/raid1/www/Hosts/bankrupt/TCRLA_Public/030408.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

          Tuesday, April 8, 2003, Vol. 4, Issue 69

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Trinidad and Tobago Denies Direct Involvement in LIAT Aid
         

A R G E N T I N A

CENTERPOINT ENERGY: Sells Last Argentine Asset for ARS2.5 Million


B O L I V I A

COTEL: Board Spat With Detecon Prompts Regulator Intervention


B R A Z I L

BRAZILIAN BANKS: Govt Dangles Tax Break for States Selling Banks
CEMIG: To Spend BRL25 Mln This Year for Research and Development
EMBRATEL: Announces 2003-2004 Financing Program  
VESPER: Anatel To Decide Fate in Two Weeks


C H I L E

AHOLD: Santa Isabel Results Lack Crucial Data, Says Auditor
COCA-COLA EMBONOR: Fitch Ratings Affirms 'BBB-' Rating
TELEFONICA CTC: Plans US$230 Million Capex for 2003


C O L O M B I A

BANCO ALIADAS: Government Ready to Sell For Right Price


E C U A D O R

PETROECUADOR: Awards Ten 12,000b/d Contracts To Six Companies


J A M A I C A

AIR JAMAICA: Subsidiary Takes Over Most Flights to Nassau
JUTC: Union Seeks Labor and Social Security Ministry Intervention


M E X I C O

BEPENSA: Fitch Affirms 'BBB-' Credit Ratings
GRUPO TMM: Announces Extension of Exchange Offers


P A R A G U A Y

REFRESCOS: Losing Money Due To Informal Trade, Smuggling


T R I N I D A D   &   T O B A G O

BWIA: 2003 Business Model Didn't Mention Pay for Axed Workers
BWIA: Unions Meet With Chairman Duprey
BWIA: Airport Downgrade Causing Losses, Transport Minister Says
BWIA: Creditor Threatens To Seize Planes If Not Paid
CARONI: Agriculture Ministry Claims Most Workers Accepted VSEP



V E N E Z U E L A

PDVSA: Announces Oil And Gas Field Discovery

     -  -  -  -  -  -  -  -

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


LIAT: Trinidad and Tobago Denies Direct Involvement in LIAT Aid
---------------------------------------------------------------
Trinidad and Tobago's Prime Minister Patrick Manning clarified
rumors that the government aided Antiguan carrier LIAT, and did
not help its own national carrier, BWIA.

"The Trinidad and Tobago Government guaranteed CDB loans, and
took no direct involvement in the LIAT matter," he explained a
Cabinet decision to guarantee EC$12.5 million to Caribbean
countries wishing to borrow from the Caribbean Development Bank
(CDB).

A previous report from the Troubled Company Reporter - Latin
America cited T&T Trade and Industry Minister Ken Valley saying
the Government was not prepared to give LIAT money directly and
further commented that the matter is being well investigated by a
Government appointed Steering Committee, led by Ken Gordon.

"People are not in the airline industry to fly but to make
money," he said, defending a previous comment that the country
would manage without a national airline. Mr. Manning said it was
"straight economics."

"There is no need for a national airline," he reiterated.

However, Mr. Manning did not rule out the possibility of resuming
control of BWIA "if forced" but he quickly added that such
control would only be temporary, as he believed that there should
be private sector involvement.

CONTACT:  LIAT Corporate Headquarters
          V.C. Bird International Airport,
          P.O. Box 819,
          St. John's, Antigua West Indies
          Phone: 1 (268) 480-5600/1/2/3/4/5/6
          Fax: 1 (268) 480-5625
          Home Page: http://www.liatairline.com/
          Contacts:
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing

         

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

CENTERPOINT ENERGY: Sells Last Argentine Asset for ARS2.5 Million
-----------------------------------------------------------------
US company CenterPoint Energy sold its last remaining asset in
Argentina, Santiago del Estero province distributor Edese, after
selling its 100 percent stake in the 150MW Argener cogeneration
plant in February.

Edese was bought by a group of local investors led by Banco de
Santiago del Estero, reports Business News Americas, citing a
statement from CenterPoint.

Along with CenterPoint's 95 percent stake in Edese, the buyers
also inherited the latter's ARS8 million in debt due to US bank
BankBoston and Spanish bank BBVA.  The deal was reportedly worth
ARS2.5 million.  CenterPoint officials have not confirmed any
figures.

Edese serves about 160,000 customers in Santiago del Estero, a
rural province in north-central Argentina, said the report.


=============
B O L I V I A
=============


COTEL: Board Spat With Detecon Prompts Regulator Intervention
-------------------------------------------------------------
Bolivian telecoms regulator, Sittel, ruled that La Paz-based
telephony cooperative Cotel should be intervened, said Business
News Americas, citing local press reports.  The intervention was
ordered on the grounds that service quality has been put at risk
by a breakdown in relations between parties vying for control of
the company.

For the duration of the intervention, the Company's
administrative and oversight boards will be suspended. Former
Sittel chief Jose Javier Tapia will take charge of the company,
while businessman Alejandro Yaffar will supervise.

The intervention is bound to a 90-day limit, but Sittel chief
Rene Bustillo indicated that the intervention may not last that
long, if the electoral tribunal Mr. Tapia is assigned to set up
successfully completes the elections of the two suspended boards.

The report added that previous attempts at electing new boards
have been hampered by lawsuits, related to the Company's
conflicting bylaws.  In the meantime, Cotel may be subjected to
an audit to determine the competence of German consulting firm
Detecon as the Company's administrator.

Cotel's board has accused Detecon of incompetence, while Detecon
claims that Cotel's problems are caused by its previous
administrations.  Earlier this month, Cotel's oversight board
staged a rally demanding that Detecon administer Cotel from
offices outside the headquarters, a motion that Detecon promptly
rejected.

However, the board, with the cooperation of employees took the
headquarters by force and refused to let Detecon staff in. The
board also declared that it did not recognize the administration
contract awarded to Detecon in May 2001.

For the time being, all Detecon can do is wait for the outcome.
Mr. Bustillo told BNAmericas that the legal situation should be
resolved by Monday.

CONTACT:  COOPERATIVA DE TELEFONOS DE LA PAZ-COTEL
          Avenida Mariscal Santa Cruz 980
          La Paz
          Bolivia
          Phone: 591 2373432
          Fax: 591 2310331
          Home Page: Homepage: http://www.cotel-bo.net/
          Contact: Jurgen Kurz
          
          DETECON
          Germaniastra? 18 - 20
          D-12099 Berlin
          Phone: (+49-30) 7508-1100
          Fax: (+49-30) 7508-1444
          Home Page: http://www.detecon.com/
          Contact:
          Karen Litters
          Phone: (0049) (0)6196-903-131
          Fax: (0049) (0)6196-903-465
          E-Mail: info@detecon.com


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


BRAZILIAN BANKS: Govt Dangles Tax Break for States Selling Banks
----------------------------------------------------------------
The government of Brazil is working on a new privatization model
for federalized state banks, said Business News Americas. The
move comes after the banks' proposed privatization met strong
opposition from state governments, and members of the radical
right wing of ruling party PT.

Under the new plan, part of the proceeds of the sell-offs would
go to states in the form of tax waivers in order to gain the
support of state governors, said local broadsheet Estado de Sao
Paulo. The present plan stipulates that all the proceeds would go
to federal coffers, which the state governments disapproved.

The concerned banks are: Santa Catarina state bank BESC, Maranhao
state's BEM, Ceara's BEC and Piaui's BEP, which were federalized
in 1996, and put under the direction of the central bank.

BNAmericas mentioned that BESC and BEP are particularly
attractive because of their exclusive rights to handle public
accounts of their respective states.

The two banks would have been sold at the end of last year,
without the state government officials' move for an injunction
blocking the sale.


CEMIG: To Spend BRL25 Mln This Year for Research and Development
----------------------------------------------------------------
Minas Gerais state integrated power utility Cemig, plans to
invest BRL25 million (US$7.75 million) on research and
development this year.

Business News Americas said that the company already has 50
projects in progress, while a number of other projects are under
the consideration of power regulator, Aneel.

Projects aim for more efficient engineering, increased power
security, cost reduction, minimized environmental impact and
alternative power sources, said the report.

Last week, the Company decided to postpone its plans to roll over
foreign currency debts due this year, citing the war in Iraq and
the continuing turmoil in the financial markets.

CONTACT:  CEMIG
          Luiz Fernando Rolla, Investor Relations Officer
          Phone: +55-31-3299-3930
          Fax: +55-31-3299-3933
          E-mail: lrolla@cemig.com.br

          The Anne McBride Company
          Vicky Osorio
          Phone: +1-212-983-1702
          Fax: +1-212-983-1736,
          E-mail: vicky@annemcbride.com


EMBRATEL: Announces 2003-2004 Financing Program  
-----------------------------------------------
Embratel Participacoes S.A. (NYSE: EMT)(BOVESPA: EBTP3, EBTP4)
(Embratel Participacoes), the Company that holds 98.8 percent of
Empresa Brasileira de Telecomunicacoes S.A. (Embratel), announced
Friday the transaction features of Embratel's 2003 and first half
of 2004 financing program.

On March 17, 2003, Embratel closed its financing program. The
purpose of this financing program was to: (1) reduce Embratel's
overall debt; (2) eliminate refinancing risk in 2003; and (3)
reduce financing requirements in 2004. Embratel has achieved
these three objectives.

The amount of debt negotiated under the financing agreement is
US$ 861 million (R$ 3,044 million at December 31, 2002 parity)
corresponding to principal maturing in 2003 and the first half of
2004. This transaction has been the largest concluded in Brazil
during current tight market conditions.

"It demonstrates Embratel's financial strength and commitment to
being a leader in the telecommunications market," said Jorge
Rodriguez, President of Embratel.

Approximately 25 financial institutions such as US, European,
Japanese and Brazilian banks as well as Export Credit Agencies
supported Embratel's credit and initiative. "Embratel's
anticipation, transparency and equal treatment of all lenders
were much appreciated by all institutions involved in the
transaction," said Norbert Glatt, Chief Financial Officer of
Embratel. "The company's proactive stance stood out in the
current environment."

The extended maturities will ensure that Embratel will continue
to invest in quality services and networks to serve corporate,
government and residential customers. The financing program
essentially eliminates Embratel's refinancing risk in 2003 and
reduces its financing requirements in 2004. Embratel has also
used this financing program to reduce its debt by repaying
approximately US$ 152 million (R$ 536 million). Embratel has
retained the ability to make early payments from excess cash flow
or new debt as market conditions improve. The conclusion of this
financing program improves Embratel's overall credit standing and
puts it in a stronger financial position.   Embratel has also
maintained the operational flexibility it needs to implement its
business plan.

Features of the financing agreement entail:

The debt that was included in the financing program was
categorized as either bullet or amortizing. Each lender within
these two categories of debt was treated equally and offered the
following terms and conditions.

Bullet loans -- Principal of US$ 758 million (R$ 2,678 million)
To reduce its debt and improve its capital structure, Embratel
has refinanced its bullet debt with amortizing loans. The
repayment schedule for each bullet loan has been structured as
follows:

    *  20 percent will be repaid by the original maturity date of
the applicable bullet loan.

    *  30 percent will be repaid through 7 equal quarterly
payments starting the first quarter after the original maturity
date of the applicable bullet loan.

    *  The remaining 50 percent will be a balloon payment due two
years after the original maturity date of the applicable bullet
loan.

The 20 percent repayment is made to each lender by its original
maturity date and is therefore spread over 2003 and 2004. The
repayment schedules have been structured to optimize Embratel's
cash management and to reduce refinancing risk now and in the
future.

Current interest rates will remain effective until the original
maturity date of each loan and the spread will be increased to 4
percent for the amounts being extended.

Amortizing loans -- Principal of US$ 103 million (R$ 365 million)
For the amortizing loans, all repayments due between January 2003
and June 30, 2004 will be extended. The amounts being extended
will be repaid equally over the remaining payments due after June
30, 2004. The spread will be increased to 4 percent on the
amounts being extended. The spread on the amounts not being
extended will remain at the current rate.

Currency Conversion
Creditors have been given the option of converting the original
currency of the debt into Reais at the original maturity date. If
creditors convert the debt into reais, it will be converted over
time and will reduce Embratel's exposure to foreign currency
fluctuation.

Embratel's Debt Profile

R$ million           31/12/2002   Average Cost*   Maturity (yrs.)

Total Debt              4,892
Debt not
subject to 2003
-- 1st half 2004
financing agreement     1,848
Hedged debt and
debt in reais             245     98.5%CDI p.a.         1.4
Unhedged debt           1,603    US + 8.70 p.a.         7.8
Debt subject
to 2003
-- 1st half 2004
financing agreement     3,044

Hedged debt and
debt in reais          1,921     98.5%CDI p.a.         1.6
Unhedged debt          1,123   US + 7.10% p.a.         7.8

* On December 31, 2002


Debt subject to 2003 -- 1st half 2004 financing agreement

Quarters      Principal      Hedged Portion       Percentage
            Maturity per     of Principal    Actually Rolled Over
              Quarter

1Q03             22%                  95%               82%
2Q03             12%                  79%               84%
3Q03              9%                  88%               84%
4Q03             33%                  41%               82%
1Q04             13%                  26%               83%
2Q04             10%                  74%               85%
Total           100%                  63%               82%
Total in
R$ million    3,044                1,921             2,508

US$ million
equivalent at
December 31,
2002 parity     861                                    710

Information Concerning ADRs

Embratel intends to implement a ratio change of its American
Depositary Receipts (ADRs) solely to comply with the minimum
share price (US$ 1.00) requirement for maintaining its ADR
listing on the New York Stock Exchange. The Company is currently
evaluating the actual ratio and will make an announcement when
such a decision is made. The Company expects that the ADR ratio
change will take approximately 6 weeks subject to any local
securities commission (Comissao de Valores Mobiliarios (CVM))
approval.

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is uniquely
positioned to be the country's only true national local service
provider for the corporate market. Service offerings: include
advanced voice, high-speed data communication services, Internet,
satellite data communications, corporate networks and local voice
services for corporate clients. Embratel is uniquely positioned
to be the all-distance telecommunications network of South
America. The Company's network is has countrywide coverage with
28,868 km of fiber cables comprising 1,068,657 km of optic
fibers.

Note: Except for the historical information contained herein,
this news release may be deemed to include forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that involve risk and
uncertainty, including financial, regulatory environment and
trend projections. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. The important
factors that could cause actual results to differ materially from
those in the forward-looking statements herein include, without
limitation, the Company's degree of financial leverage, risks
associated with debt service requirements and interest rate
fluctuations, risks associated with any possible acquisitions and
the integration thereof, risks of international business,
including currency risk, dependence on availability of
interconnection facilities, regulation risks, contingent
liabilities, collection risks, and the impact of competitive
services and pricing, as well as other risks referred in the
Company's filings with the CVM and SEC. The Company does not
undertake any obligation to release publicly any revisions to its
forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.

CONTACT:  Silvia M.R. Pereira
          Investor Relations
          Phone: (55 21) 2121-9662
          Fax: (55 21) 2121-6388
          Email: silvia.pereira@ embratel.com.br
               or invest@embratel.com.br


VESPER: Anatel To Decide Fate in Two Weeks
------------------------------------------
The Brazilian telecoms regulator will decide in mid-April whether
to allow local competitive exchange carrier Vesper to use its PCS
licenses in the 1900MHz band, local news agency Agencia Estado.

The ruling will also affect local fixed line incumbent Brasil
Telecom, which also has a 1900MHz network that it plans to use in
its mobile service launch in the second half of this year.

Earlier, Vesper threatened to discontinue its GSM services if the
regulator bans it from using the 1900MHz band. The Company
confirmed analysts' predictions that its business model will
collapse if it does not use the band.

Last week, Business News Americas quoted Anatel chief Luiz
Schymura reiterating the regulator's stand on Vesper's case.
Communications Minister Miro Teixeira said the regulator was
partly to blame for Vesper's problems.

The conflict reportedly started when Anatel allowed the companies
with 1800MHz licenses to use the 1900MHz band for "secondary"
operations. Apparently, Vesper mistook it as a privilege to offer
mobile services over its existing WLL CDMA network.

CONTACT:  Qualcomm Inc
          5775 Morehouse Dr.
          San Diego, CA 92121-1714
          Phone: 858-587-1121
          Fax: 858-658-2100
          Home Page: http://www.qualcomm.com
          Contact:
          Dr. Irwin M. Jacobs, Chairman & Chief Executive


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


AHOLD: Santa Isabel Results Lack Crucial Data, Says Auditor
-----------------------------------------------------------
Auditor Deloitte & Touche was unable to complete its audit on the
Chilean unit of embattled Dutch retailer Royal Ahold, as the 2002
earnings report lacked vital data, says Reuters.

In a report filed to the Superintendency of Stocks and
Securities, the auditor said, "To date we have not received from
the administration of Santa Isabel or its subsidiaries some
earnings balance details for the year to December 31 2002."

The auditor said it cannot express any opinion on Santa Isabel's
balance sheet as the missing information could potentially alter
the numbers. However, it is unclear whether the missing probe
could alter the bottom line.

In the meantime, Santa Isabel's shares were suspended on the
Santiago bourse after the company submitted late its 2002
results. The report said that unaudited figures reveal that the
Company had more than doubled its 2001 loss to US$47.4 million in
2002. However, the Company did not offer explanations on the
delay of the results nor its losses' sudden climb.

Ahold, besieged by an accounting scandal in its US Foodservice
division, is in negotiations with Chile's Cencosud for the sale
of Santa Isabel.  The accounting scandal prompted the Company to
conduct audits on its units including the Santa Isabel
supermarket chain in Chile, and other units in Peru and Paraguay.

CONTACT:  Royal Ahold
          Investor Relations:
          Huibert Wurfbain, 011-31-75-659-5813
          or
          Media Relations:
          Annemiek Louwers, 011-31-75-659-5720
          or
          Taylor Rafferty New York
          Media Relations:
          Ethan Sack, 212/889-4350
          or
          Taylor Rafferty London
          Media Relations:
          Matthew Nardella, + 44 20 7936 0400


COCA-COLA EMBONOR: Fitch Ratings Affirms 'BBB-' Rating
------------------------------------------------------
Fitch Ratings affirms its 'BBB-' foreign and local currency
credit ratings of Coca-Cola Embonor (Embonor). The Rating Outlook
for Embonor remains Stable.

Embonor accounted for approximately 35% of The Coca-Cola
Company's (Coca-Cola) sales in Chile and approximately 95% of its
sales in Bolivia and Peru during 2002. The investment-grade
rating of Embonor reflects the strategic importance of Embonor to
Coca-Cola. This support was apparent during 1998 when Coca-Cola
assisted the company, despite being a small regional bottler, in
its purchase of the Peruvian and Chilean bottling operations of
Inchcape PLC (Inchcape). Coca-Cola's support of Embonor was
backed with financial assistance, as it spent approximately $284
million between 1998 and 1999 to increase its stake in the
company from 8% to 44.4%.

Embonor's investment grade credit ratings also reflect the
company's relatively strong business position in its Chilean and
Bolivian territories, as well as the potential for growth of its
business in Peru. The company ended the year with market shares
of 57.1%, 50.1%, and 37.0%, respectively, in these markets.

Of the company's bottling territories, Peru is of particular
importance for The Coca-Cola Company due to the low level of soft
drink consumption. During 2002, Peruvians consumed approximately
71 Coca-Cola soft drinks per person, one of the lowest per capita
consumption figures in Latin America. In an effort to build upon
its leading position in the soft drink industry in Peru and to
support Embonor, during 1999, Coca-Cola formed a strategic
partnership with the second largest soft drink company in Peru,
Corporacion Inca Kola (Inca Kola). The agreement between Coca-
Cola and Inca Kola requires the partnership to distribute and
market Inca Kola and its affiliated brands in Peru, and calls for
The Coca-Cola Company to distribute and market these brands
globally. In conjunction with this agreement, Coca-Cola took a
20% stake in Corporacion Jose R. Lindley S.A., Inca Kola's
largest bottler, and a 50% stake in Inca Kola's brands.

During 2002, Embonor's consolidated sales volumes increased by
1.2% to 177 million unit cases (one unit case equals 24 eight
ounce servings or 5.7 liters). The most important component of
the company's beverage portfolio is its Coca-Cola products. These
products accounted for 149 million unit cases of sales, growing
by 0.6% from the prior year. Despite the growth in Embonor's
volumes, due to lower prices, however, its consolidated sales
declined to $332 million in 2002 from $353 million in 2001.
Operating income plus depreciation and amortization (EBITDA) also
declined to $63 million in 2002 from $72 million in 2001.

The decrease in Embonor's profitability was partially a result of
the increased presence of discount brands, commonly referred to
as b-brands, and private label brands in all three countries in
which the company operates. These brands compete almost solely
upon price. As a result, pricing pressure created by these
inexpensive products led to a decline in the average local
currency prices for Embonor's beverages during 2002. This problem
was magnified when looking at the company's results in dollars
because of the sharp devaluation of the Chilean peso, Peruvian
Sol and Bolivian boliviano versus the U.S. dollar during 2002.

Embonor ended 2002 with $328 million of total debt and $36
million of cash and marketable securities. The company's interest
coverage ratio, as measured by EBITDA-to-net interest expense,
was 3.3 times (x) and its leverage ratio, as calculated by total
debt-to-EBITDA, was 5.5x. While these credit protection measures
remain weak for the 'BBB-' rating category, the Rating Outlook
continues to be Stable due to Coca-Cola's significant stake in
the company and its history of directly and indirectly supporting
its most strategic bottlers.

In 2003, approximately $49 million of debt matures. During
December 2002, the company registered with the Chilean securities
commission for two potential peso denominated bonds that would
total Unidades de Fomento (UF) 5 million ($115 million). If it
decides to go forward with these bonds, it would use the proceeds
to refinance its short-term debt plus pre-pay higher cost debt
that remains outstanding. Depending upon the movement of exchange
rates, Embonor should be able to generate between $60 million and
$65 million of EBITDA during 2003. With capital expenditures
expected to be approximately $20 million, net interest expense
projected to be $20 million and taxes and dividends estimated to
be zero during 2003, Embonor should generate about $20 million to
$25 million that it can use for debt reduction.


TELEFONICA CTC: Plans US$230 Million Capex for 2003
---------------------------------------------------
Telefonica CTC Chile plans to invest US$230 million this year,
said Business News Americas on Friday, adding that about US$100
million will be invested in the Company's GSM mobile network.

According to the report, the national GSM network will be
launched soon, a move the Company expects to increase its client
capacity.  In addition, CTC plans to invest US$50 million in
broadband services and US$30-40 million in data transmission
services, said the Company's chief executive Claudio Munoz at the
annual shareholders meeting.

CTC acquired its PCS spectrum last July for US$12.8mn and its
buildout plan calls for an investment of US$150mn during 2002-
2004, said the report.

Mr. Munoz added that the Company plans to reduce debt by US$100-
150 million by the end of this year. The company closed 2002 with
a US$1.55 billion debt. About 80 percent of the said figure is
long-term. Excess cash flow will be channeled to debt reduction,
said the officer.

Excess cash flow should eventually be able to reduce the debt to
US$1 billion, which would give a debt/equity ratio of less than
1, as opposed to today's figure of 1.09, said Mr. Munoz.

The report indicated that 2003 capex will also include about US$8
-10 million on basic maintenance of the local network, and rather
than increase infrastructure CTC will activate idle lines, which
make up about 9 percent of lines installed.

In the meantime, the Company is studying the viability of power
line communications (PLC) technology to determine the degree of
involvement it might decide on in the future.

CTC has restructured itself to achieve an efficiency ratio of
1,058 lines per employee.

CONTACT:  TELEFONICA CTC
          Avenida Providencia 111, Piso 2
          Santiago, Chile
          Phone: +56-2-691-2020
          Fax: +56-2-691-2392
          Home Page: 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
===============


BANCO ALIADAS: Government Ready to Sell For Right Price
-------------------------------------------------------
The government of Colombia wants to sell state-run bank, Banco
Aliadas, as soon as a good offer is made, Business News Americas
quoted Wilson Giraldo, a government official involved with the
sale of another bank.

Local daily La Republica reports that the government plans to
push through with the bank's sale, despite failing to offload it
last year. The report indicated that last year's attempts to sell
the bank were unsuccessful as the bids it received were below the
minimum sale price.

An outside consultancy firm said that the bank is worth some
CLP55 billion (US$18.6 million) as of July 2002.  Last year's
bidders included local banks Superior, Davivienda and Conavi, as
well as consumer finance company Giros & Finanzas.

Mr. Giraldo stressed, "Whoever is interested in taking Banco
Aliadas has to pay CLP55 billion in cash so the sale can be
closed."

Recently, the Banco Aliadas' shareholders approved a CLP4 billion
dividend, which will go to the institution's primary creditor,
deposit guarantee agency Fogafin, said the report.

Fogafin founded Banco Aliadas from the assets of liquidated
finance companies Aliadas and Financiera FES, and defunct bank
Interbanco.


=============
E C U A D O R
=============


PETROECUADOR: Awards Ten 12,000b/d Contracts To Six Companies
-------------------------------------------------------------
Ecuador state oil company, Petroecuador agreed to sell a total of
120,000 barrels of crude oil daily, Business News Americas
reported on Friday, citing an unnamed source privy to the matter.

Each contract is provides for the sake of 12,000 barrels of crude
oil per day, and will expire in six months, instead of the
previous 1-year term.

The report said that the Company decided to reduce the contract
period to six months due to international crude price volatility,
and the expected start of operations of the OCP heavy crude
pipeline by September.

A total of 10 contracts were awarded to six companies, four of
whom received two contracts each.

Germany's RWE Trading, US Valero Energy Corporation, Shell USA,
and Korean company LG international each won two contracts, while
Anglo-Dutch Shell Corporation and the PetroJam refining arm of
Jamaica's state oil company PCJ have single contracts.

The new contracts will replace existing contracts that expire at
the end of the month, said the report.

Earlier, Petroecuador received permission from the country's
economy ministry to keep the estimated US$40 billion in expected
sales this month to allow it to meet its financial obligations.

Last week, at least 10 oil service companies threatened to halt
production if Petroecuador's production arm, Petroproduccion
failed to pay its debts.


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


AIR JAMAICA: Subsidiary Takes Over Most Flights to Nassau
---------------------------------------------------------
Cash-strapped regional carrier Air Jamaica will cut its flights
to Nassau to Sundays only. A report from the Jamaica Observer on
Friday said that the airline's subsidiary Air Jamaica Express
(the "Express") would take over its Nassau flights, at a
frequency of 19 per week.

While, Air Jamaica is cutting down 52 flights to the United
States, Air Jamaica Express will increase its flight frequency to
Havana, Cuba, aside from resuming services to Nassau. The Express
will have 19 flights between Jamaica and Havana weekly.

The Express, currently trying to increase its international load,
also operates 15 flights per week between Jamaica and Grand
Cayman with four flights originating from Montego Bay on
Tuesdays, Wednesdays, Thursdays and Saturdays. Daily flights
Kingston - Tinson Pen, Montego Bay Negril, Ocho Rios and Port
Antonio will also be maintained.

The airline says that its Dash 8-100 series aircraft, which can
carry 37 passengers, will service these routes.

Air Jamaica Express president and chief executive Timothy Coon
said that the company is hoping for another successful year.

Meanwhile, Air Jamaica will offer services to Providenciales,
Turks & Caicos four times per week, said the report.

CONTACT: Air Jamaica
         4 St. Lucia Avenue
         Kingston 5,
         Jamaica
         Phone: 876/922-3460
         Fax: 929-5643
         Email: webinfo@airjamaica.com
         Contact:
         Gordon Stewart, Chairman
         Allen Chastanet, Vice President for Marketing and Sales


JUTC: Union Seeks Labor and Social Security Ministry Intervention
-----------------------------------------------------------------
The Union of Clerical Administrative and Supervisory Employees
(UCASE) sent a letter to Jamaica's Ministry of Labor and Social
Security saying the Jamaica Urban Transit Company (JUTC) violated
that Labor Relations Code of 1976 in its recent redundancy
exercise.

The union sought the intervention of the ministry on its dispute
with the management of the JUTC over redundancies.

UCASE Danny Roberts, said the Jamaica Gleaner on Saturday, also
expressed disappointment that two planned meetings between the
union and JUTC's management never materialized.

JUTC information manager Errol Lee criticized the union's stand,
describing it as "irrational".

He said dismissed the redundancy concern, said the report. In
fact, said Mr. Lee, more redundancies were coming, but no letter
had been handed out.

He explained that the redundancies were part of the restructuring
process, but he assured employees that in the event where new
positions are being advertised, the Company will seek internal
expertise whenever possible.


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


BEPENSA: Fitch Affirms 'BBB-' Credit Ratings
--------------------------------------------
Fitch Ratings has affirmed the 'BBB-' foreign and local currency
rating of Bepensa S.A. de C.V. (Bepensa). The Rating Outlook
remains Stable. Bepensa is The Coca-Cola Company's (Coca-Cola)
bottler in the Mexican states of Yucatan, Campeche and Quintana
Roo - collectively referred to as the Yucatan Pensinsula.
Bepensa's investment grade credit ratings are supported by its
excellent business position and strong financial profile.

Bepensa ended 2002 with an estimated soft drink market share of
approximately 80 percent within its bottling territories. The
company's dominance is a result of its elaborate distribution
systems, its excellent point-of-sale execution skills, and the
strong demand for Coca-Cola products in the region, which is a
result of the efforts of the company during the past 55 years.
Bepensa compliments its soft drink business with a rapidly
growing water business. Since 1993, the company's sales of
purified water have grown from 13 million unit cases (one unit
case equals 24 eight ounce servings) to 191 million unit cases.

The company's solid business position is matched with an equally
strong financial position. During 2002, Bepensa generated
approximately $108 million of EBITDA from the sale of 191 million
unit cases of water and 110 million unit cases of soft drinks.
With $56 million of debt, of which $1 million comes due in 2003,
and $50 million of cash and marketable securities, liquidity is
not a concern.

Bepensa's interest coverage, as measured by EBITDA-to-interest
expense, was 19.1 times (x) during 2002 and its leverage ratio,
as measured by total debt-to-EBITDA, was 0.6x. These credit-
protection measures are strong for the rating category.

Like other bottlers in Mexico, Bepensa is susceptible to swings
in the Mexican peso to U.S. dollar exchange rate, given the
company's peso-denominated revenues and dollar-denominated debt
obligations. In addition, unlike some of the largest bottlers in
the region, Bepensa only operates in one country. This makes the
company vulnerable to political or macroeconomic turbulence in
Mexico.

Fitch expects Bepensa to generate about $110 million of EBITDA in
2003. With capital expenditures expected to be approximately $65
million, taxes expected to be $30 million and interest expense
expected to be approximately $3 million; the company will have
approximately $10 million of free cash flow that it can use to
reduce debt.

CONTACT:  Fitch Ratings
          Joe Bormann, CFA, 312/368-3349
          Giovanna Caccialanza, CFA, 212/908-0898
          Roberto Guerra Guajardo, 011-52-818-335-7239
          James Jockle, 212/908-0547 (Media Relations)


GRUPO TMM: Announces Extension of Exchange Offers
-------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A) announced on Friday
that it has extended the expiration date of its previously
announced exchange offers and consent solicitations for all of
its outstanding 9 1/2 percent Senior Notes due 2003 and its 10
1/4 percent Senior Notes due 2006 until 5:00 p.m., New York City
time, on April 17, 2003. As of 5:00 p.m., New York City time, on
April 3, 2003, approximately 34.65 percent of the outstanding
2003 notes, or $61,289,000 principal amount, had been tendered
and not withdrawn, and 87.11 percent of the outstanding 2006
notes, or $174,216,000 principal amount, representing a majority
of the 2006 notes, had been tendered and not withdrawn.

In conjunction with this extension of the exchange offers, Grupo
TMM is providing withdrawal rights to all holders of 2003 notes
and 2006 notes, including those whose notes have previously been
tendered. Withdrawal rights will expire at 5:00 p.m., New York
City time, on the Expiration Date. Any questions as to withdrawal
of notes may be directed to the Information Agent at the numbers
below. In addition, Grupo TMM has filed today with the Securities
and Exchange Commission a Prospectus Supplement, which includes
additional disclosure about the company.

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

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

The exchange offers and consent solicitations are made solely by
the prospectus dated March 5, 2003, as amended by the Prospectus
Supplement dated April 4, 2003. Copies of the prospectus and
transmittal materials can be obtained from Mellon Investor
Services LLC, the information agent for the exchange offers and
consent solicitations, at the following address:

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

This announcement is neither an offer to purchase nor a
solicitation of an offer to sell Grupo TMM notes. The exchange
offers and consent solicitations are not being made to, nor will
tenders be accepted from, or on behalf of, holders of existing
Notes in any jurisdiction in which the making of the exchange
offers and consent solicitations or the acceptance thereof would
not be in compliance with the laws of such jurisdiction. In any
jurisdiction where securities, blue sky laws or other laws
require the exchange offers and consent solicitations to be made
by a licensed broker or dealer, the exchange offers and consent
solicitations will be deemed to be made on behalf of Grupo TMM by
the dealer manager or one or more registered brokers or dealers
licensed under the laws of such jurisdiction.


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


REFRESCOS: Losing Money Due To Informal Trade, Smuggling
--------------------------------------------------------
Coca Cola's Paraguayan bottler, Refrescos, is facing problems
with the informal trade in the beverages industry, according to a
report from NewsEdge.

The Company has reportedly invested US$150 million, but is losing
money because of informal companies and smuggling.  

Refrescos has closed two other bottling units in the recent
years, and cut production to 33 percent.

Based at Barcequillo, San Lorenzo, Refrescos is the 2nd largest
taxpayer company in Paraguay registering US$4 million paid to the
tax services in 2002, plus other US$1mil in social taxes, said
the report.


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


BWIA: 2003 Business Model Didn't Mention Pay for Axed Workers
-------------------------------------------------------------
BWIA's 2003 New Business Model did not mention a figure for VSEP
payments, according to a report from the Trinidad Guardian on
Friday. However, it did mention the need for a staff reduction.

The plan mentioned that "BWIA's labor contracts contain
attractive severance payments and provisions and these will be
honored." The plan was presented on January 28, the same day 617
employees were sent home.

Last year, BWIA spokesman Clint Williams said that the airline
allocated TT$53 million in its 2002 budget of the 2003 VSEP
exercise. On Tuesday, the Company offered to pay TT$1.5 million
as partial payment of the dismissed employees' severance
benefits.

BWIA's offer came after the disgruntled employees staged a
protest last week demanding payment of the severance pay. Unions
representing the workers' rejected the offer, which represents
2.8 percent of what the Company owes its workers.

Mr. Williams said he understood why some people would question
the non-receipt of severance benefits by the retrenched
employees. He explained that "you budget it as part of your
profit and loss - budget does not mean you have the cash."

Questions on BWIA's nonpayment are fueled by the fact that the
Company obtained US$13 million in financial assistance from the
government last year.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)


BWIA: Unions Meet With Chairman Duprey
--------------------------------------
The Superintendents Association, the Aviation Communication and
Allied Workers Trade Union (ACAWU), and the Communication and
Transport Trade Union planned to meet with BWIA chairman Lawrence
Duprey last Friday to discuss the matter of the retrenched
employees' severance pay.

Christopher Abraham, president of ACAWU, is confident that Mr.
Duprey would not refuse to the meeting. The Trinidad Guardian
quoted Mr. Abraham saying that Mr. Duprey, as chairman of the
airline, had to explain why severance was not being paid.

Last week, the airline offered to give workers two weeks' worth
of pay, saying that it is encountering cash flow problems. Union
representatives said the offer is unacceptable, if the amount
would be deducted from their severance pay.

"There is no way that interim payment will be part of our
severance. If they want to continue paying us our monthly salary
we will accept it," Theo Oliver, president of the SA, remarked on
BWIA's payment offer to the 617 workers sent home last January.

The report indicated that ACAWU met with Finance Minister Ken
Valley on Wednesday. Mr. Valley reportedly told the union that
the severance payment was the responsibility of BWIA's
management.

In the meantime, Mr. Abraham reiterated the union's commitment to
work with the government and ensure BWIA's viability and
survival.


BWIA: Airport Downgrade Causing Losses, Transport Minister Says
---------------------------------------------------------------
Trinidad and Tobago Transport Minister Franklin Khan said on
Friday BWIA was losing almost $600 million in "potential revenue"
monthly, because of the recent downgrade on the ratings of Piarco
International Airport.

The airport was downgraded to category 2 status, an article in
the Saturday edition of the Trinidad Express indicated.

"BWIA, because we are category 2, cannot expand its route network
into the United States, it cannot even enter into code-sharing
arrangements with the American carrier," said Mr. Khan.

The report cited Mr. Khan saying it had become imperative that
the civil aviation legislation be modernized to allow for this
country to be proudly represented on the world map into category
1 status.

Recent reports confirm that BWIA is having cash flow problems,
which are exacerbated by the effects of the war in the Middle
East. In fact, the airline is under fire for failing to supply
the severance pay of some 617 workers it sent home last January.


BWIA: Creditor Threatens To Seize Planes If Not Paid
----------------------------------------------------
Financially troubled carrier BWIA received an ultimatum from the
International Lease Finance Corporation: pay the US$3 million
worth of outstanding lease payments or face aircraft seizure.

The Sunday edition of the Trinidad Express reports that BWIA has
until Tuesday to pay the debt. The airline has asked for
financial aid from the government, but Prime Minister Patrick
Manning has reportedly declined to help.

BWIA, which is losing about US$100,000 a day, is said to be about
six weeks behind its monthly payment to ILFC on all six of its
Boeing 737-800 ILFC-leased airplanes. It is also behind on
payments on another ILFC-leased aircraft, the Airbus 340, which
currently flies the London route, said the report.


CARONI: Agriculture Ministry Claims Most Workers Accepted VSEP
--------------------------------------------------------------
Trinidad and Tobago Agriculture Minister John Rahael said on
Thursday that almost all monthly-paid and more than half of the
daily-rated employees of State-owned Caroni (1975) Limited have
accepted Government's Voluntary Separation of Employment Plan
(VSEP).

The Trinidad Express quoted Mr. Rahael speaking at a post-Cabinet
news conference at Whitehall: "As of this morning of the monthly
staff comprising 1,088 workers, approximately 1,000 workers have
accepted the VSEP offer."

He added that the remaining 88 workers are expected to "bring in
their package at the end of the day."

However, VSEP payments to daily-paid workers will have to be put
on hold after the All Trinidad Sugar and General Workers Trade
Union won an injunction preventing the Company from treating
workers who accepted the VSEP as if they were officially
terminated.

The injunction was issued on the grounds that the Company failed
to negotiate the VSEP with the unions representing its workers.
For the meantime, an injunction for the Industrial Court, which
could overturn the present one, is expected to come next month.

Mr. Rahael said he was "saddened by the fact that the union had
taken that position (because) the majority of the workers want to
accept the VSEP."

Last week, workers protested at the Company's Ste Madeleine
factory demanding their VSEP payments. But the injunction
prevents Caroni from carrying out VSEP's procedures.

Mr. Rahael also commented that he had recently learned that the
Company lacks funds to pay its workers, and that he was not aware
of any request from the Company for money to pay worker's
salaries last month.

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

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


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


PDVSA: Announces Oil And Gas Field Discovery
--------------------------------------------
Venezuela state oil company, Petroleos de Venezuela, S.A.
(PdVSA), announced the discovery of an oil and gas field in the
northeastern part of the country. The Company had been exploring
the area since December of 2002.

EFE News reported that the field potentially has 460 million
barrels of light crude oil and 1.6 trillion cubic feet of
associated gas reserves.

The discovery in the Chaguaramal region boosted Venezuela's
reserves figures. Venezuela's proven crude reserves total some 80
billion barrels, the largest amount in the Western Hemisphere.
Its gas reserves total approximately 150 trillion cubic feet,
said the report.

In a statement, the Company said that first evidence of the
reserves appeared at a depth of 4,756 meters (15,593 feet) "in
sediments deposited 40 million years ago during the Eocene
period."

The new discovery provided a respite for the Company, which
suffered high losses during a recently concluded two-month strike
aimed at deposing President Hugo Chavez. The strike almost
totally crippled Venezuela's oil industry and resulted in the
termination of at least 18,000 PdVSA workers.



               ***********


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
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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