TCRLA_Public/030519.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

          Monday, May 19, 2003, Vol. 4, Issue 97

                           Headlines


A R G E N T I N A

DISCO: Counters Rumors; Makes Capital, Interest Payments
TGS: Scraps Current Restructuring Proposal; IDB Payments Delayed


B A R B A D O S

C&W WEST INDIES: CEO's Replacement Still in Limbo


B E R M U D A

ANNUITY & LIFE RE: 1Q03 Earnings Show Huge Losses
ESG RE: Reports First Quarter 2003 Results
SEA CONTAINERS: S&P Reviews for Further Ratings Cut
TRENWICK GROUP: Net Loss Shrinks in 1Q03


B R A Z I L

AES: Closes Senior Notes Tender Offer
AT%T LATIN AMERICA: Brazilian Arm To Launch Local Telephony June
CANBRAS COMMUNICATIONS: Successfully Refinances Debts
ELETROPAULO METROPOLITANA: Reports $4.8M in Profit in the 1Q03
LIGHT SERVICOS: Registers $45M Net Loss in the 1Q03
MRS LOGISTICA: 1Q03 Results Show YOY Improvement


C H I L E

AES GENER: Boosts Earnings in the 1Q03
ENAMI: Net Loss Reduced in 1Q03
ENDESA CHILE: Income Increases Follows Sales Trending Higher
ENERSIS: Continues To Report Negative Earnings
INVERLINK: Detained Owner Gets Approval To Hold Meeting


D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Woes May Weaken Dom. Republic's Ratings


E C U A D O R

PETROECUADOR: Lifts Force Majeure, Announces Delay in Shipments


M E X I C O

GRUPO TMM: Initiates Restructuring Proceeding in Mexican Court
SATMEX: Reports Q103 Results
VITRO: Fitch Moves to Rating Watch Negative


T R I N I D A D   &   T O B A G O

BWIA: Submits Required Restructuring Guidelines
CARONI LTD: Workers Threaten Legal Action


U R U G U A Y

* Uruguay Bondholders Register 90% Swap Offer Participation


V E N E Z U E L A

PDVSA: S&P Releases Report On Company, Subsidiaries
PDVSA: To Open 10 Stations In Brazil


     - - - - - - - - - -

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

DISCO: Counters Rumors; Makes Capital, Interest Payments
--------------------------------------------------------------
Contrary to speculation that Disco S.A. may not continue
servicing its debts, the Argentine unit of troubled Dutch retail
giant Royal Ahold NV paid capital and interest payments on two
convertible bonds on Thursday.

Citing a company filing with the local stock exchange, Dow Jones
reports that the Company, which is being sold by Ahold, paid
US$100 million in capital and US$4.6 million in interest on a
five-year bond that came due Thursday. Disco also paid US$12.3
million in due interest payments on a $250 million 10-year
negotiable bond.

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



TGS: Scraps Current Restructuring Proposal; IDB Payments Delayed
----------------------------------------------------------------
Transportadora de Gas del Sur S.A. (TGS; Local Currency Rating:
D/--/--; Foreign Currency Rating: D/--/--) announced Wednesday
its decision to withdraw the restructuring proposal presented to
its creditors on Feb. 24, 2003. The decision was based on the
lack of acceptance from certain long-term creditors, which
prevented the company from reaching the required majorities for
an Out of Court Agreement (Acuerdo Preventivo Extrajudicial).
Until now, TGS had been honoring part of the interest accrued on
its indebtedness. However, until a settlement is reached with
creditors, the company will postpone interest and principal
payments under all of its outstanding financial debt, including
the interest on the IDB loans that matured Thursday. Standard &
Poor's Ratings Services says it will closely monitor the
company's progress and future announcements regarding the
indebtedness.

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



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

C&W WEST INDIES: CEO's Replacement Still in Limbo
-------------------------------------------------
Cable & Wireless has not made a decision on a replacement for C&W
West Indies Chief Executive Errald Miller, RJRNews.Com reports,
citing a company spokesman. Earlier reports suggested that Mr.
Miller's exit from the company stirred some uncertainty within
C&W's reporting structure in the region. The Jamaica Observer
said that all three C&W sections in the Caribbean region are now
to report to C&W PLc in London.

Meanwhile, C&W chief information officer George Brown has also
stepped down from office. There were no official statements
disclosing his reasons for resignation, but the Jamaica Gleaner
said that his post is in duplication with C&W Plc.

C&W has commissioned international accounting firm Deloitte and
Touche to conduct a review. The Company said that the review may
result in further changes in its organizational structure and
manpower needs.

In the meantime, C&W West Indies maintains profitable operations,
as its parent company suffers heavy losses.

CONTACT:  Cable & Wireless PLC
          124 Theobalds Road
          London
          England
          WC1X 8RX
          Phone:  +44 (0)20 7315 4000
          Fax:  +44 (0)20 7315 5000
          Home Page:  http://www.cw.com
          Contacts:
          Sir Ralph Robins, Non Executive Chairman
          Sir Winfried W. Bischoff, Non Executive Deputy
                                         Chairman
          Graham M. Wallace, Chief Executive
          Robert E. Lerwill, Executive Director Finance



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

ANNUITY & LIFE RE: 1Q03 Earnings Show Huge Losses
-------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) reported
Thursday financial results for the three- month period ended
March 31, 2003. The Company reported a net loss of $(52,474,816)
or $(2.03) per fully diluted share for the three-month period
ended March 31, 2003 as compared to net income of $10,433,630 or
$0.39 per fully diluted share for the three-month period ended
March 31, 2002. The loss in the first quarter of 2003 was
primarily the result of losses associated with recaptures and
terminations of life and annuity reinsurance agreements and
adverse claims experience under the Company's life reinsurance
agreements.

During the first quarter of 2003, the Company negotiated the
recapture and termination of certain of its reinsurance
agreements, including several life reinsurance agreements and two
of its annuity reinsurance agreements, including its agreement
with Ohio National. In connection with these recaptures and
terminations, the Company incurred losses of approximately
$(39,585,000), resulting from the net write down of deferred
acquisition costs and cash payments made to cedents net of
reserve releases associated with the recaptures and terminations,
partially offset by the reversal of cumulative unrealized losses
in the embedded derivative under the Ohio National agreement. The
net loss for the three months ended March 31, 2003 was also
affected by reported claims under the Company's life reinsurance
agreements that exceeded the Company's expectations. A reduction
in investment income and increased operating expenses resulting
from the renegotiation of employment arrangements and other
employee compensation, increased costs of insurance for directors
and officers liability coverage and increased legal and audit
fees also contributed to the Company's net loss for three months
ended March 31, 2003.

Net realized investment gains for the three month period ended
March 31, 2003 were $1,663,868 or $0.06 per fully diluted share
as compared with net realized investment losses of $(321,708) or
$(0.01) per fully diluted share for the three-month period ended
March 31, 2002. The increase in net realized investment gains
during the three months ended March 31, 2003 was attributable to
the strong credit quality of the Company's portfolio and the low
interest rate environment.

Unrealized gains on the Company's investments were $5,406,527 at
March 31, 2003, as compared with $6,162,525 at December 31, 2002.
The Company's investment portfolio currently maintains an average
credit quality of AA. Cash used by operations for the three-month
period ended March 31, 2003 was $8,435,060, compared to cash
provided from operations of $14,327,629 for the three month
period ended March 31, 2002. Book value per share at March 31,
2003 was $8.23 compared to $10.28 at December 31, 2002.

Life Segment Results

Life segment loss for the three-month period ended March 31, 2003
was $(45,146,168), as compared with segment income of $7,226,698
for the three- month period ended March 31, 2002. The significant
segment loss in the first quarter of 2003 was primarily due to a
loss of approximately $(34,090,000) relating to the recaptures of
life reinsurance agreements by our cedents, reflecting the write
down of deferred acquisition costs and cash payments made to
cedents net of reserve releases. Segment loss for the three
months ended March 31, 2003 was also affected by continuing
adverse claims experience under the Company's reinsurance
agreements.

Annuity Segment Results

Annuity segment loss for the three-month period ended March 31,
2003 was $(7,870,476), as compared with income of $2,936,401 for
the three-month period ended March 31, 2002. The segment loss in
the first quarter of 2003 was primarily due to a loss of
$(4,875,000) related to the termination of the Company's annuity
reinsurance agreement with Ohio National, its second largest such
agreement, and the termination of another annuity reinsurance
agreement which produced a net loss of ($620,000). The loss
related to the termination of the Ohio National agreement is net
of the reversal of cumulative unrealized losses in the embedded
derivative associated with that agreement. Also, in the first
quarter of 2003, there was a loss of approximately $(1,000,000)
on another annuity reinsurance agreement reflecting a change in
mortality assumptions by the cedent under the contract.

Jay Burke, Chief Executive Officer and Chief Financial Officer of
the Company, commented, "During the first quarter of 2003, we
made progress toward downsizing the Company to a level where it
can expect to support its life reinsurance business requirements.
We have completed other recaptures in the second quarter and are
in discussions with other cedents regarding additional recaptures
and terminations. The second quarter recaptures are not reflected
in our results for the first quarter. My expectation is that the
recapture and termination activity will subside after the second
quarter.

"As I've mentioned before, we hope that 2003 will be the year we
stabilize the Company, but we continue to face a number of
difficult challenges. In April, our largest cedent of guaranteed
minimum death benefits drew down the trust accounts and letters
of credit collateralizing their statutory reserve cession to us.
Citibank, the issuer of the letters of credit, is not currently
demanding payment for the letters of credit drawn in excess of
the collateral we had already posted, however, it has reserved
its right to do so in the future.

"Also in April, we eliminated the Manulife letter of credit that
was issued for the benefit of our U.S. operating subsidiary, and
we recently reduced our unsecured letters of credit with Citibank
by another $5 million.

"As I've mentioned before, we continue to explore all strategic
alternatives for the Company."

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


ESG RE: Reports First Quarter 2003 Results
------------------------------------------
ESG Re Limited (ESREF.PK) reported Wednesday its financial
results for the quarter ended March 31, 2003.

The Company reported an overall loss of $1.8 million for the
quarter compared against a budgeted loss of $1.7 million. The
underwriting profit for the quarter amounted to $2.5 million
which was $1.9 million less than expected. Of this, $3.9 million
was due to a write down of estimated premium income for the North
American business which was partially offset by improved claims
experience and selected commutations. Investment income was $1.0
million, which was in excess of budget target. Operating expenses
were on budget at $6.4 million, despite adverse movement in the
Euro for the quarter.

The quarter resulted in an overall net loss of $0.16 per share.

In assessing the first quarter, Alasdair Davis, CEO, stated that
"The completion of the reaudit of 2001 and the audit of 2002 took
considerable time and attention during the quarter. Until we were
able to publish our audited financials, we were significantly
handicapped in our ability to produce new business. In the second
quarter we have been able to direct our full attention to
building new business and effectively managing the business
already on the books. We intend to remain in this business. Clean
audited accounts allowed us to restart the new business process
and focus on our clients".

Looking forward, Mr. Davis continued by saying that "Our clients
and prospects see that ESG is sufficiently capitalized with solid
bond assets writing business in which we are experienced and that
we understand. We have already acquired a new North American
client who will be coming on board mid-year and will bring in an
estimated $20 million in premium income."

Comparative Results

For the three months ended March 31, 2003, we had a net loss of
$1.8 million compared to a net loss of $5.5 million for the first
quarter of 2002. The net loss per share for the three months
ended March 31, 2003 was $0.16 compared with a net loss per share
of $0.47 for the first quarter 2002. The net operating loss for
the three months ended March 31, 2003, which excludes realized
investment gains, was $0.23 per share. Net operating loss for the
three months ended March 31, 2002, which excludes realized
investment losses was $0.38 per share.

Premiums

For the three months ended March 31, 2003, we had negative gross
written premiums of $12.0 million and negative net written
premiums of $8.0 million due to the write down of $29.9 million
in estimated premium income on our North America business.
Excluding these premium write downs, our gross written premiums
for the quarter ended March 31, 2003 amounted to $17.9 million
compared to $29.9 million for the quarter ended March 31, 2002.

Revenues

Total revenues for the three months ended March 31, 2003 were
$18.2 million, consisting of net premiums earned of $16.1
million, net investment income of $1.0 million, net realized
investment gains of $0.8 million and management fee revenue of
$0.4 million. For the three months ended March 31, 2002, total
revenues were $40.2 million, consisting of net premiums earned of
$38.9 million, net investment income of $1.8 million, realized
investment losses of $1.1 million and management fee revenue of
$0.5 million.

Expenses

For the three months ended March 31, 2003, expenses were $20.0
million, consisting of $7.4 million of losses and loss expenses,
$6.2 million of acquisition costs and $6.4 million of operating
expenses. Total expenses for the three months ended March 31,
2002 were $45.7 million, consisting of $25.3 million of losses
and loss expenses, $13.2 million of acquisition costs, and $7.2
million of operating expenses.

The decrease in operating expenses for the three months ended
March 31, 2003, as compared to the same three month period in
2002 is primarily due to foreign exchange gains of $0.6 million
arising in the first three months of the year.

During the first quarter 2003, there was adverse movement in the
Euro against the US dollar. While we continue to follow a foreign
exchange hedging strategy and policy designed to minimize the
impact of currency rate fluctuations on our statement of
operations, it is possible that continued strengthening of the
Euro against the US dollar could have an adverse impact on
budgeted operating expenses for the year.

Book Value

At March 31, 2003, total assets were $330.4 million and
shareholders' equity was $43.1 million or $3.89 per common share.
At December 31, 2002, total assets were $396.9 million and
shareholders' equity was $46.7 million, or $4.20 per common
share.

Operating Ratios

ESG Reinsurance

The loss and acquisition expense ratios for the three months
ended March 31, 2003 and 2002, were 79.2% and 103.2%,
respectively.

The combined ratio for the three months ended March 31, 2003 was
113.9%, compared to 117.0% for the three months ended March 31,
2002. The operating expense ratio for the first quarter 2003 was
34.7%, compared to 13.8% for the first quarter 2002.

ESG Direct

The loss and acquisition expense ratios for the three months
ended March 31, 2003 and 2002, were 91.2% and 70.9% respectively.

The combined ratio for the three months ended March 31, 2003 was
136.8%, compared to 118.6% for the three months ended March 31,
2002. The operating expenses ratio for the first quarter 2003 was
45.6%, compared to 47.7% for the first quarter 2002.

Further Information

Questions concerning these results should be submitted via email
to investor.relations@esg-world.com. Responses will be posted on
the Company's website at www.esg-world.com.

ESG Re Ltd provides medical, personal accident, credit life,
disability and special risks re-insurance to insurers and
selected re-insurers on a worldwide basis. The company
distinguishes itself from its competition by offering re-
insurance products and services that help its ceding clients to
manage their risks more effectively. ESG provides solutions to
specific underwriting problems, actuarial support, product design
and loss prevention.

ESG is building on its reinsurance expertise by developing its
direct marketing business. ESG will deliver innovative business
opportunities and client focused solutions to its affinity
partners using distribution methods such as direct mail,
telemarketing and bancassurance.

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

CONTACT:     ESG Re Limited
             Alasdair Davis
             Chief Executive Officer
             Tel: +353 1 6750200
             e-mail: alasdair.davis@esg-world.com
             or
             Alice Russell
             Investor Relations
             Tel: +353 86 819 2945
             e-mail: alice.russell@esre.ie


SEA CONTAINERS: S&P Reviews for Further Ratings Cut
---------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that its
ratings on Sea Containers Ltd., including the 'BB-' corporate
credit rating, remain on CreditWatch with negative implications
after Sea Containers provided an update on its planned
refinancing. Ratings were placed on CreditWatch on Nov. 14, 2002,
and subsequently lowered to current levels on April 10, 2003, due
to reduced financial flexibility and constrained liquidity.

"Ratings on Sea Containers remain on CreditWatch pending the
outcome of its planned refinancing of $158 million of debt
maturities that mature on July 1, 2003," said Standard & Poor's
credit analyst Betsy Snyder. The company announced it has
received satisfactory offers for assets to be sold of
approximately $160 million and that the SEC is currently
reviewing new securities with higher coupons and/or longer
maturities to be exchanged for senior notes due in 2003 and 2004.
In addition, it has signed letters of commitment with three banks
to provide a one-year $158 million facility, proceeds of which
are to be used to redeem $158 million of senior notes maturing
July 1, 2003, if the asset sales do not close by then. Although
the assets to be sold are noncore, the company will be left with
reduced cash flow and fewer assets available for sale if it
encounters further financial difficulties. If Sea Containers is
not able to refinance its July 1, 2003, debt maturities, ratings
will be lowered significantly. If the company is successful in
refinancing, ratings would likely be affirmed.

The ratings on Bermuda-based Sea Containers Ltd. reflect its
heavy upcoming debt maturities, including $158 million of senior
notes due July 1, 2003, and reduced financial flexibility;
partially offset by fairly strong competitive positions in its
major businesses. Sea Containers is involved in passenger
transport operations and marine cargo container leasing. It also
has a 47% stake in Orient-Express Hotels Ltd. (OEH). Passenger
transport is the largest operation, accounting for approximately
79% of total revenues. This business includes passenger and
vehicle ferry services in the English Channel, the Irish Sea, and
the Northern Baltic Sea; and passenger rail service between
London and Scotland, GNER (Great North Eastern Railway).

While Sea Containers is one of the larger ferry participants on
routes it serves, this is a highly competitive business, with
several participants. In 2002, Sea Containers acquired the 50% of
Silja OyjAbp, a major ferry operator in the Baltic Sea, which it
did not already own. GNER operates under a U.K. government
franchise that expires in 2005. Marine cargo container leasing
primarily includes Sea Containers' share of its joint venture
with General Electric Capital Corp., GESeaCo SRL, one of the
largest marine cargo container lessors in the world. Leisure
investments include the company's 47% stake in OEH, which owns
and/or manages deluxe hotels, tourist trains, river cruise ships,
and restaurants located around the world. Sea Containers had
previously owned 100%, but has been selling its stake over the
past few years, using proceeds to reduce debt. Sea Containers
also owns a variety of smaller businesses.


TRENWICK GROUP: Net Loss Shrinks in 1Q03
----------------------------------------
Trenwick Group Ltd. ("Trenwick") reported a net loss available to
common shareholders of $0.6 million or $0.02 per share for the
first quarter of 2003, compared to a net loss available to common
shareholders of $54.6 million or $1.48 per share for the first
quarter of 2002.

The net loss in the first quarter of 2003 includes $1.2 million
or $0.03 per share of charges related to professional and other
fees incurred during this period in connection with the ongoing
efforts to restructure the Company's indebtedness. The net loss
also included $6.2 million of letter of credit fees, an increase
of $4.6 million over the same period in 2002 and $1.9 million in
net fees incurred related to the underwriting facility with
Chubb. Re, Inc., ("Chubb Re"). The results for the first quarter
of 2002 included a charge of $23.0 million resulting from
additional underwriting losses incurred related to the September
11, 2001 terrorist attacks.

Trenwick's gross and net premium writings totaled $257.8 million
and $192.3 million, respectively, for the quarter ended March 31,
2003 compared to $465.6 million and $317.2 million, respectively,
for the quarter ended March 31, 2002. The decrease in premium
writings is a result of the sale of the in-force property
catastrophe reinsurance business of Trenwick's Bermuda based
subsidiary, LaSalle Re Limited on April 1, 2002, combined with
Trenwick's decision to cease underwriting United States specialty
program insurance and United Kingdom international specialty
insurance and reinsurance, both effective in the fourth quarter
of 2002. These decreases were offset in part by an increase in
premiums written through Trenwick's Lloyd's of London ("Lloyd's")
operation.

The combined loss and expense ratio for Trenwick for the first
quarter of 2003 was 101.1% compared to a combined loss and
expense ratio of 114.1% for the first quarter of 2002. The 2002
first quarter results include 8.6 percentage points of adverse
loss reserve development related to the September 11, 2001
terrorist attacks.

Trenwick's net investment income was $19.6 million in the quarter
ended March 31, 2003 compared to $29.3 million for the same
period in 2002. The decrease in the quarter compared to last year
is attributable to the reduction in invested assets, following
the repayment of Trenwick's term loan facility in June 2002 and
an increase in cash used in operations, and lower investment
yields. In addition, beginning in the fourth quarter of 2002 the
proportion of short-term investments within the portfolio
increased significantly following the sale of investments under a
plan to enhance the quality and liquidity of Trenwick's balance
sheet.

Trenwick posted net realized investment gains of $0.4 million in
the quarter ended March 31, 2003, compared to net realized
investment gains of $1.5 million for the same period in 2002. The
gains recorded during 2002 were a result of actions taken to
reposition the investment portfolio into higher quality, shorter
duration fixed income securities.

Trenwick recorded other expenses of $2.0 million during the three
month period ended March 31, 2003 as compared to other income of
$2.6 million recorded by Trenwick during the same period of 2002.
The negative result in 2003 is due to the inclusion of $3.0
million in fronting fees incurred in connection with the Chubb Re
underwriting facility. In addition, the 2002 income included $2.1
million of equity in net earnings of a managing general agency,
the ownership of which was sold by Trenwick at the end of 2002 in
connection with its decision to cease underwriting United States
specialty program insurance.

General and administrative expenses for the quarter ended March
31, 2003 were $3.7 million, an increase of $0.4 million over the
same period in 2002. These expenses include $1.2 million of costs
incurred in the 2003 quarter related to Trenwick's ongoing
efforts to restructure its indebtedness and preferred equity.

As of March 31, 2003, Trenwick's consolidated common
shareholders' equity totaled $80.6 million, or $2.19 per share,
compared to $77.5 million or $2.11 per share at December 31,
2002. The increase in consolidated shareholders' equity resulted
mainly from the unrealized gains on investments recorded during
the quarter.

During the first quarter of 2003, Trenwick reported cash used in
operations of $69.9 million. The increased cash used in operating
activities can be attributed mainly to increases in net claims
and claims expenses, and underwriting expenses paid combined with
a decrease in net investment income received. The increase in net
claims and claims expenses paid compared to 2002 is affected by
payments received in the 2002 quarter as a result of the
reinsurance to close the 1999 years of account on Trenwick's
Lloyd's syndicates. The increase in underwriting expenses paid in
2003 over 2002 is primarily attributable to severance payments
and other costs related to certain of Trenwick's operations being
placed into run-off in late 2002. The decrease in net investment
income received also is commensurate with the decline in
investment income experienced over the past two quarters. The
increased use of cash was offset slightly by a decrease in
interest expense and preferred share dividends paid, the result
of the repayment of Trenwick's term loan facility in the second
quarter of 2002, combined with the suspension of dividend
payments on Trenwick's preferred securities in the fourth quarter
of 2002.

Operational/Restructuring Summary

As previously reported, the future operations of Trenwick will
differ materially from prior periods as Trenwick has placed into
run-off substantially all of its insurance operations other than
its Lloyd's business. As result of the foregoing, Trenwick's
operations, at least for the foreseeable future, will likely
consist of the sale, or management in run-off, of its insurance
businesses. The reduced operations will be limited primarily to
the administration of claims, regulatory compliance, collection
of receivables, settlement of reinsurance agreements (including
commutations where appropriate), cash and investment management.
If the Company is successful in its run-off efforts to improve
the financial capability of the Company, it intends to seek to
repay indebtedness owed to Trenwick's creditors to the extent
permitted by the applicable regulator with primary jurisdiction
over each of the separate regulated entities and, to the extent
there are amounts remaining, to pursue other business
opportunities or to distribute amounts to its equity holders. It
is likely that these efforts, even if successful in whole or in
part, will require several years before any significant amounts
will be made available to the creditors and equity holders, if at
all.

Since the beginning of 2003, Trenwick has completed or initiated
the following major items in furtherance of its restructuring.

-- On April 15, 2003, Trenwick announced that it had ceased
underwriting reinsurance business under its previously announced
underwriting facility with Chubb Re. This decision was a result
of constraints caused by Trenwick's financial condition and
concerns arising with respect to its on-going stability, which
negatively affected Trenwick's ability to write new reinsurance
business under the facility. The underwriting facility, which
began in November 2002, permits Trenwick to write up to $400
million of U.S. reinsurance business on behalf of Chubb Re
through January 31, 2004. Since inception in November 2002,
Trenwick has underwritten approximately $128 million of
reinsurance in this facility. Trenwick will continue to be
entitled to the economic benefits of existing business under the
facility subject to the terms and conditions of the facility.

-- As previously announced, Trenwick reached an agreement with
the holders (the "Senior Noteholders") of the 6.70% Senior Notes
(the "Senior Notes") of its wholly owned subsidiary, Trenwick
America Corporation ("Trenwick America"), to extend the maturity
date of the Senior Notes until August 1, 2003 and to waive the
default occasioned when Trenwick America failed to pay principal
on the Senior Notes on April 1, 2003. Under the terms of the
agreement, Trenwick America has paid to the Senior Noteholders
all interest accrued through April 1, 2003, in the amount of
$2,512,500.

-- On May 8, 2003, Trenwick announced 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.

-- Trenwick continues to be engaged in discussions with the
insurance regulators of the jurisdiction in which its insurance
company subsidiaries are domiciled. On May 5, 2003, Trenwick's
New York domiciled subsidiary, The Insurance Corporation of New
York ("INSCORP"), entered into a "letter of understanding" with
the New York Insurance Department restricting INSCORP from taking
certain actions without the prior written approval of the
Department. Trenwick America Reinsurance Corporation, Trenwick's
Connecticut domiciled subsidiary, has a similar arrangement with
the Connecticut Insurance Department.

-- Trenwick has entered into a letter of intent with Castlewood
Holdings Limited and Litigation Control Group Limited for the
sale of Trenwick's United Kingdom subsidiary, Trenwick
International Limited. The sale of Trenwick International Limited
is subject to definitive documentation, completion of due
diligence and the approval of the Financial Services Authority in
the United Kingdom.

-- Since Trenwick announced its decision to place a majority of
its operations in run-off, Trenwick has initiated a process to
select a run-off firm to assist its management in developing and
executing its run-off plan. The selection of the run-off firm
will be subject to regulatory approval and approval by Trenwick's
principal creditors.

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 United States specialty program business, specialty
London market insurance company, Trenwick International Limited,
and its United States reinsurance business through Trenwick
America Reinsurance Corporation are now in run-off. In 2002,
Trenwick sold the in-force business of LaSalle Re Limited, its
Bermuda based subsidiary.

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



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

AES: Closes Senior Notes Tender Offer
-------------------------------------
The AES Corporation (NYSE:AES) announced Thursday that the tender
offer for its senior notes had expired and that it had purchased
approximately $1.1 billion face amount of senior notes for
approximately $997 million pursuant to the tender offer.

The senior notes were purchased with the proceeds of AES's
private placement of $1.8 billion second priority senior secured
notes, which was completed on May 8, 2003. The proceeds from the
private placement were also used to purchase approximately $104
million face amount of senior subordinated notes pursuant to the
tender offer and to repay $475 million under AES's senior secured
credit facilities.

The remaining proceeds of the private placement will be used for
general corporate purposes. The transactions substantially
eliminate all scheduled parent maturities at AES until 2005,
improve financial flexibility and parent liquidity, and lengthen
the average life of AES's parent debt maturities.

The following table shows the principal amount of each series of
senior notes that AES purchased.

                           Principal                   Principal
                           Amount        Amount        Amount
       The Notes          Outstanding    Tendered      Purchased
----------------------- ------------- ------------- -------------
8.00% Senior Notes, Series
A, Due 2008              $199,022,000 $54,576,000 $43,797,000
8.75% Senior Notes, Series
G, Due 2008              $400,000,000 $198,941,000 $161,398,000
9.50% Senior Notes, Series
B, Due 2009              $750,000,000 $313,485,000 $252,951,000
9.375% Senior Notes, Series
C, Due 2010              $850,000,000 $514,015,000 $414,345,000
8.875% Senior Notes, Series
E, Due 2011              $536,690,000 $281,546,000 $223,504,000

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 158
facilities totaling over 55 gigawatts of capacity, in 28
countries. AES's electricity distribution network sells 108,000
gigawatt hours per year to over 16 million end-use customers.

CONTACT:  AES Corporation
          Kenneth R. Woodcock
          Phone: 703/522-1315


AT%T LATIN AMERICA: Brazilian Arm To Launch Local Telephony June
----------------------------------------------------------------
The Brazilian division of regional corporate communications
provider AT&T Latin America, which received local telephony
license from telecoms regulator Anatel in December 2002, plans to
launch the service for the corporate sector on June 5. Citing
Brazilian daily IT Web, Business News Americas reports that ATTL
will launch the service in Rio de Janeiro, Belo Horizonte,
Curitiba, Porto Alegre and Brasilia, and expects 50% of its
current clients to adopt the service by year-end.

AT&T Latin America provides data and voice telecommunications,
internet and e-commerce services in Chile, Argentina, Brazil,
Peru and Colombia.

CONTACT:  AT&T Latin America
          Marcelo Esquivel
          Phone: 011-562-241-4706
          Email: marcelo.esquivel@attla.com
             or
          Catherine Castro
          Phone: +1-202-689-6336
          Email: catherine.castro@attla.com


CANBRAS COMMUNICATIONS: Successfully Refinances Debts
-----------------------------------------------------
Canbras Communications Corp. (TSX:CBC) ("Canbras" or the
"Corporation") announced Thursday that its subsidiary, Canbras
TVA, has entered into a new Reais-denominated credit facility
with a group of Brazil-based banks, the proceeds of which will be
used exclusively to refinance Canbras TVA's existing US$18.5
million Floating Rate Note facility.

Renato Ferreira, President and CEO of the Canbras Group, stated,
"Canbras is very pleased with the new credit facility, which is
designed to refinance the existing US-dollar denominated credit
facility. The new loan will enable Canbras TVA to repay in a
timely manner the US$9.25 million principal repayment due on May
14, 2003, and provides for a further loan in May 2004 for the
purpose of repaying the balance of the US-dollar denominated
facility due at that time. In addition, the new facility is based
on a business plan which has been agreed with Canbras' partner in
Canbras TVA, and which management believes will enable the
Canbras Group to continue in operation for 2003 and beyond."

The new Reais-denominated credit facility, which has a four-year
term, is subject to monthly amortization of principal and
interest as well as certain mandatory prepayment terms, and bears
interest at a floating rate equal to 110% of the Brazilian
Interbank Certificate of Deposit ("CDI") rate. Subject to
customary closing conditions, the funds will be disbursed in two
tranches, the first on May 14, 2003 in an amount sufficient to
repay the Series B Floating Rate Notes in the principal amount of
US$9.25 million plus accrued interest, and the second on May 14,
2004 in an amount sufficient to repay the Series C Floating Rate
Notes in the principal amount of US$9.25 million plus accrued
interest. The new credit facility and the existing Floating Rate
Note facility will rank pari passu and are secured by a first
priority pledge on substantially all assets of Canbras TVA. In
addition, within thirty days after signing of the new credit
facility, Canbras and its partner in Canbras TVA are required to
pledge to the lenders under both facilities their capital stock
of Canbras TVA.

Although Canbras believes that the new credit facility, together
with the related business plan agreed with Canbras' partner in
Canbras TVA, will enable the Canbras Group to continue in
operation for 2003 and beyond, the new credit facility contains
certain strict financial and other covenants and obligations
which, if not maintained or complied with, would result in an
event of default under both the new credit facility and the
existing credit facility. In addition, if the required pledge of
the capital stock of Canbras TVA is not timely completed, an
event of default would occur under both credit facilities. Upon
an event of default, the lenders under both facilities would be
entitled to demand immediate repayment of the entire amounts of
the indebtedness outstanding under such facilities. Canbras TVA's
ability to comply with all financial and other covenants and
obligations contained in its credit facilities is dependent upon
the results of its operations which can be significantly impacted
by economic, political, competitive and other conditions
prevailing in Brazil, and therefore, there can be no assurance
that Canbras TVA will be able to comply with all financial and
other covenants and obligations contained in its credit
facilities, or that the Canbras Group will be able to continue in
operation for 2003 and beyond.

General

Canbras, through the Canbras Group of companies, is a leading
broadband communications services provider in Brazil, offering
cable television, high speed Internet access and data
transmission services in Greater Sao Paulo and surrounding areas
and the State of Paran . Canbras Communications Corp.'s common
shares are listed on the Toronto Stock Exchange under the trading
symbol CBC. Visit our web site at www.canbras.ca.


ELETROPAULO METROPOLITANA: Reports $4.8M in Profit in the 1Q03
--------------------------------------------------------------
Eletropaulo Metropolitana, Latin America's biggest power
distributor in revenue terms, posted a net profit in the first
quarter of the year following a 6% appreciation of the Brazilian
real currency. According to a Reuters report, the utility, whose
control is disputed between Brazil's BNDES bank and U.S. power
giant AES Corp, reported a net profit of BRL14.2 million ($4.8
million), compared to a loss of around BRL14 million in the same
quarter a year ago.

Net revenues in the first quarter totaled BRL1.4 billion, up 2.5%
from year-ago levels when Brazil was still in the grip of power
rationing. The profitable results, according to Unibanco analyst
Sergio Tamashiro, came as a pleasant surprise for the market.

"A company that everyone says is bust posts a profit. It's a
great result," he said.

Last month, Eletropaulo missed a US$25 million debt payment to a
group of banks, and it also pledged on Thursday to resolve that
situation before Sept. 15. If it fails to meet the deadline, it
risks heavy contractual sanctions.

BNDES and AES renewed debt talks on Wednesday, but BNDES
President Carlos Lessa said on Thursday the bank was still
proceeding with its plan to auction off Eletropaulo's ordinary
shares that give control of the company, as it analyzed AES's new
proposal.

BNDES said the sale process would take at least 107 days,
including a tender to chose investment banks to evaluate
Eletropaulo's market value and set a minimum price for the
auction.

In the meantime, AES continues to manage Eletropaulo, an
arrangement that is expected to continue until a restructuring
deal is worked out or BNDES finds another buyer for the
distributor.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


LIGHT SERVICOS: Registers $45M Net Loss in the 1Q03
---------------------------------------------------
Brazilian electric power distributor Light Servicos de
Eletricidade, which is controlled by French state-owned
Electricite de France (EDF), plunged into the red in the first
quarter of the year. According to Dow Jones, the Company posted a
net loss of BRL135.2 million (today US$45mn) in the first
quarter, compared to a net profit of BRL23.6 million from 1Q02.

Net revenues were BRL1.04 billion compared to BRL987.9 million,
while operating losses were BRL113.4 million compared to BRL16.5
million a year ago. A Dow Jones Newswires survey expected the
power distributor to post a BRL28.3 million net profit.

Lower electricity usage and large provisions led the utility to a
sizable loss of BRL1.26 billion for the full year in 2002,
compared with a loss of BRL951 million a year earlier.

In April, Light, the No. 1 energy distributor in Rio de Janeiro
state, announced a plan to embark on a debt-restructuring program
and hired Citigroup Inc., Europe's biggest power producer, as
adviser.

Light, which serves about 3.5 million consumers in Rio de
Janeiro, is facing about BRL1 billion in debt maturing in 2003
and another BRL1.9 billion due in 2004.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


MRS LOGISTICA: 1Q03 Results Show YOY Improvement
------------------------------------------------
MRS Log¡stiica S.A., one of the largest railroad concessionaires
in Brazil, announces its results for the first quarter of 2003.

MRS transported 18.8 million tonnes in 1Q03, 6.6% below volumes
achieved in 4Q02 and 17% higher when compared with the same
period of 2002. The reduction in volumes in 1Q03 was caused by
the decrease in iron ore exportation due to the raining period
and to the interruption of the coal and coke terminal at the
Sepetiba Port (RJ). Gross revenues in 1Q03 reached R$294.4
million, a reduction of 33.8% and an increase of 66.5% when
compared to 4Q02 and 1Q02, respectively. Without taking into
consideration the effect of the R$ 184 million additional revenue
in December, gross revenues in 1Q03 increased 13%, compared with
4Q02.

Despite the lower volume transported during 1Q03, the increase in
gross revenues was a consequence of a 21% higher average tariff
in 1Q03 when compared to the previous quarter. This growth in
tariffs was caused, primarily, by the increase in tariffs applied
to captive clients - clients whose cargoes have a high degree of
dependency on the railway - which are adjusted annually, based in
the Company's Tariff Model Fuel and lubricant costs increased
106.5% and 13.5% when compared with 1Q02 and 4Q02, due to the
increases in fuel prices of 84.4 % and 26.7%, respectively. Costs
of general materials - generally parts for the maintenance of
locomotives and wagons - also showed a 29.9% increase when
compared with the same period of 2002, and a reduction of 15.8%
when compared with the previous quarter, as a consequence of the
effects of the exchange rate variation in these periods. Costs of
contracted services - generally applied to the maintenance of
locomotives and railcars - increased 58% when compared the same
period of 2002, and a reduction of 4.9% with regards to the
previous quarter.

EBITDA in 1Q03 amounted to R$ 106.4 million, 20.7% higher than
previous quarter, without considering the effect of the
additional revenue in December. When compared with the same
period of 2002, EBITDA in 1Q03 showed an increase of 144%.

Cash generation reached R$102.3 million in 1Q03, an increase of
20.1% and 110.6% compared to 4Q02 and 1Q02, respectively.
Operating profit before financial effects, reached R$94.8million
in 1Q03, 30% higher than last quarter, not considering the
additional revenue in December.
The Company showed a net income of R$29.1 million in 1Q03.
Besides the improvement in operational and commercial aspects,
the result benefited from the 5.1% appreciation of the Real
during the period.

Among commercial and operational aspects, we should highlight:

- Conclusion of a transportation agreement with Companhia Vale do
Rio Doce - CVRD, regarding the shipment of 1.2 million tonnes of
iron ore for export from Casa de Pedra,

- Alberto Flores and Esta‡ao do Pires (MG) to the Sepetiba Port.
First shipments started in April and will continue at a 150
thousandtonnes/ month rate until December/ 2003.

- Increase in the transportation of iron ore for export for MBR
to the Port of Gua¡ba (RJ) in 1 million tonnes and for Ferteco to
the Sepetiba Port in 850 thousand tonnes, throughout the period
April-December/2003.

- Beginning of transportation of steel products from Companhia
Sider£rgica de Tubarao - CST (ES) to Companhia Sider£rgica
Nacional - CSN in Volta Redonda (RJ). Total volume for 2003 is
expected to reach
200 thousand tonnes.

- Conclusion of an agreement with General Electric regarding the
acquisition of 22 imported GE locomotives, which are scheduled to
start operating in July/2003.

- Conclusion of negotiations with National Railway Equipment
Company regarding the acquisition of 10 imported GE C-30
locomotives, which are scheduled to start operating in
August/2003.

The above highlights allowed the Company to forecast a total
volume of 85 million tonnes in 2003.

CONTACT:  MRS LOGISTICA S..A.
          Praia de Botafogo, 228/1201-E
          22250-906 - Rio de Janeiro - RJ
          Brasil
          Contacts:
          Eduardo Cassinelli, Treasurer
          Phone: 55-21-2559-4600

          Marco Andr‚ Guimaraes, Financial Manager
          Fax: 55-21-2552-2635

          Maria L£cia Silveira, Financial Analyst
          E-mail: daf@mrs.com.br

          Home Page: www.mrs.com.br



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

AES GENER: Boosts Earnings in the 1Q03
--------------------------------------
AES Gener SA, Chile's second-biggest generator after Empresa
Nacional de Electricidad SA, reported an improvement in its first
quarter 2003 financial results. Citing a company statement,
Business News Americas reports that AES Gener posted a 55.9%
increase in profit in the first quarter of the year to CLP15.4
billion from that of the same period a year ago.

The improvement in the Company's earnings came after non-
operating losses fell 70.9% to CLP7.2 billion. The 190% increase
in financial income to CLP11 billion as well as the CLP6.44
billion gains from exchange rate differences, compared to CLP8.65
billion losses in the previous year also contributed to the
improvement.

Meanwhile, the Company posted a 6.7% drop in its operating
profits to CLP31.7 billion. Operating income fell 7.42% to
CLP94.5 billion, and operating costs fell 8.16% to CLP58.5
billion.

The 2002 operating result included extraordinary income, AES
Gener said, pointing out the consolidated operating EBITDA was
CLP44.5 billion.

AES Gener is 98.65% owned by US-based power company AES Corp. The
parent is likely to sell part of its stake in AES Gener to help
it service upcoming debts.

CONTACT:  AES GENER S.A.
          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page: www.gener.com
          Contact:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer


ENAMI: Net Loss Reduced in 1Q03
-------------------------------
Chile's state minerals processing company Enami paired losses in
the first quarter of the year to US$3 million from US$6 million
in the same year-ago period, Business News Americas reports,
citing chief executive Jaime Perez de Arce.

The Mr. Arce also announced that Enami has hired UK consultants
Brook Hunt to evaluate its Ventanas copper smelter-refinery,
which produces around 320,000t/y copper cathodes, and is thought
to be worth US$300 million-400 million.

The government is selling Ventanas to state copper corporation
Codelco, as part of a plan to resolve Enami's US$500-million debt
problem. Meanwhile, Codelco has hired a company associated with
Citibank to evaluate Enami's principal asset.

Enami, an industrial enterprise that is wholly owned by the
Chilean government, provides copper smelting and refining
services to small to mid-sized mining operations. In addition, it
supports these companies by providing price-stabilization
programs, loans, and technical and marketing assistance. By
performing these functions for companies, Enami helps to create
thousands of jobs in areas of Chile where unemployment would
otherwise be high.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President


ENDESA CHILE: Income Increases Follows Sales Trending Higher
------------------------------------------------------------
Chile's Empresa Nacional de Electricidad SA, otherwise known as
Endesa of Chile, reported an increase in net income at the end of
the first quarter of the year. Citing a company statement,
Bloomberg reports that the Company, a unit of Endesa SA of Spain,
reported a net income of CLP24 billion ($32.7 million) against
the CLP17 billion reported in the same year-ago period, the
company said in a faxed statement. The boost in the profit
follows an increase in energy sales in Chile and Peru.

Endesa-Chile is the largest electricity generation company in
Chile and owns and operates approximately 48% of the country's
total generating capacity.


ENERSIS: Continues To Report Negative Earnings
----------------------------------------------
Enersis SA, South America's second-largest energy company,
reported a loss in the first quarter of 2003 due to declining
revenues, reports Bloomberg. In a filing submitted to Chilean
securities regulators, the Company, the Latin American unit of
the Spanish Endesa SA, revealed a loss of CLP26.2 billion ($35.7
million) compared with net income of CLP16.6 billion in the same
period a year earlier. Revenue at Enersis declined 4.3% to CLP627
billion from CLP655.3 billion a year earlier.

Enersis is the largest private electricity distribution group in
Latin America. The Company has varying ownership interests in
electric distribution companies in Argentina, Brazil, Chile,
Colombia and Peru; electric generating companies in Argentina,
Brazil, Chile, Colombia and Peru; and electric utility-related
service companies.

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682
          Contacts:
          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl


INVERLINK: Detained Owner Gets Approval To Hold Meeting
-------------------------------------------------------
Eduardo Monasterio, chairman of the embattled Chilean financial
group Inverlink, obtained approval from judge Patricio Villaroel
to hold a shareholders' meeting on June 4, reports Business News
Americas.

Mr. Monasterio, who earlier this year admitted to organizing the
theft of US$95 million in CDs from industrial development agency
CORFO, and was subsequently detained due to the illegal act, will
attend the shareholders' meeting through a representative.

Inverlink, which was declared bankrupt in the wake of the scandal
with CORFO, is putting some of its companies up for sale.
Companies up for sale include life and health insurance
companies, as well as other financial services operations.



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

BANCO INTERCONTINENTAL: Woes May Weaken Dom. Republic's Ratings
---------------------------------------------------------------
Standard & Poor's Rating Services said Thursday that it placed
its 'BB-' long-term ratings on the Dominican Republic on
CreditWatch with negative implications. The CreditWatch placement
reflects the risk that the ratings will be lowered if the
emerging problems at Banco Intercontinental S.A. (BanInter), the
third-largest bank in the Dominican Republic, further weaken
political institutions, the external reserve position, and
economic policy flexibility. The 'B' short-term rating on the
Dominican Republic was not placed on CreditWatch.

The central bank took control of BanInter in April, but mounting
evidence of widespread fraud has undermined plans to sell the
intervened bank. On May 13, 2003, BanInter's president was
arrested and the government took over the bank's companies and
confiscated the assets of its principal shareholders. There is no
indication that other Dominican banks are affected.

The ratings on the Dominican Republic are constrained by low
international reserves, shallow domestic capital markets, and
relatively weak institutions and social indicators. The ratings
are supported by tax and social security reform programs and a
low and favorably structured public sector debt burden.

"Should these attributes be undermined by the contingent
liabilities posed by the financial sector, a downgrade to 'B+'
would be likely," said sovereign analyst Joydeep Mukherji.

Standard & Poor's intends to resolve the CreditWatch as more
precise information on the magnitude of the contingent liability
and its impact on economic growth prospects becomes available.

ANALYSTS:  Joydeep Mukherji, New York (1) 212-438-7351; Marie
Cavanaugh, New York (1) 212-438-7343



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

PETROECUADOR: Lifts Force Majeure, Announces Delay in Shipments
---------------------------------------------------------------
Petroecuador lifted Wednesday a force majeure, declared less than
two weeks ago, after a landslide severed its sole pipeline,
forcing it to miss certain sales obligations. The force majeure
was lifted, a senior official told Reuters, adding that "all the
shipments were reprogrammed" for the last two weeks of May.
Shipments were mostly delayed between four and five days, he
said, on condition of anonymity.

The severed pipeline runs from oil fields in the Amazon across
the Andes Mountains to the Pacific port of Esmeraldas. The
Company used to export 120,000 barrels daily before the
landslide.

With oil as its biggest export, Ecuador is expected to suffer
financial setbacks from the tragedy. Last month, heavy machinery
driving over the duct caused the pipeline to burst, spilling
about 8,000 barrels of crude. A new pipeline, worth US$1.3
billion is being built, and is expected to go into operation in
the fourth quarter.



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

GRUPO TMM: Initiates Restructuring Proceeding in Mexican Court
--------------------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM) (BMV:TMM A) ("Grupo TMM" or the
"Company") announced Thursday that it has initiated a legal
proceeding in a court of local jurisdiction in Mexico (the
"Court"). The proceeding petitioned the Court for an order
effectively imposing a grace period during which creditors of the
Company, including the holders of its 9 1/2 percent Senior Notes
due 2003 (the "2003 notes"), its 10 1/4 percent Senior Notes due
2006 (the "2006 notes") and its receivable securitization trust
certificates, would be prevented from pursuing in Mexico the
exercise of remedies based on a breach of the Company's existing
debt obligations. The Company initiated the proceeding to prevent
the adverse effects of the imminent defaults under the 2003
notes, 2006 notes and the call option outstanding under its
existing receivables securitization facility, to provide the
Company with additional time to complete a restructuring or
refinancing of its debt obligations in an orderly fashion and to
preserve the Company's business. The Company, in seeking such
relief, acknowledged its legal obligation to make payment on
these obligations and cited, among other factors, the efforts
that the Company has made in good faith over an extended period
of time to restructure its obligations through the exchange
offers. The Company requested the court to allow them at least
one year of relief from the exercise of remedies by such
creditors.

On May 13, 2003, the Court granted an injunction and issued an
order (the "Order"), which by its terms, prevents for all
purposes in Mexico any of the Company's current creditors from
bringing any claims in Mexico for defaults on the Company's
existing debt obligations while the Order is in effect. The Order
will stay in effect until the conclusion of the case on the
merits of the claim.

The proceeding is a commercial matter and is not a concurso
mercantil (or Mexican bankruptcy proceeding).

The Company has not made the interest payments due Thursday on
the 2003 notes or the 2006 notes or paid the principal amount of
the 2003 notes, which mature Thursday.

The Company will provide additional information, including
information regarding the extension of its outstanding exchange
offers for the 2003 notes and 2006 notes, not later than 9:00
a.m., New York City time, on Friday, May 16, 2003.

Citigroup Global Markets Inc. is acting as the dealer manager for
the exchange offers and consent solicitations. The dealer manager
was not aware of the proceeding prior to the time the Order was
issued. In light of the Order, the Company and the dealer manager
are considering the alternatives for the exchange offers.

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


SATMEX: Reports Q103 Results
----------------------------
-- Satmex 6 on budget, on schedule for Q3-03 launch
-- EximBank and Coface approve applications
-- 1Q-03 EBITDA reaches US$11.2 million

Satelites Mexicanos, S.A. de C.V. ("Satmex") announced its
financial results for the quarter ended March 31, 2003, posting
revenue of $20.8 million, and EBITDA (earnings before interest,
taxes, depreciation and amortization) of $11.2 million, a 53.9%
EBITDA margin.

"I'm very pleased with the first quarter results given the
operating environment and the launch horizon for Satmex 6," said
Lauro Gonzalez, chief executive officer of Satmex. "We
implemented significant expense reductions, especially headcount,
to meet the challenges that 2003 presents."

Financial Results for the Period Ended March 31, 2003

Revenue

Revenue for the quarter was $20.8 million, as compared to $22.6
million for the same quarter in 2002. The year over year decrease
is due mainly to lower capacity utilization of the fleet, driven
by the Innova contract that expired on March 31, 2002 and which
accounted for $1.5 million in revenue in 1Q-02. In 1Q-03, non-
recurring revenue, related primarily to contract cancellations,
amounted to $600,000.

Operating Expenses and Profitability

Cash operating expenses (total operating expenses excluding
depreciation and amortization) were $9.6 million in the first
quarter of 2003 compared to $9.6 million during the first quarter
a year ago.

Satellite operating costs, which consist primarily of satellite
insurance and personnel costs related to the operation of the
satellites, were $3.6 million in the first quarter of 2003, a
decrease from $4.9 million in the same quarter of last year.
Included in the first quarter of this year's costs was $0.5
million for the cost of temporary replacement capacity on other
satellites for customers on Solidaridad 1, compared to $1.6
million during the first quarter of 2002.

Selling and administrative expenses in the first quarter of 2003
were $5.7 million as compared to $4.4 million in the same quarter
last year. The increase was primarily due to severance payments
related to personnel reduction and higher advisory fees. Selling
and administrative expenses include sales and marketing efforts,
which have increased to support the introduction of Satmex 6, and
corporate expenses, which have been declining as a result of cost
savings and headcount reductions.

The intellectual property fee was $300,000 dollars in the first
quarter, in line with the first quarter of 2002. Management fees
were not paid in the first quarters of 2002 or 2003.

EBITDA (earnings before interests, taxes, depreciation and
amortization) was $11.2 million in the first quarter of 2003, a
53.9% margin, as compared to $13.0 million during the first
quarter last year, a 57.4% EBITDA margin.

Depreciation and amortization expense remained practically flat,
with $11.9 million in the first quarter of 2003 compared to $11.8
million during the same quarter last year.

    Liquidity and Capital Resources

    As of March 31, 2003, Satmex was in compliance with all debt
covenants.

In the first quarter of 2003, $11.1 million, including $4.5
million of capitalized interest, was invested in the Satmex 6
project. In 2003, capital expenditures are expected to be $92.8
million for Satmex 6 and $6.1 million for operating capex, a
total of $98.9 million. In addition, capitalized interest expense
related to Satmex 6 is expected to be $11.9 million in 2003.

Satmex reduced its backlog in the first quarter of 2003 by $41.5
million as a result of realized revenues and certain contract
terminations that were effected at the end of the first quarter
of 2003. The contract terminations had a greater impact on
backlog than on current revenue generation.

In March 2003, Satmex solicited and received a majority approval
from its Floating Rate Note investors to change its financial
covenants.

Subsequent Events

In April 2003, Satmex received final approval from Coface for its
loan insurance program to support 85% of the cost of its launch
service for Satmex 6.

In April 2003, Satmex received formal approval from the U.S.
Export Import Bank for its loan guarantee program to support 85%
of eligible costs of the Satmex 6 satellite, insurance, ground
equipment and related investments.

About Satmex

Satmex, the leading Mexican satellite operator in the Americas,
owns and operates a satellite system through which it offers
broadcast, telephone and telecommunications services to 40
countries in the region. The Satmex fleet also helps develop
rural areas by offering distance learning, and rural telephony
services to remote locations. And, through its business partners
in the NAFTA region and Latin America, Satmex provides high-speed
connectivity to ISPs and Digital Broadcast Services (DBS), thus
contributing to the integration of Latin America with the rest of
the Continent. Satmex is ISO 9001 certified.

Satmex is a member of the Loral Global Alliance and offers its
customers the advantages of a worldwide network of satellite
capacity, providing global satellite solutions to the needs and
requirements of the Americas. For more information, please visit
the Satmex web site at http://www.satmex.com

About Principia

Principia is a leading Mexican telecommunications company that is
majority owned by certain members of the Autrey family and Mr.
Lauro Gonzalez. In 1997, Principia and Loral Space &
Communications were selected to acquire 75 percent of Satmex in
connection with the privatization of Mexico's fixed satellite
services.

About Loral

Loral Space & Communications is a high technology company that
concentrates primarily on satellite manufacturing and satellite-
based services, including broadcast transponder leasing and value
added services, domestic and international corporate data
networks, broadband data transmission and Internet services. For
more information, visit Loral's web site at www.loral.com.

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


VITRO: Fitch Moves to Rating Watch Negative
-------------------------------------------
Fitch Ratings has placed the senior unsecured foreign and local
currency 'BB' ratings of Vitro, S.A. de C.V. (Vitro) on Rating
Watch Negative. Fitch has also downgraded Vitro's national scale
rating to 'A+'(mex) from 'AA-'(mex). The rating actions reflect
the challenges that Vitro continues to face on its glass
businesses, due to extended weak economic activity, pricing
pressures from automobile manufacturers, import competition and
lower cost absorption. These challenges have pressured cash flows
and profitability, hampering Vitro's progress on debt reduction
and the improvement of credit protection measures.

Vitro's debt remains high, at US$1,576 million at March 31, 2003.
Recent transactions in the local medium-term note and syndicated
loan markets have extended the maturity profile and a portion of
the proceeds have been used to increase Vitro's liquidity
position. At March 31, 2003 Vitro had US$262 million in cash and
marketable securities, the ratio of Net Debt to Last 12 Months
EBITDA was 3.3x and the ratio of Last 12 Months EBITDA to
Interest Expense was 3.0x.

Prolonged economic weakness in Mexico and the U.S., and continued
pressures on cash flows and credit protection measures may result
in further rating actions. Over the near term, Fitch Ratings will
continue to review and evaluate its credit ratings on Vitro.

Vitro is the leading producer of flat glass, glass containers and
glassware in Mexico. The company exports glass products to more
than 70 countries. In 2002, Vitro has sales of US$2.3 billion,
EBITDA of US$403 million, exports of US$586 million and sales by
foreign subsidiaries of US$628 million.

CONTACT:  Giovanna Caccialanza, CFA
          New York
          Phone: +1-212-908-0898

          Guido A. Chamorro
          Chicago
          Phone: +1-312-368-5473

          Alberto Moreno
          Monterrey
          Phone: +528-18-335-7239

          Media Relations:
          James Jockle
          New York
          Phone: +1-212-908-0547



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

BWIA: Submits Required Restructuring Guidelines
-----------------------------------------------
Troubled carrier BWIA submitted its recommendations on regulatory
changes needed to meet the required increase in productivity from
its flight staff to the Civil Aviation Authority before the
deadline, said aviation sources.

The recommendation on the regulatory changes concerning the
revision of work and rest regulations for BWIA's flight staff
were to be handed in by BWIA via the Civil Aviation Authority to
Government on Friday, according to the Trinidad Guardian. The
recommendations are among the requirements for the airline to
avail of bailout funds from the government.

The CAA must approve all regulations for every carrier before
they are implemented.

Public Administration Minister Dr Lenny Saith, chairman of the
Inter-Ministerial Committee said, "There is nothing to suggest
they (BWIA) are not complying with the decision."

BWIA spokesperson Clint Williams said, "Without commenting on the
specific status of any particular item, be assured that
management is working to the timetable given to it by the Board
and Government in all areas."

However, the Aviation Communication and Allied Workers' Union,
representing BWIA flight attendants complained that it was not
consulted about the proposals.

ACAWU president Christopher Abraham, said, "We don't know how
that (changes) will be achieved......Our collective agreement
can't be violated."

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)


CARONI LTD: Workers Threaten Legal Action
-----------------------------------------
Workers of Caroni (1975) Ltd. are seeking an injunction against
the Voluntary Separation of Employment Plan (VSEP) lifted and are
threatening to go to court if their demand cannot be met, reports
the Trinidad Express. The workers also criticized All Trinidad
Sugar and General Workers' Trade Union (ATSGWTU) president
Rudranath Indarsingh and accused him of following the footsteps
of Opposition Leader Basdeo Panday who reportedly said that he
would not agree to anything the government does.

Caroni factory worker Gilbert Chapman said, "We did not tell him
(Mr. Indarsingh) to go and file an injunction. He is just
stopping the process for us to get our money."

More than 500 workers downed their tools in protest of the
injunction. They are trying to convince Mr. Indarsingh to lift
the current injunction.

The decision was issued late last March by the Industrial Court.
It is set to take effect until a resolution is reached as to
whether Caroni Ltd committed an industrial relations offence by
not negotiating the VSEP package with ATSGWTU, the report says.

The workers became concerned when Mr. Indarsingh informed them
that conciliation broke down in court on Monday. However, the
union leader explained that this does not mean that bilateral
discussions between the union and the company.

Mr. Indarsingh told employees that the union was "just seeking
their best interest."

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
          Tel. 868-636-2354
          Fax. 868-636-3372
          E-mail: atsgwtu@opus.co.tt



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

* Uruguay Bondholders Register 90% Swap Offer Participation
-----------------------------------------------------------
About 90% of Uruguay's creditors gave positive responses to the
country's proposal to swap up to US$5.23 billion of its debt,
reducing the possibility of a default.

"The preliminary figures at the close of the swap offer totaled
90 percent," Economy Minister Alejandro Atchugarry. The
government is going to keep the offer open for another five days
to see if the figure goes up.

Uruguay needed an 80% acceptance rate for the swap to be a
success. The country proposes to have maturities of dollar debts
be postponed for five years, while maintaining the same interest
rates.

At the same time, bondholders also approved a proposal under
which Uruguay will redeem 10% of the outstanding Samurai bonds
every year from 2007, reveals Bloomberg. Interest on these bonds
will be 2.5% instead of 2.2, said the government.

Uruguay, which suffered a 10.8% contraction in its economy last
year, has a debt equivalent to 90% of its gross domestic product.
According to Reuters, about half of this debt is in the hands of
private bondholders.



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

PDVSA: S&P Releases Report On Company, Subsidiaries
---------------------------------------------------
Increasing crude oil production and elevated oil prices have
strengthened the financial position of the government of
Venezuela and its national oil company, Petroleos de Venezuela
S.A. (PDVSA), and directly or indirectly led to several ratings
actions, according to a report published Thursday by Standard &
Poor's Ratings Services.

In late 2002, the Venezuelan oil industry was paralyzed by
prolonged labor disruptions that, to a large extent, represented
a political insurrection against the administration of President
Hugo Chavez.

However, since January, momentum has favored the Chavez
administration. Sympathy for striking workers dissipated as
shortages of staples (i.e., gasoline and food) weighed on
Venezuelans.

Perhaps the most important factor in reversing momentum has been
the restoration of crude oil production. Since January,
production has steadily increased, with estimated production
levels now ranging to about 3.2 million bpd (according to reports
by Venezuelan officials) from 2.6 million bpd (according to
analyst consensus).

"The outlook on the ratings on all PDVSA-linked transactions now
is stable, (excluding PDVSA Finance as structured finance ratings
carry no outlook)," said Standard & Poor's credit analyst Bruce
Schwartz. "However, our concerns about political conflict in
Venezuela, which could reignite in the run-up to a possible
referendum on the Chavez administration in August, the structural
imbalances in the Venezuelan economy, and the potential for
government finances to deteriorate are reflected in the
relatively low ratings."

Also, according to the report, the ratings encompass risks
associated with sustaining PDVSA's current output, which is
likely to be challenged by fiscal constraints and the dismissal
of about half of PDVSA's 35,000 workers.

The full report, "Petroleos de Venezuela, Units Cope With
Political, Economic Challenges," is available on RatingsDirect,
Standard & Poor's
Web-based credit research and analysis system. Members of the
media may obtain copies of the full report by contacting Gregg
Stein at (1) 212-438-1730 or by E-mail at
gregg_stein@standardandpoors.com.

ANALYSTS:  Bruce Schwartz, CFA, New York (1) 212-438-7809


PDVSA: To Open 10 Stations In Brazil
------------------------------------
PDV Brasil Combustiveis e Lubrificantes, the Brazilian subsidiary
of Venezuela's state oil company Petroleos de Venezuela S.A.
(PDVSA) will open 10 stations in Brazil under the PDV brand.
The move is part of PDVSA's plans to expand operations in Brazil
through its subsidiary, Citgo International Latin America.

A report by Business News Americas indicates that three stations
out of the planned ten have opened. Two of them are in Belem, the
capital of Brazilian state Para. The other one is located
elsewhere within the state. The remaining seven plants are
expected to open before year end.

Initially, PDV will buy supplies from Brazil's federal energy
company, Petrobras. It would then start importing from Venezuela
once it reached critical mass, the report suggests.

Meanwhile, PDV has acquired a storage and distribution terminal
in Porto Velho, Rondonia state last year to meet the requirements
of the licensing process.




               ***********


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
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Information contained herein is obtained from sources believed to
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