/raid1/www/Hosts/bankrupt/TCRLA_Public/030530.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, May 30, 2003, Vol. 4, Issue 106

                           Headlines

A R G E N T I N A

AEROLINEAS ARGENTINAS: Mata Denies Being Summoned By Judge
BANCO DE LA NACION: Government Names Miceli New Chairperson
COMPANIA CRUSADE: Initiates Reorganization Proceedings
MGR: Court Orders "Concurso Preventivo"
MOLINOS RIO: Fitch Removes Rating from Rating Watch Negative

RADIODIFUSORA PAMPEANA: Applies For Reorganization Proceedings


B R A Z I L

ELETRONET: Creditors Get Green Light To Seize AES Shares
IPQ: Renegotiating $320M in Debt
TELEMAR: To Acquire Oi


C O S T A   R I C A

ICE: Central Bank Approves Plan to Issue $40M in Bonds


M E X I C O

GRUPO ELEKTRA: Moody's Takes Various Rating Actions
GRUPO IUSACELL: Vodafone Considers Making An Exit
GRUPO TMM: Provides Update On Legal Proceedings
GRUPO TMM: KCS Responds to Bondholder Developments
PEMEX: Sells $750M in Bonds


N I C A R A G U A

ENITEL: Govt. Resumes Selection Process To Complete Privatization


T R I N I D A D   &   T O B A G O

BWIA: Caricom Heads Support Calls For Single Regional Carrier
BWIA: Government Tries To Save BWIA From Creditors
BWIA: Few Customer Cancellations Despite Bankruptcy Threat
BWIA: Continues To Service Flights Despite Fewer Planes
CARONI LTD.: Accused of 4,499 Violations


V E N E Z U E L A

BANCO BANESCO: Moody's Revises BFSR, FC Deposit Ratings Outlook
BANCO DE VENEZUELA: Moody's Changes BFSR Outlook
BANCO DEL CARIBE: Moody's Changes Outlook on FC Deposit Ratings
BANCO MERCANTIL: Moody's Changes Outlook on Ratings to Stable
BBVA BANCO PROVINCIAL: Moody's Revises Ratings Outlook

     -  -  -  -  -  -  -  -

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

AEROLINEAS ARGENTINAS: Mata Denies Being Summoned By Judge
----------------------------------------------------------
Antonio Mata, the chairman of the Spanish-run Aerolineas
Argentinas, denied reports he was summoned by an Argentine judge
to testify in court in light of the fraud allegations leveled
against him and other Aerolineas executives by one of the
airline's creditors.

Mata gave a press conference in which he claimed he had not
received any official summons from the judge. He said there is a
campaign against Aerolineas in the media.

He also affirmed that lawyer Luis Rizzi, claimant in the lawsuit,
worked for the airport concessionaire Aeropuertos Argentina 2000
(AA2000) and that the company had transferred him, at no cost,
part of the ARS9 million Aerolineas debt to AA2000.

The executive conceded that the court has disregarded all the
claims filed by Rizzi and that the term for impugning the
restructuring proceeding expired in 2002.

Sources from AA2000 admitted the transfer of debt rights to Rizzi
but denied his being their employee and said the lawyer was a
former airline manager.

Rizzi accused Aerolineas of having paid, through firm Air Comet,
the debt under restructuring to ABN Amro Bank, Citibank and BBVA
with a only a 40% cut, while it applied a 60% reduction for the
rest of the creditors.


BANCO DE LA NACION: Government Names Miceli New Chairperson
-----------------------------------------------------------
Argetina's largest government-owned bank, Banco de la Nacion, has
a new chairperson. El Cronista reports that the government
appointed economist Felisa Miceli for the post. Miceli has held
positions with Buenos Aires provincial bank Bapro and consultancy
Ecolatina, the report reveals.

The government may seek to sell 10% of Banco de la Nacion but
wants an outside consultant to audit the bank first prior to the
sale.  Interested companies have until July 17 to present bids to
audit Banco de la Nacion.

The audit is part of an agreement with the International Monetary
Fund to defer certain loan payments.


CONTACT:  Banco de la Nacion Argentina
          Bartolome Mitre, 326
          1036 Buenos Aires, Argentina
          Phone: +54-11-4347-6000
          Fax: +54-11-4347-8078
          Home Page: http://www.bna.com.ar/
          Contacts:
          Enrique Olivera, President
          Adolfo Martin Prudencio Canitrot, Deputy VP


COMPANIA CRUSADE: Initiates Reorganization Proceedings
------------------------------------------------------
Buenos Aires Court No. 9 ruled that Argentine plastic producer
Compania Crusade S.A., under case no. 30699021527, be placed
under receivership.

A report from Infobae relates that Mr. Mario Eduardo Guimpel is
the assigned receiver.

Deadline for verification of claims is June 30, 2003. The
informative assembly is on May 14, 2005.

CONTACT:  Mario Eduardo Guimpel
          Parana 768
          Buenos Aires


MGR: Court Orders "Concurso Preventivo"
---------------------------------------
The National Commercial Court of First Instance, under Dr.
Gerardo Vasallo, ruled that M.G.R. Sociedad Anonima be put under
"concurso preventivo".

The Company's case, no. 30596165644, is under Secretary No. 9,
Dr. Valeria P‚rez Casado at Avda. Roque Saenz Pena 1211, 8o Piso,
Buenos Aires.

Estudio Soto Torresin was assigned receiver. He can be contacted
at the address:

          French 2394,
          Piso 7o `B'
          Buenos Aires

Deadline for verification of claims is June 13 2003. Informative
assembly will be on March 9, 2004.

CONTACT:  MGR SOCIEDAD ANONIMA
          Calle Austria 2007
          Piso 6o `A'
          Buenos Aires


MOLINOS RIO: Fitch Removes Rating from Rating Watch Negative
------------------------------------------------------------
Fitch Ratings has removed the Rating Watch Negative on the 'CC'
senior unsecured local currency rating and on the 'B-' rating on
the senior secured export notes (SENs) of Molinos Rio de la
Plata, S.A. (Molinos).

The rating action reflects Molinos' ability to earn dollar-based
revenues through export sales, which in 2002 reached US$306
million (or 51% of total revenues) compared to US$153 million (or
25% of total revenues) in 2001. In the domestic market, Molinos
has coped with the economy crisis by introducing lower-priced
product lines, tightening credit policies and gradually
increasing prices for existing product lines, maintaining its
leadership position in domestic branded-food products.

In April 2003, Molinos obtained a US$60 million loan facility
from the International Finance Corporation, one out of only two
facilities granted by the institution in Argentina since the 2001
devaluation. Proceeds will be used to fund pre-export financing.

Molinos' ratings continue to be constrained by the difficult
economic and operating environment in Argentina, weak domestic
demand, difficulty to pass cost increases onto consumers and high
risk of political interference. The ratings also reflect the
volatility of international oilseed prices, which affect Molinos'
export revenues, and the company's foreign currency exposure
resulting from its mostly dollar-denominated debt.

Molinos is Argentina's largest branded food products
manufacturer. The company produces a wide range of packaged foods
for domestic consumption, including bottled oil, margarine,
pasta, premixes, packaged flour, yerba mate, rice, cold cuts and
frozen foods. Molinos is also a large exporter of processed
sunflower seed oil and Argentina's main exporter of bottled oil.
The company's controlling shareholder is the Perez Companc Family
Group.


RADIODIFUSORA PAMPEANA: Applies For Reorganization Proceedings
--------------------------------------------------------------
Radiodifusora Pampeana S.A. applied for reorganization
proceedings, "concurso preventivo", reports Infobae. The
Company's case, no. 33642025169, is being handled by Secretary
No. 21 of Buenos Aires.

Court No. 11 of Buenos Aires has assigned Mr. Hugo Adriano
Zaragoza as receiver for the Company.

The deadline for verification of claims is June 25, 2003. The
informative assembly will take place on March 31, 2004.

CONTACT:  Mr. Hugo Adriano Zaragoza, receiver
          Cordoba 1318,
          Buenos Aires



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

ELETRONET: Creditors Get Green Light To Seize AES Shares
--------------------------------------------------------
Judge Ellen Garcia of the Rio de Janeiro state court granted
approval to a request made by the creditors of bankrupt broadband
services provider Eletronet SA to seize shares owned by AES
Bandeirante Empreendimentos, a unit of AES Corp., in two of
Brazil's largest power companies, reports Dow Jones.

Eletronet's creditors, through bankruptcy administrator Isaac
Zveiter, filed the request in an attempt to get some of their
cash back after AES, which controls Eletronet, refused to pay its
debts.

The decision gives creditors permission to seize about BRL550
million in common and preferred stocks in Eletropaulo
Metropolitana and Companhia Energetica de Minas Gerais (Cemig).

According to a court official, Judge Garcia also ruled in favor
of an injunction to block the sale process of preferred and
controlling shares in Eletropaulo currently underway.

If the judge's decision is maintained, the shares will likely be
sold in an auction to guarantee payment to Eletronet's creditors.

Dow Jones recalls that in late April, federal electricity holding
Centrais Eletricas Brasileiras (Eletrobras) initiated bankruptcy
proceedings in Eletronet. Eletrobras held AES responsible for
BRL550 million in debt Eletronet owes to its creditors, and
ratified a previous decision expelling AES from Eletronet's
board.

Eletrobras took a 49% stake in Eletronet in 1999 and auctioned
off the majority interest to sole bidder AES. AES offered the
US$155 million minimum price for its stake and committed to make
its purchase payment in several installments over four years,
with the funds treated as paid-in capital to Eletronet to help
fund construction of the network.

Last August, AES missed a BRL13 million capital payment to
Eletronet and had its appointed representatives expelled from
Eletronet's board. Eletrobras took control of the Company's
management, but the capital structure remained.


IPQ: Renegotiating $320M in Debt
--------------------------------
Ipiranga Petroquimica (IPQ) executives revealed that the
Brazilian petrochemicals company is renegotiating US$320 million
in debt, out of total debt of US$500 million, relates Business
News Americas.

The restructuring should allow IPQ, which posted a net loss of
BRL610 million in 2002, to meet commitments on the remaining
US$180 million of debt that has not been included in the
restructuring.

The US$320-million debt renegotiation follows a successful
renegotiation of US$125 million in loans with the International
Finance Corporation (IFC) and German development bank KfW,
postponing payment in principal by two years, until July 2006.

Citing IPQ planning and finance manager Roberto Fernandes,
Business News Americas reports that the negotiations with IFC and
KfW required the Ipiranga group to capitalize its petrochemicals
unit as a sign of its commitment to the Company.

The Ipiranga group will put up at least BRL350 million
(US$116mn), while the other IPQ shareholders, including the IFC,
Germany's Dresdner Bank and Brazil's Bradesco, have rights to buy
up to BRL83 million worth of shares. If they turn down that
right, Ipiranga will step in to buy them up.

This capital injection will be used to pay down US$115 million of
debt, cutting IPQ's monthly payments of interest on loans to
US$2.5 million from US$5 million, IPQ general manager Paulo
Magalhaes said.

Meanwhile, Fernandes revealed that the Company plans to start
talks to renegotiate an US$80-million loan with a syndicate of
six national and foreign banks. IPQ wants to postpone payment of
the loan, which is tied to export financing, for two or three
years.


TELEMAR: To Acquire Oi
----------------------
TELE NORTE LESTE PARTICIPA€OES S.A. ("TNE") and TELEMAR NORTE
LESTE S.A. ("TELEMAR") announced Wednesday:

(a) At meetings held today [Wednesday], the Board of Directors of
TNE approved the sale by TNE, and the Board of Directors of
TELEMAR approved the purchase by TELEMAR, of all shares held by
TNE in TNL PCS S.A. ("Oi"), representing 99.99% of the corporate
capital of that company, as proposed by their respective Boards
of Officers, which were authorized to implement the sale (the
"Transaction").

(b) The purpose of the Transaction is to strengthen the strategic
position of the Telemar Companies and to increase their capacity
for growth by uniting the potential of fixed (TELEMAR) and mobile
(Oi) telephony assets. The benefits arising from the optimization
of TELEMAR's and Oi's operating and support infrastructure and
from the alignment of the two companies' business interests and
strategies will result in more rational use of available
resources, with consequent cost reductions, productivity gains
and better use of the synergies between the companies.

(c) The Transaction was examined through (i) a valuation report
prepared by Ernst & Young to determine the net equity value of Oi
at market price, with a base date of March 31, 2003, as required
under article 256 (II) (b) of Law 6404/76; (ii) studies on the
tax impacts and synergy gains resulting from the Transaction; and
(iii) legal opinions on the legal aspects of the Transaction.

(d) Before the Transaction is implemented, the corporate capital
of Oi will be increased by R$563 million reais through conversion
of debt held by TNE against Oi.

(e) After the above-mentioned capitalization, the sale price was
fixed at R$1.00, which is equal to the net equity value of Oi at
market price on the base date of March 31, 2003, as determined in
accordance with article 256 (II) (b) of Law 6404/76, adjusted to
reflect the capitalization described in item (d) above and Oi's
results as shown on a balance sheet drawn up as at April 30,
2003. Oi's balance sheet, after the above-mentioned
capitalization, shows financial debt of R$4.761 million reais as
at the base date of April 30, 2003.

(f) The investment bank J.P. Morgan advised on the strategic
decision to proceed with the Transaction, as described in items
(b) and (c.ii) above. J.P. Morgan performed an economic valuation
of Oi on a discounted cash flow basis and the Transaction price
stated in item

(e) above is consistent with the valuation performed by J.P.
Morgan.

(g) TNE and TELEMAR shareholders may obtain further details on
the Transaction at Rua Humberto de Campos, no. 425, Rio de
Janeiro, RJ, by calling (55-21) 3131.1315 to schedule a meeting
with Mr. Jos‚ Carlos dos Santos (Investor Relations).

Rio de Janeiro, May 28, 2003.
Marcos Grodetzky
Financial Officer and Investor Relations Officer of
Tele Norte Leste Participa‡oes S.A. and Telemar Norte Leste S.A.

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

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

         Fax: 55 21 3131 1155

         GLOBAL CONSULTING GROUP
         Rick Huber
         Email: richard.huber@tfn.com

         Mariana Crespo
         Email: mariana.crespo@tfn.com
         Tel: 1 646 284 9413

         Fax: 1 646 284 9494

         Website: www.telemar.com.br/ri



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

ICE: Central Bank Approves Plan to Issue $40M in Bonds
------------------------------------------------------
Out of the US$100 million worth of bonds that state electric
power and telecom company ICE requested to issue, only US$40
million was approved by the Costa Rica's central bank, reveals
Business News Americas.

The US$40-million bond will now be structured, administration and
finance director Martin Vindas said. He added that he expects the
issue to be a standard operation, and that ICE will get the
proceeds in 10 weeks.

He also related that the funds will then be invested over the
next eight months or so, and will be used to finance ICE's power
transmission and distribution projects.

Vindas also revealed that ICE is now in talks with the central
bank about the US$60 million balance.

State-owned Banco Nacional offered to issue bonds for the full
US$100mn, newspaper La Republica reported, adding that the
government, the finance ministry and the central bank rejected
the move. An ICE statute holds that only the central bank can
issue bonds on its behalf, Vindas concluded.



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

GRUPO ELEKTRA: Moody's Takes Various Rating Actions
---------------------------------------------------
Moody's Investors Service downgraded the US$275 million senior
unsecured guaranteed notes issued by Grupo Elektra to B3 from B2.
At the same time, the ratings agency downgraded Elektra's
unsecured issuer rating to Caa1 from B3. Furthermore, Moody's
confirmed Elektra's senior implied rating at B2.

The actions end the ongoing review of Grupo Elektra's ratings
started in July 2002 when the Company announced that it would
move its financing business into an unrestricted banking
subsidiary, Banco Azteca.

The confirmation of the senior implied rating indicates that
consolidated enterprise value is being maintained, Moody's said.
The downgrade of the notes reflects the loss of value for
creditors who are no longer guaranteed by this important piece of
the Company's business, and the effective subordination of those
obligations with respect to the income and assets of the banking
subsidiary. Obligations of the bank, including deposits and
interbank borrowings, have first claim on the bank's assets and
income stream, Moody's explained.

The rating outlook is negative, reflecting near term concerns
about the potential impact of challenges faced by Azteca Holdings
(an affiliated entity which owns TV Azteca) on Grupo Elektra,
including the confidence sensitivity on Banco Azteca's funding,
as well as the longer term uncertainties about the guarantor
group's cash flow generation, Moody's added.


GRUPO IUSACELL: Vodafone Considers Making An Exit
-------------------------------------------------
Vodafone, a UK-based mobile operator, indicated that it is likely
to dispose of its 34.5% ownership in the ailing Mexican operator
Iusacell, says Business News Americas.

"It is likely that Iusacell will require additional funding in
order to grow its operations. However, there is no assurance that
such funding could be obtained at all or, if obtainable, on terms
which would be acceptable to Iusacell," the UK company said.

Vodafone took impairment charges of US$792 million for the year
ended March 31, 2003 related to its interests in Iusacell and
Japan Telecom.

The other majority shareholder of Iusacell is US-based Verizon
with 37.2%.

On Tuesday, Standard & Poor's lowered its long-term corporate
credit rating on Iusacell to CC from CCC+. The downgrade reflects
continued concerns regarding Iusacell's ability to arrange
funding by June 1, 2003, to pay its US$25 million coupon, and the
expectation that the public debt at Iusacell will be restructured
under distressed terms.

Iusacell has a total debt load of some US$822 million, including
a US$150-million bond due in July 2004 and one for US$350 million
due in June 2006.


GRUPO TMM: Provides Update On Legal Proceedings
-----------------------------------------------
Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A), the largest Latin
American multi-modal transportation and logistics company, on
Wednesday provided an update on certain legal proceedings in
Mexico and the status of its restructuring plan.

Restructuring Process

The growth of Grupo TMM and the acquisition of the Northeast
Railway, today known as TFM, required significant financing
between 1993 and 1996, which was obtained through the issuance of
Yankee Bonds (Notes) in the international capital markets. During
late 2002 and early 2003, the company presented various offers to
holders of its bonds due on May 15th, 2003, in order to extend
the maturity date of the issue through a Bond Exchange.

In light of insufficient consents from bondholders, Grupo TMM
initiated the sales of certain strategic assets in order to
generate the required liquidity.

After more than five months of negotiations with bondholders,
with an equal number of extensions of the company's exchange
offer, and after amending such offers three times with the goal
of encouraging its creditors to grant Grupo TMM the necessary
time to finalize the sale of assets and be able to fulfill its
obligations, the company was unable to obtain the percentage of
support required for the Bond Exchange to be completed on terms
that were commercially reasonable for the company.

Exercising A Legal Right

A recognized legal firm, with previous experience in the matter,
offered to represent the company in seeking protection from
creditors for a one-year period in order to meet its financial
obligations. The Judge of Civil Court Number XIV granted Grupo
TMM an injunction, permitting the creditors of the Company to
only exercise their rights before the same Court.

The company has been notified that the judge who ruled on this
matter was transferred to another Civil Court. The new judge, in
the same Civil Court, issued a new ruling dated May 23rd, 2003,
which revoked and annulled the prior injunction, indicating that
irregularities could have taken place during the presentation of
the lawsuit.

Grupo TMM will not contest the new ruling and will terminate the
professional services of the law firm that represented the
company in these proceedings.

The objective of the requested legal proceeding was to obtain a
one-year period in order to pay the company's creditors and to
honor its financial obligations. The company's efforts will
continue to be focused on preserving its business and providing
its customers with world-class services.

In order to re-initiate the negotiation process with its
creditors, Grupo TMM has engaged Miller, Buckfire, Lewis LLC,
investment bankers with broad international experience in debt
restructuring.

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

CONTACT:  Grupo TMM Company
          Jacinto Marina
          Phone: 011-525-55-629-8790
          E-mail: jacinto.marina@tmm.com.mx

          Brad Skinner
          Phone: 011-525-55-629-8725
          E-mail: brad.skinner@tmm.com.mx

          Luis Calvillo
          Phone: 011-525-55-629-8758
          E-mail: luis.calvillo@tmm.com.mx


GRUPO TMM: KCS Responds to Bondholder Developments
--------------------------------------------------
Regarding recent media coverage related to developments involving
Grupo TMM, S.A. and its bondholders, Kansas City Southern (KCS)
(NYSE: KSU) has the following comments:

-- These developments are not related to KCS or TFM, S.A. de C.V.
(TFM), KCS's affiliate railroad in Mexico.

-- KCS remains firmly committed to creating NAFTA Rail, publicly
announced on April 21, 2003, and to proceeding with the purchase
of TFM once it is approved by the relevant regulatory
authorities.

"We strongly believe the proposed transaction that would create
NAFTA Rail is good for rail shippers in North America, employees
of Kansas City Southern Railway, Texas Mexican Railway and TFM,
and that it will enhance the competitiveness of the North
American railway industry," said Michael R. Haverty, chairman,
president and chief executive officer of KCS.

KCS is a transportation holding company that has railroad
investments in the United States, Mexico, and Panama. Its primary
holding is The Kansas City Southern Railway Company.
Headquartered in Kansas City, Missouri, KCS serves customers in
the central and south central regions of the U.S. KCS's rail
holdings and investments are primary components of a NAFTA
Railway system that links the commercial and industrial centers
of the United States, Canada, and Mexico.

In connection with the proposed transaction, KCS will file
relevant materials with the Securities and Exchange Commission
("SEC"), including a proxy statement soliciting shareholder
approval of certain actions in connection with the transaction.
Shareholders are urged to read the proxy statement, as well as
any amendments and supplements to the proxy statement (if and
when they become available) and any other relevant documents
filed with the SEC, because they will contain important
information about the transaction. Shareholders and investors may
obtain the proxy statement and any other relevant documents free
of charge at the SEC's Internet web site at www.sec.gov.
Shareholders may also obtain free of charge the proxy statement
and any other relevant documents by contacting the office of the
Corporate Secretary at KCS's principal executive offices at (816)
983-1538. Written requests should be mailed to P.O. Box 219335,
Kansas City, Missouri 64121-9335 (or if by United Parcel Service
or other form of express delivery to 427 West 12th Street, Kansas
City, Missouri 64105). Such proxy statement is not currently
available. KCS and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from KCS
shareholders with respect to approval of certain actions in
connection with the transaction. Information regarding these
directors and executive officers and their beneficial ownership
interests in KCS can be found in KCS's proxy statement on
Schedule 14A, filed with the SEC on April 4, 2003, in connection
with the 2003 annual meeting of KCS shareholders. Investors may
obtain additional information regarding the interests of such
participants by reading the proxy statement filed in connection
with the transaction when it becomes available.


PEMEX: Sells $750M in Bonds
---------------------------
Pemex Project Funding Master Trust, a unit of Mexican state oil
company Petroleos Mexicanos (Pemex), reopened its existing 2014
bond sale, adding an additional US$750 million to its coffers on
Wednesday, Reuters reports, citing a market source.

The sale, made in a private placement, sold at a spread of 270
basis points over comparable U.S. Treasuries and had a yield of
6.135 percent and a price of 110.139.

The issue, which was managed by Lehman Brothers and Credit Suisse
First Boston, was a reopening of a US$1 billion deal originally
sold in December of 2002.

The sale is part of Pemex's plan to issue as much as US$3 billion
in bonds this year, mostly in foreign markets, to refinance
existing debt and increase spending on infrastructure in order to
boost production.

The Company has already sold more than US$2 billion worth of debt
in foreign currencies this year.



=================
N I C A R A G U A
=================

ENITEL: Govt. Resumes Selection Process To Complete Privatization
-----------------------------------------------------------------
Nicaragua's government has a new shortlist of investment banks,
as it resumes the selection process to complete the privatization
of fixed line telecoms operator Enitel, reports Business News
Americas.

Carlos Fernandez, the head of Enitel shareholding unit Uretel
said that the shortlist, which includes PNB Paribas, Rothschild,
Santander and Credit Suisse First Boston, already has the
approval of the sale sponsor, the World Bank.

The government expects bidders to submit offers June 20. The
winning bank will be selected June 26-30.

The government had previously pre-qualified Santander and Peru's
Latin Pacific but suspended the selection process because a
member of the selection committee was also working for Latin
Pacific on other projects.

Uretel represents the government's remaining 49% stake in Enitel,
which was partially privatized in 2001. On that occasion the
Megatel consortium, formed by Honduran power company Emce and
Swedish telco Telia Swedtel, won a 40% stake in the operator for
US$33mn. Enitel employees hold the remaining 11%.



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

BWIA: Caricom Heads Support Calls For Single Regional Carrier
-------------------------------------------------------------
CARICOM Secretary General Edwin Carrington joined calls for a
single regional airline, reports the Trinidad Express. He said
that Caricom Heads should take such a decision since it was
painfully obvious that this was the way to go.

During the annual private sector conference of the Caribbean
Association of Industry and Commerce, Mr. Carrington said, "We
hear the governments complain that they do not have control of
the airlines but what I say is if you add the shares owned by the
present governments in airlines and consider what they are
spending to bail out these carriers, then I think they
effectively have controlling interest."

However, Mr. Carrington admits that the formation of a single
regional carrier might be difficult, as Air Jamaica has expressed
its opposition to the idea, although it said that it might share
certain services.

He added that a regional airline will also have to service
Suriname and the Bahamas. He admitted that intra-regional air
transport has not always worked, citing Air Jamaica's failure
with the Suriname route.

Trinidad and Tobago Prime Minister Patrick Manning has led
efforts to form a single carrier out of BWIA and Antigua-based
LIAT as a condition for bail out funds.

Meanwhile, CAIC president Gary Voss is also supporting moves for
a single regional airline. He expressed confidence that private
sector participation in such a venture would be forthcoming as
long as the "right framework was provided".


BWIA: Government Tries To Save BWIA From Creditors
--------------------------------------------------
The government of Trinidad and Tobago obtained a few hours'
extension from the International Leasing Finance Corporation
(ILFC) before the latter seizes five remaining aircraft from
BWIA.

Junior Finance Minister Christine Sahadeo's call suspended that
ILFC's plans to seize the airplanes after BWIA's deadline to pay
passed at 5:00 on Tuesday. The government official convinced the
ILFC officials to go to T&T and negotiate with the government.

The ILFC will meet with the government to discuss BWIA's plight.
Planning Minister Dr Keith Rowley said that if confidence can be
restored in the airline, then this might prevent creditors from
moving in on them.

Meanwhile, BWIA's board is doing its part by hastening its review
on the management team led by CEO Conrad Aleong, says the
Trinidad Express. Mr. Aleong has previously indicated that he is
willing to relinquish his post, if needed, for the airline's
survival.

According to the report, BWIA's debts reach a total of US$100
million. The report said that BWIA owes immediate rent of about
US$4 million to lessors, US$9.1 million in severance, and US$2
million in US taxes, plus US$10 million to the ILFC.

Canadian auditing firm, Zwaig International, has been hired to
review BWIA's financial position, said Mr. Rowley.


BWIA: Few Customer Cancellations Despite Bankruptcy Threat
----------------------------------------------------------
There are few customer cancellations at BWIA despite the
possibility of bankruptcy, the Trinidad Guardian reports, citing
travel agents.

John Rosales, managing director of marketing and development,
Constellation Travel Service, said that there are minimal
cancellations at his company, but there were a number of calls
expressing concern. He added that bookings have been every slow,
despite the start of the summer season when bookings should be
numerous.

Travel Centre managing director Katherine de Gannes-Martin said
there are no cancellations at her firm; however, customers are
hesitant to book on BWIA flights.


BWIA: Continues To Service Flights Despite Fewer Planes
-------------------------------------------------------
British West Indies Airways (BWIA) chief executive Conrad Aleong
said that the airline is continuing its recently launched flights
to Costa Rica, despite having fewer aircraft.

"I think there is a one-hour delay today (on BWIA flights to
Costa Rica), but that's it," said Mr. Aleong, as quoted by the
Trinidad Express yesterday.

BWIA lost two of its Boeing 737s last week after it failed to pay
the International Leasing Finance Corporation for the planes'
leases.

In fact, BWIA's flights on the four Boeing 737s and one Airbus
Industrie A340 it has in service are actually carrying more
passengers. However, he clarified that this does not mean
anything in financial terms, as the airline has fixed costs.

Mr. Aleong added that BWIA is using its existing fleet in
consistent patterns to ensure it continues to service its
scheduled flights.

In the meantime, the ILFC threatens to seize the two remaining
Boeing 737s and the A340 id BWIA fails to pay $5.5 million on
Tuesday.

BWIA's debt to the ILFC is around US$20 million, said Planning
Minister Dr Keith Rowley. The airline has an outstanding debt of
around US$100 million.

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.: Accused of 4,499 Violations
----------------------------------------
The All Trinidad Sugar and General Workers' Trade Union accused
state sugar enterprise Caroni (1975) Ltd. of committing an
industrial relations offense, reports the Trinidad Express.

Douglas Mendes, the union's legal counsel, said that the Company
violated the law 4,499 times for failing to negotiate the
Voluntary Separation of Employment (VSEP) package with the
worker's union.

Section 40 of the Industrial Relations Act states that an
employer must "treat and enter into negotiations" with the
recognized majority union for the purposes of collective
bargaining, says the report.

According to Mr. Mendes, the union cannot negotiate individually,
thus each of the 4,499 VSEP package offers made was an offense.

A five-member tribunal heard the issue at the Industrial Court.
Members of the tribunal are: attorneys Allan Alexander SC,
Reginald Armour and Kerwin Garcia are representing Caroni Ltd.
Dave Cowie and Ashvani Mahabir are also representing the union.

In the meantime, the hearing continues.

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



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

BANCO BANESCO: Moody's Revises BFSR, FC Deposit Ratings Outlook
---------------------------------------------------------------
Moody's Investors Service changed the outlook for the E+ bank
financial strength ratings (BFSR) and Caa1 foreign currency
deposit ratings of Banco Banesco S.A. to stable from developing.

The action, according to the ratings agency, is a direct result
of Moody's change in outlook to stable from developing on
Venezuela's foreign currency ceilings that was announced on May
26.

Moody's said the stable outlook is based on the almost-complete
return to the level of oil production that was experienced at
PDVSA, the state-owned oil company, prior to the December strike
by oil workers.

The stable outlook for the bank's rating incorporates the deep
and potentially long-lasting damage to the country's main source
of foreign currency earnings that has been suffered as a result
of the ongoing restructuring of PDVSA, the foreign currency
exchange controls, as well as an extremely weak operating
environment.


BANCO DE VENEZUELA: Moody's Changes BFSR Outlook
------------------------------------------------
Moody's Investors Service changed the outlook for the E+ bank
financial strength ratings (BFSR) and Caa1 foreign currency
deposit ratings of Banco de Venezuela S.A. to stable from
developing.

The action, according to the ratings agency, is a direct result
of Moody's change in outlook to stable from developing on
Venezuela's foreign currency ceilings that was announced on May
26.

Moody's said the stable outlook is based on the almost-complete
return to the level of oil production that was experienced at
PDVSA, the state-owned oil company, prior to the December strike
by oil workers.

The stable outlook for the bank's rating incorporates the deep
and potentially long-lasting damage to the country's main source
of foreign currency earnings that has been suffered as a result
of the ongoing restructuring of PDVSA, the foreign currency
exchange controls, as well as an extremely weak operating
environment.


BANCO DEL CARIBE: Moody's Changes Outlook on FC Deposit Ratings
---------------------------------------------------------------
Moody's Investors Service changed the outlook for the E+ bank
financial strength ratings (BFSR) and Caa1 foreign currency
deposit ratings of Banco del Caribe S.A. to stable from
developing.

The action, according to the ratings agency, is a direct result
of Moody's change in outlook to stable from developing on
Venezuela's foreign currency ceilings that was announced on May
26.

Moody's said the stable outlook is based on the almost-complete
return to the level of oil production that was experienced at
PDVSA, the state-owned oil company, prior to the December strike
by oil workers.

The stable outlook for the bank's rating incorporates the deep
and potentially long-lasting damage to the country's main source
of foreign currency earnings that has been suffered as a result
of the ongoing restructuring of PDVSA, the foreign currency
exchange controls, as well as an extremely weak operating
environment.


BANCO MERCANTIL: Moody's Changes Outlook on Ratings to Stable
-------------------------------------------------------------
Moody's Investors Service changed the outlook for the E+ bank
financial strength ratings (BFSR) and Caa1 foreign currency
deposit ratings of Venezuelan bank Banco Mercantil S.A. to stable
from developing.

The action, according to the ratings agency, is a direct result
of Moody's change in outlook to stable from developing on
Venezuela's foreign currency ceilings that was announced on May
26.

Moody's said the stable outlook is based on the almost-complete
return to the level of oil production that was experienced at
PDVSA, the state-owned oil company, prior to the December strike
by oil workers.

The stable outlook for the bank's rating incorporates the deep
and potentially long-lasting damage to the country's main source
of foreign currency earnings that has been suffered as a result
of the ongoing restructuring of PDVSA, the foreign currency
exchange controls, as well as an extremely weak operating
environment.


BBVA BANCO PROVINCIAL: Moody's Revises Ratings Outlook
------------------------------------------------------
Moody's Investors Service changed the outlook for the E+ bank
financial strength ratings (BFSR) and Caa1 foreign currency
deposit ratings of BBVA Banco Provincial S.A. to stable from
developing.

The action, according to the ratings agency, is a direct result
of Moody's change in outlook to stable from developing on
Venezuela's foreign currency ceilings that was announced on May
26.

Moody's said the stable outlook is based on the almost-complete
return to the level of oil production that was experienced at
PDVSA, the state-owned oil company, prior to the December strike
by oil workers.

The stable outlook for the bank's rating incorporates the deep
and potentially long-lasting damage to the country's main source
of foreign currency earnings that has been suffered as a result
of the ongoing restructuring of PDVSA, the foreign currency
exchange controls, as well as an extremely weak operating
environment.




               ***********


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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