/raid1/www/Hosts/bankrupt/TCRLA_Public/031023.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, October 23, 2003, Vol. 4, Issue 210

                          Headlines

A R G E N T I N A

41 PLAZA: General Report Filing Due Today
AGUAS ARGENTINAS: Government Issues Fine For Service Outage
AT&T LATIN AMERICA: Florida Court To Initiate Auction Process
BANCO MERCANTIL: S&P Cuts Ratings to 'B-'; Outlook Negative
BLANCO Y SALGADA: Court Assigns Receiver To Bankruptcy Process

CASA REGES: Receiver Verifies Creditors' Claims For Bankruptcy
CHAMPIGNONES ARGENTINOS: Court Orders Bankruptcy
COELHO CAPITAL: Court Sets Bankruptcy Proceedings' Schedule
CONFITERIA: Receiver To Verify Claims Until December 17
COPAMA: Court Schedules Reorganization Process
DEPOSITO COLOMBIA: Court Declares Company Bankrupt

DISCO: Releases FY2002 Results Following Six-Month Delay
FOTOGRAFIA APLICADA: Individual Reports Due Today
HOTEL CRILLON: Files Reorganization Petition
MARMAK: Declared "Quiebra" by Court
P E ANDISA: Court Authorizes Reorganization Plans

RECOMAR: Receiver Oversees Claims For Bankruptcy
REPSOL YPF: Moody's Raises Financial Rating To Stable
ROBERTO GATTI: Court Appoints Receiver For Bankruptcy Process
W Y S: Seeks Court's OK For Reorganization
YPF: Fitch Upgrades Senior Unsecured FC, LC Ratinggs to 'BB'

* Fitch Cuts Argentina Series E, F Notes, Brady Bonds


B E R M U D A

GOSHAWK REINSURANCE: A.M. Best Affirms; Assigns Negative Outlook


B R A Z I L

EMBRATEL: Wins Invitation for BHTrans Tender
VASP: Analyzing Fleet Renovation, Reduction


C O L O M B I A

COLOMBIA TELECOMUNICACIONES: Mulls Sale of Six Resorts


E C U A D O R

PETROECUADOR: Insurance Contracts Awards Delayed


M E X I C O

GRUPO IUSACELL: Shareholders Okay Conversion, Reverse Split
GRUPO MEXICO: New CFO Expected
LUZ Y FUERZA: Reports Swelling Labor Liabilities
SAVIA: Bionova Receives AMEX Intention to Delist Notice
VITRO: Reports Improved 3Q03 Results
XIGNUX: S&P Lowers Rating on Notes to 'B+'


    - - - - - - - - - - -

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

41 PLAZA: General Report Filing Due Today
-----------------------------------------
The general report for the reorganization of Buenos Aires company
41 Plaza S.R.L. is due for filing at the city's Court No. 11
today. The Company's receiver, Mr. Miguel Angel Marceesi,
prepared the report after the individual reports were processed
this year.

The reorganization started after the court approved the Company's
motion for "Concurso Preventivo", the Troubled Company Reporter
earlier said.

CONTACT:  Mr. Miguel Angel Marceesi
          Avellaneda 1135
          Buenos Aires


AGUAS ARGENTINAS: Government Issues Fine For Service Outage
-----------------------------------------------------------
Argentine water utility Aguas Argentinas may be fined as much as
ARS600,000 for a service outage, Bloomberg reports, citing Carlos
Villas, head of the country's sanitary services and works
regulator. The fines may indicate the government won't allow
higher rates soon.

The service outage came a day after President Nestor Kirchner
warned utilities not to pressure the government for higher rates
by lowering the quality of services.

Kirchner and utility officials are clashing over the government's
decision to extend a freeze on rates imposed last year even after
40% inflation and a 70% drop in the currency.

Aguas Argentinas, which is controlled by France's Suez and
Spain's Agbar, won its 30-year operating concession in 1993, and
serves some 10 million residents in greater Buenos Aires. Its
concession area takes up 1,830 sq. km.


AT&T LATIN AMERICA: Florida Court To Initiate Auction Process
-------------------------------------------------------------
A Florida court handling the auction of corporate services
provider AT&T Latin America (ATTL) was due to receive bids on
Wednesday, reports Chilean daily Estrategia.

Three groups are competing for ATTL's assets, a source confirmed
to Business News Americas. These are Brazil's Embratel, Mexico's
Telmex and Chilean group GTD Teleductos in partnership with
Spain's Telefonica.

The court, which is also handling ATTL's Chapter 11 proceedings,
is expected to name the winner on November 3. But the source said
the announcement of the winner could be subject to variation if
one party challenges the legality of a rival's bid, or could even
happen sooner if there are no such challenges.

The auction of ATTL's assets in Brazil, Argentina, Chile, Peru
and Colombia was triggered by a US$110-million offer by Embratel
early September.

Meanwhile, an O Estado de Sao Paulo report reveals that ATTL has
made an agreement to renegotiate its debt of nearly US$25 million
with Brazilian banks. The last institution to renegotiate the
debt was the bank Itau, its main creditor in Brazil.

CONTACT:  AT&T Latin America Corp.
          Cesar Amaro
          Phone: 011-562-241-4818
          Email: cesar.amaro@attla.com
             or
          Catherine Castro
          Phone: +1-202-689-6336
          Email: catherine.castro@attla.com


BANCO MERCANTIL: S&P Cuts Ratings to 'B-'; Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it lowered
its long-term local currency counterparty credit, long-term
foreign currency counterparty credit, and CD ratings on Banco
Mercantil S.A. to 'B-' from 'B' following Standard & Poor's
lowering of its long-term sovereign rating on Bolivia to 'B-'
from 'B' on Monday.

Standard & Poor's also said that it affirmed its 'C' short-term
local and foreign currency counterparty credit ratings on Banco
Mercantil. The outlook on Banco Mercantil is negative to reflect
the outlook on Bolivia.

The downgrade on the sovereign reflected the intensifying policy
challenges stemming from severe political and institutional
deterioration, in the context of an extremely weak fiscal
position. Violence and ongoing discontent with the traditional
political leadership led to the recent resignation of President
Gonzalo Sanchez de Lozada on Oct. 14, 2003. In this situation,
the already frail operating environment of Bolivian banks has
deteriorated even further, making banking more difficult in a
country that already poses big challenges to its financial
institutions.

Nevertheless, Banco Mercantil has shown a relatively consistent
performance over the past stressful times, and, at this point,
the ratings remain constrained by the sovereign's
creditworthiness.

ANALYST:  Carina Lopez, Buenos Aires (54) 11-4891-2118


BLANCO Y SALGADA: Court Assigns Receiver To Bankruptcy Process
--------------------------------------------------------------
Buenos Aires accountant Jorge Cosoli has been assigned as
receiver for Blanco y Salgado S.A., reports local news portal
Infobae. The Company recently entered bankruptcy on orders from
the city's Court No. 24.

Working with Clerk No. 47, the court set December 17 this year as
the deadline for the verification for creditors' claims.
Creditors must present their proofs of claim for the receiver for
authentication in order to benefit from any payments the Company
would make at the end of the bankruptcy process.

The receiver's duties include the preparation of the individual
and general reports, whose deadlines were not revealed by the
report.

CONTACT:  Blanco y Salgado S.A.
          Traful 3707
          Buenos Aires

          Jorge Cosoli
          Marcelo T de Alvear 1364
          Buenos Aires


CASA REGES: Receiver Verifies Creditors' Claims For Bankruptcy
--------------------------------------------------------------
Buenos Aires Court No. 14 places Casa Reges S.A. in the hands of
local accountant Ruben Toytoyndjian, the appointed receiver for
the Company's bankruptcy. Creditors must have their proofs of
claims authenticated by the receiver before November 21 this
year.

A report by Argentine news source Infobae indicates that the
receiver must hand in the individual reports to the court on
February 6 next year. These are prepared upon completion of the
verification process.

The receiver will prepare a general report after the individual
reports are processed at court. This must be submitted to the
court on March 19 next year.

CONTACT:  Ruben Toytoyndjian
          Roque Saenz Pena 1219
          Buenos Aires


CHAMPIGNONES ARGENTINOS: Court Orders Bankruptcy
------------------------------------------------
Champignones Argentinos S.A. enters bankruptcy on orders from
Buenos Aires Court No. 23. A report by Argentine news portal
Infobae indicates that the city's Clerk No. 45 assists the court
on the case.

The deadline for credit verifications is December 9 this year.
Creditors must present their claims to the Company's receiver,
Ms. Laura Marletta, for authentication before the said date.

After the said date, the receiver will prepare the individual
reports, followed by the general report. The source, however, did
not mention whether the court has set the deadlines for the
filing of these reports.

CONTACT:  Champignones Argentinos S.A.
          Maure 1560
          Buenos Aires

          Laura Marletta
          San Jose de Calasanz 530
          Buenos Aires


COELHO CAPITAL: Court Sets Bankruptcy Proceedings' Schedule
-----------------------------------------------------------
The individual and general reports for the bankruptcy of Coelho
Capital S.A. must be submitted to the court on February 6, 2004
and March 19, 2004, respectively. The reports are to be prepared
by the Company's receiver, Mr. Ricardo Adrogue.

Argentine news portal Infobae relates that the city's Court No.
23 holds jurisdiction over the Company's case. Clerk No. 46
assists.

The receiver will prepare the individual reports after the credit
verification process is completed on November 24 this year. The
claims verifications are done to determine the nature and amount
of the Company's debts.

CONTACT:  Ricardo Adrogue
          Bouchard 468
          Buenos Aires


CONFITERIA: Receiver To Verify Claims Until December 17
-------------------------------------------------------
Creditors of Buenos Aires-based company Confiteria Aspen Suite
S.R.L. must present their proofs of claims to the Company's
receiver, Ms. Beatruz Rosa Mazzaferri before December 17 this
year, relates local news source Infobae.

The city's Court No. 16 issued the bankruptcy order. However,
Infobae did not mention whether the court, which is assisted by
Clerk No. 31, has set the deadlines for the submission of the
receiver's reports.

CONTACT:  Beatriz Rosa Mazzaferri
          Lavalle 1459
          Buenos Aires


COPAMA: Court Schedules Reorganization Process
----------------------------------------------
Buenos Aires' Court No. 19 sets the schedule for the
reorganization of local company Copama S.R.L., according to a
report by local news portal Infobae. Mr. Aldo Markinan is the
receiver for the process.

Creditors must have their claims authenticated by the receiver
before December 5 this year. After that, the receiver will
prepare the individual reports on the results of the verification
process, and then the general report. These must be submitted to
the court on February 20, and April 2 next year, respectively.

The informative audience will be on August 21 next year, the
source adds.

CONTACT:  Aldo Markinan
          Alsina 1441
          Buenos Aires


DEPOSITO COLOMBIA: Court Declares Company Bankrupt
--------------------------------------------------
The Civil and Commercial Tribunal of Rosario in Sante Fe,
Argentina orders the bankruptcy of local company Deposito
Colombia S.R.L., Infobae reports, adding that the Company has
been placed in the hands of its receiver, Mr. Hugo Eduardo
Sanguinetti.

The credit verification process is set the end on November 13
this year. Creditors must have their claims authenticated by the
receiver before the said date to receiver any payments the
Company would make at the end of the process.

The results of the verifications will be presented to the court
through the individual reports, which are to be submitted on
December 29 this year. After these are processed at court, the
receiver would consolidate the information into a general report,
which is will be submitted on February 27 next year.

CONTACT:  Deposito Colombia S.R.L.
          Juan Jose Paso 6985
          Santa Fe

          Hugo Eduardo Sanguinetti
          Gorriti 986
          Rosario, Santa Fe


DISCO: Releases FY2002 Results Following Six-Month Delay
--------------------------------------------------------
Disco SA, the troubled Argentine unit of Dutch supermarket
retailer Royal Ahold NV, has finally released its full-year 2002
results, six months after it was supposed to submit the report,
says Dow Jones. In a filing with the Buenos Aires stock exchange
Tuesday, the Company registered an enormous loss of ARS2.6
billion for 2002. Its total net worth as of Dec. 31, 2002 is a
negative ARS451.7 million.

The Company had been unable to report its results in line with
national securities regulations amid accounting scandals at both
the Company and its Dutch parent that erupted in February. Ahold
released its own 2002 earnings earlier this month after a long
delay as well.

Ahold has put Disco up for sale along with its other supermarket
holdings in South America.

CONTACT:  DISCO S.A.
          Larrea 847, Piso 1
          1117 Buenos Aires, Argentina
          Phone: +54-11-4964-8000
          Fax: +54-11-4964-8076
          Home Page: http://www.disco.com.ar


FOTOGRAFIA APLICADA: Individual Reports Due Today
-------------------------------------------------
The Civil and Commercial Tribunal of San Isidro in Argentina
expects the receiver for Fotografia Aplicada S.A. to submit the
individual reports for the Company's reorganization today. These
reports were prepared after the credit verification process was
completed earlier this year.

An earlier report released by the Troubled Company Reporter -
Latin America indicated that the general report is due for filing
on December 5. The receiver, Mr. Rodolfo Crespi, will prepare
this after the individual reports are processed at court.

CONTACT:  Fotografia Aplicada S.A.
          Hipolito Yrigoyen 3926
          Vicente Lopez, San Isidro

          Rodolfo Crespi
          Rivadavia 91
          San Isidro


HOTEL CRILLON: Files Reorganization Petition
--------------------------------------------
Hotel Crillon S.A., which is based in Buenos Aires is seeking
court permission to undergo reorganization. A report by local
news source Infobae relates that the Company filed a motion for
"Concurso Preventivo" at the city's Court No. 11. However, the
source did not indicate whether the court, which works with Clerk
No. 21 on the case, is likely to approve the petition.

CONTACT:  Hotel Crillon S.A.
          Ave Santa Fe 796
          Buenos Aires


MARMAK: Declared "Quiebra" by Court
-----------------------------------
Marmak S.R.L., which is domiciled in Buenos Aires, was declared
bankrupt by the city's Court No. 23. According to a report by
Argentine news source Infobae, the court ruled that the Company
is "Quiebra Decretada".

In the meantime, the source did not mention whether the court,
which works with Clerk No. 45 on the case, has assigned a
receiver to the case or set the deadlines for the processes in
the bankruptcy.

CONTACT:  Markmak S.R.L.
          Combate de Malvinas 3149
          Buenos Aires


P E ANDISA: Court Authorizes Reorganization Plans
-------------------------------------------------
Buenos Aires' Court No. 23 approves a motion for "Concurso
Preventivo" filed by local company Proyect e Instalaciones Andisa
S.A., relates local news portal Infobae. Clerk No. 46 aids the
court on the case.

The court assigned Ms. Susana Vaccheli as the Company's receiver,
the source adds. She will verify creditors' claims until February
10 next year to determine the amount and nature of the Company's
debts.

The receiver is also required to prepare the individual and
general reports on the process. The source, however, did not
mention whether the court has set the deadlines for these
reports.

CONTACT:  Susana Vaccheli
          Montevideo 571
          Buenos Aires


RECOMAR: Receiver Oversees Claims For Bankruptcy
------------------------------------------------
Buenos Aires accountant Jorge Byrne takes over local company
Recomar S.A. as receiver for the Company's bankruptcy process. He
will examine and authenticate creditors' claims until December 10
this year.

Argentine news portal Infobae relates that the city's Court No.
24 handles the Company's case with assistance from Clerk No. 48.
The court also requires the receiver to prepare the individual
and general reports, however, the source did not reveal whether
the deadlines for these reports have been set.

CONTACT:  Recomar S.A.
          Juan Bautista Alberdi 219
          Buenos Aires

          Jorge Byrne
          Piedras 1319
          Buenos Aires


REPSOL YPF: Moody's Raises Financial Rating To Stable
-----------------------------------------------------
The ratings agency Moody's has upgraded Repsol YPF's long-term
debt rating from negative to stable.  This improvement reflects,
according to Moody's, the steps taken by the Company to
strengthen its financial position, in spite of the volatility of
the Argentine economy. Moody's had lowered Repsol YPF's financial
rating to negative due to the fiscal and monetary controls
imposed in Argentina.

The agency emphasizes the important debt reduction achieved by
the Company through generation of cash flow and an adequate asset
sales program.   It also points out that Repsol YPF counts on a
liquidity of more than one year for complying with the debt due
dates.

At the same time Moody's values very positively the geographic
business diversification that Repsol YPF has carried out, thus
reducing the risk of concentration in Argentina and focusing its
investment on other Latin American countries.

The rating agency pointed out the improvement of the Argentine
economy and the decrease in the uncertainties that have an
influence on the oil sector. Moody's has upgraded the credit
rating for Argentine debt in bonds denominated in foreign
currency to Ca from Caa1.


ROBERTO GATTI: Court Appoints Receiver For Bankruptcy Process
-------------------------------------------------------------
Court No. 1 of the Civil and Commercial Tribunal of Rosario in
Argentina assigned Mr. Victor Horacio Pugliese as receiver for
the bankruptcy of local company Roberto Gatti S.A. relates
Infobae.

The receiver will verify creditors' claims until October 27 this
year. After that, he will prepare the individual reports, which
are to be submitted to the court on December 12 this year. The
receiver will also prepare a general report, which must be filed
on February 27 next year, after the individual reports are
processed at court.

The court is likely to order the liquidation of the Company's
assets at the end of the bankruptcy process. Proceeds will be
used to repay its creditors.

CONTACT:  Victor Horacio Pugliese
          Jujuy 2033
          Rosario, Santa Fe


W Y S: Seeks Court's OK For Reorganization
------------------------------------------
Buenos Aires-based company W y S S.A. files a motion for
"Concurso Preventivo" at the city's Court No. 14, reports local
news portal Infobae. The Company is seeking the court's go signal
for reorganization. Clerk No. 28 assists the court on the case.
The source, however, did not indicate whether the case is likely
to merit court approval.

CONTACT:  W y S S.A.
          Luis Saenz Pena 976
          Buenos Aires


YPF: Fitch Upgrades Senior Unsecured FC, LC Ratinggs to 'BB'
------------------------------------------------------------
Fitch Ratings upgrades the senior unsecured foreign currency
rating of YPF S.A. (YPF) to 'BB' from 'B+'. Fitch also upgrades
YPF's senior unsecured local currency rating to 'BB' from 'B+'.
Both ratings are assigned Stable Rating Outlooks.

The rating actions reflect the continued strength of YPF's
financial flexibility and liquidity position despite the
difficult Argentine sovereign environment of the past 20 months.
Credit indicators for the first-half of 2003 are at record
levels, with EBITDA/interest coverage of 37 times (x), EBITDA-
CAPEX/interest coverage of 29.6x, Total Debt/EBITDA of 0.4x and a
Total Debt to Capitalization ratio of 15.2%.

The assigned ratings also incorporate the benefits of YPF's
ownership structure, solid operating performance and credit
protection measures, and proven hard currency-generating ability.
Although the company's credit indicators may suggest rating
levels higher than those assigned, the Argentine sovereign's
credit profile continues to constrain YPF's standalone credit
ratings. Nonetheless, strong credit fundamentals, coupled with
the company's cash flow and production diversification, mitigate
exposure to transfer and convertibility risk, allowing YPF to be
rated multiple notches above the Argentine sovereign's long-term
foreign currency rating of 'DDD'.

Even though YPF's debt is technically non-recourse to Repsol YPF,
the assigned ratings assume a strong level of support by the
parent company, reflecting YPF's importance in the overall group
strategy. The acquisition of YPF resulted in a more balanced
integrated business mix for Repsol YPF, correcting the historical
bias towards downstream operations. As of year-end 2002, YPF
accounted for close to half of Repsol YPF's earnings but only 13%
of the group's consolidated leverage. Repsol YPF's incentive to
support YPF is further underscored by the existence of cross-
default clauses in its bond documentation, which can be triggered
if a principal subsidiary (such as YPF) defaulted on more than
US$20 million of obligations.

Despite the underlying sovereign turbulence, YPF's credit profile
remains strong. The strong international oil price environment,
coupled with cost reduction initiatives, benefits from the ARP's
devaluation and improved value-added downstream export flows,
contributed to a 30% rise in first-half 2003 EBITDA to ARP5
billion. Net income during this period totaled ARP2.2 billion,
compared to an ARP665 million loss in the comparable 2002 period.
YPF's strong cash generation capacity was accompanied by a 34%
reduction in total leverage levels in relation to fiscal year-end
2002, further strengthening credit protection measures.

YPF S.A. is an integrated oil and gas company engaged in
exploration, development and production of hydrocarbons as well
as the refining, marketing, transportation and distribution of
oil and a wide range of petroleum products, oil derivatives,
petrochemicals and liquid petroleum gas. The company is a
subsidiary of Spain's Repsol YPF (Fitch 'BBB', Outlook Stable).

CONTACT:  Fitch Ratings
          Alejandro Bertuol
          New York
          Phone: 212-908-0393

          Jason Todd
          Chicago
          Phone: 312-368-3217


          Cecilia Minguillon
          Buenos Aires
          Phone: +54 11-4327-2444

          Media Relations
          James Jockle
          Phone: 212-908-0547


* Fitch Cuts Argentina Series E, F Notes, Brady Bonds
-----------------------------------------------------
Fitch Ratings has downgraded the Republic of Argentina's
following bond issuances:

-- US$250 million series E zero coupon notes to 'D' from 'CC';

-- US$250 million series F zero coupon notes to 'C' from 'CC';

-- Brady par bonds to 'DD' from 'CC';

-- Discount bonds to 'C' from 'CC'.

The downgrades of the zero coupon notes are a result of the
government's failure to make the series E Oct. 15, 2003 payment.
Series A through C matured as scheduled, and the series D payment
scheduled for October 2002 utilized the rolling World Bank
guarantee. The guarantee is no longer in place; thus, the missed
payment last week resulted in a default on the notes. The series
F is scheduled to pay Oct. 15, 2004.

Additionally, as the collateral backing Argentina's Brady par
bonds was completely depleted to cover coupons in May and
November of 2002, and the government has no intention of
replenishing the collateral or servicing this instrument due to
its moratorium on external debt service, Fitch has downgraded the
issue rating to 'DD' from 'CC'. Similarly, after covering
interest payments since the government declared its moratorium,
the collateral backing the discount bonds may not be sufficient
to cover the interest payment due on Nov. 30, 2003. As a result,
Fitch has downgraded the issue rating on the discount bonds to
'C' from 'CC'.

CONTACT:  Fitch Ratings
          Greg Kabance
          Phone: +1-312-368-2052

          Jennifer Conner
          Chicago
          Phone: +1-312-368-2080

          Theresa Paiz-Fredel
          Phone: +1-212-908-0534

          Roger Scher
          Phone: +1-212-908-0240

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



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B E R M U D A
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GOSHAWK REINSURANCE: A.M. Best Affirms; Assigns Negative Outlook
----------------------------------------------------------------
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) of Goshawk Reinsurance Limited (Goshawk Re), Bermuda,
and removed the rating from under review. This follows detailed
discussions with the Goshawk group as to the ongoing protection
of Goshawk Re's capital from the implications of the problems
generated by the group's Lloyd's operation. Specifically, the
ongoing maintenance of risk-adjusted capitalisation at Goshawk Re
is more than commensurate with the rating.

The negative outlook reflects the increased uncertainty of
Goshawk Re's market profile and consequent prospective operating
performance, particularly resulting from the challenge of
building an attractive ongoing book and avoiding adverse
selection.

The rating was placed under review with negative implications
following an announcement by the parent, Goshawk Insurance
Holdings plc, that it may breach its banking covenants due to the
need for additional reserve strengthening at Lloyd's Syndicate
102--which currently has a Best's syndicate rating of A-
(Excellent) reflecting the Lloyd's market rating--and the
potential impact that any shortfall of funding at the syndicate
may have on the group's overall financial flexibility. The
banking covenants have since been suspended reflecting ongoing
support from Goshawk's banks.

Excellent risk-adjusted capitalisation--The rating continues to
reflect Goshawk Re's stand-alone financial strength. In A.M.
Best's opinion, the company has a substantial excess of both
current and prospective risk-adjusted capital relative to its
financial strength rating despite the need to fund repayments of
the USD 65 million term debt issued by its immediate holding
company. A.M. Best has never credited this debt as economic
capital when calculating Goshawk Re's risk-adjusted capital. The
reduced anticipated premium volumes and the decision to focus on
shorter tail business reinforces the excellent prospective risk-
adjusted capitalisation.

Increased uncertainty over operating performance--While current
market conditions continue to support the potential for good
operating performance, this is obviously highly dependent on the
quality of business which Goshawk Re will write. With regard to
business written to date, A.M. Best continues to monitor the run-
off of a large quota share contract of a book of assumed property
and casualty reinsurance written by a U.S. medical insurer that
accounted for the majority of premium income in 2002. A recent
independent reserve review revealed that Goshawk Re is carrying
reserves in excess of the recommended value for this contract. In
A.M. Best's opinion, Goshawk Re is not materially exposed to
losses arising from reinsurance of syndicate 102's business, as
there is only a very minor exposure to pre-2002 business.

Weakened business profile--A.M. Best believes that Goshawk Re is
likely to suffer from the weakened group profile, and this has
been factored into business generation and performance
expectations. Furthermore, the company's original business plan
to develop a core book of third-party business was delayed by
virtue of specific class underwriting positions and key
management roles being filled later than planned.

A.M. Best Co., established in 1899, is the world's oldest and
most authoritative insurance rating and information source. For
more information, visit A.M. Best's Web site at www.ambest.com.



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B R A Z I L
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EMBRATEL: Wins Invitation for BHTrans Tender
--------------------------------------------
Embratel won the invitation to tender for the provision of 288
data communication circuits to interconnect the Intelligent
Traffic Control System in Belo Horizonte (BHTrans), to be
implemented by Empresa de Transporte e Trƒnsito de Belo Horizonte
(BHTrans) and by the Computing and Information Company of the
Belo Horizonte Municipality (Prodabel).

The bids were submitted by the local telco and Embratel that won
thanks to its lower price: BRL3.6 million for a 48-month
contract. Embratel's proposal permitted that the costs involved
matched the public resources available. As to the technical
proposal, the carrier made previous tests with the solution in
order to ensure that the project requirements are thoroughly met.

The Intelligent Traffic Control System will enable the
centralized control of traffic lights, transit monitoring with
remote cameras and transmission of information to drivers through
a set of changeable message panels. The purpose is to improve the
circulation of public transport in Belo Horizonte.

The data communication system will be implemented at once, with
the inauguration of ten changeable message panels on December 9.
These panels will be distributed over strategic areas of Belo
Horizonte and will display information to drivers about
congestions and the best routes to use. The implementation of the
288 circuits will be concluded in the first half of 2004 and
enable the transit data of Belo Horizonte's core area to reach
the BHTrans control center automatically.

According to Embratel's Executive Sales Manager for the
Government, Guilherme Paixao Franciscani, the participation of
Empresa Brasileira de Telecomunicacoes in the bid was crucial for
the project feasibility. In 2002 the local telco was the sole
bidder to submit a proposal whose price exceeded the budget of
the project, which caused the cancellation of the process.
"Prodabel and BHTrans will be provided with top quality service
and suitable prices for this project, designed to benefit the
inhabitants of BeloHorizonte", states the executive manager. .

In view of the strategic significance of the project, Embratel
will expand its digital network in Belo Horizonte by installing
over 44 miles of cables. With this expansion other state agencies
and customers of the corporate market based on the region will be
provided with top quality digital access to meet their
telecommunications requirements.

Embratel is the premium telecommunications provider in Brazil,
offering a wide range of telecommunication services, such as
advanced voice, high-speed data transmission, internet, data
communication by satellite and corporate networks. The company is
national leader in data and internet services, in a privileged
position to become the Latin American carrier with an all-
distance network. Embratel network has national coverage with
almost 17,500 miles of optic cables, representing around one
million miles of fiber optics.

CONTACT:  Embratel
          Advertising, Press and Public Relations Department
          Tel: (02121) 2121 7837 / 2121 6291
          Fax: (02121) 2121 7791
          E-mail: cmsocial@embratel.net.br
          URL: www.embratel.com.br


VASP: Analyzing Fleet Renovation, Reduction
--------------------------------------------
Faced with a declining demand for flights amid fierce competition
with other airlines in Brazil, Viacao Aerea Sao Paulo (Vasp) is
mulling a renovation as well as a reduction of its fleet next
year.

Citing an unnamed Vasp spokesman, Dow Jones reports that the
Company is now in talks with Boeing Co. and Airbus about the
possibility of negotiating new aircraft leases for next year.

"The idea is to ... change up the fleet, to trade the old jets
for new leased ones," the spokesman said, adding that Vasp also
plans to trim the size of its fleet overall.

The carrier, Brazil's fourth largest with BRL1 billion in sales
last year, currently owns the planes it operates, most of which
are Boeing aircraft.

Just like other airlines, Vasp saw demand for flights tumble in
the wake of the Sept. 11, 2001 attacks on the U.S. With less than
60% of the seats on its flights occupied by paying passengers,
Vasp has sunk deep into debt.

On Tuesday, the airline said it will issue BRL150 million in
debentures to extend debts owed to Brazil's state-run airport
authority Infaero.



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

COLOMBIA TELECOMUNICACIONES: Mulls Sale of Six Resorts
------------------------------------------------------
Six summer holiday resorts belonging to Telecom (Colombia
Telecomunicaciones) are likely to go under the hammer as part of
the Company's liquidation, reports El Tiempo. The resorts,
located in Antioquia, Santander, San Andress, Valle, Huila and
Cundinamarca, are valued at an estimated COP25 million.

Meanwhile, La Previsora, which is undertaking the liquidation of
Telecom, is contracting an investment bank to evaluate Telecom's
shares estimated to be worth COP150 million, and which will be
offered to the public.

By the middle of 2004, Telecom must present a list of all its
real estate and other property to La Previsora. These assets are
estimated to be worth COP3.7 trillion.



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

PETROECUADOR: Insurance Contracts Awards Delayed
-------------------------------------------------
The Administrative Council of Petroecuador was supposed to
declare on October 20 the winner of the tender for the state oil
company's insurance contracts. The technical, economic and legal
analyses undertaken by the contract commission have led to the
recommendation of the proposal made by Colonial-AON,
Petroecuador's current insurer, as the best option.

However, objections by the Minister of Energy, Carlos Arboleda,
delayed the announcement. Arboleda is arguing that, based on the
documentation, the best choice is Panamericana because of its
economic proposal.

Colonial-AON, Panamericana, and Rocafuerte submitted final offers
for the Petroecuador contract more than a week ago. Panamericana
came in with the lowest bid at US$18.2 million including taxes,
while Colonial bid US$19.1 million and Rocafuerte US$21.9
million.

Arboleda's objections come on the heels of the comments issued by
Roberto Goldbaum, CEO of local insurer La Union.

Goldbaum, who participated in the Petroecuador auction as head of
a consortium incorporating local underwriters La Union,
Ecuatoriano-Suiza and Atlas, said that the tender for insurance
contracts at Petroecuador should be called off due to
irregularities designed to favor the bid placed by Colonial.

The La Union CEO stated that there had been a number of
questionable maneuvers and barriers to create a monopolistic
situation where the bidding rules favor the ongoing business
relationship between Colonial and Petroecuador.

Meanwhile, the Superintendente Nacional de Seguros, Rene
Calderon, warned that a declaration of the process as null and
void would create grave consequences in the domestic and
international insurance markets, given the importance of
petroleum insurance.



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

GRUPO IUSACELL: Shareholders Okay Conversion, Reverse Split
-----------------------------------------------------------
The board of Mexican wireless phone company Grupo Iusacell SA
gained shareholders' approval to convert all shares into a single
stock class and a 1-for-20 reverse split, reports Dow Jones. In a
filing with the Mexican Stock Exchange Monday, the Company said
it will convert 1.86 billion class "A" and "V" shares into 93.1
million new shares with full voting rights.

The reverse split is used by companies seeking to raise the price
of their stocks because they think current prices are too low to
attract investors.

Iusacell class "V" shares trading on the Mexican Stock Exchange
closed up 9% Monday to MXN1.07.

All class "A" and "V" shares will be canceled. Iusacell's
American Depositary Receipts trading on the New York Stock
Exchange represented 100 class "V" shares. The Company's ADRs
will now represent 5 new shares.

Dow Jones relates that the stock-restructuring plan came after
U.S.-based Verizon Communications Inc. and Vodafone Group Plc of
the U.K. sold their controlling stakes in Iusacell to local
magnate Ricardo Salinas Pliego for about US$7.4 million in July.

CONTACT:  Grupo Iusacell S.A. De C.V.
          Prolongacion Paseo dela Reforma
          1236
          Col Santa Fe Delegacion Cuajimalpa
          05348 Mexico
          Distrito Federal
          Mexico
          Phone: +52 5 109 4400
          Home Page: http://www.iusacell.com.mx


GRUPO MEXICO: New CFO Expected
------------------------------
Mexican copper mining and railroad company Grupo Mexico SA will
have a new Vice President of Finance and Chief Financial Officer
soon, Dow Jones indicates. The Company revealed in a filing with
the Mexican Stock Exchange that Danier Tellechea is leaving the
post he has held since 1993 to become president of the Company's
U.S. unit Asarco Inc. Nevertheless, Tellechea will remain on
Grupo Mexico's board, the Company added.

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


LUZ Y FUERZA: Reports Swelling Labor Liabilities
------------------------------------------------
Mexico's state-owned company Luz y Fuerza del Centro (LyFC) has
just released Third Report on Labor. In the report, the Company
revealed that one of the main problems in its finances is the
level of its labor liabilities, local daily El Universal relates.

Through August, labor liabilities totaled MXN51.62 billion
(US$4.64 billion), equivalent to what the Company makes in
electricity sales in two years. This also means that each worker
at retirement age costs the company MXN2.7 million (US$242,980).

During the first eight months of 2003, some 907 workers obtained
their pensions out of a total of 18,519 pensioners. Currently,
the Company employs 37,836 people. LyFC will direct MXN5.63
billion (US$506 million) to pension payments this year, some
MXN326 million (US$29.4 million) more than it will spend on the
investment program for 2003, which is MXN5.3 billion (US$476
million).

But according to Kenneth S. Smith, assistant director of
production at LyFC, the Company could not only be looked at as a
burden due to its labor costs "because it has a very important
role that allows it to cover 27% of the domestic electricity
demand."


SAVIA: Bionova Receives AMEX Intention to Delist Notice
-------------------------------------------------------
By letter dated October 15, 2003, Bionova Holding Corporation was
informed of the intention of the American Stock Exchange ("AMEX"
or the "Exchange") to proceed to file an application with the
Securities and Exchange Commission to strike the Company's common
stock from listing and registration on the Exchange. The Exchange
Staff stated this action was being taken because the Company is
not in compliance with three of the standards for continued
listing, as follows: (1) the Company's stockholders' equity is
less than $2 million and it has sustained losses from continuing
operations and/or net losses in two of its three most recent
fiscal years; (2) the Company's stockholders' equity is less than
$4 million and it has sustained losses from continuing operations
and/or net losses in three of its four most recent fiscal years;
and (3) the Company has sustained losses which are so substantial
in relation with its overall operations or its existing financial
resources, or its financial condition has become so impaired that
it appears questionable, in the opinion of the Exchange, as to
whether it will be able to continue operations and/or meets its
obligations as they mature.

This determination by the Staff stemmed from its review of the
Company's 10-Q for the quarter ended June 30, 2003. The Company
had received a similar letter in September of 2002 and had
submitted a plan to regain compliance. While the AMEX had
accepted the plan, the Company understood it would continue to be
subject to periodic review by the Exchange Staff during the
extension period and that failure to make progress consistent
with the plan or to regain compliance with the continued listing
standards could result in the Company being delisted.

Bionova Holding has notified the AMEX that it is appealing the
determination of the Staff. While the Company is working on
several alternative plans to address the deficiencies, there can
be no assurance at this time that any of them can be realized or
that the Company will be successful in convincing the review
panel of the efficacy and timing of the plan. Because of this
concern Bionova Holding also will look at alternative trading
vehicles for the Company's common stock should it not be
successful in maintaining its listing on the AMEX. The Company
has been informed by the AMEX that the panel hearing for the
appeal generally will occur within 45 days from Bionova Holding's
request for appeal (which was sent Tuesday).

Bionova Holding Corporation is a leading fresh produce grower and
distributor. Its premium Master's Touchr and FreshWorld Farmsr
brands are widely distributed in the NAFTA market. Bionova
Holding Corporation is majority owned by Mexico's SAVIA, S.A. de
C.V.


VITRO: Reports Improved 3Q03 Results
------------------------------------
- QoQ EBITDA increased by US$13 million or 14.8 % (200 basis
points margin improvement)

- Consolidated debt declined by US$75 million

Vitro S.A. de C.V., one of the world's largest producers and
distributors of glass products, announced Tuesday that 3Q03
consolidated net sales declined 3.0 percent YoY to US$582
million. Comparisons reflect a decrease in glass container
shipments as a result of bad weather, ongoing weak flat glass
demand in the U.S. non-residential construction and OEM
automotive markets, and slow consumer spending in glassware
products. At the same time, sales were supported by strong
domestic construction and auto replacement markets, as well as by
Vitro's Spanish operations.

Consolidated EBITDA declined 5.0 percent YoY to US$100 million.
Glass Containers was the main driver of the decline, resulting in
a 20.4 percent drop in EBITDA from poor weather conditions that
led to lower sales and fixed cost absorption. Flat Glass EBITDA
increased 2.2 percent YoY, driven by increased efficiencies at
Vitro's float plants. Glassware EBITDA increased 5.5 percent
mainly due to a better product mix, particularly in exports.
Consolidated EBITDA margins for the quarter declined to 17.2
percent from 17.5 percent a year ago.

Alvaro Rodriguez, Chief Financial Officer, commented: "We
continue to make progress in streamlining and focusing operations
and strengthening our balance sheet. For example, QoQ EBITDA
increased 14.8 percent, with an improvement of 200 basis points
in EBITDA margins for the period. We are starting to see a
positive change in trends, partially improving due to the
initiatives taken to lower our cost structure. During the quarter
we also completed the divestiture of one of our plastic
operations for US$18 million."

Mr. Rodriguez added: "Consolidated debt was reduced by US$75
million to US$1,411 million quarter-over-quarter. On October 22,
we expect to complete the issuance and sale of US$225 million
Senior Notes due November 1, 2013, which will be applied
primarily to retire substantially all of the short-term and
current portion of long-term debt of our holding company, Vitro,
S.A. de C.V. This transaction will improve the average life of
total consolidated debt to about 4 years on an adjusted basis,
from approximately 3 years."

Reflecting its position in specialized niche markets, Vitro
recently developed new products for leading players such as Estee
Lauder, Coca Cola and Modelo, examples partially responsible for
an 8.9 percent QoQ increase in EBITDA at Glass Containers.

Exemplifying the trend towards value added products, Flat Glass
recently signed a contract for 20,000 square meters of double-
glazed "ISOLAR SOLARLUX" glass in Spain for the Bilbao Exhibition
Center. In addition, during the quarter Flat Glass has secured
new long- term contracts with some of the major brands at GM,
Ford and Chrysler.

New products represented 13.5 percent of total Glassware sales
YTD, up from 8.4 percent at year-end 2002. This has been one of
the drivers of the 5.6 percent YoY increase in EBITDA at this
business unit. In November 2003, Vitro expects to open its new
flat glass facility developed jointly with AFG, the US subsidiary
of Asahi Glass, which is expected to increase Vitro's float glass
capacity by 18%. This facility will start production ahead of
schedule and within budget.

The consolidated financial results, income statement, and cash
flows for the nine-month period ended September 30, 2002, and
last twelve months as of September 30, 2002, account for
Vitromatic, S.A. de C. V. as a discontinued operation. All
figures provided in this announcement are in accordance with
Generally Accepted Accounting Principles in Mexico, except
otherwise indicated. Dollar figures are in nominal US dollars and
are obtained by dividing nominal pesos for month by the end of
month fix exchange rate published by Banxico. In the case of the
Balance Sheet, US dollar translations are made at the fix
exchange rate as of the end of the period. The exchange rate as
of July 31, 2003 was 10. 4878, as of August 31, 2003 was 11.0475
and as of September 30 2003 was 11.0133 pesos per US dollar.
Certain amounts may not sum due to rounding
.
Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers, and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; fiberglass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers;
glassware for commercial, industrial and retail uses; plastic and
aluminum containers. Vitro also produces raw materials, and
equipment and capital goods for industrial use. Founded in 1909
in Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries
have facilities and distribution centers in eight countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide.

CONTACT:  Vitro S.A. de C.V.
          Investor Relations
          Beatriz Martinez / Jorge Torres
          + (52) 81-8863-1258 / 1240
          bemartinez@vitro.com
          JTorres@vitro.com

          Breakstone & Ruth International
          U.S. agency
          Alex Fudukidis / Susan Borinelli
          (646) 536-7012 / 7018
          afudukidis@breakstoneruth.com
          Sborinelli@breakstoneruth.com

          Vitro, S. A. de C.V.
          Media Relations
          Albert Chico
          + (52) 81-8863-1335
          achico@vitro.com


XIGNUX: S&P Lowers Rating on Notes to 'B+'
------------------------------------------
Standard & Poor's Rating Services said Tuesday that it lowered
its rating on Xignux S.A. de C.V.'s (Xignux) 2004 notes to 'B+'.

At the same time, Standard & Poor's affirmed its 'BB-' long-term
foreign and local currency corporate credit ratings on Xignux.
The outlook is negative.

"The rating action on the notes follows a review of recovery
prospects for Xignux's debt," said Standard & Poor's credit
analyst Jose Coballasi.

"The revised rating on the notes reflects the structural
subordination of the issue relative to Xignux's priority
liabilities."

Despite the debt at the holding company being guaranteed by some
of the subholding and operating subsidiaries, the proportion of
priority liabilities relative to assets is significant, leading
to a possible low residual claim. As evidenced by the affirmation
of the company's corporate credit ratings, the change in notching
does not imply a change in default risk.

The ratings reflect Xignux's (formerly Axa S.A. de C.V.)
significant market share positions, product diversity, and
vertical integration. Its emphasis on high quality has attracted
world-recognized joint-venture partners, providing Xignux, a
diversified holding company, with low-cost access to state-of-
the-art technology and enhancement of its export possibilities.
The aforementioned strengths are partially offset by the
company's high leverage, the cyclical nature of some of its end-
markets, and increasing costs as a result of the strength of the
Mexican peso in recent years.

Xignux is a diversified holding company whose subsidiaries
manufacture a variety of products, mostly for industrial markets.
The company sells auto parts, chemical, food, cable, foundry,
power and distribution transformers. In 2002, the company posted
revenues and EBITDA of $1.5 billion and $133 million,
respectively. As of June 30, 2003, the company had $557 million
in total debt, plus an additional $8 million corresponding to a
discontinued operation.

The outlook is negative. Further weakness in the company's
operating performance for the remainder of 2003 could lead to a
downgrade. Xignux's ability to meet its EBITDA and free operating
cash flow goals for 2003 of $140 million and $30 million,
respectively, would lead to a stable outlook.

ANALYSTS:  Jose Coballasi, Mexico City (52) 55-5279-2014
           Santiago Carniado, Mexico City (52) 55-5279-2013




               ***********


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

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