TCRLA_Public/030716.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, July 16, 2003, Vol. 4, Issue 139

                          Headlines


A R G E N T I N A

ACINDAR: Tops Stock Winners List This Year
ACINDAR: Antidumping Probe Demanded by Industry Association
CELINA Y ASOCIADOS: Court Declares Bankruptcy Official
CENTRAGAS: S&P Affirms Rating; Changes Outlook to Stable
COMPLEJO ROXINI: Court Affirms Bankruptcy

DISTRIBUTION SYSTEMS: Bankruptcy Declared by Local Court
ESTELAR SAN LUIS: Court Announces New General Report Deadline
EXPRESO MASER: Court Declares Bankruptcy
INSTITUTO GALILEO: Deemed Bankrupt By Court
LUIS ROMERO: Court Orders Bankruptcy

MULTIRED: Acuerdo Preventivo Accepted
SPREAFICO: Court Sets New Deadline For General Report
SUENO ESTELAR: New General Report Date Announced


B E R M U D A

GLOBAL CROSSING: Court Grants 5th Exclusivity Period Extension


B R A Z I L

BESC: To Continue Reporting Red in 1H03
BRAZILIAN TELECOMS: S&P Says Ratings Unaffected By Court Ruling
GERDAU: Inks Technical Deal With Rio Grande Do Sul Government


C H I L E

COEUR D'ALENE: Reports Further $34M Reduction in Debt
ENDESA CHILE: Moody's Confirms Ba3 Rating On Notes, Bonds


C O L O M B I A

* S&P Revises Outlook on Colombia's Long-Term Ratings to Stable


D O M I N I C A N   R E P U B L I C

BANINTER: Fitch Withdraws Ratings as BanInter Disintigrates


E C U A D O R

PROFUTURO: Regulator Forecasts Liquidation in Two Months


M E X I C O

AZTECA HOLDINGS: Exchange Offers Officially Expire
GRUPO IUSACELL: Board Silent On Paging Company's Offer
TELSCAPE COMMUNICATIONS: Lowers Call Rates To Mexico
TV AZTECA: Announces Encouraging 2Q Estimate


P E R U

SIDERPERU: Indecopi Denies Request To Hold Creditors' Meeting


V E N E Z U E L A

CANTV: Slams Government's First Half Statistics on FDI
PDVSA: Deltana Winners To Be Named Soon
PDVSA: President Chavez Reports Decrease In Production Costs


     - - - - - - - - - -


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

ACINDAR: Tops Stock Winners List This Year
------------------------------------------
Acindar Industria Argentina de Aceros SA stock is the best
performer among 51 countries and Europe tracked by Bloomberg.
According to Bloomberg, the Company's shares have almost tripled
this year to lead the benchmark Merval index to a 65% gain in
dollar terms. Investors are betting Acindar will benefit from
US$2.9 billion in government spending on roads and housing this
year.

President Nestor Kirchner is working to pull the Argentine
economy out of its worst slump on record and construction is the
centerpiece of his plan to lower the 18% unemployment rate in the
country.

The industry has also been buoyed by a rebound in the currency,
which has bolstered consumer confidence and prompted many
Argentines to invest in renovating their homes. The peso is up
22% against the dollar this year after a 70% plunge last year led
to a 28% decline in construction.

Acindar's stock closed Friday at ARS2.13, up from 84 centavos at
the end of last year, giving it the biggest advance of the 14
stocks in the Merval index.

The rising stock is also attributed to a surge in Acindar's
exports after the devaluation and an agreement with creditors to
restructure debt it defaulted on.

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

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


ACINDAR: Antidumping Probe Demanded by Industry Association
-----------------------------------------------------------
The Brazilian tube and metal parts industry association Abitam is
preparing a request for the Brazilian government to open an
antidumping investigation into Argentine steelmaker Acindar,
Business News Americas reports, citing Sao Paulo business daily
Valor Economico.

"We are working to present the request this month," Abitam head
Jose Adolfo Siqueira said.

Abitam accused Acindar, Argentina's largest long steelmaker, for
dumping welded pipes on the furniture and civil construction
markets.

Acindar is yet to finalize a response to the accusation for lack
of concrete information, according to spokesperson, Gustavo
Pittaluga. Abitam has not provided prices at which Acindar sold
its tubes in Brazil.

However, market sources say the Argentine company was selling at
US$300/t, compared to Brazilian competitors' US$520/t. The pipes
are distributed by Belo Horizonte-based steelmaker Belgo-Mineira,
which has a 20.4% stake in Acindar.

Ibrahim Abrahao Chaim, the head of sales at Belgo, countered that
the tubes were sold at over US$500/t.

"It would be extreme stupidity to bring tubes from other
countries and sell them below the price of production in the
local market," he said.


CELINA Y ASOCIADOS: Court Declares Bankruptcy Official
------------------------------------------------------
Court No. 21 of Buenos Aires announced the bankruptcy of Celina y
Asociados S.R.L., according to local news source Infobae. The
Court assigned Mr. Jose Salem Ini as receiver for the
proceedings. Credit claims will be verified until November 12
this year.

CONTACT:  Celina y Asociados
          Montiel 5078
          Buenos Aires

          Mr. Jose Salem Ini
          Presidente Peron 1730
          Buenos Aires


CENTRAGAS: S&P Affirms Rating; Changes Outlook to Stable
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' foreign
currency rating on US$172 million senior secured notes due 2010
issued by Centragas-Transportadora de Gas de la Region Central de
Enron Development and Cia. S.C.A. (Centragas). The outlook is
changed to stable from negative. The stable outlook reflects that
of the Republic of Colombia.

The rating on Centragas reflects the risks of a one-source
revenue stream, the non-investment grade off-taker, the liquidity
risk from Centragas' bondholders put option, and the non-recourse
to either the sponsors or off-taker. However, an adequate tariff
structure and on-time payment record from Ecopetrol, the
bankruptcy-remote structure that isolates Centragas from its
parents, as well as a healthy operation and debt service coverage
record partially offset the above-mentioned weaknesses.


COMPLEJO ROXINI: Court Affirms Bankruptcy
-----------------------------------------
Complejo Roxini S.A. was declared bankrupt by Court No 15 of
Buenos Aires. According to local news source Infobae, the Buenos-
Aires based company is now under administration of Ms. Mabel
Lopez, who was assigned receiver by the Court. Creditors must
have their credit claims verified before the September 11
deadline, said the report.

CONTACT:  Complejo Roxini S.A.
          Tacuari 566
          Buenos Aires

          Ms. Mabel Lopez
          Murguiondo 3607
          Buenos Aires


DISTRIBUTION SYSTEMS: Bankruptcy Declared by Local Court
--------------------------------------------------------
Buenos Aires-based company Distribution Systems, S.A. is now in
the hands of its receiver, Mr. Edgardo Alberto Borghi, following
a ruling by Court No. 25 that put the Company under bankruptcy.

The receiver is scheduled to verify claims until September 3 this
year. The individual reports will be filed on October 15 while
the general report will be on November 26 this year.

CONTACT:  Mr. Edgardo Alberto Borghi
          Luis Valle 2176
          Buenos Aires


ESTELAR SAN LUIS: Court Announces New General Report Deadline
-------------------------------------------------------------
Court No. 22 of Buenos Aires announced that the new deadline for
the general report (Article 39) for the reorganization of Estelar
San Luis S.A. is August 4 this year. The Informative audience
will be on November 3, Infobae says, without revealing if the
Court has assigned a receiver for the process.


EXPRESO MASER: Court Declares Bankruptcy
----------------------------------------
Court No. 24 of Buenos Aires announced the bankruptcy of local
company Expreso Maser S.A., relates Infobae. With assistance from
Secretary No. 47, the Court assigned Mr. Jorge Tomas Byrne as
receiver.

Creditors must have their claims verified by August 8 this year,
as the receiver is scheduled to file the individual reports on
October 10. The general report is expected to be submitted on
November 10.

CONTACT:  Jorge Tomas Byrne
          Piedras 1319
          Buenos Aires


INSTITUTO GALILEO: Deemed Bankrupt By Court
-------------------------------------------
Instituto Galileo S.A. was declared bankrupt by Court No. 21 of
Buenos Aires, according to local news source Infobae. Mr. Juan
Carlos Facoltini takes charge of the Company as designated
receiver.

The deadline for verification of credit claims is November 26
this year. The receiver will submit the individual and the
general reports on February 16 and March 30, 2003, respectively.

CONTACT:  Mr. Juan Carlos Facoltini
          Bernardo de Irigoyen 330
          Buenos Aires


LUIS ROMERO: Court Orders Bankruptcy
------------------------------------
Court No. 9 of Buenos Aires ruled that local company Luis Romero
S.R.L. be put under bankruptcy. The receiver, Mr. Mario Eduardo
Guimpel, will verify credit claims until August 28 this year. The
individual reports will be submitted on October 9, while the
general report will be submitted on November 25 this year.

CONTACT:  Mr. Mario Eduardo Giumpel
          Parana 768
          Buenos Aires


MULTIRED: Acuerdo Preventivo Accepted
-------------------------------------
Multired S.A.'s "Acuerdo Preventivo" has been accepted by Court
Juzgado N§13, Secretar¡a N§26, reports Infobae. The agreement
allows the Company, a credit cards service provider, to avoid
having to go through a "Concurso Preventivo" process.


SPREAFICO: Court Sets New Deadline For General Report
-----------------------------------------------------
Buenos Aires Court No. 22 moved the deadline for the general
report of Spreafico S.A.I.C. to August 4, 2003. The Company is
currently under "Concurso Preventivo". Infobae relates that the
informative audience, which is part of the reorganization
process, will be on November 3, 2003.


SUENO ESTELAR: New General Report Date Announced
------------------------------------------------
The general report on the reorganization process which Argentine
company Sueno Estelar is undergoing, will be filed on August 4,
2003, announced Court No. 22 of Buenos Aires. The corresponding
informative assembly will be on November 3 this year, said
Infobae. The Company is currently undergoing reorganization after
its "Concurso Preventivo" filing.



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B E R M U D A
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GLOBAL CROSSING: Court Grants 5th Exclusivity Period Extension
--------------------------------------------------------------
Judge Gerber believes that terminating the Global Crossing
Debtors' exclusive periods would have the potential for serious
prejudice to creditors. There is at least a risk, if not
certainty, that terminating exclusivity now -- particularly when
it would not be for the purpose of permitting a creditor
constituency to file a competing plan, but rather to facilitate a
competing bid - would send the wrong message, and could damage
the regulatory approval process that is so important to all
creditors, or, at least, all creditors other than those who are
bidders.

Accordingly, Judge Gerber extends the Exclusive Filing Period to
the earlier of October 28, 2003, or in the event the Purchase
Agreement is terminated in accordance with its terms, two weeks
from the date of termination. The Exclusive Solicitation Period
is also extended until 60 days after the Extended Exclusive
Filing Period. (Global Crossing Bankruptcy News, Issue No. 43;
Bankruptcy Creditors' Service, Inc., 609/392-0900)



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

BESC: To Continue Reporting Red in 1H03
---------------------------------------
Brazil's Santa Catarina state bank Besc is yet to recover
financially, as it is still writing off bad loans from previous
administrations and facing lawsuits related to the layoff of
4,400 people in 2000.

Citing Besc's chief executive Eurides Mescolotto, Business News
Americas reports that the bank expects to report a net loss of
BRL15 million (US$5.23mn) in the first half, compared to a profit
of BRL38 million in the same period last year.

The executive revealed that the bank's net worth, which
corresponds to total assets minus total liabilities, stood at
BRL98 million at the end of May. Provisions of BRL36 million are
enough to prevent bad loans and lawsuits dragging net worth to
the red, he said.

Besc reported a net loss of BRL980 million last year after it
spent BRL800 million on labor lawsuits and paid BRL400 million it
owed its employees' pension fund.


BRAZILIAN TELECOMS: S&P Says Ratings Unaffected By Court Ruling
---------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that the
provisional decision on price readjustments by Brazil's Supreme
Court of Justice does not have an immediate impact on the ratings
of Tele Norte Leste Participacoes S.A. (TNL, local currency:
BB/Stable/--; foreign currency: B+/Stable/--; national scale:
brAA/Stable/--), or Brasil Telecom Participacoes S.A. (national
scale: brAA/Stable/--) and its parent, Brasil Telecom S.A. (BRT,
national scale: brAA/Stable/--). The provisional ruling approves
the usage of the IPCA index (Ample Consumers' Price Index)
instead of the IGP-DI (General Inflation Index) to readjust
prices set by the fixed-line telephone incumbents.

This decision allows Brazilian fixed-line incumbents to readjust
its prices at an average rate of 17.24% (maximum of 23.95% for
non-residential clients), instead of 28.75% (maximum of 41.75%)
as previously calculated by the concession contracts and approved
by the regulatory body - ANATEL.

Although the decision has a direct negative impact on Brazilian
incumbents' projected cash flow, cash flow protection measures
should remain adequate for the rating category. Both companies
hold conservative financial profiles, and should continue to
generate sufficient cash flow to cope with their maturities in
the near future. Moreover, TNL and BRT ratings have been somewhat
conservative for their current financial profile, to reflect
Standard & Poor's concerns on the continuing regulatory risks in
the local telecom industry.

Until now, despite the many discussions regarding the fixed-line
tariff revision, ANATEL has kept its independence and contracts
have been maintained. To maintain the credibility of the
Brazilian telecommunications regulatory environment and
investors' confidence in the industry, it is important that the
Supreme Court quickly rule on the matter and continue to respect
contractual clauses. On the other hand, the court's countrywide
provisional ruling (if maintained) overlaps all previous verdicts
from Juvenile Courts, which should facilitate the incumbents'
defense and the negotiations with the Federal Government.


GERDAU: Inks Technical Deal With Rio Grande Do Sul Government
-------------------------------------------------------------
Brazilian long steel group Gerdau and the state government of Rio
Grande do Sul, where Gerdau is based, struck a technical
cooperation agreement, Business News Americas reports, citing a
spokesperson.

The accord, which was signed by state governor Germano Rigotto
and Gerdau Chairman Jorge Gerdau Johannpeter, is aimed at
developing joint actions and programs aimed at modernizing public
services, reduce waste of public resources and improve efficiency
of government operations.

Gerdau is the largest long steel producer in the Americas with
installed capacity of 14Mt/y.



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

COEUR D'ALENE: Reports Further $34M Reduction in Debt
-----------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer, announced Monday that it has reduced the
Company's outstanding convertible indebtedness by an additional
$34 million. That amount represents a 66% reduction in Company-
wide debt since the end of the first quarter of 2003. After these
recent debt reductions, the Company's convertible indebtedness
due in December 2003 and 2004 totals $15.2 million. Coeur's cash
and cash equivalents as of June 30, 2003 was $19.8 million.

Since the beginning of 1998, Coeur's total debenture indebtedness
has been reduced from $288.6 million to the current $28.9
million.

"Coeur is pleased to announce additional meaningful reductions in
the Company's remaining indebtedness, further strengthening our
balance sheet and essentially completing the major restructuring
begun five years ago," said Dennis E. Wheeler, Chairman and Chief
Executive Officer. "The timing of this debt reduction is also
beneficial to current shareholders since Coeur is issuing less
shares now than if the convertible notes had been held to full
maturity.

"Meanwhile, our cash position remains strong, with nearly $20
million of cash and equivalents as of the end of June. This
allows us to aggressively pursue our growth strategy, led by
Coeur's new generation of high grade/low cost mines in South
America, which have combined to fuel our production growth, lower
cash costs, and significantly improve Coeur's cash-flow profile,"
Mr. Wheeler added.

The transactions involved the conversion of 27.5 million shares
of common stock for $32.6 million principal amount of the
Company's 9% Senior Subordinated Notes due February 2007. The
exchange of the 9% Senior Subordinated Notes resulted in a 1.1
million share reduction in the number of shares that would have
been issued had the Notes been outstanding until maturity. In
addition, the Company exchanged .4 million shares of common stock
for $0.5 million principal amount of 6.375% Convertible
Subordinated Debentures due January 2004, and the exchange of .6
million shares of common stock for $0.8 million principal amount
of 7.25% Convertible Subordinated Debentures due October 2005 in
privately negotiated transactions.

After taking these exchanges and other recent conversions into
account, Coeur now has approximately 178.6 million shares
outstanding. Additional information will be presented in a
Current Report on Form 8-K to be filed by Coeur with the SEC.

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: 208-665-0335


ENDESA CHILE: Moody's Confirms Ba3 Rating On Notes, Bonds
---------------------------------------------------------
Moody's Investors Service confirmed the Ba3 rating of Endesa
Chile S.A's senior unsecured notes and bonds, and revised the
outlook to positive from stable. Simultaneously, Moody's assigned
a rating of Ba3 to Endesa Chile's ten-year, US$200 million of
proposed senior unsecured notes. The rating outlook is positive.

Moody's explained that the change in outlook recognizes the
potential for credit improvement arising from continued
implementation of the Company's program to sell assets and reduce
debt.

In the past four months, Endesa Chile has sold generation,
transmission and infrastructure assets totaling over US$300
million, reduced its debt to US$4.4 billion, and secured a US$743
million bank credit facility.

But while these developments underpin a better credit outlook and
afford the Company a slightly greater degree of flexibility in
the near term, Endesa Chile remains subject to business segment
risk in Argentina and Brazil, financial performance remains weak,
and the Company continues to face foreign exchange volatility
risk as a substantial portion of its high debt burden is
denominated in US dollars, said Moody's.

Endesa Chile, an electric generation company with operations in
Chile, Peru, Columbia, Brazil, and Argentina, is owned 60% by
Enersis S.A., which is, in turn, owned 65% by Spanish company
Endesa S.A..



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

* S&P Revises Outlook on Colombia's Long-Term Ratings to Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that it revised
its outlook on its 'BBB' long-term local and 'BB' long-term
foreign currency sovereign ratings on the Republic of Colombia to
stable from negative. The outlook change reflects improved fiscal
performance, higher growth prospects and better security in the
country.

According to sovereign analyst Richard Francis, the economic
measures in the upcoming fall 2003 national referendum are
expected to pass, given the overwhelming popular support that
President Alvaro Uribe commands (nearly 70%). "The spending
freeze and pension measures contained in the referendum are
crucial to further fiscal consolidation, which is needed to
stabilize the government's adverse debt dynamics," said Mr.
Francis. "With the measures, the general government deficit is
expected to decline to 3.6% of GDP in 2003 from 5.2% in 2002, and
general government debt to stabilize at close to 53% of GDP," he
added.

After five years of lackluster growth averaging just 0.4%, the
country's economic growth prospects have improved. Growth is now
projected at 2.5% in 2003 and over 3.0% in 2004. Improved growth
prospects largely reflect the successes of President Uribe's
strategy of improving national security while maintaining
macroeconomic stability.

"Despite the improved outlook, significant challenges remain in
maintaining fiscal discipline due to greater-than-expected
slippage in the area of pensions and the need for significant
outlays in military spending," Mr. Francis said. "If there is
significant fiscal slippage or sharp deterioration in the
nation's security, there could be renewed downward pressure on
the government's creditworthiness. On the other hand, fiscal
prospects improve further and the debt and interest burdens
decline, the ratings could improve," he concluded.



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

BANINTER: Fitch Withdraws Ratings as BanInter Disintigrates
-----------------------------------------------------------
Fitch Ratings, the international rating agency, has withdrawn
Banco Intercontinental's (BanInter) long-term foreign currency
rating of 'B', short-term foreign currency rating of 'B',
individual rating of 'E' and support rating of '4T'. This action
follows the July 7, 2003 resolution by the Junta Monetaria, the
Dominican Republic's highest financial regulatory body, to revoke
BanInter's authorization to continue operating. This resolution
authorizes the Dominican Republic's banking superintendence to
dissolve BanInter on the grounds of dubious accounting practices
that led to its intervention and of its financial deficiencies,
including insufficient liquidity, poor asset quality and
insufficient capital.

BanInter was the third largest bank in the Dominican Republic,
with a market share of around 13% at end-2002. The bank was
family-owned, with its majority shareholders, the Baez family,
having interests in news media and insurance, among other
sectors. On April 7, 2003, the financial authorities of the
Dominican Republic announced the intervention of BanInter. That
action in effect revoked a previous agreement signed on March 24,
2003, whereby the shareholders of Banco del Progreso, the
country's seventh largest private commercial bank, had stated
their intention of purchasing BanInter. The intervention was
triggered by the uncovering of illicit accounting practices at
BanInter, which resulted in a substantially underestimated
balance sheet, while excess (off-balance) funding was reportedly
being used to finance the controlling shareholder's other
businesses. Recently, the authorities announced that an agreement
has been signed with Canada's Bank of Nova Scotia whereby the
latter will buy from the government a portion of BanInter's
assets, including its credit card business and a number of its
branches, while re-hiring a portion of the extinguishing bank's
staff.

In July 2002 Fitch downgraded the individual rating of BanInter
from 'C/D' to 'D', on the basis of a tight capital base following
years of rapid growth. The bank's Long-term rating of 'BB-' was
maintained following the intervention by the authorities as the
bank's deposits were guaranteed and are still being honored by
the state. However, the bank's long-term foreign currency rating
was downgraded to 'B' on June 17, 2003 in common with the long-
term ratings of other Dominican banks as systemic risks rose due
to the rapid deterioration of the economic and operating
environment and fears that this could require that authorities
provide further support to the system at a time when its ability
to do so was under strain following the BanInter intervention.

CONTACT:  Franklin Santarelli +58 212 286 3356, Caracas
          Carlos Fiorillo +58 212 286 3232, Caracas
          Gustavo Lopez +1-212-908-0853, New York
          Peter Shaw +1-212-908-0553, New York

MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York



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E C U A D O R
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PROFUTURO: Regulator Forecasts Liquidation in Two Months
--------------------------------------------------------
El Salvador's pension regulatory agency expects to complete the
liquidation of local pension fund manager Profuturo in September
or October this year, Business News Americas reports, citing
deputy pension regulator Fransisco Sorto.

The official also revealed that the regulator expects to appoint
a chief liquidator this month and will allow Profuturo's
affiliates a 90-day grace period to voluntarily migrate to one of
the two remaining pension fund managers AFP BBVA Crecer and AFP
Confia. Affiliates who fail to decide within the 90-day period
will be assigned a new pension fund manager by the regulator.
Some US$4 million in pension funds will accompany the affiliates
in the migratory process.

Profuturo, a very small operation owned by local businessmen, was
intervened by the Salvadorian authorities in June 2000 on
solvency woes.



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

AZTECA HOLDINGS: Exchange Offers Officially Expire
--------------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca, S.A. de C.V. (NYSE: TZA), one of the two largest
producers of Spanish language television programming in the
world, announced that as of 5:00 p.m. on July 11, 2003, the
expiration date of the exchange offers for its 10 1/2% Senior
Secured Notes due 2003 and its 10 3/4% Senior Secured Amortizing
Notes due 2008, approximately US$33,698,000 in aggregate
principal amount of the 10 1/2% notes and approximately
US$62,541,000 in aggregate principal amount of the 10 3/4% notes
had been tendered for exchange. The exact amount that was
tendered of each series is subject to final verification.

On July 15, 2003, Azteca Holdings will pay the remaining
outstanding balance on the 10 1/2% notes, the initial
amortization and interest payments on the 10 3/4% notes and the
accrued interest owed to the holders of the 10 1/2% notes and the
10 3/4% notes who participated in the exchange offer.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy the new 12 1/4% Senior Amortizing
Notes due 2008 offered in exchange for the 10 1/2% notes and the
10 3/4% notes, nor shall there be any sale of the new 12 1/4%
notes in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under
the securities laws of any such state.

The new 12 1/4% notes have not been registered in the Securities
Section of the National Registry of Mexican Securities (Seccion
de Valores del Registro Nacional de Valores de Mexico) and
accordingly cannot be the subject of a public offering or
exchange in Mexico.

The exchange offers are being made pursuant to an Offering
Memorandum dated June 12, 2003, as supplemented by the Supplement
to the Offering Memorandum dated June 26, 2003, and the related
Letters of Transmittal, which more fully set forth the terms and
conditions of the exchange offers.

Company Profile

Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 55.0% of the capital stock of TV Azteca, S.A.
de C.V.

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca's affiliates include Azteca America, operator of a
broadcast television network focused on the rapidly growing
United States Hispanic market; Unefon, a Mexican mobile telephony
operator focused on the mass market; and Todito.com, operator of
an Internet portal for North American Spanish speakers.

CONTACT:  Azteca Holdings, S.A. de C.V.
          Diego Foyo, CFO
          Phone: +011-5255-3099-1333
          Email: dfoyo@tvazteca.com.mx
          Home Page: http://www.tvazteca.com.mx


GRUPO IUSACELL: Board Silent On Paging Company's Offer
------------------------------------------------------
The board of Mexican mobile operator Iusacell refused to make a
recommendation to shareholders regarding an offer by a local
paging company to buy 100% of the Company's shares. Business News
Americas recalls that paging company Movil@ccess, part of the
group of companies controlled by Mexican magnate Ricardo Salinas
Pliego, launched a US$10-million offer July 1 for Iusacell shares
traded in the US and Mexico. Movil@ccess would also assume US$815
million in debt.

In a statement to Mexico's BMV stock exchange Monday, the
Iusacell board told shareholders to weigh their options and
consult their financial advisors before deciding for or against
the offer.

There are too many possible outcomes, both negative and positive
for the stock, to be able to make the call, the board said in the
statement. Iusacell's controlling shareholders, Verizon
Communications Inc. and Vodafone Group Plc, have already agreed
to sell their respective 39.4% and 34.5% stakes to Movil@ccess.

While the board was short on advice for Iusacell shareholders, it
did confirm that Movil@ccess has deposited the necessary funds to
close the deal in an escrow account with The Bank of New York,
says Business News Americas.


TELSCAPE COMMUNICATIONS: Lowers Call Rates To Mexico
----------------------------------------------------
Telscape Communications, a telephone company serving the Southern
California Hispanic market, announced an amazing one cent rate to
Tijuana and lower rates to all of Mexico as part of the Simple 3
package.

The company's new plan addresses the calling needs of San Diego
consumers who frequently call Tijuana. These consumers pay high
international rates and monthly access fees when they place their
calls to Tijuana. Telscape is making this rate available without
making customers pay any additional monthly fees.

The Simple 3 package is competitively priced at $21.95 per month
for local and long distance access, plus three features, such as
Call Waiting, Caller I.D. and Call Return. The rate to Mexico's
frontier region other than Tijuana is 10 cents per minute. The
rate to the interior region is 20 cents per minute. Existing
Telscape customers in San Diego with the Simple 3 plan will
automatically receive the new rates; no additional action is
required. New customers can call 1-800-835-7227 (1-800-TELSCAPE)
for additional information and subscription.

About Telscape Communications

Telscape Communications, Inc. is a local and long distance
telecommunications company, which operates the nation's only
fully bilingual network using Nortel Networks technology.
Telscape has achieved unprecedented success in meeting the
telecommunications needs of Hispanic consumers in California.
Currently, Telscape serves the telecommunication needs of more
than 60,000 Southern California customers. For additional
information, visit the company's website at www.telscape.com.

CONTACT:  TELSCAPE COMMUNICATIONS
          Manuel Campos
          Tel: +1-626-415-1065
          mcampos@telscape.net


TV AZTECA: Announces Encouraging 2Q Estimate
--------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish language television programming
in the world, announced Monday that it expects second quarter
2003 EBITDA to be up 5% to approximately Ps.878 million (US$84
million). Second quarter EBITDA margin is expected to be 49%, a
400 basis points increase from the same period of last year. The
company anticipates EBITDA and EBITDA margin will reach their
highest second quarter levels in five years.

The company noted that net sales are expected to decrease 4%,
reflecting the absence of Ps.261 million (US$25 million) of
revenue related to the 2002 Soccer World Cup that was recorded
during the second quarter a year ago. Political advertising for
the July 6, 2003 elections did not totally compensate that
revenue, as it was approximately Ps.105 million (US$10 million).

On a proforma basis, excluding revenue related to the political
advertising, as well as revenue from the 2002 Soccer World Cup,
net sales are expected to increase 4%, reflecting solid
performance of ongoing business operations.

TV Azteca anticipates that total costs and expenses during the
second quarter will be approximately 12% below the levels of the
same period of last year. The decrease is attributable to lower
costs associated with the transmission of the political elections
compared with costs in connection with the 2002 Soccer World Cup,
as well as to the company's effective cost control strategies.

The company expects second quarter cash generation to be in line
with the US$125 million generation anticipated for the full year
2003.

TV Azteca will publish its second quarter results on July 28.

Company Profile

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic
market; Unefon, a Mexican mobile telephony operator focused on
the mass market; and Todito.com, an Internet portal for North
American Spanish speakers.

Except for historical information, the matters discussed in this
press release are forward-looking statements and are subject to
certain risks and uncertainties that could cause actual results
to differ materially from those projected. Risks that may affect
TV Azteca are identified in its Form 20-F and other filings with
the US Securities and Exchange Commission.

CONTACT:  TV Azteca S.A. de C.V.
          Investor Relations:
          Bruno Rangel
          Phone: 5255-3099-9167
          Email: jrangelk@tvazteca.com.mx

          Omar Avila
          Phone: 5255-3099-0041
          Email: oavila@tvazteca.com.mx

          Media Relations:
          Tristan Canales
          Phone: 5255-3099-5786
          Email: tcanales@tvazteca.com.mx



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

SIDERPERU: Indecopi Denies Request To Hold Creditors' Meeting
-------------------------------------------------------------
Peruvian steelmaker Siderperu informed the Lima stock exchange
that competition regulator Indecopi rejected a request to hold a
meeting of the steelmaker's creditors, says Business News
Americas.

BNP Paribas-Andes bank, president of a committee of Siderperu's
creditors, requested the meeting in order to discuss
modifications to the Company's debt restructuring agreement. BNP
Paribas-Andes said it will appeal the ruling made by Indecopi's
commission on debt repayment proceedings.

Meanwhile, Siderperu is evaluating "alternative plans."

Siderperu had asked BNP Paribas-Andes to set up a creditors'
meeting to discuss the reprogramming of certain payments agreed
in a global restructuring agreement (AGR) signed with creditors
on April 24 last year.

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



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

CANTV: Slams Government's First Half Statistics on FDI
------------------------------------------------------
A spokesperson from Venezuelan telephone giant CA Nacional
Telefonos de Venezuela (CANTV) denied that the Company got US$897
million in non-oil foreign direct investment in the first half,
reports Dow Jones.

"We have no reference for that number," the spokesperson said
after Venezuela's state-run news agency reported over the weekend
that foreign direct investment soared to US$1.03 billion in the
first half, including the CANTV amount registered in June. That
compared to US$187 million in the same period last year.

Possibly, the government is using some figure resulting from
activity in its shares as investors use them as a vehicle to buy
scarce dollars, the spokesperson said.

CANTV has found buyers over the last month after many investors
discovered a loophole in stringent foreign-exchange controls.

Buying CANTV in bolivars and selling the American Depositary
Receipts in the U.S. is proving slightly cheaper than a black
market that trades at up to 50% more than the dollar's fixed
rate, says Dow Jones.

Meanwhile, the Superintendent of Foreign Investments, Miriam
Aguillera, told Dow Jones Newswires in a telephone interview that
the US$879- million investment was actually made in 1996 but was
registered in June when CANTV had to comply with regulations to
get foreign currency.

"For us, it's new investment because it wasn't registered until
June," Aguillera said.

Usually, foreign investment must be registered within 120 days.


PDVSA: Deltana Winners To Be Named Soon
---------------------------------------
Carlos Barbieri, the project manager of Venezuelan state oil
company PDVSA's Deltana project, expects the energy ministry to
name the winners of the contract for the three remaining blocks
on the Deltana offshore natural gas platform "very soon," relates
Business News Americas.

PDVSA and energy ministry officials is likely to make the
announcement at a conference being organized by Venezuela's
embassy in Washington, DC on July 17-18 entitled "Venezuela, A
Reliable Partner: Securing US Energy Needs, Enhancing Business
opportunities," Barbieri said.

The Deltana Platform project consists of a 27,000 sq. km. block,
with estimated gas reserves of about 38 trillion cubic feet.


PDVSA: President Chavez Reports Decrease In Production Costs
------------------------------------------------------------
Venezuelan President Hugo Chavez announced that state oil company
PDVSA has reduced crude oil production costs by nearly 40% to
about US$4.11 a barrel in 2003 from US$6.70/b last year, relates
Business News Americas. The President, who revealed the
information in his "Alo Presidente" broadcast Sunday, attributed
cheaper production to the restructuring and cost-cutting efforts
at PDVSA following the December-January national strike.

Apart from firing more than 18,000 managers, office staff,
technicians and workers who joined the anti-government strike,
President Chavez said the Company had also halted "unnecessary"
drilling of wells.

"They used to be drilling here, there and everywhere, without any
need - that's stopped now," he said, adding that part of the
problem was that PDVSA drilled many wells where "there wasn't the
remotest possibility of finding oil."

Despite reduced drilling activity, the President said PDVSA's
crude production has recovered to pre-strike levels of about 3.1
million barrels a day (b/d), while the Company is producing
100,000b/d of orimulsion and 150,000b/d of liquefied petroleum
gas (LPG).

But according to private sources, June crude production stood at
nearly 2.6 million barrels a day, which is about 16% less than
the figure given by President Chavez and PDVSA officials.

Analysts said that the reason for the lower production is that
the Company does not have sufficient personnel to maintain
production on its existing fields.

They argued that as a result of the cutbacks, PDVSA will have no
other choice but to open up the oil industry to greater private
sector participation.



               ***********


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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