with the
minority share in earnings and equity then deducted, during the
relevant periods. The decision to proportionally consolidate was
made on the basis of information that had not previously been
made available to the company's auditors.

There is no impact of these deconsolidations on Ahold's net
income, earnings per share and shareholders' equity under Dutch
GAAP. The impact under U.S. GAAP is currently being reviewed.

Disco

Ahold further announced that it has been investigating, through
forensic accountants, the legality of certain transactions and
the accounting treatment thereof at its Argentine subsidiary
Disco. The investigation to date has uncovered certain
transactions that are questionable. Ahold is in the process of
determining what actions it will take in response to these
preliminary findings. Until the investigation is complete, the
full financial impact of these findings cannot be determined. The
company is reviewing the appropriate changes to be made at Disco
including management changes but no final decisions have been
made on those issues yet.

Liquidity

Given the nature of the issues the company is announcing and the
consequent potential future impact on compliance with certain
financial covenants in existing credit facilities, Ahold has
obtained EUR 3.1 billion commitments from a syndicate of banks,
including a EUR 2.65 billion credit facility and a EUR 450 mln
backup facility to support the securitisation programs referred
to below. The facility is designed to replace the existing $2
billion credit facility, under which US $ 550 mln has been drawn,
as well as to provide Ahold additional lines of liquidity.

The facility is comprised of secured and unsecured tranches.
Ahold will pay a credit spread over EURIBOR that will depend on
Ahold's credit rating during the tenure of the facility. The
facility will have a term of 364 days and will contain a
financial covenant that the interest coverage ratio will not be
lower than 2.5. The facility is subject to customary conditions
precedent. For the unsecured tranche, certain additional
conditions precedent will apply, including the delivery of
audited 2002 financial statements of certain subsidiaries by May
31, 2003 and of Ahold by June 30, 2003.

In addition, the banks under U.S. Foodservice's and Alliant's
receivables securitization programs that were due to expire on
February 27 and 28, 2003, have agreed to extend the programs for
an additional 60 days.

The backup facility and the credit facility will provide adequate
funds for amounts coming due in 2003 under the securitization
programs if they are not further extended.

Cashflow and debt reduction

The three-year plan announced in November 2002 designed to
substantially increase free cashflow and significantly reduce
debt continues to be pursued. Capital expenditures are under
severe scrutiny. A very strong effort will be made to keep
working capital days unchanged, despite additional challenges
arising from recent events. Cost reduction programs have been
implemented throughout the company. The divestment of non-core
businesses and consistently under-performing core businesses is
proceeding according to plan. The scope of this divestment
program will be expanded in order to strengthen core businesses
in stable and profitable markets.

After a thorough review of all the consequences of recent events,
Ahold will announce specific targets for debt reduction.

Control and compliance

Last year Ahold launched a company-wide initiative to strengthen
controls and compliance. In view of recent events, this program
will be stepped up to ensure that the highest possible standards
of controls, compliance, disclosures and codes of professional
conduct apply throughout all Ahold group companies. Ahold's
business principles, policy guidelines and codes of professional
conduct will be strictly enforced.

Revised outlook

Prior to the discovery of the overstatements of U.S. Foodservice
operating earnings, Ahold's fiscal year 2002 earnings were within
the guidance given by the company on November 19, 2002 of an
earnings per share decline of 6-8% excluding goodwill
amortization, exceptional charges and currency impacts. As a
consequence of primarily the U.S. Foodservice overstatement,
Ahold's 2002 net earnings and earnings per share under Dutch GAAP
and U.S. GAAP will be significantly lower than previously
expected.

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


ROYAL AHOLD: S&P Drops Credit Ratings On Earnings Adjustment
------------------------------------------------------------
Standard & Poor's Ratings Services said Monday it lowered its
corporate credit ratings on Netherlands-based food retailer and
food-service distributor Ahold Koninklijke N.V. (Ahold) to
'BB+/B' from 'BBB/A-2'. In addition, Standard & Poor's placed its
long-term ratings on Ahold on CreditWatch with negative
implications.

"The rating actions reflect Ahold's weaker financial profile and
uncertainties with respect to its liquidity position, following
the group's announcement today [Monday] that it will restate its
financial accounts for 2002 and previous years," said Standard &
Poor's credit analyst and director, Hugues de la Presle. "Ahold
also announced that its chief executive and chief financial
officer are to leave the group."

The group's actions follow:

-- Accounting irregularities at its U.S. food-service
distribution arm, pertaining primarily to supplier rebates, which
have resulted in an overstatement of earnings before interest,
taxes, and amortization (EBITA) of about $500 million,
essentially in 2002 but also in 2001. By comparison, the reported
EBITA of Ahold's U.S. food-service operations in the first nine
months of 2002 were $587 million. Ahold has also unearthed
accounting irregularities in its Argentinean subsidiary Disco,
which it is not yet in a position to quantify.

-- The change of method of consolidation to proportional
consolidation from full consolidation for the group's joint
ventures, especially ICA
Ahold in Scandinavia and Jeronimo Martins in Portugal. Combined
on a fully consolidated basis, these two companies accounted for
slightly less than 40% of European sales.

"As a result of these earnings overstatements, Ahold's expected
2002 debt measures, which were already modest for the previous
ratings, will be significantly weaker and, therefore, no longer
commensurate with an investment-grade rating," said Mr. de la
Presle.

In addition, although Ahold has obtained a 364-day ?3.1 billion
($3.3 billion) facility from a syndicate of banks, with an EBITA-
to-interest coverage covenant of 2.5x, its liquidity position
remains at risk until the full extent of the restatement of its
accounts is clarified. In any case, Ahold's leeway under the
covenant mentioned above is likely to remain tight. The new
facility is destined to replace the existing $2 billion bank
facility, under which $550 million is currently drawn, as well as
the securitization program, under which approximately $850
million is currently outstanding, if they are not renewed. As
this new bank facility is to be partly secured, Ahold's bonds are
likely to be notched down to reflect contractual subordination.

"To resolve the CreditWatch status, we will primarily focus on
the extent of the accounting restatements, on their effect on
Ahold's liquidity position, and on the new management's strategy,
especially with respect to debt reduction and divestments," added
Mr. de la Presle.

ANALYSTS:  Hugues De La Presle, London
           Tel: (44) 20-7826-3731
           Email: hugues_delapresle@standardandpoors.com

           Christian Wenk, London
           Tel: (44) 20-7826-3511
           Email: christian_wenk@standardandpoors.com

           CorporateFinanceEurope@standardandpoors.com


ROYAL AHOLD: Fitch Downgrades to 'BBB-/F3' Rating Watch Neg
-----------------------------------------------------------
Fitch Ratings-London-24 February 2003: Fitch Ratings, the
international rating agency, has downgraded on Monday the Senior
Unsecured and Short-term ratings of Koninklijke Ahold N.V.
("Ahold"), the Netherlands based international food retailer, to
'BBB-' (BBB minus) from 'BBB+' and to 'F3' from 'F2',
respectively. The ratings have been placed on Rating Watch
Negative.

The ratings change reflects this morning's announcement regarding
earnings overstatement at US Foodservice, management changes and
further potential difficulties at its Argentine business, Disco.
It also acknowledges the mixed operating performance in Ahold's
primary market, the US supermarket sector, and the continued weak
financial performance it has experienced in its Latin American
operations. US operations accounted for 59% of sales and 63% of
operating profit in FY01. Fitch highlighted in September 2002
when assigning the previous ratings and Negative Outlook that
Ahold's ratings, due to the weak financial profile, were
conditional upon sustained positive performance in its core
markets.

Ahold's announcement covered a number of points. Following the
year-end audit by the external auditors, the company estimates
that operating earnings for FY01 and expected FY02 earnings have
been overstated by potentially over USD500 million, mainly from
US Foodservice. Investigations are also underway as to both
accounting treatment and specific transactions booked by Ahold's
Argentine operation, Disco. Furthermore CEO Cees van der Hoeven,
and CFO Michael Meurs will resign. Ahold also announced that it
has obtained EUR3.1 billion of commitments from banks to maintain
its liquidity. Under the new facilities, some EUR1.35bn will be
secured over unspecified assets of the company. Finally, the
group announced that certain operations will be proportionally
rather than fully consolidated in the future. These are ICA
Ahold, Jeronimo Martins Retail and Disco Ahold International
Holdings.

The overstatement of operating earnings is primarily based upon
inflated receivables figures linked to promotional allowance
programmes at US Foodservice. The financial impact of the
overstatement is considerable. The overstatement would indicate
that management control has been weak while basic profitability
within US Foodservice is questionable. Management as a whole has
had its credibility challenged over the last year following a
number of profit warnings. Today's [Monday] announcement left
little alternative but for the CEO and CFO to resign. Fitch
awaits further clarification from the company as to the potential
impact of its current investigations into the accounting and
transactions issues of its Argentine operations, Disco Ahold. US
Foodservice is but one business within the group. Food retail,
and especially US food retail, remains the core area of
operations. Recent figures demonstrate that US food retail has
suffered to some extent from both increased competition and the
general weakness in US consumer demand. Like-for-like sales grew
0.6% in Q302 (compared to 2.1% growth for Q202). Heavy
competition, which has been in evidence in the group's South
Eastern format, BI-LO, has now increased throughout the brand
portfolio. Ahold continues to benefit from the stability of its
Dutch operations as well as the positive contribution of the
Swedish business, ICA Ahold AB.

As Fitch stated in September 2002, the lease adjusted Net
Debt/EBITDAR ratio for Ahold has weakened in recent years from
3.6x in FY98 to 4.0x in FY01. Similarly, the adjusted interest
cover ratio (EBITDAR/Interest + Rent) has also shown
deterioration from 3.2x to 2.4x over the same period. Following
today's [Monday] announcement, Fitch would expect these ratios to
continue to deteriorate while Ahold becomes more exposed to
weakening consumer demand, has to contend with management loss,
and will see its costs of funding increased.

Given the continued uncertainty over the amount of the operating
earnings overstatement, the implications of the review at Disco
Ahold, the extent of secured assets pledged, and the management
vacuum, the Rating Watch Negative will be resolved once Fitch has
met with Ahold's management.

CONTACT:  Jonathan Pitkanen
          London
          Phone: +44 (0)20 7417 4201

          Media Relations
          Kris Anderson
          London
          Phone: +44 20 7417 4361



===============
B A R B A D O S
===============

T GEDDES GRANT: Closing Down Operations by End-April
----------------------------------------------------
Trinidad and Tobago conglomerate Neal & Massy is closing down its
money-losing Barbados subsidiary, T Geddes Grant (Barbados) Ltd,
reports the Trinidad Express. In a letter circulated to its 135
employees, the subsidiary, which started operations on the island
around 1917 as part of the Port-of-Spain-based main business,
stated it would cease operations by the end of April.

The closure is expected to cost Neal & Massy some $16 million
(Bds$5 million), according to sources in Barbados. However,
executives in Barbados and Trinidad refuse to confirm the
expectations.

"I would prefer not to talk about the cost of the severance,"
said Bernard Dulal-Whiteway, Neal & Massy's chief executive, "but
it would not have been as expensive as if we had kept incurring
losses all the time."

The estimate of the cost of the severance exercise is based on
the number of employees, their length of service and the current
regulations governing severance in Barbados.

Director of Neal & Massy operations in Barbados, Anthony King,
also declined to state what the closure would cost the Company,
but Geddes Grant is expected to derive some revenue as a result
of the sale or rental of buildings and other assets.

"There have been significant changes in the market conditions
affecting the company and we have decided that in light of
circumstances the company could not be a viable entity in the
long-term or even the medium-term," King said.

CONTACT:  T. GEDDES GRANT (BARBADOS) LIMITED
          Whitepark Road, St. Michael
          P.O.Box: 1238 Bridgetown
          Tel:  (246) 431-3300
          Fax: (246) 427-0864
          COMPANY OFFICIALS:
                MANAGING DIRECTOR: Mr. Walter R. Short
                FINANCE DIRECTOR: Mr. Ronald P. Drakes
                DIRECTOR: Mr. Don J. L. Marshall



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

ANNUITY & LIFE: Reporting Big Losses for 4Q02
---------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) announced on
Monday that it expects to report significant losses for the
quarter and year ended December 31, 2002. The projected loss for
the fourth quarter is in addition to the charge associated with
the novations of several large contracts at December 31, 2002,
which was previously disclosed in the Company's Form 8-K filing
on January 16, 2003. The projected loss is driven by continuing
adverse mortality and an increase in reserves associated with the
Company's life reinsurance business in response to the receipt of
a large number of open claim submissions that did not fit
historical or expected patterns. Also contributing to the fourth
quarter loss are continuing losses on the Company's largest
guaranteed minimum death benefit contract and a significant
increase to related reserves, unrealized losses from embedded
derivatives, and a high level of expenses related to the
Company's efforts to raise capital, effect treaty recaptures and
other associated activities.

During the fourth quarter of 2002, the Company was not able to
secure or replace the remaining $15 million letter of credit
issued in its favor in connection with a stop loss reinsurance
facility provided by The Manufacturers Life Insurance Company. In
addition, although the Company made significant progress in
satisfying the collateral requirements under its various
reinsurance treaties, it has not yet satisfied all such
requirements as of December 31, 2002. In particular, as disclosed
in the Company's Form 8-K filing on January 16, 2003, the Company
has not satisfied the additional collateral requirements under
its largest guaranteed minimum death benefit treaty, which the
cedent currently estimates to be approximately $59 million. The
Company is also in discussion with another ceding company that
has recently asserted that the Company must satisfy substantial
collateral requirements in excess of the amounts already posted
by the Company. A significant portion of the amount of additional
collateral requested by this cedent is based on its adoption of a
new Actuarial Guideline that was not contemplated at the time the
contract was written. The Company has requested information from
this cedent as to the basis for its assertion that the Company
must post the additional collateral.

The Company also announced that it had ceased writing new
business and had notified its existing customers that it will not
be accepting any new business under its existing treaties on
their current terms. The Company also announced that it will not
declare or pay a dividend on its common shares during the first
quarter of 2003.

The Company also reported that it had reached an agreement with
The Ohio National Life Insurance Company to terminate its fixed
annuity reinsurance contract with the Company effective January
31, 2003. In connection with such termination, Ohio National paid
a fee to the Company as consideration for a portion of the
Company's deferred acquisition costs associated with the
contract. Neither party has any remaining obligations under the
contract. The contract represented approximately $376 million of
funds withheld assets on the Company's balance sheet as of
December 31, 2002 and the majority of the Company's unrealized
FAS 133 losses from embedded derivatives during 2002.

The Company also reported that its annuity reinsurance contract
with Transamerica performed within the Company's expectations
during the fourth quarter of 2002 and that it had raised its
reinsurance premium rates substantially on all of its non
guaranteed premium yearly renewable term life contracts. The
Company is also continuing its efforts to raise capital and to
negotiate the recapture, retrocession, novation or sale of
certain of its reinsurance contracts.

Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.

The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements made by the Company or
on its behalf. All statements which address operating
performance, events, or developments that the Company expects or
anticipates may occur in the future are forward- looking
statements. These statements are made on the basis of
management's views and assumptions; as a result, there can be no
assurance that management's expectations will necessarily come to
pass. The Company cautions that actual results could differ
materially from those expressed or implied in forward-looking
statements. Important factors that could cause the actual results
of operations or financial condition of the Company to differ
include, but are not necessarily limited to, a decline in the
Company's financial ratings; the Company's ability to raise
sufficient capital to meet the collateral requirements associated
with its current business and to fund the Company's continuing
operations or the Company's ability to reduce or otherwise
satisfy its collateral obligations through novations, recaptures
or otherwise; the Company's ability to attract and retain
clients; the Company's ability to underwrite business; changes in
market conditions, including changes in interest rate levels; the
ability of the Company's cedents to manage successfully assets
they hold on the Company's behalf; unanticipated withdrawal or
surrender activity; changes in mortality, morbidity and claims
experience; the Company's success in managing its investments;
the competitive environment; the impact of recent and possible
future terrorist attacks and the U.S. government's response
thereto; the loss of a key executive; regulatory changes (such as
changes in U.S. tax law and insurance regulation which directly
affect the competitive environment for the Company's products);
and a prolonged economic downturn. Investors are also directed to
consider the risks and uncertainties discussed in documents filed
by the Company with the Securities and Exchange Commission. The
Company does not undertake to update any forward-looking
statement that may be made from time to time by or on behalf of
the Company.


FLAG TELECOM: Hires New CEO to Navigate Recovery
------------------------------------------------
FLAG Telecom Group Limited (OTC: FTGLF.PK) (the "Company" or
"FLAG Telecom") announced on Monday that Patrick Gallagher, a
proven leader in the telecommunications industry, has joined the
Company as Chief Executive Officer. He will also serve as a
member of the Board of Directors of the Company.

Patrick Gallagher brings to FLAG Telecom a wealth of
international experience, including experience in telecom markets
in Europe, Asia and the Middle East. Over the past 17 years,
Patrick has been employed with British Telecom, including five
years as the Chief Executive of BT Europe and, most recently, as
the Group Director for Strategy and Development also with
responsibility for Japan, China, and investments in France,
Italy, Singapore, Hong Kong, Malaysia and Korea.

Robert Aquilina, a member of the Board of Directors for FLAG
Telecom, said, "The conclusion of an exhaustive search for our
new CEO is a pivotal decision for the Company. We sought a leader
with expertise and experience to guide the Company to a position
of prominence within the global telecommunications industry. We
firmly believe that Patrick embodies these characteristics. With
the industry savvy that Patrick brings to FLAG Telecom, we are
more excited than ever about our future prospects."

Patrick Gallagher added, "I am very pleased to join FLAG Telecom
at this decisive moment in its development. The opportunities at
the Company are both exciting and challenging. Together with the
Company's solid management team and employees, I look forward to
further establishing a strong platform and infrastructure that
will enable us to deliver new products that compliment FLAG
Telecom's existing services. I am excited to lead FLAG Telecom
toward its goal of becoming a prominent player in the
telecommunications industry."

Mark Spagnolo, current Interim CEO, who will retain his position
as a member of the Board of Directors, said, "FLAG Telecom has
developed greatly over the last few months from a company geared
toward building a world class network and restructuring its
balance sheet to a company focused on operations and services.
The addition of Patrick to the management team is a key and
exciting element in this transition."

About FLAG Telecom

FLAG Telecom, along with its group companies, is a leading global
network services provider and independent carriers' carrier
providing an innovative range of products and services to the
international carrier community, ASPs and ISPs across an
international network platform designed to support the next
generation of IP over optical data networks. Recent news releases
and further information are on FLAG Telecom's website at:
www.flagtelecom.com.

CONTACT:  FLAG Telecom
          Willem Baralt, Group Treasurer
          Phone: +44 207 317 0837
          E-mail: Irelations@flagtelecom.com



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

AES CORP.: Steadfast In Brazil Despite Financial Difficulties
-------------------------------------------------------------
US-based utility AES Corp. will remain in Brazil and will do
anything to resolve the problems at one of its main properties
there, AES President Paul Hanrahan said in an interview with
Agencia Estado.

AES and its local subsidiaries owe some US$1.2 billion to
Brazil's national development bank BNDES. In January, AES Elpa, a
holding company that owns AES's ordinary shares in Eletropaulo,
failed to meet a payment of US$85 million on that debt.

Hanrahan said the Company was negotiating a "restructuring" of
its Eletropaulo debt with the BNDES.

Meanwhile, he also denied reports of alleged irregularities in
remission of Eletropaulo profits. He said the unit remitted
profits of some US$318 million in 2000 and 2001, but none had
taken place since financial troubles were first noted in 2001.

At the same time, Hanrahan reiterated previous statements that
AES is not prepared to make new investments in Brazil for the
time being. He said the company is waiting for "a stable
regulatory environment."

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

          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


CIEN: Faces Default; Plans Sue Copel
------------------------------------
The refusal of Parana state- controlled energy utility Cia.
Paranaense de Energia (Copel) to pay two-month's worth of
electricity to Cia. de Interconexao Energetica (Cien) is pushing
the latter to the edge of default.

Cien, the Brazilian unit of Spanish power company Endesa SA,
borrowed money from Germany's Kreditanstalt fuer Wiederaufbau and
the Inter-American Development Bank to build a power line linking
Brazil and Argentina. The Endesa unit must make two payments of
US$35 million each to the banks in April and May. However, it
would be impossible for Cien to make the payments without getting
the payments from Copel first.

In this context, Cien is threatening to file a suit against Copel
for refusing to pay it BRL120 million ($33 million) worth of
unpaid electricity. Copel has suspended payments to Cien at the
behest of the newly-elected Parana state governor Roberto
Requiao.

In 1998, Brazilian utilities, including Copel, signed with Endesa
a US$2.5-billion accord, under which the Spanish company will
supply for 20 years energy produced in Argentina and transmitted
through a power line linking the two countries.

Requiao terminated the agreement on the grounds that Copel was
forced to buy energy from Endesa produced in Argentina and sold
by Cien even though it has an oversupply of electricity that it
cannot sell in Brazil. Requiao also claimed that Copel bought
energy from Endesa at US$28 a megawatt/hour and the price for
excess electricity in the wholesale energy market goes for BRL4
($1.10).

CONTACT:  COPEL (in Brazil)
          Othon Mader Ribas
          Tel. 011-5541-222-2027
          Email: othon@copel.com

          Solange Maueler
          Tel. 011-5541-331-4359
          Email: solange@copel.com

          (New York)
          Richard Huber
          Tel. 212-807-5026
          Email: richard.huber@tfn.com

          Isabel Vieira
          Tel. 212-807-5110
          Email: isabel.vieira@tfn.com


TCP: Ordinary Board Meeting Minutes Summary Released
----------------------------------------------------
Paticipants:

Miguel Antonio Igrejas Horta e Costa; Iriarte Jose Araujo
Esteves; Carlos Manuel de Lucena e Vasconcellos Cruz; Zeinal
Abedin Mohamed Bava; Paulo Jorge da Costa Goncalves Fernandes;
Francisco Jose de Azevedo Padinha; Gilson Rondinelli Filho;
Eduardo Perestrelo Correia de Matos; Luis Manuel Pego Todo Bom;
Norberto Veiga de Sousa Fernandes; Estanislau Jos‚ Mata Costa;
Guilherme Silv‚rio Portela Santos; Jos‚ Pedro Faria Pereira da
Costa; Maria Paula de Almeida Martins Canais; Rui Manuel de
Medeiros D'Espiney Patr¡cio; Paulo Jos‚ Soares; Ant“nio Gon‡alves
de Oliveira. The members of the Fiscal Committee Manuel Maria
Pulido Garcia Ferrao de Sousa, Jos‚ Alberto Bettencourt da Cƒmara
Gra‡a and Sydney Alberto Latini, and the representant of the
independent auditor of the Company, Deloitte Touche Tohmatsu,
were also present.

Date and Time: On February 17, 2003, at 2:00 PM. Venue: At the
corporate headquarter, in the city of Sao Paulo, State of Sao
Paulo, at Rua Ab¡lio Soares, 409.

1. AGENDA AND DELIBERATIONS: 1.1. To approve the Financial
Statements, accompanied by the report of the independent
Auditors, the Annual Report and the Proposal of Destination of
Results regarding the accounting period ended December 31st,
2002.: The members of the Board of Directors, after examining and
discussing, and due to the favorable manifestation from members
of the Fiscal Committee and the Independent Auditor, approved,
with unanimity and without exceptions, accompanied by the report
of the independent Auditors, the Annual Report and the Proposal
of Destination of Results regarding the accounting period ended
December 31st, 2002, and the View of the Fiscal Committee, which
will be submitted to the General Shareholders Meeting of 2003.

2. ENCERRAMENTO DA REUNIAO: Having no further issues to be
discussed, these minutes were drawn by myself, the secretary,
then were read and approved and undersigned by the members of the
Board. Sao Paulo, February 17, 2003. Miguel Ant¢nio Igrejas Horta
e Costa, President; Iriarte Jos‚ Ara£jo Esteves, Vice-President;
Carlos Manuel de Lucena e Vasconcellos Cruz, Vice-President;
Zeinal Abedin Mohamed Bava, Conselheiro; Paulo Jorge da Costa
Gon‡alves Fernandes, Director; Francisco Jos‚ de Azevedo Padinha,
Director; Gilson Rondinelli Filho, Director; Eduardo Perestrelo
Correia de Matos, Director; Luis Manuel Pˆgo Todo Bom, Director;
Norberto Veiga de Sousa Fernandes, Director; Estanislau Jos‚ Mata
Costa, Director; Guilherme Silv‚rio Portela Santos, Director;
Jos‚ Pedro Faria Pereira da Costa, Director; Maria Paula de
Almeida Martins Canais, Director; Rui Manuel de Medeiros
D'Espiney Patr¡cio, Director; Paulo Jos‚ Soares, Director;
Ant“nio Gon‡alves de Oliveira, Director; Manuel Maria Pulido
Garcia Ferrao de Sousa, President of the Fiscal Committee; Jos‚
Alberto Bettencourt da Cƒmara Gra‡a, member of the Fiscal
Committee; Sydney Alberto Latini, member of the Fiscal Committee;
Luis Fernando Amadeo de Almeida, Secretary. I hereby certificate
that the present is an examined copy of the minutes of the
General Shareholders Meeting of Telesp Celular Participa‡oes
S.A., that took place on February 17th, 2003 and entered in the
minutes of Shareholders' Meeting book.

Luis Fernando Amadeo de Almeida
Secretary of the Board


VARIG: Returning 10 Boeing Planes To GE In Merger Preparation
-------------------------------------------------------------
Viacao Aerea Rio-Grandense SA (Varig), Latin America's biggest
airline, is sending back six or seven 767 planes, and three MD-11
planes to GE Capital Aviation Services, a unit of General
Electric Co., Bloomberg reports, citing Alberto Fajerman, Varig's
vice president in charge of strategic planning.

The move is part of Varig's effort to cut costs as it prepares to
combine with its main rival in Brazil.

Varig and TAM Linhas Aereas SA, Brazil's second-largest carrier,
are working to increase occupancy rates by reducing the number of
aircraft in their joint fleet.

"Let's not fool ourselves, Brazil's aviation market has an
oversupply of seats," Fajerman said. The returned aircrafts are
part of a plan "to better control the number of seats in the
market."

At a joint press conference Monday, Varig and TAM said that,
beginning March 10, they will trim flights on nine of their
principal domestic routes to 113 from 155 at present. The pair
will share passengers on the remaining 113 flights equally,
according to the terms of a freshly inked codesharing agreement.

Varig and TAM, both suffering from rising costs and a sharp drop
in demand for flights, announced earlier this month that they had
agreed to work toward a merger of their operations.

The plan might result in a holding company that would control
both airlines, the companies said, adding that details would be
worked through over the next six months.

Government officials, eager to help heavily indebted Varig skirt
a bankruptcy that could put thousands of Brazilians out of work,
said they might ease antimonopoly regulations to open the way for
a merger.

Together, TAM and Varig would control almost 70% of the domestic
market, well above the 50% limit currently in place.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

              KPMG Brazil
              Belo Horizonte
              Rua Paraba, 1122
              13th Floor
              30130-918 Belo Horizonte MG
              Telephone 55 (31) 3261 5444
              Telefax 55 (31) 3261 5151
                       or
              Brasilia
              SBS Quadra 2 BL A N 1
              Edificio Casa de Sao Paulo SL 502
              70078-900 Braslia - DF
              Telephone 55 (61) 223 2024
              Telefax 55 (61) 224 0473

              BAIN & CO
              Primary Contact: Wendy Miller
              Two Copley Place, Boston, MA 02116
              USA
              Phone: +1-617-572-2000
              Fax: +1-617-572-2461
              Email: miles.cook@bain.com
              URL: http://www.bain.com

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br


* Brazil To Auction BRL5.96 Billion of Debt on Tuesday
------------------------------------------------------
Brazil's Treasury was scheduled to auction Tuesday as much as
BRL5.96 billion (US$1.66 billion) of fixed- and floating-rate
debt to refinance maturing bonds, reports Bloomberg. Plans
include offering BRL500 million of fixed-rate national Treasury
notes due October 1, 2003, the first offer of such bonds known as
LTN's since November 5.

In addition, the government will offer up to BRL5.46 billion of
floating-rate national Treasury notes, known as LFT's, due
September 17, 2003, December 17, 2003, and May 19, 2004, from
noon (10 a.m. New York time) to 1 p.m.

With the sale of the LFT's, the Treasury may sell one or any
combination of the notes being offered up to a limit of 3.5
million notes, or about BRL5.46 billion. The notes will have a
face value of about BRL1,560 each. The zero-coupon notes pay
interest at maturity. Interest is indexed to the Selic overnight,
interbank interest rate, which was 26.29% Monday.



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

CFE: Companies Gain More Time To Study Altamira V Bidding Rules
---------------------------------------------------------------
Interested companies now have until May 10 to buy bidding rules
for the 829-1,121MW Altamira V power station in Tampico,
Tamaulipas state, after Mexico's state power company CFE decided
to extend the deadline. According to Business News Americas, the
original deadline was February 15.

"Some companies needed more time to study the bidding rules," a
CFE source said.

Technical proposals for the project should be presented by May 16
and economic proposals from qualifying companies will be opened
June 30. A winner will be announced on July 21.

Work is programmed to start May 3, 2004 and end by November 1,
2006.

CONTACT:  COMISION FEDERAL DE ELECTRICIDAD
          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          Web Site: http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance


GRUPO TMM: Amends Registration Statement
---------------------------------------------------
In Connection with its previously announced exchange offers and
consent solicitations for its 9.5% Senior Notes due 2003 and
10.25% Senior Notes due 2006, Grupo TMM announced the following:

Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A) revealed on Monday
that it has extended the expiration date for both of its
previously announced exchange offers and consent solicitations
for all of its outstanding 9 1/2 percent Senior Notes due 2003
("2003 notes") and its 10 1/4 percent Senior Notes due 2006
("2006 notes"). The exchange offers and consent solicitations
will expire at 5:00 p.m., New York City time, on March 11, 2003,
unless further extended by Grupo TMM with respect to one or both
series of the notes. This extension is made without any change in
the terms or conditions of the exchange offers. In addition,
Grupo TMM has announced additional details of the warrant
offering that is part of its proposed changes to the exchange
offer with respect to the 2003 notes. The proposed changes are
described in an amendment filed Monday with the SEC which amends
the company's new registration statement filed on February 18,
2003.

However, the changes described in the new registration statement
and the amendment will not be offered to holders and will not
become a part of the existing exchange offers until further
action is taken by Grupo TMM and the SEC to complete the new
registration statement and have it declared effective by the SEC.

The Company plans to offer, for each $1,000 principal amount of
2003 notes tendered and accepted in the exchange offer, 55
warrants to purchase American Depositary Shares ("ADSs"). Each
warrant is exercisable to purchase one ADS, representing one of
the company's Series A Shares, at an exercise price of $9.00 per
warrant, subject to certain adjustments, payable only by
surrender of the new notes offered in the exchange offers
(subject to limitations). If all of the 2003 notes were tendered
and exchanged, the company would issue approximately 9.7 million
ADSs. Unless exercised, the warrants will expire in 2010. The
ADSs are listed and principally traded on the New York Stock
Exchange under the symbol "TMM." The amendment to the exchange
offers and consent solicitations relating to the addition of
warrants will be made available to holders only upon declaration
of the effectiveness of such further amendment by the Securities
and Exchange Commission.

In addition to including the warrants to purchase American
Depositary Shares of Grupo TMM, as part of the consideration
being offered for 2003 notes tendered and accepted in the
exchange offer, the proposed changes to the exchange offer with
respect to the 2003 notes will include offering all holders of
2003 notes whose notes are tendered and accepted the consent fee
of $5.00 per $1,000 principal amount of 2003 notes and reducing
the minimum tender condition for the 2003 notes from 85% of the
2003 notes to 80% of the 2003 notes. All other terms and
conditions of the exchange offers and the consent solicitations
remain the same.

As of 5:00 p.m., New York City time, on February 21, 2003,
approximately 31.41% of the outstanding 2003 notes, or
$55,561,000 principal amount, had been tendered and not
withdrawn, and 75.07% of the outstanding 2006 notes, or
$150,142,000 principal amount, representing a majority of the
2006 notes, had been tendered and not withdrawn.

Salomon Smith Barney Inc. is acting as the dealer manager for the
exchange offers and consent solicitations.

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in TFM, which operates
Mexico's Northeast railway and carries over 40 percent of the
country's rail cargo. Grupo TMM's web site address is
www.grupotmm.com and TFM's web site is www.gtfm.com.mx. Grupo
TMM's ADSs are listed on the New York Stock Exchange under the
symbol "TMM" and its Series A Shares are listed on Mexico's Bolsa
Mexicana de Valores under the symbol "TMM A."

The exchange offers and consent solicitations are made solely by
the prospectus dated December 26, 2002, as amended to date, the
related letter of transmittal and consent, and any amendments or
supplements thereto. Copies of the prospectus and transmittal
materials can be obtained from Mellon Investor Services LLC, the
information agent for the exchange offers and consent
solicitations, at the following address:

   Mellon Investor Services
   44 Wall Street, 7th Floor
   New York, NY 10005
   (888) 689-1607 (toll free)
   (917) 320-6286 (banks and brokers)

A registration statement relating to the warrants has been filed
with the Securities and Exchange Commission but has not yet
become effective. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement
becomes effective. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any State in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such State The exchange offers and consent solicitations are not
being made to, nor will tenders be accepted from, or on behalf
of, holders of existing Notes in any jurisdiction in which the
making of the exchange offers and consent solicitations or the
acceptance thereof would not be in compliance with the laws of
such jurisdiction. In any jurisdiction where securities, blue sky
laws or other laws require the exchange offers and consent
solicitations to be made by a licensed broker or dealer, the
exchange offers and consent solicitations will be deemed to be
made on behalf of Grupo TMM by the dealer manager or one or more
registered brokers or dealers licensed under the laws of such
jurisdiction.

CONTACT:  Grupo TMM Company
          Jacinto Marina
          Phone: 011-525-55-629-8790
          E-mail: jacinto.marina@tmm.com.mx

          Brad Skinner
          Phone: 011-525-55-629-8725
          E-mail: brad.skinner@tmm.com.mx

          Luis Calvillo
          Phone: 011-525-55-629-8758
          E-mail: luis.calvillo@tmm.com.mx
             or
          Dresner Corporate Services
          (general investors, analysts and media)
          Kristine Walczak
          Phone: 312/726-3600
          E-mail: kwalczak@dresnerco.com



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

CARONI LTD.: Agriculture Minister Confident of VSEP Acceptance
--------------------------------------------------------------
Trinidad and Tobago Agriculture Minister John Rahael is confident
that many would accept the VSEP because the package was "so
encouraging and so well designed for the benefit of all the
workers (that) we expect to have a very large number accepting
the VSEP."

The Trinidad Express reported Friday that during a news
conference held after the regular Cabinet meeting at Whitehall,
Port of Spain, Mr. Rahael confirmed that the government has
offered on Monday, the Voluntary Separation of Employment Plan
(VSEP) to workers of Caroni (1975), Ltd., but he added that it is
too early to tell the number of employees who would accept the
offer.

He also said that the government is willing to pay more than $9
million to more than one thousand farmers as compensation for
damages to their crop during a flooding between November 2001 and
July 2002.

The VSEP offer is part of the government's restructuring program
of the state sugar company, Caroni. Mr. Rahael expects that the
company would lessen its dependency on the government after the
restructuring is completed.

Caroni's debt now stands at $3.2 billion, in just ten years after
$2.1 billion in debt was written off.

CONTACT:  Caroni Limited
          Old Southern Main Road, Caroni,
          Trinidad & Tobago
          Phone: (868) 663-1781 or 662-0879
          Fax: (868) 663-1404


CARONI LTD.: Union Ready For VSEP Challenge
-------------------------------------------
Rudranath Indarsingh, president of the All Trinidad Sugar and
General Workers Trade Union (ATSGWTU), is prepared to face the
challenges of being a union leader, as 9,000 workers of state
sugar company, Caroni (1975), Ltd. were offered the Voluntary
Separation of Employment Plan (VSEP).

"I understood my role and responsibility when I became the
president general and I intend to carry out my mandate to the
best of my ability and for the interest of my members," said Mr.
Indarsingh, as quoted by the Trinidad Express.

The controversial VSEP has been as issue among workers of Caroni,
as those who refuse to accept the plan would have to face
eventual redundancy in the company.

Mr. Indarsingh acknowledges that the VSEP would affect the
ATSGWTU, it would not cause the union's demise because it
represents workers from other industries.

"As a trade unionist, I have to understand that trade unionism in
terms of its original foundation was not born of relaxation or
getting things easy-and I am prepared to continue the struggle,"
he said.

Earlier this month, Mr. Indarsingh led Caroni workers in a
protest march to Whitehall, to deliver a petition to Prime
Minister Patrick Manning. The protest had stopped Caroni's
operations on that day.

CONTACT:  All Trinidad Sugar and General Workers' Trade Union
          Rienzi Complex
          Exchange Village
          Southern Main Road, Couva.
          President: Mr. Rudranath Indarsingh
          Phone: 868-636-2354
          Fax: 868-636-3372
          E-mail: atsgwtu@opus.co.tt


CARONI LTD.: Union Seeks Government Review On Factory Closure
-------------------------------------------------------------
President general of the All Trinidad Sugar and General Workers'
Trade Union (ATSGWTU) Rudranath Indarsingh is calling on
Government to reassess its decision to close down Caroni (1975)
Ltd's Brechin Castle factory, reports the Trinidad Express on
Saturday.

According to Mr. Indarsingh, members of the Couva/Point Lisas
Chamber of Commerce were concerned about the consequences of the
Brechin Castle shut down, as he is not confident that the Ste
Madeleine factory could meet production targets.

After the restructuring process, Caroni is expected to reduce
sugar to production to only 80,000 tons of sugar. However, the
production of other products like rum, rice, citrus, beef and
dairy would continue.

Earlier reports said that Caroni would then buy sugar from
private farmers, and that the price would depend on the quality
of cane. Farmers were seeking to increase the amount Caroni pays
per ton of cane.

He added that some businessmen are considering urging the
government to have Caroni's restructuring done on a phased basis.



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

ANCAP: Board Authorizes Fuel Price Hike
---------------------------------------
Rising international crude oil prices owing to the problems with
production in Venezuela and the continuing strife in the Middle
East prompted the board of Uruguay's state oil company Ancap to
authorize a fuel price hike.

Citing Ancap chairman Jorge Sanguinetti, Business News Americas
reports that the board has authorized a 10% rise in gasoline and
19% in diesel and liquid petroleum gas (LPG).

"We have no other alternative than to raise the price to obtain
the resources needed and have the oil. If we don't do it, we run
the risk that the country won't have fuel," Mr. Sanguinetti said.

The last price level was established based on an average crude
price of US$26.5 a barrel, but international prices have risen to
around US$36 a barrel.

As a result, the Company has lost some US$40 million in the last
two months, Mr. Sanguinetti said. To alleviate some of the
problems, Ancap has reached an agreement with the economy
ministry that exempts it from contributing to the treasury this
year.

CONTACT:  Administracion Nacional de Combustibles, Alcohol y
                Portland (ANCAP)
          Central Administration Paysando
          s/n esq. Avenida del Libertador
          Montevideo, 11100 Uruguay
          P.O. Box 1090
          Phones: +598(2) 902 0608
                          902 3892
                          902 4192
          Fax +598(2) 902 1136 902 1642
          Telex ANCAP UY 23168
          E-mail: info@ancap.com.uy
          Home Page: www.ancap.com.uy
          Contact:
          Benito E. Pi eiro, Chief Executive Officer
          Phone +598(2) 900 2945
                +598(2) 902 0608 Ext. 2253
          Fax +598(2) 908 9188


CAYCU: Cofac Launches $7M Bid
-----------------------------
Uruguay's largest credit cooperative Cofac remains the only
bidder for Cooperativa de Ahorro y Credito de Uruguay (Caycu).
Caycu was intervened and suspended together with four banks last
July-August amid the country's financial and economic crises.

Cofac made a US$7-million bid Friday for Caycu, a Cofac
spokesperson confirmed to Business News Americas. The offer
includes the assumption of Caycu's liabilities up to the same
level as the assets.

At the time that it was intervened, Caycu had US$11 million in
liabilities and only US$7 million in assets.

The spokesperson claimed Cofac has already reached an agreement
with 84% of Caycu's clients to return demand deposits in six
months and frozen time deposits over five years. He also said
that dollar-denominated time deposits will be returned in dollars
at 5% annual interest over the five years.

Cofac, one of Uruguay's leading financial institutions in the
micro-lending segment, has 40 offices and 600 employees. Its bid
for Caycu includes maintaining two of Caycu's four offices and up
to 25 of the cooperative's 48 employees, the spokesperson said.

Cofac expects Uruguay's central bank to make an announcement on
the bid in the first week of March.

CONTACT:  Osvaldo Pineiro, President
          Americo Cortada, Director
          Roberto Barreto, Director
          Juan Grana, Director
          Miguel Arrillaga, Director

          Tel: 506-7884
          Fax: 507 7136
          Email: Administrador@caycu.com.u
          Web Site: http://www.caycu.com.uy


* Uruguay's Financial Problems Drive Away Investors
---------------------------------------------------
Uruguay decided to run the newly created Nuevo Banco Comercial SA
itself after the country's problematic financial system caused
private investors to shy away from investing anymore in the
country.

According to Bloomberg, the Uruguayan government will inject
US$830 million into Nuevo Banco Comercial, making it the
country's third largest bank. Most of the money will be used to
pay back depositors whose assets were frozen after regulators
suspended the banks in August, the central bank said.

Foreign investors have become weary of putting in more
investments in Uruguay after currency devaluations and
Argentina's US$95-billion default sparked losses for banks in
South America.

"Banks will not invest more money in Uruguay," said economist
Jorge Caumont, a Montevideo-based business consultant who advises
banks. "They all want to limit their losses in the region,
especially as deposits have kept dropping."

Nuevo Banco Comercial was created with the assets of three failed
banks: Banco Comercial SA, Banco de Montevideo SA and Banco La
Caja Obrera SA. Banco Comercial was majority owned by J.P. Morgan
Chase & Co., Credit Suisse First Boston and Dresdner Bank AG.

The three banks were prohibited from most banking transactions
after a weeklong shutdown of the entire financial system and a
run on deposits. The country is mired in a four-year recession.



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

PETROZUATA: To Resume Operations Soon
-------------------------------------
Petrozuata, Venezuela's second biggest heavy oil project, said it
plans to resume exports of synthetic crude, clearing the way for
a start up of operations, Bloomberg reports, citing a company
spokesman.

According to Petrozuata spokesman Eduardo Cartaya, the Company
will ship about 800,000 barrels of synthetic crude now in
inventory, clearing the way for the storage of new products.

The Company is also making preparations to resume production,
said Mr. Cartaya in a phone interview.

"We are readying some units but a restart depends on how much
natural gas we receive from Petroleos de Venezuela," Cartaya
said.

Petrozuata, a US$2.4 billion project, produces about 120,000
barrels a day of synthetic crude.

ConocoPhillips owns 50.1% of Petrozuata, while Petroleos de
Venezuela owns 49.9%.



               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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* * * End of Transmission * * *