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

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

            Tuesday, July 31, 2001, Vol. 2, Issue 148

                           Headlines


A R G E N T I N A

BANCO DE CORDOBA: Banco General de Negocios Is Sole Bidder
DROGUERIAS MONROE: Swimming In Debt, Owners Call In Creditors


B R A Z I L

BANCO ECONOMICO: COPENE Makes Mandatory Acquisition Announcement
BANCO ECONOMICO: Ordinary Liquidation May Take Place Next April
EMBRATEL: Unveils US$200M Investment Program To Update Equipment
TRANSBRASIL: GECAS Files Motion Requesting Carrier's Bankruptcy


C H I L E

AESGENER: Reaches Accord With Investors On Puerto Ventanas Sale
COLOWALL: First Sale Attempt Fails Due To Absence Of Bidders
STARMEDIA: Cauley Geller, et al, Announces Class Action Lawsuit
STARMEDIA: Schiffrin & Barroway, LLP Files Class Action Lawsuit
TELEX-CHILE: Shareholders To Vote Aug. 31 On Chilesat Sale


M E X I C O

AHMSA: Federal Judge Suspends Arrest Warrants
BANCRECER: ING, Sabadell's Withdrawal From Auction Questioned
BANCRECER: IPAB To Get US$45.1M From Sale Of Loan Portfolios
BUFETE INDUSTRIAL: Posts Deepening Losses In The First Half
GALEY & LORD: S&P Lowers Sr. Secured to B, Subordinated To CCC+
GRUMA SA: 2Q Net Sales Amount To 1.4 Billion Pesos
GRUPO SIMEC: Announces 1H01 Results; Stronger Peso Helps Net
TFM: Group TMM To Close TFM-Stake Acquisition In September
VITRO: Sources Deny Reports Regarding Conflict At Mgt., Board


V E N E Z U E L A

SIVENSA: IBH Files For Listing In The Nasdaq Small Cap Market


     - - - - - - - - - - -


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

BANCO DE CORDOBA: Banco General de Negocios Is Sole Bidder
-----------------------------------------------------------
The Cordoba provincial government revealed that Banco General de
Negocios emerged as the only bidder to submit an offer in
Thursday's tender for an 89-percent stake in Banco de Cordoba,
AFX Europe said in a report. The value of the bid is due to be
revealed during a pre-adjudication hearing scheduled for Aug 20.
Banco Santander Central Hispano SA unit Banco Rio de la Plata,
Credit Agricole's Banco Suquia and Banco de Galicia SA, had
purchased the privatization documents of Banco de Cordoba.


DROGUERIAS MONROE: Swimming In Debt, Owners Call In Creditors
-------------------------------------------------------------
Battling with huge amounts of debt, the owners of the drugstore
Droguerias Monroe called in the creditors privately, according to
a report Wednesday in South American Business Information. Monroe
is facing debts of US$33 million with banks and another US$156
million with commercial creditors.

Under a proposed plan, the company committed to pay off its debt
with banks in a period of five years, and will start paying the
debt to the suppliers at the end of 2002. At this point, the
management of Monroe is in the hands of the laboratory Roemmers.
One of the company's directors revealed that the drug store is an
intermediary between the laboratory and the pharmacies.



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B R A Z I L
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BANCO ECONOMICO: COPENE Makes Mandatory Acquisition Announcement
----------------------------------------------------------------
COPENE Petroquimica do Nordeste S.A. (NYSE: PNE; BOVESPA: CPNE5)
on Friday made the following announcement in compliance with CVM
(Brazilian Securities Commission) Instruction No. 31/84.

At an auction held on July 25, 2001, the Banco Economico S.A.,
under extra-judicial liquidation, carried out the sale of all the
shares of Economico S.A. Empreendimentos (ESAE). ESAE indirectly
holds participation in the voting capital of NORDESTE QUIMICA
S.A. - NORQUISA, which, in turn, holds controlling interest of
COPENE - PETROQUIMICA DO NORDESTE S.A. At said auction, the
purchaser of the assets auctioned was NOVA CAMACARI PARTICIPACOES
S.A., a company controlled by the ODEBRECHT GROUP.

Furthermore, a meeting of the COPENE - PETROQUIMICA DO NORDESTE
S.A. Board of Administration, held on July 24, 2001, approved the
acquisition to be made by this Company of participations in
companies that hold Camacari Petrochemical Complex petrochemical
assets, namely: (a) total capital of CONEPAR - COMPANHIA NORDESTE
DE PARTICIPACOES, which, among other assets, holds 35% of the
voting capital of POLITENO INDUSTRIA E COMERCIO S.A. and 66.67%
of the voting capital of POLIALDEN PETROQUIMICA S.A.; and (b) all
of the capital assets of PROPPET S.A. The acquisition of the
participations mentioned shall be carried out according to
specific conditions, among them, the prior total divestment of
all the shares issued by NORDESTE QUIMICA S.A. - NORQUISA, held
indirectly by POLIALDEN PETROQUIMICA S.A.

These facts form part of the integration process between COPENE -
PETROQUIMICA DO NORDESTE and other petrochemical assets, aimed at
the gain of scale, operational and marketing synergies, and
fiscal efficiency. Other information regarding this process shall
be issued to the market.


BANCO ECONOMICO: Ordinary Liquidation May Take Place Next April
---------------------------------------------------------------
According to the owner of Banco Economico, former banker Angelo
Calmon de SA, the out-of-court settlement of the bank could be
transformed into an ordinary liquidation as early as next April,
Gazeta Mercantil Online reported Friday. The process will take
place once assets and liabilities are balanced. Once the
liquidation process begins, the Central Bank will make money
available to honor the bank's fiscal and labor credits, said
Calmon de Sa, adding that he expects that the management of
assets and liabilities will result in some leftovers for the
bank's shareholders, which will be received in up to five years.

The amount of R$785 million generated from Thursday's sale of
Economico's stake in Norquisa, the holding company of
petrochemical group Copene, will be used entirely to pay the
bank's debt with the Central Bank. The payment will reduce the
debt from R$9.5 billion to R$8.7 billion.


EMBRATEL: Unveils US$200M Investment Program To Update Equipment
----------------------------------------------------------------
As part of a plan to offer local telephony to corporate clients,
Brazilian long distance and data service provider Embratel
devised a US$200-million initial investment program for switching
equipment and capillarity, according to CEO Jorge Rodriguez in a
Business News Americas report released Thursday. Embratel will be
technically able to offer local telephony from January 1 by
leveraging previously installed infrastructure.

Embratel expects to meet the coverage goals set by Telecoms
regulator Anatel in order for it to be able to bid for new
concessions. Local loop access also depends on Anatel's efforts
to force unbundling, which Embratel executives expect to be
mandated within the next 30-45 days. However, there is a
difference between ordering unbundling and its actual
implementation, they pointed out.

One of Embratel's greatest concerns is non-payment, which led the
company to block more clients this month than in the previous six
combined. The company hoped to report non-payers to credit
agencies during August, but opposition from consumer protection
groups has so far hampered that plan. Provisions for doubtful
accounts for 2001 have been increased from 5-8 percent to 8-9
percent.


TRANSBRASIL: GECAS Files Motion Requesting Carrier's Bankruptcy
---------------------------------------------------------------
The pressure at Transbrasil is now mounting as GE Capital
Aviation Services has filed a motion requesting that bankruptcy
proceedings be started against the carrier for non-payment of a
total debt of $ 27 million. The debt is allegedly long since over
due on the leasing of five aircraft already returned to GECAS,
reported Aviation Daily Friday. The motion also demands immediate
payment of a promissory note for $2.7 million due June 29 that
was not honored. GECAS, however, still has to comply with a
series of legal requisites within 10 days to support its claim
before the court will rule on its motion.

According to industry analysts, Transbrasil has been in serious
financial trouble since 1999, aggravated by the devaluation of
Brazil's currency, higher fuel costs and declining demand.



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

AESGENER: Reaches Accord With Investors On Puerto Ventanas Sale
---------------------------------------------------------------
Chilean power generator AESGener signed a deal with a group of
investors led by Chilean engineering firm Sigdo Koppers on
Thursday to sell its 66-percent stake in Region V port Puerto
Ventanas for some US$60 million, Business News Americas said in a
report. The group of investors includes former executives from
Puerto Ventanas and AESGener, including Oscar Guillermo Garreton
and Bruno Philippi.

AESGener is in the process of offloading all its non-electricity
assets. In June, the company sold stakes in shipping line CCNI
and port services operator Agencias Universales (Agunsa), and
held unsuccessful auctions for its interests in port operator
Cabo Froward and Puerto Ventanas. AESGener then called on
interested parties to negotiate directly with them for the Puerto
Ventanas assets.


COLOWALL: First Sale Attempt Fails Due To Absence Of Bidders
------------------------------------------------------------
After the collapse of the first attempt to sell wallpaper company
Colowall due to the absence of interested bidders, a new creditor
assembly will define a new minimum price and will set a date for
a second bidding process next August, South American Business
Information reported. The new minimum price for Colowall will be
established at around one third less than the original price of
210,015 UF (fomentation units). Colowall, which is currently
undergoing a bankruptcy process, has estimated debts of 4 billion
pesos, 80 percent of which correspond to bank debts.


STARMEDIA: Cauley Geller, et al, Announces Class Action Lawsuit
--------------------------------------------------------------
The Law Firm of Cauley Geller Bowman & Coates, LLP announced
Thursday that a class action has been filed in the United States
District Court for the Southern District of New York on behalf of
purchasers of StarMedia Network, Inc. (Nasdaq: STRM) ("StarMedia"
or the "Company") securities during the period between May 25,
1999 and December 6, 2000, inclusive (the "Class Period").

The complaint charges defendants Goldman Sachs & Co., BancBoston
Robertson Stephens, Inc., Salomon Smith Barney ("Smith Barney")
and Morgan Stanley & Co., Incorporated ("Morgan Stanley") with
violations of Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder. On or about May 25,
1999, StarMedia commenced an initial public offering of 7 million
of its shares of common stock at an offering price of $15.00 per
share (the "StarMedia IPO"). In connection therewith, StarMedia
filed a registration statement, which incorporated a prospectus
(the "Prospectus"), with the SEC. The complaint further alleges
that the Prospectus was materially false and misleading because
it failed to disclose, among other things, that (i) defendants
had solicited and received excessive and undisclosed commissions
from certain investors in exchange for which defendants allocated
to those investors material portions of the restricted number of
StarMedia shares issued in connection with the StarMedia IPO; and
(ii) defendants had entered into agreements with customers
whereby defendants agreed to allocate StarMedia shares to those
customers in the StarMedia IPO in exchange for which the
customers agreed to purchase additional StarMedia shares in the
aftermarket at pre-determined prices. As alleged in the
complaint, the SEC is investigating underwriting practices in
connection with several other initial public offerings.


STARMEDIA: Schiffrin & Barroway, LLP Files Class Action Lawsuit
---------------------------------------------------------------
The following statement was issued on Thursday by the law firm of
Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in
the United States District Court for the Southern District of New
York, located at 500 Pearl Street, New York, NY 10007 on behalf
of all purchasers of the common stock of StarMedia Network, Inc.
(Nasdaq: STRM) ("StarMedia" or the "Company") from May 25, 1999
through December 6, 2000, inclusive (the "Class Period") "against
defendants Goldman Sachs & Co., BancBoston Robertson Stephens,
Inc., Salomon Smith Barney, Inc. and Morgan Stanley & Co.,
Incorporated."

On or about May 25, 1999, StarMedia commenced an initial public
offering of 7,000,000 of its shares of common stock at an
offering price of $15.00 per share (the "StarMedia IPO"). In
connection therewith, StarMedia filed a registration statement,
which incorporated a prospectus (the "Prospectus"), with the SEC.
The complaint alleges that the Prospectus was materially false
and misleading because it failed to disclose, among other things,
that: (i) defendants had solicited and received excessive and
undisclosed commissions from certain investors in exchange for
which defendants allocated to those investors material portions
of the restricted number of StarMedia shares issued in connection
with the StarMedia IPO; and (ii) defendants had entered into
agreements with customers whereby defendants agreed to allocate
StarMedia shares to those customers in the StarMedia IPO in
exchange for which the customers agreed to purchase additional
StarMedia shares in the aftermarket at pre-determined prices. As
alleged in the complaint, the SEC is investigating underwriting
practices in connection with several other initial public
offerings.

Plaintiff seeks to recover damages on behalf of class members and
is represented by the law firm of Schiffrin & Barroway, LLP, who
has significant experience and expertise prosecuting class
actions on behalf of investors and shareholders.


TELEX-CHILE: Shareholders To Vote Aug. 31 On Chilesat Sale
----------------------------------------------------------
Chilean telecoms holding company Telex has scheduled for August
31 an extraordinary shareholders' meeting to vote on amendments
to the company's charter that would make way for the sale of its
principal asset Chilesat, Business News Americas revealed in a
report last week. An article in Telex's current charter requires
no less than 90 percent of voting shareholders to approve the
divestiture of strategic assets.

In June, Telex creditors and shareholders agreed in principal to
eliminate the clause. In April, long distance and network
operator Chilesat defaulted on an US$8.9-million credit facility.
The Telex board subsequently recommended its sale after creditors
refused to grant a 12-month grace period.



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

AHMSA: Federal Judge Suspends Arrest Warrants
---------------------------------------------
Grupo Acerero del Norte (GAN), a holding company for Altos Hornos
de Mexico SA (AHMSA), one of Mexico's biggest steel companies,
disclosed Friday that a federal judge had suspended the arrest
warrants issued against two of its top executives, Reuters said
in a report. The warrants were issued against Xavier Autrey and
Jorge Ancira amidst allegations that they committed fraud in
applying for an $11-million loan from Banco del Bajio, a small
banking institution based in Mexico's central region. The company
said it posted a $1-million bond as part of the process of having
the warrants suspended.

GAN's legal representative, Fernando Gomez Mont, said in the
statement that the company would prove that there was no legal
basis for the accusations. He described the arrest warrants and
the legal process by Banco del Bajio as pressure tactics by the
bank to gain advantages against other creditors.

In a related report, Autrey and Ancira are slated to appear
before a Monterrey court to respond to the said allegations.

GAN and AHMSA (also known as Altos Hornos de Mexico) have both
suspended payments on debt and have been working out debt
restructuring with creditors.


BANCRECER: ING, Sabadell's Withdrawal From Auction Questioned
-------------------------------------------------------------
The conditions under which Netherlands-based ING and Spanish
banking institution Sabadell withdrew from government-intervened
Bancrecer's forthcoming auction is now under the investigation of
Deutsche Bank, Mexico City daily Reforma reported Friday. If
Deutsche Bank, the agent handling Bancrecer's upcoming sale for
Mexican bank bailout agency IPAB, can prove that ING and Sabadell
pulled out their official applications to participate in the
auction after IPAB released a list of registered bidders for the
bank, then both ING and Sabadell could be held responsible in
some form.

Sabadell reversed its registration to participate in the auction
because several analysts suggested that the bank could jeopardize
up to 30 percent of its total assets by entering Mexico in a
major way. On the other hand, ING, reportedly withdraw because
its local office didn't obtain proper authorization from its
European headquarters to take part in the auction.


BANCRECER: IPAB To Get US$45.1M From Sale Of Loan Portfolios
------------------------------------------------------------
Mexico's Bank Savings Protection Agency (IPAB) expects to receive
US$45.1 million from the sale of six past due loan portfolios
that belong to government-intervened bank Bancrecer, Business
News Americas reported Friday. In a statement, IPAB disclosed
that the amount represents approximately 25.72 percent of the
portfolios' US$175 million book value. GE Capital Mexico, Lone
Start U.S. Acquisition, LLC and Solida Administradora de
Portfolios offered the highest bids for the loan portfolios. The
companies have until August 15 to pay IPAB.


BUFETE INDUSTRIAL: Posts Deepening Losses In The First Half
-----------------------------------------------------------
Financially-strapped Mexican construction company Bufete
Industrial posted a net loss of 556.5 million pesos in the first
six months of this year, against a net loss of 553 million pesos
in the comparable period last year, according to a report Friday
in Mexico City daily Reforma. Sales during the first-half of the
current year were down by 51.8 percent, to 134.3 million dollars,
compared to the same period last year.

The company reported an operating loss of 141 million pesos for
the period, compared to an operating loss of 243.1 million pesos
in the same period last year. According to Bufete, integrated
financial costs during the first half of the year totaled 556.5
million pesos, as against 553 million pesos in the same period
last year.


GALEY & LORD: S&P Lowers Sr. Secured to B, Subordinated To CCC+
---------------------------------------------------------------
Standard & Poor's (S&P) downgraded the corporate credit ratings
of Galey & Lord Inc., a maker of clothing fabrics, which
currently struggles with losses and slowing sales, Bloomberg
reported Friday.

In its CreditWatch report, S&P said Galey & Lord's corporate
credit and senior secured debt ratings were lowered to `B' from
`B+.' The company's subordinated debt rating was reduced to
`CCC+' from `B-.' The outlook for the company is negative, S&P
said in a statement. The ratings downgrade, which affects about
$683 million of debt securities, reflects Galey & Lord's reduced
profitability and high debt levels, according to S&P. A lower
credit rating boosts a company's borrowing costs on future loans.

Just recently, Galey & Lord announced that its board of directors
decided to discontinue its garment making operations in Mexico
due to the continuing difficult business environment.


GRUMA SA: 2Q Net Sales Amount To 1.4 Billion Pesos
--------------------------------------------------
Mexico's Grupo Industrial Maseca (Gruma), the world's largest
maker of corn flour and tortillas, posted 1.4 billion pesos in
net sales during the second quarter of this year, according to a
report in Mexico City daily Reforma. Of the total net sales for
the quarter, sales by the company's foreign subsidiaries together
accounted for 64 percent. U.S. sales accounted for 43 percent;
Mexican sales, 27 percent; Venezuelan sales, 14 percent; and
Central American sales, 6 percent.

A previous TCR-LA report stated that Gruma SA might sell its
bread business if the division doesn't turn a profit by the end
of this year. According to the company's chief of staff, Jose
Maria Gonzalez, the bread business is now under "total and
complete review" due to losses since it commenced operations in
late 1998 with a $50-million plant near Monterrey.


GRUPO SIMEC: Announces 1H01 Results; Stronger Peso Helps Net
------------------------------------------------------------
Grupo Simec, S.A. de C.V. (AMEX: SIM) (Simec) announced Friday
its results of operations for the six- month period ended June
30, 2001. Net sales decreased 14% during the six months ended
June 30, 2001, as compared to the same period in 2000, from Ps.
1,108 million to Ps. 956 million. Simec recorded financial income
of Ps. 46 million during the first six months of 2001 compared to
financial expense of Ps. 172 million during the same period in
2000, due principally to an exchange gain of Ps. 97 million in
the six months ended June 30, 2001, compared to an exchange loss
of Ps. 133 million in the same period of 2000. This resulted  
from an increase of 5.3% in the value of the peso versus the
dollar during the six months ended June 30, 2001, compared to a  
decrease of 4.6% in the value of the peso versus the dollar
during the same period of 2000. Primarily as a result of the
foregoing, in the six months ended June 30, 2001, the Company
recorded net income of Ps. 134 million versus a net loss of Ps.
126 million for the comparable period of 2000.

On March 29, 2001, Grupo Sidek, S.A. de C.V. consummated the sale
of its entire approximate 62% controlling interest in Simec to
Industrias CH, S.A. de C.V. (ICH). ICH also acquired additional
common shares of certain Simec bank creditors that, in connection
with the transaction, converted approximately US$95.4 million of
bank debt (US$90.2 million of principal and US$5.2 million of
interest) into common shares of Grupo Simec at a conversion price
equivalent to US$3.87 per American Depositary Share. As a result,
ICH holds an approximate 82.5% interest in Simec.

Simec sold 276,441 metric tons of basic steel products during the
six- month period ended June 30, 2001, as compared to 304,327
metric tons in the same period in 2000. Exports of basic steel
products decreased to 20,417 metric tons during the first six
months of 2001, versus 40,832 metric tons in the same period in
2000. Prices of products sold during the six-month period ended
June 30, 2001, decreased 5% in real terms versus the prior
comparable period.

Simec's direct cost of sales was Ps. 636 million during the first
six months of 2001, or 67% of net sales, versus Ps. 713 million,
or 64% of net sales, for the comparable period in 2000. Indirect
manufacturing, selling, general and administrative expenses
(including depreciation) decreased 7% during the six-month period
ended June 30, 2001, as compared to the same period in 2000,
falling from Ps. 242 million to Ps. 226 million.

Simec's operating income decreased 39% to Ps. 94 million during
the six- month period ended June 30, 2001, as compared to Ps. 153
million in the same period of 2000. As a percentage of net sales,
operating income was 10% in the six-month period ended June 30,
2001, and 14% in the same period of 2000.

At June 30, 2001, Simec's total consolidated debt consisted of
approximately $178 million of U.S. dollar-denominated debt, while
at December 31, 2000, Simec had outstanding $274 million of
dollar-denominated debt. The decrease in total debt reflects the
conversion of approximately

US$90.2 million of bank debt (plus US$5.2 million of accrued
interest thereon) into common shares of Simec as described above,
as well as scheduled amortization payments in May 2001 on the
bank debt and 10 1/2% Third Priority Notes due November 15, 2001
(the CSG Notes), of Simec's wholly-owned subsidiary, Compania
Siderurgica de Guadalajara, S.A. de C.V. (CSG"), as well as the
redemption at par plus accrued interest of $14.5 million of CSG
Notes pursuant to an offer made by CSG to holders of the CSG
Notes because of the change in control resulting from the
acquisition by ICH of a controlling interest in Simec. In July
2001, pursuant to the exercise of its optional redemption rights,
CSG redeemed the remaining $37.8 million of outstanding CSG Notes
at par plus accrued interest. All of Simec's remaining
consolidated debt matures in 2009 (other than (i) approximately
$57.1 million of debt, as of July 26, 2001, owed to ICH which
matures on June 30, 2002, and which was incurred to refinance the
redemption of the CSG Notes, (ii) $384 thousand of bank debt
which matures in 2007 and (iii) $622 thousand of Simec's Medium-
Term Notes due 1998 which remain outstanding and unpaid) and all
of Simec's consolidated debt (other than $1.5 million of bank
debt) amortizes in equal semi-annual installments.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at June 30, 2001.

Simec is a mini-mill steel producer in Mexico and manufactures a
broad range of non-flat structural steel products.


TFM: Group TMM To Close TFM-Stake Acquisition In September
----------------------------------------------------------
Grupo Transportacion Maritima Mexicana (TMM) is expected to
complete an acquisition of the Mexican federal government's
remaining 24.6-percent stake in TMM rail-transport subsidiary
Transportacion Ferroviaria Mexicana (TFM) in September in a
transaction valued at approximately $170 million, according to a
report Friday in Mexico City daily Reforma. Reports have it that
TMM will issue bonds worth $200 million soon in order to finance
the forthcoming transaction. Preparations for the bond issue are
said to be in the final stages.

With the acquisition, TFM, Mexico's No. 2 rail transport company,
will become a wholly owned subsidiary of TMM.


VITRO: Sources Deny Reports Regarding Conflict At Mgt., Board
---------------------------------------------------------------
There is no truth to speculations that Raul Ranger, who
relinquished his managerial position more than a year ago at
leading Mexican glass maker Vitro, is to vacate his post on the
company's board of directors, Mexico City daily Reforma reported
Friday. According to Vitro sources, management changes, which
took place at Vitro as part of a corporate reorganization
process, have now come to an end. They also categorically denied
reports that there currently is a conflict between Vitro Chairman
Adrian Sada and company CEO Federico Sada. The corporate
reorganization process at Vitro has been conducted in an
atmosphere of total respect between the company's chairman and
its CEO, the sources said.



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

SIVENSA: IBH Files For Listing In The Nasdaq Small Cap Market
-------------------------------------------------------------
International Briquettes Holding (IBH) reported Friday that it
filed a listing application for the transfer of its shares to The
NASDAQ Small Cap Market. The company has been advised that it
complies with the qualification requirements for foreign
securities for continued inclusion in The NASDAQ Small Cap Market
as provided in the NASDAQ Marketplace Rules 4320. The NASDAQ
Small Cap Market would allow the company's shares to continue to
trade in NASDAQ. The Small Cap Market continued listing standard
is less stringent while the company's ability to issue new
capital will be limited. In addition, as announced on July 25,
2001, the company appealed the NASDAQ staff determination dated
July 20, 2001 indicating that the company fails to comply with
certain requirements for continued listing in The NASDAQ National
Market. If NASDAQ grants the company's request for inclusion in
The NASDAQ Small Cap Market, the appeal process may be
discontinued. There can be no assurance that NASDAQ will grant
the company's request for inclusion in The NASDAQ Small Cap
Market nor of the outcome of the appeal process. IBH shares
continue to be listed in the Caracas Stock Exchange.




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

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

Copyright 2001.  All rights reserved.  ISSN 1529-2746.

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