/raid1/www/Hosts/bankrupt/TCRLA_Public/030514.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, May 14, 2003, Vol. 4, Issue 94

                           Headlines

A R G E N T I N A

ACINDAR: Reports Black for the 1Q03
AMERICAN CPU: Main Creditors Take Majority Control
DISCO: Informs Bourse It'll Miss Deadline For Earnings Filing
LAPA: Industry Minister Sues Directors
MOVICOM: S&P Lowers Currency Ratings to `D' On Missed Payment

MUSIMUNDO: Sale To Yenny Encounters Difficulties
PEREZ COMPANC: Implements New Accounting Standards In Argentina
PECOM ENERGIA: Fitch Urges Alternative Sources of Financing
PHILCO: Closing Factory
SANCOR: Defaults on Debt Payments

SOUTHERN WINDS: Announces Need To Restructure As Losses Loom
TELECOM ARGENTINA: Reports Profits in the 1Q03
TGS: Reports Positive Results Due To New Tax Policies

* Argentina Seeks IMF Approval For New Economic Targets
* Argentina Pays World Bank Debt, Anticipates New Loan Approval
* Federal Court Dismisses Class Action Suit Aimed at Argentina


B E R M U D A

TRENWICK GROUP: To Seek Alternative Capital For Lloyd's Ops
TYCO INTERNATIONAL: Schatz & Nobel Represents Employees
TYCO INTERNATIONAL: Chelsea Unit Losing Edge in Legal Battle


B O L I V I A

ENRON: Board Ditches Plan To Sell LatAm Assets


C H I L E

ENERSIS: Reaches Debt Agreement With Creditor Banks
INVERLINK: Bidders Names To Be Revealed May 16


E C U A D O R

PETROECUADOR: Proposes Alliance Contract, Decides in June


J A M A I C A

KAISER ALUMINUM: Mulls Asset Disposal


M E X I C O

AHMSA: Workers Accept 5.3% Wage Hike
GRUPO IUSACELL: Announces Change in American Depositary Share
HAYES LEMMERZ: Announces Planned Senior Unsecured Note Issuance
HAYES LEMMERZ: Court Confirms Plan of Reorganization
PEMEX: Mexican Presidency Issues Privatization-related Statement

PEMEX: To Award First Minatitlan Contract on May 29
TV AZTECA: Announces Addition of Four New Affiliates


V E N E Z U E L A

PDVSA: Dismissals Hurting Operations

     -  -  -  -  -  -  -  -

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

ACINDAR: Reports Black for the 1Q03
-----------------------------------
Acindar Industria Argentina de Aceros SA, Argentina's biggest
maker of steel rods, posted net profits of ARS199.5 million
(US$71.8 million) in the first quarter of 2003, reversing losses
of ARS607.8 million in the same period a year ago.

The Company, which exports much of its production, benefited from
the January 2002 peso devaluation, which made its goods
relatively more competitive on international markets, reports
Reuters.

Acindar defaulted on its US$354 million debt in December 2001,
becoming one of the first listed Argentine companies to do so.
The Company presented a proposal to restructure the debt to a
committee of its creditors in March.

Acindar is 21%-owned by Brazil's Cia. Siderurgica Belgo-Mineira.

CONTACT:  Acindar Industria Argentina de Aceros SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina
          B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com
          Contact:
          Arturo Tomas Acevedo, Chairman


AMERICAN CPU: Main Creditors Take Majority Control
--------------------------------------------------
HSBC Private Equity Latin America and JP Morgan Partners LLC
acquired American GPU Group, the Argentine holding that controls
electrical distributors Edesal (San Luis), Edelar (La Rioja) and
Edesa (Salta), reports Clarin. Under the acquisition agreement,
HSBC and JP Morgan - American CPU's main creditors - will
capitalize the Company after a debt restructuring is completed.
American CPU Group registers annual income of US$195 million.


DISCO: Informs Bourse It'll Miss Deadline For Earnings Filing
-------------------------------------------------------------
Disco SA, the Argentine unit of beleaguered Dutch supermarket
giant Royal Ahold NV, informed Argentina's stock exchange that it
will miss Monday's deadline for the submission of its first-
quarter 2003 results, relates Dow Jones.

In a statement signed by the Company's acting vice president
Lucas Gerardus Baptist de Jong, Disco explained that it is still
working on preparing its fourth-quarter 2002 results.

"It would make its best efforts" to file the two quarters'
results "as quickly as possible," the statement added.

In March, Disco asked for a delay in presenting its fourth-
quarter figures. Stock authorities turned down the request and
ordered the Company to release its earnings. The Company may face
fines and other sanctions for missing the deadlines, stock
exchange officials said.

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

          AHOLD NV, KONINKLIJKE
          3050 Albert Heijnweg1
          1507 EH Zaandam
          Netherlands
          Phone: +31 75 6599111
          Fax:  +31 75 6598350
          Telex:  1 9010
          Home Page: http://www.ahold.com
          Contact:
          Norbert L.J. Berger, Secretary


LAPA: Industry Minister Sues Directors
--------------------------------------
Argentine Industry Minister Anibal Fernandez sued the directors
of ailing airline Lapa, accusing them of leading the airline to
its current financial demise, reports La Nacion.

The suit, which was filed in the 'Juzgado Penal Federal Nø 6,
Secretar¡a 11" court, is described as 'delito de acci¢n p£blica.'

The suit follows the refusal of the directors to pay for the
plane's fuel during the Eastern Holidays, prompting a suspension
in all of the airline's flights. It also alleges that the
directors never made known that the Company was under embargo to
sell tickets.

Failure to give back the money to those passengers who were not
able to travel was also highlighted in the lawsuit.

The minister recently submitted a proposal that would help pull
the airline back to its financial health. The proposal would see
the creation of a new company, which would belong to the state,
and that would be absorbing Lapa workers, around 800 people. His
aim is to sell the company to private hands after a period of
time.

LAPA filed for protection from creditors in May 2001 due to
increasing costs of fuel, excessive taxes and the recession
plaguing the region. The filing listed debts of US$130 million to
local bank units of Citibank (C), BBVA Banco Frances (BBV), Banco
BanSud and Banco Rio.

The airline also owed around US$52 million to energy company
Repsol YPF SA; Royal Dutch Shell; Exxon Mobile Corp; Aeropuertos
2000, the concession that runs most of Argentina's airports; and
the Argentine air force for airspace fees.


MOVICOM: S&P Lowers Currency Ratings to `D' On Missed Payment
-------------------------------------------------------------
Credit ratings agency Standard & Poor's Rating Service lowered
the local and foreign currency ratings of Movicom BellSouth to
`SD' to `D,' reports Infobae. The downgrade reflected the
Company's failure to pay interest of US$150 million in debt.

At the same time, the ratings agency maintained a `CC' rating on
the Company's US$150 million in bonds that carry rates of 9.25%
and come due on 2008.

Movicom is currently in talks with creditors to negotiate over
US$510 million in debts. It has hired BroadSpan Capital as its
financial adviser.

Early this year, the mobile operator, which is controlled by
Bellsouth (65%), Motorola (25%) and BGH (10%), announced its
decision to suspend the payment of capital and interests in order
to assure the viability of the Company.


MUSIMUNDO: Sale To Yenny Encounters Difficulties
------------------------------------------------
Argentinean publishing house and book retailer Yenny-El Ateneo is
yet to close its acquisition of the troubled local music retailer
Musimundo, La Nacion suggests.

The deal, estimated to be valued at US$15 million plus
Musimundo's debt of ARS196 million, has been hampered by the
legal problems existing between the actual owners of Musimundo,
the credit banks - a pool of financial entities led by the
Citibank.

Moreover, Tower Records' new owners, led by Mr. Sergio Szpolski,
have already announced that they will file an injunction to
prevent the acquisition of Musimundo by the Yenny group, as this
would create a company that would control 77% of the Argentinean
music market.

Musimundo has got 57 shops and controls more than 60% of the
music selling business. Yenny, which belongs to the Ilhsa Group
of the Grneisen family, ranks second in the market with a total
of 17 branches and a 17% share in the market.


PEREZ COMPANC: Implements New Accounting Standards In Argentina
---------------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE:PC), controlling
company with a 98.21% stake in Pecom Energ¡a S.A. (Buenos Aires:
Peco), announces new accounting standards in Argentina.

As from January 1, 2003, new accounting standards must be applied
in Argentina under Technical Resolutions N. 16, 17, 18, 19 and 20
issued by professional associations. These new accounting
standards are in line with international standards set by the
International Accounting Standard Committee (IASC).

The most important changes introduced by the new standards and
having a significant impact on the Company are the following:

- Application of the Deferred Tax concept for Income Tax
recording, by stating temporary differences between accounting
measurements of assets and liabilities and their respective tax
valuations.

- Valuation of derivatives positions at their market value,
recording measurement differences of those qualifying as hedging
instruments and not yet accrued in an intermediate account
between Liabilities and Shareholders' Equity, and recording
measurement differences for non qualifying instruments in the
Income Statement.

- Application of present value for Receivables and Liabilities,
discounting nominal values to be realized in the future.

- Translation due to conversion of foreign companies' financial
statements, recording the relevant effect in an intermediate
account between Liabilities and Shareholders' Equity. Exchange
differences from liabilities assumed to cover net investments
abroad are recorded in the same account.

Application of these new accounting standards on Perez Companc
S.A. results in a one-time P$ 377 million reduction in
Shareholders' Equity as of the beginning of fiscal year 2003,
mainly due to the following:

                                               Million Pesos

Derivatives not qualifying
as hedging instrument                              (417)

Deferred Tax                                         31

Other net effects                                     9

Total                                              (377)


In 2003 first quarter, the change in the accounting standards
derived in a P$64 million gain as specified below:

                                               Million Pesos

Translation for conversion of net investments abroad: the peso
revaluation loss is recorded in an intermediate account between
Liabilities and Shareholders' Equity
                                                    91
Gains from valuation of liabilities
at present value               40

Deferred tax                                       (72)

Other net effects                                    5

Total                                               64

The Company incorporates in its Financial Statements an
intermediate account between Liabilities and Shareholders' Equity
created under the new accounting standards. As of March 31, 2003
such intermediate account shows a debit balance (or of a sign
opposite to that of the Shareholders' Equity) of P$ 135 million
and is broken down as follows:

                                              Million Pesos

Translation for conversion of net
investments abroad                                91

Derivatives qualifying as
hedging instruments                               86

Deferred Tax                                     (42)

Total                                            135

In addition, the new standards provide changes in reporting
criteria. The following are worth mentioning: prorata
consolidation of interest in affiliates under joint control,
segregation of discontinued operations in the Income Statement,
non-reporting of direct taxes on sales deducted from Net Sales.

It is worth noting that prorata consolidation does not change
Perez Companc S.A.'s results, but implies the incorporation in
each item of its Financial Statements the amount corresponding to
the companies under joint control resulting from the relevant
interest, instead of showing it in only one item as valuation
under the equity method as it has been shown so far.


PECOM ENERGIA: Fitch Urges Alternative Sources of Financing
-----------------------------------------------------------
Credit ratings agency Fitch Ratings confirmed its BB (arg)
national rating on US$2.2 billion worth of debentures issued by
Pecom Energia. The outlook on the rating is stable, reports
Business News Americas.

Meanwhile, Fitch maintained its B(arg) rating on short-term debts
issued by Pecom Energia.

The ratings reflect Pecom's ability to pay upcoming principal and
interest with its current cash flow, Fitch said.

The ratings agency warned though that the Company will have to
find alternative sources of financing to meet debt obligations
and new investments.

Pecom Energia faces annual interest obligations of about US$220
million and an investment plan worth US$400 million. Last year's
investment was US$180 million, compared to an annual average of
US$650 million, and this lack of investment will delay the
monetization of Pecom reserves by affecting production, Fitch
said.


PHILCO: Closing Factory
-----------------------
Nearly 100 employees of Argentine company Philco are about to be
sent home, reports Infobae. Philco representative Gustavo Solari
announced that the Company will be closing its factory located at
the South of Argentina, Tierra del Fuego Island. The decision
came after Daewo, one of its main shareholders, announced that it
is leaving the country. The 98 employees that would be dismissed
would be receiving 50% of the total as indemnity compensation,
said Solari. But the employees are demanding for more. Philco
makes T.V., videos, microwaves, and CDs.


SANCOR: Defaults on Debt Payments
---------------------------------
Milk producer SanCor defaulted on US$94.8 million in debt, being
unable to pay the last interest installment and capital on bonds
called "obligaciones negociables."

According to a report from Infobae, the Company issued the
floating rate notes for US$300 million in July 2000, with
interest rates computed according to the Badlar and the Libor.

Since then, the Company has made 14 installments on the interest
from and 13 installments on the capital. The Company informed the
Buenos Aires stock exchange that it will be unable to make
payments on the capital due last April 28, citing stress in the
milk market and lack of finances.

Last year, the Company asked creditors to accept partial payments
on interest, and postpone its debts' maturity dates. However,
said the report, the law prevents the Company from canceling
payments on capital and interest installments on the bonds.

In the meantime, the Company is starting negotiations with
creditors. It has hired the services of a team of lawyers led by
Mr. Orlando J. Ferreres to handle the talks.

In addition to its problems, the Company had to close a major
factory in Cordoba for 30 days.


SOUTHERN WINDS: Announces Need To Restructure As Losses Loom
------------------------------------------------------------
Argentine airline Southern Winds announced its need to
restructure after it retired from the International Clearing
System (IATA Clearing House or ICH), reports Infobae.

The airline is in danger of losing potential revenue as it could
no loner sell tickets from other airlines, and vice-versa. The
Company may also enter a "Concurso Preventivo" proceeding if it
fails to honor its debts to the clearinghouse.

Financial problems are not unique to Southern Winds. Other
regional airlines face the same problems as travel has been
greatly affected by the September 11 attacks on the U.S. and the
war in the Middle East. Other reports suggest the threat of SARS
in Asia may help improve the travel market in the Caribbean.

Southern Winds' employees have suffered delays in the their
salaries and bonuses of up to one and a half months. The airline
also feels the need to change some of its planes.


TELECOM ARGENTINA: Reports Profits in the 1Q03
----------------------------------------------
Argentina's second largest telco Telecom Argentina returned to
black in the first quarter of this year with a net profit of
ARS907 million (US$324mn). The Company reported a net loss of
ARS3.7 billion in the same year ago period, according to the
Company's earnings release.

Telecom Argentina, which is 54.7% owned by Nortel Inversora SA -
a partnership of France Telecom and Telecom Italia SpA,
attributed the positive result to appreciation of the peso, which
resulted in a net currency exchange gain of ARS1.1 billion.

Argentina's currency rose 20% against the dollar in the first
quarter, reducing the cost of servicing the Company's dollar-
denominated debt.

"The peso performance has helped greatly," said Christian Reos,
an analyst at Allaria Ledesma & Cia. "The economy bouncing back
is also changing business expectations at the company."

A government freeze on rates last year made it harder for
companies to repay dollar-denominated debt using revenue in
pesos. Most utilities defaulted on their debt and wrote off their
investments in Argentina.

In Feb, Telecom said it would use US$260 million in cash to buy
back part of its US$3.2 billion debt.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


TGS: Reports Positive Results Due To New Tax Policies
-----------------------------------------------------
Argentina's new tax regulations and a more favorable exchange
rate led local gas transport company TGS to a positive turnaround
in the first quarter of the year, Business News Americas reports,
citing company spokesperson Maria Victoria Quade.

The report reveals that the Company posted a net profit of ARS218
million (US$77.7 million) in the first quarter of the year,
against a loss of ARS690 million in the same period of 2002.

In light of the new regulations, TGS was able to apply deferred
tax benefits of ARS95 million in its first quarter results, while
a stronger exchange rate against the dollar represented a net
positive effect of ARS100 million on the Company's mostly US
dollar-denominated debt.

The Company also reported a non-operating profit of ARS30 million
in the quarter, compared to a loss of ARS863 million in 1Q02.
Operating income fell 28.7% to ARS94.2 million in 1Q03 re-
expressed in terms of inflation, but before inflation, the
Company's operating income was roughly the same, Quade said.

Total sales revenues dropped 17.5% to ARS213.4 million in 1Q03,
due mainly to gas transport rates, which remain frozen at their
January 2002 levels. This was partly offset by higher prices of
natural gas liquids (NGL), which led to an 82.5% rise in NGL
sales to ARS104 million.

Meanwhile, TGS is struggling to meet its financial obligations
and has already defaulted on US$430 million of US$492 million
debt due in 2003, Quade said.

Recently, Infobae reported that Boston-based Fleetbank, a
creditor of TGS, has started bankruptcy proceedings against the
utility. But the Company denied the report.

TGS is considering different alternatives, Quade said, adding
that TGS is still renegotiating its US$1 billion debt with other
creditors.

TGS is 70%-owned by local energy company Pecom Energia and
bankrupt US energy company Enron through the Ciesa consortium.

CONTACTS: IN BUENOS AIRES
          Investor Relations:
          Eduardo Pawluszek, Finance & Investor Relations Manager
          Gonzalo Castro Olivera, Investor Relations
          Email: gonzalo_olivera@tgs.com.ar

          Mara Victoria Quade, Investor Relations
          Phone: (54-11) 4865-9077
          Email: victoria_quade@tgs.com.ar

          Media Relations:
          Rafael Rodriguez Roda
          Phone: (54-11) 4865-9050 ext. 1238


* Argentina Seeks IMF Approval For New Economic Targets
-------------------------------------------------------
Argentina is seeking approval for a new set of economic targets.
Local paper La Nacion said that Economy Minister Roberto Lavagna
is set to meet with International Monetary Fund Officials this
week to discuss the new targets.

Mr. Lavagna will try to convince the IMF to allow the country to
keep the value of the peso at ARS3=US$1, from the previous
agreement of ARS3.85=US$1.

Argentina proposes to increase the money supply to ARS42 billion
(US$15 billion) by the end of the year, ARS5.4 billion more than
the ARS36.6 billion the two parties agreed on.

The newspaper added that the move will include the swapping of
IOU's issued by provinces, which circulate as currency.

The country also projects a 4 percent economic expansion from the
previous target of 1 percent. Inflation is also targeted to be
down to 15 percent from the 35 percent earlier expected.


* Argentina Pays World Bank Debt, Anticipates New Loan Approval
---------------------------------------------------------------
Argentine Economy Minister Roberto Lavagna announced that the
country made a US$793 million debt payment to the World Bank,
taking advantage of the grace period after the loan matured last
month.

Argentina was forced to use its owns resources to make the
payments after the lender tarried on deciding on a US$500 million
loan proposal Argentina is seeking. Reuters reports that the
country hoped to use proceeds of the loan to pay part of the
debt.

The grace period expires this week.

Mr. Lavagna said, "The government paid the debt today (May 12),
and the World Bank meeting to approve the new ($500 million) loan
takes place May 22."


* Federal Court Dismisses Class Action Suit Aimed at Argentina
--------------------------------------------------------------
A Federal Court in the United States rejected a proposal made by
Argentine bondholders seeking permission to file a class action
suit against Argentina.

Reuters News Services quoted Judge Thonas Griesa of the U.S.
Court for the Southern District of New York as saying, "The court
is most concerned about the idea of having such an amorphous,
ill-defined class, particularly without any indication of the
size of the proposed class.

"The court has in mind that an important channel for attempting
to resolve the Argentine debt problem will undoubtedly be the
effort to negotiate a debt restructuring," the ruling stated,
adding, "To the extent that other debt holders, whether few or
many, wish to pursue litigation, the litigation should be well
defined and its participants should be reasonably identifiable."

Judge Griesa expects that the negotiations will be carried on
largely, if not entirely by dent holders who do not choose to
engage in litigation. He is also is also studying other investor
suits against Argentina.

A spokesman for the government of Argentina commented that the
Court's decision was very constructive for the renegotiation
process. Argentina has been preparing for negotiations with
holders of the US$95 billion of defaulted debt. However, latest
estimates on the present value of the debt indicate that it
should be around US$60 million nowadays, considering the
devaluation of the Argentine peso.

Abigail McKenna from Morgan Stanley Investment Management and
chairperson of the Emerging Markets Creditors Association said,
"This (the ruling) avoids a lot of confusion that would have
ensued had the court allowed class action status."

"In the meantime, creditors have been organizing, in the United
States, German, Italy and Japan so they will be better prepared
to negotiate as a block when the restructuring talks begin," she
added.

To view copies of Judge Griesa's orders, click on these links:

(1) http://bankrupt.com/misc/dismissal_order1.pdf

(2) http://bankrupt.com/misc/dismissal_order2.pdf



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

TRENWICK GROUP: To Seek Alternative Capital For Lloyd's Ops
-----------------------------------------------------------
Trenwick Group Ltd. (OTC: TWKGF) announced Thursday that its
Board of Directors has authorized the senior management of its
Lloyd's of London business - Trenwick Managing Agents Limited
(TMA) - to seek alternative sources of capital to replace
Trenwick's ownership of TMA and the current capacity provided by
Trenwick and its subsidiaries on composite Syndicate 839 and life
Syndicate 44 from industry partners, private equity and other
financial sources.

Syndicate 839's authorized capacity for the Lloyd's 2003 year of
account is $508 million, of which $333 million is provided by
Trenwick, and up to $175 million by National Indemnity Company,
an affiliate of the Berkshire Hathaway Group. Syndicate 44's
capacity is $7 million of which $4 million is provided by
Trenwick.

W. Marston Becker, acting chairman and CEO of Trenwick said,
"Over the past two years, Michael Watson and the management team
at TMA have successfully repositioned Syndicate 839. It is now a
focused, profitable Lloyd's underwriter with market leading
franchises in a number of key segments including Aviation,
Homeowners, Financial Institutions and Professional Indemnity
insurance, as well as Treaty reinsurance and certain Specialty
insurance classes. The business is currently benefiting from very
attractive market conditions, which are likely to continue into
the next several years. Because of its in-depth knowledge of the
Lloyd's market and the unique business opportunities there, we
believe that the TMA management team is well placed to source the
capital for the future operation of the TMA managed syndicates
and ensure the continuity of the business."

The TMA management group, with the consent of Trenwick, has
retained the services of Benfield Advisory Limited and
PricewaterhouseCoopers LLP to assist it in its efforts and
Trenwick has requested Greenhill & Co., LLC, its restructuring
advisor, to assist it in evaluating any proposed transactions.

Background Information

Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with subsidiaries located in the United
States, the United Kingdom and Bermuda. Trenwick's operations at
Lloyd's of London underwrite specialty insurance as well as
treaty and facultative reinsurance on a worldwide basis.
Trenwick's U.S. specialty program business, specialty London
market insurance company, Trenwick International Limited and its
U.S. reinsurance business, conducted through Trenwick America
Reinsurance Corporation and its subsidiaries, are now in runoff.
In 2002, Trenwick sold the in-force business of LaSalle Re
Limited, its Bermuda based subsidiary.

CONTACT:  Trenwick Group Ltd.
          Alan L. Hunte, 441/292-4985
          Executive Vice President and Chief Financial Officer


TYCO INTERNATIONAL: Schatz & Nobel Represents Employees
-------------------------------------------------------
Schatz & Nobel, P.C. is co-lead counsel along with Stull, Stull &
Brody in a lawsuit filed on behalf of the employees of Tyco
International, Ltd. (NYSE: TYC), Tyco International US and other
companies affiliated with Tyco who bought Tyco stock in the
various Tyco 401(k) retirement plans.

They are continuing to investigate these claims.  If you bought
Tyco stock in one of the Tyco 401(k) plans and have information
concerning the Tyco 401(k) plans, or if you wish to discuss this
action or have any questions concerning your rights or interests
with respect to these matters, please contact attorneys Wayne T.
Boulton, or Nancy A. Kulesa at (800) 797-5499, or by e-mail at
wayne@snlaw.net.


TYCO INTERNATIONAL: Chelsea Unit Losing Edge in Legal Battle
------------------------------------------------------------
A Manhattan bankruptcy judge ordered Tyco International
subsidiary SimplexGrinnel to restore services to certain
customers. The injunction was ordered in relation to a dispute
between SimplexGrinnel and Chelsea-based fire and safety company,
Integrated Systems.

SimplexGrinnel is facing a US$27-million lawsuit filed by
Integrated Systems a few months after it filed for bankruptcy in
September last year.

Integrated Systems accused SimplexGrinnel of engaging in a
systematic campaign to take over its customers and drive it out
of business.

Integrated Systems used to hold exclusive rights to distribute
products made by Simplex, until Tyco unit Grinnel brought Simplex
in 2001 and formed SimplexGrinnel. Integrated Systems sought the
right to continue its exclusive distributor status, but was
forced into bankruptcy instead.

Tyco moved to have Integrated Systems dissolved, but Bankruptcy
Court Judge Allan Gropper dismissed the motion.

People from both Companies turned down requests for comments.

CONTACT:  TYCO INTERNATIONAL LTD.
          Corporate Office
          The Zurich Centre, Second Floor
          90 Pitts Bay Road
          Pembroke HM 08, Bermuda
          Phone: 441-292-8674
          Home Page: http://www.tyco.com



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

ENRON: Board Ditches Plan To Sell LatAm Assets
----------------------------------------------
Enron's board of directors decided to cancel plans to sell a
number of the bankrupt US power company's Latin American
businesses, reports Business News Americas.

The move, Enron spokesperson John Ambler revealed, follows a
decision to create a new company temporarily referred to as
"InternationalCo" that would manage those assets. The new company
will be governed by an independent board of directors and given
protection from joint and several Enron group liabilities
associated with the Enron bankruptcy.

The board's decision lies in the belief that the Enron estate
would raise more revenues from ongoing operations than through
individual asset sales.

Enron expects to present the reorganization proposal to the
bankruptcy courts on June 30, and the hope is that the plan would
be approved by 1Q04, Ambler said.

If court approves the plan, shares of InternationalCo would be
distributed to Enron's creditors as part of its overall
reorganization plan. This is likely to be added to the US$5
billion raised so far from sales of assets to pay off creditors.

The new company's Latin American assets include shares in various
Bolivia-Brazil pipeline operating companies and interests in
several South and Central American power generators.

PIPELINES

Bolivian domestic pipeline company Transredes (25%)
Bolivian gas export pipeline Gas Transboliviano (GTB) (30%)
Brazilian gas import pipeline Transportadora Brasileira Gasoduto
Bolivia-Brasil (TBG) (7%)
Colombian pipeline Centragas (55%)
Bolivian gas pipeline (to Cuiaba) Gasoriente Boliviano (GasBol)
(50%)
Brazilian gas pipeline (to Cuiaba) Gasocidente Do Mato Grosso
(GasMat) (56%)

VENEZUELAN ASSETS
Venezuelan natural gas liquids (NGL) facility Accroven (49%)
Venezuelan liquefied petroleum gas (LPG) distributor Vengas (97%)

POWER DISTRIBUTION
Brazilian power distributor Elektro Eletricidade e Servicos (88%)

POWER GENERATION
Panama's Bahia Las Minas Corp. (51%) (280MW)
Nicaragua's Empresa Energetica de Corinto (35%) (71MW)
Guatemala's Puerto Quetzal Power (PQP) (38%) (234MW)
Dominican Republic's Smith/Enron Cogeneration (SECLP) (85%)
(185MW)
Brazil's Empresa Producora de Energia Ltd. (Cuiaba EPE) (72%)
(480MW)
Argentina's Enron America del Sur S.A. (EAS) 100% Argentina Power
Generation

70 MW
There are four assets from outside Latin America: Turkish power
generator Trakya Elektrik (39%, 478MW), Korean gas distributor
SK-Enron (50%), Poland's ENS (75%, 116MW) and Guam's Marianas
Energy Company (50%, 88MW).



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

ENERSIS: Reaches Debt Agreement With Creditor Banks
---------------------------------------------------
Enersis SA, a Chilean unit of Spanish Endesa SA, revealed it
refinanced US$2.3 billion of loans owed to banks in 2003 and
2004, reports Bloomberg.

Under the agreement, Enersis will finish paying the debt in 2008.
In a faxed statement, Enersis said Spain's Banco Bilbao Vizcaya
Argentaria SA, Citigroup Inc.'s Citibank unit, Banco Santander
Central Hispano SA and Dresdner Bank AG will lend almost half of
the money and another 28 banks the rest.

The Company said that the loan, effective May 15, eliminates a
condition of the loans that a reduction in Enersis' ratings to
below investment grade by Standard & Poor's would make the debt
come due.

As previously reported, Enersis had its long-term corporate
credit and debt ratings lowered by S&P this year to BBB-, one
step above junk, from BBB.

CONTACT:  Enersis SA
          Avenida Kennedy Vitacura No
          5454
          Santiago
          Chile  1557
          Phone: +56 2 353 4400
          Fax:  +56 2 378 4768
          Home Page: http://www.enersis.cl
          Contacts:
          Engr Alfredo Llorente Legaz, Chairman
          Engr Rafael Miranda Robredo, Vice Chairman


INVERLINK: Bidders Names To Be Revealed May 16
----------------------------------------------
The names of the bidders in the upcoming sale of the companies
belonging to the bankrupt Chilean financial services group
Inverlink will be published May 16, according to a Chile National
TV report.

Companies up for sale include life and health insurance
companies, as well as other financial services operations, the
report reveals.

Inverlink was declared bankrupt in the wake of the scandal with
Chile's government development agency, CORFO.

On March 6, 2003, CORFO reported that one of their employees had
stolen bank certificates of deposit and other securities that
belonged to the agency. The amount involved was valued at about
$106 million. It was also alleged that the CORFO employee had
sold the securities through the stockbroker of Inverlink, who in
turn sold them into the secondary market through the local
electronic securities exchange ("Bolsa Electronica") in order to
raise cash for its ailing operations.

On March 10th, the government had a stop payment placed on the
instruments in question, intimating that the holders of the
stolen instruments could be at fault for engaging in a fraudulent
transaction. This made mutual fund investors nervous and they
began to unload their positions in like instruments, which
resulted in a funds outflow of some $500 million. Over the course
of three days, the mutual funds lost over $1.5 billion,
representing about 27% of total mutual fund assets, about 10% of
total interbank liabilities of the banking system.



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

PETROECUADOR: Proposes Alliance Contract, Decides in June
---------------------------------------------------------
Ecuador state oil company Petroecuador suggested that alliance
contracts should be offered to private companies. However,
Business News Americas reports that the Company is yet to make a
final decision on the nature of the contracts early in June.

Local paper El Comercio mentioned that Anglo-Dutch conglomerate
Shell, the Canadian Commercial Corporation (CCC), China Petroleum
Technology & Development Corporation, Russia's Yukos and
Transneft, and Japan's Mitsui have shown interest in refurbishing
Petroecuador's oil fields and/or upgrading its refineries.

Petroecuador's board has determined that the Energy Ministry's
proposed association contract structure runs the risk of the
private companies earning huge profits and depleting the
country's oil reserves.

The Energy Ministry suggested that private companies 20-year
contracts and a 60 percent stake in the production of the field,
while the state receives 40 percent. This means that oil-
producing fields Sacham Libertador and Auca offer a return on
investment of 180 percent, 109 percent, and 73 percent,
respectively, while Lago Agrio gives 28 percent and Shushufindi,
22 percent, said the report.

A Petroecuador source told BNAmericas that high profit
percentages are often offered when there is a risk in exploring
the block. However, in the case of the mentioned oil fields, risk
is nonexistent as these are already producing, and infrastructure
has been built.

Petroecuador suggests that alliance contracts should be offered,
as these would still attract investors, without giving away too
much. Under these contracts, private companies get 30-50 percent
of the market price, depending on the price of Ecuador's Oriente
crude. Contract duration would be determined by the time the
Company takes to pay its investment, and receive a "reasonable"
profit level.

The Company's report calculates that to obtain production of
45,000 barrels per day, a company would have to invest about
US$127 million, yielding total annual production of 16.2 million
barrels, which at an average price of US$18 a barrel would
generate US$290 million income every year, said the report.

Petroecuador is confident about its proposal as its operating
alliance contract with the Sipetrol international operations
subsidiary of Chile's state oil company Enap, is going well.

Sipetrol operates four fields - Mauro Davalos Cordero (MDC),
Paraiso, Huachito and Biguno, in Sucumbios province - and
according to the source will be able to pay off its US$90 million
investment in five years, said the report.

"We have experience with this type of arrangement, and if
companies with a 30% incremental stake in fields with higher risk
can pay their investment in five years, why would we give them
60% for 20 years?" asked the source.



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

KAISER ALUMINUM: Mulls Asset Disposal
-------------------------------------
KAISER ALUMINIUM Co. of the USA is considering the possibility of
disposing of "one or more" of its assets in bauxite/alumina and
primary aluminum, the Jamaica Gleaner reports.

The plan, according to president and chief executive officer Jack
A. Hockema, is part of an effort to maintain market leadership
and boost aluminum fabricated products upon emerging from Chapter
11.

"In light of that strategy and in an effort to further Kaiser's
emergence from Chapter 11 - which our advisers have indicated
could occur in 2004 - we have determined that it is appropriate
to explore the possible disposition of one or more assets in our
commodity-oriented businesses of bauxite/alumina and primary
aluminium," Hockema said in an open letter to employees,
customers and suppliers on May 2.

Kaiser's local investments include part-ownership in the Alpart
alumina refinery, as well as Kaiser Jamaica Bauxite Company
(KJBC). However, the Company gave no indication as to what
"assets" would be affected.

Kaiser and several of its affiliates filed for Chapter 11
bankruptcy protection Feb. 12, 2002, listing assets of US$3.3
billion and debts of US$3.1 billion.

CONTACT:  Kaiser Aluminum Corporation, Houston
          Scott Lamb, 713/332-4751



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

AHMSA: Workers Accept 5.3% Wage Hike
------------------------------------
Workers at Mexican steelmaker Ahmsa's No. 2 plant and its
subsidiaries accepted a 5.3 percent wage hike, said Business News
Americas. This marks the end of a collective bargaining
agreement, which expired on Monday.

Ahmsa, which has been in a form of bankruptcy protection for four
years, reduced net losses last year to MXN976 million (currently
US$94.8mn), from a loss of MXN1.65 billion in 2001.

Monclova-based Ahmsa, which describes itself as Mexico's largest
integrated steelmaker with capacity of some 3Mt, is controlled by
the GAN group.

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


GRUPO IUSACELL: Announces Change in American Depositary Share
-------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL) announced Friday
that, as of the opening of trading on the NYSE on May 12, 2003,
each of Iusacell's American Depositary Shares will represent one
hundred of its ordinary shares, and the new CUSIP number will be
40050B 20 9. Before the ratio change, the Company's ADS-to-
ordinary shares ratio was one-to-ten, and the CUSIP number was
40050B 10 0. The main purpose of the ratio change is to comply
with the NYSE rules requiring a minimum 30-day average trading
price of US$1.00 per ADS.

As no fractional ADRs will be issued, any resulting fractional
ADRs will be cashed out at a cash-in-lieu rate to be determined
by The Bank of New York as depositary, and the accounts of
applicable ADR holders will be credited as appropriate. This
ratio change will not affect holders of the Company's ordinary
shares and will be effected without charge to investors.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE:CEL; BMV:CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.
Iusacell is under the management and operating control of
subsidiaries of Verizon Communications Inc. (NYSE:VZ).

CONTACT:     Grupo Iusacell, S.A. de C.V., Mexico City
             Russell A. Olson, 011-5255-5109-5751
             russell.olson@iusacell.com.mx
             or
             Carlos J. Moctezuma, 011-5255-5109-5780
             carlos.moctezuma@iusacell.com.mx

             Web site at http://www.iusacell.com


HAYES LEMMERZ: Announces Planned Senior Unsecured Note Issuance
---------------------------------------------------------------
Hayes Lemmerz International, Inc. (OTC: HLMMQ) announced Monday
its intention, subject to market conditions, to sell up to $225
million principal amount of senior unsecured notes due 2010.

Hayes Lemmerz intends to use the net proceeds from the offering
to make payments in connection with its Plan of Reorganization to
support its emergence from Chapter 11.

The notes to be offered will not be and have not been registered
under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.  This press
release does not constitute an offer to sell or the solicitation
of an offer to buy, nor will there be any sale of these
securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under
the securities laws of any such state, and is issued pursuant to
Rule 135c under the Securities Act of 1933, as amended.

Hayes Lemmerz, its U.S. subsidiaries and one subsidiary organized
in Mexico filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court
for the District of Delaware on December 5, 2001.

Hayes Lemmerz International, Inc. is one of the world's leading
global suppliers of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components.  The Company has 43 plants, 3 joint venture
facilities and 11,000 employees worldwide.

CONTACT:  Hayes Lemmerz International, Inc.
          Marika P. Diamond
          +1-734-737-5162
          Web site: http://www.hayes-lemmerz.com


HAYES LEMMERZ: Court Confirms Plan of Reorganization
----------------------------------------------------
Hayes Lemmerz International, Inc. (OTC: HLMMQ) announced Monday
that the U.S. Bankruptcy Court for the District of Delaware
confirmed the modified Plan of Reorganization that was filed by
the Company and certain of its subsidiaries. Confirmation of the
modified Plan should permit the Company to meet its goal of
emerging from Chapter 11 prior to the end of the second quarter
of fiscal 2003. The modified Plan garnered overwhelming support
from its Unsecured Creditors and the Secured Lenders. Emergence
from Chapter 11 is subject to consummation of its proposed exit
financing facility to be arranged by Citigroup Inc. and Lehman
Brothers Inc.

"We are pleased that our modified Plan has been confirmed by the
Court and was supported by an overwhelming majority of our
creditors," said Curtis Clawson, Chairman and Chief Executive
Officer of Hayes Lemmerz. "This is wonderful news for our
employees, customers, and suppliers, and I want to thank all of
them for their support."

Mr. Clawson further commented, "Our emergence marks the end of
what may be the most difficult chapter in our company's
history. We have worked diligently over the past year and a half
to rebuild Hayes Lemmerz by strengthening the Company's
operational and financial performance. The actions we have taken
to enhance performance, streamline operations and compete
effectively in today's market will continue after emergence. We
will continue to aggressively pursue our goals of satisfying our
customers, becoming a low-cost producer and having the best
people."

As previously announced and in accordance with the modified Plan,
holders of prepetition secured claims will receive approximately
$478.5 million in cash and 53.1% of the New Common Stock. Holders
of senior note claims will receive $13 million in cash and 44.9%
of the New Common Stock, and holders of general unsecured claims
will receive 2% of the New Common Stock. Additionally, as part of
the confirmed Plan, a new seven-member Board of Directors will be
formed.


PEMEX: Mexican Presidency Issues Privatization-related Statement
----------------------------------------------------------------
Agreement on migration cannot be subject to foreign investment in
PEMEX

The Office of the Mexican Presidency acknowledges that the
negotiation of a migration agreement between the United States
and Mexico has been a priority since the government of President
Vicente Fox Quesada came to power. However, negotiating such an
agreement in exchange for opening up Petr¢leos Mexicanos (the
state oil industry- PEMEX) to foreign investment would be wholly
unacceptable.

Since the start of this government, major changes have been
undertaken at PEMEX to modernize its infrastructure and make its
management transparent, and thus guarantee that oil shall remain
in Mexican ownership.

Time and again we have said that PEMEX will be neither privatized
nor sold under this government. Once more, we reiterate our
promise.


PEMEX: To Award First Minatitlan Contract on May 29
---------------------------------------------------
Mexico's state oil company Pemex will to award the first
contracts to reconfigure its Minatitlan refinery on May 29, said
Hugo Ojeda, private secretary for the Company's engineering and
project development department.

This contract is aimed at building an access road and improving
the terrain for the construction of more plans, said Mr. Ojeda.

A total of six contracts relating to the Minatitlan project will
be awarded, said Business News Americas. Each contract is
estimated to be worth US$200-300 million, adding up to about
US$1.6 billion for the entire project. No single company is to
receive more than one contract to avoid dependency on a foreign
company, and encourage participation from the local private
sector.

Companies with little working capital may participate, as the
contracts indicate the payments will be made periodically,
according to the rate of completion.

Mexican companies are expected to dominate the bidding process
for the first contract, as the foreign companies are unlikely to
be interested in this type of project, said Mr. Ojeda.

The remaining five contracts, which involve building of new
plants, will be awarded before the year ends, so work on the
refinery is completed by late 2007. These are expected to attract
Japanese, Spanish, American and Canadian companies.

The whole project aims to upgrade the quality of fuel, lower
emissions and increase production of products with greater added
value. According to a statement from the Company, the expansion
aims to increase the refinery's current treatment capacity from
186,000 barrels per day of crude to 350,000 barrels per day, and
processing of heavy Maya crude will increase to 60 percent from
32 percent at present.

Once completed, Minatitlan will increase gasoline production to
150,000 barrels per day from 57,000 barrels per day. Diesel
output will rise to 75,000 barrels per day from 34,000 barrels
per day, while fuel oil output will be cut by half to 30,000
barrels day, said the report.

Pemex had started calling for bids last March but a delay in
receiving approval from the finance ministry for the Pidiregas
financing mechanism forced the Company to delay the bidding
process.


TV AZTECA: Announces Addition of Four New Affiliates
----------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish- language television programming
in the world, announced Monday that Azteca America, the company's
wholly owned broadcasting network focused on the U.S. Hispanic
market, has increased its coverage by adding four new affiliates
in San Diego and Monterey-Salinas, CA; Oklahoma City, OK; and
Naples-Ft. Myers, FL.  The additions increase the network's
coverage to 24 markets, representing 60% coverage of U.S.
Hispanic households.

With the addition of KZDF / Channel 41 in San Diego and KMCE /
Channel 52 in Monterey-Salinas, Azteca America now covers nine
markets in the state of California.

Also, the addition of the San Diego market means that Azteca
America now has a presence in 10 of the 15 most important
Hispanic markets.  WTPH / Channel 14 in Naples-Ft. Myers marks
the fourth affiliate in the state of Florida, while KOHC-TV /
Channel 38 in Oklahoma City is Azteca America's first affiliate
in the state.

"We are thrilled to have achieved the 60% coverage milestone, but
just as significant is the actual quality of affiliates that we
are welcoming into the Azteca America family," said Luis J.
Echarte, president and CEO of Azteca America. "As we continue to
grow our distribution network, we are encouraged by every new
station's commitment to the Azteca America name, not to mention
their interest in providing the best possible viewing experience
for our audience. Content and coverage are the two major
components of a successful network equation, and the results on
these two fronts so far have been encouraging."

Azteca America will be holding its first upfront event on
Tuesday, May 13, in New York City's Metropolitan Pavilion. In
addition, Azteca America also announced that cable carriage has
commenced at its Palm Springs, CA; and Las Vegas, NV, affiliates
on channels 19 and 63, respectively.

The four new affiliates are added to Azteca America's 20 existing
markets, including Los Angeles, New York, Miami, Houston, San
Antonio, San Francisco- Oakland-San Jose, Albuquerque, Fresno-
Visalia, Sacramento-Stockton-Modesto, Orlando, Austin, Las Vegas,
Bakersfield, West Palm Beach-Ft. Pierce, Salt Lake City, Santa
Barbara, Palm Springs, Wichita, Reno and Victoria.

Company Profile

TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks, Azteca 13 and Azteca 7, through 554 owned
transmitters across the country.  TV Azteca affiliates include
Azteca America Network, a new broadcast television network
focused on the rapidly growing US Hispanic market; Unefon, a
Mexican mobile telephony operator focused on the mass market; and
Todito.com, an Internet portal for North American Spanish
speakers.

CONTACT:  TV Azteca, S.A. de C.V.
          Investor Relations, Bruno Rangel
          +011-5255-3099-9167
          jrangelk@tvazteca.com.mx

          Omar Avila
          +011-5255-3099-0041
          oavila@tvazteca.com.mx

          Weber Shandwick, For TV Azteca
          Media Relations, in Los Angeles
          Carmen Lawrence
          clawrence@webershandwick.com
          +1-310-407-6570
          +1-310-407-6589

          Sonia Pena
          spena@webershandwick.com
          +1-310-407-6570
          +1-310-407-6589

          Mexico City
          Daniel McCosh
          +011-5255-3099-0059
          dmccosh@tvazteca.com.ms

          Tristan Canales
          +011-5255-3099-1441
          tcanales@tvazteca.com.mx
          Web site:  http://www.tvazteca.com.mx



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

PDVSA: Dismissals Hurting Operations
------------------------------------
Operations at Venezuela's state oil company Petroleos de
Venezuela, S.A. (PdVSA) were hurt by the dismissal of 18,400
employees, El Universal reports, saying that most of the
dismissed people were connected with the Company's main money-
making areas.

Almost half of those fired were from PdVSA's western region.
Other areas with a high number of people sent home were PdVSA's
Caracas headquarters, the Paraguana refinery complex, and the
eastern region, says the report.

The employees were sent home at the height of a two-month long
strike as President Hugo Chavez retaliated to moves aimed at
deposing him. The national strike, which almost totally crippled
the country's oil production, ended last February 1 for all
workers, except for those in the oil industry.

PdVSA, which had a pre-strike workforce of about 33, 000 people,
had some difficulties restarting refineries, citing the lack of
manpower and expertise in such areas.



               ***********


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
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The TCR Latin America subscription rate is $575 per half-year,
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* * * End of Transmission * * *