/raid1/www/Hosts/bankrupt/TCRLA_Public/030904.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

          Thursday, September 4, 2003, Vol. 4, Issue 175

                          Headlines


A R G E N T I N A

BANCO RIO: To Bolster Capital Through Public Equity Offering
EDESUR: Frozen Rates Expected to Create Financial Difficulty
ELECTROMECANICA NOVEL: Receiver Concludes Claims Check Process
LOMA NEGRA: Moody's Declares Bonds In Default
SOUTHERN WINDS: Government Caps Financial Aid Amount

SYBYSA: Credit Verification Process Expires
TECSOL: Deadline For Credit Check Expires Today
TGN CRIBS: Financial Trust Gets 'D(arg)' Rating From Local Fitch
* Argentina Confident IMF Accord Will Be Reached


B R A Z I L

BCP: Ratings Unaffected by America Movil Purchase
ELETROPAULO: Transmission Cable Replacement To Expand Capacity
GERDAU: Opens New Rio de Janeiro Distribution Unit
USIMINAS: Debt Reduction Process Forecast as Positive
VARIG: Lags On Lease Payments To Boeing


C O L O M B I A

EIS: Liquidation Process Starts


D O M I N I C A N   R E P U B L I C

TRICOM: Announces Non-Payment of Interest, Selects Adviser
TRICOM: Ratings Lowered to 'D'
TRICOM: 2Q03 Results Show Continued Financial Difficulty


E C U A D O R

HCR: Gold Loan Collateral Hampering Potential


J A M A I C A

JUTC: Protesting Workers End Work-To-Rule


M E X I C O

AFIANZADORA INSURGENTES: S&P Moves Ratings to CreditWatch Neg.
GRUPO IUSACELL: Waiver Extension Continues on Credit Agreement
ING COMERCIAL: Employees Sequestered Following Arrest Warrants
MAXCOM TELECOMUNICACIONES: Oct. 1 Interest Payment on Target


P A R A G U A Y

* Moody's Annual Report on Paraguay Describes Vulnerabilities


U R U G U A Y

BANCO DE CREDITO: AEBU Threatens Worker Strikes Over Agreement


V E N E Z U E L A

CANTV: Gets CADIVI's OK to Acquire $6.2M To Pay Debt
CANTV: Missed Payment Prompts S&P Ratings Drop to 'SD'
HOVENSA: S&P Comments On Refinery Upgrade Outlook
PDVSA: Executive Projects Total Recovery


     - - - - - - - - - -


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

BANCO RIO: To Bolster Capital Through Public Equity Offering
------------------------------------------------------------
As part of its restructuring strategy, Argentine bank Banco Rio
de la Plata, a unit of Spain's Banco Santander Central Hispano,
plans to expand its share capital through a public stock
offering. According to Santander, the increase will reach ARS450
million (US$ 153 million), which represents 50% of the bank's net
assets. This is part of a comprehensive liabilities refinancing
strategy and a commercial strategy destined to improve the bank's
positioning and offer differential products to its clients, a
Banco Rio spokesperson said. The bank called for a shareholders
meeting to take place on September 30 in order to discuss the
proposed increase.

After refinancing a debt of US$1.5 billion to 45 creditors, with
this second stage, Banco Rio expects to capitalize a US$161
million debt to its parent company.

The number of shares offered won't change the control of the
Company. The company just wants to exchange liabilities for
equity ownership, according to Rafael Ber, an analyst at
Argentine Research.

The bank executed a bond swap in April. The offer, in relation to
its US$250 million notes due December 2003, had a 73% of
creditors' acceptance.


EDESUR: Frozen Rates Expected to Create Financial Difficulty
------------------------------------------------------------
Argentine electricity distributor Edesur S.A. says it will be
facing major problems if the current "frozen" utility rates in
the country are not authorized to be changed. A local source said
that the Company is expecting increased demand in the months to
come.

Edesur representative Alejandra Martinez said that although the
Company has not received additional investments for some time, it
is still applying preventive maintenance measures.

CONTACT:  EDESUR S.A.
          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos, 140, 3o P
          Capital Federal 1076
          Argentina
          Phone: 4370-3700/4370-3370
          Fax: 4381-0708
          Home Page: www.edesur.com.ar


ELECTROMECANICA NOVEL: Receiver Concludes Claims Check Process
--------------------------------------------------------------
Mr. Aldo Roberto Markman, designated receiver of Buenos Aires -
based company Eletromecanica Novel S.R.L., finalized the credit
verification process for the Company's bankruptcy today. The
city's Court No. 19, which handles the Company's case, ordered
the receiver to prepare the individual reports.

Local news portal Infobae reported that the deadlines for the
individual and general reports are October 16, and November 27,
respectively.

CONTACT:  Aldo Roberto Markman
          Adolfo Alsina 1441
          Buenos Aires


LOMA NEGRA: Moody's Declares Bonds In Default
---------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a 'D'
rating to some US$300 million worth of corporate bonds issued by
Loma Negra Cia. Industrial Argentina relates the country's
securities regulator, CNV. Moody's said that rating is issued to
bonds that are in default. The Company's finances as of May 31
this year determined the given rating. The CNV described the
bonds as "Programa de Eurobonos a Mediano Plazo".


SOUTHERN WINDS: Government Caps Financial Aid Amount
----------------------------------------------------
The Argentine government has set a ceiling to the amount it will
provide troubled carrier Southern Winds, according to a local
source. The financial assistance will be only up to ARS3.2
million for the airline's fuel expenses per month.

The source said that the government feels the amount is enough
for the airline to operate 6 planes for at least three months.
After that, the airline is on its own. Its survival would depend
on its capacity to generate income.

For the last three weeks, the airline managed to gather ARS3
million in income, which is not enough to support itself.


SYBYSA: Credit Verification Process Expires
-------------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires-based company Sybysa S.A. ends today, September 4, 2003.
The receiver, Mr. Luis Maria Escobar, will now prepare the
individual reports, which must be presented to the court on
October 17. Buenos Aires' Court No. 25, which holds jurisdiction
over the case, also requires the receiver to prepare a general
report on the process and submit it on November 28.

CONTACT:  Luis Maria Escobar
          Viamonte 1646
          Buenos Aires


TECSOL: Deadline For Credit Check Expires Today
-----------------------------------------------
Creditors of Tecsol S.A. have until today to present their claims
to the Company's receiver, Mr. Claudio Barberia, for
verification.

The Company is undergoing the bankruptcy process as ordered by
the city's Court No. 13. According to an earlier report by local
news source Infobae, the ruling came after the Company's
creditor, Lloyd's Bank TSB sought for the Company's bankruptcy
for failure to make payments on its debt.

The receiver will now prepare the individual reports, as ordered
by the court. The court also requires the receiver to prepare a
general report on the process. However, the source did not
indicate the deadlines for these reports.

CONTACT:  Tecsol S.A.
          Ground Floor
          Estados Unidos Street No. 337
          Buenos Aires

          Claudio Barberia
          7th Floor G
          Viamonte Street No. 749
          Buenos Aires


TGN CRIBS: Financial Trust Gets 'D(arg)' Rating From Local Fitch
----------------------------------------------------------------
A total of US$175 million of debt security, under the Financial
Trust TGN CRIBs Clase 1 were rated 'D(arg)' by Fitch Argentina
Calificadora de Riesgo S.A. on Thursday. The Comision National de
Valores, Argentine's securities regulator, described the debt
security as "Titulos de Deuda por USD175MM", but did not indicate
the maturity date. The ratings agency said that 'D(arg)' ratings
are assigned to financial obligations that are currently in
default.


* Argentina Confident IMF Accord Will Be Reached
------------------------------------------------
Argentina's Cabinet Chief Alberto Fernandez said the government
is "convinced" it will reach a loan accord with the International
Monetary Fund before Sept. 9, when it must make a US$3-billion
payment to the latter, Bloomberg reports. The September 9 payment
equals 22% of the country's US$13.3 billion of foreign reserves.
According to Rodrigo Sacca, an economist at Stone & McCarthy
Research Associates in Buenos Aires, failure to reach a new loan
accord or get an extension from the IMF on the payment would
force Argentina to either default or print pesos and draw down
its foreign reserves.

Meanwhile, Economy Minister Roberto Lavagna revealed plans to
offer bondholders options to reschedule debt payments at an IMF
meeting in Dubai this month.



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

BCP: Ratings Unaffected by America Movil Purchase
-------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that America
Movil S.A. de C.V.'s (foreign currency: BBB-/Stable/--; local
currency: BBB+/Stable/--) announcement that it has acquired an
interest in Brazilian wireless company BCP S.A. will have no
impact on the ratings or outlook of America Movil. Subject to
regulatory approvals, America Móvil will use US$625 million from
its cash position to acquire this interest. In addition, America
Móvil has entered into an agreement with Telemar Norte Leste in
which Telemar has an option to acquire a stake in the capital of
BCP. If exercised, America Móvil's net debt to EBITDA would be
reduced. Operating in the metropolitan area of Sao Paulo, BCP has
approximately 1.7 million subscribers and has the highest average
revenue per user (ARPU) in Brazil.

ANALYST:  Patricia Calvo, Mexico City (52) 55-5279-2073


ELETROPAULO: Transmission Cable Replacement To Expand Capacity
--------------------------------------------------------------
Eletropaulo Metropolitana, the Brazilian unit of AES Corporation
is scheduled to complete the installation of replacement cables
in the northern part of Sao Paulo by the end of this month,
reports Business News Americas. Some 300,000 clients are bound to
benefit from the activity, the report adds. The 65 - megavolt
ampere (MVA) cables in the said area were replaced with new ones
having 100MVA capacity.

The report quotes a Company statement saying some BRL7 million
was spent on the activity, which is expected to end on September
30. Meanwhile, the Company is seeking a dialogue with BankBoston
Brazil to restructure its debts to the said bank. The Company
aims to "restructure and suspend" payments of principal but
maintain interest payments, said an earlier report released by
the Troubled Company Reporter - Latin America.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


GERDAU: Opens New Rio de Janeiro Distribution Unit
--------------------------------------------------
Gerdau S.A. president Jorge Gerdau Johannpeter said that the
sales at the domestic market is showing signs of recovery,
reports Business News Americas. The Company has opened news units
to meet the rising demand.

The Company's most recent addition is a new 6,000t/y distribution
office in Campos, Rio de Janeiro, according to local newspaper
Jornal de Comercio. The center is aimed at servicing the
Company's clients within the southern part of Espiritu Santo and
east of Minas Gerais.

Recently, the Troubled Company Reporter - Latin America said that
the Company has opened a new thermal cutting service center for
steel sheets in Fortaleza, Ceara. This unit has a 3,000 ton-per-
year capacity, and provides precision cutting.

The Gerdau group operates 23 plants in Brazil, the US, Canada,
Argentina, Chile and Uruguay. It manufactures concrete reinforced
bars, wire rods, bars and shapes, ingots, billets and other
related products.

CONTACT:  Gerdau S.A.
          Avenida Joao XXIII, 6777
          Santa Cruz
          23560 - 900 Rio de Janeiro - RJ
          Brazil
          Phone: +55 21 2414-6000
          Fax: +55 21 2414-6243
          Telex: 23423
          Home Page: http://www.gerdau.com.br
          Contact:
          Jorge Gerdau Johannpeter, Chairman


USIMINAS: Debt Reduction Process Forecast as Positive
-----------------------------------------------------
Analysts believe that Brazilian flat steelmaking group Usiminas
won't find it hard to achieve its strategic objective, which is
to slash its consolidated net debt by US$300 million this year,
relates Business News Americas.

"The company's cash generation is strong and prices for flat
products remain high," the report quoted Unibanco analyst Katia
Brollo as saying.

Between December 2002 and June 2003, the steelmaker's gross
consolidated debt fell by BRL1.6 billion to BRL7.9 billion
(currently US$2.63bn). With the expansion of cash generation and
the gradual reduction of debt, the group's total consolidated
debt to Ebitda ratio decreased from 5.7 in the second half of
last year to 2.4 in the same period this year, the steelmaker
said in its first half financial statements.

In the first half of 2003, the real currency appreciated by 19%
and generated positive exchange gains of BRL350 million as a
result of hedging operations. This decreased the impact of net
financial expenses, which totaled BRL111 million, the Company
said.

As part of an effort to reduce the cost of debt, Usiminas
recently issued its first Eurobonds. Demand surpassed
expectations, and the original offering of US$50 million was
expanded to US$75 million, yielding 6.875% per annum. According
to local business daily Valor Economico, Usiminas is preparing to
issue another US$180 million in debt in September.

Brollo expects Usiminas' debt to fall to BRL2.14 billion, as well
as the debt of Usiminas' subsidiary, Sao Paulo-based Cosipa, to
BRL4.19 billion by year-end.

CONTACT:  Breno Julio de Melo Milton
          bmilton@usiminas.com.br
          Tel: (55 31) 3499-8710

          Paulo Esteves
          paulo.esteves@thomsonir.com.br
          Tel: (55 11) 3897-6466


VARIG: Lags On Lease Payments To Boeing
---------------------------------------
Troubled Brazilian airline Viacao Aerea Rio-Grandense S.A. has
fallen behind on payments on its debts to Boeing Co., reports
local newspaper O Estado de Sao Paulo. Varig executive vice
president Luiz Martins said that the some these debts were
overdue since the beginning of July, without revealing how much
the airline owes to Boeing.

The executive added that the airline is planning to talk with
Boeing executives to discuss the debts, said the report. Varig is
also interested in acquiring two planes to replace those it would
be returning when the leasing contracts end.

The airline hopes to sign an "irreversible" intention to merge
with domestic rival TAM, in order to avoid being grounded. In the
meantime,

CONTACT:  Viacao Aerea Rio-Grandense SA
          Rua 18 Novembro, 800 2 - Andar
          Navegantes
          90240-040 Porto Alegre - RS
          Brazil
          Phone: +55 51 358-7039
          Fax: +55 51 358-7001
          Home Page: http://www.varig.com.br



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

EIS: Liquidation Process Starts
-------------------------------
Liquidation proceedings for Norte de Santander department capital
Cucuta's water and sewerage utility (EIS) have started, reports
Business News Americas. The Colombian government decided to
liquidate the utility, which is saddled with more than CLP110
billion in debt. State news agency CNE reported that in some
neighborhoods, the Company used to cut services by up to 15 hours
per day.

A new company, aimed at improving the quality of services, will
be created in place of EIS. The report adds shareholders are
likely o be composed of clients and employees, the municipal,
departmental and national governments.

Commercial and high-income clients will face increased rates with
the new company. Rate adjustments for these customers will on
average grow by 36% over the next eight years, says the report.

The rates hike is needed, as the Company needs over CLP200
billion in investments over the next 10 years.



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

TRICOM: Announces Non-Payment of Interest, Selects Adviser
----------------------------------------------------------
Tricom, S.A. (NYSE: TDR) announced Tuesday that adverse economic
conditions and the devaluation of the Dominican peso have
affected the Company's operating results and its ability to
purchase U.S. dollars in order to service principal and interest
on its debt obligations. As a result, the Company announced that,
at this time, it will not be making an $11.4 million interest
payment scheduled for September 2, 2003, related to its 11 3/8%
Senior Notes due 2004. The Company has also decided not to
proceed with its previously announced exchange offer and consent
solicitation with respect to the $200 million aggregate
outstanding principal amount of its 11 3/8% Senior Notes due
2004.

Based on the terms of the indenture governing its 11 3/8% Senior
Notes due 2004, the Company has 30 days to make the
aforementioned interest payment in order to avoid a default. The
Company is considering options that will enable it to make its
interest payment on the 11 3/8% Senior Notes and is evaluating
potential financial and strategic alternatives. The Company is
currently negotiating with several of its creditors to refinance
and restructure its debt and has already secured principal
payment waivers and extensions on a number of its borrowings.

The Company has engaged Bear, Stearns & Co. Inc. to assist in
evaluating financial and strategic alternatives, which may
include the refinancing or restructuring of its existing debt or
the sale of all, or a portion, of its assets or business to a
third party.


TRICOM: Ratings Lowered to 'D'
-----------------------------
Standard & Poor's Ratings Services Tuesday reduced its long-term
corporate credit rating on Dominican Republic-based fully
integrated telecom provider Tricom S.A. (Tricom) to 'D' from
'CC'. The senior unsecured debt rating was also lowered to 'D'
from 'CC'. Tricom had US$465.7 million of consolidated debt
outstanding at June 30, 2003.

The downgrade followed Tricom's announcement that it would not
make the approximately US$11 million interest payment due Sept.
2, 2003 on its US$200 million 11 3/8% bonds due 2004.

"It is unlikely that Tricom will make the required interest
payment within the 30-day grace period allowed by the indentures
governing the notes to avoid an event of default," said credit
analyst Patricia Calvo.

ANALYST:  Patricia Calvo, Mexico City (52) 55-5279-2073


TRICOM: 2Q03 Results Show Continued Financial Difficulty
--------------------------------------------------------
Tricom, S.A. (NYSE:TDR) announced on Tuesday consolidated
unaudited financial results for the second quarter and first six
months of 2003. Operating revenues totaled $52.5 million for the
2003 second quarter, a decrease of 21.4 percent from the 2002
second quarter. For the first six months, operating revenues
totaled $110.9 million, a 15.2 percent decrease from the year-
ago-period. Adjusted EBITDA totaled $14.6 million for the 2003
second quarter and $31.4 million for the first six months,
compared to Adjusted EBITDA of $20.8 million and $42.2 million
for the second quarter and first six months of 2002,
respectively. Net loss for the 2003 second quarter was $21.0
million, or $0.33 per share, and $40.0 million, or $0.62 per
share, during the first six months of the year.

Total debt, including capital leases and commercial paper,
amounted to $465.7 million at June 30, 2003, compared to $525.6
million at June 30, 2002 and $467.6 million at December 31, 2002.
Net debt totaled $446.0 million at June 30, 2003. The Company's
net cash provided by operating activities totaled $9.9 million
for the first six months of 2003 compared to $4.0 million for the
first six months of 2002. Capital expenditures were $5.3 million
during the 2003 second quarter and $10.1 million during the first
six months of 2003, representing a 75.3 percent quarter-over-
quarter and 74.5 percent year-over-year reduction, reflecting the
Company's continued policy of rationalizing its resources. Due to
the significant reduction in capital expenditures, lower
operating expenses, and tight management of cash, the Company
achieved its goal of reaching free cash flow breakeven during the
first half of the year. The Company's free cash flow totaled
$112,000 during the first six months of 2003 compared to a free
cash flow deficit of $28.6 million during the first six months of
2002.

The Company's operating results principally reflect the impact of
currency devaluation affecting the translation of Dominican peso
generated revenues into U.S. dollars. The value of the Dominican
peso against the U.S. dollar declined by approximately 39 percent
and 52 percent during the three-month and six-month periods ended
June 30, 2003, respectively. For the twelve-month period ended
June 30, 2003, the Dominican peso depreciated by approximately 91
percent in value with respect to the U.S. dollar. The inflation
rate, as reported by the Central Bank of the Dominican Republic,
was approximately 17 percent for the six-month period ended June
30, 2003, compared to approximately 2 percent for the six-month
period ended June 30, 2002.

Long distance revenues grew by 1.9 percent to $24.3 million in
the 2003 second quarter and by 4.5 percent to $49.2 million for
the first six months of 2003. The revenue increase resulted
primarily from strong international traffic volume derived from
the Company's U.S.-based wholesale and retail operations. The
increase in long distance revenues was offset in part by a
decrease in revenues from outbound international and domestic
long distance generated by the Company's Dominican Republic
operations primarily due to currency devaluation. For the first
six months of 2003, U.S. dollar- denominated international
business revenues represented approximately 41 percent of the
Company's total operating revenues, providing a strong hedge
against domestic currency depreciation.

Domestic telephony revenues totaled $15.7 million in the 2003
second quarter, a 29.1 percent decrease from the 2002 second
quarter. For the first six months, domestic telephony revenues
totaled $32.7 million, a 24.4 percent year-over-year decrease.
The decrease in domestic telephony revenues was primarily the
result of the devaluation of the Dominican peso. Total lines in
service at June 30, 2003 decreased 26.0 percent to approximately
140,000 compared to total lines in service at June 30, 2002. The
decrease in lines in service reflects the Company's previously
announced strategy of focusing on high-usage customers and
disconnecting low-usage subscribers, primarily during the second
half of 2002, in order to maximize the return on its existing
assets and resources.

Mobile revenues totaled $8.1 million in the 2003 second quarter
and $19.2 million in the first half of 2003, a decrease of 32.6
percent quarter- over-quarter and 19.4 percent year-over-year.
The decrease in 2003 second quarter mobile revenues was primarily
due to devaluation of the Dominican peso combined with a $1.7
million reclassification of commissions from expenses to revenues
in accordance with Staff Accounting Bulletin (SAB 101) "Revenue
Recognition" issued by the Securities and Exchange Commission
(SEC). Cellular and PCS subscribers totaled approximately 425,000
at June 30, 2003, a 6.7 percent increase from June 30, 2002.

Cable revenues totaled $3.6 million in the 2003 second quarter, a
38.0 percent decrease from the year-ago period. For the first six
months, cable revenues totaled $7.5 million, a 31.5 percent
decrease from the year- ago-period. The decrease in cable
revenues is primarily the result of currency devaluation coupled
with higher customer churn. Cable subscribers totaled
approximately 65,000 at June 30, 2003, a 6.9 percent decrease
year- over-year.

Data and Internet revenues totaled $796,000 in the 2003 second
quarter and $2.3 million in the first six months, representing a
70.3 percent quarter- over-quarter and 56.7 percent year-over-
year decrease. The decrease in data and Internet revenues is
attributable to the devaluation of the Dominican peso coupled
with the cancellation by the Company of its government contract
to provide broadband satellite Internet access to every public
high school in the Dominican Republic.

Consolidated operating costs and expenses totaled $57.9 million
in the 2003 second quarter and $120.3 million in the first six
months, representing a 12.4 percent quarter-over-quarter and 6.5
percent year-over-year decrease. The decrease in operating costs
and expenses reflect expense control efforts, the elimination of
expenses in lieu of income taxes, as well as the effect of
currency devaluation on Dominican peso denominated expenses. The
decrease in consolidated operating costs and expenses was
partially offset by increased depreciation and amortization
charges and higher cost of sales and services.

Cost of sales and services increased by 5.5 percent to $22.8
million during the 2003 second quarter and increased by 6.9
percent to $45.2 million during the first six months, primarily
as a result of higher transport and interconnection charges and
fees paid for cable signals and programming content. Selling,
general and administrative (SG&A) expenses decreased by 35.9
percent to $16.0 million in the 2003 second quarter and by 25.4
percent to $36.0 million for the first six months. As a
percentage of total operating revenues, SG&A expenses decreased
to 30.6 percent in the 2003 second quarter and 32.5 percent for
the first six months of 2003, compared to 37.5 percent and 36.9
percent respectively in the year-ago-periods.

Interest expense totaled $16.3 million in the 2003 second quarter
compared with $16.0 million in the prior year quarter, and
totaled $31.8 million for the first six months of 2003 compared
to $29.7 million during the first six months of 2002. The
increases were due primarily to lower interest capitalization,
higher average cost of Dominican peso denominated debt resulting
from recent monetary restrictions imposed by Dominican banking
authorities, general economic conditions and other factors.

About TRICOM

Tricom, S.A. is a full service communications services provider
in the Dominican Republic. We offer local, long distance, mobile,
cable television and broadband data transmission and Internet
services. Through Tricom USA, we are one of the few Latin
American based long distance carriers that is licensed by the
U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through our
subsidiary, TCN Dominicana, S.A., we are the largest cable
television operator in the Dominican Republic based on our number
of subscribers and homes passed. We also offer digital mobile
integrated services including two-way radio and paging services
in Panama using iDEN(R) technology. For more information about
Tricom, please visit www.tricom.net

CONTACT:  Tricom, S.A.
          Miguel Guerrero, Investor Relations
          Phone: +1-809-476-4044
                 +1-809-476-4012
          Email: investor.relations@Tricom.net
          Home page: http://www.tricom.net/



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

HCR: Gold Loan Collateral Hampering Potential
---------------------------------------------
Canada's Hampton Court Resources admits it is having a hard time
realizing the Company's potential, relates Business News
Americas. The Company, which owns the Primera Fortuna gold mine
in Ecuador, said it is having this difficulty because a large
chunk of its debt is referenced to world prices of the precious
metal. The recent increase in gold prices has left the Company
with "a larger than anticipated debt," it said. Hampton Court
said it was in default on its CDN18 million (about US$13mn) debt,
some CDN14.7 million of which is gold-price related.

The higher debt has become "the greatest obstacle to realizing
the company's potential" and has meant HCR has been unable to
pursue many traditional financing options, which would fund the
expanded production needed to repay investors, it said.

In July this year, the Company proposed a plan to convert the
gold loans into royalties from production, and said it is
currently in talks with investors to this effect.

So far, the majority of investors have agreed to convert to one
of three options offered, but if the negotiations fail, the
creditors could force the company into receivership or
bankruptcy, HCR said.

Hampton Court had an accumulated deficit of CDN21 million and a
working capital shortfall of CDN19.7 million at the end of June.


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

JUTC: Protesting Workers End Work-To-Rule
-----------------------------------------
The University and Allied Workers Union (UAWU), which represents
workers at the cash-strapped Jamaica Urban Transit Company
(JUTC), decided to suspend Tuesday their work-to-rule. The
decision, according to the Jamaica Observer, follows a five-hour
meeting at the Ministry of Labour's downtown Kingston offices
between the UAWU, the JUTC management and ministry officials.

"The workers (through the union) agreed to work their normal
rostered hours and the union is not preventing the workers from
voluntary overtime," said Karl Wedderburn, senior director at the
Industrial Relations Unit in the Ministry of Labour.

From last Monday until Tuesday, about 2,000 unionized bus drivers
and conductors went on work-to-rule, -putting in their required
eight-hour shifts and refusing to work overtime, on which the
JUTC relies heavily- to protest against the management's delay in
adjusting their salaries in keeping with a reclassification
exercise.

According to a JUTC source, the Company already paid $28 million
last Thursday to more than 2,000 drivers and conductors,
retroactive to April 2003.

But the union wants retroactive payment before April of this
year, though it has not given a specific date. The JUTC source
told the Observer that if the Company were to agree to the
union's request then the retroactive payments could be doubled,
and that the payment, if effective in January, may have to
include the 300 workers whose jobs were made redundant in January
of this year under JUTC's restructuring program.



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

AFIANZADORA INSURGENTES: S&P Moves Ratings to CreditWatch Neg.
--------------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it placed
its 'BBB+' counterparty and financial strength ratings on
Afianzadora Insurgentes S.A. de C.V. (AISA) on CreditWatch with
negative implications because of an important deterioration in
its financial condition related to the resolution of pending
claims derived from performance bonds.

This situation will likely affect 2003 capital and earnings
negatively, reporting losses of Mexican pesos (MxP) 379.8 million
for second-quarter 2003, which resulted largely from the
settlement of three large claims pending since 2001. "Although
the pending settlement of these claims was already built into the
ratings of the company, the actual amounts were larger than
expected," said credit analyst Jaime Carreno.

Standard & Poor's will continue to assess progress made in
recovering and selling collateral, and the final effect that
losses after recoveries will have on the company's financial
strength. Prospective financial strength of the insurer relies on
its own ability to execute the guarantees provided. It is
expected that the company will return to historical profitability
levels once these claims are settled and guarantees executed.
Failure to achieve adequate recovery rates in a reasonable time
frame is likely to result in negative rating action.

ANALYSTS:  Jaime Carreno, Mexico City (52) 55-5279-2017
           Ursula M Wilhelm, Mexico City (52) 55-5279-2007


GRUPO IUSACELL: Waiver Extension Continues on Credit Agreement
--------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. [BMV: CEL, NYSE: CEL] ("Iusacell" or
the "Company") announced Tuesday that its subsidiary, Grupo
Iusacell Celular, S.A. de C.V. ("Iusacell Celular") has received
an additional extension of its temporary Amendment and Waiver
(the "Amendment") of certain provisions and technical defaults
under its US$266 million Amended and Restated Credit Agreement,
dated as of March 29, 2001 (the "Credit Agreement"). The
Amendment originally expired on August 14, 2003.

As modified, the Amendment is now scheduled to expire on October
30 2003, subject to earlier termination under certain
circumstances. The Amendment contains covenants which restrict
Iusacell Celular from making any loans, advances, dividends, or
other payments to the Company and require a proportionate
prepayment of the loan under the Credit Agreement if it makes any
principal or interest payments on any of its indebtedness for
borrowed money, excluding capital and operating leases.

This extension places the Company out of a default status under
the Credit Agreement; however, if the Amendment is not further
extended, upon its expiration Iusacell Celular would be in
default of a financial ratio covenant under the Credit Agreement,
which would constitute an Event of Default (as defined in the
Credit Agreement) as if the Amendment had never become effective.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.


ING COMERCIAL: Employees Sequestered Following Arrest Warrants
--------------------------------------------------------------
ING Groep NV moved at least 10 employees of its Mexican arm, ING
Comercial America, to a "safe location" after a local judge
issued arrest warrants for them last week, revealed Yves
Brouillette, ING's chief executive for Latin America. The judge,
in the state of Morelos, ordered the arrests after fertilizer
producer Fertinal SA brought a criminal case against ING, saying
the Dutch firm is avoiding insurance payments related to a 2001
hurricane that destroyed its facilities. Fertinal says ING owes
it US$300 million. ING says the claim is worth US$13 million.

"This is pure blackmail and we cannot cede to blackmail,"
Brouillette said, adding, "If we were to accept it, then we would
have 20 more similar claims the next day."

Brouillette wouldn't comment directly when questioned about
possible corruption in the judiciary, but he said, "I don't think
a judge in this country could be incompetent enough to believe
this story, so there must be something else there."

Even if employees had embezzled money, that would have no effect
on ING Comercial America's responsibility to pay its claims, he
said.

In addition to ordering the arrest of the employees, the judge
also blocked the bank accounts of ING Comercial Americana up to a
limit of US$300 million, although the Company's daily operations
have been largely unaffected, executives said.


MAXCOM TELECOMUNICACIONES: Oct. 1 Interest Payment on Target
------------------------------------------------------------
Maxcom Telecomunicaciones, Mexico's third largest fixed line
operator, will be able to make an interest payment of US$700,000
from its cash flow come October 1, local daily El Universal
reports, citing Maxcom investor relations director Jose Antonio
Solbes. The Mexican competitive local exchange carrier
restructured its debts in 2002, issuing new senior notes worth
US$165 million that bear 0% interest through March 1, 2006 and
10% annual interest in the last year. The October payment
corresponds to US$11.5 million in outstanding series B senior
notes that were not restructured.

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile connectivity
to micro, small and medium- sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering Local, Long
Distance and Internet & Data services in greater metropolitan
Mexico City, Puebla and Queretaro.

To see financial statements:
http://bankrupt.com/misc/MAXCOM_TELECOMUNICACIONES.htm

CONTACT:  Maxcom Telecomunicaciones
          Jose-Antonio Solbes
          Mexico City, Mexico
          Phone:  (52 55) 5147 1125
          Email: investor.relations@maxcom.com
          Home Page: http://www.maxcom.com/

          Lucia Domville
          Citigate Financial Intelligence
          New York, NY
          Phone: (212) 840-0008 Ext. 268
          Email: lucia.domville@citigatefi.com



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

* Moody's Annual Report on Paraguay Describes Vulnerabilities
-------------------------------------------------------------
The speculative-grade ratings on Paraguay, as well as the stable
outlook, are due to narrow foreign-currency earnings, high
political instability, and the country's severe vulnerability to
shocks, Moody's Investors Service said in its annual report on
Paraguay.

"Chronic arrears to official creditors are an indication of a
less-than-complete willingness to repay," said Moody's Ernesto
Martinez-Alas, author of the report. "The foreign currency
ceilings - Caa1 for debt, Caa2 for bank deposits - also
incorporate the additional risks posed by a high degree of
dollarization in the financial system."

The report, however, indicated that the economy is on a path to
recovery thanks to strong agricultural performance.



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

BANCO DE CREDITO: AEBU Threatens Worker Strikes Over Agreement
--------------------------------------------------------------
Uruguay's state bank Banco Republica (BROU) and the central bank
must sign a definitive agreement regarding the fate of liquidated
bank Banco de Credito's former workers soon. Otherwise, members
of Uruguay's banking union AEBU will conduct impromptu  strike
actions throughout the banking system.

Banco de Credito is one of five banks intervened and suspended by
the government in July and August last year due to capital and
liquidity problems, aggravated by contagion from neighboring
Argentina's crisis.

Thus far, the fate of the 329 dismissed employees at the defunct
bank remains unclear as the agreement reached between BROU and
the central bank is yet be signed by all parties concerned. Until
a definitive resolution has been formally clarified, the AEBU
will continue its strike action.



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

CANTV: Gets CADIVI's OK to Acquire $6.2M To Pay Debt
----------------------------------------------------
Compania Anonima Nacional Telefonos de Venezuela
(CANTV)(NYSE:VNT) announced that it has received approval from
the Government's Committee for the Administration of Foreign
Currency (CADIVI) to acquire YEN727.7 million (approximately
US$6.2 million) to pay the amortization of principal plus
interest on the Japan Bank for International Cooperation's (JBIC)
YEN6.5 billion loan due in 2009.

The YEN727.7 million installment had become due at the end of
July 2003 and its 30-day grace period expired last week. This is
the second approval received by the Company from CADIVI to meet
its debt obligations coming due this year, after having received
approval to pay US$7.9 million in the first week of August 2003
for the amortization of principal plus interest on the
International Finance Corporation's (IFC) US$25 million loan due
in 2005.

The Company continues to work with CADIVI and Government
officials seeking further approvals to meet the remaining debt
obligations coming due this year, including the payment of US$4.6
million in interest on its Yankee Bonds obligation, which became
due on August 1st and has a 30-day grace period.

The Company remains optimistic and committed to obtaining the
necessary approvals from CADIVI to meet the remaining obligations
due this year. The Company warned that the timing of such
approvals may not meet the obligations' expiration dates or their
grace periods. In such cases and without the ability to extend
these due-dates further, the failure to pay such obligations may
result in events of default under these debt instruments. The
Company is currently working with the trustee on its Yankee Bonds
and anticipates securing the approval from CADIVI for the payment
of this obligation within a reasonable period of time. The
Company anticipates the likely resolution of this matter no later
than September 15, 2003.


CANTV: Missed Payment Prompts S&P Ratings Drop to 'SD'
------------------------------------------------------
Standard & Poor's Ratings Services lowered Tuesday its foreign
currency corporate credit rating on Venezuelan full service
telecommunications provider Compañía Anónima Nacional Teléfonos
de Venezuela (CANTV) to 'SD' from 'B-' following a missed
interest payment on the company's US$100 million bonds due
January, 2004.

The rating on CANTV's bonds was lowered to 'D' from 'B-'. The
company's debt totaled US$245 million as of June 30, 2003.

"CANTV is working with CADIVI and government officials to obtain
the approvals to meet its remaining foreign currency denominated
obligations," said credit analyst Patricia Calvo.

ANALYST: Patricia Calvo, Mexico City (52) 55-5279-2073


HOVENSA: S&P Comments On Refinery Upgrade Outlook
-------------------------------------------------
Hovensa LLC (BBB-/Negative) has completed its 60-day completion
test of a recently constructed coker and other modifications at
the refinery in St. Croix, V.I. Hovensa is owned 50% by Amerada
Hess Corp. (BBB/Negative/A-3) and 50% by Petroleos de Venezuela
S.A. (PDVSA; B-/Stable/--). Standard & Poor's Ratings Services
said that although the likely prospect for successful completion
has already been included in the rating, it does reduce exposure
to PDVSA, which guarantees completion on a joint but not several
basis with Amerada Hess.

Completion was delayed from 2002, following a period of
disruption of heavy oil feedstock deliveries from PDVSA due to
political problems in Venezuela. Turner Mason, the project's
independent technical expert, should finish its test
certification in September. Liquidity remains strong. The project
is forecasting free cash balances of at least $240 million for
the end of August; total long-term debt is $398 million. The six-
months debt service reserve is full and the $150 million working
capital facility remains undrawn.


PDVSA: Executive Projects Total Recovery
----------------------------------------
Venezuela's state oil company Petroleos de Venezuela S.A. (PdVSA)
has totally recovered from the effects of the national strike
that hit the Company late last year. PdVSA president Ali
Rodriguez said that the Company expects to sell some US$18
billion worth of crude this year.

"This reflects a complete recovery of the production activities
in the east, west and the whole country," Business News Americas
quoted Mr. Rodriguez as saying.

The Company is currently producing 3.37 million barrels a day.
About 15,000 barrels of these are natural gas liquids, or
bitumen.

The national strike that ended in February this year had reduced
the Company's output by as much as 90%. The strike unsuccessfully
sought for the resignation of President Hugo Chavez, resulting in
the dismissal of at least 18,000 PdVSA workers, instead.

CONTACT:  Petroleos de Venezuela SA
          Apdo 169
          Avenida Libertador La
          Campina
          Caracas, Venezuela
          Phone: +58 212 708 4111
          Fax: +58 212 708 4661
          Home page: http://www.pdvsa.com
          Contact:
          Ali Rodriguez Araque, Chairman
          Jorge Kamkoff, Joint Vice Chairman
          Jose Rafael Paz, Joint Vice Chairman



               ***********


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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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