TCRLA_Public/030625.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, June 25, 2003, Vol. 4, Issue 124

                           Headlines


A R G E N T I N A

ALBETE: Calls Creditors to a Formal Meeting
ANTONIO A VAZQUEZ: Under Receivership
CANAL 9: Seeks Reorganization After Suffering Huge Losses
CASTRO Y COMPANIA: Files Motion For Reorganization
CENTRO TECNICO: Creditor Seeks Bankruptcy

CORREO ARGENTINO: Runs Into Serious Trouble With Government
DIRECTV LA: Court Gives Go-Ahead to Huron's Retention
DISTRIBUIDORA MORICE: Requests Creditors To Attend Meeting
DOTTI HERMANOS: Seeks Court's Nod To Reorganize
EMILIO LOPEZ: Calls Creditors To Formal Meeting

GRUPO TEXTIL: Files For 'Concurso Preventivo'
KYO EI PLASTIC: Union Bankruptcy Motion Approved
LAS MARIANAS: Deemed Bankrupt By Local Court
LLANEZA HERMANOS: Takes First Step Towards Reorganization
MUSIMUNDO.COM: Calls Creditors to a Meeting

NEG GROUP: Deemed Bankrupt By Buenos Aires Court
SEG MEDICAL: Court Calls Creditors To Formal Meeting
SERVICIOS FINANCIEROS: Signs Acuerdo Preconsursal With Creditors
SISTEMAS INTEGRALES: Court Grants Creditor's Bankruptcy Request
TRI NOI: Declared Bankrupt Upon Creditor's Request

41 PLAZA: Under Receivership After Concurso Filing


B E R M U D A

GLOBAL CROSSING: Exclusivity Hearing to Continue June 25
TYCO INTERNATIONAL: Appoints New Senior Vice President
TYCO INTERNATIONAL: Judge Denies Motion To Dismiss Ex-Execs' Case


B R A Z I L

AES CORP.: Announces Completion of Common Stock Offering
CEMAR: Sale Process Resumes
ENRON: Brazil Power Holdings' Voluntary Ch. 11 Case Summary
SABESP: Announces Offering's Completion
VARIG/TAM: To Ink Merger Deal This Week, Says Advisor


C H I L E

EDELNOR: Local and Foreign Corp Credit Ratings Raised to 'B-'
ENDESA CHILE: Completes Infraestructura Sale to OHL for $273M


M E X I C O

CFE: Invites Bids For Equipment Overhaul


N I C A R A G U A

ENITEL: Govt. Receives Bids From SCH, BNP Paribas


P A N A M A

BLADEX: Announces Preliminary Results of Rights Offering


P E R U

SIDERPERU: Asks AGR Trustees To Call Meeting Of Creditors


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Consummates $500M Notes Offering
ENRON: Gas Natural To Buy Puerto Rican Asset For $130M


U R U G U A Y

* Uruguay: IMF Managing Director Issues Statement


V E N E Z U E L A

CANTV: Court Ditches Suit Filed by Multiphone
PDVSA: Reiterates Plans To Open Service Stations in Argentina
SIDOR: Accomplishes Financial Restructuring
SIDOR: Tenaris Issues Comments on Debt Restructuring

* Venezuela: Fitch Upgrades Sovereign Ratings to 'B-'

     -  -  -  -  -  -  -  -


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

ALBETE: Calls Creditors to a Formal Meeting
-------------------------------------------
Court No. 23 of Buenos Aires, under Dr. Villanueva calls
creditors of Albete S.A. to a formal meeting, following the
Company's filing for "Concurso Preventivo" earlier.

The Court, with assistance from by Dr. Cufari of Secretary No.
46, assigned Ms. Liliana Montoro as receiver for the proceedings.
Ms. Montoro will verify claims until September 3. The informative
assembly will be on June 3 next year.

CONTACT:  Albete S.A.
          Santa Fe Ave. 1537
          Buenos Aires

          Ms. Lilina Montoro
          3rd Florr 'B'
          Sarmiento Street No. 517
          Buenos Aires


ANTONIO A VAZQUEZ: Under Receivership
-------------------------------------
The Civil and Commercial Tribunal of Lomas de Zamora placed
construction company Antonio A Vazquez e Hijos S.A. under
receivership with Mr. Marcelo Edgardo Miraos as receiver. The
news came after the Company filed for "concurso preventivo"
recently.

Infobae relates that the receiver will verify claims until July
14. He will then file the individual reports on September 18 and
the general report on December 17. Creditors are invited to
attend an informative assembly on February 17 next year.

CONTACT:  Antonio A Vazquez e Hijos S.A.
          Ferrando 1448
          Longchamps

          Mr. Marcelo Edgardo Miraos
          Rodriguez Pena 296
          Banfield


CANAL 9: Seeks Reorganization After Suffering Huge Losses
---------------------------------------------------------
Operative losses pushed Argentine TV channel Canal 9 to seek
court permission to start a reorganization process. The Company
has submitted its plea for "Concurso Preventivo" to Commercial
Court No. 9. The owner, Daniel Hadad, relates that the move was
aimed to reduce costs at the ailing company.

Local sources say that Mr. Hadad bought the Company for US$3
million plus a UD$9 million debt payment to Telefonica. However,
losses drove the Company's debt to as much as US$60 million.


CASTRO Y COMPANIA: Files Motion For Reorganization
--------------------------------------------------
Construction materials distributor Casto Y Compania S.R.L. has
filed for "Concurso Preventivo" at the Civil and Comercial
Tribubal of the Argentine state of Mendoza.

According to local news portal Infobae, Court No. 2 of Mendoza
has set the informative assembly for the reorganization process
to be held on October 27 next year.


CENTRO TECNICO: Creditor Seeks Bankruptcy
-----------------------------------------
Acordar Cooperativa se Credito y Consumo Ltda. filed a request
seeking the bankruptcy of Argentine air conditioner seller Centro
Tecnico Buen Aire SA. A local source reveals that Centro Tecnico
owes Acordar Cooperativa some ARS17,130.

Court No. 1, which handles the case, assigned Mr. Tito Gargalione
as receiver for the process. The deadline for verification of
claims is August 13 this year.

CONTACT:  Centro Tecnico Buen Aire S.A.
          Rincon Street No. 85
          Buenos Aires

          Mr. Tito Gargaglione
          1st Floor C
          Medrano Avenue No. 833
          Buenos Aires


CORREO ARGENTINO: Runs Into Serious Trouble With Government
-----------------------------------------------------------
Argentinean mail company Correo Argentino is in serious legal
trouble with the Government. The Company, which is in the hands
of the 'Macri' holding, is being accused of maintaining large and
ongoing debts with the Government.

The Government has not reached a clear decision regarding what
measures it will take. What is under consideration now is whether
the concession will be taken from the hands of the Macri Group,
and either given to another private concession or returned to the
Estate which originally owned it.


DIRECTV LA: Court Gives Go-Ahead to Huron's Retention
-----------------------------------------------------
The Official Committee of Unsecured Creditors of DirecTV Latin
America, LLC, sought and obtained the Court's authority to retain
Huron Consulting Group LLC as its financial advisors pursuant to
Sections 328(a) and 1103 of the Bankruptcy Code and Rule 2014(a)
of the Federal Rules of Bankruptcy Procedure, nunc pro tunc to
March 31, 2003.

As financial advisors, the Committee Huron will:

  (a) review all financial information prepared by the Debtor or
      their accountants or other financial advisors as the
      Committee requested, including, but not limited to, a
      review of the Debtor's financial statements as of the
      date of the filing of the petitions, showing in detail
      all assets and liabilities and priority and secured
      creditors;

  (b) monitor the Debtor's activities regarding cash
      expenditures, loan drawdowns and projected cash
      requirements;

  (c) attend meetings of the Committee, the Debtor, creditors,
      their attorneys and financial advisors, and federal, state
      and local tax authorities, if required;

  (d) assist, as the Committee requests, in this case with
      respect to, among other things:

      -- review of any plan of reorganization suggested or
         proposed with respect to the Debtor;

      -- review and analysis of proposed transactions for which
         the Debtor seeks Court approval;

      -- valuation and corporate finance assistance with any
         sale and portfolio valuation matters as may be
         required;

      -- preparation of a going concern sale and liquidation
         value analysis of the estate's assets;

      -- review of the Debtor's periodic operating and cash
         flow statements;

      -- any investigation that may be undertaken with respect
         to the prepetition acts, conduct, property,
         liabilities and financial conditions of the Debtor,
         including the operation of its business; and

      -- other services as the Committee or its counsel and
         Huron may mutually deem necessary.

Pursuant to Section 330(a) of the Bankruptcy Code, the Committee
and Huron have agreed that Huron will be compensated on a fixed
monthly rate.  The Parties agreed to a $165,000 monthly
compensation for April and May 2003.  The Committee and Huron
will reassess the adequacy of the $165,000 monthly fee based on
the actual time incurred and if necessary, seek Court approval to
adjust the rate for work to be performed subsequent to May 2003.

Moreover, Huron will bill:

  (a) if approved by the Committee, out-of-pocket legal fees
      and expenses incurred related to and as a result of this
      case; and

  (b) fees associated with administration of filings and
      reporting required by the Bankruptcy Court related to the
      Committee's retention of Huron. (DirecTV Latin America
      Bankruptcy News, Issue No. 8; Bankruptcy Creditors'
      Service, Inc., 609/392-0900)


DISTRIBUIDORA MORICE: Requests Creditors To Attend Meeting
----------------------------------------------------------
Argentine clothing company Distrubuidora Morice S.A. is calling
its creditors to a meeting, according to a local source. No
specific date and place have been announced.

Court number 14 under Dr. Sala handles the case with assistance
from doctor Aleman of Secretary No,. 27. The Company stopped
making debt payments last May.

CONTACT:  Distribuidora Morice S.A.
          Caracas Street No. 2157
          Buenos Aires


DOTTI HERMANOS: Seeks Court's Nod To Reorganize
-----------------------------------------------
The Civil and Commercial Tribunal of San Francisco, Cordoba has
received a motion for "Concurso Preventivo" from Dotti Hermanos
S.H., relates Infobae.

San Francisco's Court No. 2 designated Mr. Ruben Ghione as
receiver for the reorganization proceedings.

CONTACT:  Dotti Hermanos S.H.
          Cabrera 2447
          San Francisco
          Cordoba

          Rubben Ghione
          Pasaje Cesar Ferreo
          San Francisco, Cordoba


EMILIO LOPEZ: Calls Creditors To Formal Meeting
-----------------------------------------------
Emilio Lopez SA, which recently sought the Court's permission to
start reorganization proceedings, is calling its creditors to a
formal meeting, said a local source.

The Company, which manufactures colored fabrics, frames and
clothed cardboard, filed for "Concurso Preventivo" after it
stopped making debt payments in November 2001. The case is
presently at Court No. 9, under Dr. Javier Dubois.

The Company declared having total assets of ARS3.59 million
(US$1.28 million) and US$18,196 and liabilities of ARS4.85
million (US$1.73 million) and US$11,337.

CONTACT:  Emilio Lopez S.A.
          3rd Floor
          Libertad Street No 417
          Buenos Aires


GRUPO TEXTIL: Files For 'Concurso Preventivo'
---------------------------------------------------
Grupo Textil Morja y Asociados S.A., which is based in La
Pampeana, is seeking approval from an Argentine Court to start a
reorganization process, according to local newspaper El Clarin.
The Company's "concurso preventivo" motion was filed at Court No.
12 of Buenoes Aires.


KYO EI PLASTIC: Union Bankruptcy Motion Approved
------------------------------------------------
The Union de Obreros y Empleados Plasticos succeeded in asking
for the bankruptcy of Argentine plastic maker Kyo Ei Plastic SRL.
The Company owes some ARS31,823 to the Union, according to a
local source.

The bankrupt company is in the hands of its receiver, Mr. Juan
Alberto Gianazzo, who will verify credit claims until August 26,
2003. Presently, Buenos Aires Court No. 8 handles the Company's
case.

CONTACT:  Kyo Ei Plastic
          Corrientes Ave. No. 846
          Buenos Aires

          Mr. Juan Alberto Gianazzo
          8th Floor '199'
          Avenida de Mayo No. 1370
          Buenos Aires


LAS MARIANAS: Deemed Bankrupt By Local Court
--------------------------------------------
Buenos Aires-based Las Marianas S.R.L. has entered bankruptcy,
according to a local source. The Company's creditor, Carlos
Nunez, reportedly requested that the court declare Las Marianas'
bankruptcy after the Company failed to pay him $32,174.

Court No. 23, under Dr. Villanueva assigned Ms. Gloria Della Sala
as receiver for the proceedings. The deadline for verification of
claioms is September 8 this year.

CONTACT:  Las Marianas S.R.L.
          Habana 4374
          Buenos Aires

          Ms. Gloria Della Sala
          5th Floor 'A'
          Uruguay Street No. 662
          Buenos Aires


LLANEZA HERMANOS: Takes First Step Towards Reorganization
---------------------------------------------------------
Argentine car dealer Llaneza Hermanos S.A. is seeking permission
from the Court to commence reorganization proceedings by
submitting its motion for "concurso preventivo".

Infobae relates that the Company's case is handled by Court No.
17, with assistance from Secretary No. 33 of Buenos Aires.
However, the report did not mention whether a receiver has been
assigned to the process.


MUSIMUNDO.COM: Calls Creditors to a Meeting
-------------------------------------------
The on-line CDs seller Musimundo.com S.A. is requesting that its
creditors attend a meeting, said a local source, without
revealing its intended date and venue.

The Company, which stopped making debt payments earlier this
month, recently filed for a formal restructuring at Court No. 1,
which is under Dr. Bargallo, with the assistance Dr. Macchi from
Secretary No. 21.

CONTACT:  Musimundo.Com S.A.
          8th Floor Office 79
          Pte. Roque SAenz Pena Street No. 1150
          Buenos Aires


NEG GROUP: Deemed Bankrupt By Buenos Aires Court
------------------------------------------------
A request from Merzario Argentina S.A resulted in the bankruptcy
of Buenos-Aires based funiture maker Neg Group S.A., according to
local sources. Merzario, to whom Neg Group owes some US$16,461
filed the request at the city's Court No. 21, which is under Dr.
Paez Castaneda.

The Court assigned Ms. Patricia Narduzzi as receiver for the
bankruptcy proceedings. Credit claims must be verified before
September 19 this year.

CONTACT:  Neg Group S.A.
          11th Floor 'C'
          Libertad Street 877
          Buenos Aires

          Ms. Patricia Narduzzi
          1st Floor
          Rivadavia Ave. No. 666
          Buenos Aires


SEG MEDICAL: Court Calls Creditors To Formal Meeting
----------------------------------------------------
Buenos Aires court number 23 calls creditors of Seg Medical A.G.
to a formal meeting after the Company is put under receivership
with Estudio Carreiro, Harvey & Asociados as receiver.

A local source reveals that the claims will be verified until
August 15 this year, while the informative assembly will be on
May 14, 2004.

CONTACT:  Seg Medical A.G.
          Ground Floor 'F'
          Scalbrini Ortiz Ave. No. 2894
          Buenos Aires

          Estudio Carreiro, Harvey & Asociados
          Ground Floor '6'
          Tte. Gral. J.D. Peron 1143
          Buenos Aires



SERVICIOS FINANCIEROS: Signs Acuerdo Preconsursal With Creditors
----------------------------------------------------------------
Servicios Financieros S.A. has reached an "Acuerdo Preconcursal"
agreement with its creditors, relates El Cronista Comercial. The
Company's case number 30663332968, is in the hands of the
National Commercial Court of First Instance No. 1, which under
Dr. Fernando Ottolenghi. Dr. Carlos Alberto Anta, from Secretary
No. 8, assists the Court on the matter.


SISTEMAS INTEGRALES: Court Grants Creditor's Bankruptcy Request
---------------------------------------------------------------
Court No. 20 of Buenos Aires declared data processing firm
Sistemas Integrales de Control S.A. under bankruptcy, granting a
request from Acron S.A., to whom the Company owes $8,765.98.

Mr. Taillade, who is in charge of the Court, assigned Ms. Nora
Roger as receiver for the proceedings. Creditors are advised to
have their claims verified before September 24 this year.

CONTACT:  Sistemas Intergrales de Control S.A.
          2nd Floor
          Viamonte Street No. 1511
          Buenos Aires

          Ms. Nora Roger
          6th Floor '3'
          Hipolito Yrigoyen St. No. 1349
          Buenos Aires


TRI NOI: Declared Bankrupt Upon Creditor's Request
--------------------------------------------------
Court No. 22 of Buenos Aires puts Tri Noi S.R.L. under
bankruptcy, granting a request by Patricia Di Mundo. A local
source said that the Company owes about $27.550 to Ms. Di Mundo.

The Court, under Dr. Braga, assigned Angel Mantero as receiver
for the proceedings. The court is assisted by Dr. Julianelli from
Secretary No. 44 on the matter.

The deadline for verification of claims is August 18, 2003.

CONTACT:  Tri Noi S.R.L.
          Alvarez Thomas Street No. 2558
          Buenos Aires

          Angel Mantero
          8th Floor
          Lavalle Street No. 1125
          Buenos Aires


41 PLAZA: Under Receivership After Concurso Filing
--------------------------------------------------
Court No. 11 of Buenos Aires placed 41 palza S.R.L. under
receivership following the company's filing of its "concurso
preventivo."

According to local news source Infobae, the Court assigned Mr.
Miguel Angel Marceesi as receiver. He is expected to file the
individual reports on September 11 and the general report on
October 23. Before the reports, however, the receiver would
verify claims until July 17 this year.

CONTACT:  Mr. Miguel Angel Marceesi
          Avellaneda 1135
          Buenos Aires



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

GLOBAL CROSSING: Exclusivity Hearing to Continue June 25
--------------------------------------------------------
The hearing on Global Crossing Ltd., and its debtor-affiliates'
request to further extend their Exclusive Periods, to file and
propose a Plan and to solicit acceptances of that Plan, is
adjourned to June 25, 2003.  Accordingly, the Debtors' exclusive
period is extended until the conclusion of that hearing.

At tomorrow's Hearing, the Court will also wade into Carl Ichan-
controlled XO Communication's competing $700 million cash bid
designed to nix the Hutchison Communications Limited deal and
under which XO will successfully acquire Global Crossing's
businesses. (Global Crossing Bankruptcy News, Issue No. 42;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


TYCO INTERNATIONAL: Appoints New Senior Vice President
------------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) announced
on Monday the appointment of Charles Young as Senior Vice
President, Corporate Communications. He comes to Tyco from GE
Medical Systems, the healthcare technology division of General
Electric, where he served as General Manager of Global Marketing.

Mr. Young will be responsible for media relations, brand
management, employee communications, corporate philanthropy,
community relations, and marketing communications. He will report
to Chairman and CEO Ed Breen.

Mr. Breen said, "Charlie Young is an outstanding global business
leader who brings to Tyco extensive communications and marketing
experience from both the manufacturing and services industries.
Charlie will be instrumental in building world-class
communications processes supporting our internal and external
stakeholders globally. He will be an integral part of Tyco's
senior leadership team."

Mr. Young said: "Ed Breen and his leadership team are committed
to creating one of the world's most respected and successful
companies. I believe in Tyco's solid operating foundation and
exciting future, and I am proud to lead the effort to create a
high-credibility, best-in-class communications team to ensure
that Tyco's key audiences are closely connected to the Company."

During his 15-year tenure with GE, Mr. Young held a number of
positions of increasing responsibility, including global
marketing leader for GE Medical, General Manager of Corporate
Communications for GE Medical, and Director of Communications and
Public Affairs for GE Global Research. Mr. Young has extensive
functional experience in the areas of marketing, public
relations, marketing communications, brand management, and
government relations.

Mr. Young holds a B.S. degree in Liberal Arts and Journalism from
the State University of New York College at Cortland.

About Tyco International

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in medical device products, and plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.

CONTACT:  Gary Holmes (Media)
          Phone: 212-424-1314

          Ed Arditte (Investors)
          Phone: 212-424-1390


TYCO INTERNATIONAL: Judge Denies Motion To Dismiss Ex-Execs' Case
-----------------------------------------------------------------
A Manhattan judge denied Monday a motion to dismiss a lawsuit
filed against former Tyco International executives, the AP
reports.

Dennis Kozlowski, 51, Tyco's former CEO, and Mark Swartz, 45, the
Company's former chief financial officer, have been indicted on
larceny charges for allegedly stealing some US$600 million from
Tyco. Both have pleaded innocent.

A motion was filed to dismiss the charges, but State Supreme
Court Justice Michael Obus rejected the motion, saying: "There is
sufficient evidence to support the finding of the grand jury."

"There is compelling evidence the defendants took money from Tyco
that they were not permitted to take."

He scheduled the trial for Sept. 29 but told the lawyers to
return July 10 for a pretrial conference.

Charles Stillman, Swartz's lawyer, said he was not surprised by
Obus' ruling.

"Winning a motion to dismiss does not happen very often," he
said. "The die is cast. We're going to turn to preparing this
case for trial."

Based in Bermuda but with U.S. headquarters in Portsmouth, N.H.,
Tyco has numerous subsidiaries that make products from ADT alarms
systems to coat hangers to telecommunications equipment. Tyco had
sales of about $36 billion last year.



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

AES CORP.: Announces Completion of Common Stock Offering
--------------------------------------------------------
The AES Corporation (NYSE:AES) announced Monday that it has
completed an offering of 49,450,000 shares (including 6,450,000
shares issued pursuant to the underwriters' exercise of the over-
allotment option) of common stock at $7 per share.

The joint book-running managers for the offering were Banc of
America Securities LLC and Lehman Brothers.

AES received net proceeds of $334,900,125 in the offering. AES
will use $75 million of the proceeds to prepay a portion of its
secured equity-linked loan due 2004 issued by AES New York
Funding LLC. As AES is currently exploring the possibility of
refinancing its senior secured credit facilities, AES has
obtained a waiver from the lenders under its senior secured
credit facilities which postpones AES's obligation to prepay its
senior secured credit facilities with a portion of the offering
proceeds until September 30, 2003. AES intends to use any net
proceeds remaining from the offering (after it makes any required
prepayments) for general corporate purposes, including the
potential repayment or repurchase of debt.

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


CEMAR: Sale Process Resumes
---------------------------
The process to sell Maranhao state power company Cemar resumed
following a series of delays caused by injunctions filed by the
Company's workers union, reports Business News Americas.

Power sector regulator Aneel plans to wrap up the sale by mid-
August, according to a statement published by the current
administrator, Sinval Zaidan.

In an effort to complete the sale before his current six-month
term ends on August 15, Zaidan designed a new timetable, which
includes receiving pre-qualification documents by June 30,
approving the companies by July 7, receiving bids on July 25,
announcing a winner on August 11 and transferring control of the
Company by August 15.

US-based PPL Global owns a majority stake in Cemar, but chose to
abandon its investment in the Company due to financial troubles.
In July 2002, PPL reached an agreement to sell its stake to US-
based Franklin Park Energy for US$1, but creditors blocked the
deal.

PPL then allowed Cemar to file for protection from creditors, at
which point Aneel stepped in to take over operations at the
company.

Aneel still plans to sell the Company to the bidder that presents
the best solution for Cemar's debts, with the shares changing
hands for a token US$1.

Cemar distributes electricity to about 1 million people in
Maranhao, one of the country's poorest states.

CONTACT:  COMPANHIA ENERGETICA DO MARANHAO
          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024
          WEBSITE: http://www.cemar.com.br/

CREDITORS:  CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page: http://www.eletrobras.gov.br
            Contacts:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

            Investor Relations Division
            Phone: (0XX21) 2514-6207 / 2514-6333
            Av. Presidente Vargas, 409 - 9  andar
            20071-003 - Rio de Janeiro - RJ
            Email: arlindo@eletrobras.gov.br

            CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            E-mail: elnweb@eln.gov.br
            Home Page: http://www.eln.gov.br/
            Contact:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694
            E-mail: arlindo@eletrobras.gov.br

            FLEETBOSTON FINANCIAL CORP.
            100 Federal Street
            Boston, MA 02110
            Phone: (617) 434-2200
            Fax: (617) 434-6943
            URL: http://www.fleet.com/home.asp


ENRON: Brazil Power Holdings' Voluntary Ch. 11 Case Summary
-----------------------------------------------------------
Debtor: Enron Brazil Power Holdings I Ltd.
        Huntlaw Corporate Services Limited
        75 Fort Street
        The Huntlaw Building
        George Town
        Cayman Islands

Bankruptcy Case No.: 03-14053

Type of Business: The Debtor is an affiliate of Enron Corp.

Chapter 11 Petition Date: June 20, 2003

Court: Southern District of New York (Manhattan)

Judge: Arthur J. Gonzalez

Debtors' Counsel: Brian S. Rosen, Esq.
                  Weil, Gotshal & Manges LLP
                  767 Fifth Avenue
                  New York, NY 10153
                  Tel: 212-310-8602
                  Fax : 212-310-8007

Estimated Assets: $50 Million to $100 Million

Estimated Debts: $10 Million to $50 Million


SABESP: Announces Offering's Completion
---------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo -- SABESP
(NYSE:SBS) (Bovespa:SBSP3), one of the largest water and sewage
companies in the Americas (based on 2002 revenues), announced
Monday that it has completed an offering of US$225 million
principal amount of its 12% Notes due 2008, with interest payable
semiannually. The notes were offered in the United States only to
qualified institutional investors pursuant to Rule 144A under the
U.S. Securities Act of 1933, as amended, and, outside the United
States, only to non-U.S. investors. The proceeds of this offering
will be used to refinance SABESP's 12% Notes due 2003 and to
repay certain of its other indebtedness from time to time.

The securities have not been registered under the U.S. Securities
Act of 1933, as amended (the "Securities Act"), or any state
securities laws, and unless so registered, may not be offered or
sold in the United States except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offering would be unlawful.


VARIG/TAM: To Ink Merger Deal This Week, Says Advisor
-----------------------------------------------------
Brazil's largest airlines, Varig and TAM, are expected to seal a
deal to merge their operations this week after problems, which
hindered the process, were resolved last week.

Reuters recalls that on Friday, Varig's shareholders fired
Gilberto Rigoni as president of the FRB-Par, the Company that
administers the airline. Rigoni was opposed to the merger and he
was replaced with Joaquim dos Santos, who had actively
participated in the talks with TAM.

With that out of the way, the deal should be put on paper this
week, according to a spokesman for Banco Fator, which was hired
by the two airlines to put together the merger.

"The trend is that it will be signed this week. Everything has
been resolved and the contract is being written up," Fator
spokesman Roberto Muller told Reuters.

The new, yet unnamed carrier would be Latin America's largest
airline and control 67% of the Brazilian market with a fleet of
180 planes and 19,000 employees.

Under the terms of the agreement, VEM will begin providing
maintenance services to the merged airline only three years after
it begins operating, said a source at Varig.

The previous accord gave VEM an exclusivity contract with the new
airline for seven years, a deal that did not sit well with TAM,
which has its own maintenance firm.

Once Varig and TAM agree to merge, the state-run National Social
and Economic Development Bank, or BNDES, is expected to free up
US$100 million in credit so that Varig can continue flying until
the fusion.

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

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

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



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

EDELNOR: Local and Foreign Corp Credit Ratings Raised to 'B-'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised Monday its local and
foreign corporate credit ratings on Chilean electric generator
Empresa El‚ctrica del Norte Grande S.A. (Edelnor) to 'B-' from
'CC', reflecting a more favorable maturity schedule after the
company completed its Chapter 11 reorganization and strategic
plan. At the same time, Edelnor's rating was removed from
CreditWatch with positive implications. Standard & Poor's also
assigned its 'B-' rating to Edelnor's US$217 million debt
certificates. The outlook is stable.

Edelnor completed a Chapter 11 reorganization on Nov. 5, 2002,
which replaced US$340 million in bank debt with US$217 million
15-year debt certificates and a US$46 million subordinated
shareholder loan. The new debt certificates carry a 4% coupon
(with step up rates after 2005) and amortize in 20 semi-annual
installments starting in May 5, 2008.

"Although this reorganization improved Edelnor's debt and
maturity profile, financial performance remains fairly weak as a
result of the significant oversupply in the SING, which is
Edelnor's area of operation," said Standard & Poor's credit
analyst Sergio Fuentes. "Although we expect Edelnor's funds from
operations interest coverage, including cash inflows from its 21%
owned Norandino Natural Gas Pipeline, to improve to levels of
about 2.5x-3x times from 1.8x in 2002, financial flexibility is
expected to remain significantly restricted," continued Mr.
Fuentes.

Edelnor's rating reflects its still weak financial performance, a
very limited financial flexibility, and the uncertainties
regarding the maturity of a great portion of its sale contracts
between 2005 and 2008.

These weaknesses are mitigated by Edelnor's equity stake in
Gasoducto Norandino, which is projected to provide a stable cash
flow stream, and by the ownership of transmission assets, a
competitive advantage to face the high competitive pressures in
the SING.

The stable outlook incorporates Standard & Poor's expectations
that Edelnor will be able to sign new sale contracts and/or renew
a great portion of the contracts that are due between 2005 and
2008, although at lower prices than the current ones. If the
company fails to reach this goal, the ratings could be revised.
In addition, Standard & Poor's anticipates that the company will
continue to show weak debt coverage ratios of 5%-6% in the next
three to four years. However, this risk is mitigated by a very
low interest rate and by the fact that there are no maturities
until 2008.

Edelnor is a partially integrated utility, mainly engaged in
power generation and, to a lesser extent, transmission in
northern Chile. The company owns and operates generating
facilities with a capacity of 687MW, leases another 29MW of
diesel units, and owns about 1,056km of transmission lines.
Edelnor is 82.34% owned by Inversiones Mejillones S.A, a holding
company that is owned by Belgium's Tractebel S.A. (not rated) and
Chilean copper producer Corporacion Nacional del Cobre de Chile
(LCR: 'A+'/Stable; FCR: 'A-'/Positive).

ANALYST:  Sergio Fuentes, Buenos Aires (54) 114-891-2131
          Marta Castelli, Buenos Aires (54) 114-891-2128
          Luciano Gremone, Buenos Aires (54) 11-4891-2143


ENDESA CHILE: Completes Infraestructura Sale to OHL for $273M
-------------------------------------------------------------
Endesa Chile, a unit of Enersis SA, revealed Monday it has
completed the US$273-million sale of its highway construction
subsidiary Infraestructura 2000, to OHL, a Spanish construction
company, says Reuters.

The sale is part of Enersis' plans to reduce debt through asset
sales and a capital increase of up to US$2 billion.

"The sale of Infraestructura 2000 is an important step toward
fulfilling our financial strengthening plan," Endesa Chile said
in a statement.

The transaction, which had been under negotiation with OHL for
the past two years, was made possible in April after
Infraestructura 2000 subsidiary Autopista de los Libertadores
issued US$85 million in domestic bonds to pay back a debt with
Endesa, which was a condition of the sale.

Endesa Chile's parent Enersis is the Latin American investment
arm of Spain's Endesa SA.

CONTACT:  Endesa SA
          Principe de Vergara 187 - pta3
          28002 Madrid
          Spain
          Phone: +34 91 213 10 00
          Fax: +34 91 563 81 81
          Home Page: http://www.endesa.es
          Contacts:
          Manuel Pizarro Moreno, Chairman
          Rafael Miranda Robredo, Chief Executive



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

CFE: Invites Bids For Equipment Overhaul
----------------------------------------
Mexico's state power company CFE is inviting bids for the
overhaul of the steam generator and auxiliary equipment at unit 1
of its 750MW Valle de Mexico plant, reports Business News
Americas.

The Company is offering the contract under the financed public
works (OPF) mechanism, and will award it to the lowest bidder
that meets technical requirements.

The CFE has made bid documents available for general review at
http://www.cfe.gob.mx/www2/negocios/notainversionistas.asp?seccio
n=canal+inversionistas&seccion_id=2955&seccion_nombre=Rehabilitac
i%F3n+mayor+Valle+de+M%E9xico. Bidding rules are available
through August 13.

The CFE will receive bids August 19 and will open economic bids
September 9.

Work is scheduled to start by year-end and be completed by
December 2004.

CONTACT:  COMISION FEDERAL DE ELECTRICIDAD
          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          Home Page: http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance



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

ENITEL: Govt. Receives Bids From SCH, BNP Paribas
-------------------------------------------------
Nicaragua's government received technical bids from investment
banks Santander Central Hispano (SCH) of Spain and BNP Paribas of
France, as it continues with the selection process to complete
the privatization of fixed line telecoms operator Enitel.

Citing local daily La Prensa, Business News Americas reports that
the banks are scheduled to submit financial bids on June 26. The
eventual sale of the government's 49% stake is expected to take
place in early November.

Government holding 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$33 million. Enitel employees hold the
remaining 11%.



===========
P A N A M A
===========

BLADEX: Announces Preliminary Results of Rights Offering
--------------------------------------------------------
Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX)
("BLADEX" or the "Bank"), a specialized multinational bank
established to finance trade in the Latin American and Caribbean
region, announced Monday that it received actual subscriptions
for approximately 20.5 million shares in the Bank's 22 million
share rights offering, which expired on June 20, 2003, and
notices of guaranteed delivery representing subscriptions for up
to an additional 2.6 million shares.  The subscription agent is
working to confirm the actual number of notices of guaranteed
delivery subscriptions and the Bank expects to announce the final
subscription amount after the end of the notice of guaranteed
delivery protection period, which expires at 5:00 pm on June 25,
2003.

For further information regarding the Bank and its rights
offering, please contact the Information Agent for this offering,
MacKenzie Partners, Inc., at (800) 322-2885, or call collect at
(212) 929-5500.

To obtain a written prospectus meeting the requirements of
Section 10 of the United States Securities Act of 1933, as
amended, please contact the Information Agent or:

     Carlos Yap S.
     Senior Vice President, Finance
     BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
     Head Office
     Calle 50 y Aquilino de la Guardia
     Apartado 6-1497 El Dorado
     Panama City, Republic of Panama
     Tel No. (507) 210-8581
     Fax No. (507) 269 6333
     E-mail Internet address: cyap@blx.com
    -- or --
     William W. Galvin
     The Galvin Partnership
     76 Valley Road
     Cos Cob, CT  06807
     U.S.A.
     Tel No. (203) 618-9800
     Fax No. (203) 618-1010
     E-mail Internet address: wwg@galvinpartners.com



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

SIDERPERU: Asks AGR Trustees To Call Meeting Of Creditors
---------------------------------------------------------
Peruvian steelmaker Siderperu asked the trustees of its global
restructuring agreement (AGR), dated April 24 last year, to call
a meeting of its creditors to discuss the restructuring of
certain payments agreed in the AGR, Business News Americas
reports.

According to the Company, the goal of the restructuring was to
give "adequate priority" to the Company's providers that would
result in greater operational cash flow.

The proposal includes postponing a payment to general financial
creditors of fixed quotas that fall on June 30, September 30 and
December 30, Siderperu said.

The company noted that to date it has paid a total of US$28mn
under the AGR, made up of US$13mn this year and US$15mn in 2002.

Meanwhile, the firm told the Lima stock exchange that its
bondholders are scheduled to meet June 25 to discuss a report on
the Company's progress and future prospects, and "other issues of
interest."



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Consummates $500M Notes Offering
-----------------------------------------------------------
Centennial Communications Corp. ("Centennial" or the "Company")
(NASDAQ: CYCL) announced Friday that it has closed on its
previously announced offering of $500 million of 10 1/8% senior
unsecured notes due 2013 issued in a private placement
transaction. The senior notes are co-issued by Centennial
Communications Corp. and Centennial Cellular Operating Co. LLC
and guaranteed by Centennial Puerto Rico Operations Corp.

In addition, the Company announced Friday that it has entered
into an amendment to its senior credit facility which provides
the Company with additional flexibility under the financial and
other covenants in the credit facility. Net proceeds of the notes
offering were used to permanently repay $300 million of the term
loans under the Company's senior credit facility and the balance
of the net proceeds were used to repay amounts outstanding under
the revolving portion of the senior credit facility and to pay
fees and expenses related to the transactions.

"I am very pleased that we were able to consummate this bank
amendment and ten-year financing transaction," said Michael J.
Small, chief executive officer. "I believe these transactions
provide a solid financial foundation for the profitable growth of
our U.S. Wireless and Caribbean businesses."

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.1 million Net Pops and
approximately 929,700 wireless subscribers. Centennial's U.S.
operations have approximately 6.0 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.1 million Net Pops in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands, and provides voice, data,
video and Internet services on broadband networks in the region.
Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone
Group are controlling shareholders of Centennial. For more
information regarding Centennial, please visit our websites at
www.centennialcom.com and www.centennialpr.com.

CONTACT:  Centennial Communications Corp., Wall
          Thomas J. Fitzpatrick
          732-556-2220


ENRON: Gas Natural To Buy Puerto Rican Asset For $130M
------------------------------------------------------
Gas Natural SDG SA, Spain's largest natural gas company, informed
the CNMV securities regulator that it agreed to buy a gas fired
power plant in Puerto Rico from bankrupt U.S.-based energy trader
Enron Corp. for US$130 million.

The Barcelona-based company will buy Enron's 50% stake in
EcoElectrica Holdings Ltd., which owns a 540-megawatt gas-fired
power station and a plant that converts liquefied natural gas
into gas for sale to consumers.

US company Edison International owns the other 50% in
EcoElectrica through its Edison Mission Energy unit.

According to Gas Natural, the deal was an important step in its
policy of overseas expansion, which has already seen it reach 3.9
million clients in Latin America.

In a shareholders' meeting Monday, the company said it plans to
invest EUR850 million (today US$981 million) in Latin American
expansion, especially in Mexico and Brazil, in 2003-2007,
increasing the number of clients to 5.7 million by 2005. By the
same date, it plans to increase sales to 214,000GWh from
126,000GWh in 2002.



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

* Uruguay: IMF Managing Director Issues Statement
-------------------------------------------------
Mr. Horst K”hler, Managing Director of the International Monetary
Fund (IMF), issued the following statement on Monday in
Montevideo:

"This is my first visit to Montevideo as IMF Managing Director.
The visit has provided my colleagues and myself a valuable
opportunity to obtain a closer understanding of Uruguay's
economic outlook and discuss the regional economic situation.
Yesterday, I had the privilege of meeting with President Batlle
and his economic team-Minister Atchugarry, Central Bank President
de Brun, and other senior officials. I also met with political
leaders and representatives of the banking and business
community.

"I commended President Batlle on his government's firm pursuit of
sound economic policies that has improved the economic and
financial situation in Uruguay. In the face of severe economic
shocks, the government has resolutely maintained prudent fiscal
and monetary policies, as well as Uruguay's traditionally strong
legal and institutional framework. This firm resolve has
significantly contributed to the success of Uruguay's recent
landmark debt exchange. Helped by strengthened policies, and an
improving outlook in several other countries in the region,
Uruguay's economy should return to positive growth in the second
half of 2003.

"Uruguay now faces the challenge of consolidating these
achievements to ensure sustained growth. Improving Uruguay's
competitiveness and trade share in today's globalized world, and
nurturing new areas of growth, are core to this challenge. The
task has a number of dimensions that were the subject of our
discussions. There was broad recognition of the need to build a
strong intermediation role for the banking system, streamline the
public sector and improve its savings and efficiency, and attract
new private investments by making the business climate fully
supportive-while retaining a well targeted social safety net that
is consistent with fiscal capacity. There was agreement with the
political and economic groups with whom I met of the need to
build a strong domestic consensus for such structural changes
that would decisively improve the living standards of all
Uruguayans.

"I also discussed with President Batlle the regional and global
outlook. We agreed that the regional outlook has improved,
underpinned by strengthened policies in a number of countries to
advance stabilization, fiscal sustainability, and structural
reforms while paying attention to well-targeted social spending.
I conveyed to President Batlle the IMF's unwavering commitment to
work with the region to build strong growth with improved equity.

"I congratulate the Uruguayan people and their government for
their firm commitment to taking the necessary steps to surmount
the recent crisis and foster the resumption of growth. The IMF is
proud to have been able to play a part in this process, and we
look forward to continuing strong cooperation with the
authorities. In that respect, the next step will be consideration
by the Executive Board of the Fund of the third review under the
Stand-By Arrangement, and I am hopeful that this review will be
completed by mid-July."

CONTACT:  IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs:
          Phone: 202-623-7300
          Fax: 202-623-6278

          Media Relations:
          Phone: 202-623-7100
          Fax: 202-623-6772



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

CANTV: Court Ditches Suit Filed by Multiphone
---------------------------------------------
It was good news for CA Nacional Telefonos de Venezuela SA,
Venezuela's largest telephone company, when a high court threw
out a lawsuit filed against it by a certain company.

Business News Americas recalls that long distance operator
Multiphone sued Cantv because it refused to renew an
interconnection agreement. But Cantv defended its move, saying
Multiphone had failed to pay an outstanding bill of VEB3 billion
(US$1.9 million today) for interconnection services, necessary
for Cantv clients to select Multiphone as their preferred
carrier.

Cantv also revealed that Multiphone owes it VEB40 million for
commercial services rendered.


PDVSA: Reiterates Plans To Open Service Stations in Argentina
-------------------------------------------------------------
Citgo, the international downstream distribution unit of
Venezuela's state oil company PDVSA, is studying at present the
economic situation in Argentina as part of the parent company's
plan to invest US$80 million in that country beginning September.

Business News Americas recalls that PDVSA has been planning to
open a chain of about 400 service stations in Argentina but had
to postpone the project twice: first, because of the Argentine
economic crisis in late 2001, and again last year due to the
national strike in Venezeula.

According to local newspaper Infobae, PDVSA plans to open 30-40
service stations in Argentina after the September launch, and
that it is negotiating a fuel supply contract with one of
Argentina's main refiners.


SIDOR: Accomplishes Financial Restructuring
-------------------------------------------
ALFA announced Monday the closing of a financial restructuring of
Sidor, a non-consolidated affiliated company in the Venezuelan
steel industry, by means of which Sidor has improved its
financial condition.

According to the terms and conditions of the agreement signed
between Sidor, Amazonia, a group of creditor banks and the
Venezuelan Government, Sidor's total debt was reduced from
US$1,883 million, to US$ 791 million. The restructured debt is
comprised of the following tranches:

1) US$ 350.5 million, to be repaid in 8 years, with one year of
grace.
2) US$ 26.3 million, to be repaid in 12 years, one of grace.
3) US$ 368.6 million, to be repaid in 15 years, one of grace.

Another US$ 45.4 million owed by Sidor to certain Venezuelan
government-owned suppliers will be repaid over five years.

As a part of the agreement, shareholders in Amazonia contributed
to the recapitalization of Sidor with fresh resources in the
amount of US$ 133.5 million through convertible debt in Amazonia.
ALFA's share of that amount was US$ 15 million.

Apart from this amount, Hylsamex capitalized US$ 41.5 million
owed to it by Amazonia, after which its stake in Amazonia amounts
to 36.73%.

As a result of the capitalization, the Venezuelan Government
increased its stake in Sidor from 30.0% to 40.3%. Upon occurrence
of the capitalization of Amazonia's convertible debt, Hylsamex's
ownership in Amazonia will be 12.0%, while ALFA's will be 7.5%.

Another important agreement involved the cancellation of all
guarantees granted by the shareholders in Amazonia, which were
replaced with a security on the fixed assets of Sidor, together
with pledges on the shares in Amazonia and the shares that
Amazonia holds in Sidor, for the benefit of the Venezuelan
Government and Sidor's financial creditors.

CONTACT:  Enrique Flores
          Tel: 011 52 81 8748 1207
          Email: eflores@alfa.com.mx


SIDOR: Tenaris Issues Comments on Debt Restructuring
----------------------------------------------------
Tenaris S.A. (NYSE:TS) (Buenos Aires:TS) (BMV:TS) (MTA
Italy:TEN), announced Monday that its associated companies,
Consorcio Siderurgia Amazonia Ltd. (Amazonia) and Siderurgica del
Orinoco C.A. (Sidor), have reached an agreement with their
financial creditors and the Venezuelan government relating to the
restructuring of Sidor's and Amazonia's financial debt.

Under the terms of the agreements, Sidor's and Amazonia's
aggregate financial debt has been reduced from US$1,883 million
to US$791 million. Certain Amazonia shareholders have contributed
US$133.5 million in cash to a newly created company for the
acquisition and capitalization of Sidor's and Amazonia's
financial debt.

The government of Venezuela has increased its participation in
Sidor from 30% to 40.3% and all the guarantees provided by the
shareholders of Amazonia with respect to loans made to Sidor have
been released and replaced with a security on the fixed assets of
Sidor which, together with the pledges on the shares of Amazonia
and the shares that Amazonia holds in Sidor, have been placed in
trust for the benefit of Sidor's financial creditors and the
Venezuelan government. In addition, a portion of Sidor's excess
cash (determined in accordance with an agreed-upon formula) will
be applied to repay Sidor's financial debt and the remainder will
be distributed to the Venezuelan government and the newly created
company referred to above.

Tenaris's subsidiary, Tubos de Acero de Mexico S.A. (AMEX: TAM)
(BMV:TAMSA) (Tamsa), has participated in this restructuring
agreement by making an aggregate cash contribution (mainly in the
form of new subordinated convertible debt) of US$32.9 million to
the newly created company and by capitalizing in Amazonia
convertible debt previously held by Tamsa in the amount of
US$18.0 million plus accrued interest. Tamsa's indirect
participation in Amazonia has increased from 14.1% to 14.5% and
may further increase up to 21.2% if and when all of its new
subordinated convertible debt is converted into equity.

Sidor's remaining financial debt is now made up of three
tranches, one of US$350.5 million to be repaid over 8 years with
one year of grace, one of US$26.3 million to be repaid over 12
years with one year of grace and the remaining tranche of
US$368.6 million, to be repaid over 15 years with one year of
grace. In addition, Sidor's commercial debt with certain
Venezuelan government-owned suppliers has been fixed in the
amount of US$45.4 million, to be repaid over the next five years.

As a result of this restructuring, Tenaris, through its
subsidiary, Tamsa, has retained participation in a business with
competitive costs and an improved financial structure that will
continue to supply the steel bars used as raw material for
Tenaris's seamless pipe operations in Venezuela.

Tenaris is a leading global manufacturer of seamless steel pipe
products and provider of pipe handling, stocking and distribution
services to the oil and gas, energy and mechanical industries and
a leading regional supplier of welded steel pipes for gas
pipelines in South America. Organized in Luxembourg, it has pipe
manufacturing facilities in Argentina, Brazil, Canada, Italy,
Japan, Mexico and Venezuela and a network of customer service
centers present in over 20 countries worldwide.


* Venezuela: Fitch Upgrades Sovereign Ratings to 'B-'
-----------------------------------------------------
Fitch Ratings upgraded Monday the Bolivarian Republic of
Venezuela's long-term foreign currency rating to 'B-' from
'CCC+'and its long-term local currency (Venezuelan bolivar)
rating to 'B-' from 'CCC'. These rating actions reflect the
government's success in getting oil production back up to levels
achieved prior to the national strike earlier this year, thereby
relieving public financing pressures. Furthermore, voluntary
domestic debt swaps and recent external bond payments have
mitigated concerns about debt service willingness over the near
term. The Rating Outlook is Stable.

The Venezuelan government's near-term financing outlook has
improved given the resumption of oil production and the measures
implemented to avoid a liquidity crisis. Fitch believes that the
risks of further oil production disruptions have been reduced due
to the failure of the strike to achieve its objectives and
increased government control over PdVSA. Yet the highly polarized
social situation and severe economic contraction could provide
future political challenges, including sporadic outbursts of
social unrest.

In the midst of an unprecedented political confrontation, which
has translated into one of Venezuela's worst economic declines in
recent history, the government has met all of its debt
obligations. In this environment, the government made a US$275
million payment on its Brady bond obligations last week. At the
onset of the national strike, Fitch was concerned that pressures
on the government's capacity to service its debt as a result of
oil revenue losses could ultimately affect its willingness to
pay. To its credit, the government reduced its 2003 budget by 10%
and has been under-executing this revised budget by 40%. Similar
to the authorities' projections, Fitch expects the central
government deficit to reach 1.8% of GDP this year, compared with
3.4% of GDP in 2002, representing a significant fiscal
adjustment. However, a collapse of more than 50% in non-oil
revenues combined with increased spending pressures, due either
to the deteriorating social situation or a ramp-up in
expenditures prior to a referendum and/or early elections, cannot
be ruled out. The authorities continued to conduct market-based
domestic debt swaps, extending close to US$754 million in DPN
maturities over the medium-term. In addition, the authorities
have been successful in securing new financing through private
placements, which could reach US$950 million in 2003.

Venezuela's debt service capacity remains strong relative to
similarly rated sovereigns and has been strengthened with the end
of the oil strike. Since the implementation of capital controls
and the resumption of oil exports, the country's international
reserves have increased from a low of US$13.5 billion in January
to US$16.5 billion in mid-June. At 153% (not including assets in
the macroeconomic stabilization fund, the FIEM), Venezuela's
external liquidity ratio currently exceeds the 123% median of
'B/C/D' rated countries. Assuming capital controls are not
liberalized this year, this ratio could increase to an estimated
224% by year-end. Including an estimate for the loss of revenue
due to the halt in oil exports, Venezuela's expected current
account surplus position in 2003 will still be more than enough
to cover its external amortizations and stock of short-term
external debt this year, which Fitch estimates at about US$6.6
billion. The government should not have any difficulty meeting
its financial requirements for the remainder of 2003. External
amortizations amount to US$915 million, while domestic
amortizations are about US$1 billion in the second half of this
year.

Although recent changes to macroeconomic policy, including a
fixed exchange rate and capital controls, have strengthened the
government's ability to service its debt, the non-oil private
sector is paying the cost of these measures. Future upgrades
would be dependent on a viable resolution of the political crisis
and improvements in the government's macroeconomic policy
framework.

A comment detailing Fitch's analysis for this rating upgrade will
be available shortly.

CONTACT:  Theresa Paiz Fredel
          New York
          Phone: +1-212-908-0534
             or
          Roger M. Scher
          New York
          Phone: +1-212-908-0240

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540




               ***********


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

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

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

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