/raid1/www/Hosts/bankrupt/TCRLA_Public/030321.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, March 21, 2003, Vol. 4, Issue 57

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Trinidad Cabinet's Discussion on Aid Unfinished


A R G E N T I N A

BANCO FRANCES: Overhauls Board
CLISA: S&P Withdraws Ratings On Request
COLORIN INDUSTRIA: Evaluadora Rates Corporate Bonds `D'
DIRECTV LATIN AMERICA: Issues Chapter 11 Database
DIRECTV LATIN AMERICA: Lists 20-Largest Unsecured Creditors

DIRECTV LATIN AMERICA: Meeting US Trustee To Form Committees
DIRECTV LATIN AMERICA: Motion To Obtain $300M Of DIP Financing
DIRECTV LATIN AMERICA: More Markets To Include Local Channels
METROVIAS: No Improvement, Category 3 Share Rating Remains
TGS: S&P Lowers Local and Foreign Currency Ratings to 'D'

* IMF Approves $307M Loan For Argentina


B E R M U D A

TRENWICK GROUP: Has Until Friday To Refinance $75M Debt


B R A Z I L

CESP: Warns Of Possible Default If Investors Reject Debt Plan
COSIPA: Waste Materials Generate Profits
CPFL: Company President Meets Officials To Discuss BNDES Loan
TELEMAR: Announces New R$180M Contract For Network Management


C O L O M B I A

EMCALI: Has Less Than A Month To Make Progress In Debt Talks


C O S T A   R I C A

ICE: Plans to Launch VoIP in 2005


M E X I C O

PEMEX: Record Low Production Spurs Exploration
PEMEX: Reports Highs and Lows of January-February Output
PEMEX: May Call For Minatitlan Upgrade Bids in April


P A R A G U A Y

ANDE: To Present Fund Raising Proposals To Board


P A N A M A

PAFCO: Agrees To Sell Assets For $21M


P E R U

BACKUS: Sells $50M Worth of Bonds


V E N E Z U E L A

CANTV: Creates New Department In Order to Cut Costs

     -  -  -  -  -  -  -  -

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

LIAT: Trinidad Cabinet's Discussion on Aid Unfinished
-----------------------------------------------------
The Cabinet of Trinidad discussed the possibility of considering
financial assistance to troubled Antiguan carrier, LIAT, relates
the Jamaica Observer. However, Asha Samaroo, a spokesperson for
Prime Minister Patrick Manning said that the Cabinet did not
reach a conclusion during its discussions.

In the meantime, Mr. Manning said that he has not determined the
form of financial assistance, if any, his country would extend to
LIAT.

"We will consider all the facts," he said.

The Cabinet meeting followed a visit by St. Vincent and the
Grenadines Prime Minister Ralph Gonsalvez, who discussed LIAT's
plight with Mr. Manning.

Earlier reports indicate that LIAT is in need of a US$9.2 million
capital infusion to keep it alive. Last year, the airline
obtained a US$11 million loan from Barbados-based CIBC West
Indies Holdings to replace aging planes and finance severance
packages, as it laid off 241 employees.



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

BANCO FRANCES: Overhauls Board
------------------------------
BBVA Banco Frances S.A., the Argentine unit of Spain's Banco
Bilbao Vizcaya Argentaria S.A., named two new board members at a
board meeting Monday.

Dow Jones reports that the Company appointed current director
Jorge Bledel to the position of chairman, replacing Jaime
Guardiola Romojaro, who has gone to the Spanish parent company's
Mexican unit.

The Company also appointed Juan Ignacio Gimenez Echeverria to the
position of vice chairman. Prior to Echeverria's appointment, the
post of vice chairman was vacant.

In addition, Oscar Castro was also named a new director.

The appointments follow the unexpected and unexplained
resignations of the previous chairman, two directors and two
alternate directors.

The major Banco Frances' board changes come less than a month
after the Company revealed a ARS264.8 million loss in the fourth
quarter, bringing its accumulated loss for the year to ARS1.242
billion.

While a company official said the turnover wasn't connected to
the bank's recent results, those results were clearly not good,
with shareholders losing ARS0.72 per share in the last quarter.

Banco Frances, one of Argentina's largest private commercial
banks, closed 70 branches and dismissed 880 employees last year
due to the serious financial crisis that rocked Argentina.

CONTACT:   BANCO FRANCES
           Maria Elena Siburu de Lopez Oliva
           Investor Relations Manager, in Argentina
           Tel. 5411-4341-5035
           E-mail: mesiburu@bancofrances.com.ar

           Maria Adriana Arbelbide
           Investor Relations
           Tel. 5411-4341-5036
           E-mail: marbelbide@bancofrances.com.ar


CLISA: S&P Withdraws Ratings On Request
---------------------------------------
Standard & Poor's Ratings Services said Wednesday it withdrew its
'D' corporate credit rating on Argentine infrastructure and
public services company Compa¤¡a Latinoamericana de
Infraestructura & Servicios S.A. (CLISA), at the company's
request. The 'D' rating on the company's US$100 million senior
unsecured notes due June 2004 is also withdrawn.

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


COLORIN INDUSTRIA: Evaluadora Rates Corporate Bonds `D'
-------------------------------------------------------
Evaluadora Latinoamericana S.A. Calificadora de Riesgo issued a
rating of `D' to the corporate Bonds issued by Argentine company
Colorin Industria de Materiales Sintet.

According to an announcement from the National Securities
Commission of Argentina, the rating was issued on Monday, and
affects US$47 million of bonds described as "Obligaciones
Negociables."

The bonds, classified under `Simple Issue', would come due on
March 31, 2006. The rating agency did not indicate the reasons
behind the rating, which was based on the Company's financial
performance as of the end of December 2002.


DIRECTV LATIN AMERICA: Issues Chapter 11 Database
-------------------------------------------------

Debtor:           DirecTV Latin America, LLC

Bankruptcy
Case Number:      03-10805 (PJW)

Chapter 11
Petition Date:    March 18, 2003

Bankruptcy Court:
                   United States Bankruptcy Court
                   District of Delaware
                   824 Market Street, 5th Floor
                   Wilmington, DE 19801
                   (302) 252-2900

Bankruptcy Judge: The Honorable Peter J. Walsh

Debtor's
Lead
Bankruptcy
Counsel:          Lawrence K. Snider, Esq.
                   Stuart M. Rozen, Esq.
                   Alex P. Montz, Esq.
                   Sean T. Scott, Esq.
                   Mayer, Brown, Rowe & Maw
                   190 N. LaSalle Street
                   Chicago, Illinois 60603
                   Telephone (312) 782-0600
                   Fax (312) 701-7711

Debtor's
Local
Bankruptcy
Counsel:          Joel A. Waite, Esq.
                   M. Blake Cleary, Esq.
                   Young, Conaway, Stargatt & Taylor, LLP
                   The Brandywine Building
                   1000 West Street
                   P.O. Box 391
                   Wilmington, Delaware 19899-0391
                   Telephone (302) 571-6600
                   Fax (302) 571-1253

Debtor's
Restructuring
Advisor:          AP Services, LLC
                   (an AlixPartners affiliate)


Claims Agent:     Ron Jacobs
                   Bankruptcy Services LLC
                   Heron Tower
                   70 East 55th Street, 6th Floor
                   New York, New York 10022
                   Telephone (212) 376-8902

U.S. Trustee:     Frank J. Perch, III, Esq.
                   Office of the U.S. Trustee
                   844 King Street, Suite 2313
                   Lockbox 35
                   Wilmington, DE 19801
                   Telephone (302) 573-6491
                   Fax (302) 573-6497

Estimated Total Assets (as of Dec. 31, 2002): $600,000,000

Estimated Total Liabilities (as of Dec. 31, 2002): $1,600,000,000
(DirecTV Latin America Bankruptcy News, Issue. No. 1, Bankruptcy
Creditors' Service, Inc., 609/392-0900)


DIRECTV LATIN AMERICA: Lists 20-Largest Unsecured Creditors
-----------------------------------------------------------

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
Hughes                        Loan and           $1,367,433,742
Attn: Dave Baker              Miscellaneous
200 N. Sepulveda Blvd.        Debt
El Segundo, CA 90245

California Broadcast Center   Trade Debt            $32,127,494
Attn: Sandra Terry
Building A03 - M/S 3000
3800 Via Oro Avenue
Long Beach, CA 90810

Buena Vista (Disney)          Trade Debt            $25,082,664
Walt Disney Television
    (Latin America)
Attn: Luis Perez
Two Alhambra Tower, 9th Flr.
Coral Gables, FL 33134

HBO                           Trade Debt            $12,632,846
HBO Latin America Media
    Services, Inc.
One Alhambra Plaza, Penthouse
Coral Gables, FL 33134

LAPTV Atlanta Partners        Trade Debt             $5,651,289
Attn: Genaro Rionda
3845 Pleasantdale Road
Atlanta, GA 30340

Kirschsports                  Trade Debt             $4,932,000
Grafenauweg 2
P.O. Box 4442
6304 Zug SWITZERLAND

Music Choice                  Trade Debt             $3,642,709
Attn: Bob Ellis
300 Welsh Road, Building 1
Horsham, PA 19044

AOL                           Trade Debt             $3,132,825
Attn: Juan Carlos Urdaneta
101 Amrietta Street
Atlanta, GA 30303

Viacom -- MTV                 Trade Debt             $2,556,208
Attn: Antionette Zel
1111 Lincoln Road, 6th Floor
Miami Beach, FL 33139

Vivendi -- USA                Trade Debt             $2,301,809
Attn: Eric Denis
804 Douglas Road, Suite 700
Coral Gables, FL 33134

MGM                           Trade Debt             $2,263,301
Attn: Mel Vin Perz
Suite 1320
2800 Ponce de Leon Blvd.
Coral Gables, FL 33134

Discovery                     Trade Debt             $1,751,625
Attn: Enrique Martinez
Suite 190
6505 Blue Lagoon Drive
Miami, FL 33126

SONY                          Trade Debt             $1,648,615
Attn: Michael Grindon
10202 West Washington Blvd.
Culver City, CA 09232

ESPN (Disney)                 Trade Debt             $1,515,314
Attn: Russell Wolff
605 Third Avenue
New York, NY 10158

Troy Limited (Claxson)        Trade Debt             $1,451,637
Attn: Ralph Haiek
404 Washington Ave., 8th Flr.
Miami Beach, FL 33139

Corporacion Venezolana        Trade Debt             $1,368,504
    de Television (Claxson)
550 Biltmore Way, Suite 1180
Coral Gables, FL 33134

Hallmark                      Trade Debt               $966,412
Attn: Eduardo Vera
95 Merrick Way, Suite 460
Coral Gables, FL 33194

Weather Channel               Trade Debt               $856,994
Attn: Eddie Ruiz
Suite 101
8200 N.W. 52nd Terrace
Miami, FL 33166

Open TV, Inc.                 Trade Debt               $703,250
Attn: Accounts Receivable
401 East Middlefield Road
Mountain View, CA 94043

BBC Worldwide                 Trade Debt               $616,715
Attn: Simon Cottle
Room C306 BBC Woodlands
80 Woodlne
London W12 OTT UNITED KINGDOM

(DirecTV Latin America Bankruptcy News, Issue. No. 1, Bankruptcy
Creditors' Service, Inc., 609/392-0900)


DIRECTV LATIN AMERICA: Meeting US Trustee To Form Committees
------------------------------------------------------------
Frank J. Perch, III, Esq., the Assistant United States Trustee
for Region III stationed in Wilmington, will contact each of
DIRECTV LA's 20-largest unsecured creditors to invite them to an
organizational meeting for the purpose of forming an official
committee of unsecured creditors.

To determine the time, date and place for that meeting, contact
the U.S. Trustee's office at (302) 573-6491.

Creditors interested in serving on a Committee should complete
and return a statement indicating their willingness to serve on
an official committee.

Official creditors' committees, constituted under 11 U.S.C. Sec.
1102, ordinarily consist of the seven largest creditors who are
willing to serve on a committee.  In some chapter 11 cases, the
U.S. Trustee is persuaded to appoint multiple creditors'
committees.

Official committees have the right to employ legal and accounting
professionals and financial advisors, at the Debtor's expense.
They may investigate the Debtor's business and financial
affairs.  Importantly, official committees serve as fiduciaries
to the general population of creditors they represent.  Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtor and other
core parties-in-interest.  If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee.  If the Committee concludes
reorganization of the Debtor is impossible, the Committee will
urge the Bankruptcy Court to convert the Chapter 11 case to a
liquidation proceeding.

Immediately following the U.S. Trustee's determinations about how
many official committees will be appointed and who will be
appointed to each committee, the newly formed committees convene
their initial meeting.  The first order of business is to listen
to the U.S. Trustee explain the powers and duties of the
committee as a whole and members' individual responsibilities.
The Committee will generally elect a chairman.  Thereafter, the
Committee typically conducts beauty pageants to select their
legal and financial advisors. (DirecTV Latin America Bankruptcy
News, Issue. No. 1, Bankruptcy Creditors' Service, Inc., 609/392-
0900)


DIRECTV LATIN AMERICA: Motion To Obtain $300M Of DIP Financing
--------------------------------------------------------------
DIRECTV Latin America, LLC, entered into a $450,000,000 Revolving
Credit Agreement (Bridge Facility) on January 5, 2001, with --
according to data obtained from http://www.LoanDataSource.com--
a consortium of lenders led by Deutsche Bank AG, New York Branch
as Administrative Agent:

           Lender                               Commitment
           ------                               ----------
     Morgan Stanley Senior Funding, Inc.       $134,000,000
     Credit Suisse First Boston                  95,000,000
     Deutsche Bank AG                            59,250,000
     Morgan Guaranty Trust Company               59,250,000
     Bank of America, N.A.                       36,000,000
     Citicorp USA, Inc.                          36,000,000
     ING Bank                                    30,500,000
                                               ------------
          Total                                $450,000,000

Hughes Electronics Corporation guaranteed repayment of DIRECTV
LA's obligations and stepped into these Lenders' shoes on
February 20, 2002, when DIRECTV LA didn't pay.  Hughes has
advanced no new funds under the Loan Agreement, nor has it
received any payment.

Hughes has made additional loans and advances to DIRECTV LA and,
at the time of the Chapter 11 filing, is owed $1,345,000,000.

DIRECTV LA needs continued funding to operate.  Without a fresh
supply of credit, the business won't be able to pay its day-to-
day expenses.  Without immediate access to new post-bankruptcy
financing, DIRECTV LA will be forced to cease operations, CFO
Craig Abolt says.  That result, Mr. Abolt continues, would
destroy the company's going concern value, would make a
restructuring impossible, and would substantially diminish
creditor recoveries.

DIRECTV scouted for post-petition financing on an unsecured basis
prior to filing for chapter 11 protection.  It isn't available.
Hughes is the logical lender and has offered to step up to the
plate and underwrite a new $300 million senior secured super-
priority debtor-in-possession financing facility.  Hughes' offer,
the Debtor's concluded, is the most attractive and practical
solution to meet the Company's postpetition financing
requirements.

Against this backdrop, Lawrence K. Snider, Esq., at Mayer, Brown,
Rowe & Maw in Chicago tells Judge Walsh that the Debtor wants
immediate access to $30,000,000 on an interim basis, pending
final approval at a Final DIP Financing Hearing when the Company
will request authority to access the full $300,000,000.

The salient terms of the $300,000,000 Postpetition Financing
package are:

BORROWER:        DIRECTV Latin America, LLC

LENDER:          Hughes Electronics Corporation

COMMITMENTS:     $290,000,000 of Revolving Credit and a
                   $10,000,000 subfacility to back letters of
                               credit issued by Bank of America

MATURITY DATE:   February 29, 2004, or on the Effective Date of a
                  Plan of Reorganization

USE OF PROCEEDS: To provide for on-going working capital
                  needs of the debtor in possession, but only
                  in strict accordance with the terms of a
                  [non-public] cash budget delivered supplied
                  to Hughes.

INTEREST:        The higher of:

                  * Bank of America's reference rate plus 0.5%
                    and

                  * the Federal Funds Rate plus 3.00%.

FEES:            None, except for reimbursement of expenses
                  and costs.

FINANCIAL
COVENANTS:       The Debtor agrees to comply with three key
                  financial covenants under the DIP Facility:

                  (A) The Debtor and its subsidiaries promise
                      that EBITDA losses will not exceed:

                         For the Fiscal          Minimum
                         Quarter Ending           EBITDA
                         --------------          --------
                         June 30, 2003        ($28,600,000)
                         September 30, 2003   ($28,000,000)
                         December 31, 2003    ($36,500,000)

                  (B) The Debtor and its subsidiaries agree to
                      limit capital expenditures to:

                           Fiscal Year        Maximum CapEx
                           -----------        -------------
                              2003             $98,900,000
                              2004            $161,200,000

                  (C) The Debtor and its subsidiaries covenant
                      that revenues will be no less than:

                         For the Fiscal          Minimum
                         Quarter Ending          Revenue
                         --------------          -------
                         June 30, 2003         $95,200,000
                         September 30, 2003    $96,300,000
                         December 31, 2003     $98,200,000

SECURITY
& PRIORITY:      Hughes will hold an administrative priority
                  claim and first, senior and perfected
                  security interests in, and liens on, and
                  right of setoff against all of the Debtor's
                  otherwise unencumbered property pursuant to
                  11 U.S.C. Sec. 364, subject only to a
                  $1,000,000 Carve-out to allow for payment of
                  professionals and fees levied by the United
                  States Trustee and the Court Clerk.

Warren T. Buhle, Esq., at Weil, Gotshal & Manges LLP, in New
York, represents Hughes in this DIP Financing transaction.
(DirecTV Latin America Bankruptcy News, Issue. No. 1, Bankruptcy
Creditors' Service, Inc., 609/392-0900)


DIRECTV LATIN AMERICA: More Markets To Include Local Channels
-------------------------------------------------------------
DirecTV Latin America named 39 additional markets that will
include local channels in its service by the end of the year,
reports Dow Jones.

The Company currently has local channels in 52 markets. With the
39 additional markets, it will have more than 100 markets with
local channels at the end of 2003, representing 84% of U.S.
television households.

Citing a press release Wednesday, Dow Jones relates that DirecTV
is also considering adding local channels to more markets by the
end of the year or early 2004.


METROVIAS: No Improvement, Category 3 Share Rating Remains
----------------------------------------------------------
Fitch Ratings is maintaining its Category 3 rating on the shares
of Argentine public transport company Metrovias, Business News
Americas reports, citing a Wednesday statement from the ratings
agency. Category 3 is for low liquidity shares whose issuers have
a good capacity to generate profits.

Fitch said that the rating reflects Metrovias' exclusive 24-year
concession that began in 1994 and improved service quality. The
Company's economic-financial imbalance and operative
deterioration due to adverse external factors was also taken into
consideration, Fitch added.

Fitch pointed out that a government-dictated fare freeze in face
of increasing costs and dollar-denominated supplies have created
pressure on Metrovias' cash flow, while the country's economic
situation has led to a drop in passengers. The rating agency also
highlights the sector's highly regulated service.

Metrovias, which operates capital Buenos Aires' subway system, is
a division of Argentine construction and transportation company
Compania Latinoamericana de Infraestructura & Servicios SA
(CLISA).

The Company posted a ARS27.4 million (US$8.83mn) net loss for
2002. The loss added to CLISA's financial woes, which include a
missed interest payment on US$100 million of guaranteed senior
notes in December.


TGS: S&P Lowers Local and Foreign Currency Ratings to 'D'
---------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday it lowered its
local and foreign currency corporate credit rating on Argentine
gas transportation company Transportadora de Gas del Sur S.A.
(TGS) to 'D' from 'CC' and 'SD' (selective default),
respectively. The rating action follows the company's failure to
make a US$100 million principal payment due on March 18, as this
maturity has been included in the company's global debt
restructuring process announced on Feb. 24, 2003, presently under
process. However, TGS did comply with the scheduled interest
payment on the aforementioned notes for approximately US$850,000.

These senior unsecured notes matured originally on Dec. 18, 2002,
but TGS agreed with its bondholders to extend the maturity until
March 18, 2003. As the company increased the coupon, thus
compensating creditors for the extended period, the agreement was
not considered a default at that time. Thus, this is the first
payment the company missed after the restructuring was announced
and will be included in that process.

As of December 2002, TGS had approximately US$1 billion of debt.
Besides the notes maturing yesterday, other near-term maturities
include two bonds for US$150 million coming due in March 27 and
April 15. The rest of the debt includes facilities for US$200
million (with an OPIC guarantee) and US$330 million (under an IDB
umbrella). All of these instruments, plus about US$90 million in
short-term bank debt, will be included in the restructuring
proposal. The proposal will be implemented through an Out of
Court Agreement ("Acuerdo Preventivo Extrajudicial") under the
Argentine Bankruptcy Law. Standard & Poor's does not expect the
restructuring to be finalized before the maturities of the senior
notes coming due in March and April.

Although the company's contracted volumes in the domestic market
increased about 4% in 2002 and unregulated sales --which
represent about 55% of revenues in 2002-benefited from the
devaluation of the peso during the year, TGS's financial profile
severely weakened as a result of the government measures adopted
during the first months of 2002.

"Particularly damaging was the mandatory pesification of the
company's tariffs, without allowing for any compensating
adjustments, that, combined with the strong devaluation of the
peso, has created a significant mismatch between TGS' now mainly
peso-denominated cash flow and its dollar-denominated debt," said
credit analyst Luciano Gremone.

"Furthermore, there are still uncertainties about the company's
cash flow generation potential, given that the renegotiation of
the concession contracts in Argentina, mandated by the government
after the pesification of the tariffs, is still pending. We do
not expect the issue to be resolved until after the new
administration takes over, which is currently scheduled for late
May 2003," continued Mr. Gremone.

Standard & Poor's will monitor further developments on the
restructuring process and the contract renegotiation.

TGS has a 35-year license to operate Argentina's southern gas
transportation system and it's Argentina's largest natural gas
transportation company, delivering approximately 60% of the
country's total gas consumption.

ANALYSTS:  Luciano Gremone, Buenos Aires (54) 11-4891-2143
           Marta Castelli, Buenos Aires (54) 114-891-2128


* IMF Approves $307M Loan For Argentina
---------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Wednesday the first review of Argentina's performance
under a seven-month Stand-By Credit Arrangement approved on
January 24, 2003. The arrangement is designed to cover all
payment obligations to the IMF through August 2003. Wednesday's
decision releases an additional amount of SDR 226 million (about
US$307 million) under the Stand-By Arrangement.

The Executive Board also approved Argentina's request for waivers
of nonobservance of the structural performance criteria on the
issuance of new banking regulations and on the congressional
approval of the fuel tax conversion to an ad-valorem tax.

Following the Executive Board discussion, Horst K”hler, Managing
Director, said:

"At this stage of the first review of Argentina's program, the
financial program is well within the agreed framework. Recent
financial and economic indicators are encouraging, pointing to a
continuing recovery in economic activity and confidence. There
are, however, many challenges ahead. With regard to structural
reform, progress is being made in some areas, particularly in
dismantling exchange restrictions and strengthening contacts with
external creditors; however, in other areas, especially in steps
to rebuild the banking system, there have been delays.

"Regarding fiscal policy, the federal primary surplus during
January-February 2003 exceeded the programmed level, mainly as a
result of higher revenue from income taxes, trade, and the
financial transactions tax, as well as prudent expenditure
management. A better-than-expected outturn for provincial
finances in 2002, and the timely signing by most provincial
governors of the 2003 bilateral agreements, should anchor
continued provincial adjustment in 2003. The authorities are
encouraged to work closely with Congress to secure early passage
of the delayed fiscal structural measures, and with the other
international financial institutions, with the expectation that
this will serve to accelerate disbursements of external loans.
Social sector lending is helping to alleviate the social costs of
the crisis and preventing a larger share of the population from
falling below the poverty line.

"The financial authorities are to be commended for keeping
monetary policy in line with the program, increasing the size and
depth of the market for central bank paper, and further
liberalizing exchange controls. In the coming months, a continued
prudent monetary policy will be essential to anchor inflation
expectations. The early release of frozen deposits has so far not
affected the stability of bank deposits, but this process should
continue to be approached with caution. The recent Supreme Court
ruling that the pesoization of a provincial government's dollar
deposit in one state bank was unconstitutional has added to
uncertainties that should be resolved as quickly as possible.

"Regarding bank reforms, the Fund looks forward to the
implementation of bank and private debt restructuring measures
envisaged under the program. It is strongly recommended that the
authorities issue a full set of revised prudential regulations,
and define, and put into effect, a mechanism to compensate banks
for the adverse impact of asymmetric indexation and amparos at an
early date. The planned diagnostic reviews of the three main
public banks should also be launched without further delays. To
facilitate private debt restructuring, the authorities should
make all efforts to ensure legal certainty and protect creditor
rights.

"The authorities have recently intensified their dialogue with
private external creditors, and have agreed to draw up an action
plan, in consultation with the recently appointed debt advisor,
to carry the debt restructuring process forward. While welcoming
these actions, the Fund looks forward to further progress being
made by Argentina on the preparatory technical work for debt
restructuring, including the development of a database of
bondholders and the preparation of a menu of options for
restructuring.

"The Fund will continue to give full support to the authorities'
transitional program in order to underpin stability during the
upcoming political transition. The authorities are encouraged to
stay the course of their policy commitments under the program.
Continued prudent macroeconomic policies, along with progress in
the implementation of structural reforms-particularly in the
banking and public debt restructuring areas-would facilitate the
transition to the new administration, consolidate the recent
gains in financial stability, and help to secure timely
disbursements of additional external financing," Mr. K”hler said.

IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772



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

TRENWICK GROUP: Has Until Friday To Refinance $75M Debt
-------------------------------------------------------
Investors gave troubled Bermuda insurer Trenwick Group Ltd. until
Friday to refinance US$75 million in senior debt. Failure to
refinance the debt on the deadline will put the Company in
default under a credit facility supporting its underwriting
operations.

Citing a filing with the Securities and Exchange Commission, the
Royal Gazette reports that Trenwick was originally required to
refinance its debt by March 1, but the deadline was pushed back
to March 14 and now to March 21.

Standard & Poor's Corp. placed Trenwick's CCC- counterparty
credit rating under review earlier this month after concluding
that the insurer's chances of restructuring the senior debt were
"remote".

Meanwhile, the New York Stock Exchange has warned Trenwick that
its shares could be delisted from the exchange. Whether and when
the shares are delisted depends on negotiations between Trenwick
and holders of the US$75 million of debt.

If the NYSE decides to continue listing Trenwick, the Company
would have to provide the exchange with a business plan that
would enable compliance with listing criteria within 18 months.

Trenwick received a delisting notice from the NYSE in February
because its 30-day average share price had fallen below $1.

If Trenwick is delisted from the NYSE, the Company plans to seek
to trade its common shares and the perpetual preferred shares of
subsidiary LaSalle Re Holdings on the over-the-counter Bulletin
Board, the filing said.



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

CESP: Warns Of Possible Default If Investors Reject Debt Plan
-------------------------------------------------------------
Cia. Energetica de Sao Paulo, the state-owned power generator for
Brazil's biggest city, indicated it is likely default on part of
US$662 million in debt due in 2005 if investors reject a proposal
to reschedule the payment schedule, reports Reuters.

The power generator, Brazil's third-largest energy company, asked
bondholders to cancel the right to collect in full in May on
US$150 million in bonds. The Company instead wants to pay US$30
million, or 20% of the obligation on May 9, and pay the rest in
2005.

"Cesp doesn't have a plan B," company president Guilherme Cirne
de Toledo told Reuters. "And there is no chance the government is
going inject fresh capital into the company."

The Company, which is being advised by J.P. Morgan Chase & Co.,
also asked holders of another US$516 million in debt due next
year to delay payments at least until 2006.

President Luiz Inacio Lula da Silva's government has proposed
helping power generators such as Cesp by setting minimum prices
for power they sell. Regulators also aided power distributors by
allowing rate increases for consumers of almost 30 percent.

CONTACT:    Companhia Energetica De Sao Paulo (CESP)
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.cesp.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


COSIPA: Waste Materials Generate Profits
----------------------------------------
Cosipa, a Brazilian flat steelmaker, created a profitable
business from its waste, scrap and run-off material, reports
Business News Americas, citing the Company's manager of specialty
sales, Carlos Gama de Mori.

According to the report, the Company has been working with
various universities and research centers to develop new uses for
waste materials. So far, the Company managed to generate BRL21
million from sales of iron oxides and other items used by the
electronic industries. This year, revenue from waste products
rose 29.1 percent to BRl62 million.

Sales of run-off from the company's blast furnace amount to BRL18
million while revenue from side products from the coking area
reached BRL16.2 million last year. Mr. De Mori said that
Brazilian industrial group Votorantim has a contract with Cosipa
to purchase the materials. Run-off from the blast furnace can be
used in the cement industry.

Company-commissioned researchers are currently investigating the
use of run-off from melting shops as a soil additive and nutrient
for sugarcane and corn plantings. Mr. De Mori said that the
research has been ongoing for two years.

The Company also found that pitch can be used in the aluminum
business, while tar can be used for a number of purposes such as
fuel in electric power generation and desalination, among others.

CONTACT:  COSIPA
          Avenida do Cafe, 277
          Torre B, 8  e 9  andar
          Vila Guarani
          04311-000 Sao Paulo, Brazil
          Phone: +55-11-5070-8800
          Fax: +55-11-5070-8863
          URL: http://www.cosipa.com.br


CPFL: Company President Meets Officials To Discuss BNDES Loan
-------------------------------------------------------------
Cia. Paulista de Forca e Luz may borrow BRL1.3 billion (US$381
million) from the country's state development bank BNDES.
According to Valor Economico newspaper, Wilson Ferreira, the
utility's president, met with Development, Trade and Industry
Minister Luiz Fernando Furlan early this week to negotiate the
loan.

The loan is to be used to finance CPFL's plan to build new power
plants. But the newspaper suggested that the loan may be used to
pay debt that matures in April and May. This, after the Company's
attempt to sell up to BRL1.8 billion in debt to pay maturing
bonds and fund investments proved futile.

CPFL serves about 2.9 million customers in more than 230
municipalities in the state of Sao Paulo and distributes one-
fifth of electricity consumed in the state. Holding company VBC
Energia owns about 36% of CPFL.

CONTACT:  Rodovia Campinas Mogi-M­rim, Km 2.5, Jardim Santana
          CEP 13088-900 Campinas, Sao Paulo, Brazil
          Phone: +55-19-3756-8198
          Fax: +55-19-3756-8392
          Officers: Carlos Ermirio de Moraes, Chairman
                    Wilson Pinto Ferreira Jr., President and CEO
                    Otavio Carneiro de Rezende, Director Finance
                                             and Administration


KLABIN S.A.: S&P Affirms Ratings, Off CreditWatch
-------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it
affirmed its 'CCC+' local currency and foreign currency corporate
credit ratings on Brazilian paper goods company Klabin S.A.

The ratings were removed from CreditWatch, where they were placed
on Nov. 19, 2002. The outlook is now developing. Klabin's debt
totals approximately US$830 million.

"The rating affirmation reflects the still high concentration of
maturities in the short-term, and consequent vulnerability to
refinancing risk in a scenario of very illiquid capital and bank
markets. Although the local debentures issued by Klabin in
December 2002 allowed the company to meet debt requirements, they
failed to provide a long-term solution to debt maturities,"
commented Standard & Poor's credit analyst Milena Zaniboni.

Through a bridge loan and later issue of some Brazilian Real
(BrR) 1 billion in local debentures, Klabin managed to meet two
Eurobonds maturities at the end of 2002 amounting to $110
million, and rolled over other working capital maturities. The
conditions of the debentures, however, include acceleration
clauses that indicate that about BrR500 million will mature by
the end of 2003. While the company is expected to continue
posting strong results this year, it relies on asset sales and
refinancing of working capital loans (mostly trade-related) to
meet debt requirements. Considering the negative economic
environment in Brazil, the timing of asset sales might not
coincide with debt maturities.

Klabin's operating results are expected to remain strong in 2003
as it continues to focus on exports, and volumes in the local
market should remain at least stable. With low working capital
and investment requirements, Klabin should be free cash flow
positive.

Large maturities in the short term are the main constrain to the
rating.

Klabin's access to bank or capital markets is very limited after
the liquidity problems it faced in 2002. Strong free cash flow of
approximately $170 million in 2003 will allow for partial
repayment of maturities totaling $462 million, but Klabin still
needs to arrange funding alternatives for about $300 million. The
company owns important and valuable assets in the forest products
industry in Brazil that could be monetized and used to
substantially reduce debt. However, as the timing of these asset
sales is uncertain, refinancing risk is still a concern.

The developing outlook reflects the very different rating
scenarios for Klabin. If the company manages to sell assets and
pay off a substantial portion of its total debt, including part
of the debentures, the ratings could be raised into the 'B'
category. However, if timing of these potential asset
divestitures is not compatible with debt repayment schedule,
Klabin could be forced to renegotiate again the debenture
payment, leading to a downgrade.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Reginaldo Takara, Sao Paulo (55) 11-5501-8932


TELEMAR: Announces New R$180M Contract For Network Management
-------------------------------------------------------------
Tele Norte Leste Participa‡oes (NYSE: TNE) announced Wednesday
the closing of the largest network outsourcing agreement of the
banking sector in Brazil so far this year. The contract was
awarded to TNE's wireline subsidiary, Telemar Norte Leste, and is
for the monitoring and remote management of the national data
communications network of Banco Real.

The contract, in the amount of R$ 180 million, has a five-year
term, extendable for an equal period, and inaugurates Telemar's
nationwide operations in the data communication business, enabled
by the acquisition of Pegasus Telecom at the end of 2002.

The data network monitoring and the remote management for Banco
Real ABN AMRO - the fourth largest private bank in Brazil - will
be operated at Telemar's Services Management Center (SMC) located
in Sao Paulo. The control will be based on a connection between
the bank's telecom center, which centralizes all information from
its 2,928 points of service, and Telemar's SMC.

With the outsourcing of its data network management, the bank
should be able to reduce and more efficiently control its
telecommunication costs, benefiting from a dedicated management
structure, prepared to guarantee the level of service and
responsible for the periodic technological updating of the
network.

The full integration of Pegasus' network with Telemar's backbone
is the basis for the Company's growth in the data communication
business and the consolidation of Telemar as a main player in
servicing corporate customers nationwide.

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani (terziani@telemar.com.br)
          Tel: 55 21 3131 1208
          Fax: 55 21 3131 1155

          Carlos Lacerda (carlosl@telemar.com.br)
          Tel: 55 21 3131 1314
          Fax: 55 21 3131 1155

          GLOBAL CONSULTING GROUP
          Rick Huber (richard.huber@tfn.com)
          Mariana Crespo (mariana.crespo@tfn.com)
          Tel: 1 212 807 5026; Fax: 1 212 807 5025



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

EMCALI: Has Less Than A Month To Make Progress In Debt Talks
------------------------------------------------------------
Emcali, which provides water, power and telecoms services in the
Valle del Cauca department in Colombia's southwest, has until
April 15 to make concrete advances in debt renegotiation talks
with creditors, reports Business News Americas.

The Company will face liquidation if it can't resolve its
financial problems, including a cash flow deficit of an estimated
COP540 billion, the government has warned.

Earlier this month, public services regulator Superservicios was
forced to suspend Emcali's payments on outstanding debt.

The April 15 deadline was set Tuesday at a meeting of the
technical committee set up by President Alvaro Uribe to resolve
Emcali's financial problems. The meeting brought together
representatives from the government, the trade unions and public
services regulator Superservicios, which took control of Emcali
in April 2000.

At the meeting, workers' union Sintraemcali agreed to revise its
collective labor agreement, which currently costs Emcali COP400
billion pesos (US$135mn) a year, some 35% of revenues.



===================
C O S T A   R I C A
===================

ICE: Plans to Launch VoIP in 2005
---------------------------------
Costa Rica's state-run telecoms monopoly ICE plans to launch VoIP
services in 2005, reports Business News Americas. In fact, the
Company is currently planning to draft auction notices for the
supply of VoIP soft switches later this year.

However, according to ICE telecoms manager Alvaro Retana, the
VoIP launch would have to wait until the completion of ICE's
network backbone to prove broadband infrastructure upon which the
service could serve a mass market.

The IP backbone project is stalled at present as the comptroller
is evaluating an US$18.3-million bid by Israel's ECI Telecom  to
deploy some 85,000 DSL (digital subscriber line) Internet access
ports. ICE has already approved a US$25.2mn bid by Cisco Systems'
Central American partner GBM to deploy routers necessary for the
project, said the report, adding that a decision from the
comptroller is expected by April.

ICE has a monopoly on long distance and companies with IP
networks are not authorized to exchange traffic with other
networks except via ICE.

But analysts doubt whether Ice would be able to monitor
international VoIP traffic on the other IP networks or prevent
them from interconnecting internationally. An estimated 30 firms
have private IP networks in the country.



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


PEMEX: Record Low Production Spurs Exploration
----------------------------------------------
Petr¢leos Mexicanos Exploration and Production (PEP) increased
investments in exploration and production the more profitable
crude and gas, as the volume of production is at its lowest level
in 13 years. A Work Statistics Report from the Company indicates
that there was a 35 percent reduction in economically viable oil
reserves at the close of last year.

According to the Statistics report, viable hydrocarbon fell to
20.77 billion barrels from 30.84 billion barrels during the
course of the year. The Company attributed the reduction to the
loss of the viability of its Chicontepec reserve through
reclassification.

Business News Americas reports that the PEP has identified some
1,000 new reserves as a result of the Company' increased
exploration efforts. According to figures released by the
Company, the reserves hold a potential 20.40 billion barrels.

However, exploiting these reserves would require some MXP15
billion per year in investments.

NewsEdge quoted Pemex director Ra£l Mu¤oz Leos assuring the
country that hydrocarbon supply for the next 20 years is
relatively secure.


PEMEX: Reports Highs and Lows of January-February Output
--------------------------------------------------------
Mexico state oil company, Pemex, reports an increase in the
average daily production of hydrocarbons during the first two
months of 2003.

A report from Business News Americas indicated that the Company's
crude and natural gas liquids output was at 3.74 million barrels
daily, an increase of 3.17 percent from the average of the same
period in the previous year.

According to the report, the Company produced 3.75 million
barrels of liquid hydrocarbons in February alone, while the level
was at 3.74 million in January.

Crude production in the first two months also went up 4.05
percent to 3.33 million barrels per day from 416,000 barrels per
day during last year's first two months. Heavy crude production
went up 9.61 percent to 2.35 million barrels per day.

The report said that Pemex produced an average of 4.44 billion
cubic feet a day (bcf/d) of natural gas over the first two months
of the year, unchanged from the same period last year.

Natural gas production in February alone was 4.43 billion cubic
feet per day, a little less than 4.44 billion cubic feet per day
in February 2002 and 4.45billion cubic feet a day in January
2003.

On the down side, natural gas liquids production went down 3.16
percent to 416,000 barrels a day, while light crude production
fell 11.2 percent to 524,000 barrels per day. Superlight crude
production fell 2.26 percent to 454,000 barrels per day.

Overall, production of associated natural gas in the two months
was declined 0.9 percent to 3.12 billion cubic feet per day,
while production of non-associated natural gas was 1.33billion
cubic feet per day, 2.2 percent higher than a year ago, said the
report.


PEMEX: May Call For Minatitlan Upgrade Bids in April
----------------------------------------------------
Raulo Munoz, chief executive of Mexico's state oil company Pemex,
said the Company plans to call for bids for the upgrade of its
Minatitlan refinery in April.

Business News Americas reports that the invitation to bid would
be for the first of six contracts. Local reports say the last of
the contracts will be offered in the fourth quarter.

The upgrade, estimated to cost US$1.6 billion would increase the
refinery's capacity to 350,000 barrels per day from 186,000
barrels per day.

Mr. Munos added that the Company is upgrading a number of its
refineries other than the Minatitlan.

The government is also near to fixing the mechanisms under which
private capital could play a part in the US$2.5bn Fenix project,
Munoz said. Fenix aims to build two new petrochemical plants that
would allow the country to save at least US$4bn/year in
petrochemical imports, said the report.

Mr. Munoz added that the construction may last up to five years,
but a number of international petrochemical companies have
expressed interest in the project.



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

ANDE: To Present Fund Raising Proposals To Board
------------------------------------------------
Paraguay's state power company Ande was scheduled to present to
its board on Wednesday, proposals, which involved the advanced
sale of electric power and the postponement of a US$2-million
payment to suppliers until June. According to a Business News
Americas report, the Company expects to raise US$5 million from
the said sale.

The proposals are part of Ande's bid to try and raise US$7
million to pay off debts. Ande needs to raise as much cash as
possible by the end of this month to meet a US$13.8-million
payment to the Itaipu hydroelectric plant due on April 7.

From May, Itaipu bills will fall to just US$6 million/month, as
Ande uses up power from a credit generated during the
hydroelectric power plant's preliminary operations. Ande will
restart full payments by the end of this year when the credit
from Itaipu will run out.

Meanwhile, Ande is also facing a US$5.4 million payment to the
Inter-American Development bank this week, but said it will dig
into its own pockets to meet the payment.



===========
P A N A M A
===========

PAFCO: Agrees To Sell Assets For $21M
-------------------------------------
The Puerto Armuelles Fruit Company (PAFCO), an affiliate of U.S.
fruit giant Chiquita Brands, agreed to sell its assets to a group
of three cooperatives for US$21 million, reports EFE.

The three cooperatives are Johnny Palacios, Manufactura de Palma
Aceitera de Chiriqui (COOPEMAPACHI) and dockworkers Muelleros
Unidos, all of which previously provided contracted services to
PAFCO in the province of Chiriqui, which borders Costa Rica.

The agreement, according to PAFCO general manager Cameron
Forsythe, "basically encompasses the purchase of PAFCO assets and
a 10-year sales contract" granting Chiquita Brands exclusive
rights to purchase the bananas.

Under the agreement, PAFCO will make severance payments for an
undisclosed amount to some 3,000 company employees.

PAFCO has lost some US$90 million over the past six years.
Chiquita Brands has stopped underwriting PAFCO operations since
January.

CONTACT:  James B. Riley
          +1-513-784-6307
          jriley@chiquita.com

          William T. Sandstrom,
          513-784-6366
          bsandstrom@chiquita.com

Web site: http://www.chiquita.com/



=======
P E R U
=======

BACKUS: Sells $50M Worth of Bonds
---------------------------------
Peruvian brewer UCP Backus & Johnston SA sold US$50 million in
two- and three-year debt in the local market, says Bloomberg.

The sale, handled by Alberto Carrera, head of capital markets at
Citicorp Peru SA brokerage, is the Company's first in more than
two years.

Peru's biggest brewer sold US$25 million of its US$50 million
three-year bonds offer and PEN87 million ($25 million) in two-
year bonds. The latter will pay an annual interest rate of
6.375%, about half the interest rate in the Company's previous
two-year sol-denominated bond sale in January 2001.

According to the prospectus for the sale, Backus will use the
proceeds of the bond sale to finance investments, boost working
capital, refinance liabilities and meet financing needs.

CONTACT: Union de Cervecerias Peruanas Backus y Johnston SA
         Head Office
         No 594 Jiron Chiclayo
         Rimac
         Lima, Peru
         Tel  +51 1 311 3000
         Fax  +51 1 311 3059
         Web  http://www.backus.com.pe
         Contacts:
         Elias Bentin Peral - Chairman
         Atty. Victor Montori Alfaro - Vice Chairman
         Catalina Bentin Grande - Director



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

CANTV: Creates New Department In Order to Cut Costs
---------------------------------------------------
In a bid to cut costs, Venezuela's largest telco Cantv created a
corporate marketing department, reports Business News Americas.
The Company named Francisco Sananez as the unit's general
manager.

The department's goal is to cut the cost of market research
programs, set pricing policy, devise strategies related to
corporate branding and the development of special offers.

Cantv is 28.5% owned by Verizon Communications Inc., 6.9% by
Spain's Telefonica SA, 6.6% by the government, and 12% by
employees. The rest is traded.



               ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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