/raid1/www/Hosts/bankrupt/TCRLA_Public/011113.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, November 13, 2001, Vol. 2, Issue 222

                           Headlines


A R G E N T I N A


ACINDAR: Losses Mount On Lower Volumes, Prices; Higher Charges
ACINDAR: Continues To Work With Partner On Cost-Saving Plan
BANCO FRANCES: To Participate In Country's Planned Restructuring


B R A Z I L

COPENE: Announces Results For 3Q01; YTD Net Down 69%
ELETRONORTE: Registers R$875M Loss
EMBRAER: Brazil Will Not Get Even With Canada Over Subsidy Row
GLOBO CABO: Shares Up On Rate Cut Speculation, Financing Costs
LIGHT: Disconnects 24,000 Clients In October For Exceeding Quota

TELEMAR: Plans To Meet Requirements But May Face Worker Strike
TRANSBRASIL: Desperate For Money To Keep Flying
VARIG: Pays 5 Times More To Renew Insurance


D O M I N I C A N   R E P U B L I C

CANADA 3000: Grounds Planes, Shuts Down Operations


M E X I C O

GRUPO MEXICO/SOUTH PERU: S&P Lowers Rating; On Watch Negative
GRUPO MEXICO: Moody's Lowers Asarco's Ratings On $1 Billion Debt
GRUPO SIDEK: Amends Asset Sales Report For 8/1 to 10/31 2000
VITRO: To Sell Assets To Raise $50M Needed For Asahi Partnership


T R I N I D A D   &   T O B A G O

BWIA: Gets Financial Relief From Government
BWIA: Pension Plan Ex-Members To Finally Get Their Shares


     - - - - - - - - - - -


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


ACINDAR: Losses Mount On Lower Volumes, Prices; Higher Charges
--------------------------------------------------------------
Net loss at Acindar SA during the first quarter to Sept 30 period
increased 80 percent to 20.7 million pesos, AFX-Asia reported
Friday.

The company attributed poor results to both lower production
volume and lower prices in both domestic and export markets. In
addition, the company incurred higher financial charges, partly
offset by cost reductions in administration and by less
depreciation.

Acindar posted a 16-percent drop in sales to 111.9 million pesos,
as volumes dropped 10 percent to 269,800 tonnes. Domestic sales
have also fell 13 percent to 80.4 million pesos as volumes
contracted 9 percent to 179,500 tonnes. Exports were off 23
percent to 31.5 million with average prices down 12.5 percent.


ACINDAR: Continues To Work With Partner On Cost-Saving Plan
-----------------------------------------------------------
Argentine steelmaker Acindar continues to carry out the
"turnaround plan" that was introduced by its new partner, the
Brazilian steel company Belgo-Mineira, Business News Americas
reported Friday.

The plan has included the reduction of its staff, lowering of
costs and the increase of its output.

"The administrations of Belgo and Acindar are working on the
operational recovery of the company so it will be at the same
standard and competitive level as Belgo's plants in Brazil," said
Belgo's management.

In addition, Belgo was able to restructure Acindar's debt despite
problems caused by Argentina's financial crisis.

Belgo acquired some 20 percent of Acindar almost a year ago and
immediately launched the cost-reduction measures. The two long-
products' companies have always stressed they are working in
partnership to improve Acindar's performance.

BANCO FRANCES: To Participate In Country's Planned Restructuring
----------------------------------------------------------------
BBVA Banco Frances SA, Argentina's sixth-largest bank, stated its
intention to participate in a planned restructuring and effective
default on much of the country's $155 billion of national and
provincial debt, Bloomberg reported Friday.

Banco Frances, owned by Spain's Banco Bilbao Vizcaya Argentaria
SA, plans to swap out all eligible government loans and bonds,
totalling about $3.5 billion as the government is pressuring
local banks to exchange their holdings for new securities or
loans. The new proposed paper is worth up to two-thirds less and
payments are delayed by three years.

"The banks' support is fundamental," said Alejandro Loizaga, who
oversees about $350 million for Lloyds Investment Managers in
Buenos Aires. "We're seeing signs they are getting behind it."

The local swap, if successful, is likely to save Argentina $2
billion of interest payments next year, according to a J.P.
Morgan Chase & Co. report.

About $500 million of Banco Frances' more than $4 billion of
government loans and securities is ineligible for the swap,
according to company officials. The bank "has the intention" to
exchange the remaining $3.5 billion, according to Finance
Director Marcelo Canestri.

To reduce the banks' losses from the transaction, the government
said it would exempt coupon payments on the new securities from a
35 percent tax, Canestri said.

Banco Frances also expects to show an accounting gain by swapping
debt for new securities that will be listed as loans and booked
at face value. Those gains will probably also be tax exempt,
Canestri said.



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

COPENE: Announces Results For 3Q01; YTD Net Down 69%
----------------------------------------------------
In an official press release, COPENE Petroquimica do Nordeste
S.A. (NYSE: PNE; BOVESPA: CPNE5) announced Friday results for the
three-month period ended September 30, 2001. All figures
discussed in this announcement are based on Brazilian Corporate
Law.

Net income for the third quarter was R$33.9 million, compared
with net income R$24.5 million for the equivalent period last
year. Results for the quarter were negatively impacted by the
Company's poor performance in the months of July and August of
this year in connection with the 27-day shut down for maintenance
of one of the Company's ethylene production units, as well as the
loss from participation in subsidiaries and associated companies
acquired on July 25, 2001, in conjunction with the auction of the
assets of Economico Empreendimentos held by the Central Bank of
Brazil. This was offset by the deferment of the year-to-date net
exchange variation liability for the quarter, or R$207.4 million,
which is allowed by Provisional Measure No. 03/2001 and CVM -
Brazilian Securities Commission - Deliberation No. 404.

For the nine-month period, the Company posted net income of
R$71.4 million, representing a 68.8 percent decline from net
income of R$228.6 million for the same period the previous year.

The Board of Administration approved the payment of dividends for
the third quarter of 2001 in the total amount of R$20.00 million,
based on the Accumulated Profits Reserve. The dividend
corresponds to R$11.50 per thousand common shares and preferred
class A and B shares. This dividend is equivalent to R$0.58 per
American Depositary Receipt (ADR). One ADR represents 50 class A
preferred shares.

Analysis of Results

Net sales for the quarter rose year-over-year by 4.9 percent to
R$736.7 million. For the nine-month period, net sales reached
R$2.3 billion, representing a year-over-year increase of 12.8
percent. Results for the three- and nine-month periods rose
mainly as a result of the improvement in prices of petrochemicals
during the periods. For the third quarter, the Company sold 609.4
thousand tons of petrochemicals, representing 12.3 percent and
15.1 percent quarter-over-quarter and year-over-year declines,
respectively. This was mainly due to the above-mentioned general
shutdown for maintenance of one of the ethylene production units
during July and August. For the nine-month period, the Company
sold 2,041.9 thousand tons of petrochemicals, representing a
year-over-year decline of 10.9 percent.

Exports for the quarter represented 7.4 percent of net sales of
petrochemicals and 6.1 percent of total net sales. For the nine-
month period, exports represented 10.1 percent of net sales of
petrochemicals and 8.5 percent of total net sales.

Following is a breakdown of the Cost of Products Sold by COPENE
for the quarter (in percentage terms):

                               3Q01       3Q00        2Q01
Naphtha                        81.7       82.6        84.4
Personnel                      2.4        2.4         2.1
Maintenance                    1.3        1.4         1.5
Depreciation and Amortization  4.2        4.2         3.7
Others                         10.4        9.4         8.3

During the third quarter, the price of naphtha, the Company's
main raw material, continued to be calculated on the basis of a
formula suggested for Petrobras during the fourth quarter of
2000. This formula has as its variables the price of naphtha in
the international spot market and the U.S. Dollar/Real exchange
rate. The price of naphtha sold by Petrobras to COPENE and other
Brazilian petrochemicals producers, which was set at R$500.00 in
August 2000, is adjusted monthly according to these two
variables.

During 2001 the variable which most affected the price of naphtha
was the devaluation of the Real against the U.S. Dollar. For the
fourth quarter of this year, an agreement with respect to the
price of naphtha is yet to be reached, since negotiations among
the parties involved (Petrobras and Brazilian petrochemicals
producers) are still taking place.

Gross margin for the quarter declined to 11.4 percent, from 15.0
percent for the third quarter of last year, as a result of the
increase in the price of naphtha. September was the best month of
the quarter in terms of gross margin, with 18.7 percent. For the
nine-month period, gross margin was 14.4 percent, down from 21.8
percent for the same period last year.

Sales, general and administrative expenses (SG&A) for the quarter
reached R$33.4 million, representing 4.5 percent of net sales for
the period and a 24.0 percent increase in SG&A from the same
period of 2000. For the nine-month period, SG&A rose by 23.4
percent to R$93.1million, or 4.0 percent of net sales, from
R$75.4 million, or 3.7 percent of net sales, for the equivalent
period last year. This was the result of the inflation during the
period and additional expenditures related to the transport and
storage of automotive gasoline, a product that COPENE started
selling only in the fourth quarter of 2000.

Financial expenditures for the third quarter totaled R$40.8
million, after the above-mentioned deferment of the exchange
variation, representing a year-over-year decrease of 40.4
percent. Year-to-date, financial expenditures reached R$296.5
million, of which 43.5 percent represented interest expenditures
and 56.5 percent monetary and exchange variation. Expenditures
resulting from interest increased year-over-year only by 40.8
percent during the nine-month period, while exchange variations
increased by 250.0 percent over the same period.

In accordance with Provisional Measure No. 03/2001 and CVM
Deliberation No. 404, COPENE decided to defer for a period of
four years (starting the amortization in 2001) R$261.2 million of
the R$377.4 million registered as exchange variation liability
for the nine-month period. Figures in the tables below are in
thousands of R$.

                             1Q01    2Q01     3Q01     Total
Financial Expenditures      34,227  36,147   58,653      129.026

Monetary Variations and
Exchange Liabilities      105,836  79,502  194,358   379,696
Deferred Exchange Variation
Liabilities                               (261,193) (261,193)
Amortization of Exchange
Variation                                   48,973    48,973
TOTAL                      140,063 115,649   40,791   296,502

Regarding financial income for the quarter, the portion which
resulted from financial applications in Reais remained stable,
even when compared with the average of the equivalent quarters of
the year 2000. Both the asset and liability exchange variation
for the quarter reflected the strong devaluation of the Real
against the U.S. Dollar occurred in 2001, resulting in a 536.7
percent increase in this item, when compared with the third
quarter of 2000. For the nine-month period, the same variation
rose year-over-year by 1034.7 percent.

In accordance with the same accounting regulation adopted for the
liability exchange variation, R$5.9 million in asset exchange
variations for the quarter were also deferred.

In 2001, financial income by quarter, in thousands of Reais (R$),
is broken down as follows:

                          1Q01     2Q01      3Q01      Total
Financial  Income        30,436   29,527    34,201     94,163
Asset Monetary and Exchange
Variations             31,537    22,957    49,757    104,251
Deferred Asset Exchange
Variations                                 (5,963)    (5,963)
Amortization of Asset
Exchange Variation                          1,118      1,118
TOTAL                   61,973    52,484    79,113    193,569

The item participation in subsidiaries and associated companies
presented a loss for the nine-month period of R$8.5 million,
compared with a gain of R$8.8 million for the same period of
2000, mainly reflecting losses of R$31.2 million from Nova
Camacari, one of the companies incorporated into COPENE in
September 2001 in conjunction with the auction of the Economico
Emprendimentos assets.

EBITDA

As a result of the decline in margins, EBITDA for the third
quarter was R$81.1 million, representing a 39.6 percent decline
from R$134.2 million for the second quarter of 2001. EBITDA for
the quarter was unchanged year-over-year. For the nine-month
period, EBITDA was R$327.5 million, representing a decline of
24.0 percent from R$430.9 million for the same period of the
previous year. It should be noted that the first and second
quarters of last year were extremely favorable for the
petrochemicals industry in Brazil.

Investments

Investments for the third quarter were R$113.3 million,
representing a 347.1 percent increase from the same quarter of
2000. Investments for the nine-month period rose by 250.5 percent
from the same period in 2000. The table below shows a breakdown
of investments made by COPENE for the third quarter of this year
and last year as well as those for the period January to
September 2001 and 2000, in thousands of Reais (R$):

              3Q01    3Q00    Var. %  Jan/Set  Jan/Set Var.%
                                       -01       -00
Capacity
expansion   53,169  10,239   419.3% 107,928  20,756  420.0%
Logistics    15,795   1,264  1149.6%  53,263   5,527  863.7%
Permanence   17,037   7,448   128.7%  41,890  27,549   52.1%
Maintenance
shutdowns   25,948   6,292   312.4%  39,237  13,322  194.5%
Catalyzers    1,214      14  8571.4%   3,828   1,287  197.4%
Others          164      92    78.3%     719   1,983  -63.7%
TOTAL       113,327  25,349   347.1% 246,865  70,424  250.5%

As already announced, the postponement to the first quarter of
2002 of the works to increase COPENE's ethylene production
capacity by 80 thousand tons did not affect forecasted
expenditures related to the Capacity Expansion Program for this
year. This item, along with the general shutdown for maintenance
occurred in July and August of this year, in addition to
investments carried out at the facilities at the Aratu port,
explain the significant year-over-year increase in investments
for the year.

The expansion work at the Aratu maritime terminal, which
encompassed the construction of new storage facilities and
pipelines, included in the item "Logistics", started its
operation in October 2001.

Expenditures for the general maintenance shutdown, which takes
place every five years, explain the large year-over-year
variation in the item "Maintenance Shutdown," particularly for
the third quarter, when the shutdown took place. Total capital
expenditures scheduled for the year 2001, in millions of Reais,
are as follows:

Capacity expansion                       151.7
Logistics                                 64.5
Permanence                                50.1
Maintenance shutdown                      49.9
Catalysers                                 2.6
Others                                     2.8
Total                                    321.6

COPENE expects to fund its plan of capital expenditures for this
year predominantly from the BNDES and the Company's own
operations.

Debt

COPENE's gross debt on September 30, 2001, was of R$3.4 billion.
The table below offers a breakdown, in million of Reais, of the
Company's debt position, including the type of currency and
repayment schedule. Of COPENE's gross debt, 45.5 percent was
indexed to the U.S. Dollar (92.3 percent on June 30, 2001) and
was composed of "Eurobonds" (42.6 percent), export prepayments
(49.3 percent) and others (8.1 percent).

With respect to the balance at the end of third quarter, it
should be noted that export prepayments in the amount of R$771.7
million have their own natural "hedge" because they are tied to
exports which are made in U.S Dollars. When this amount is added
to the other "hedges", they total R$1,082.4 million, resulting in
a cash exposure of R$483.3 million.

COPENE's gross debt increased by 144.2 percent during the third
quarter, a result of the above-mentioned incorporation of certain
companies in September of this year. In particular, Nova Camacari
had a debt of R$1.4 billion as a result of loans obtained for the
acquisition of the Economico Empreendimentos assets at the July
25, 2001, auction, and Proppet, which was acquired at the same
time, had debt of R$184.4 million. As a result of the above-
mentioned loan taken by Nova Camacari, approximately 66.7 percent
of this debt is currently short-term, which will have its profile
altered to long-term, as soon as resources resulting from the
offerings of debentures and the secured export prepayment
facilities are obtained, both of which are currently underway.

COPENE's net debt on September 30, 2001, was R$2.7 billion,
representing an increase of 247.5 percent from net debt of
R$776.8 million on June 30, 2001, and of 618.5 percent from net
debt of R$371.4 million on September 30, 2000. This increase was
partly due to the devaluation of the Real in the period since
45.5 percent of COPENE's gross debt is indexed by the U.S.
Dollar, and thus is very sensitive to these variations, as well
as the above-mentioned debt existing in the companies
incorporated during the quarter. The same comparison in U.S.
Dollars shows that net debt on September 30, 2001, was US$998.9
million, up by 395.9 percent from net debt of US$201.4 million on
September 30, 2000.

Fuels

Another consequence of the maintenance shutdown occurred in the
July / August period of 2001 was the decline in sales of
automotive gasoline for the quarter, which reached R$43.2
million, representing a 28 percent quarter-over-quarter decline.
For the nine-month period, sales of automotive gasoline
represented 5.8 percent of COPENE's total net sales.

The above-mentioned shutdown also impacted COPENE's production of
automotive gasoline for the quarter, which declined quarter-over-
quarter to 80.7 million liters. In the third quarter of 2000,
COPENE produced only 12.0 million liters of automotive gasoline.

ANP - the Brazilian National Petroleum Agency - through its
Authorization No. 172 of October 2, 2001, authorized COPENE to
produce, store, transport and sell liquefied petroleum gas - LPG.
The initial production should be of 3.0 thousand tons per month,
and could reach 8.0 thousand tons per month in the medium term.
Sales of LPG started on November 1, 2001. COPENE is currently
awaiting similar authorization for diesel fuel.

Power Rationing

COPENE is self-sufficient in terms of power, which is produced in
a co-generation process. The total consumption of electric power
for the quarter by the industries in the Camacari Petrochemical
Complex, including COPENE, was approximately 215 MW/h. This power
was previously supplied by COPENE and CHESF (Sao Francisco
Hydroelectric Power Company) on a 50/50 basis. Due the power
rationing, CHESF reduced its supply from 50 percent to 40
percent, forcing COPENE to increase its participation to 60
percent. For the third quarter, COPENE sold a surplus of 47.3
MW/h to companies situated out of complex, mainly third
generation petrochemical producers.

Incorporations

On September 28, 2001, the Company's Extraordinary General
Meeting approved the incorporation into COPENE of Nova Camacari,
Intercapital and Proppet, based on the Net Asset values contained
in the appraisal reports issued by specialized appraisers,
resulting in the addition of R$1.6 billion to the Assets of
COPENE. This increase was distributed as follows: R$142.3 million
to current assets and long-term receivables and R$1.7 billion to
permanent assets, which includes R$1.3 billion of goodwill from
the acquisition of said companies, having as counterpart an
increase in the current liabilities and long-term liabilities of
COPENE. Due to tax considerations, ESAE was not incorporated at
this time.

COPENE's New Management

The Extraordinary Shareholders' Meeting held on August 15, 2001,
appointed the following individuals as Chairman of the Board of
Directors and Members of COPENE`s Executive Board

Chairman of the Board of Directors.

Emilio Alves Odebrecht, 56, was elected Chairman of the Board of
Directors. He is currently the president of Odebrecht S.A.

Officers:

Francisco Teixeira Sa, 53, was appointed as the new chief
executive officer. Mr. Sa was formerly president of Pronor
Petroquimica S.A. and Nitrocarbono S.A., Chairman of the Board of
Engepack S.A. and Proppet S.A.

Marco Antonio Ferreira Ebert, 56, was appointed chief operating
officer. Mr. Ebert has been with COPENE since 1976, most recently
as Basic Petrochemicals' Chief of Production. Throughout his
career at COPENE Mr. Ebert worked as Chief of Olefins' Division,
Chief of Engineer's Division, Technological Development Manager
and Technological Manager. He has been a Director since April
1990.

Mauricio Roberto de Carvalho Ferro, 35, was appointed chief legal
counsel.

Mr. Ferro is an attorney at law and holds an MA in Commercial Law
and Capital Markets. Prior to joining COPENE, Mr. Ferro was
responsible for the legal area of the Odebrecht Group for the
last six years, with the title of Legal Assistant of the vice-
presidency for Odebrecht S.A.

Ruy Lemos Sampaio, 51, was appointed chief financial officer.
Prior to joining COPENE, Mr. Sampaio was Vice-President of
Investments of Odebrecht S.A. from March 2000 until July 2001,
Vice-President of Finance for Odebrecht Quimica S.A. from 1998
until 2000.

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

CONTACT:  COPENE Petroquimica do Nordeste S.A.        
          Carlos Augusto de Oliveira Freitas
          Tel: +55-71-632-5847
          Fax: +55-71-632-5047
          E-mail: caof@copene.com.br
          or
          Breakstone & Ruth International
          Luca Biondolillo / Susan Borinelli
          Tel: 646-536-7018
          Fax: 646-536-7100
          E-mail: Lbiondolillo@breakstoneruth.com
          Sborinelli@breakstoneruth.com


ELETRONORTE: Registers R$875M Loss
----------------------------------
Eletronorte, a Brazilian energy generator and distributor, which
is responsible for the energy generation in Amazonia, registered
a loss of R$875.3 million, Jornal do Commercio reported.

The figure is almost equivalent to the amount invested in the
construction of hydroelectric power facility Lageado,  
inaugurated a month ago.

About R$500 million of the loss is attributed to the payment of
external debt and subsidies granted to Albras and Alumar.
Eletronorte spend R$275 million to supply both companies between
January and September 2001. The rationing program was responsible
for the remaining R$100 million.


EMBRAER: Brazil Will Not Get Even With Canada Over Subsidy Row
--------------------------------------------------------------
The Brazilian government said it would not strike back at Canada
for its illegal subsidy to Bombardier, which has resulted in huge
losses for Brazilian airplane maker Embraer, AFX News said in a
report.

Brazil's chief trade negotiator Jose Alfredo Graca Lima said that
retaliation by levying higher import duties on Canadian products
is out of the question, even if the World Trade Organization
sanctions it.

He said the government would instead work on a pact with Canada
to allow its market to be open to more Brazilian exports.

Canada was recently forced by the WTO to cut its plan to extend
$1.1 billion low-interest financing to Air Wisconsin, allowing
the airline to purchase 75 jets from Bombardier.

According to a WTO ruling recently, the financing scheme was in
fact a form of an illegal subsidy extended to the Canadian
aircraft maker.

Embraer claims it has lost $4 billion in sales due to this
illegal arrangement between Bombardier and the Canadian
government.


GLOBO CABO: Shares Up On Rate Cut Speculation, Financing Costs
--------------------------------------------------------------
Shares of Brazil's biggest cable television provider Globo Cabo
rose 4 percent to 79 centavos on optimism the Brazilian
government may be able to reduce interest rates and lower
financing costs, Bloomberg reported Friday.

According to Graham Makohoniuk, who helps manage $800 million in
Latin American equities for Globalvest Management Co. in St.
Thomas, U.S. Virgin Islands, utilities would benefit from a drop
in interest rates as the currency.

"Brazil was driving with one foot on the gas pedal and one foot
on the brake, and now the government has the opportunity to let
up on the interest rate brake a little bit," which may help
growth and benefit stocks, said Makohoniuk.

Globo Cabo has a net debt to equity ratio of 156 percent and it
needs to finance building projects, Makohoniuk added.


LIGHT: Disconnects 24,000 Clients In October For Exceeding Quota
----------------------------------------------------------------
Some 24,000 customers of Brazilian power company Light lost their
rights to use electricity in October after they exceeded
consumption quota two months in a row, according to an O Globo
report.

This is a 266-percent increase from the September figure, which
had 9,000 customers losing their privileges as a result of
violating the State's power rationing plan.

According to the report, the increase can be attributed to a
recent preliminary ruling that allowed disconnections to be
effected in Rio de Janeiro. A municipal law had banned this
previously.

Meanwhile, the number of customers entitled to a bonus fell to
2.6 million last month, compared to 3 million in September. A
total of 204,000 customers paid a surcharge in October.

Light CEO Ernesto Haikewitsch explained the rise in temperatures
and customers being less cautious with their use of electricity
contributed to the dip in customers entitled to the bonus.

The rationing scheme will be called off December 15, when the
water levels at the Tucurui hydroelectric reserve is expected to
rise and stabilize the power supply in Brazil.


TELEMAR: Plans To Meet Requirements But May Face Worker Strike
--------------------------------------------------------------
Telemar's plans to meet its service provision requirements ahead
of schedule but may suffer a setback as employees of Connect,
Telemar's network subsidiary, have threatened to lodge a strike,
Valor Economico revealed in a report.

Union representatives and the company have been negotiating for
three months and have failed to reach an agreement, principally
over hours of work.

Telemar needs to meet the prescribed requirements in order to
begin operating outside of its current area when the market opens
next year.


TRANSBRASIL: Desperate For Money To Keep Flying
-----------------------------------------------
Widespread rumors indicate that Transbrasil is likely to stop
operating unless it gets a crucial capital injection.

According to a Valor Economico report, the chairman of the
airline, along with the directors, the management and
representatives of the pilots, met in the first week of November
to discuss the company's current financial condition.

Transbrasil's fleet is now down to only five aircraft, compared
to the fifteen with which it began the year. In July, the
aircraft leasing division of GE initiated an involuntary
bankruptcy proceeding against Transbrasil, which later was
suspended.

The company moved all its operations to one airport, Congonhas,
but has continued to suffer losses, with 70 percent of its costs
directly linked to the dollar.


VARIG: Pays 5 Times More To Renew Insurance
-------------------------------------------
As a consequence of the terrorist attacks in the US on the
international insurance market, the Varig-Rio Sul-Nordeste
airline group paid 512.5 percent more to renew its insurance
coverage, Valor Economico reported.

Varig, the first Brazilian airline to renew its insurance since
the attacks, paid a total of US$49 million for its new policy,
compared to last year's US$8 million premium.



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

CANADA 3000: Grounds Planes, Shuts Down Operations
--------------------------------------------------
Due to financial problems, the charter airline Canada 3000 has
grounded its planes and effectively shut down after being granted
bankruptcy protection from creditors, DR1 Daily News reported.

Whether the Canadian airline which runs charter flights to the
Caribbean including several Dominican Republic destinations is
going to shut down permanently remains unclear.

On November 8, the airline was granted bankruptcy protection and
said it would continue to fly.

However, in a brief statement issued the following day, the
company said it "regrets to advise that it will cease flying
operations effective Nov. 9, 2001. We are therefore unable to
transport passengers to their destinations, and recommend that
they seek an alternative means of travel."

A spokesperson for Signature Vacations, which sells package tours
to the Dominican Republic, informed that it has a contingency
plan to place travelers on other airlines.

One travel agent advises the public to wait until more details
are released before changing their travel plans.



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


GRUPO MEXICO/SOUTH PERU: S&P Lowers Rating; On Watch Negative
-------------------------------------------------------------
Standard & Poor's lowered its ratings on Grupo Mexico Export
Master Trust No. 1's secured export notes series B-1, C, and D
and Southern Peru Ltd.'s secured export notes to double- 'B'-
minus from double-'B'-plus. At the same time, these ratings were
placed on CreditWatch with negative implications. In addition,
ratings on a separate note program, the Grupo Minero Mexico, S.A.
de C.V. (GMM) guaranteed senior notes (series A and B), were
lowered to double-'B'-minus from double-'B'-plus and placed on
CreditWatch with negative implications. The triple-'A' rating on
the Grupo Mexico Export Master Trust No. 1's series E notes,
insured by MBIA Insurance Corp. (MBIA; triple-'A' financial
enhancement rating) was affirmed.

Grupo Mexico S.A. de C.V. (Grupo Mexico), the majority owner of
GMM, ASARCO Inc., and Southern Peru Copper Co. (SPCC), is the
world's third largest copper producer, as well as a producer of
other base metals such as zinc, silver, lead, and gold. The
reduction in the corporate ratings of all three principal
subsidiaries-directly linked to one another since the takeover of
ASARCO by Grupo Mexico in 1999-reflects weakening copper industry
fundamentals, the bleak prospects for medium-term industry
improvement, and the group's significant and increasing
refinancing risk. Despite the reductions, the ratings of the
three entities continue to derive support from the group's size,
ability to produce at low cost, and projected improvements in
operating costs.

The downgrade of the uninsured series of the Grupo Mexico Export
Master Trust No. 1, as well as the GMM senior notes, stems
directly from the reduction in GMM's corporate credit rating to
double-'B'-minus from double- 'B'-plus. As is the case with most
future flow transactions, Standard & Poor's views the corporate
credit rating of GMM and SPCC (the originators of the securitized
assets) as the best proxy for the likelihood that these entities
will continue operating and exporting the securitized products.
The rating on the structured finance transactions cannot,
therefore, be any higher than the corporate credit rating of
these issuing entities. The affirmed triple-'A' rating of the
series E notes of the Grupo Mexico Export Master Trust No. 1
secured export notes program is based on the full financial
guarantee provided by MBIA.

The rating downgrade of the uninsured series of the Grupo Mexico
Export Master Trust No. 1 notes to double-'B'-minus triggers an
early amortization event. Upon the occurrence and continuation of
an accelerated amortization event, all collections from export
sales committed to the payment of the secured export notes are
trapped in the collection account until the event has been either
waived by the note holders or the notes have been fully paid.

OUTSTANDING RATINGS LOWERED AND PLACED ON CREDITWATCH NEGATIVE
                                                     TO   FROM
     Grupo Mexico Export Master Trust No. 1
          Series B-1 US$100 million (Gtd. By GMM)    BB-   BB+
         Series C US$200 million (Gtd. By GMM)       BB-   BB+
         Series D US$800 million (Gtd. By GMM)       BB-   BB+

     Grupo Minero Mexico S.A. de C.V.
         Series A US$375 million 8.25%
           Guaranteed senior notes due 2008          BB-   BB+
         Series B US$125 million 9.25%
           Guaranteed senior notes due 2028          BB-   BB+

     Southern Peru Ltd.
         $150 million 7.5% secured export notes
          due 2007 (Gtd. Southern Peru Copper Co.)   BB-   BB+

                         OUTSTANDING RATINGS AFFIRMED
                                                          Rating
     Grupo Mexico Export Master Trust No. 1
         Series E US$220 million floating-rate pass-through
          (Bond ins: MBIA Insurance Corp.)                  AAA


CONTACT:  Kevin Kime, +1-212-438-6223, or Juan J. Flores,
          +525-279-2020, or Nancy Gigante Chu, +1-212-438-2429,
          all of Standard & Poor's Ratings Services


GRUPO MEXICO: Moody's Lowers Asarco's Ratings On $1 Billion Debt
----------------------------------------------------------------
Moody's Investors Service downgraded Grupo Mexico's Arizona-based
Asarco Inc.'s guaranteed senior secured revolving credit facility
to "Caa1" from "B1" and its senior unsecured debentures and
industrial revenue bond ratings to "Ca" from "B3" in a move that
will affect about $1 billion worth of debt.

Asarco has a $50-million fixed 7 percent bond maturing on Dec. 1.

Moody's said last Tuesday that it would review $1 billion of
Asarco Inc.'s debt on "concerns over the deterioration in the
underlying fundamentals of the company's business, which is
highly leveraged to the copper market."


GRUPO SIDEK: Amends Asset Sales Report For 8/1 to 10/31 2000
------------------------------------------------------------
Grupo Sidek, S.A. de C.V. (OTC-GPSAY and OTC-GPSBY) announced
Friday that due to an involuntary error regarding the "Assets
Sales Report" transmitted on November 6, 2000, there is a
difference in the information related to the "Reorganization
Value". The correct information is as follows:

                             ASSETS SALES REPORT
                   FROM AUGUST 1, 2000 TO OCTOBER 31, 2000
                          (Figures in US$ thousands)

Assets with Reorganization Value
higher than USD$ 5,000           Sales Value    Reorganization
                                                    Value
I. Hotels                             14,960      16,285
II. Real Estate                            0           0
III. Marinas and Golfs                     0           0
IV. Other                                  0           0

Subtotal                              14,960      16,285

Assets with Reorganization
Value less  than USD$ 5,000

Subtotal (transactions)                  587         N.A.

Total                                 15,547         N.A.

NA / Not available.

CONTACT:  Alejandro Giordano Trejo of Grupo Sidek, S.A. de C.V.,
          +523-678-5911



VITRO: To Sell Assets To Raise $50M Needed For Asahi Partnership
----------------------------------------------------------------
Leading Mexican glassmaker Grupo Vitro has to sell assets at its
Mexicali plant in order to raise the money to satisfy its part in
the 50:50 venture with Asahi Glass, Mexican financial daily El
Economista reported.

Accordingly, the joint investment needs a capitalization of $100
million. The report said that the company would be forced to sell
some assets in order to come up with its $50 million portion.  
The Mexicali plant, however, is currently not operating.  

The company said the new glass factory emergingfrom this
partnership with the Japanese glass company will be established
by mid-2003 and will have a capacity of 200,000 tons.



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

BWIA: Gets Financial Relief From Government
-------------------------------------------
Transport Minister Jearlean John confirmed that the Government
has granted national airline BWIA $8.28 million in financial
assistance to help it recover from losses sustained after the
September 11 terrorist attacks in the US, The Trinidad Express
reported.

According to John, the Government's decision was in keeping with
international trends following the attacks.

"After the terrorist attacks, which prohibited entry into the US
by airlines and the 30 per cent slump in travel afterward, the
Government agreed to assist BWIA to relieve the losses
attributable to September 11," John said.

Additionally, the Government has given BWIA a short-term,
interest-free loan of $7.44 million to cover higher passenger
insurance premiums.

The airline will impose a US$5 regional surcharge and a US$10
international surcharge, which will be used by the airline to
repay the loan.

The surcharge, which would also have been imposed on the
airbridge service, is being covered by the Government with $5.538
million in support, John said.

"If Government had not done this, the cost of a ticket (to
Tobago) would have gone up by about $30," she explained.


BWIA: Pension Plan Ex-Members To Finally Get Their Shares
---------------------------------------------------------
The ex-members of the 1971 BWIA Staff Pension Plan are finally
going to get their shares after six years of legal haggling, The
Trinidad Express revealed in a report.

According to Leroy Mayers, permanent secretary in the Ministry of
Finance, the Government has agreed on an allocation formula by
which the shares are to be distributed to former members.
However, only members who were contributing to the plan as of
December 31, 1994 are eligible to receive shares. Deferred
pensioners and retirees as of December 31, 1994 are not eligible,
Mayers said.

The formula will see the allocation of 500 shares to each
beneficiary as a base amount and an additional amount based on
the beneficiary's contribution to the 1971 pension plan.

The plan actuary has completed a list of eligible members and
their individual share allotments. These lists were submitted to
the representative unions for verification by the unions and the
beneficiaries in September 2000.

The overall cost of effecting the transfer of shares will be met
from the residual surplus of the 1971 pension plan.

The Ministry said it wanted to transfer the shares by February 28
next year and advised former members of the pension plan who are
eligible to receive shares to contact their respective unions to
confirm their presence on the list.




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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *