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

          Friday, June 13, 2003, Vol. 4, Issue 116

                           Headlines

A R G E N T I N A

ACINDAR: Issues Updates on Debt Restructuring Process
BANHAM: Files For "Concurso Preventivo"
CMS ENERGY: Fitch Ratings Issues Comments
EDIFICO TORRES: Declared Under "Concurso Preventivo"
EDITORIAL PLUS: Seeks Court's Nod To Start Reorganization

GAZETA MERCANTIL: Seeks Reorganization
INSTELEC ELECTRONICA: Seeks Court Permission To Reorganize
NICOLAS SAPONARA: Goes Into Receivership On Court's Order
REMEDIAR SA: Seeks Court's OK To Reorganize Itself


B E R M U D A

GLOBAL CROSSING: Court Clears Settlement with Computer Sciences


B R A Z I L

ARACRUZ CELULOSE: Standard & Poor's Affirms Ratings
EMBRATEL: Announces ADR Ratio Change
RBS PARTICIPACOES: Ratings Placed on Watch Negative


C H I L E

EDELNOR: Feller Rate Assigns B+ Rating
ENDESA CHILE: Accuses SEC of Withholding Vital Report


C O L O M B I A

* IMF Completes First Review of Colombia's Stand-By Arrangement


E C U A D O R

PACIFICTEL: FS to Disclose Details of Discussion With Canada Soon


E L   S A L V A D O R

FRANCE TELECOM: Doesn't Have Definite Plans To Sell CTE


J A M A I C A

TELESERVICES JAMAICA: To Be Sold As A Going Concern


M E X I C O

ALESTRA: Extends Deadline for Exchange Offers


P A R A G U A Y

ANDE: Minister Says Bill Unlikely to Become Law


T R I N I D A D   &   T O B A G O

BWIA: Execs Take Pay Cut To Help Airline Qualify For Aid
CARONI LTD: EMBD Executive Reveals Goverment's Plans For Land



U R U G U A Y

* S&P Affirms Uruguay Ratings

     -  -  -  -  -  -  -  -

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

ACINDAR: Issues Updates on Debt Restructuring Process
-----------------------------------------------------
Argentine iron and steel producer Acindar revealed new
information about its debt restructuring process. The Company
said the main banks of the ad hoc committee of its creditors
informed they were pleased with the progress made in the
negotiations so far.

On June 5, 2003, Acindar started to make some payments to its
creditors, as contemplated in its debt restructuring proposal
announced March 25, 2003. The payments will allow the firm to
reduce an important portion of its debt in pesos and to advance
payments of its dollar debt, on account of the future definitive
restructuring. These payments are apart from the reduction
obtained pursuant to the cash tender offer closed on May 29.

The payments are composed of: ARS65.07 million for the
settlement, with reduction, of certain loans in pesos for a total
nominal value of ARS96.2 million; US$21.65 million applied to the
partial cancellation of certain loans in US dollars related to
principal debt that became due November 30, 2001, as well as
accrued interests; US$6.79 million applied to the settlement of
accrued interests on the notes due 2004 (remnant of the cash
tender offer).

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          1609 Boulogne, San Isidro
          E. Zeballos Esq. Uruguay
          Buenos Aires, Argentina
          Phone: +54 11 47198500
          Fax:   +54 11 47198501
          Home Page: http://www.acindar.com.ar/ir/eng/default.htm
          Contacts:
          Lic. Jose I. Giraudo, Investor Relations Manager
          Phone: (54-11) 4 719-8674
          Fax:   (54-11) 4 719-8501 Int. 8674

          Lic. Andrea Dala, Investor Relations Officer
          Phone: (54-11) 4 719-8672
          Fax: (54-11) 4 719-8501 Int. 8672


BANHAM: Files For "Concurso Preventivo"
---------------------------------------
Buenos Aires Court No. 8 under Dr. Atilio Gonzalez received an
application for "concurso preventivo" from plastic products maker
Banham SA.

According to a report from local paper El Cronista, the Company
ceased payments on its debt since November 2002.

Secretary No. 15, under Dr. Roberto Lazaeta assists the court on
the case.

CONTACT:  BANHAM SA
          6153 Ave De Los Constituyentes
          Buenos Aires


CMS ENERGY: Fitch Ratings Issues Comments
-----------------------------------------
Earlier Tuesday, CMS Energy (CMS, senior secured rated 'BB-',
Rating Outlook Negative) closed on the $1.79 billion sale of its
Panhandle Companies (senior unsecured rated 'BBB', Stable) to
Southern Union Co. (SUG, senior unsecured rated 'BBB', Stable).
Under the terms of the purchase agreement, SUG paid $584.3
million in cash plus 3 million shares of common stock, and
assumed $1.166 billion in debt. Net proceeds to CMS of around
$540 million, including SUG stock, were used to repay bank debt
that was maturing in April 2004.

CMS has demonstrated considerable progress on its targeted asset
sales of $900 million during 2003. To date the company has
realized more than $660 million in aggregate proceeds including
the Panhandle transaction, and an additional $116 million is
expected from its Field Services divesture by mid-July. With the
bulk of its 2003 planned asset sales program completed and its
most marketable assets sold, CMS faces a difficult economic and
market environment for the sale of its remaining assets,
primarily its international investments in Latin America, the
Middle East and Asia. Nonetheless, if CMS is successful in all
its planned divestitures, its primary asset will be the ownership
of Consumers Energy Co. (Consumers, senior secured rated 'BB+',
Stable). Fitch's ratings analysis reflects this strong dependence
upon cash flow from the utility, and reduced cash flow from other
sources. Positively, since targeted asset sale proceeds will be
used to pay down CMS' parent debt, pro forma parent company debt
would be reduced to $2.6 billion, if all projected sales are
achieved, versus the current level of approximately $3.1 billion.

The Rating Outlook for CMS remains Negative since there is still
uncertainty regarding CMS' ability to achieve consolidated credit
measures from continuing businesses after divestitures consistent
with the company's current ratings. Fitch notes that near-term
liquidity pressures on the company have been lessened following
the recent completion of $925 million in secured bank financings,
which allow CMS to meet all scheduled debt maturities through
October 2004. However, longer-term stabilization of CMS' credit
quality will be dependent on the timing and execution of its
remaining asset sales program to pay down debt beyond the
required maturities and improve credit metrics.

CMS is a utility holding company whose primary subsidiary is
Consumers Energy, a regulated electric and gas utility serving
more than 3.3 million customers in western Michigan. CMS also has
operations in natural gas pipelines and independent power
production.

CONTACT:  Karen Anderson, +1-312-368-3165, Chicago
          Ellen Lapson, +1-212-908-0504, New York

MEDIA RELATIONS: James Jockle +1-212-908-0547, New York


EDIFICO TORRES: Declared Under "Concurso Preventivo"
----------------------------------------------------
Argentine construction company, Edificio Torres del Centenario SA
was declared "under receivership" by Buenos Aires Court No. 7.

Local news portal Infobae relates that the Company's petition for
"concurso preventivo" was assigned under case number 30659577670
at Buenos Aires' Secretary No. 7.

The Court granted the petition and designated Mr. Gustavo
Lckowictz as receiver.


EDITORIAL PLUS: Seeks Court's Nod To Start Reorganization
---------------------------------------------------------
Editorial Plus Ultra SA is asking an Argentine Court for
permission to reorganize itself, relates Infobae. The Company has
submitted its petition for "concurso preventivo" through case no.
30540579772 at Buenos Aires Court No. 17.

The Court assigned Ms. Marta Virginia Tignanelli as receiver for
the case. The deadline for verification of claims is July 14,
2003.

The receiver is expected to submit the individual reports on
September 8, 2003, while the general report is expected on
October 26, 2003,


GAZETA MERCANTIL: Seeks Reorganization
--------------------------------------
Argentine book maker Gazeta Mercantil Mercusor S.A. is asking
permission from the court to start reorganization proceedings
through case number 30686452855, according to local news portal
Infobae. However, the report did not indicate whether the court
has assigned a receiver or not. The informative assembly will be
on June 17, 2003.


INSTELEC ELECTRONICA: Seeks Court Permission To Reorganize
----------------------------------------------------------
Instelec Electr˘nica SRL applied or "concurso preventivo",
relates local news source El Cronista. The Company, which ceased
paying its dues in April 2002, may then commence reorganization
proceedings upon receipt of the court's approval. Ms. Silvia
Gomez Meana is assigned receiver of the Company.

The case is under the jurisdiction of Buenos Aires Court No. 16,
under Dr. Alfredo Kolliker Frers, and Secretary No. 32 under Dr.
Jorge Yacante. Claims will be verified until September 3, 2003.

CONTACT:  INSTELEC ELECTRONICA srl
          420 Callao Avenue
          Buenos Aires

          Ma. Silcia Gomez Meana.
          1219 Roque Avenue
          Buenos Aires


NICOLAS SAPONARA: Goes Into Receivership On Court's Order
---------------------------------------------------------
Buenos Aires Court No. 17 put mosaic producer Nicolas Saponara e
Hiyos S.A under receivership. According to Infobae, the Company
is asking the Court's permission, through case number
30558717307, to start reorganization proceedings.

The Court has assigned Ms. Maria Fernanda Tynik as receiver. The
deadline for verification of claims is August 19, 2003.

The receiver is expected to submit the individual reports on
October 20, 2003 and the general report on November 18, 2003. The
informative assembly is on April 5, 2004.


REMEDIAR SA: Seeks Court's OK To Reorganize Itself
--------------------------------------------------
Local news portal Infobae relates that health services comapny
Remediar S.A. has filed for "concurso preventivo" at a Buenos
Aires Court.

However, the report did not indicate whether Court No. 22 has
assigned a receiver for the case or not. Creditors are advised
that the informative assembly will be on August 12, 2003.



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

GLOBAL CROSSING: Court Clears Settlement with Computer Sciences
---------------------------------------------------------------
The Global Crossing Debtors obtained the U.S. Bankruptcy Court's
approval of a settlement agreement with Computer Sciences
Corporation.

                          Background

Computer Sciences Corporation is the Global Crossing Ltd.
Debtors' single largest retail customer.  The GX Debtors provide
CSC with a variety of telecommunications services, including
Global Frame Relay, IP Transit, Private Line, conferencing and
voice services.

Since the Petition Date, the GX Debtors' relationship with CSC
has been strained.  In fact, on June 28, 2002, CSC sought to
terminate its contractual relationship with the GX Debtors. Since
that date, the parties have been simultaneously engaged in:

     -- discovery and litigation related to the termination, and

     -- settlement negotiations.

In March 2003, the GX Debtors and CSC agreed to the terms of a
settlement to resolve the issues between them, including an
amendment to their existing contract.

Global Crossing Telecommunications, Inc., is the debtor-entity
that provides telecommunications services to CSC pursuant to that
certain Amended Master Services Agreement, dated November 1,
2001.  Prior to the execution of the MSA, the parties entered
into that certain Master Services Agreement, effective as of
December 15, 2000.  After 10 months of deployment and operation
under the Original Agreement, CSC and GX Telecommunications
mutually agreed to enter into the MSA to facilitate the provision
of additional services to CSC.

The MSA required CSC to spend all of its "Available Spend" on
certain telecommunications services provided by Global Crossing,
up to a $645,000,000 maximum over 12 years. The MSA also
provided, subject to specific terms and conditions, for the
payment of shortfall charges under certain circumstances if CSC
did not meet certain annual targets.  In addition, the MSA
contained a "termination at will" provision which entitled CSC to
terminate the MSA at any time on a no-fault basis after payment
of a $160,000,000 termination charge. The MSA also facilitated
the outsourcing of a portion of CSC's Global Network
to Global Crossing, at CSC's option.

On June 28, 2002, CSC filed a Motion to Modify the Automatic Stay
pursuant to which CSC sought to terminate the MSA.  CSC contended
that the Debtors had materially breached the terms of the MSA by
failing to provide:

       (i) the requisite amount of Network Availability;

      (ii) a network that was "fully redundant"; and

     (iii) the amount of network bandwidth required by the MSA.

The Debtors disputed CSC's factual allegations and maintained
that the Debtors had fully performed all of their obligations
under the MSA.  Both the Debtors and CSC commenced discovery in
advance of litigation on the CSC Motion.  In addition, on
September 30, 2002, CSC filed a proof of claim against GX
Telecommunications' estate for $3,750,000.

Following extensive arm's-length negotiations, the Debtors and
CSC have agreed to the terms of a settlement as well as an
amendment and restatement of the MSA, dated as of March 21, 2003,
and to assume the MSA.

Pursuant to the Settlement, the MSA will be amended to:

       (i) reduce the initial term;

      (ii) revise CSC's minimum purchase commitments;

     (iii) acknowledge that CSC does not desire to proceed with
           the outsourcing of its Global Network to Global
           Crossing by removing the parties' obligations in
           relation thereto;

      (iv) revise the Termination Provision;

       (v) clarify the scope and operation of the provisions in
           the MSA regarding service level objectives and
           guarantees, making them consistent with industry
           standards;

      (vi) clarify CSC's rights to terminate the MSA in the event
           of a failure to comply with the SLAs; and

     (vii) grant mutual releases.

In addition, pursuant to the Settlement, the parties to the MSA
will be able to exercise their rights and remedies under the MSA,
including any contractual termination rights, without further
Court order, provided that all rights and remedies are taken in
accordance with the terms and conditions of the MSA.

The MSA is a complex commercial transaction that involves various
payment and usage requirements on CSC's part.  The most
significant terms of which are:

     A. "Minimum Required Usage" means the minimum amount of
        services that CSC must purchase from the Debtors in each
        year of the Initial Term.

     B. "Actual Usage " means the amount of services actually
        purchased and paid for by CSC.

     C. "Minimum Required Cash Payment" means the minimum
        payments that the Debtors must receive from CSC each
        year.  These amounts are higher than the Minimum Required
        Usage.

     D. "Adjustment Payment" means the amount CSC must pay at the
        end of each year to make up any difference between CSC's
        Actual Usage and the Minimum Required Cash Payment.

     E. "Total Cash Payments" means the total amount of cash that
        the Debtors have received from CSC at the expiration of
        the Initial Term.

The salient terms of the MSA are:

     A. The initial term of the MSA is reduced from 12 years to
        seven years.

     B. The Debtors will assume the MSA, in accordance with
        Section 365 of the Bankruptcy Code.  This assumption will
        become effective on the first day of the first month
        following the Court's entry of a final, non-appealable
        order approving the Settlement.

     C. CSC's purchase and payment commitments during the Initial
        Term are reduced to $151,000,000 which will be payable
        based on this schedule:

                          Minimum
                       Cash Payment   Min. Usage
                       ------------   -----------
           Year 1       $15,000,000   $10,000,000
           Year 2        19,000,000    12,500,000
           Year 3        21,000,000    14,000,000
           Year 4        21,000,000    15,000,000
           Year 5        21,000,000    16,000,000
           Year 6        21,000,000    16,000,000
           Year 7        21,000,000    16,000,000
                       ------------   -----------
           Totals      $139,000,000   $99,500,000

     D. Each year, CSC will pay for services as they are
        purchased. CSC is required to purchase services in the
        amount of the Minimum Required Usage amounts.

     E. If the Actual Usage exceeds the Minimum Required Cash
        Payment in any given year, then the amount that exceeds
        The Minimum Required Cash Payment will reduce the
        Following year's Minimum Required Cash Payment.

     F. At the end of each year of the Initial Term, CSC will be
        required to make an Adjustment Payment to cover any
        shortfall between the Actual Usage and the Minimum
        Required Cash Payments.

     G. The portion of the Adjustment Payment which covers a
        shortfall between the Actual Usage and the Minimum
        Required Usage will be forfeited by CSC.

     H. The portion of the Adjustment Payment which covers a
        shortfall between the Minimum Required Usage and the
        Minimum Required Cash Payments will be credited towards
        services for the following year.  CSC will only be able
        to utilize the Credit after it has met the Minimum
        Required Usage for that year.

     I. If the Total Cash Payments are less than $151,000,000,
        CSC can elect either to:

        1. renew the agreement for an additional four-year term
           with a new Extended Term Commitment amounting to
           $100,000,000 in services plus the amount of the Total
           Shortfall spread equally over the Extended Term; or

        2. pay the difference between $151,000,000 and the Total
           Cash Payments.

     J. The MSA is amended to remove provisions regarding the
        proposed outsourcing of CSC's Global Network and to
        remove the parties' obligations.

     K. The Termination Provision is amended so that CSC may
        terminate the MSA:

        1. for convenience at any time during the Initial Term
           after CSC has paid at least $151,000,000; or

        2. for cause pursuant to the terms of the MSA.

     L. The SLAs contained in the MSA are amended to be
        consistent with industry standards.

     M. After Bankruptcy Court approval of the Settlement, CSC
        agrees to withdraw:

        1. the CSC Motion; and

        2. the Proof of Claim.

     N. CSC waives its rights relating to the alleged breaches of
        the MSA by the Debtors prior to the effective date of the
        MSA.  The Debtors waive their rights relating to any
        claims against CSC, including any failure by CSC to
        achieve its minimum purchase obligations prior to the
        effective date of the MSA.

CSC has agreed that it will waive its right to assert an
administrative claim for damages that result if the Debtors
subsequently reject the MSA.  Rejection damage claims, if any,
will be non-priority, general unsecured claims of the Debtors'
Chapter 11 cases.  The parties reserve their rights with respect
to any claims that may be asserted by either the Debtors or CSC
pursuant to the MSA that do not arise from and are not based on
the rejection of the MSA and CSC reserves its right to assert
that any claims are entitled to be treated as administrative
claims. (Global Crossing Bankruptcy News, Issue No. 41;
Bankruptcy Creditors' Service, Inc., 609/392-0900)



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

ARACRUZ CELULOSE: Standard & Poor's Affirms Ratings
---------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it
affirmed its 'B+' foreign currency and 'BBB-' local currency
corporate credit ratings on Aracruz Celulose S.A. Aracruz is the
world's leading producer of bleached eucalyptus hardwood market
pulp, answering for some 23% of the global supply.

The local currency rating was removed from CreditWatch, where it
was placed June 3, 2003. The outlook is stable. Total debt
amounted to $948 million at March 2003, and is expected to peak
at $1.15 billion in 2004, including guaranteed debt.

"The rating affirmation reflects Standard & Poor's understanding
that Aracruz is able to absorb the investments in Veracel and
Riocell and still present financial ratios that are in line with
the rating category," stated Standard & Poor's credit analyst
Milena Zaniboni. This perception is based on the assumption that
Aracruz will refinance most of the Riocell acquisition with long-
term debt instruments, and that its capital contribution to the
Veracel project will be limited to about $220 million.

Standard & Poor's has continually assessed Aracruz's ability to
remain protected against the idiosyncrasies of the Brazilian
economy as fairly above average, due to the company's focus on
the external market, strong competitive position in the commodity
pulp business as a low cost producer, and strong free cash flow
generation from 2003 on. However, Standard & Poor's also
considers that a stressed environment in Brazil could potentially
curtail the company's financial and operating flexibility in the
medium term, since its ability to sustain cash generation at
current strong levels and to execute adequate investment
decisions to support its long-term growth could be impaired.

Liquidity remains comfortable and is one of the key rating
factors that sustain Aracruz's above-average risk. The company is
expected to fund most of its significant capital investments in
the next three years with long-term debt instruments in line with
the return of the projects. Part of the cash the company had been
building up since the first quarter of 2003 (cash position of
about $500 million in March 2003) is expected to be used in the
acquisition of Riocell, therefore limiting the company's short-
term debt exposure to $200 million to $300 million. Because of
its long track record as an exporter, Aracruz enjoys strong
access to credit lines (though bank lines are not committed in
Brazil), and benefits from a "flight-to-quality" during a
stressed macroeconomic environment.

Aracruz should become free cash flow positive in 2004, and is
expected to use all its free cash in the period of 2003-2006
(some $700 million) to pay-off short-term bank debt as well as to
amortize long-term debt.

Analyst:  Milena Zaniboni
          Sao Paulo
          Phone: (55) 11-5501-8945

          Jean-Pierre Cote Gil
          Sao Paulo
          Phone: (55) 11-5501-8946


EMBRATEL: Announces ADR Ratio Change
------------------------------------
Embratel Participacoes announced that it is implementing a ratio
change of its American Depositary Receipts (ADRs) solely to
comply with the minimum share price (US$1.00) requirement for
maintaining its ADR listing on the New York Stock Exchange. The
ratio change will be in the proportion of 1 ADR = 5000 PN shares
and is expected to be effective as of June 16, 2003. There is no
change in the underlying PN shares.

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


RBS PARTICIPACOES: Ratings Placed on Watch Negative
---------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it placed
its ratings on RBS Participa‡oes S.A. (RBS), including its 'B+'
corporate credit rating, on CreditWatch with negative
implications.

Brazilian-based RBS is a holding company for the RBS Group, which
operates in television and radio broadcasting, newspaper
publishing, and other media businesses. Total debt at the
combined entity (RBS
Participa‡oes and RBS guarantors) as of March 2003, was $158
million.

"The CreditWatch listing reflects RBS' poor operating performance
during the first few months of 2003, and its consequent
undermined ability to deal with its short-term maturities, in a
scenario of still limited credit availability, toughened by a
lackluster outlook for the Brazilian advertising market," stated
Standard & Poor's credit analyst Milena Zaniboni.

The group's results have been affected by increasing costs and
expenses, namely those related to public tariffs, wages, and
taxes, while the Brazilian advertising market has not indicated
any signal of recovery since the deep contraction of 2001, in
fact, deteriorating over the last few months. The comparison with
the first quarter of 2002 is particularly negative as last year's
revenues were boosted by the concentration of the annual
advertising budget of government entities on the first semester.
RBS' last 12 months EBITDA margin fell to 15.4% in March of 2003,
compared to 25.2% in March 2002. Annualized EBITDA-to-interest
coverage ratio has also plummeted to 0.6x in March 2003, from
1.6x one year before. As a result, RBS' consolidated cash
position has been depleted in the last few months - it amounts to
roughly $20 million, down from $34 million in December of 2002.

Ratings stability will depend on the successful resolution of the
upcoming bank debt maturities, amounting to $47 million in the
next 12 months. Simultaneously, a clear improvement of its
profitability measures, with stable EBITDA margins in the 20%-30%
range and EBITDA to interest coverage ratios close to 2.0x, would
be key in determining the company's future viability, even in the
case of a positive refinancing solution. Such financial measures
would depend on the company's ability to better control its costs
and expenses, and also on a significantly more positive
environment for advertising expenditures, both in the TV and
newspapers segments.

The CreditWatch listing will be resolved upon the evaluation of
RBS' operating performance in the coming months, and the
company's capacity to improve its liquidity and financial profile
in light of its short-term refinancing needs.

Analyst:   Milena Zaniboni
           Sao Paulo
           Phone: (55) 11-5501-8945



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

EDELNOR: Feller Rate Assigns B+ Rating
--------------------------------------
Chilean credit rating agency Feller Rate assigned a B+ rating on
the solvency of local generator Edelnor, Business News Americas
reports, citing a Feller statement. The outlook on the rating is
positive.

At the same time, Feller rated Edelnor stock at second class, and
assigned a positive outlook for the rating.

The ratings reflect Edelnor's financial profile, Business News
Americas relates. The Chilean thermoelectric generator Edelnor
suffered a CLP2.85-billion net loss for the first three months of
this year, 49.9% lower than its 1Q02 net loss.

Edelnor's location in Chile's highly competitive and oversupplied
northern grid (SING), as well as demand hinging on the economic
cycle and the uncertainties stemming from Chile's regulatory
framework, also impacted the ratings.

Belgian power company Tractebel and Chile's state copper company
Codelco own Edelnor, which is based in Mejillones in Region II.

CONTACT:  Empresa Electrica Del Norte Grande SA
          Avenida Grecia 750
          Antofagasta, Chile
          Phone: +56 55 248500
                 +56 55 248094
          Contact: Fernando del Sol, Chairman

          Tractebel Energia SA
          Registered Office
          Rua Antonio Dib Mussi, no 366
          Centro
          88015 - 110 Florianopolis - SC
          Brazil
          Phone: +55 48 221-7016
          Fax: +55 48 221-7015
          Home Page: http://www.gerasul.com.br
          Contacts:
          Mauricio Stolle Bahr, Chairman
          Eric L.J. de Muynck, Vice Chairman


ENDESA CHILE: Accuses SEC of Withholding Vital Report
-----------------------------------------------------
Chilean generator Endesa Chile revealed Tuesday that it has
commenced legal proceedings against power regulator SEC.

The suit, according to Business News Americas, alleges SEC of
withholding part of a report by the so-called "good men"
commission (Comision de Hombres Buenos) on Endesa's 570MW Ralco
hydroelectric project.

The commission was created to resolve an impasse that saw the
country's indigenous law protect the people living in the area
and who do not want to sell or trade their land to Endesa for the
project, and the power sector law supporting Endesa.

According to Endesa, the regulator received the commission's
report in November 2002 concerning the cases of 23 families.
However, the SEC failed to notify the Company of the report's
findings concerning 4 indigenous families.

Business News Americas says Endesa considers this to be "an
arbitrary and illegal omission, that disturbs and threatens the
rights of Endesa Chile according to the constitution and the
law."

The report is important to the Company because it would allow
Endesa to obtain the lands occupied by the families through the
payment of the amounts legally agreed upon in the commission's
report, Endesa said.

The families have refused Endesa's offers to buy their land.



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

* IMF Completes First Review of Colombia's Stand-By Arrangement
---------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Wednesday the first review of Colombia's performance
under a two-year, SDR 1.5 billion (about US$2.1 billion) Stand-By
Arrangement, which was approved on January 15, 2003. The
completion of this review enables the release of SDR 193.5
million (about US$274 million) to Colombia, bringing the total
amount available to SDR 580.5 million (about US$822 million). So
far the country has not made any drawings under the arrangement.

Following the Executive Board review of Colombia, Anne Krueger,
First Deputy Managing Director and Acting Chair, said:

"The government of Colombia is carrying out a strong economic
reform program aimed at encouraging faster economic growth and
improving social equity. In particular, the government's program
focuses on bringing the overall public sector deficit down
through a wide range of initiatives, including several important
structural measures such as tax, pension, and labor reforms. A
lower fiscal deficit is essential to reduce gradually the public
debt burden, which in turn will ease pressures on interest rates
and stimulate growth.

"The government is to be commended for its strong commitment to
economic reform. All performance criteria and structural
benchmarks for end-2002 and end-March 2003 have been observed.
This strong policy implementation has already helped to improve
economic performance. The economy showed signs of recovery in the
first quarter of 2003, with a slight decline in unemployment and
renewed access to international capital markets.

"For 2003, the government is committed to reducing the overall
public sector deficit to 2 « percent of GDP, and is prepared to
implement contingency measures if necessary, to achieve this
target. At the same time, the government intends to continue with
key structural reforms, including further steps to strengthen
expenditure management and modernize public administration. The
central bank already raised its main refinancing rate by 200
basis points so far this year and is committed to taking further
measures as necessary to control inflationary pressures.

"Colombia's economic reform program has helped reduce the risks
to the economic outlook. Nonetheless, the authorities will need
to sustain the implementation of the program in order to lay the
basis for a durable recovery," Ms. Krueger stated.

IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772



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

PACIFICTEL: FS to Disclose Details of Discussion With Canada Soon
-----------------------------------------------------------------
Ecuadorian state-owned enterprises Fondo de Solidaridad (FS) will
reveal in the next few days details of the ongoing negotiations
between the government and the Canadian government over a
possible contract to administrate local fixed line operator
Pacifictel.

FS is Pacifictel's sole shareholder and is looking for a foreign
firm to administrate the Company.

Canada's government-run international trade and export
facilitating corporation Canadian Commercial Corporation (CCC) is
the party involved, Business News Americas indicates.

"CCC has been monitoring Pacifictel's needs since 2002 and its
involvement could include a variety of options ranging from
project management to service and support," CCC spokesman John
Spence told Business News Americas, adding that "none of the
parties has made any firm commitments and it is too early to say
what CCC's involvement might be."

According FS chairman Milton Ordo¤ez, the two governments will be
negotiating until July 30, and that the Canadians could loan the
company US$50mn-80mn. However, they would not receive Pacifictel
stock or assets and would be obliged to retain the existing
Pacifictel board.



=====================
E L   S A L V A D O R
=====================

FRANCE TELECOM: Doesn't Have Definite Plans To Sell CTE
-------------------------------------------------------
France Telecom is merely studying a possible sale of its stake in
El Salvador's incumbent fixed line operator CTE Telecom, CTE
chairman Dominique Saint Jean was quoted by local daily El Diario
de Hoy as saying.

Saint Jean's comment came after reports surfaced in May that a
stake in CTE is among overseas interests that France Telecom
plans to sell, according to Business News Americas.

France Telecom is reported to be offloading poorly performing
overseas assets after posting a US$23-billion loss and debt
approaching US$78 billion. But according to Saint Jean, CTE
cannot be said to fall into the `poorly performing overseas
assets' category, as it has an AA rating from credit rating
agency Fitch.

Saint Jean did confirm that France Telecom sees the forthcoming
Central American Free Trade Agreement with the US as a threat.

"The threat is significant because, like many other highly
indebted companies with good assets in the region, such assets
are not getting good enough market valuations to justify
divestment as a means of paying off debt," Eric Meltzer, a
managing director at Philadelphia-based Curtis Securities, told
Business News Americas. "They are better off depending on cash
flow from those assets."



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

TELESERVICES JAMAICA: To Be Sold As A Going Concern
---------------------------------------------------
The Jamaican call center operation, Teleservices Jamaica Limited,
which was placed under receivership last week by the National
Investment Bank of Jamaica, is about to hit the auction block.

The Jamaica Gleaner relates that NIBJ president, Rex James,
announced plans to sell the operation as a going concern. He
further revealed that serious discussions are in progress with
one of three investors who sent in expressions of interest.

"The due diligence process is under way and all the parties
involved have agreed that no details will be divulged at this
time," James said in response to Wednesday Business queries about
the financial status of the information technology firm.

Reports have it that the total injection of public funds amounted
to about $400 million over two years, including $226 million
under the Intec Fund.

Last month, The Gleaner reported that the call center was having
difficulty paying its rent and utilities and was $96 million in
arrears on its interest payments, with the latter charge
originally levelled by Opposition Spokesman on Finance, Audley
Shaw.

However, Wilfred Baghaloo, who describes himself as an agent of
John Lee, the appointed receiver of Teleservices and a partner in
PricewaterhouseCoopers, said they were still examining the
Company's accounts and would not comment on either figure.

"We are still examining the records to establish the exact
quantum of debt," said Baghaloo, adding that NIBJ was not the
only creditor.

But according to James, the Company's financial health was not in
question, and that NIBJ was looking to recoup its total
investment in the failed firm.

"The prospect of full recovery is excellent as a recent valuation
of the entity indicates that the worth of Teleservices is well in
excess of its liabilities," James advised Wednesday Business.

CONTACT:  TELESERVICES JAMAICA
          Montego Bay Free Zone
          P.O. Box 1377
          Montego Bay Freeport
          Montego Bay, Jamaica
          Tel: (877) 906-5667



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

ALESTRA: Extends Deadline for Exchange Offers
---------------------------------------------
Alestra, S. de R.L. de C.V. ("Alestra") announced Wednesday that
the deadline for its outstanding exchange offers, cash tender
offers and consent solicitations has been extended. The offers
will remain open until the new expiration date of June 20, 2003,
unless further extended by Alestra. Alestra is continuing to
negotiate with an ad hoc committee of noteholders regarding the
offers. The extension does not affect the terms of the offers.
Alestra also announced that approximately $144 million principal
amount of its outstanding 12 1/8% Senior Notes due 2006 had
tendered in the offers and that approximately $95 million
principal amount of its outstanding 12 5/8% Senior Notes due 2009
had tendered in the offers.

You may obtain copies of Alestra's prospectus and transmittal
documents for the offers from the Information Agent: D.F. King &
Co., Inc., 48 Wall Street, New York, New York, 10005. Banks and
brokers call collect: (212) 269-5550. All others call toll free:
(800) 549-6697.

This announcement and the cash tender offers, exchange offers,
and consent solicitations which are the subject hereof are not
being made in any jurisdiction in which, or to any person to
whom, it is unlawful to make such announcement and/or cash tender
offers, exchange offers and consent solicitations under
applicable securities laws. The new senior notes may not be sold
nor may offers to buy be accepted prior to the time Alestra has
obtained the necessary authorizations from the Comision Nacional
Bancaria y de Valores de Mexico. This release shall not
constitute an offer to sell or the solicitation of an offer to
buy nor shall any sale of these securities in Mexico or in any
U.S. state or territory in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under
the securities laws of Mexico and any such U.S. state or
territory.

Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a
leading provider of competitive telecommunications services in
Mexico that it markets under the AT&T brand name and carries on
its own network. Alestra offers domestic and international long
distance services, data and internet services and local services.



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

ANDE: Minister Says Bill Unlikely to Become Law
-----------------------------------------------
Paraguay's lower house of congress has approved a bill that
forgives US$14 million in debts owed by electric power customers
to state power company Ande.

The bill, which would pay off the pardoned debts with royalties
from the Itaipu international hydroelectric power plant, now
faces a senate vote, according to Business News Americas.

But even if the bill gets through a senate vote, there's very
little chance that it will become a law.

Paraguay's President Luis Angel Gonzalez will veto the bill,
public works minister Antonio Adam Nill said, adding that passing
through the senate is unlikely.

The proposed law is "irrational, inapplicable and even populist,"
he said. Ande has significant financial commitments for the power
it buys and cannot stop receiving money, he added.



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

BWIA: Execs Take Pay Cut To Help Airline Qualify For Aid
--------------------------------------------------------
Twenty-five executives of national carrier BWIA, who had
previously taken a 5% salary cut last September when the airline
struggled to stay financially afloat, decided to take another pay
cut. This time, the executives agreed to give up as much as 15%.

The Trinidad Express reveals that the executives' decision comes
amid the airline's request for a government bailout. The
government promised to provide BWIA $116.8 million in financial
assistance but has directed the airline to reduce operating costs
to qualify for the money.

On Tuesday, the Trinidad and Tobago Airline Pilots Association
(Talpa) applauded the government's decision to help BWIA recover
from its financial difficulties. Chairman Capt Rory Lewes
recounted that Talpa contributed to employee savings through
salary and work-rule concessions.

Meanwhile, the National Trade Union Centre (Natuc), the umbrella
organization for trade unions, is contending that the
government's call on BWIA to reduce costs through employee wage
cuts is illegal because under the current collective agreement,
no amendments to wage cuts can be lawfully obtained while the
collective agreement is still in effect.

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: EMBD Executive Reveals Goverment's Plans For Land
-------------------------------------------------------------
Uthara Rao, chairman and chief executive officer of Estate
Management and Business Development Company Ltd. (EMBD), revealed
the government's plans for the 77,000 acres of land owned by
Caroni (1975) Ltd., The Trinidad Express relates.

The EMBD is a wholly owned State enterprise mandated to manage
the Caroni lands and to stimulate and facilitate new business
activity.

At a breakfast business seminar at Cara Suites, Claxton Bay on
Tuesday, Rao revealed that some 25,000 acres of the land will be
leased to facilitate the restructured sugar manufacturing company
to meet the requirements of its downsized operations.

The other 55,000 acres will be used for investment in various
developmental projects, such as heavy and light industrial
development, residential/commercial site development and
agriculture in Central and Couth Trinidad.

Rao said the lands were in the process of being transferred to
the State.

In addition, Rao revealed that Moore Ammonia USA, a United
States-based company, has indicated deep interest in establishing
a company called Moore Ammonia T&T Ltd.

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



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

* S&P Affirms Uruguay Ratings
-----------------------------
Standard & Poor's Ratings Services said Wednesday that it
affirmed its 'B-' long-term and 'C' short-term sovereign credit
ratings on the Oriental Republic of Uruguay. The outlook on the
long-term ratings is stable. At the same time, Standard & Poor's:

-- Affirmed its 'B-' rating on the new bonds issued on May 29,
2003, at the conclusion of the republic's debt exchange, and

-- Affirmed its 'B-' rating on internationally placed debt
included in, but not tendered by bondholders during, the recent
debt exchange period that ended May 29, 2003.

-- Withdrew its 'B-' ratings on Uruguay's domestically placed
securities that were included in, but not tendered by bondholders
during, the recent debt exchange and are now not rated (NR).

This action follows the June 10, 2003, announcement by Uruguay's
central bank that the domestic portion of the debt exchange for
all untendered securities included in the original offer was
reopened and extended indefinitely. All of this domestically
placed foreign-currency-denominated debt was issued under
Uruguayan law in bearer form.

Standard & Poor's views the reopening of the domestic debt
exchange as part of the same default that led it to lower its
ratings on Uruguayan issues included in the exchange to 'D' on
May 16, 2003. Standard & Poor's raised its ratings on the
untendered, or nonexchanged, debt to 'B-' from 'D' on June 2,
2003, after the exchange concluded and the government resumed
payment on domestically placed nonexchanged debt in accordance
with the terms of the original issues. The June 10, 2003,
reopening of the domestic debt exchange recognizes that much of
the untendered debt (1.3% of the domestic debt in the original
offer) may be included in estates or may be tied up in protracted
communications between the paying agent and beneficial owners.

Analyst:  Lisa M Schineller
          New York
          Phone: (1) 212-438-7352

          John Chambers, CFA
          New York
          Phone: (1) 212-438-7344



               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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