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          T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, June 23, 2003, Vol. 4, Issue 122

                           Headlines


A R G E N T I N A

BACS I: Local Fitch Ratings Issues Financial Trust Junk Status
BANCO RIO: $898.8M Debt Refinancing Delays Pending Maturities
BANCO RIO: Commercial Paper Gets Prime-1
BHN I: Fitch Rates Participation Certificate `B(arg)'
BHN II: Fitch Rates Various Debt Securities `BBB(arg)-'

BHN III: Fitch Assigns `B(arg)-' Rating to Debt Securities
DIRECTV LA: Caracol TV & RCN Get FIFA 2003 Rights
DISCO: Standard & Poor's Argentina Rates Bonds `raB'
GRUPO GALICIA: Shares Up on Developing Repatriation Announcement
METROGAS: S&P Places Default Ratings on Corporate Bonds

PAMI: President to Authorize Pension Intervention
SOCIEDAD COMERCIAL: SCP Allows Explore To Take 81% Stake of CGC
TELEFONICA DE ARGENTINA: S&P Assigns Ratings to Various Bonds
TGN: Various Bonds Get Default Ratings From Fitch Argentina


B E R M U D A

TYCO INTERNATIONAL: Suit Accuses Chief Of Misleading Investors


B R A Z I L

AES CORP.: Board, Restructuring Meeting Slated for Tuesday
* Brazil Refinancing Through $10B in Debt Securities & Warrants


C H I L E

COEUR D'ALENE: Receives Key Approval for Kensington Gold Project


C O S T A   R I C A

ICE: Reduces 2004-2005 Investments to Balance Budget


E C U A D O R

ECUADORIAN BANKS: AGD Uncovers Fraudulent Practices
PACIFICTEL: Suptel Requests Intervention
PETROECUADOR: Lifts Force Majeure; Production To Normalize


M E X I C O


GRUPO IUSACELL: SCT Seeks Sale Details from Executives
GRUPO MEXICO: Shares Fall After Goldman Analyst Downgrades Stock
* Mexico: Notice of Redemption to Bond Holders


P E R U

SIDERPERU: Management Meets With Creditors to Discuss Plan


T R I N I D A D   &   T O B A G O

BWIA: Government Still Analyzing Labor Cost Reduction Plan


V E N E Z U E L A

CANTV: Council of Ministers to Review Potential Rate Increase
* Venezuela: Notice to Shareholders of Bonds Due in 2007


     - - - - - - - - - -

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

BACS I: Local Fitch Ratings Issues Financial Trust Junk Status
--------------------------------------------------------------
Financial Trust called BACS I received junk ratings from Fitch
Argentina Calificadora de Riesgo last Friday. According to the
National Securities Commission of Argentina, the ratings agency
issued a `CC(arg)' rating to US$12.16 million worth of debt
securities described as "Titulos de Deuda Clase B Serie 2001-1".

Fitch also rated `C(arg)' US$8.7 million worth of "Certificados
de Participacion Serie 2001-1", and classified as "Particiation
Ceritificate."

Both ratings indicate that the debts have extremely weak
protection parameters relative to other issues in the country.
However, the second set of debt mentioned has weaker protection
parameters that the first one.


BANCO RIO: $898.8M Debt Refinancing Delays Pending Maturities
-------------------------------------------------------------
Banco Rio de la Plata SA, the Argentine subsidiary of Spain's
Banco Santander Central Hispano, concluded the refinancing of
US$898.8 million of debt, reports Reuters. According to an
unnamed bank source, the bank extended maturities an average of
4.2 years on debt set to come due within the next 12 months.
Banco Rio refinanced its debt through offers ranging from
immediate payments to the issuance of new bonds that mature in
December 2009, the source said.

In a statement, the bank said that it had negotiated extended
maturities on US$544.8 million worth of debt owed to 45
international financial entities, which accounts for 98.4% of its
total debt to banks. It also postponed payments on US$354 million
owed to controlling shareholder Banco Santander.

"This agreement enables Banco Rio to get new lines of financing
for projects related to international trade," the statement said.

The refinancing process was approved by the Argentine Central
Bank, the statement said.

Banco Rio is one of the second largest private sector banks in
Argentina, with total assets of US$4.49 billion as of year-end
2002.

CONTACT:  Banco Rio de la Plata SA
          Bartolome Mitre 480
          1036 Buenos Aires
          Argentina
          Phone: +54 11 4341 1000
          Home Page: http://www.bancorio.com.ar
          Contacts:
          Jose Luis Enrique Cristofani, Chairman
          Claudio Alberto Cesario, Vice Chairman


BANCO RIO: Commercial Paper Gets Prime-1
----------------------------------------
Moody's Investors Service assigned a Prime-1 rating to the
commercial paper issued by Banco Rio de la Plata SA through its
US$175.35 million fully supported commercial paper program, the
ratings agency said. The bank will issue commercial paper notes
and use proceeds for working capital and trade purposes.

Banco Santander Central Hispano, S.A., New York Branch (A1/P-1/B-
) ("SCH") has issued an irrevocable direct-pay letter of credit
that provides full support for the payment of commercial paper
notes upon maturity.

Moody's said the rating on the CP notes is based primarily on
BSCH's Prime-1 rating.


BHN I: Fitch Rates Participation Certificate `B(arg)'
-----------------------------------------------------
A total of US$4.6 million worth of "Certificados de
Participaciones" of Financial Trust BHN I is rated B(arg) by
Fitch Argentina Calificadora de Riesgo last Friday. The debt is
classified as "Participation Certificate", but the maturity date
was not indicated.

According to the ratings agency, the issued rating is given to
issues that have significantly weak protection parameters
relative to other issues in the country.


BHN II: Fitch Rates Various Debt Securities `BBB(arg)-'
-------------------------------------------------------
Numerous issues of debt securities by financial trust BHN II were
rated `BBB(arg)', with negative implications, by Fitch Argentina
Calificadora de Riesgo. The rating, issued last Friday, shows
that the debt securities possess an adequate credit risk relative
to other obligations in Argentina. Changes in the economic and
business conditions might affect the obligor's capacity to make
payments on these securities.

The National Securities Commission of Argentina relates that
US$44.5 million of "Serie 1997-1 Clase A1" that matures on March
25, 2011, received the ratings. Another US$44.5 million of debt
securities, this time with the description "Titulos de Deuda
Hipotecarios Clase A1" received the same ratings, as well as
US$51.4 million of "Titulos de Deuda Hipotecarios Clase A1".


BHN III: Fitch Assigns `B(arg)-' Rating to Debt Securities
--------------------------------------------------------
Debt securities of financial trust BHN III were rat4d `B(arg)-'
by Fitch Argentina Calificadora de Riesgo S.A. said the National
Securities Commission of Argentina. The rating, which was given
last Friday, indicates that the concerned debt security has an
extremely weak credit risk relative to other ratings in the
country.

The affected securities are described as "Serie 1997-2 Clase",
with undisclosed maturity date and worth a total of more than
US$5 million.


DIRECTV LA: Caracol TV & RCN Get FIFA 2003 Rights
-------------------------------------------------
DIRECTV Latin America, LLC announced today that it has granted,
through its affiliate in Colombia, the broadcast rights
exclusively for open television in Colombia to Caracol Televisi›n
S.A. and RCN Television S.A. of the 16 games of the FIFA
Confederations Cup France 2003.

Caracol and RCN will broadcast the opening and closing
ceremonies, along with all the matches of the tournament that
will begin in Paris on June 18 and end on the 29th.  Besides the
Colombian team, other countries participating include Brazil,
France, Cameroon, New Zealand, Turkey and the United States.

"We are very pleased to be able to offer all of the games of the
FIFA Confederations Cup France 2003 to soccer fans in Colombia
via open television through Caracol and RCN.  This tournament is
known for its display of technological advances and the quality
of its content and production," said Antonio B. Barreto, senior
vice president of Programming and Marketing for DIRECTV Latin
America.  "Also, DIRECTV customers in Colombia will be able to
enjoy an exceptional coverage of the games with digital image and
an unparalleled production."

As part of the same agreement, DIRECTV Latin America, LLC,
through its affiliate in Colombia, has also granted Caracol and
RCN the broadcast rights exclusively for open television of some
of the games of the upcoming FIFA matches: FIFA World Youth
Championship UAE 2003 and the FIFA U-17 World Championship
Finland 2003.  DIRECTV will be the only television service to
broadcast all of the games for these two championships.

DIRECTV will be the only pay television service in Colombia where
viewers will be able to see all of the games of the Colombian
team during the FIFA Confederations Cup France 2003.

DIRECTV Latin America states that the rights granted to Caracol
and RCN are exclusively for over the air broadcast television and
as such, all cable and satellite television operators in Colombia
should abstain from distributing these games whether live or in
replays.

Any unauthorized appropriation, use, broadcast, replay or
reproduction of the corresponding signal of the aforementioned
events by any cable or satellite operator will result in legal
actions against those responsible and the act will be reported to
the corresponding authorities for the immediate halt of such
practices and for the appropriate sanctions to be carried out.

DIRECTV is the leading direct-to-home satellite television
service in Latin America and the Caribbean.  Currently, the
service reaches approximately 1.6 million customers in the
region, in a total of 28 markets.  DIRECTV is currently available
in: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto
Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean
island nations.

DIRECTV Latin America, LLC is a multinational company owned by
DIRECTV Latin America Holdings, a subsidiary of Hughes
Electronics Corporation; Darlene Investments, LLC, an affiliate
of the Cisneros Group of Companies, and Grupo Clarin. DIRECTV
Latin America has offices in Buenos Aires, Argentina; Sao Paulo,
Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto
Rico; Fort Lauderdale, USA; and Caracas, Venezuela.  For more
information on DIRECTV Latin America visit
http://www.directvla.com

Hughes Electronics Corporation, a unit of General Motors
Corporation, is a world-leading provider of digital television
entertainment, broadband satellite networks and services, and
global video and data broadcasting.  The earnings of HUGHES are
used to calculate the earnings attributable to the General Motors
Class H common stock (NYSE:GMH). (DirecTV Latin America
Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


DISCO: Standard & Poor's Argentina Rates Bonds `raB'
----------------------------------------------------
A total of US$250 million of corporate bonds were rated 'raB' by
Standard & Poor's International Ratings, Ltd. on Friday. The
rating agency, which determined the rating according to the
Company's finances as of September 30, 2002, said that the rating
shows that the bond have weak protection parameters relative to
other issues in Argentina.

The National Securities Commission of Argentina decribed the
concerned bonds as "Obligaciones Negociables de Mediano Plazo,
autorizadas por AGO de fecha 24.10.97". The bonds would come due
on May 15, 2008.


GRUPO GALICIA: Shares Up on Developing Repatriation Announcement
----------------------------------------------------------------
Shares of Grupo Galicia SA, Argentina's second-largest banking
group, rose 2 centavos, or 1.6%, to ARS1.28, reports Bloomberg.
Argentina's Finance Secretary Guillermo Nielsen said the
government plans to disclose Sept. 23 options for holders of
defaulted Argentine debt, newspaper La Nacion reported.

Banco de Galicia y Buenos Aires SA has the biggest amount of its
assets invested in government bonds at about 80%, said Roberto
Drimer, an analyst at Argentine Research in Buenos Aires.

CONTACT:  GRUPO FINANCIERO GALICIA
          Teniente General Juan D. Peron 456, Piso 3
          1038 Buenos Aires, Argentina
          Phone: (54 11) 4343 7528 / 9475
          Web site: http://www.gfgsa.com
          Contacts:
          Eduardo J. Escasany,  Chairman and CEO
          Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires


METROGAS: S&P Places Default Ratings on Corporate Bonds
-------------------------------------------------------
The Argentine arm of Standard & Poor's International Ratings,
Ltd. assigned default ratings to corporate bonds issued by
Metrogas S.A. on Tuesday. The National Securities Commission of
Argentina described the concerned bonds as "obligaciones
negociables simples", with undisclosed maturity date. Some US$600
million worth of bonds, classified under "Program" were affected.

S&P gave an `raD' rating, which is assigned to financial
obligations that are in payment default or if the company has
filed for bankruptcy. The rating may also be given if payment on
the obligation is not made even if the applicable grace period
has not expired yet if the ratings agency believes that payment
will not be made during the grace period.


PAMI: President to Authorize Pension Intervention
-------------------------------------------------
Argentine President Nestor Kirchner is expected to sign
immediately a bill that would allow the government to take direct
control of PAMI, the highly-questioned state pension agency,
reports Dow Jones. The bill, which was requested by President
Kirchner, and already has the approval of the Senate and the
lower house, allows the government to take control of the state
pension agency for up to 180 days if it sees fit.

Until now, only the congress could order such intervention
following a specific request from the Auditor General.

The move comes as President Nestor Kirchner's government pushes
for the ousting of two directors from the organization's 11-
member union appointed board, says Dow Jones. Both directors are
appointees of Sen. Luis Barrionuevo, a union boss and opponent of
the president, who holds great sway in the agency, which controls
some ARS2 billion ($1=ARS2.785) in spending a year.

The government says it has asked for the legislation to enable it
- if necessary - to step in and clean up the agency, which is
widely seen as riddled with political patronage and corruption.
It has signaled, however, that it will avoid intervening if
possible.


SOCIEDAD COMERCIAL: SCP Allows Explore To Take 81% Stake of CGC
---------------------------------------------------------------
Argentine consortium Sociedad Comercial del Plata (SCP) told the
Buenos Aires stock market that it has agreed to allow Explore
Acquisition Corporation to acquire an 81% stake of its oil and
gas subsidiary Compania General de Combustibles (CGC), relates
Business News Americas.

According to CGC information, CGC would carry out a capital
reduction to address accounting issues, and then Explore would
subscribe to 100% of a ARS70 million (US$25 million) capital
increase.

CGC would use the capital increase to pay creditors 15% of its
US$200 million debt, said Roberto Starke, spokesperson for
Explore's owner, Southern Cross Latin America Private Equity Fund
II.

As part of the agreement, creditors would accept the remission of
CGC's remaining debt, Starke said. Creditors are yet to approve
the entire deal. According to Business News Americas, they are
scheduled to decide on the matter on June 25.

Although CGC has declared bankruptcy, Explore considers that CGC
"is a company that potentially, in energy terms, has a future
here in Argentina," Starke said.

CONTACT:  Sociedad Comercial del Plata SA
          3/F
          1056 Reconquista
          Buenos Aires Capital
          Federal
          Argentina
          Phone: +54 11 4311 6854
          Contact:
          Dr. Santiago T. Soldati, Chairman
          Dr. Matias M Brea, Vice Chairman


TELEFONICA DE ARGENTINA: S&P Assigns Ratings to Various Bonds
-------------------------------------------------------------
Telefonica de Argentina S.A.'s corporate bonds were rated `raBB'
by Standard & Poor's International Ratings Ltd. Sucursal
Argentina on Tuesday.

The rating, which denotes that the debt is currently vulnerable
to nonpayment, applies to the following bonds:

-- US$300 million worth of "obligaciones negociables" with
undisclosed maturity date.

-- ARS162 million worth of "Obligaciones Negociables por hasta
Ar$162 millones con vencimiento 2011" also  with undisclosed
maturity date.

The rating also applies to the following bonds that matured on
Thursday.

-- US$227.5 million of "ONS por hasta U$S 277.5 millones
vencimiento 2007, en canje por Ons vencimiento 2004"

-- US$351 million of "ONS por hasta U$S 351 millones vencimiento
2010, en caje por Ons vencimiento 2008"

-- US$290 million of "Obligaciones Negociables vencimiento 2011"

All the mentioned bonds were classified under "Simple Issue". The
ratings were based on the finances of the company as of the end
of March 2003.


TGN: Various Bonds Get Default Ratings From Fitch Argentina
-----------------------------------------------------------
Fitch Argentine Califidadora de Riesgo assigned default ratings
to various corporate bonds issued by Transportadora de Gas del
Norte S.A. recently.

The ratings apply to a total of US$255 million of bonds, which
are classified s "series and/or class":

-- US$20 million of "Serie I emitida bajo el Progr. Global de Ons
Simples por un monto de US$ 320 mm", which mature on July 1,
2008.

-- US$154.5 million of "Serie II emitida bajo el Progr. Global de
Ons Simples por un monto de US$ 320 mm" which come due on August
1, 2008.

-- US$10.7 million of "Serie III emitida bajo el Progr. Global de
Ons Simples por un monto de US$ 320 mm" which come due on July 1,
2009

-- US$9.3 million "Serie IV emitida bajo el Progr. Global de Ons
Simples por un monto de US$ 320 mm" which mature on July 1, 2009.

-- US$60.5 million of "Serie VI emitida bajo el Progr. Global de
Ons Simples por un monto de US$ 320 mm" which matures on
September 1, 2008.

Further, another US$620 million of bonds under the classification
"Program" also received the default ratings. These are:

-- US$320 million of "Programa Global de ONs simples o
convertibles en acciones ordinarias, autorizado por AGOyE de
21.2.96 y ampliado en USD 70 Mio por AE del 17.5.96.", which
matured in February 2001.

-- US$300 million of "Programa de Obligaciones Negociables", with
undisclosed maturity date.

The National Securities Commission of Argentina said that the
bonds received `D(arg)' ratings, which are assigned to financial
obligations that are in payment default, or when the obligor
filed for bankruptcy. The ratings were based on the Company's
financial statements as of March 31, 2003.



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

TYCO INTERNATIONAL: Suit Accuses Chief Of Misleading Investors
--------------------------------------------------------------
Three law firms have lodged legal proceedings against Tyco
International chief Edward Breen, according to a report released
by Knight Ridder/Tribune Business News.

The suit, which was filed May 28 in U.S. District Court in West
Palm Beach on behalf of Philadelphia's Ezra Charitable Trust,
alleges Breen misled investors when he gave the scandal-tainted
conglomerate a clean bill of health last year but then later
revealed further massive accounting irregularities at the
Company's ADT burglar alarm unit.

"The basis of the complaint is Breen's subsequent admission of
the need for further restatements to ADT's financial accounts,"
said Boca Raton attorney Ken Vianale, whose law firm Vianale &
Vianale is one of the three firms bringing the action.

The suit alleges that Breen knowingly withheld adverse
information that had been uncovered by a US$45 million
investigation into Tyco accounting practices conducted by famed
lawyer David Boies, an investigation which Breen said in December
had uncovered no major fraud.



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

AES CORP.: Board, Restructuring Meeting Slated for Tuesday
----------------------------------------------------------
AES Corp.'s Vice President and restructuring chief Joseph Brandt
is expected to meet with the Company's board Tuesday, Dow Jones
indicates. The meeting will take place after the Company's latest
proposal to restructure its US$1.2-billion debt with Brazil's
development bank BNDES got rejected.

AES and BNDES have been trying since January to come to an
agreement on the U.S. power group's debt with the state-owned
bank. On Wednesday, Brandt, BNDES's finance director Roberto
Timotheo da Costa and other officials had yet another meeting
that failed to yield conclusive results.

BNDES wants the U.S. company to pay part of US$750 million in
overdue payments as a condition for the lengthening of the
remaining of AES' debt. But AES hasn't made any acceptable offers
so far, Costa said.

In Tuesday's meeting, Brandt will take certain issues of the
rejected proposal to the board for discussion.

Costa said there would probably be another AES-BNDES meeting next
week in Brazil after Tuesday.


* Brazil Refinancing Through $10B in Debt Securities & Warrants
---------------------------------------------------------------
Brazil plans to periodically sell up to US$10 billion in debt
securities and warrants, Reuters reports, citing a company filing
with the U.S. Securities and Exchange Commission Thursday.
According to Brazil, it will used the proceeds from the shelf
offering for general purposes, including refinancing domestic and
external debt.

Reuters explains that under a shelf registration, a company or
government may sell securities in one or more separate offerings
with the size, price and terms to be determined at the time of
sale.



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

COEUR D'ALENE: Receives Key Approval for Kensington Gold Project
----------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE) reported on Thursday
that the Juneau Assembly approved an amendment to its Mining
Ordinance, which allows Coeur to eliminate permitting
duplications and streamline the permitting process for its
Kensington Gold Project. The Company estimates that this
modification will reduce the amount of time required to obtain
its remaining permits by six months. Coeur now anticipates
receiving all necessary permits for Kensington by the end of
January 2004.

Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer
stated, "Obtaining this key approval to amend the Ordinance will
streamline the remaining permitting process and will result in
cost savings of approximately $300,000. In addition to enjoying a
higher gold price, our optimization work continues to focus on
programs designed to reduce Kensington's projected capital and
operating costs."

The Kensington Gold Project is located approximately 45 miles
north of Juneau, Alaska and contains 1.8 million ounces of proven
and probable gold reserves and 1.4 million ounces of resources.
Capital costs necessary to place Kensington into production are
currently estimated to be $150 million, while annual gold
production is projected to average 175,000 ounces annually at
estimated average cash operating costs of approximately $200 per
ounce. Coeur believes that additional exploration potential
exists at Kensington that could significantly increase the
project's total resources.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.

CONTACT:  Tony Ebersole
          Phone: 208-769-8155



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

ICE: Reduces 2004-2005 Investments to Balance Budget
----------------------------------------------------
The board of Costa Rica's ICE last week acknowledged projections
the state telecoms and electric power company would end up with a
CRC44-billion (US$111 million) net loss this year. And with its
current spending rate, it would lose CRC77 billion in 2004 and
CRC42 billion in 2005.

In order to balance its budget, the Company will cut investments
for 2004-2005 by about US$250 million, says Business News
Americas, citing a report by local daily La Nacion. As such, ICE
could reduce its 2003 budget deficit to CRC23 billion, and break
even for 2004-2005.

ICE is expected to submit a report on its finances to the central
bank by July 14.

The proposal to put its finances in order comes ahead of a
planned US$60 million bond issue. On May 28, ICE and the central
bank also agreed on a US$40-million bond issue.

The two issues follow a 20-day strike lodged by workers last
month, claiming that the government had not kept its February 16
promise to allow a US$100 million bond issue.



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

ECUADORIAN BANKS: AGD Uncovers Fraudulent Practices
---------------------------------------------------
Ecuador's deposit insurance agency AGD, which is responsible for
intervening and closing financially troubled banks, as well as
reimbursing depositors, uncovered fraudulent operations involving
the largest debtors of eight intervened banks under its control,
reports Business News Americas.

According to AGD head Wilma Salgado, from the very outset of the
debt recovery process, evidence has suggested that certain
individuals had consistently avoided the payment of debts held
with the banks previous to the agency's intervention.

The banks in question are: Amerca, Finiber, Valorfinsa,
Tungurahua, Azuay, Finagro, Occidente, Financorp and Necman Corp.

AGD, which was set up as a result of Ecuador's banking crisis in
1998-1999, is intensifying the recovery of funds owed to the
eight intervened banks.


PACIFICTEL: Suptel Requests Intervention
----------------------------------------
Ecuador's telecoms regulatory enforcement agency Suptel is
seeking intervention of state-run fixed line operator Pacifictel,
reports Business News Americas. Suptel alleges Pacifictel of
falling short on buildout goals stipulated in a concession
modification agreed in 2001, and failing to act on a May 2002
order to rectify the situation.

In August 2002, Telecoms regulator Conatel accepted a
rectification plan whereby Pacifictel would install 49,000 new
lines this year, as well as 100 public telephones in the second
quarter and 408 public telephones in 4Q03. Pacifictel had relied
on funds of US$12 million, which it didn't get as a result of the
closure of local bank Filanbanco.

Pacifictel has appealed Suptel's recommendation on those grounds.

According to Business News Americas, Conatel will decide on
Suptel's recommendation and Pacifictel's appeal on Monday, June
23.


PETROECUADOR: Lifts Force Majeure; Production To Normalize
----------------------------------------------------------
Ecuador's state oil company Petroecuador lifted a force majeure
on crude exports on Thursday afternoon, a company source
announced, adding that production could return to normal levels
of about 210,000b/d by Saturday.

Petroecuador president Pedro Espin revealed in a statement that
the Company's production reached 190,858 barrels on Wednesday,
after the strike took output to around 180,000 barrels a day
(b/d) earlier in the week.

Business News Americas suggests that the lifting of the force
majeure came after unions representing Petroecuador workers
called off a week-long strike Tuesday following the government's
decision to abandon plans to award association contracts for its
five main oil fields to private companies.

Administrative workers went back to work on Tuesday but oil
workers remain on `standby' until the Energy Ministry stops legal
proceedings seeking to remove seven union leaders from their
posts.

However, energy minister Carlos Arboleda has requested that the
state prosecutor investigate 52 union leaders and workers for
their involvement in the strike, and he says the ministry is
receiving job applications from candidates to replace the strike
leaders.



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


GRUPO IUSACELL: SCT Seeks Sale Details from Executives
------------------------------------------------------
Mexico's Undersecretary of Communications at the Transport and
Communications Secretariat (SCT) expect Iusacell executives to
explain the details of the agreement reached between Grupo
Salinas and the telecommunications companies Vodafone and VerizĒn
regarding the purchase of a majority shareholding in Iusacell.

According to the Undersecretary, Jorge Alvarez Hoth, the SCT has
heard nothing up to now.

However, Juan Carlos Merodio, the legal vice president of
Iusacell, responded, saying, "we never knew," about the
negotiations being held between Grupo Salinas and Vodafone and
VerizĒn regarding the Iusacell deal.

"The administration of the company was totally outside the
deal... this is a deal that is being done between company
shareholders, where we, as administrators, had no part. We found
out last Friday. We did not take part in the decision," said the
executive.

The shares of Iusacell have lost 70.96% since the start of the
year, when it was being traded 0.62 pesos per share. On
Wednesday's trading, the stock was at just 0.18 pesos.

On the Mexico City Stock Exchange (BMV) it was said that the firm
was never asked for information about any deals because its
stocks did not show any atypical movements.


GRUPO MEXICO: Shares Fall After Goldman Analyst Downgrades Stock
----------------------------------------------------------------
Shares of Grupo Mexico SA, the world's third-largest copper
maker, fell 72 centavos, or 4.4%, to MXN15.78. The plunge came
after Alberto Arias, an analyst at Goldman, Sachs & Co.,
downgraded the stock to "underperform" from "in-line."

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 M,xico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre>n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


* Mexico: Notice of Redemption to Bond Holders
----------------------------------------------
Pursuant to the terms and conditions of the Collateralized Fixed
Rate Bonds due 2019 LRA Par Series, SSF Par Series, and DGU Par
Series issued by the United Mexican States, Mexico has elected to
redeem the entire outstanding principal amount, plus accrued
interest to the Redemption Date.

Payment on the Bonds will be made on the Redemption Date by
credit to the account of Citibank, N.A>, as common depositary for
Euroclear and clearstream, Luxembourg, for the account of their
respective participants. Holders of physical certificates must
present those certificates for payment to Citibank, N.AS., 111
Wall Street, 15th Floor, New York, NY 10005, Attn: Securities
Services.

On and after the Redemption Date, interest will cease to accrue
on the Bonds and the Bonds will cease to be listed on the
Luxembourg Stock Exchange. Upon the Redemption, the Bonds,
together with their attached value recovery rights, Series G
through Q, will be cancelled.

LRA Pas Series
ISIN: XS0015158701
Common Code: 1515870

SSF Par Series
ISIN: XS0015159006
Common Code: 151900

DGU Par Series
ISIN: XS0015158453
Common Code: 1515845



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

SIDERPERU: Management Meets With Creditors to Discuss Plan
----------------------------------------------------------
The management of Peru's biggest steel firm Siderperu met with
creditors to discuss the Company's financial restructuring plan.
The management aims to ensure sufficient flows of working
capital, Business News Americas reports, adding that the meeting
took place with the knowledge of Siderperu's majority
shareholders.

Plan to restructure its finances comes as the Company struggles
to deal with slumping sales due to imports of low-priced steel
products.

Siderperu's sales fell last year to US$110 million from an
average of US$122 million in previous years. The Company,
however, has improved its margin, thanks to cost-cutting efforts.

Siderperu's plant, located in Chimbote in center-west Peru's
Ancash department, has installed capacity of around 400,000t.



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

BWIA: Government Still Analyzing Labor Cost Reduction Plan
----------------------------------------------------------
The Trinidad Cabinet is yet to decide whether the proposal to
reduce labor costs submitted by BWIA just recently is good enough
to ensure the State's continued financial support of the carrier,
reports The Trinidad Guardian.

However, Prime Minister Patrick Manning indicated that the
Government will decide on the matter expeditiously.

The government has required BWIA to cut labor costs or lose state
funding. The Trinidad Guardian earlier reported that the
government did not set a definite amount of labor cost savings,
requiring only that operating costs be reduced by 20%.

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)



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

CANTV: Council of Ministers to Review Potential Rate Increase
-------------------------------------------------------------
Venezuela's Conatel regulatory agency has delivered to the
council of ministers a report regarding a plan to allow CA
Nacional Telefonos de Venezuela SA, the country's largest
telephone company, increase rates by 19%, Bloomberg reports,
citing a Conatel official.

"The council of ministers will consider the rate increase next
week," Jesse Chacon, who heads the Conatel regulatory agency,
said in an interview. "We delivered our report to them last
week."

The increase, which would apply to residential rates, would
likely take place in July, Chacon added. A rate increase would
help CANTV meet soaring costs tied to inflation, and foreign
exchange restrictions.

The Company reported that first-quarter income fell 74% to
VEB10.5 billion (US$7 million).


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


* Venezuela: Notice to Shareholders of Bonds Due in 2007
--------------------------------------------------------
In accordance with the provisions of the US$5,114,173,000 of
Floating Rate Bonds due 2007 USD Debt Conversion Series DSL,
notice is hereby given that for the Interest Period from June 18,
2003 to December 18, 2003 the Bonds will carry an Interest Rate
of 1.875 percent per annum.

The interest payable on the relevant interest payment date,
December 18, 2003 will be US$4.08 per US$1,000 principal amount
of which US$428.56 remains outstanding.

CONTACT:  J.P. Morgan Cbase Bank
          Agent Bank


               ***********


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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