TCRLA_Public/030528.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 28 2003, Vol. 4, Issue 104

                           Headlines


A R G E N T I N A

ARGENTINE BANKS: Govt. Creates Group To Oversee Restructuring
BHN: Standard & Poor's Rates $4.6M of Securities 'raD'
CLISA: $64.2M Net Profit Posted Despite Lower Revenues
COMPANIA MEGA: Standard & Poor's Rates Bonds `raCCC'
FIDEICOMISO HIPOTECARIO: S&P Assigns `raD' To Securities

FIDEICOMISO HIPOTECARIO: Financial Trust Rated `raC' by S&P
GAIN TITULOS: Argentine S&P Assigns `raCCC' To Securities
PECOM ENERGIA: Argentine S&P Rates Various Bonds `raBB'
PECOM ENERGIA: $2.5B Worth of Bonds Rated `raBB' by S&P


B O L I V I A

HUANUNI: Manages to Post $800,000 Profit on Rebound


B R A Z I L

CEMIG: Shares Drop Following Central Bank Hedge Announcement
ELETROPAULO METROPOLITANA: US To Help In Sale Probe
ELETROPAULO METROPOLITANA: Stock Down on Rate Freeze Concern
INTELIG: CEO Steps Down Amid Sale Operations
TELEMAR: May Sell Bonds in Local Capital Markets

VARIG: Boeing Not Taking Equity Stake
VESPER: GVT Looks To Acquire Assets


C O L O M B I A

ASLO: Likely To Be Privatized To Ensure Operations


D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: President Mejia Seeks US-Backed Study


M E X I C O

CFE: To Release Bidding Rules For Petacalco II Contract Mid-June


P E R U

MINERA VOLCAN: BCP Maintains "Reduce" Stock Recommendation
MINERA VOLCAN: Environmental Cleanup Costs Additional $4 Million


V E N E Z U E L A

CANTV: Shares Jump On Resumption of Conversion to ADRs


     - - - - - - - - - -

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

ARGENTINE BANKS: Govt. Creates Group To Oversee Restructuring
-------------------------------------------------------------
Argentina, which is now under a new administration led by Nestor
Kirchner, will create a commission of officials from the central
bank and economy ministry to oversee the restructuring of the
ailing banking system, Bloomberg reports, citing daily Ambito
Financiero.

The new commission, which would include three officials from the
economy ministry and three from the monetary authority, will
require banks that became insolvent last year to re-capitalize
within six months, Ambito Financiero said. The commission may
also allow state banks to buy private bank's assets, Ambito said

The government previously gave banks up to two years to guarantee
solvency after Argentina defaulted in late 2001 on US$95 billion
in debt and devalued the currency.

Ambito suggested that the new commission is likely to complicate
aid negotiations with the International Monetary Fund, which had
asked the government to ensure the central bank's autonomy,
Ambito said.

The government agreed to restructure its banking system, as part
of an agreement with the IMF to defer payment on US$6.8 billion
in debt owed multilateral lenders through August.


BHN: Standard & Poor's Rates $4.6M of Securities 'raD'
------------------------------------------------------
The Argentine branch of Standard & Poor's International Ratings,
Ltd. issued a rating of `raD' to BHN I's financial trust. The
National Securities Commission of Argentina relates that the
rating, issued on Thursday, applies to US$4.5 million of debt
securities, whose maturity date was not indicated.

S&P said that such ratings are issued to obligations that are
currently in payment default, or when the company has filed for
bankruptcy. The rating may also be used when principal or
interest payments are not made on the due date, even if the grace
period has not expired, unless S&P believes that payment will be
made during the grace period.


CLISA: $64.2M Net Profit Posted Despite Lower Revenues
------------------------------------------------------
Argentine infrastructure and public services company Compania
Latinoamericana de Infraestructura & Servicios S.A. (CLISA)
returned to black in the first quarter of the year, reports
Business News Americas. In a statement to the country's
securities regulator CNV, the Company, which is the
infrastructure holding for Argentina's Grupo Roggio, said it had
a net profit of ARS186 million (US$64.2mn) in the first quarter
of the year, against a net loss of ARS123 million in the same
year-ago period.

The profit came despite a 56.8% decline in revenues to ARS239
million, as the country's economic turmoil continued.

Clisa has four operating divisions: mass transportation
management (Metrovias), waste management (environmental
engineering), construction (Benito Roggio e Hijos) and toll-road
management. The Company also has operations in Bolivia, Brazil,
Chile, Ecuador, Mexico, Paraguay and Uruguay.

CONTACT:  CLISA
          Adalberto Campana
          +1-54-11-4959-6857


COMPANIA MEGA: Standard & Poor's Rates Bonds `raCCC'
----------------------------------------------------
The Argentine arm of Standard & Poor's International Ratings,
Ltd. assigned junk ratings to US$700 million worth of corporate
bonds issued by Compania Mega S.A., the country's National
Securities Commission reports.

The bonds, which the NSC described as "programa de ONS autorizado
por AGOyE de fecha 15.12.97", obtained an `raCCC.' The bonds were
classified under `program'.

S&P issued the rating based on the Company's financial situation
as of March 31, 2003. The ratings agency said that the rating
shows that the bonds are currently vulnerable to nonpayment. The
Company's capacity to pay is dependent on favorable economic and
business conditions.


FIDEICOMISO HIPOTECARIO: S&P Assigns `raD' To Securities
--------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned an `raD' rating to some US$98.6 million of financial
trust issued by Fideicomiso Hipotecario, the country's National
Securities Commission of Argentina reveals in its Web site.

The rating, issued when an obligation is in payment default,
applies to the following securities:

-- US$44.6 million of "Clase A1" debt security that matures on
March 25, 2011.

-- US$51.4 million of "Clase A2" debt security that matures on
July 25, 2009.

-- US$3.7 million of "Clase B" debt security that matures on
March 25, 2012.


FIDEICOMISO HIPOTECARIO: Financial Trust Rated `raC' by S&P
-----------------------------------------------------------
Fideicomiso Hipotecario BHN II's financial trust received an
`raC' rating from Standard & Poor's International Ratins, Ltd.
Sucursal Argentina on Thursday. The National Securities
Commission of Argentina describes the debt as "Certifcado de
Participacion". The security, worth more than US$6.9 million,
matures on June 25, 2013. The ratings agency said that the rating
denotes that the debt is currently highly vulnerable to
nonpayment.


GAIN TITULOS: Argentine S&P Assigns `raCCC' To Securities
---------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rates Gain Trust Titulos de Deuda Vto. 2005's financial trust
`raCCC', according to information provided by the country's
National Securities Commission in its Web site.

The rating, issued last Thursday, applies to US$140 million of
debt security, whose maturity date was not indicated. The NSC
described the trust as "fideicomiso financiero."

According to the ratings agency, a `raCCC' rating means that an
obligation is currently highly vulnerable to nonpayment, and is
dependent upon favorable business and financial conditions for
the obligor to meet its financial commitments on the obligation.


PECOM ENERGIA: Argentine S&P Rates Various Bonds `raBB'
-------------------------------------------------------
The Argentine branch of Standard & Poor's International Ratings,
Ltd rated various bonds issued by Pecom Pecom Energia S.A.(Antes
Perez Companc S.A.) `raBB', the National Securities Commission
relates. The rating, based on the Company's financials as of the
end of March 2003, applies to the following bonds; all of which
are classified under "series and/or class":

-- US$4.96 million of "Serie B, emitida bajo el Progr. de Títulos
a Corto y Mediano Plazo de U$S 2.500.000.000", due on May 01,
2006.

-- US$220 million of "Serie C bajo el Programa de Títulos a Corto
y Mediano plazo por U$S 2.500 millones", maturing on July 20,
2005.

-- US$22.8 million of "Serie D, serie vigente emitida bajo el
Progr. de Títulos a Corto y Mediano Plazo por U$S 1.200.000.000
(vencido en Junio de 1998)", due on August 30, 2004.

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

-- US$240.4 million of "Serie G, emitida bajo el Progr. de
Títulos de Corto y Mediano Plazo de U$S 2.500.000.000", due on
January 30, 2007.

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

-- US$349.2 million of "Serie I, emitida bajo el Progr. de
Títulos de Corto y Mediano Plazo de U$S 2.500.000.000", due July
15, 2010.

-- US$75.7 million of "Serie J bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on October 26,
2003.

-- US$286.2 million of "Serie K bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones" due on October 4,
2007.

-- US$55.6 million of "Serie L bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on October 3,
2003

-- US$181.8 million of "Serie M bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on October 4,
2007.

-- US$87.4 million of "Serie N bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on June 09,
2011.

-- US$29.2 million of "Serie O bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on March 15,
2004.

-- US$3.6 million worth of "Serie P bajo el Programa de Títulos a
Corto y Mediano plazo por U$S 2.500 millones", due on May 15,
2004.

-- US$3.9 million of "Q bajo el Programa de Títulos a Corto y
Mediano plazo por U$S 2.500 millones", due on May 25, 2008.

The ratings agency said that the rating, which is based on the
Company's financial position as of March 31, 2003, means that the
obligations have somewhat weak protection parameters.


PECOM ENERGIA: $2.5B Worth of Bonds Rated `raBB' by S&P
-------------------------------------------------------
Some US$2.5 billion worth of corporate bonds issued by Pecom
Energia S.A. (Antes Perez Companc S.A.) obtained `raBB' rating
from Standard & Poor's International Ratings, Ltd. Sucursal
Argentina, according to information revealed by the National
Securities Commission of Argentina.

The rating means that the debt has somewhat weak protection
parameters relative to other obligations in the country. The
Company's capacity to meet its financial commitments on the
obligations is somewhat weak because of major ongoing
uncertainties or exposure to adverse business, financial or
economic conditions, the ratings agency said.

The rating affects bonds, which the NSC described as "Programa de
Títulos a Corto y Mediano Plazo (Progr. original por U$S 1
Millón, ampliación aprobada en Junio del 2002)." The bonds mature
at the end of March this year.

The ratings were issued based on the Company's financial
situation as of March 31, 2003.



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

HUANUNI: Manages to Post $800,000 Profit on Rebound
---------------------------------------------------
Bolivian state mining authority Comibol's decision to intervene
mining company Huanuni last year proved to be a good move. Citing
the country's deputy mining minister Osvaldo Ramirez, Business
News Americas reports that Huanuni reported a profit of
US$800,000 after Comibol intervened the Company last May and
resumed production in July last year.

Comibol formally declared void in November last year the joint
venture agreement for the mine with UK-based RBG Resources and
said it would seek a new partner for Huanuni.

Allied Deals, as RBG was known at the time, took over Huanuni
under the joint venture contract with Comibol in April 2000. The
same company bought the Vinto tin smelter, which is supplied by
the mine, from Comibol for US$14.7 million and a pledge to invest
US$14 million.

But RBG went bankrupt last year after becoming embroiled in a
US$600-million fraud scandal. The court-appointed liquidator
obliged it to sell Vinto to Bolivian mining company Comsur and
the UK government's Commonwealth Development Corporation in June
last year for US$6 million.



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

CEMIG: Shares Drop Following Central Bank Hedge Announcement
------------------------------------------------------------
Shares of Cia. Energetica de Minas Gerais (Cemig), Brazil's
third-largest power generator slipped BRL1.45, or 4.6%, to BRL30,
reports Bloomberg. The stock fell after the central bank said it
may not refinance all the exchange-rate insurance it provides
companies to hedge against currency risk, sending the real lower
and hurting companies like power utilities that have debt in
dollars.

"All or most of the electricity stocks are going down because of
the real," said Oswaldo Telles, an analyst at BBVA Securities in
Sao Paulo. "Most of these companies are tied to the real by their
huge dollar-denominated debt."

As of December, Cemig had BRL2 billion (US$661 million) of debt
due in dollars, he said.

CONTACT:  COMPANHIA ENERGETICA DE MINAS GERAIS
          Luiz Fernando Rolla, Investor Relations
          Phone:  + 011-5531-299-3930
          Fax: + 011-5531-299-3933
          E-mail: lrolla@cemig.com.br


ELETROPAULO METROPOLITANA: US To Help In Sale Probe
---------------------------------------------------
U.S. antitrust regulators will assist their Brazilian
counterparts investigate a Financial Times report that U.S.
energy giant AES Corp. conspired with Enron Corp. to rig an
auction for Latin America's largest utility.

Citing Valor Economico newspaper, Bloomberg relates that Daniel
Goldberg, secretary of economic law in the Brazilian Justice
Ministry, made contact with the U.S. Department of Justice on May
23 and ordered the opening of a preliminary probe of AES Corp.'s
1998 purchase of Eletropaulo Metropolitana SA.

The investigation jointly by the two countries will be the first
to take place under a 1999 antitrust cooperation accord, the
paper reported. Goldberg's department will investigate other
transactions involving AES and Enron in Brazil, the newspaper
said.

Last week, the Financial Times reported that AES persuaded Enron,
once the largest energy trader, not to bid in the auction for
Eletropaulo Metropolitana. Enron agreed not to bid for the
utility in return for other potentially lucrative energy deals
with AES, an investigation by the newspaper found. The alleged
agreement allowed AES to buy Eletropaulo for the minimum bid of
US$1.78 billion.

The Sao Paulo state government auctioned Eletropaulo as Brazil
sought to attract foreign investment by selling government-owned
businesses for cash. Sao Paulo got BRL2.03 billion (then worth
US$1.78 billion), less than analysts expected, for the power
distributor.

AES has launched an internal investigation, the Financial Times
reported. The company does "not tolerate illegal or unethical
behavior in any form," president and CEO Paul Hanrahan told the
newspaper.

Enron denied wrongdoing, telling the newspaper in a statement it
had decided not to bid for Eletropaulo as the auction deadline
approached.

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


ELETROPAULO METROPOLITANA: Stock Down on Rate Freeze Concern
------------------------------------------------------------
Shares of Eletropaulo Metropolitana SA, Latin America's biggest
power distributor, fell BRL2.44, or 8.5%, to BRL26.26, reports
Bloomberg.  Shares fell after Brazil's energy regulator, known as
Aneel, issued a statement saying that the Company may only be
allowed to raise prices by 9.6% in July.

The proposed increase, which compares to the 33% granted to
Empresa Energetica de Mato Grosso do Sul last month, was less
than investors were expecting, said Sergio Tamashiro a utility
analyst at Uniao de Bancos Brasileiros SA.


INTELIG: CEO Steps Down Amid Sale Operations
--------------------------------------------
Intelig, Brazil's second largest operator, lost its CEO while its
controlling shareholders are negotiating to sell the operator,
Business News Americas reports. Jose Carlos Cunha relinquished
his post, leaving Intelig's managing directors to steer the
Company while shareholders - UK-based National Grid (NYSE: NGG)
(50%), US-based Sprint (NYSE: FON) (25%) and France Telecom
(NYSE: FTE) (25%) - all plan to make an exit.

The shareholders are yet to find a replacement for Mr. Cunha.
To date, Brazilian local competitive exchange carrier Global
Village Telecom (GVT), local telephony incumbent Brasil Telecom,
and Intelig management itself have put in bids for Intelig.

Officials from Alcatel - Intelig's principal creditor - have the
final say on any acquisition decisions. Alcatel's officials have
said in the past that Brasil Telecom would be the ideal buyer.


TELEMAR: May Sell Bonds in Local Capital Markets
------------------------------------------------
Tele Norte Leste Participacoes SA, Brazil's biggest phone
company, may sell bonds in the local capital markets, Bloomberg
reports, citing Valor Economico newspaper. According to the
paper, the Rio de Janeiro-based operator plans to sell BRL250
million in two separate bond sales, one maturing in two years and
the other with a three-year maturity.

Telemar neither denied nor confirmed the bond sale plans, Valor
said. The operator plans to raise the funds in the next 40 to 60
days, as the benchmark interest rate declines, Valor reported.

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          terziani@telemar.com.br
          55 21 3131 1208

          Carlos Lacerda
          carlosl@telemar.com.br
          55 21 3131 1314

          Fax: 55 21 3131 1155

          GLOBAL CONSULTING GROUP
          Rick Huber, richard.huber@tfn.com
          Mariana Crespo, mariana.crespo@tfn.com

          Tel: 1 212 807 5026
          Fax: 1 212 807 5025


VARIG: Boeing Not Taking Equity Stake
-------------------------------------
Contradicting an earlier statement, U.S. airplane manufacturer
Boeing Co. said Monday that it is not interested in taking a
stake in troubled Brazilian airline Varig once the carrier
completes a merger with local competitor TAM, reports Reuters.

An earlier report by Reuters indicated that Boeing was open to
the possibility of taking a portion of Varig under a merger
proposal drawn up by Brazil's Banco Fator. The proposal would
turn the debt Varig has with its creditors, such as Boeing, into
shares in the new venture.

But on Monday, Boeing's sales vice-president for Latin America
and the Caribbean, John Wojick, appeared to rule out the equity
stake option.

"We're very interested in working through various difficulties in
this potential merger with both companies and finding a
resolution that works for everyone. But we're not interested in
owning Varig or the merged Varig," said Wojick.

"Boeing is not in the business of purchasing airlines," he added.

Brazil's main airlines, Varig and Tam, said in February they
would study a merger to offset declining demand and the sharp
depreciation of Brazil's currency, the real, which has magnified
the cost of jet fuel, aircraft leasing and spare parts.

The carriers face a joint debt of US$1.3 billion, though flagship
airline Varig is by far the worse off of the two.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br


VESPER: GVT Looks To Acquire Assets
-----------------------------------
Brazilian telephone services company GVT is eyeing some of the
assets of the fixed telephone services company Vesper SA,
according to an article released by NewsEdge. GVT, which is
controlled by the groups Magnum (Europe), IDB (Israel) and
Merrill Lynch (US), aims to acquire Vesper's infrastructure, but
only in some strategic areas.

Earlier this month, Vesper, Brazil's fourth-largest telephone
company, fired 240 employees, or 20% of its total workforce of
1,200 employees. The move came after the Company's controlling
shareholder, US-based CDMA chipset developer Qualcomm, revealed
it would sell its 86% stake in Vesper.

Vesper invested US$2.5 billion in Brazil and expected to cut
costs by using its fixed-line network for wireless services this
year. Qualcomm has contracted Morgan Stanley to coordinate the
sale.

CONTACT:  Julie Cunningham, Sr. Vice President
          Investor Relations of QUALCOMM
          Tel: +1-858-658-4224
          Fax: +1-858-651-9303
          Email: juliec@qualcomm.com



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

ASLO: Likely To Be Privatized To Ensure Operations
--------------------------------------------------
Debt-ridden Colombian public waterworks and waste company Aslo is
likely to be privatized in order to guarantee continued
operations, Business News Americas indicates. The utility, which
serves Lorica city in western Colombia's Cordoba department, owes
electric company Electrocosta COP105 million (currently
US$37,000), but is strapped for funds and may not meet the end-
May payment deadline.

Worse yet, the mayor's office will not bail the Company out, nor
does it appear the 32 neighborhoods that owe COP2.8 billion in
bills will come through with funds in time.

In the event of a privatization, Aslo's clients will become
owners of the utility, according to Lorica mayor Jorge Negrete.



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

BANCO INTERCONTINENTAL: President Mejia Seeks US-Backed Study
-------------------------------------------------------------
Dominican Republic President Hipolito Mejia met with US Treasury
Secretary John Snow to ask the latter to send a team to study the
country's banking system, reports Business News Americas. The
request was made following the recent collapse of Banco
Intercontinental (Baninter), one of the largest banks on the
island.

Already, the President has called for financial support from the
international financial community and is hopeful that a US-backed
study furthers the possibility of an economic rescue package.
Central bank governor Jose Lois Malkun will travel next week to
Washington to follow up on the request for financial assistance
and is confident the funds will be granted given the precedents
set regarding financial assistance provided to other countries in
similar situations in the past.

The Inter American Development Bank has reportedly proposed a
US$500-million credit line to support the Dominican Republic.
Many leading businesspeople on the island believe that an
agreement with the International Monetary Fund would be the best
solution to the country's economic woes and would counteract the
effects of the Baninter financial disaster.



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

CFE: To Release Bidding Rules For Petacalco II Contract Mid-June
----------------------------------------------------------------
Mexico's state power company CFE is likely to release the bidding
rules for an engineering, procurement and construction (EPC)
contract for the US$700-million 680MW Petacalco II generation
project by mid-June, Business News Americas reports, citing
Petacalco's coal terminal manager Francisco Soto de la Vega.

Bids for the project, which is an expansion of the CFE's existing
Petacalco plant in Guerrero state, are expected in December. The
winning bidder will likely be announced in the first quarter next
year.

Construction would take three years.

The CFE is developing the Petacalco II project to meet projected
higher demand from 2007 and to ensure diversity of fuel sources,
since most new generation projects in Mexico are gas-fired, Soto
said. By using coal instead of fuel oil, the operator will save
US$140,000 a day for each 350MW turbine, he added.

Spanish, Japanese and US companies have shown interest in
Petacalco II.



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

MINERA VOLCAN: BCP Maintains "Reduce" Stock Recommendation
----------------------------------------------------------
Peru's Banco de Credito (BCP) is maintaining its "reduce" stock
recommendation for local zinc miner Volcan's series B shares,
reports Business News Americas. Currently, Volcan shares are
worth around PEN0.34. However, BCP analysts believe that the
shares are overvalued given the Company's cash flow, its
worsening financial situation and the fact that international
zinc prices have still not enjoyed a strong recovery, increasing
by just 4.3% so far this year.

Zinc prices currently stand at US$780-790/t. The analysts have
set a share price target of PEN0.21.

BCP explained that a rally in the Volcan B share price in recent
weeks was mainly due to expectations of a new strategic partner
joining forces with the cash-strapped company.

Volcan has reported that zinc miner Paraibuna de Metais, part of
Brazil's Votorantim group, has completed its due diligence of the
Company and an offer should be made within "the next few days."

Peruvian tin miner Minsur and Swiss natural resource group
Glencore are reportedly other interested parties, said the bank's
analysts.

Votorantim Metais (VM), the metals and mining arm of Votorantim,
told Business News Americas recently that it was still evaluating
Volcan but was far from making an offer for the company.

Volcan is formerly Peru's largest zinc producer until hit by
financial difficulties in the light of weak commodity prices.

CONTACT:  COMPANIA MINERA VOLCAN
          Av Gregorio Escobedo
          710 Jesus Mara
          Lima, Peru
          Tel: +51 1 219-4000
          Fax: +51 1 261-9716
          Contact:
          Mr. FMG Sayan (Francisco), Chairperson


MINERA VOLCAN: Environmental Cleanup Costs Additional $4 Million
---------------------------------------------------
Volcan revealed it has spent US$4 million in environmental
projects at its Cerro de Pasco unit in the country's central
region since acquiring the assets from the state's Centromin in
September 1999.

According to Business News Americas, the work was carried out as
part of the Company's environmental cleanup program (Pama) agreed
with the state, and on projects aimed at obtaining ISO 14001
certification.

Volcan operates the Yauli and Cerro de Pasco units in central
Junin and Pasco departments, respectively. The Company posted a
profit of US$100,000 in the first quarter of 2003, compared to
US$800,000 in same-period last year.



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

CANTV: Shares Jump On Resumption of Conversion to ADRs
------------------------------------------------------
CA Nacional Telefonos de Venezuela SA (CANTV), Venezuela's
largest telecommunications company, saw its shares rise 13% to
VEB3500 ($1=VEB1598) each as the local transfer agent resumed
converting them to American Depositary Receipts Monday, reports
Dow Jones.

Banco Venezolano de Credito suspended the conversions after the
government declared capital controls in February. "The trading
resumed after the bank got clarification of the new rules from
lawyers and others involved," Dow Jones quotes an unnamed
official close to the situation.

Traders said they expect the ADRs, worth seven common shares
each, to increase Tuesday when the New York Stock Exchange
reopens after the Memorial Day holiday. The ADRs ended at
US$10.84 each Friday.

CONTACT:  CA NATIONAL TELEFONOS DE VENEZUELA
          Institutional Investor Relations
          Edificio CANTV, Primer Piso
          Avenida Libertador
          Caracas, Venezuela
          Phone: 58212-500-1831
          Fax: 58212-500-1828
          Email: invest@cantv.com.ve
          Web site: www.cantv.com.ve



               ***********


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.

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