/raid1/www/Hosts/bankrupt/TCRLA_Public/020110.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Thursday, January 10, 2002, Vol. 3, Issue 7

                           Headlines


A R G E N T I N A

ARGENTINE BANKS: ABA Backs Government's Efforts To End Recession
ARGENTINE BANKS: Lehman Warns Of Potential Loss On Duhalde Plan
BACS: Fitch Downgrades Series 2001-1 Class AF and AV Ratings
BHN: Fitch Slashes Ratings on Series 2000-1 Class AF and AV
SALTA HYDROCARBON: Fitch Cuts Rating on Targeted Notes


B R A Z I L

EMBRAER: Analysts Like Celsius Aerotech Acquisition
EMBRATEL: To Join GRIC Alliance Network
STARMEDIA NETWORK: Yahoo! Brasil Acquires Cade?
VARIG: Report of $1B Aid From GE, Boeing Unfounded


C H I L E

BAUEN HOTEL: Finally Caves To Competition
DISPUTADA MINE: ExxonMobil To Disclose Winning Bidder This Week
EDELNOR: Ups Efforts To Slash Costs, Escape Bankruptcy
UNITEDGLOBALCOM: Moody's Cuts, Withdraws Subsidiary's Ratings


C O L O M B I A

CHIVOR: Fitch Says Default Unikely To Impact AES Gener's Ratings
ILUMINAMOS CARTAGENA: Shareholders Elect Liquidation


M E X I C O

ISPAT MEXICANA: S&P WatchNeg on Imexsa Export Trust Certificates


P E R U

PESQUERA CAROLINA: Creditors Expect New Plan By February


T R I N I D A D   &   T O B A G O

BWIA: To Introduce Direct International Flight


     - - - - - - - - - -


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

ARGENTINE BANKS: ABA Backs Government's Efforts To End Recession
----------------------------------------------------------------
The Argentine Banking Association (ABA), in an official
statement, informed that its heads will back the government's
drive to end the deep recession, relates Reuters.

ABA's leaders confirmed they had met with new Economy Minister
Jorge Remes Lenicov, who they said explained the government's
decision to devalue the peso by nearly 30 percent.

Banks, analysts say, are among the biggest losers in the
devaluation due to the government's decision to convert some
dollar debts into devalued pesos, but force the banks to
eventually return dollar deposits in their original currency.

ABA's ranks include local banks such as Banco Galicia (GAL) as
well as foreign entities like Citibank, owned by Citigroup Inc.


ARGENTINE BANKS: Lehman Warns Of Potential Loss On Duhalde Plan
---------------------------------------------------------------
US-based investment bank Lehman Brothers warned that banks in
Argentina are at the risk of losing $8 billion when President
Eduardo Duhalde proceeds with plans to convert loans of up to
US$100,000 into devaluated pesos, while safeguarding the dollar
value of deposits, reports Business News Americas.

According to government estimates, the cost of the plan to banks
will be at around $6 billion, while the banks themselves
anticipate a hit of between $10 billion and $20 billion.

Peter Shaw, a Fitch senior banking director for Latin America,
suggested that the views of authorities on one hand and the
industry on the other are probably "both extremes of possible
ranges." The final cost is likely to end up somewhere in between.

Banks are in for a "mortal blow" if they do not receive some kind
of government bailout under a plan that is likely to cost them $8
billion, Lehman's head of Latin American equity research Robert
Lacoursiere said, adding: "This is nothing the banks can afford
to take."

Lacoursiere pointed out the importance of the government
revealing soon what the bank bailout plan will consist of. "We're
looking for clarity," he said.


BACS: Fitch Downgrades Series 2001-1 Class AF and AV Ratings
------------------------------------------------------------
BACS I Mortgage Trust's Series 2001-1 Class AF and AV ratings
were downgraded by Fitch to 'CCC' from 'BB'. The ratings remain
on Rating Watch Negative.

Over the past weekend, the Argentine government announced details
of an economic relief package, which includes an end to the
convertibility regime as well as a conversion into pesos at the
rate of 1:1 for all dollar debt under US$100,000 and credit card
debt. Details on the currency devaluation have not been fully
disclosed yet, however, the authorities announced an official
exchange rate of 1.4 pesos: US$1 effective January 9.

The impact of the devaluation and expected change of mortgage
terms will have a negative impact on the performance of the rated
mortgage securitizations. The severity of the impact is yet to be
fully defined as regulations regarding the devaluation on
modification of loans have not been fully promulgated. However,
it is anticipated that the value of the mortgage collateral will
be initially reduced by approximately 30%. A weakening exchange
rate may further deteriorate performance on the mortgage
transactions to the point where existing credit enhancement
levels may not support loss levels.

Fitch plans to continue monitoring developments in Argentina and
adjust ratings as necessary. In particular, Fitch will review the
specifics of the relief measures as they are announced as well as
their impact on the cash flows and legal structure of the
transactions.

CONTACT:  Fitch, New York
          Mia Koo, 212/908-0651
          or
          Samuel Fox, 312/606-2052 (International Structured
          Finance)
          or
          Theresa Paiz-Fredel, 212/908-0534


BHN: Fitch Slashes Ratings on Series 2000-1 Class AF and AV
-----------------------------------------------------------
Fitch severely downgraded BHN IV Mortgage Trust's Series 2000-1
Class AF and AV ratings to 'CCC' from 'BB'. The ratings remain on
Rating Watch Negative.

Over the past weekend, the Argentine government announced details
of an economic relief package, which includes an end to the
convertibility regime as well as a conversion into pesos at the
rate of 1:1 for all dollar debt under US$100,000 and credit card
debt. Details on the currency devaluation have not been fully
disclosed yet, however, the authorities announced an official
exchange rate of 1.4 pesos: US$1 effective January 9.

The impact of the devaluation and expected change of mortgage
terms will have a negative impact on the performance of the rated
mortgage securitizations. The severity of the impact is yet to be
fully defined as regulations regarding the devaluation on
modification of loans have not been fully promulgated. However,
it is anticipated that the value of the mortgage collateral will
be initially reduced by approximately 30%. A weakening exchange
rate may further deteriorate performance on the mortgage
transactions to the point where existing credit enhancement
levels may not support loss levels. Furthermore, Banco
Hipotecario's ability, as master servicer, to advance on
delinquencies will be further constrained by the actions taken by
the government.

Fitch says it will continue to monitor developments in Argentina
and adjust ratings as necessary. In particular, Fitch will review
the specifics of the relief measures as they are announced as
well as their impact on the cash flows and legal structure of the
transactions.

CONTACTS:  Fitch, New York
           Mia Koo, 212/908-0651
           or
           Samuel Fox, 312/606-2052 (International Structured
           Finance)
           or
           Theresa Paiz-Fredel, 212/908-0534

           BHN CONTACTS:
           Andrea Zelkowicz
           Capital Markets
           Tel. (54-11) 4347-5179
           Fax. (54-11) 4347-5874
           Buenos Aires, Argentina
           azelkowicz@hipotecario.com.ar

           Claudio J. Vettier
           Financial Controller
           Tel. (54-11) 4347-5115
           Fax. (54-11) 4347-5113
           Buenos Aires, Argentina
           cvettier@hipotecario.com.ar

           Gabriel G. Saidon
           Chief Financial Officer
           Tel. (54-11) 4347-5759/5212
           Fax. (54-11) 4347-5874/5113
           Buenos Aires, Argentina
           gsaidon@hipotecario.com.ar


SALTA HYDROCARBON: Fitch Cuts Rating on Targeted Notes
------------------------------------------------------
Fitch lowered its rating on Salta Hydrocarbon Royalty Trust's
Targeted Amortization Notes to 'B' from 'BB-'. The rating remains
on Rating Watch Negative.

Over the past weekend, the Argentine government announced details
of an economic relief package, which includes an end to the
convertibility regime as well as a conversion into pesos at the
rate of 1:1 for all dollar debt under US$100,000 and credit card
debt. Details on the currency devaluation have not been fully
disclosed yet, however, the authorities announced an official
exchange rate of 1.4 pesos: US$1 effective January 9.

The impact of the devaluation and expected change of mortgage
terms will have a negative impact on the performance of the rated
mortgage securitizations. The severity of the impact is yet to be
fully defined as regulations regarding the devaluation on
modification of loans have not been fully promulgated. However,
it is anticipated that the value of the mortgage collateral will
be initially reduced by approximately 30%. A weakening exchange
rate may further deteriorate performance on the mortgage
transactions to the point where existing credit enhancement
levels may not support loss levels.

The rating on the Salta Hydrocarbon Royalty Trust notes has been
downgraded to reflect the ever-increasing level of systemic risk
in Argentina. Recent actions taken by the latest government have
indicated a willingness to install protectionist and populist
measures. Due to the dire economic position of most Argentine
provinces, there is a growing possibility that future actions may
negatively impact the performance of this transaction.

Fitch will continue to monitor developments in Argentina and
adjust ratings as necessary. In particular, Fitch will review the
specifics of the relief measures as they are announced as well as
their impact on the cash flows and legal structure of the
transactions.

CONTACT:  Fitch, New York
          Mia Koo, 212/908-0651
          or
          Samuel Fox, 312/606-2052 (International Structured
          Finance)
          or
          Theresa Paiz-Fredel, 212/908-0534



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

EMBRAER: Analysts Like Celsius Aerotech Acquisition
---------------------------------------------------
In a release sent to the Sao Paulo Stock Exchange, Embraer stated
it may acquire Celsius Aerotech Inc. from the Nashville-based
Reliance Aerotech Inc. The deal could be concluded as early as
month end.

Celsius is the unit in charge of maintenance, repairs and
painting of regional aircrafts in the Nashville airport.

"We like the move, which seems a perfect strategic fit for
Embraer -- maintaining, repairing, and painting regional jets in
the U.S.," said Stephen H. Graham, analyst with UBS Warburg.

"This matches Embraer's promise: acquisitions that do not lead in
entirely new directions but contribute to the existing business
and build on existing strengths. Owning Celsius means a further
upgrade of service levels to Embraer clients in U.S."

CONTACTS:  EMBRAER
           Bob Sharp, Press office mgr.
           bob.sharp@embraer.com.br
           OR
           Wagner Gonzalez, Press officer
           wagner.gonzalez@embraer.com.br
           Phone +55 12 3945 1311
           Fax + 55 12 3945 2411


EMBRATEL: To Join GRIC Alliance Network
---------------------------------------
In its official press release, GRIC Communications, Inc.
(Nasdaq:GRIC), a leading provider of Internet-based mobile office
communications services, announced Tuesday that Embratel
(NYSE:EMT), Brazil's premier communications provider and leading
provider of data and Internet services, will join the GRIC
Alliance Network(TM) of more than 300 top-tier ISPs and
telecommunications companies around the world. The Embratel
Internet backbone is the largest in capacity and territorial
coverage anywhere in Latin America.

With 26 routing centers the Embratel Backbone currently consists
of over 35 Gbps at the national level and 2.6 Gbps of
international connections. Embratel will offer GRIC's global
remote Internet access service, GRICtraveler(TM), to its
corporate subscribers. GRIC's corporate customers, as well as
customers of GRIC Alliance Network members, will gain access to
Embratel's extensive network that covers more than 4,000 counties
in Brazil.

The agreement with Embratel, which operates the largest network
in all of Latin America, significantly expands GRIC's network
coverage in the region.

Under terms of the agreement, Embratel subscribers will benefit
from secure and reliable remote Internet access through GRIC's
unmatched global network coverage of more than 15,000 dialling
locations, more than 9,000 of which are located outside North
America. Embratel will also offer GRICtraveler to its corporate
customers as an Internet roaming solution, empowering global
business travellers to securely and easily connect to the
Internet or to their home network from virtually anywhere in the
world, at any time.

"This agreement with Brazil's largest communications services
provider clearly adds momentum to GRIC's growing presence in
Latin America," said Kristin Steinmetz, GRIC's Senior Vice
President of Global Sales and Marketing. "Embratel provides
award-winning services, and its decision to join the GRIC
Alliance Network reinforces the quality and breadth of GRIC's
unmatched Internet roaming coverage throughout the world."

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country. Service offerings
include: Internet, advanced voice, high-speed data communication
services, satellite data communications and corporate networks.
Embratel is uniquely positioned to be the all-distance
telecommunications network of South America.

The Company's network has countrywide coverage with 28,388 km of
fiber cables comprising 1,045,617 km of optic fibers.

The Internet business unit is backed by the technological
infrastructure of Embratel, which stands out from other utilities
in this sector, due largely to the scope of its services and
sustained by the size of its backbone, which forms the largest IP
network in Latin America. The Internet operation is also
supported by Embratel's data transmission track-record that
stretches back over more than 20 years, staffed by highly-skilled
professionals.

CONTACTS:  Lois Paul & Partners
           Carol Paterson, 415/262-1908
           carol--paterson@lpp.com

           EMBRATEL CONTACTS:
           Rua Presidente Vargas, 1012
           Centro - Rio de Janeiro - RJ
           CEP: 20179-900
           Tel: 2519 9662
           Fax: 2519 6388
           E-mail: invest@embratel.com.br

           Mariana Palmeira, 55 21 2519-3654
           mpalm@embratel.com.br

           Silvia Pereira
           Investor Relations Manager
           silvia.pereira@embratel.com.br

           Marcos Baptista
           marcos.baptista@embratel.com.br

           Graziela Fortunato
           graziela.fortunato@embratel.com.br

           Marcio Debellian
           debellian@embratel.com.br


STARMEDIA NETWORK: Yahoo! Brasil Acquires Cade?
-----------------------------------------------
In an official announcement, Yahoo! Brasil (http://br.yahoo.com),
a property of Yahoo! Inc. (Nasdaq:YHOO), a global Internet
communications, commerce and media company, disclosed Tuesday it
has acquired Cade? (http://cade.com.br),the leading Brazilian
search engine, from StarMedia Network (Nasdaq:STRME), an
integrated Media and Business Solutions company targeting Spanish
and Portuguese-speaking audiences.

"This acquisition demonstrates our commitment to constantly
improve on the user experience and our determination to be a
long-term player in the Brazilian market," said Roberto Alonso,
vice president and managing director for Yahoo! Latin America.
"As we continue to build the Internet's leading global consumer
and business services company, Yahoo! remains focused on
delivering relevant, comprehensive content, programs and services
to consumers, advertisers and customers around the world."

"The sale of Cade? reflects StarMedia's focus on providing value
to clients primarily through a combination of direct response
marketing programs, sponsorships, portal development services,
and wireless technology and applications," said Enrique Narciso,
CEO and President of StarMedia. "We look forward to the
opportunities ahead of us, and are confident in StarMedia's
position in the marketplace offering integrated Media and
Business Solutions across multiple platforms that leverage the
company's technology, content and audience," added Mr. Narciso.

Over the next several months, Yahoo! Brasil and Cade? will be
integrated into a new property, providing individuals and
businesses the resources and services of Yahoo!'s global network
combined with the localized programming and expertise of both
properties. The new site will continue to focus on the needs of
local customers and consumers to deliver new services that are
increasingly essential to these audiences.

Brazil has the largest Internet market in Latin America,
containing an estimated 45% of the region's 22 million users (IDC
Latin America, 2001). According to Nielsen NetRatings (November
2001), the combined unduplicated audience of the Yahoo! network
and Cade? will make it the third largest portal in Brazil, with a
52% Internet user reach, as well as the leading Internet network
across Latin America. With the acquisition, Yahoo! Brasil now has
the largest Internet search directory in Brazil, able to deliver
its vast audience to advertisers looking to penetrate the growing
online market.

StarMedia Network is an integrated Internet Media and Business
Solutions company targeting Spanish- and Portuguese-speaking
audiences, providing technology and services that enable
consumers and businesses to take full advantage of the Internet.
The company has operations in Argentina, Brazil, Chile, Colombia,
Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and throughout
the United States.

CONTACT:  Yahoo! Inc., Miami
          David Duckenfield, 305/529-4464, duck@yahoo-inc.com
           or
          GrupoUno PR, Coral Gables, Fla.
          Julie Lugones, 305/448-6111 ext. 120,
          julie@grupouno.com
          or
          Zemi Communications
          Celina Feldstein, 212/689-9560
          celinaf@zemi.com

          STARMEDIA NETWORK, NEW YORK
          Romi Schutzer
          Tel. 212/905-8269
          romi.schutzer@starmedia.net

          STARMEDIA NETWORK BRAZIL:
          Enrique Narciso, CEO, President, and Director
          Susan L. Segal, Acting chairman
          Jose Manuel Tost, Chief Operating Officer
          Michael Hartman , Vice President and General Counsel

          Addresses:
          Sao Paulo:
          Av. Na‡oes Unidas 12.551 Andar 15
          Sao Paulo, Brazil 04544-120
          ph: 011-5511-3043-7156
          fax: 011-5511- 3043-7507

          Rio de Janeiro:
          Praia do Flamengo 66 B - 4 Andar
          Rio de Janeiro, Brazil 22228-900
          ph: 001-5521-3084-4940
          fax: 011-5521-3084-4949


          CORPORATE COMMUNICATIONS REPRESENTATIVES:
          Latin American and Spanish Media:
          Mariana Cavin
          Tel: (212) 905-8267
          Fax: (212) 905-8500
          mariana.cavin@starmedia.net


VARIG: Report of $1B Aid From GE, Boeing Unfounded
--------------------------------------------------
There's no truth behind reports that Brazil's biggest airline,
Viacao Aerea Rio-Grandense SA (Varig), may get $1 billion from
Boeing Co. and General Electric Co.'s aircraft-leasing arm to
help it fulfill its debt obligations, Varig said in a Bloomberg
report.

Dow Jones Newswire, citing Brazilian newspaper Folha, previously
reported that the two U.S companies would be getting shares from
Varig in exchange for the aid.

"There are no talks or agreement of this kind with Boeing and
General Electric," said Manuel Guedes, a Varig spokesman. "There
is no process in place now that would lead to this kind of an
agreement."

In December, Varig agreed to sell six planes to Boeing's finance
unit and lease them back, cutting its debt by $370 million.
Boeing said at the time that it would also have an option to
acquire a stake in Varig in the future, but had no plans to
exercise it at present.

According to Guedes, Varig has no further agreements with Boeing
or GE. Varig has always said it's interested in a partnership,
but "for the moment, there is none," he said. The Folha article
was based on "market speculation," Guedes added.

Eric Jones, a spokesman for GE Capital Aviation Services, General
Electric's aircraft leasing unit, also contradicted the report.

"This is not accurate. We've had no such discussions," Jones
said.

VARIG CONTACTS:  Legal Department:
                 Rua 18 de Novembro nr. 800 Navegantes
                 Zip : 90240-040
                 City : Porto Alegre / RS - Brazil
                 Telephone numbers: (51) 358-7039/7040
                                   (51) 358-7010/7042

                 INDEPENDENT ACCOUNTANTS
                 Arthur Andersen S/C
                 Rua Alexandre Dumas 1981
                 Cep: 04.717-906 - Centro / Sao Paulo / S P-
                 Brazil
                 Tels.: (11) 5504-8200
                 Fax:  (11) 5504-8373

                 INVESTOR RELATIONS MANAGER/STOCKHOLDER SERVICES
                 Leir s  Stortti
                 E-mail: leir.stortti@varig.com.br
                 Av. Almte. Silvio de Noronha, n  365 -
                 Bloco "A" - s/416
                 Centro - Rio de Janeiro - RJ
                 Cep.:  20021-010
                 Tels.: (21) 3814-5401/5402/5403/5415
                 Fax:  (21) 3814-5543



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

BAUEN HOTEL: Finally Caves To Competition
-----------------------------------------
Bauen Hotel decided to close doors following a steady decline
over the last years, South American Business Information relates.

The hotel was bought by the Chilean group Solari from Iurcovich
family in 1997 for $17 million. In February 2000, the hotel filed
for bankruptcy after accumulating debts of $8 million.

According to market observers, the hotel failed to keep up with
the competition against large international hotel chains, which
started to emerge in the 1990's.


DISPUTADA MINE: ExxonMobil To Disclose Winning Bidder This Week
---------------------------------------------------------------
US oil giant ExxonMobil is expected to announce this week the
winning bidder for its Chilean mining subsidiary Disputada de Las
Condes, reports Jornal do Commercio.

Three companies are competing for the Chilean copper company. The
firms in the running are Codelco, the Chilean state copper
producer, BHP Billiton and CVRD (Compahia Vale do Rio Doce). But
analysts believe that neither CVRD nor BHP Billiton will win, as
their bids fell short of the estimated $1 billion value of
Disputada.

Speculation abounds that Codelco will buy Disputada and then
negotiate the participation of CVRD in the Company. Such an
arrangement would bring benefits to CVRD, whose copper operations
are its second most important business sector.


EDELNOR: Ups Efforts To Slash Costs, Escape Bankruptcy
------------------------------------------------------
Chilean energy generator Empresa Electrica del Norte Grande SA
(Edelnor) is now stepping up its efforts to reduce costs and
stave off bankruptcy.

According to a report by Bloomberg, Edelnor's chairman, Fernando
del Sol, is expected to meet with some of the bondholders on a
$340-million debt in New York this week to renegotiate interest
payments.

"It's a better option to work out a good deal that meets the cash
flow of Edelnor, instead of waiting for the thing to go bankrupt
or default," said del Sol, who is also the owner of the Chilean
investment holding company that bought an 82.3-percent stake in
Edelnor last month from Atlanta-based Mirant Corp.

Edelnor also has a bond payment coming due in March. However, Del
Sol declined to say whether the Company would make the bond
payment if it fails to negotiate a restructuring by then. The
company's revenue has fallen since his acquisition after Edelnor
lost a contract to energy distributor Emel SA.

According to Del Sol, who said he manages $30 million of hedge
funds and real estate investments, Edelnor may be able to make up
lost sales to Emel within two years by finding other customers or
by winning supply contracts that are coming up for bid. He
declined to specify which contracts.

He also said that Edelnor may cut costs by contracting out less
work to other companies and by cutting expenses such as office
space in Santiago.


UNITEDGLOBALCOM: Moody's Cuts, Withdraws Subsidiary's Ratings
-------------------------------------------------------------
Ratings agency Moody's Investors Service cut the debt (and
confirmed the preferred stock) ratings of UnitedGlobalCom
(formerly United International Holdings) and its subsidiaries as
outlined below, concluding its review, which began October 2001.

Moody's also withdrew the ratings for the company's shelf
registration, the senior unsecured discount notes due 2009 which
were recently redeemed, and the subsidiary bank loans to VTR
GlobalCom, which needs to be refinanced imminently.

The rating outlook remains negative.

UnitedGlobalCom (UGC)

- US$1.375 billion (face amount) of 10-3/4% senior secured
discount notes due 2008 - to Ca from Caa3

- US$355 million (face amount) of 10-7/8% senior unsecured
discount notes due 2009 - WR from Ca

- US$425 million of 7% Series C preferred stock - C

- US$287.5 million of 7% Series D preferred stock - C

- Prospective Senior Secured/Senior
Unsecured/Subordinated/Preferred Ratings under US$1.2 billion
shelf registration - WR/WR/WR/WR

- Senior Unsecured Issuer Rating - to C from Ca

- Senior Implied Rating - to Ca from Caa2


VTR GlobalCom (VTR; formerly VTR Hipercable)

- US$140 million senior secured term loan due 2002 - WR from B3

- US$80 million senior secured term loan due 2002 - WR from B3

Moody's said the downgrades reflect the recently announced tender
offer for UGC's remaining debt and its related expectation that
more significant credit losses are likely to be realized for
these classes of debt than previously anticipated.

With the sole exception of VTR, UGC's subsidiaries have
materially underperformed relative to initial (and revised)
expectations, and the loss of any confidence in these entities by
the financial markets has culminated in the inevitable
restructurings of their highly leveraged balance sheets that are
now occurring. The announcement on December 21, 2001 of a tender
offer for UGC's 10-3/4% senior discount notes at 25% of face
value (plus a 2% consent solicitation) corresponds much more
closely to the revised Ca rating than the former Caa3 rating,
which still had some added support embedded in it
(notwithstanding the potentially divergent interests) from
Liberty Media and implicit in the recovery expectations that
supported this former rating. The tender offer is currently
expected to conclude on January 22, 2002, and is conditioned on
the tender of a minimum 66 2/3% of outstanding bonds. Successful
conclusion of this tender offer would result in Moody's
withdrawal of the rating entirely.

The VTR rating is being withdrawn in anticipation of little to no
other remaining rated debt obligations at the consolidated
entity, and a correspondingly reduced ability to effectively
monitor this credit on a go-forward basis, Moody's said.
Additionally, the broader United Latin America group of assets
never quite evolved into the larger entity that had originally
been anticipated and as contemplated under the original UGC-
Liberty Media transaction of more than 18-months ago that was
recently amended to exclude the contribution of Liberty's Latin
American assets to UGC.

Through VTR, UGC is the largest provider of wireline cable
television, MMDS and DTH services, and a growing provider of
telephone services in Chile.

CONTACTS:  MOODY'S INVESTORS SERVICE (NEW YORK)
           Robert N. McCreary
           Senior Vice President
           Corporate Finance Group
           JOURNALISTS: 212-553-0376

           Russell Solomon
           Senior Vice President
           Corporate Finance Group
           JOURNALISTS: 212-553-0376



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

CHIVOR: Fitch Says Default Unikely To Impact AES Gener's Ratings
----------------------------------------------------------------
Fitch views the recent payment default by Chivor S.A., an asset
of AES Gener S.A., on a bullet maturity of an international
syndicated bank loan as credit neutral to AES Gener.

The bank loan is non-recourse to AES Gener and potential covenant
violations with AES Gener and its other assets appear manageable
at this time. Late last month, Chivor S.A. was unable to
refinance an international syndicated bank loan in the Colombian
local bank and capital markets on time due to market conditions
and timing.

Chivor is currently attempting to negotiate an extension of its
existing debt, primarily the bank loan of US$336 million, to
provide the company with ample time to re-launch and/or seek
alternative financing options. Despite the missed payment, Chivor
continues to generate positive cash flow and has a solid business
position; cash flow is currently more than sufficient to service
interest expense.

Fitch's current 'BBB' unsecured debt rating of AES Gener does not
rely on associated income from Chivor given the expectation that
the company will complete the planned divestiture of Chivor and
that the company will be primarily operating in the Chilean
electricity market. Chivor is expected to be sold, or
transferred, to an AES affiliate at fair market value after the
debt negotiation and as part of AES Gener's medium-term plan. AES
Gener is rated higher than its parent, AES Corporation, but to
minimize associated credit risk the company has developed a
structure to insulate AES Gener's credit quality from that of AES
Corporation.

AES Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity with
an installed capacity of 1,754 MW composed of 1,509 MW of thermal
and 245 MW of hydro generating capacity. The company operates
most of the thermal electric power plants in the country and
supplied approximately 23% of Chile's total generating capacity
during 2000. AES Gener serves both the Central Interconnection
System (SIC) and Northern Interconnection System (SING) through
various subsidiaries and related companies.

CONTACTS:  Fitch, Chicago
           Jason T. Todd, 312/368-3217
           or
           Fitch, New York
           Alejandro Bertuol, 212/908-0393
           or
           Fitch, Santiago
           Carlos Diez, +011 562-206-7171
           or
           Fitch, New York
           Media Relations:
           Zenia Kraus, 212/908-0543

           CHIVOR SA:
           Bogota, Distrito Capital
           Chivor S.A. E.S.P.
           Cl 98 22-64 Of 518
           Tel: (57) (1) 6236660 - Fax: (57) (1) 6236837
           Email: chivorbo@cable.net.co


ILUMINAMOS CARTAGENA: Shareholders Elect Liquidation
----------------------------------------------------
Iluminamos Cartagena shareholders decided in late December 2001
to liquidate the Colombian company, reports South American
Business Information. Iluminamos Cartagena was responsible for
the public lighting in the city of Cartagena.

The consortium ISM S.A. y Electroconstruccion Ltda., which won
the 20-year concession, sub-contracted the actual service out to
Iluminamos. However, various corruption practices have been
detected after three years of service, and a tariff increase has
since been vetoed by public authorities in Cartagena. Consortium
partners now intend to set up a new firm but said that services
will not be affected.



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

ISPAT MEXICANA: S&P WatchNeg on Imexsa Export Trust Certificates
----------------------------------------------------------------
Standard & Poor's placed its single-'B'-plus rating on the
structured export certificates of Imexsa Export Trust No 96-1
(Imexsa), a subsidiary of Ispat International N.V. (Ispat), on
CreditWatch with negative implications.

The CreditWatch placement reflects Standard & Poor's concerns on
the effects of an ongoing labor strike that began on Dec. 20,
2001, at Imexsa's facilities. While theoretically, Imexsa's
financial flexibility might be supported by other subsidiaries of
Ispat, under the current conditions it has indeed stopped the
production and export shipments of steel slabs, which could
materially affect the performance of the structured export
certificates.

The structured export certificate transaction is based on a long-
term supply contract between Imexsa and Mitsubishi Corp., in
which the latter is required to purchase enough shipments of
steel slabs from Imexsa at the then prevailing market price to
cover 1.3 times (x) the maximum debt service for each quarterly
debt service period. Therefore, Imexsa must be able to ship to
Mitsubishi however much product is necessary to meet the amount
equal to or greater than 1.3x maximum debt service. This ability
is currently impaired by the strike at Imexsa facilities.

Therefore, Standard & Poor's will be closely monitoring the
performance of the transaction going forward, paying particular
attention to the resuming of shipments to Mitsubishi and the
levels of collections deposited into the Imexsa Export Trust No
96-1. Any shortfall in debt service can be covered by a reserve
account equal to US$19,188,358.

The structured export certificates entered into early
amortization after being downgraded to double-'B'-minus on Nov.
23, 2000.

CONTACT:  Standard & Poor's
          Juan J Flores, Mexico City (52) 55-5279-2020
          or
          Rosario Buendia, New York (1) 212-438-2410
          or
          Olivier Beroud, London (44) 20-7826-3508



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

PESQUERA CAROLINA: Creditors Expect New Plan By February
--------------------------------------------------------
Peruvian fishing company Pesquera Carolina is aiming to refinance
about $51.2 million in liabilities and is expected to submit a
new restructuring plan to its creditors this February, reports
South American Business Information.

Pesquera Carolina is confident it will be able to improve its
performance this year since it has been catching some 1,000 tons
per day lately off the Chimbote coast.

The company's two plants, Huarmey and Coishco, produced 25,100
tons of fishmeal between January and November 2001, generating an
income of $14 million.



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

BWIA: To Introduce Direct International Flight
----------------------------------------------
BWIA West Indies Airways is being called on to introduce a direct
international flight to Tobago, The Trinidad Guardian reports.

Accordingly, talks between the carrier, the Tobago House of
Assembly (THA) and Tourism Industrial Development Co (Tidco)
regarding the plan are now underway.

Tidco, in a statement, said that it and the THA are to discuss
the transport issue with stakeholders in the tourism industry,
and are also to report to BWIA on their recommendations.

Last week, BWIA, THA and Tidco officials met to discuss an
increase in daily flights by the airline, which is the sole
carrier between Trinidad and Tobago.

"The purpose of the meeting was to explore the possibility of the
national airline, BWIA, commencing a weekly direct air service to
Tobago from North America," Tidco stated.

Last week's talks included Tidco vice-president Carla Noel, THA
tourism secretary Neil Wilson and BWIA chief executive officer
Conrad Aleong. Also present were BWIA's vice president of
marketing Beatrix Carrrington and Chris James of the Tobago Hotel
and Tourism Association.

BWIA has agreed to provide a flight to Tobago from a North
American port, which is still to be decided, Tidco stated. Tobago
is expected to make recommendations to BWIA on Friday.

BWIA's operations were severely hurt by the September 11
terrorist attacks in the United States, but its revenues received
assistance when the government of Trinidad & Tobago came to its
assistance with funding to help soften the financial impact.

CONTACTS:  Conrad Aleong, President/CEO, Trinidad
           Beatrix Carrington, VP-Marketing and Sales, Barbados

           Paul Schutz, CFO, Trinidad
           Nicole Richards, General Counsel and Corp. Sec.,
           Trinidad

           Address:
           BWIA International Airways Limited
           Piarco Airport
           P.O. Box 604, Admin. Building
           Port Of Spain
           Trinidad and Tobago
           mail@bwee.com
           Phone: + 868 627 2942




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 Fe Ong Va¤o, Editors.

Copyright 2002.  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
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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contact Christopher Beard at 240/629-3300.


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