/raid1/www/Hosts/bankrupt/TCRLA_Public/030306.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, March 6, 2003, Vol. 4, Issue 46

                           Headlines


A R G E N T I N A

ARGENTINA BANKS: Court Ruling May Provoke More Chaos
BHN: Debt Securities Rated `raD' by S&P
BHN: Local S&P Rates Debt Securities `raD'
CENTRAL COSTANERA: Inks Final Deal To Restructure $95M Loan
CTI HOLDINGS: Verizon Sells Ownership For $20M

DISCO SA: Corporate Bonds Rated `raBB' by local S&P
FIDEICOMISO CREDITCUOTAS: Financial Trusts Rated `raD' by S&P
MASTELLANO HERMANOS: Local S&P Issues `raD' to Bonds
PECOM ENERGIA: Local S&P Rates Bonds `raBB'
RADIOCOMICACIONES MOVILES: Standard & Poor's Rates Bonds `raCC'

TC/CAP: Evaluadora Latinoamericana Issues Junk Ratings To Trusts
TELECOM ARGENTINA: Local S&P Rates Various Bonds `raCC'
TELECOM ARGENTINA: Various Bonds Rated `raD' by local S&P


B E R M U D A

TYCO INTERNATIONAL: Announces Two New Appointments
TYCO INTERNATIONAL: Board Must Set Timetable For US Return


B R A Z I L

ITAIPU: Likely To Default On Debt Payments In Three Months


C H I L E

ENERSIS: S&P Assigns BBB+ To Endesa's Preferred Securities
TELEFONICA CTC: Sells Money-Losing Health Insurance Unit


C O L O M B I A

BANCAFE: Colombia Relaunches Privatization
TERMOCARTAGENA: Turns To Government For Financial Backing
VALORES BAVARIA: Reports 50% Reduction In Losses


D O M I N I C A N   R E P U B L I C

TRICOM: Reports 2002 Fourth Quarter, Full-Year Results


M E X I C O

AHMSA: Still At Odds With Creditors, No Solution In Sight
GRUPO MEXICO: Expects To Close Debt Deal Shortly
INSILCO: Announces Asset Auction Results
PEMEX: To Swap $3.25B Worth Of Notes
PEMEX: Awards Schlumberger $60M Contract

UNEFON: Airspan Announces Sale Of WipLL System To Telecosmo
VITRO: Targets Construction Industry In Effort To Up Sales


V E N E Z U E L A

CITGO PETROLEUM: Moody's Confirms Ratings, Negative Outlook
PDVSA: Restarts San Roque Operations


     - - - - - - - - - -

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

ARGENTINA BANKS: Court Ruling May Provoke More Chaos
----------------------------------------------------
An expected ruling by Argentina's Supreme Court regarding the
constitutionality of the forced conversion of U.S. dollar
deposits into pesos last year is about to throw the country's
banking system into turmoil once again.

Economists predict the court will find that the conversion of the
dollar deposits into pesos was unconstitutional, something that
would lead to at least US$10 billion in losses in the country's
banking system.

The losses would add to the US$11 billion that was wiped off the
books of international banks last year when the government
ordered a freeze on deposits and the conversion of dollar loans
and savings into pesos at different exchange rates.

Backtracking on the currency conversion, which was the
cornerstone of President Eduardo Duhalde's financial plan after
devaluing the peso, may also drive the currency lower, economists
said.

"Whatever happens, this is going to be a mess," said Abel
Viglione, economist at the Fiel consulting company "If the
Supreme Court rules banks have to return dollars immediately,
there will be a lot of bankruptcies. The banks just don't have
the money. If they offer a long-term bond there will be a lot of
angry depositors on the streets."

The court will probably leave it to banks and the government to
negotiate with customers how to return the money, said Fernando
Losada, senior Latin American economist at ABN Amro in New York.
The government is likely to pick up the banks' tab by issuing
depositors a 10-year dollar-denominated bond, Losada said. That
would increase Argentina's public debt load by at least $10
billion, he said.


BHN: Debt Securities Rated `raD' by S&P
---------------------------------------
The Argentine branch of Standard & Poor's International Ratings,
Ltd., rated various Financial Trusts of Fideicomiso Hipotecario
BHN II `raD', according to an announcement in the country's
National Securities Commission.

The affected debt securities include "Clase A1", worth US$44.554
million, which matures on March 25, 2011, and US$51.36 million
worth of "Clase A2" that matures on July 25, 2009. Some US$3.730
million of "Clase B" debt securities maturing on Mar 25, 2012
were also affected by the ratings.

In addition, US$6.9 million worth of Certificados de
Participacion maturing on June 25, 2013, were rated `raC'.


BHN: Local S&P Rates Debt Securities `raD'
------------------------------------------
A total of more than US$100 million in Financial Trust of
Fideicomiso Hipotecario BHN III were issued junk ratings by the
Argentine branch of Standard & Poor's International Ratings,
Ltd., said the country's National Securities Commission.

Debt securities rated `raD' include:
-- US$14.896 million of "Clase A1" coming due on May 31, 2017.

-- "Clase A2", worth US$82.09 million, due on May 31, 2017.

-- US$5.06 million of debt security described as "Clase B", with
date due of May 31, 2018.

An obligation is rated 'raD' when it is in payment default, or
the obligor has filed for bankruptcy. 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.

In related news, Hipotecario BHN III's "Certificados de
Participacion" worth US$3.374 million were also rated `raC' by
the same agency.

The 'raC' rating may be used to cover a situation where a
bankruptcy petition has been filed or similar action has been
taken, but payments on the obligation are being continued, said
S&P.


CENTRAL COSTANERA: Inks Final Deal To Restructure $95M Loan
-----------------------------------------------------------
Argentine thermo generator Central Costanera finalized an
agreement with six creditor banks to extend payment of a US$95-
million loan issued July 12, 2000, reports Dow Jones. In early
January, the Company and the six creditor banks - Banco Bilbao
Vizcaya Argentina S.A. (BBVA), BankBoston N.A., Bank of America
N.A., HSBC Bank Plc (HSBC), Banco Latinamericano de Exportations
S.A. (BLADEX) and ABN Amro Bank N.V. (ABN) - signed a preliminary
accord to refinance the yen-denominated syndicated loan.

Costanera said all the precedent conditions established in that
accord were accomplished and became effective Feb. 28, relates
Bloomberg.

Among other conditions, these included an extension in the
maturity date to define a quarterly amortization schedule of the
principle amount running from June 2003 to December 2004, a rate
set at 90-day LIBOR plus a variable annual spread between 4.375
and 4.875 percentage points, and the conversion of the loan's
face value into dollars.


CTI HOLDINGS: Verizon Sells Ownership For $20M
----------------------------------------------
Verizon Communications Inc., the largest U.S. local-telephone
company, sold its 65% stake in an ailing Argentine cellular phone
unit for about US$20 million to local investment group Coinvest
SA. The Argentine unit, CTI Holdings SA, has about 1 million
clients in Argentina and is the smallest of four cellular
telephone operators in the country. According to a South American
Business Information report, CTI has a US$1.05-billion debt and
is in default.


DISCO SA: Corporate Bonds Rated `raBB' by local S&P
---------------------------------------------------
Corporate bonds issued by Argentine retail chain Disco, S.A.,
were rated `raBB' by the local arm of Standard & Poor's
International Ratings, Ltd. on February 25.

An announcement in the official website of the National
Securities Commission of Argentina revealed that two sets of
bonds were affected by the ratings.

The first set was described as "Obligaciones Negociables de
Mediano Plazo, autorizadas por AGO de fecha 24.10.97", worth
US$250 million, maturing on May 15, 2008.

The second set of bonds, worth are called "Obligaciones
Negociables de Mediano Plazo, autorizadas por AGO de fecha
24.10.97", would come due in May this year.

The rating, based on the Company's performance as of the end of
September last year, means that the debt has somewhat weak
protection parameters relative to other Argentine obligations.

S&P said that the Company's capacity to meet its financial
commitments on the obligation is somewhat weak because of major
ongoing uncertainties or exposure to adverse business, financial,
or economic conditions.

CONTACT:  DISCO S.A.
          Larrea 847, Piso 1
          1117 Buenos Aires, Argentina
          Phone: +54-11-4964-8000
          Fax: +54-11-4964-8076
          Home Page: http://www.disco.com.ar


FIDEICOMISO CREDITCUOTAS: Financial Trusts Rated `raD' by S&P
-------------------------------------------------------------
Fideicomiso Credicuotas III's financial trust, with a total value
of more than US$10 million, were rated `raD' by Standard & Poor's
International Ratings, Ltd. Sucursal Argentina.

The National Securities Commission of Argentina announced that
the rating affects Participation Certificate described as "Clase
B", worth US$4.804 million, along with US$5.897 million of "Clase
C" trust. Both trusts matured on February 25.

An obligation is rated 'raD' when it is in payment default, or
the obligor has filed for bankruptcy. 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.


MASTELLANO HERMANOS: Local S&P Issues `raD' to Bonds
----------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
issued a rating of `raD' to corporate bonds issued by Argentine
company Mastellone Hermanos, S.A., on Thursday. The ratings,
based on the Company's finances as of September 30, 2002, are
given to obligations whose payments are in default or if the
company has filed for bankruptcy, said S&P.

The rating applies to US$225 million worth of bonds, which the
National Securities Commission of Argentina described as
"Obligaciones Negociables, autorizadas por AGE de fecha
28.8.97.", due on April 1, 2008.

Another set of bonds issued by the company received the `raD'
rating. Described as "Programa de Obligaciones Negociables
autorizado por AGE de fechas 11 y 23.6.99", the bonds are worth
US$150 million. However, its  maturity date was not indicated in
the announcement.


PECOM ENERGIA: Local S&P Rates Bonds `raBB'
-------------------------------------------
The Argentine branch of Standard & Poor's International Ratings,
Ltd. issued a rating of `raBB' to a number of bonds issued by
Pecom Energia, S.A. on February 24.

According the National Securities Commission of Argentina, the
rating applies to the following bonds:

-- US$349.2 million of "Serie I, emitida bajo el Progr. de
T¡tulos de Corto y Mediano Plazo de U$S 2.500.000.000", maturing
on July 15,2010.

-- "Serie H, emitida bajo el Progr. de T¡tulos de Corto y Mediano
Plazo de U$S 2.500.000.000 ", worth US$181.5 million, coming due
on August 13, 2009.

-- US$250.1 million worth of " Serie G, emitida bajo el Progr. de
T¡tulos de Corto y Mediano Plazo de U$S 2.500.000.000 "., which
matures on Jan 30, 2007.

-- US$32.6 million of " Serie F, serie vigente emitida bajo el
Por}gr. de T¡tulos a Corto y Mediano Plazo por U$S 1.200.000.000
(vencido en Junio de 1998) " maturing on Jul 15, 2007.

-- "Serie F, emitida bajo el Progr. de T¡tulos de Corto y Mediano
Plazo de U$S 2.500.000.000 " worth US$64.4 million, due on August
5, 2005.

-- US$22.8 million od "Serie D, serie vigente emitida bajo el
Progr. de T¡tulos a Corto y Mediano Plazo por U$S 1.200.000.000
(vencido en Junio de 1998) ", maturing on Aug 30, 2003.

-- US$4.96 million on" Serie B, emitida bajo el Progr. de T¡tulos
a Corto y Mediano Plazo de U$S 2.500.000.000" due on May 1, 2006

-- " Programa de T¡tulos a Corto y Mediano Plazo (Progr. original
por U$S 1 Mill¢n, ampliaci¢n aprobada en Junio del 2002) ", worth
come US$2.5 billion maturing on May 31, 2003.

Based on its rating definitions, the debt denotes that it has a
somewhat weak protection parameters relative to other Argentine
obligations.

Meanwhile, the Company's stocks obtained a rating of `2'.

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          Home Page: http://www.pecom.com.ar/
          Contacts:
          Jorge Gregorio C. Perez Companc, Chairman
          Oscar Anibal Vicente, Vice Chairman


RADIOCOMICACIONES MOVILES: Standard & Poor's Rates Bonds `raCC'
---------------------------------------------------------------
Some US$350 million worth of corporate bonds issued by Compa¤¡a
de Radiocomunicaciones Moviles S.A. were issued a rating of
`raCC' by the local branch of Standard & Poor's International
Ratings on Thursday.

The rating, based on the Company's performance as of September
30, 2002, means that the bond is currently highly vulnerable to
non-payment, according to S&P's given definitions.

The National Securities Commission of Argentina described the
bonds as "Programa Global de ONs simpleas, autorizado por AGE de
fecha 26.6.97 y 23.9.97." These bonds, which matured on Monday,
are classified under "Program."


TC/CAP: Evaluadora Latinoamericana Issues Junk Ratings To Trusts
----------------------------------------------------------------
Evaluadora Latinoamericana S.A. Calificadora de Riesgo pronounced
junk status for financial trust TC/Cap Fideicomiso Financiero,
said the National Securities Commission of Argentina. Some US$9.1
million of debt security described as "T¡tulos de Deuda
Fiduciaria" were rated `BBB', while, "Certificados de
Participacion" worth US$3.9 million were rated `C'.

The debts matured last January 25.

The ratings were issued on February 24, but the reasons behind
the junk ratings issue were not indicated in the NSC
announcement.


TELECOM ARGENTINA: Local S&P Rates Various Bonds `raCC'
-------------------------------------------------------
Telecom Argentina Stet-France Telecom S.A. `s corporate bonds
were rated `raCC' by Standard & Poor's International Ratings,
Ltd. Sucursal Argentina last Thursday. A posting in the official
web site of the National Securities Commission of Argentina

The affected bonds are the following:

-- US$200 million of bonds described as "Programa de
Eurodocumentos Comerciales autorizado por Asamblea de fecha
18.12.97. ", which matured on Monday.

-- EUR250 of bonds, classified under Series and/or Class,
described as "Serie 1, emitida bajo el Progr. Global de
Obligaciones Negociables vigente hasta Septiembre del 2004",
maturing on April 7 this year.

--ITL40 billion of "Serie F emitida bajo el Programa Global de
Obligaciones Negociables vencido en agosto de 1999", which
matures on May 2, 2007.

According to S&P the rating means that the obligation is
currently highly vulnerable to nonpayment.

On the other hand, the Company's stocks, described as "Acciones
Ordinarias, Clase "B", de 1 voto c/u, con V/N $1" were rated `2',
by the same rating agency.

The ratings were based on the Company's financial performance as
of the end of September 2002.


TELECOM ARGENTINA: Various Bonds Rated `raD' by local S&P
---------------------------------------------------------
Five different corporate bonds issued by Argentine fixed line
operator Telecom Argentina - Stet France Telecom S.A. were rated
`raD' by the local branch of Standard & Poor's International
Ratings, Ltd., according to an announcement in the official web
site of the National Securities Commission of Argentina.

S&P said that an obligation is rated 'raD' when it is in payment
default, or the obligor has filed for bankruptcy. 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.

Among the affected bonds are EUR190 worth of bonds dubbed "Serie
2, emitida bajo el Programa de Obligaciones Negociables (D) con
vencimiento en Septiembre del 2004", which matures on July 2,
this year.

Bonds described as " Serie E emitida bajo el Programa Global de
Obligaciones Negociables vencido en agosto de 1999. ", worth
US$100 million also received the junk ratings. These would some
due on May 02.

Some ITL40 billion of bonds called " Serie H emitida bajo el
Programa Global de Obligaciones Negociables vencido en agosto de
1999. " due on March 8, 2008, were also given the ratings.

The rating also applies to EUR250 million of bonds described as "
Serie K, emitida bajo el Programa Global de Obligaciones
Negociables vencido en agosto de 1999.", coming due on the first
day of July this year, and US$126 million of "Serie C emitida
bajo el Programa Global de Obligaciones Negociables vencido en
agosto de 1999. " due last November 1.

The ratings issued on Thursday reflect the Company's financial
health as of the end of September 30, 2002.

CONTACT:  Telecom Argentina Stet France Telecom SA
          Head Office
          10th Floor
          Alicia Moreau de Justo 50
          Buenos Aires
          Argentina 1107
          Phone:  +54 11 4968 4000
          Fax:  +54 11 4313 5842
          Home Page;  http://www.telecom.com.ar
          Contacts:
          Juan Carlos Masjoan,  Chairman
          Christian Chauvin, Vice Chairman
          Franco Bertone, Vice Chairman
          Susana Malcorra, Chief Executive



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

TYCO INTERNATIONAL: Announces Two New Appointments
--------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) announced
Tuesday the appointments of Robert J. Ott as Vice President
Corporate Audit and of Richard L. Baran as the Company's new
Corporate Ombudsman. Both these positions will report directly to
the Audit Committee of the Board of Directors. Both Positions to
Report to Board's Audit Committee.

Mr. Ott will be responsible for overseeing all aspects of the
Tyco's internal audit program, including developing an audit
plan, managing and executing audits, and recommending
improvements to internal controls and operating processes. To
that end, he will bring a systematic, disciplined approach to
evaluating and improving controllership, and perform audits to
determine the reliability and integrity of financial information
and compliance with policies.

As Corporate Ombudsman, Mr. Baran will act as an impartial,
confidential and independent source in addressing and resolving
any concerns about Tyco's operations and management from various
sources, including employees, customers, suppliers, and the
financial and regulatory communities. To further bolster the
effectiveness of the Ombudsman, the Company has established a
confidential toll free number that these sources can use to
report their concerns to the Ombudsman.

Ed Breen, Tyco Chairman and CEO, said: "Good corporate governance
does not result from a single appointment at the top of the
management pyramid. It takes a concerted effort throughout the
organization and clear lines of responsibility for instituting
and maintaining the highest standards. The assignment of these
two respected, experienced executives will further strengthen the
team that we are establishing to ensure that Tyco is known
throughout the financial community for best practices in the area
of corporate governance."

Jerry York, Chairman of the Audit Committee of the Board of
Directors, said, "Bob Ott and Rick Baran have the right
background and the necessary personal integrity for these
sensitive positions and I know they will help us build the
credibility of this company. Tyco's decision to significantly
reinforce their independence by having both men report to the
Audit Committee of the Board rather than to senior management
reflects Tyco's commitment to strengthen corporate governance
infrastructure and to institute strict oversight throughout the
company. As far as I know, this practice is unique to Tyco, but I
believe it should become an industry standard."

Since August 2002, Mr. Ott has been Tyco's Vice President of
Finance- Corporate Governance, responsible for coordinating the
second phase of the Company's internal investigation into the
conduct of Tyco's previous management, as well as performing an
assessment of business controls throughout the corporation. Prior
to his Tyco appointment, Robert Ott was Chief Financial Officer
of Multiplex, Inc. Before that, he held senior financial
positions at SourceAlliance, Motorola, General Instrument, and
Deloitte & Touche. Mr. Ott is a Certified Public Accountant and
holds a Bachelor's degree in accounting from the University of
Notre Dame.

Richard Baran comes to Tyco from General Electric, where he was
most recently Manager Finance, Global Sourcing for GE Power
Systems. Since 1993, he has held a variety of financial
management positions at a number of General Electric divisions,
including GE Energy Services, GE Hydro, Power Plant Systems,
Corporate Environmental Programs and the Plastics Division. Mr.
Baran holds a Master's degree in Business Administration and a
law degree from the University of Connecticut and earned his
Bachelor's degree in Business Administration from the University
of Massachusetts.

About Tyco International Ltd.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in medical device products, and plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.

CONTACT:  Gary Holmes (Media)
          212-424-1314

          Kathy Manning (Investors)
          603-334-3900


TYCO INTERNATIONAL: Board Must Set Timetable For US Return
----------------------------------------------------------
A cross-section of U.S. institutional investors, state treasurers
and labor unions joined in a coast-to-coast news conference on
Tuesday to call on Tyco International's new Board of Directors to
set a specific timetable for the company to make a decision on
returning the company from Bermuda to U.S. soil.

"Tyco and the others still have much work to do before they
restore shareholder confidence and increase their legal rights.
The only way for shareholders to truly hold Tyco accountable is
for the company to reincorporate in the U.S.," said American
Federation of State, County and Municipal Employees (AFSCME)
President Gerald W. McEntee, whose union is sponsoring the Tyco
shareholder resolution.

"Mr. Breen has said he's willing to consider our request, but
he's done absolutely nothing to demonstrate he's serious,"
McEntee said in Washington D.C. "If he's truly interested in
restoring investor confidence in Tyco, he should set a date for a
decision and tell investors who will be studying this issue."

Speaking from Sacramento, California State Treasurer Phil
Angelides said the Come Home to America campaign is aimed at
nearly two dozen American firms that have taken legal refuge in
sham overseas mailing addresses.

"This practice of expatriation has direct, detrimental effects on
shareholders," Angelides added. "Just as important, it represents
- to millions of shareholders - the type of deceptive corporate
practice that has shaken the financial markets, harmed taxpayers
and pensioners, and damaged our economy. Tyco is one of only a
handful of U.S. corporations - out of thousands of publicly-held
corporations - that has chosen to engage in this practice."

Connecticut State Treasurer Denise L. Nappier, participating from
Washington DC, said: "If you want transparency as an investor, if
you want to ensure that your voice is heard by your board of
directors, and if you need to take legal action to protect your
rights and interests as a shareholder of Tyco or McDermott or
Cooper Industries or Nabors or Ingersoll-Rand -- then Bermuda can
be a very cold and uninviting place."

Last week, Institutional Shareholder Services (ISS) recommended a
vote in favor of the AFSCME resolution, because of its
disappointment in the Tyco board's failure to properly assess
this very important issue on shareholders' behalf. ISS is the
world's most influential provider of proxy voting and corporate
governance services to 750 institutional investors throughout
North America and Europe.

"We are sending the message that corporate malfeasance won't be
tolerated," said Jack Ehnes, chief executive officer of the
California State Teachers' Retirement System. "ISS, the largest
shareholder advisory firm in the world, has affirmed the growing
call for reincorporation under U.S. law. Tyco should come back
and play by the rules that protect shareholder rights."

"The efforts of expatriate companies to shirk responsibility in
our country's time of need, is not only devastating to the public
treasury, it is also unfair competition to other U.S.
corporations who are paying their share," added UNITE President
Bruce Raynor, chairman of the board of Amalgamated Bank. "Growing
outrage over this issue has prompted legislation to deny such
expatriated companies state and federal contracts."

Similarly, said New York City Comptroller William C. Thompson,
Jr., efforts are developing to eliminate the favorable tax
treatment now enjoyed through offshore incorporation. "In
Congress, the Reid, Levin and Neal Bill -- the Corporate Patriot
Enforcement Act -- will deny tax benefits to former American
companies that reincorporate offshore to avoid U.S. income
taxes," said Thompson. "At introduction, that bill had over 150
cosponsors."

Sean Harrigan, president of the board of the California Public
Employees Retirement System, concluded that the benefits of
offshore incorporation have evaporated. "New legislation, bad
publicity and loss of government contracts threaten to drive down
the value of these companies," said Harrigan. "These companies
should Come Home to America because that's what's in the best
interest not only of our members but all shareholders of all
expatriate companies."



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

ITAIPU: Likely To Default On Debt Payments In Three Months
----------------------------------------------------------
The continuing battle between the 12,600MW Itaipu hydroelectric
plant and Brazil's power distribution companies may push the
former into default, says Business News Americas. Itaipu owes
Brazil's treasury and federal power company Eletrobras US$125
million and US$135 million a month respectively for debt service
contracted during the construction of Itaipu. Another US$32
million a month is due for royalties and to settle other
expenses.

However, there is risk that the hydroelectric plant may not be
able to meet these obligations in two or three months after power
distribution companies Furnas and Eletrosul said they won't pay
their debts to Itaipu.

"In the talks that we had with Furnas and Eletrosul, the
companies confirmed that they will not pay their debts because
they haven't received payment for power that they supplied to
distributors," said Gleisa Hoffman, financial director for the
Brazilian side of the administration.

Brazilian federal generator Furnas owes Itaipu US$149 million,
while Florianopolis-based transmission company Eletrosul owes it
US$24 million.

CONTACT:  Usina Hidreletrica de Itaipu
          Av. Tancredo Neves, 6.731
          85866-900 Foz do Iguacu, Parana, Brazil
          Phone: (55-45) 520-5252



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

ENERSIS: S&P Assigns BBB+ To Endesa's Preferred Securities
----------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday it assigned its
'BBB+' long-term rating to the ?1.5 billion ($1.6 billion)
preferred capital securities issued by the U.S.-based financing
company Endesa Capital Finance LLC and guaranteed by Endesa S.A.
(Endesa; A/Negative/A-1), a Spanish electricity utility.

"These preferred securities are rated two notches below the
rating on Endesa to reflect the deeply subordinated ranking of
the securities and the conditional and noncumulative
characteristics of the preferred dividend payment," said Standard
& Poor's credit analyst Ana Nogales. The securities are perpetual
but can be repaid after 10 years at the option of the issuer.

The ratings on Endesa are supported by the company's position as
the largest vertically integrated electricity company in Spain.
In addition, the Spanish electricity regulatory regime remains
supportive and has become more transparent. These strengths are
offset, however, by a weak financial profile and increased
uncertainty about Endesa's investments in Latin America, where
Endesa is the majority owner of Enersis S.A. (BBB-/Negative/--).
In addition, in the short term Endesa will have to overcome
challenges associated with the divestment of noncore assets and
the implementation of an efficiency improvement strategy in
Italy.

In December 2002, Endesa's consolidated debt was ?22.7 billion,
of which ?15.7 billion is at Endesa and is largely serviced by
its Spanish operations. Endesa's consolidated funds from
operations (FFO) interest coverage ratio for 2002 was 2.9x, and
gearing about 66%. Consolidated gearing is expected to reduce to
50% owing to the use of proceeds from the divestment program and
the reduction in investments. The company has about ?3 billion of
provisioned but unfunded pension liabilities, which is a negative
rating factor.

The negative outlook reflects the execution risks associated with
the divestment plan and with some of the company's investments in
Spain. Endesa will have to demonstrate its ability to improve its
debt protection ratios in the short term and Standard & Poor's
will closely monitor the progress of the divestment and
investment plans, developments in Latin America, and the extent
of Endesa's support for Enersis. Any increase in its publicly
stated policy of limited support for Enersis would result in an
immediate lowering of the ratings on Endesa by more than one
notch.

ANALYSTS:  Ana Nogales, London (44) 20-7826-3619
           Email: ana_nogales@standardandpoors.com

           Lidia Polakovic, Madrid (34) 91-389-6951
           Email: lidia_polakovic@standardandpoors.com


TELEFONICA CTC: Sells Money-Losing Health Insurance Unit
--------------------------------------------------------
Chilean private health insurance company Istel, a unit of phone
company Telefonica CTC, is now on the auction block, Business
News Americas reports, citing the local press. Telefonica CTC
decided to sell the unit as high medical costs and poor growth
prospects have made the insurer unviable. Losses at Istel
ballooned from CLP174 million in 2001 to CLP635 million
(US$843,000) last year.

According to national telephone union president Rene Tavilo,
Telefonica is currently in advanced talks with local health
insurer Isapre Consalud for the sale of Istel's client portfolio.

Chile's healthcare industry is dominated by health insurers,
known locally as Isapres, that allow entry to anyone who meets
the necessary income requirements. Under the law, workers must
contribute at least 7% of their wage to either an Isapre or the
state system Fonasa.

Istel is one of the country's five largest companies with
sponsored, or closed, Isapres. Other major employers with closed
Isapres are state-run copper company Codelco and state bank Banco
Estado.

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



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

BANCAFE: Colombia Relaunches Privatization
------------------------------------------
The Colombian government has restarted the process of privatizing
state bank Bancafe. This time around, the government has high
hopes that it will be able to pull it off.

According to Juan Pablo Cordoba, director at Colombia's deposit
insurance agency Fogafin, Bancafe is now on a solid financial
footing and no longer requires capital injections from the
government to keep it afloat.

Fogafin capitalized the financially troubled bank in 1999 to the
tune of COP887 billion (US$299mn). Fogafin currently controls 99%
of Bancafe's shares.

"The bank is completely cleaned up and has some of the best
financial indicators in the sector [and] in terms of non-
producing loans it has one of the best coverage indicators," he
said. "The bank has launched new technologies and products and is
very aggressive commercially."

Fogafin hopes to select an investment bank in March to handle the
Bancafe's privatization, with a view to selling the institution
later this year. The agency has invited eight international
investment banks - including Salmon Smith Barney, ABN AMRO,
Rothschilds, and Citibank - and several local banks to bid for
the privatization contract, Cordoba said.

"We are in the process of selecting an outside advisor, an
investment bank, that would advise us in the process so that this
year, market conditions allowing, we could take it to market," he
said.

CONTACT:  BANCAFE
          Street 28 Not 13 To 15
          Bogota District of Colombia
          Phone:  5600999 EXT. 4338
          E-mail:  ma.pulido@bancafe.com.co
          Fax:  336 76 77
          Home Page: www.bancafe.com
          Contact:
          Pedro Nel Ospina Santamaria, Legal Representative


TERMOCARTAGENA: Turns To Government For Financial Backing
---------------------------------------------------------
Embattled Colombian thermo power generator Termocartagena asked
the government to guarantee its pension obligations as it seeks a
way out of its current dire situation, according to a report by
Business News Americas.

"We need government help...to get out of the crisis we are in,"
chairman Jaime Gerdts Porto said.

Termocartagena, which is owned by a group of Ecuadorian
investors, has suffered from a combination of dollar-denominated
gas purchases, low power demand and a government resolution
requiring generators to sell at less than cost price.

The generator needs to invest US$10 million in its fuel
consumption system to become more competitive, workers'
representative Alcides Guerrero said.

Business News Americas also reported that Termocartagena reached
a deal with creditors and suppliers to restructure COP10 billion
(US$3.37mn) of debts. The Company will pay COP9 billion to large
creditors over 10 years from February 2004 and COP1 billion to
small creditors from this year but without interest.

CONTACT:  TERMOCARTAGENA
          Cra 2a Centro
          Comercial Bocagrande
          Cartagena, Colombia
          Telefax (PBX) 655 1181
          Email: termoctg@ctgred.net.co


VALORES BAVARIA: Reports 50% Reduction In Losses
------------------------------------------------
Colombian conglomerate Valores Bavaria had a total loss of COP488
billion ($165 million) last year, a reduction of 50% from the
previous year's loss of COP958 billion ($324 million).

"The investment portfolio of Valores Bavaria is more healthy and
already more profitable than it was one year ago," said the
Company's president, Javier Aguirre.

Mr. Aguirre forecasts the conglomerate's losses would be further
reduced in 2003 to about COP240 billion. The executive revealed
that the conglomerate, which is controlled by Colombian magnate
Julio Mario Santo Domingo, is looking to restore its financial
health as soon as 2004.

The drive to regain profitability follows Santo Domingo's
decision to divorce his cash-cow, brewer Bavaria, from the
conglomerate two years ago. The separation left Valores hobbled,
and the firm is struggling to walk again.

Aguirre explained part of Valores' strategy was to scale back its
debt load, which stood at more than US$250 million in 2002. It
made US$71 million in advanced payments on 2003 and 2004 debt to
head-off losses in the next two years.

At the same time, Valores has said it is looking to expand abroad
as it attempts to hedge against economic troubles in Colombia as
well as fallout from the Andean nation's four-decade-old
guerrilla war.

CONTACT:    VALORES BAVARIA SA
            No 7A-47 Calle 94
            Santafe de Bogota DC
            Colombia
            Phone: +57 1 600 2100
            Home Page: http://www.bavaria.com.co/
            Contacts:
            Javier Aguirre Nogues, Chairman
            Leonor Montoya Alvarez, President
            Victor Alberto Machado Perez, Secretary



===================================
D O M I N I C A N   R E P U B L I C
===================================

TRICOM: Reports 2002 Fourth Quarter, Full-Year Results
------------------------------------------------------
Tricom, S.A. (NYSE: TDR) announced on Tuesday unaudited financial
results for its fourth quarter and year ended December 31, 2002.
Consolidated revenues totaled $61.2 million for the 2002 fourth
quarter, a decrease of 8.2 percent from the 2001 fourth quarter,
and increased 5.7 percent to $257.6 million for the full-year.
Consolidated EBITDA totaled $16.3 million for the 2002 fourth
quarter and $76.2 million for the full-year. The Company's
revenues and EBITDA results reflect the impact of both currency
devaluation, affecting the translation of revenues generated in
Dominican pesos into U.S. dollars, and lower installation and
activation revenues throughout the year. During the fourth
quarter, the Dominican peso depreciated by approximately 12.0
percent against the U.S. dollar, and declined by approximately
26.0 percent year-over-year. Reported net loss for the fourth
quarter was $22.4 million, or $0.51 per share, reflecting an
asset impairment charge of $5.9 million, and $62.1 million, or
$1.43 per share, for the full-year.

During 2002, the Company worked aggressively to strengthen its
balance sheet undertaking both a substantial debt reduction, with
the proceeds from a $70 million private equity infusion in the
fourth quarter, and improving its debt maturity schedule by
refinancing approximately $118 million of short-term debt into
long-term maturities. As a result, the term structure of the
Company's total debt has been improved, with the proportion of
short-term debt falling to 17.6 percent at the end of 2002 from
36.2 percent at the end of 2001. Total debt, including capital
leases and commercial paper, amounted to $468.0 million at
December 31, 2002. Net debt (total debt less cash and cash
equivalents) totaled $446.8 million at December 31, 2002 compared
to $470.4 million at December 31, 2001.

For 2002, capital expenditures decreased by 45.4 percent to $63.7
million compared to $116.6 million in 2001. The Company's
operating free cash flow (cash flow from operations less cash
used in investing activities) deficit declined 69.0 percent to
approximately $44 million in 2002 compared to a deficit of
approximately $143 million in 2001, reflecting the Company's
reduced capital spending and working capital improvement.

"During 2002, Tricom took significant steps to strengthen its
capital structure and improve its liquidity position," said
Arturo Pellerano, Chairman and CEO. "Our fourth quarter results
were under pressure from the effects of currency devaluation. We
have taken steps to minimize the effects of the current operating
environment by increasing rates and tariffs across our business
segments. We continue to see opportunity for growth across many
of our core businesses. In 2003, we will continue to focus our
efforts on growing our customer base in the most attractive
segments, reducing our capital spending by focusing our
investments on high-margin business with more immediate revenue
growth potential, and will be driven by an intense focus on cost
reduction and discipline expense management," added Pellerano.

Local service revenues totaled $15.0 million in the 2002 fourth
quarter, a 12.0 percent decrease from the 2001 fourth quarter,
and increased by 4.2 percent to $66.1 million during 2002. The
quarter-over-quarter decrease in local service revenues reflects
the impact of currency devaluation. Local service revenue growth
in the 2002 fourth quarter, assuming no change in the exchange
rate or on a constant exchange rate basis, was 1.0 percent
compared to the fourth quarter of 2001, and 11.0 percent for the
year. At the end of the year, the Company had fewer lines in
service than in 2001, primarily as a result of its previously
announced strategy of disconnecting low-usage subscribers. Lines
in service at December 31, 2002 decreased 15.2 percent to
approximately 150,000, in line with the Company's expectations.

U.S. dollar-denominated international revenues grew 7.2 percent
to $22.7 million in the 2002 fourth quarter, and increased 7.1
percent to a record $87.8 million for 2002. The year-over-year
and quarter-over-quarter growth was attributable to strong
international traffic flow derived from the Company's U.S.
wholesale long distance operations.

Cellular and PCS revenues totaled $8.8 million in the 2002 fourth
quarter, a decrease of 2.5 percent from the 2001 fourth quarter,
and exhibited a moderate increase for the year, totaling $37.3
million. The decrease in quarter-over-quarter cellular and PCS
revenues was primarily due to the depreciation of the Dominican
peso. On a constant exchange rate basis, cellular and PCS
revenues grew 14.9 percent compared to the fourth quarter of
2001. The Company's wireless subscribers at December 31, 2002
totaled 432,000, an 18.7 percent increase year-over-year.

Cable television revenues totaled $4.2 million in the 2002 fourth
quarter, a 10.3 percent decrease from the 2001 fourth quarter,
and totaled $21.1 million for the year, the first full-year
following the acquisition of cable operations in the fourth
quarter of 2001. Cable revenues were primarily derived from basic
and premium-programming services and were reduced in the 2002
fourth quarter by the effect of currency devaluation. Cable
revenue growth in the 2002 fourth quarter on a constant exchange
rate basis was 8.3 percent compared to the fourth quarter of
2001. Cable subscribers increased 11.3 percent from the end of
2001 to approximately 72,000 at the end of 2002.

Data and Internet revenues grew 29.9 percent to $2.9 million
during the 2002 fourth quarter. For the year, data and Internet
revenues increased 32.9 percent to $11.0 million, primarily due
to the continuing growth in the number of data and Internet
subscribers. The quarter-over-quarter and year-over-year growth
in data and Internet services was reduced by the devaluation of
the Dominican peso.

The Company's quarter-over-quarter and year-over-year
consolidated revenues reflect lower installation and activation
revenues. Installation and activation revenues for the 2001
periods include fees deferred from previous periods in accordance
with the U.S. Securities and Exchange Commission (SEC) Staff
Accounting Bulletin 101. Most fees so deferred have been
recognized before 2002 and such fees have decreased since 2001.
Installation and activation revenues totaled $698,000 in the 2002
fourth quarter compared to $5.0 million in the 2001 fourth
quarter. For the year, installation and activation revenues
totaled $4.0 million compared to $14.3 million in 2001.

Consolidated operating costs and expenses increased 1.9 percent
to $69.6 million in the 2002 fourth quarter and increased 14.8
percent to $263.2 million for the year. These results reflect
higher transport and interconnection charges resulting from
higher outgoing volume of traffic terminating in other networks,
increased depreciation and amortization charges, as well as
higher general and administrative expenses, offset in part by
lower expenses in lieu of income taxes. During the 2002 fourth
quarter, the Company recorded a $5.9 million non-cash asset
impairment charge in its network depreciation expense related to
its analog cellular and paging networks. The impairment charge
was taken in connection with the Company's adoption of Statement
of Financial Accounting Standards ("SFAS") No. 144.

Selling, general and administrative expenses (SG&A) reached $22.9
million in the 2002 fourth quarter, compared to $29.2 million in
the fourth quarter of 2001, a 21.5 percent decrease. For the
full-year, SG&A totaled $94.9 million compared to $87.8 million
in 2001. The year-over-year increase in SG&A expenses was the
result of cable television operations acquired in the fourth
quarter of 2001 being included in operations for the full-year
for the first time and the launch of the Company's Panamanian
operations in the first half of 2002.

Interest expense totaled $16.4 million in the 2002 fourth quarter
compared with $13.6 million in the prior year quarter, and
totaled $63.7 million for the full-year compared with $42.1
million in 2001. The increases were due primarily to higher
average outstanding debt combined with lower interest
capitalization.

On December 18, 2002, the Company filed a Registration Statement
with the SEC for the proposed exchange of all $200 million of its
outstanding 11 3/8% Senior Notes due 2004 for New Notes and
Warrants. The Company also expects to solicit consents from the
holders of the outstanding Senior Notes to amend or eliminate
certain of the covenants contained in the current indenture. The
Registration Statement has not been declared effective. At this
time the final details of the exchange offer have not been
finalized. Currently, the SEC is reviewing the Registration
Statement.

The New Notes and Warrants 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
buy nor shall there be any sale of the New Notes or Warrants 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.

About TRICOM

Tricom, S.A. is a full service communications services provider
in the Dominican Republic. We offer local, long distance, mobile,
cable television and broadband data transmission and Internet
services. Through Tricom USA, we are one of the few Latin
American based long distance carriers that is licensed by the
U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through our
subsidiary, TCN Dominicana, S.A., we are the largest cable
television operator in the Dominican Republic based on our number
of subscribers and homes passed. We also offer digital mobile
integrated services including two-way radio and paging services
in Panama using iDEN(R) technology. For more information about
TRICOM, please visit www.tricom.net

Cautionary Language Concerning Forward-Looking Statements

This release contains certain "forward-looking statements" based
on management's current expectations, which may involve known and
unknown risks, uncertainties, and other factors not under
TRICOM's control, which may cause actual results, performance and
achievements of TRICOM to be materially different from the
results, performance, or expectations of TRICOM. These factors
include, but are not limited to those detailed in TRICOM's
periodic filings with the Securities and Exchange Commission.
This does not constitute an offer of any securities for sale.

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

CONTACT:  Investor Relations of Tricom, S.A.,
          Miguel Guerrero
          Phone: +1-809-476-4044, +1-809-476-4012
          E-mail: investor.relations@tricom.net
          Home Page: http://www.tricom.net



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

AHMSA: Still At Odds With Creditors, No Solution In Sight
---------------------------------------------------------
Seems like Mexican steelmaker AHMSA is not at all keen on
resolving a conflict with its creditor bank, local newspaper El
Economista suggested. The Company, which entered into a form of
bankruptcy protection almost four years ago, has not advanced
after a series of anomalies and stalling strategies forced the
steering committee to break off talks and opt for a judicial
process to recover their loans.

AHMSA owes US$1.85 billion to the banks. Under a plan
provisionally agreed to by the banks, but never implemented by
Ahmsa's board, the Company's controlling group GAN would have
given the financial institutions 40% of the steelmaker in return
for writing off US$540 million of the debt.

GAN would have maintained 50.1% of shares and the rest of the
debt was to have been paid off by 2009, while Ahmsa would also
have sold off US$120 million worth of non-core assets.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.AHMSA.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


GRUPO MEXICO: Expects To Close Debt Deal Shortly
------------------------------------------------
Grupo Mexico, the world's third-largest copper miner, assured the
market that it is close to reaching credit deals with banks that
will help it complete a long-awaited financial restructuring.

"The process is going very well... We are very close to this
(agreement)," a spokesman told Reuters.

It was unclear however, if the final credit agreement will be
with a syndicate of banks or through deals with individual banks.
The source only said: "It is credit that is being negotiated with
various banks."

Grupo Mexico, whose debt totaled US$2.935 billion as of Dec. 31,
has been assuring investors since last year that it is getting
its books back in order, although analysts became skeptical as
payment dates came and went.

In January, the Company said it would be ready within days to pay
about US$550 million in debt due that month, after reaching an
agreement with the U.S. Justice Department that allowed it to
sell its prized 54% stake in Southern Peru Copper Corp., a Peru
miner, to its Mexican mining unit.

Asarco owes US$450 million in a revolving debt facility to banks
and another US$100 million to an environmental clean-up trust,
guaranteed by Grupo Mexico.

Those debts remain outstanding, although investors reacted
positively on Monday to an announcement by Grupo Mexico of a
US$310 million loan contract with local bank Inbursa for its U.S.
subsidiary Americas Mining Corporation and said it would use the
funds to restructure its finances.

To see financial statements:
http://bankrupt.com/misc/Grupo_Mexico.pdf

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 M,xico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                      Finance  President


INSILCO: Announces Asset Auction Results
----------------------------------------
Insilco Holding Co. announced on Tuesday that Amphenol
Corporation has emerged as the successful bidder in a competitive
auction for the majority of Insilco Technologies, Inc.'s custom
assembly business assets for approximately $14 million, subject
to closing adjustments. The results of the auction will be
presented for approval by the United States Bankruptcy Court for
the District of Delaware at a hearing in Philadelphia, PA, on
March 7, 2003.

Because there were no competitive bids submitted for the
Company's other going concern assets, the Bankruptcy Court will
be asked to approve the sale of those assets pursuant to
previously announced contracts. Specifically, Bel Fuse Ltd. has
agreed to purchase the passive components business for
approximately $35 million; SRDF Acquisition Company LLC, a
private investor group, will purchase the stamping assets for
approximately $13 million; LL&R Partnership, a private investor
group, will purchase the North Myrtle Beach custom assembly
business for approximately $1.7 million. Insilco Technologies,
Inc. has also agreed to sell the Ireland-based custom assembly
business to that facility's general manager, Mr. Stephen Bullock,
for approximately $850,000.

The closing of the transactions remain subject to, among other
things, customary closing conditions and Bankruptcy Court
approval.

Insilco Holding Co., and certain of its domestic subsidiaries,
filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy
Code on December 16, 2002, with the stated intention to
facilitate the planned sales of the going concern assets of the
Company.

About Insilco Holding Co.

Insilco Holding Co., through its wholly-owned subsidiary Insilco
Technologies, Inc., is a leading global manufacturer and
developer of a broad range of magnetic interface products, cable
assemblies, wire harnesses, high-speed data transmission
connectors, power transformers and planar magnetic products, and
highly engineered, precision stamped metal components.

Insilco maintains more than 1.5 million square feet of
manufacturing space and has 21 locations throughout the United
States, Canada, Mexico, China, Ireland and the Dominican Republic
serving the telecommunications, networking, computer,
electronics, automotive and medical markets. For more information
visit our sites at www.insilco.com or
www.insilcotechnologies.com.

Investors: Michael R. Elia
Sr. Vice President & CFO
(614) 791-3117

Media: Kimberly Kriger/Adam Weiner
Kekst and Company
(212) 521-4800


PEMEX: To Swap $3.25B Worth Of Notes
------------------------------------
Mexico's state oil company Pemex filed with the US Securities &
Exchange Commission to exchange notes worth a total of US$3.25
billion. The operation, according to Business News Americas, is
aimed at enhancing the liquidity of the notes. The Company plans
to exchange US$600 million in Pemex paper at 6.5% due February 1,
2005 for notes of the same value, interest rate and due date by
deadline March 17.

Furthermore, it will look to exchange Pemex Master Trust paper
worth US$750 million at 8% due 2011, US$1 billion at 7.875% due
2009, US$500 million at 8.625% due 2022, and US$1 billion ay
7.375% due 2014 to notes of the same terms and conditions by
deadline March 25.

The Pemex Master Trust papers were issued between November 2001
and December 2002, and are unconditionally guaranteed by Pemex.

A source from Pemex's finance department said that the new notes
are more liquid and therefore more beneficial to the Company.


PEMEX: Awards Schlumberger $60M Contract
----------------------------------------
Schlumberger Limited (NYSE:SLB) announced Tuesday a $60-million,
two-year contract with PEMEX Exploration and Production (PEMEX
E&P) to provide information management solutions to all of its
upstream asset units. PEMEX E&P is a division of PEMEX, the
Mexican state-owned petroleum company.

The solution will comprise lifecycle information management
services from Schlumberger Information Solutions and
SchlumbergerSema change management expertise. This will enable
PEMEX to significantly enhance data access, administration and
analysis--leading to faster and improved decision making.

"Information management is a key component of the PEMEX technical
computing strategy. The contract leverages proven information
management solutions, expert services and consulting processes of
Schlumberger. Exploration and production (E&P) professionals have
access to relevant data--petrotechnical, financial, production
operations, and portfolio optimization--that enables them to make
better business decisions and develop new opportunities more
rapidly," said Jose Luis Figueroa, manager, PEMEX E&P Information
Management Project.

Electronic and nonelectronic data from different sources will be
integrated and consolidated into one virtual repository, which
involves capturing, digitizing and scanning/indexing E&P
information and associated physical assets, such as cores, fluid
samples, sieves and thin sections. This will be accomplished
using a common data model that follows well-defined standards
using international best practices and a common set of procedures
countrywide.

Schlumberger will provide information management services in a
secure, high-performance environment with operations support,
monitoring and change management consulting for its industry-
leading InfoStream(a) family of personalized information
lifecycle solutions supporting post stack seismic, well log,
wellbore, production, and sample/interpreted subsurface model
information. All services will be supported by the change
management competencies and five-step business transformation
methodology of SchlumbergerSema.

"PEMEX has embarked on a business transformation that will
undoubtedly have a tremendous impact on the E&P industry in
Mexico, and we are pleased to have the opportunity to support
these efforts," said Jose Magela Bernardes, general manager,
Mexico, Schlumberger. "The combination of consulting and systems
integration expertise will enable PEMEX E&P to maximize the value
of its data assets, to provide efficient administration and rapid
delivery of data to PEMEX geoscientists and engineers, helping to
achieve business goals.

"The success of this type of project is highly dependent on the
team's ability to address all change management aspects from
technical to people issues to enhance efficiency and enable more
accurate decisions in a timely manner, while maintaining the
integrity and value of data--the most important asset in the E&P
business," he concluded.

About the Organizations

PEMEX is the third largest oil producer in the world and is the
tenth largest among world natural gas producers. Based on
reserves, PEMEX is the ninth largest company in the world and is
the 15th largest in natural gas reserves.

Schlumberger Limited is a global technology services company
consisting of two business segments. Schlumberger Oilfield
Services, the largest oilfield services company in the world, is
the leading provider of technology services and solutions to the
international petroleum industry. SchlumbergerSema is a major
Information Technology services company providing consulting,
systems integration, IT infrastructure management and managed
services to the energy and utilities, telecommunications,
finance, transport and public sector markets. In 2002,
Schlumberger revenue was $13.5 billion. For more information
visit http://www.slb.com

CONTACT:  Schlumberger Oilfield Services
             Susan Ganz, 713/513-2480 or 281/285-8245
             E-mail: sganz1@slb.com
             or
             SchlumbergerSema
             Ariane Labadens, 33-1-4062-1187
             E-mail: labadens@paris.sl.slb.com


UNEFON: Airspan Announces Sale Of WipLL System To Telecosmo
-----------------------------------------------------------
Airspan Networks, Inc. (Nasdaq: AIRN), a leading global provider
of fixed broadband wireless DSL networks, announced its first
fixed wireless access network deployment in Mexico, with the sale
of its WipLL system to Telecosmo an affiliate of Unefon, S.A de
CV.

Telecosmo owns licensed spectrum in the 3.4 GHz frequency range
throughout the entire country. It will initially deploy Airspan's
high-speed Internet WipLL system in the capital city of Mexico
City to serve residential and small business subscribers not
being served by traditional wired broadband providers such as
Telmex (Telefonos de Mexico, S.A. de CV).

In conjunction with the sale, Telecosmo and Airspan have entered
into a supply agreement which enables the Mexican company to
purchase WipLL subscriber units and its related infrastructure in
2003 in order to expand its initial rollout phase to areas
outside of the city.

"The Mexican Internet access market is experiencing significant
growth, however, broadband access penetration is extremely low
and is expected to explode in the following years", said Jesus
Celorio chief operating officer of Telecosmo.". With Airspan's
WipLL technology, Telecosmo will be able to enter the market with
high quality services at reasonable prices positioning the
company as the best alternative for the consumer".

WipLL enables end users to enjoy a reliable, high-speed Internet
connection, while providing operators an opportunity to grow
their subscriber base quickly and efficiently without the high
capital expenditures associated with the trenching of underground
telephone lines in environments where telecommunications
infrastructure is poor.

"We're excited about completing our first transaction in Mexico,"
said Dave Reeder, Airspan's vice president of sales for North
America. "This is a significant deal because it opens up a huge
Latin American market for Airspan. The Mexican market is similar
to the U.S. market, with large incumbent providers and developed
networks. Our entry with such a reputable provider can serve as a
catalyst to help Airspan assert itself as the premier fixed
wireless equipment provider in the region."

The Mexico contract signing follows one month after Airspan
announced its first sale of WipLL in the Americas region to
ILLUMINAT of Trinidad & Tobago in the Caribbean. Airspan has also
announced efficient pricing packages for operators deploying
smaller WipLL networks in the United States, in response to the
U.S. Department of Agriculture's $1.4 billion grant program for
rural telecommunications providers.

More then two million of Mexico's 3.4 million Internet users
reside in Mexico City. But less than 75,000 users have a wireless
broadband connection today. According to the International Data
Corporation (IDC), the number of people accessing the Internet in
Mexico will almost double by the end of 2004. More than one
million of those users will be connected via a high-speed
wireless broadband solution, representing a wireless broadband
penetration growth from current levels of three percent to more
than 17 percent. This indicates that in the next two years, more
than one million wireless broadband connections will be
established in Mexico.

About Airspan Networks

Airspan Networks provides wireless DSL systems and solutions to
both licensed and unlicensed operators around the world in
frequency bands between 900 MHz to 4 GHz, including both PCS and
3.5GHz. The company has deployments with more than 102 operators
in more than 57 countries. Airspan's systems are based on radio
technology that delivers excellent area coverage, high security
and resistance to fading. Airspan's systems can be deployed
rapidly and cost effectively, providing an attractive alternative
to traditional wired communications networks. Airspan also offers
radio planning, network installation, integration, training and
support services to facilitate the deployment and operation of
its systems. Airspan's main operations are based in Uxbridge,
United Kingdom with a WipLL product research and development
facility in Lod, Israel, employing approximately 60 people. More
information on Airspan can be found at http://www.airspan.com

About Telecosmo

Telecosmo is the brand name under which Operadora de
Comunicaciones, S.A. de C.V., a subsidiary of Unefon, S.A. de
C.V. provides wireless broadband Internet access. Operadora de
Comunicaciones holds licenses in the 3.4 GHz frequency band for
all of the nine regions of Mexico.

CONTACT:  Airspan Networks (Media Inquiries)
          Al Quintana, Senior Director, Marketing Communications
          Tel: +1 561 893-8683
          Fax: +1 561 893-8681
          Email: aquintana@airspan.com

          (Investment inquiries)
          Peter Aronstam, Chief Financial Officer
          Tel: +1 561 893-8682
          Fax: +1 561 893-8671
          Email: paronstam@airspan.com


VITRO: Targets Construction Industry In Effort To Up Sales
-------------------------------------------------------------
Mexican glassmaker Vitro's efforts to increase sales this year
will center on the construction industry with flat glass as its
main revenue generator.

"Basically we'll attack the construction industry. Flat glass
will remain our main revenue generator," Juan Orozco, Vitro's
vice president of corporate finance, said.

According to Reuters, Vitro's flat glass division represents
nearly 55% of the Company's revenues and it is where increased
demand is expected as a result of a pickup in spending on social
housing.

This year, the Company will invest US$37 million in a glass
manufacturing plant in the city of Mexicali in northern Mexico to
increase its business in the United States, which accounts for
42% of its foreign sales.

Vitro will spend another US$104 million on investment this year,
Orozco said.

Although Vitro is not expecting growth in demand from the U.S.
construction industry in 2003, sales to that sector should remain
close to US$450 million, Orozco said.

New sources of financing and the aggressive debt restructuring
carried out over the past two years will help Vitro lower its
costs in 2003, he said.

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

          (Media Mexico D.F.):
          Eduardo Cruz
          Tel: +52 (55) 5089-6904
          Email: ecruz@vitro.com

          (Financial Community):
          Beatriz Martinez
          Tel: +52 (81) 8863-1258
          Email: bemartinez@vitro.com

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

          URL: http://www.vitro.com



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

CITGO PETROLEUM: Moody's Confirms Ratings, Negative Outlook
-----------------------------------------------------------
The recent completion of the three financings totaling US$950
million by CITGO Petroleum Corporation resulted in a confirmation
of its ratings by Moody's Investors Service. The agency confirmed
the Ba3 senior implied and senior unsecured long-term ratings of
CITGO, concluding a review of those ratings for possible
downgrade. The outlook for those ratings remains negative.

At the same time, Moody's assigned a rating of Ba2 with a
negative outlook to CITGO's US$200 million senior secured Term B
Loan.

Moody's believes the financings will alleviate CITGO's near-term
liquidity stress stemming from the disruptions in crude
deliveries under the Company's long-term crude supply agreements
with affiliates of its parent, Petroleos de Venezuela PDVSA. They
include a US$550-million Senior Note issue and a US$200-million
senior secured three year term loan, together providing US$750
million of new cash, and a US$200 million accounts receivable
facility that will provide replacement funds for a similar
recently canceled facility.

"These funds will help address CITGO's working capital needs,
including the impact of shortened payment terms on third party
crude purchases and maturing bank letters of credit that will
need to be repaid or refinanced."

The ratings also reflect Moody's expectation that, to the extent
CITGO maintains adequate liquidity for its own internal needs,
these financings will provide cash to retire some portion of PDV
America's US$500 million of senior notes that mature in August
2003.

Moody's is maintaining a negative outlook on all the ratings,
reflecting continuing uncertainty over the impact of reduced
crude production and exports from Venezuela on CITGO's operations
and working capital needs, and the possibility that future
actions by CITGO to undertake additional secured financings could
result in the notching down of its senior unsecured ratings.

CITGO Petroleum Corporation is headquartered in Tulsa, Oklahoma.


PDVSA: Restarts San Roque Operations
------------------------------------
Venezuela's state oil company PDVSA restarted operations at its
San Roque refinery after shutting it down last December 19 at the
height of the country's national strike, reports Business News
Americas.

The start of operations "will allow us to produce 55-60 tonnes a
day of liquid paraffin," Puerto La Cruz refinery CEO Nelson
Martinez said.

Liquid paraffin is used as input for a range of wax products -
tires, candles and matches - as wells as to produce diesel. The
refinery, the only producer of liquid paraffin in Venezuela,
meets the country's total domestic needs for the product.



               ***********


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

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