/raid1/www/Hosts/bankrupt/TCRLA_Public/011030.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

            Tuesday, October 30, 2001, Vol. 2, Issue 212

                           Headlines



A N T I G U A   &   B A R B U D A

LIAT LTD.: Caribbean Star Slams Idea of Possible Merger


A R G E N T I N A

ACINDAR: Stocks Fall On Collapsed Provincial Government Talks


B R A Z I L

BANCO ECONOMICO: Sale Of Acominas Stake Collapses
CESP: Election Year Considerations Cloud Sale Structure Decision
EMBRAER: To Roll Out New 70-Seater Plane This Week
GERDAU: Raises US$100M External Loan
MOULINEX: Receiver Asks For Suspension Of Shares

SOLETUR: Lawyer Defends Bankruptcy Move
SOLETUR: Collapse Viewed As Additional Strain On Airlines
TRANSBRASIL: Down To Just Six Jets In Fleet


E C U A D O R

BANCO DEL PROGRESO: Aspiazu OKs Power Company Sales To Pay Debts


M E X I C O

GRUPO SIMEC: Operating, Net Income Down First Nine Months of 01
SAVIA: Reports 3Q01 Results; Narrowing Losses On Cut Expenses
VITRO SA: Can Refi, Pay Off Some Debt In Short Term, S&P Says


P E R U

AEROCONTINENTE: Zevallos Says Charges Created To Destroy Airline


T R I N I D A D   &   T O B A G O

BWIA: Secures Contracts From Air France
BWIA: Likely To Get Financial Aid From Government


V E N E Z U E L A

CAVENDES BANCO: Heading For Liquidation Due To Increasing Losses
     - - - - - - - - - - -



=================================
A N T I G U A   &   B A R B U D A
=================================

LIAT LTD.: Caribbean Star Slams Idea of Possible Merger
-------------------------------------------------------
Caribbean Star's acting president, CEO Paul Moreira, made it
absolutely clear that there's no chance of his company merging
with fellow regional airline LIAT, The Barbados Nation reported
Friday.

According to Moreira, Caribbean Star believes firmly in
competition.

"[Merging] is not part of our vision; we are committed to and
support competition. Others are reducing their flights and the
number of employees, but we are growing."

"I wish LIAT the best of luck. Competition is good... it will
stimulate the market," he said.



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

ACINDAR: Stocks Fall On Collapsed Provincial Government Talks
-------------------------------------------------------------
Shares of Acindar Industria Argentina de Aceros SA fell 2.4
percent to 21 centavos after the government failed to reach an
agreement with provincial governors to cut spending, increasing
the likelihood it may default on its debt, Bloomberg reported
Friday.

The company posted its 10th consecutive quarterly loss in the
fourth quarter as construction projects have plunged.

Acindar recently had its ratings lowered by Moody's: Senior
Implied to Caa3 from Caa1; Issuer rating to Caa3 from Caa1; $100
million of 11.25 percent senior notes, due 2004, to Caa3 from
Caa1



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

BANCO ECONOMICO: Sale Of Acominas Stake Collapses
-------------------------------------------------
The Brazilian Central Bank's attempt to sell Wednesday a 17.67-
percent stake in Minas Gerais-based steelmaker Acominas flopped
when nobody turned out for the sale, Business News Americas
reported.

Unfortunately for the Central Bank, not even a representative of
the only company that expressed an interest, Belo Horizonte-based
Belgo-Mineira, showed up.

The 17.67 percent Acominas stake was originally held by failed
bank Banco Economico. According to liquidator Natalicio Pegorini,
a timetable and agreed form for a new sale attempt has yet to be
reached. He maintained the minimum price was not too high.


CESP: Election Year Considerations Cloud Sale Structure Decision
----------------------------------------------------------------
The members of the Sao Paulo government don't altogether agree to
a plan to split Cesp Parana into three companies as the only way
to sell it considering the company's high dollar debt, Valor
Economico reported. Some members don't believe that there is
enough time to do this in an election year.

One alternative being proposed is to wait until after the
elections.

The main strategy for the company is to divide it into three
subsidiaries, to be sold sequentially, with the capital gained
being used to pay down the debt of the succeeding companies.

A total sale of CESP by the state has already failed twice. In
its previous attempts to sell the company over the past year,
bidders were concerned the company's large U.S. dollar debt would
reduce their investment returns.

Meanwhile, continued uncertainties over the company's future has
caused the value of its shares to fall 20.16 percent.


EMBRAER: To Roll Out New 70-Seater Plane This Week
--------------------------------------------------
Brazil's Embraer, the world's fourth largest aircraft
manufacturer, was planning to unveil early this week a regional
jet despite a slump in the global aviation industry, AP reported.

Embraer will roll out its 70-seat ERJ-170 plane, despite
dwindling passenger numbers and cutbacks at several of the
world's airlines. The company boasted of 82 orders for the new
jet.

As travelers around the globe shun long-distance trips, air
traffic on shorter routes may even increase, as tourists prefer
destinations closer to home, Embraer predicts.

To see company's latest financial statements:
http://www.bankrupt.com/misc/Embraer.pdf

CONTACT:  Anna Cecilia Bettencourt
          +55 12 345 1106
          acecilia@embraer.com.br

          Milene Petrelluzzi
          +55 12 345 3054
          milene.petrelluzzi@embraer.com.br


GERDAU: Raises US$100M External Loan
------------------------------------
Leading steel company Gerdau managed to raise an external loan of
US$100 million, with no guarantee despite the recent turmoil in
the international market, Valor Economico reported.

The loan, which was led by J.P. Morgan, was split into two
tranches: one worth US$40 million to expire within two years and
another worth US$60 million to expire within three years.

The resources will be used to extend the company's debt overseas.

Gerdau also has US$100 million in eurobonds due in November,
which will be paid with cash resources, amounting to US$180
million. Among the firms taking part in the operation are
Deutsche Bank, BNP Paribas, WestLB Banco Europeu and Salomon
Smith Barney/Citibank.

Gerdau is currently restructuring its debts tied to the US dollar
aiming to end the 2001 fiscal period with less pressure on its
cash flow, and also less exports and production losses due to
energy rationing.

Clearing internal debts tied to the US dollar is essential to
protecting the company from the exchange fluctuations in Brazil.


MOULINEX: Receiver Asks For Suspension Of Shares
------------------------------------------------
Didier Segard, the receiver responsible for the troubled French
electrical appliances group Moulinex, asked to suspend the
group's shares after they plunged 44 percent Thursday, to 50
cents each, Les Echos said in a report.

In a press statement, Segard informed that shareholders have
"nothing to hope for" after the takeover of some of Moulinex's
assets by rival French group SEB. According to Segard, the sale
price of $45 million in cash and the takeover of debt corresponds
only to the assets acquired by SEB.

He added that the realization of the un-acquired assets, which
would take place when the operation was complete, would not
offset the liabilities of Moulinex, which amount to some 800
million euros.



SOLETUR: Lawyer Defends Bankruptcy Move
---------------------------------------
Soletur attorney Eduardo Kolache defended the tourism operator's
move to file for bankruptcy, Gazeta Mercantil Online reported.

Kolache explained that the alternative option of filing for
protective reorganization and having two years to balance its
finances would not work in the case of a tourism company.

"Who would buy a tourism package from a company that had filed
for reorganization?" he asked.

With the declaration of bankruptcy, the R$25 million of Soletur's
assets were placed at the disposal of the Court to liquidate
debts with creditors, evaluated at R$30 million. Priority will be
given to labor obligations, Tax and Social Security debts and
juridical charges, in that order.

Kalache said that, effective with the bankruptcy filing, the
company ceased to exist, adding all the installment payments made
by clients should be challenged in Court.


SOLETUR: Collapse Viewed As Additional Strain On Airlines
---------------------------------------------------------
Economists believed that the demise of Soletur could put an
additional strain on top clients like Brazilian airlines Varig
and TAM, sending ripples through other dependents like auto-
rental companies and hotels, Reuters reported Friday.

"After the shock of the terrorist attacks, we saw an initial
impact on airline companies, and now we are seeing it pass along
the tourism chain," said Sandra Utsumi, an economist at BES
Investimentos in Sao Paulo.

After 38 years in business and a staff of 450 employees,
insurmountable debts toppled the company as Brazil's Soletur
filed for bankruptcy. Soletur depends on foreign trips for more
than two-thirds of its revenue. The scores of cancellations on
U.S. trips after last month's attacks put the operator out of
business.


TRANSBRASIL: Down To Just Six Jets In Fleet
-------------------------------------------
Brazilian air transportation company Transbrasil now has only six
jets in its fleet after losing one more aircraft, Valor Economico
reported.

The company is trying to find a replacement turbine for one of
the three Boeing 767s that is currently grounded for maintainence
problems.

Meanwhile, the union representing the employees of Transbrasil
claims that the company has still not paid all the benefits owed
to its employees.

The company has seen a 20-percent increase in seat sales since it
moved its operations to Congonhas airport from Guarulhos.



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

BANCO DEL PROGRESO: Aspiazu OKs Power Company Sales To Pay Debts
-----------------------------------------------------------------
Former banker Fernando Aspiazu, who is currently in the Quito
prison, authorized the sale of power companies Emelec and
Electroecuador, El Comercio reported. The power companies are to
be put on the block in order to pay for the bank account deposits
of nearly 10,000 clients of Banco del Progreso, which went
bankrupt in 1999.

Aspiazu believes that the sale of those power companies will be
sufficient to cover debts owed to the government as well. His
overall debts amount to US$113 million, which might be satisfied
by the end of the year.



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

GRUPO SIMEC: Operating, Net Income Down First Nine Months of 01
---------------------------------------------------------------
In an official press release, Grupo Simec, S.A. de C.V. (Amex:
SIM) ("Simec") announced Friday its results of operations for the
nine-month period ended September 30, 2001. Net sales decreased
15% during the nine months ended September 30, 2001 as compared
to the same period in 2000, from Ps. 1,717 million to Ps. 1,464
million. Simec recorded income from other financial operations of
Ps. 33 million in the 2001 period versus a loss from other
financial operations of Ps. 35 million in the 2000 period. In
addition Simec recorded a reserve for income tax and employee
profit sharing of Ps. 43 million in the 2001 period versus a
reserve of Ps. 129 million in the 2000 period. Primarily as a
result of the foregoing, in the nine months ended September 30,
2001 Simec recorded net income of Ps. 114 million versus net
income of Ps. 32 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 of Simec's bank creditors that, in
connection with the transaction, converted approximately U.S.
$95.4 million of bank debt (U.S. $90.2 million of principal and
U.S. $5.2 million of interest) into common shares of Simec at a
conversion price equivalent to U.S. $3.87 per American Depositary
Share. In the third quarter of 2001, ICH converted approximately
$69.5 million of loans to Simec plus accrued interest thereon
(which loans were made principally to fund the redemption of
Simec debt described below) into common shares of Simec at a
conversion price equivalent to U.S. $1.60 per American Depositary
Share.

Simec sold 427,237 metric tons of basic steel products during the
nine-month period ended September 30, 2001 as compared to 465,107
metric tons in the same period in 2000. Exports of basic steel
products decreased to 36,870 metric tons during the first nine
months of 2001 versus 55,174 metric tons in the same period in
2000. Prices of products sold during the nine-month period ended
September 30, 2001 decreased 7% in real terms versus the prior
comparable period.

Simec's direct cost of sales was Ps. 983 million during the first
nine months of 2001, or 67% of net sales, versus Ps. 1,119
million, or 65% of net sales, for the comparable period in 2000.
Indirect manufacturing, selling, general and administrative
expenses (including depreciation) decreased 8% during the nine-
month period ended September 30, 2001 as compared to the same
period in 2000, falling from Ps. 365 million to Ps. 334 million.

Simec's operating income decreased 37% to Ps. 147 million during
the nine-month period ended September 30, 2001 as compared to Ps.
233 million in the same period of 2000. As a percentage of net
sales, operating income was 10% in the nine-month period ended
September 30, 2001 and 14% in the same period of 2000.

Simec recorded financial expense of Ps. 23 million during the
first nine months of 2001 compared to financial expense of Ps. 44
million during the same period in 2000 due principally to (i) net
interest expense of Ps. 133 million in the first nine months of
2001 compared to net interest expense of Ps. 238 million in the
same period of 2000, (ii) an exchange gain of Ps. 51 million in
the nine months ended September 30, 2001 compared to an exchange
gain of Ps. 33 million in the same period of 2000; this resulted
from an increase of 0.5% in the value of the peso versus the
dollar during the nine months ended September 30, 2001 compared
to an increase of 1.1% in the value of the peso versus the dollar
during the same period of 2000 and (iii) a gain from monetary
position of Ps. 59 million in the first nine months of 2001
compared to a gain from monetary position of Ps. 161 million
during the same period of 2000, reflecting the domestic inflation
rate of 3.4% in the first nine months of 2001 compared to the
domestic inflation rate of 6.1% in the same period of 2000.

At September 30, 2001, Simec's total consolidated debt consisted
of approximately $109 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 U.S. $90.2 million of bank debt (plus
U.S. $5.2 million of accrued interest thereon) into common shares
of Simec, scheduled amortization payments in May 2001 on Simec's
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"), the redemption
at par plus accrued interest of the entire outstanding amount of
$52.3 million of CSG Notes and the conversion to equity, as
described above, of a substantial portion of the debt owed to ICH
which was incurred to finance the redemption of the CSG Notes, as
well as the repayment of $16 million of bank debt in the third
quarter 2001. Substantially all of Simec's remaining consolidated
debt matures in 2009 and 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 September 30, 2001.

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

CONTACT:  Adolfo Luna Luna or Jose Flores Flores,
          both of Grupo Simec, S.A. de C.V., in Mexico,
          52-3-669-5845


SAVIA: Reports 3Q01 Results; Narrowing Losses On Cut Expenses
-------------------------------------------------------------
Savia S.A. de C.V. (NYSE: VAI) (BMV: SAVIA) announced Friday its
third quarter results for 2001.

CONSOLIDATED THIRD QUARTER RESULTS

For the purpose of reporting third quarter results for 2001 and
the comparative results for the year 2000, the results of Seguros
Comercial America and Empaques Ponderosa are reported as
discontinued operations.

Net Consolidated Sales

Net consolidated sales from continuing operations reached U.S.
$160 million in the third quarter of 2001, a reduction of 4% from
the third quarter in 2000. Sales for the quarter by currency
were: 41% were denominated in U.S. dollars, 20% in Euros, 19% in
Mexican Pesos and the remaining 20% in Asian and other
currencies.

Consolidated Operating Income

Consolidated income from continuing operations recovered U.S. $53
million during the quarter and reached an operating loss of U.S.
$6 million compared to a loss of U.S. $59 million reported in
2000. This substantial reduction in operating loss was the result
of a 31% decrease in the cost of sales and a reduction of 22% in
operating expenses. The company's cash flow reported U.S. $1
million from a negative cash flow of U.S. $51 million in 2000, a
clear indication of the recovery of the business.

Net Consolidated Income

Net consolidated income from operations continued to reverse its
negative trend for the third consecutive quarter. The company
reported a loss of U.S. $110 million compared with a loss of U.S.
$178 million reported in the same period last year. The majority
loss for the third quarter rose to U.S. $89 million, or a loss of
1.84 pesos per share (U.S. $0.77 per ADR).

THIRD QUARTER RESULTS FOR THE PRINCIPAL SUBSIDIARIES

    Seminis
                             Business Indicators
                   Millions of Dollars as of September 2001

                                    Jul-Sept        Jul-Sept
                                      2001            2000

    Sales                             111             98
    Cost of Sales                      43             75
    Gross Income                      62%             23%
    Operating Expenses                 57             72
    Operating Income                   10            (50)
    Cash Flow                          15            (44)

Total sales for Seminis (Nasdaq: SMNS) grew 14 % in the third
quarter of 2001 when compared to the same period last year. This
important increase was obtained despite a slight reduction in
demand for seeds in South America and the Middle East as a result
of the economic situation in those regions. Sales in North
America and Europe grew by 25%. Gross profit increased to 62% of
sales in comparison to 23% in the same quarter in 2000. During
the period Seminis reduced operational expenses by 21%. The
reduction in costs and operating expenses are planned not-to
affect the growth of the business in the medium and long term.
Accounts receivable were reduced by 11% and inventories by 16%,
improving the efficiency on working capital. Operating income
reached U.S. $10 million and reversed the loss of U.S. $50
million incurred in 2000. As a result of these initiatives, the
company had a positive cash flow of U.S. $15 million in
comparison to a negative cash flow of U.S. $44 million in the
same period last year. The cash flow generated during the quarter
allowed the company to reduce its bank debt by U.S.$16 million
and fulfill the financial commitments previously agreed upon.

Bionova

Results for Bionova (Amex: BVA) showed sales of U.S. $42 million
for the third quarter of 2001. This represents an increase of 3%
compared to the prior year. During the quarter gross income
double to U.S. $4 million. Operating income registered a loss of
U.S. $5 million in the third quarter of 2001, an improvement over
the loss of U.S. $6 million reported in the third quarter of last
year and a clear indication of the improvement lawsuit promoted
by Grace Brothers Limited.

YEAR TO DATE RESULTS

Net Consolidated Sales

Net consolidated sales were U.S. $576 million, a decrease of 13%
in comparison to the same period last year. This reduction was
due primarily to Savia's discontinued operations, the effect of
currency exchange rates and a slight reduction in sales. Sales
for the period by currency were: 43% are denominated in U.S.
dollars, 21% in Euros, 18% in Mexican Pesos and the remaining 18%
in Asian and other currencies.

Consolidated Operating Income

Consolidated operating income accumulated to the end of the third
quarter of 2001, which includes extraordinary charges of U.S. $73
million, reported a loss of U.S. $54 million, a 19% improvement
over the results of 2000. This recovery was the result of a
reduction in operating expenses of 17% and a reduction in costs
of sales of 12%. Cash flow grew U.S. $10 million reaching a
negative cash flow of U.S. $34 million during the period.

Net Consolidated Income

Net consolidated loss in this period was U.S. $201 million, a
figure 31% less than the loss reported for the same period in
2000. The majority loss reached U.S. $182 million, a reduction of
U.S. $30 million, or an improvement of 14%.

YEAR TO DATE RESULTS FOR PRINCIPAL SUBSIDIARIES

Seminis

Sales for Seminis' continuing operations through the third
quarter of 2001 reached U.S. $371 million, a reduction of 10%
with respect to the same period last year. Operating expenses
were reduced by 15% to the reported U.S. $186 million for the
first nine months of 2001. Inventories were reduced by 16%,
payables were reduced by 13% and days of sales outstanding were
reduced from 130 in 2000 to 112 in 2001. Operating loss reached
U.S. $15 million, a 36% improvement over the results obtained in
2000. Cash flow from operations for the period improved by 74%
over 2000. During the period Seminis reduced its bank debt by
U.S. $33 million.

Bionova

Sales for Bionova were U.S. $170 million, similar to those
reported during the same period in 2000. The operating loss was
U.S. $8 million in comparison with a loss of U.S. $19 million in
the same period last year, that is, a reduction of 61% or U.S.
$12 million.

To see company's financial statements:
http://www.bankrupt.com/misc/Savia.pdf

CONTACT:  Francisco Garza, Investor Relations
          Savia S.A. de C.V., in Mexico, 528-3990871, or
          fjgarza@savia.com.mx;
          or          
          Francisco del Cueto, Media Relations
          5-6623198, or delcueto@mail.internet.com.mx


VITRO SA: Can Refi, Pay Off Some Debt In Short Term, S&P Says
--------------------------------------------------------------
Standard & Poor's (S&P) expressed confidence in Mexico's leading
glass manufacturer Vitro's ability to refinance and pay off some
$514 million of its debt in the short term, EFE disclosed in a
report.

According to S&P, Vitro's third quarter financial results meet
expectations and will not affect the company's outlook.

However, the company continues being hindered somewhat by the
strength of the Mexican peso and the slump in the Mexican and
U.S. economies. lthough the company's cash flow fell 13 percent,
its finances were relatively unaffected due to low interest
rates, S&P said.



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

AEROCONTINENTE: Zevallos Says Charges Created To Destroy Airline
----------------------------------------------------------------
AeroContinente founder Fernando Zevallos said he would not let
accusations cripple him, Reuters revealed in a report.

"These judicial problems have been created to try to destroy Aero
Continente's aggressive growth, and that hasn't happened," he
said.

The executive returned to Lima this week from his Miami home to
face accusations that he accepted at least $1 million from drug
runners to help found the airline.

"There is no proof (against me)," said Zevallos, who after
arriving was charged in a second case with Montesinos links, and
was prohibited from leaving Peru.

Aero Continente's operations in Chile, where it ranks second
after LanChile, were grounded for nearly two months earlier this
year amid a money laundering inquiry, but the charges were later
dropped for lack of evidence.

That setback cost the airline, which controls 60 percent of the
Peruvian market, some $1 million to $1.5 million per day.



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Secures Contracts From Air France
---------------------------------------
Trinidad and Tobago's flagship carrier, BWIA West Indies Airways,
was delighted to have been awarded two contracts to handle
commercial and flight operations for Air France in Trinidad and
Tobago, according to a report released by The St. Vincent Herald.

"The award of this General Sales contract is a result of close
discussion with Air France over the past year and BWIA has had
ongoing discussions with the world's 8th largest airline about
ways to develop Caribbean air traffic and in particular Trinidad
and Tobago," said Vice President, Marketing and Sales, Beatrix
Carrington.


BWIA: Likely To Get Financial Aid From Government
-------------------------------------------------
BWIA is likely to get the financial backing it needs from the
government after Finance Minister Gerald Yetming expressed
sympathies toward the national carrier, The Trinidad Guardian
reported Friday.

Following the September 11 terrorist attacks in the US, BWIA has
been burdened with increased costs as a result of greater
insurance coverage all airlines in the world now are mandated to
carry.

The airline has appealed to the government for money to recoup
its losses.

Yetming said the government was concerned about the impact the
terrorist attacks had on BWIA.

"We have to be sympathetic and understanding," toward BWIA he
said.

Yetming said he could not take any action pending a report of a
meeting between BWIA and his ministry officials held earlier this
week, but he expects the report to be handed to him within the
next few days.



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

CAVENDES BANCO: Heading For Liquidation Due To Increasing Losses
----------------------------------------------------------------
Venezuela is likely to liquidate investment bank Cavendes Banco
de Inversion amid mounting losses, Mexico City daily El Universal
reported.

Cavendes, which the government took over in April 2000 after it
experienced liquidity problems, had losses of 208 billion
bolivars as of June. According to the government banking
regulator, the investment bank still continues to lose more than
1.5 billion bolivers monthly.

A decision is expected within weeks, banking officials said. The
government previously said it would put more funds in the
institution to prevent its collapse.




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 and Edem
Psamathe P. Alfeche, Editors.

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

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