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

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

            Wednesday, March 20, 2002, Vol. 3, Issue 56

                           Headlines


A R G E N T I N A

ACINDAR: Belgo Faces Dumping Allegations
ARTHUR ANDERSEN: Argentine Unit In Talks With KPMG
BGN: Irregularities Blamed for Losses At Dresdner Unit


B E R M U D A

GLOBAL CROSSING: Asian Unit Reworks Business Plan To Survive


B R A Z I L

CEMAR: PPL To Take Remaining US$100M Write Down On Investment
GLOBO CABO: Market Regulator Forbids BNDES To Up Stake
GLOBO CABO: Analyst Downgrades To "Hold" On Dilution Concerns
VARIG: Plans to Increase Capacity Without Inflating Costs
VESPER: Qualcomm Intends To Divest Stake


C H I L E

ARTHUR ANDERSEN: Chilean Affiliate To Be Included Legal Actions
ARTHUR ANDERSEN: Company Profile


J A M A I C A

KAISER ALUMINUM: Creditors Object To DIP Loan Terms


M E X I C O

BANCA QUADRUM: IPAB Responds To Clients' Payment Requests
CYDSA SA: Amends Note Tender Offer, Extends Proxy Time Period
DESC: Unit's Bankruptcy Won't Affect S&P Rating, Debt Outlook
GRUPO ICONSA: Mulls Bankruptcy Filing To Restructure Finances


     - - - - - - - - - -


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

ACINDAR: Belgo Faces Dumping Allegations
----------------------------------------
Brazil's long products steelmaker Belgo Mineira must now deal
with legal action brought against it by Abitam (Associacao
Brasileira das Industrias de Tubos e Artefatos de Metais).

ABITAM is complaining about that Belgo is employing dumping
practices in importing products from its Argentine integrated
steelmaker Acindar.

The Brazilian producer of steel tubes and pipes says that the
tubes imported by Belgo entered the domestic market with prices
lower than the market prices.

In February, Belgo imported 800 m tons of tubes for US$421 per
ton against the market price of US$550 per ton. Brazil exported
75,000 m tons of seamless steel tubes to the US in 2001, worth
US$52 million and imported 1 million metric tons.

Belgo Mineira and the Acevedo family control Acindar, which
recently posted a net loss of US$85.8 million for the six months
ending December 31, 2001.

Acindar is in the process of renegotiating US$550 million in
debt. The steelmaker has hired Credit Suisse First Boston
investment bank to aid it in the renegotiations.

CONTACTS:  Jose I. Giraudo, Investor Relations Manager.
           Acindar S.A.
           Tel. (54 11) 4719 8674

           Andrea Dala
           Investor Relations Officer
           Acindar S.A.
           (54 11) 4719 8672

           CREDIT SUISSE FIRST BOSTON
           Esmeralda 130
           Piso 22
           1035 Buenos Aires
           Argentina
           Tel: 011 54 11 4131 2700
           Fax: 011 54 11 4131 2730

           Credit Suisse First Boston
           AVDA. Bouchard #547
           Piso 11
           Buenos Aires 1106
           Argentina
           Tel: 011 54 11 4312 3505


ARTHUR ANDERSEN: Argentine Unit In Talks With KPMG
--------------------------------------------------
The Argentine branch of Arthur Andersen LLP issued a statement on
the Company's ongoing talks with rival KPMG LLP on merging its
operations outside the United States, in a last-ditch attempt to
remodel the accounting firm before it disintegrates, reports
Bloomberg.

According to the statement: "Andersen confirms talks with KPMG
for its integration outside of the United States."

"Pistrelli Diaz y Asociados confirms it has formally initiated
conversations to integrate its practices with KPMG. We will
evaluate this initiative and its contribution to building a very
solid international organization."

"This deal should enable us to provide assistance to our local
and international clients and allow for the best development of
our professionals."

Andersen operates in Argentina through its subsidiary Pistrelli,
Diaz y Asociados.

CONTACT:

Pistrelli, Diaz y Asociados (Buenos Aires Arthur Andersen Co.)
25 de Mayo 487
1st Floor 1002
Buenos Aires, Argentina
Phone: 54 11 4311 6644
       54 11 4311 6667
Fax:   54 11 4312 8647


BGN: Irregularities Blamed for Losses At Dresdner Unit
------------------------------------------------------
Dresdner Bank Lateinamerika AG, the South American arm of one of
Germany's biggest banks, Dresdner Bank, is suffering along with
its peers from the problems affecting Argentina, reports
Frankfurter Allgemeine Zeitung.

Operating results after risk provision is expected to show a near
break even result, compared with last year's profit of EUR25
million, with high value writedowns. The bank has announced plans
to reduce its workforce by around 15 percent by the end of next
year.

According to the predictions of Chairman Holger F. Sommer, it
would take one to two years for Dresdner Bank Lateinamerika to
recover fully, but stressed that he was "carefully optimistic"
about the future.

The management also attributed the losses to the "irregularities"
at Banco General de Negocios (BGN), an Argentinean bank in which
it holds 9.8 percent of the voting rights.

BGN is majority-owned by Dresdner Bank AG, Credit Suisse First
Boston and J.P. Morgan Chase & Co. and is now being investigated
by Argentine authorities for alleged money laundering.

CONTACTS:  BANCO GENERAL DE NEGOCIOS SA
           Esmeralda 120
           Capital Federal 1035
           Buenos Aires, Argentina
           Phone: 011-4394-3003
           Fax: 011-4320-6138
           Email: interbank@bancobgn.com
           URL: http://www.bancobgn.com

           DRESDNER BANK LATEINAMERIKA AG
           Neuer Jungfernstieg 16
           20354 Hamburg, Germany
           Tel.:   (+49 40) 3595-0
           Fax:   (+49 40) 3595 3314
           Telex:   214 236-0 dl d
           S.W.I.F.T. DRES DE HL
           E-Mail:   public-relations@dbla.com

           CREDIT SUISSE GROUP
           P.O. Box 1
           CH-8070 Z�rich
           Tel. +41 (1) 212 16 16
           Fax. +41 (1) 333 25 87
           Contact: Lukas Muehlemann, chairman & CEO

           J.P. MORGAN CHASE & CO.
           Investor Relations
           J.P. Morgan Chase & Co.
           270 Park Avenue
           New York, NY 10017-2070
           (1-212) 270-6000
           URL: www.jpmorganchase.com



=============
B E R M U D A
=============

GLOBAL CROSSING: Asian Unit Reworks Business Plan To Survive
------------------------------------------------------------
Executives of Asia Global Crossing are optimistic that the
bandwidth provider would be able to proceed with its operations
even without the support of its parent firm, Global Crossing,
Ltd.

According to the executives, they have come up with a new
business plan that is not dependent on the Japan-US fiber-optic
cable, which was once the company's main selling point.

The Asian unit, which is currently facing calls from a number of
its creditors that the company be broken up and sold, said it is
now scouting for a new equity investor.

Asia Global Crossing has signed non-disclosure agreements with a
number of potential buyers ahead of talks to take up stakes in
the company.

Its chief executive and vice-chairman Jack Scanlon said the
company needs to sell equity to a new partner or partners after
Global Crossing reneged on an agreement to provide Asia Global
Crossing with a US400-million loan.

"We have to save our company from the standpoint of bridging a
funding gap," he said.

As at the end of last year, Asia Global Crossing had US$554
million cash in hand, sufficient to survive this year.

Company officials believe that Global Crossing's board may be
forced to vote on a deal that benefits the subsidiary but which
may not necessarily be in the best interest of the parent.

"There are ways that (equity sale) could be done that would not
require shareholder vote," Scanlon said.

On January 28, 2002, certain companies in the Global Crossing
Group (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.

CONTACTS:  GLOBAL CROSSING
           Press Contacts:
           Cynthia Artin
           +1 973 410-8421
           Email: cynthia.artin@globalcrossing.com

           Becky Yeamans
           +1 973 410-8421
           Email: rebecca.yeamans@globalcrossing.com

           Analysts/Investors Contact
           Ken Simril
           +1 310 385-5200
           Email: investors@globalcrossing.com



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

CEMAR: PPL To Take Remaining US$100M Write Down On Investment
-------------------------------------------------------------
U.S.-based company PPL Corp. will write-off its investment in
Brazil's Maranhao state distributor Cemar (Companhia Energetica
do Maranhao), reports Gazeta Mercantil. The total investment
figure amounts to US$317 million, from which US$217 million has
already been writen off.

CEMAR, which was privatized for a minimum price of R$522.8
million, recently had its credit rating downgraded by credit
rating agency Standard & Poor's (S&P) to 'brSD' (Selective
Default) on the Brazilian national scale from 'brBBB.' S&P also
cut the Company's BRL150-million bond emission's rating to 'brCC'
from 'brBBB-.'

The rating actions reflected Cemar's failure to meet its
financial obligations on time and the fact that negotiations for
new terms and conditions are continuing with certain creditors.

The Company's liquidity was hampered by the combined affects of
power rationing, the delay in the wholesale power market (MAE)
being implemented and less-than-expected financial flexibility.

CEMAR, employs about 1,500 people and delivers electricity to
about 1.04 million customers in the northeastern state of
Maranhao from its headquarters in Sao Luis, Brazil. PPL Global
purchased 84.7 percent of CEMAR in June 2000.

CONTACT:  PPL Global LLC
          11350 Random Hills Road
          Suite 400
          Fairfax, VA 22030
          Phone: 703-293-2600
          Fax: 703-293-2659


GLOBO CABO: Market Regulator Forbids BNDES To Up Stake
------------------------------------------------------
Brazilian market regulator Anatel (Agencia Nacional de
Telecomunicacoes) disallowed the Brazilian development bank BNDES
(Banco Nacional de Desenvolvimento Economico e Social) from
increasing its control of Globo Cabo. Approval of the deal would
have slashed Globo Cabo's debt in half from BRL1.6 billion, to
BRL800 million.

BNDES had confirmed earlier that it was planning to increase its
stake in cable TV provider Globo Cabo by converting some of its
debt into equity. With the equity swap, BNDES would have
increased its ownership in the cable firm from 4.8 percent to
somewhere between 7-12 percent.

Political observers said the deal might have been struck to help
Jose Serra, the government-backed candidate for October
presidential election. Mr. Serra was until recently lagging
fourth in the opinion polls, well behind the front-runner Luiz
Inacio Lula da Silva, the Worker's Party candidate.

Globo Cabo's shareholders include majority owner Organizacoes
Globo, BNDES, No.1 local private bank Bradesco's investment arm
Bradespar, and Microsoft.

To see financial statements:
http://bankrupt.com/misc/globo_cabo.pdf

CONTACT:  GLOBO CABO
          Investor Relations:
          Luis Henrique Martinez, +5511-5186-2684,
          lmartinez@globocabo.com.br

          Marcio Minoru, +5511-5186-2811,
          minoru@globocabo.com.br

          BNDES
          Main Office
          Av. Republica do Chile,
          100 Rio de Janeiro - RJ
          Phone: (021) 2277-7447/6978
          Home Page: http://www.bndes.gov.br/english/welcome.htm

          Contacts: Enterprise Information Center
          Main Office
          Av. Republica do Chile,
          100 - 13§ andar - Sala 1301
          Tel.: (21)2277-8888
          Fax: (21) 2220-2615
          Email: contact@bndes.gov.br


GLOBO CABO: Analyst Downgrades To "Hold" On Dilution Concerns
-------------------------------------------------------------
Globo Cabo SA, Brazil's biggest cable television provider,
dropped 6.4 percent to BRL0.59, according to a Bloomberg.

Jacqueline Lison, analyst with Fator Doria Atherino brokerage, on
Friday downgraded Globo Cabo shares to "hold" from "attractive"
after shareholders approved the sale of shares to raise money to
pay off debt. The price of shares to be issued will be lower than
the price of the shares now in the market, she said.


VARIG: Plans to Increase Capacity Without Inflating Costs
---------------------------------------------------------
In a bid to increase passenger numbers without inflating costs,
Brazilian flagship airline Varig will start offering additional
flights and shifting some aircraft in its fleet, reports Reuters.

According to Roberto Macedo, Varig's commercial and marketing
director, the number of flights offered should increase 7-10
percent in the domestic market from June, and by 10-15 percent
for international routes, while the number of aircraft in Varig's
fleet would remain constant at 87.

"The idea is to increase the (available flights) with bigger
planes and more frequency," Macedo said.

Varig had cut 10 percent of its flights and fire 1,700 employees
last year due to aviation crisis, an overall economic slowdown
and a weak Brazilian real currency that hiked dollar-denominated
costs.

The Company is now preparing for a global stock offering to be
held by June. The Rubem Berta Foundation, 87 percent owner of
Varig, is prepared to give up its majority stake in an effort to
raise some US$400 million to cut the carrier's debt load.

As of June, Varig said it will start selling advertising space on
the bodies of its aircraft, which should bring some BRL10 million
(US$4.27 million) to its coffers in 2002.

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page: www.varig.com.br/english/
          Contacts:
          Dorival Ramos Schultz, EVP Finance and CFO
          E-mail: dorival.schultz@varig.com.br

          Investor Relations:
          Av. Almirante Silvio de Noronha,
          n§ 365-Bloco "B" - s/458 / Centro
          Rio de Janeiro, Brazil


VESPER: Qualcomm Intends To Divest Stake
----------------------------------------
As part of an effort to put more concentration in adopting the
CDMA technology by cell phone companies, Qualcomm will divest
itself of its ownership in Vesper as soon as possible, reports O
Globo.

According to the report, Qualcomm generally invests in phone
companies that commit themselves to using their technology and
later sell their shares, remaining as minority shareholders.

In November last year, Qualcomm directed the restructuring of
Vesper, and renegotiated the Company's debt, injecting BRL266
million and increasing its participation in Vesper from 16
percent to 70.5 percent.

CONTACT:  QUALCOMM
          Sao Paulo, Brazil
          Av. Engo. Luis Carlos Berrini, 550
          8 floor
          04571-000
          Sao Paulo, Brasil
          Phone: 55-11-5503-4500
          Fax: 55-11-5505-9362



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

ARTHUR ANDERSEN: Chilean Affiliate To Be Included Legal Actions
---------------------------------------------------------------
Steve Berman, the attorney representing Enron employees who have
sued Arthur Andersen for its role in the energy trader's
financial collapse, said that the auditing firm's international
partners would not escape culpability in the upcoming trial,
reports EFE.

"The partners share profits and costs and advertising ... they
cannot escape their responsibilities," Berman said in reference
to announcements from Andersen Spain and Andersen Chile
concerning partners' intention to disassociate themselves from
the U.S.-based firm, Arthur Andersen LLP.

Andersen Worldwide coordinates all the Andersen firms around the
world through an agreement that allows each firm to remain an
independent entity while sharing the same personnel, resources
and strategy.

The position taken by Andersen's management is that the global
network is completely separate from the U.S. firm and, therefore,
has no relation at all with the Enron trial and its possible
ramifications.

Enron's employees and shareholders have accused Andersen of
incorrectly auditing the firm's accounts and destroying documents
related to Enron.

The Justice Department has also indicted Andersen on an
obstruction of justice charge. The indictment is costing the firm
partners and clients prompting Andersen affiliates in Spain and
Chile to sever ties from the international network of
partnerships.

Furthermore, the U.S. government has suspended further business
with the Company, the fifth-largest accounting firm in the world
prior to the Enron scandal.


ARTHUR ANDERSEN: Company Profile
--------------------------------
NAME: Andersen (formerly Arthur Andersen)
      33 W. Monroe St.
      Chicago, IL 60603

FAX: 312-507-6748

PHONE: 312-580-0033

WEBSITE: http://www.andersen.com

EXECUTIVE MANAGEMENT TEAM:

     Joseph Berardino, Managing Partner and CEO
     Barbara J. Duganier, Managing Partner and CFO

CONTACTS:

     For analyst requests:
     E-mail: mary.n.hall@andersen.com
     Phone:  1 972 443 2795

TYPE OF BUSINESS: Andersen, ranking fifth out of the Big Five
accounting/consulting firms (Andersen, Ernst & Young, PwC, KPMG
and Deloitte Touche Tohmatsu), does its accounting business under
the Andersen name (formerly Arthur Andersen). The company
provides integrated solutions that draw on diverse and deep
competencies in consulting, assurance, tax, corporate finance,
and in some countries, legal services. Andersen employs 85,000
people in 84 countries.

SIC: Accounting, Bookkeeping, Collection & Credit Reporting
Management Consulting Services

TOP COMPETITORS: Ernst & Young, KPMG, PricewaterhouseCoopers

EMPLOYEES: 85,000

SALES: $9.34 billion (fiscal year ended August 31, 2001)

REVENUES: US$9.3 billion (fiscal year ended August 31, 2001)

COUNSEL: Rusty Hardin & Associates
         1201 Louisiana
         Suite 3300
         Houston, Texas 77002-5609
         Phone: 713-652-9000
         Fax:   713-652-9800
         E-mail: Lawfirm@rustyhardin.com



=============
J A M A I C A
=============

KAISER ALUMINUM: Creditors Object To DIP Loan Terms
---------------------------------------------------
A committee representing Kaiser Aluminum Corp.'s (KLU) unsecured
creditors and U.S. Bank National Association, which serves as a
trustee for $397 million in senior notes issued by Kaiser unit
Kaiser Aluminum & Chemical Corp., filed limited objections to
some of the terms of US$300-million debtor-in-possession loan,
says Dow Jones.

The issues in question are the amount of fees related to the loan
with Bank of America N.A., along with guarantees that would be
provided by two Kaiser affiliates that aren't in bankruptcy.

Both objections question guarantees that would be provided to the
DIP lenders by Kaiser affiliates Alpart Jamaica Inc. and Kaiser
Jamaica Corp., which aren't in Chapter 11.

When Kaiser filed for Chapter 11 on February 12, it asked the
court to prohibit its noteholders from enforcing their guarantees
against the Jamaican subsidiaries. Kaiser said moves against the
Jamaican units, including a possible involuntary bankruptcy
filing, could prevent the company from getting materials it
needed to meet customer needs.

The U.S. Bankruptcy Court in Wilmington, Del., is scheduled to
consider approving the loan at a final hearing Tuesday. The court
had given Kaiser interim approval on February 13 to use US$100
million of the loan pending the final hearing.

A final hearing on that request is scheduled for April 11,
according to court papers. A temporary restraining order remains
in effect until the hearing.

In addition to the DIP loan, the court on Tuesday will consider
Kaiser's request to retain Lazard Freres & Co. LLC as financial
advisers and investment bankers. Objections to the request, which
question the proposed fees and indemnification provisions, were
filed by the committee and the U.S. Trustee overseeing the
administration of the Chapter 11 case.

Kaiser's Chapter 11 filing listed assets of US$3.3 billion and
debts of US$3.1 billion.

To see Kaiser's financial statements:
http://bankrupt.com/misc/KaiserAluminum.txt

CONTACT:  Kaiser Aluminum Corporation, Houston
          Scott Lamb, 713/267-3826
          or
          Richard Tauberman, 713/267-3630
          or
          Jamie Schwartz, 713/267-3630

          LAZARD FRERES & CO. LLC
          121 Boulevard Haussmann
          75382 Paris Cedex 08,
          France
          Phone: +33-1-4413-01-11
          Fax: +33-1-4413-01-00
          Home Page: http://www.lazard.com
          Contacts:
          Michel David-Weill, Chairman
          Bruce Wasserstein, Chief Executive Officer

                   or

          LAZARD FRERES & CO. LLC
          30 Rockefeller Plaza
          New York, NY 10020
          Phone: (212) 632-6000
          Home Page: http://www.lazard.com



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

BANCA QUADRUM: IPAB Responds To Clients' Payment Requests
---------------------------------------------------------
The Mexican Institute for Bank Savings Protection (IPAB) was able
to respond to 238 requests from Banca Quadrum clients for
payments on guaranteed obligations, including the return of money
saved in the now-defunct bank, reports Mexico Analytica.

The requests were resolved in accordance with the conditions of
the Bank Savings Protection Law.  The payment process, which
began March 4, will last 60 days.

IPAB was tasked to liquidate Banca Quadrum after the bank's
shareholders failed to find a new partner, nor inject the much-
needed MXN850 million (US$93.5 million) into the ailing bank.
IPAB has designated the consultancy KPMG as representative to
liquidate Banca Quadrum.

To see Banca Quadrum's financial statements:
http://bankrupt.com/misc/Bancaquadrum.doc

CONTACTS:  BANCA QUADRUM
           Ernesto Rodriguez, Investor Relations
           Tel. +011-52-55-5284-5693
           Email: erodrigu@quadrum.com.mx

           KPMG - Ciudad de Mexico
           Bosque de Duraznos Nom. 55
           Bosques de las Lomas
           11700 Mexico, D.F.
           Tel.: +(55) 5246 83 00
           Fax.: +(55) 5596 80 60
           Contacts:
           Guillermo Garcia-Naranjo, General Director
           Phone: +(55) 52 46 8320
           Email: garcia.guillermo@kpmg.com.mx


CYDSA SA: Amends Note Tender Offer, Extends Proxy Time Period
-------------------------------------------------------------
Cydsa, S.A. de C.V. announced that it has amended its tender
offer for its 9.375% Notes due 2002. Pursuant to the amended
tender offer, Cydsa is now offering to purchase for cash from
eligible holders of its notes up to U.S.$40,000,000 in aggregate
principal amount of its notes for a cash purchase price of
U.S.$520 per U.S.$1,000 amount of notes, plus accrued and unpaid
interest thereon up to, but not including, the date of purchase.

Cydsa has extended the "Offer Expiration Date" to 12:00 Midnight,
New York City time, on Friday, March 29, 2002, unless further
extended. The Offer Expiration Date is the time by which eligible
holders of record must deliver, and the depositary must receive,
tenders of notes in order to be eligible to participate in the
tender offer. Unless withdrawn, notes validly tendered prior to
the date hereof in accordance with the terms of the tender offer
will remain subject to the tender offer. Noteholders who already
have tendered, and not withdrawn, notes do not need to take any
further action to participate in the tender offer. Prior to the
date hereof, approximately U.S.$12,158,000 in aggregate principal
amount of notes were tendered to the depositary.

The tender offer is conditioned upon, among other things, (1) the
passing of the extraordinary resolution by at least 75% in
aggregate principal amount of the notes voted at an adjourned
meeting at which a quorum of eligible holders of record holding
more than 50% in aggregate principal amount of the outstanding
notes, other than notes held by Cydsa or Cydsa's nominees, is
represented in person or by proxy; and (2) notes representing at
least U.S.$40,000,000 in aggregate principal amount being validly
tendered, and not withdrawn, pursuant to the tender offer, or
otherwise purchased by Cydsa, on or prior to the Offer Expiration
Date. Cydsa may in its discretion waive any or all of such
conditions.

In connection with the proxy solicitation, the adjourned meeting
of noteholders for the purpose of considering an extraordinary
resolution which would extend the maturity of the notes and amend
certain covenants in the trust deed relating to the notes will be
held on Friday, April 5, 2002, at 3:00 p.m., London time, at the
offices of Linklaters, located at One Silk Street, London, United
Kingdom EC2Y 8HQ. Cydsa has extended to 10:00 a.m., New York City
time, on Tuesday, April 2, 2002, the "Proxy Submission Deadline,"
the time and date by which holders of record must deliver duly
executed proxies in order to vote by proxy at the adjourned
meeting of noteholders.

Cydsa has also extended to 10:00 a.m., New York City time, on
Tuesday, April 2, 2002, the "Proxy Payment Deadline," the time
and date by which eligible holders of record must deliver to the
proxy and information agent duly executed, unrevoked proxies in
favor of the extraordinary resolution in order to be eligible to
receive the proxy fee.

Unless revoked, duly executed proxies delivered to the proxy and
information agent prior to the date hereof in accordance with the
terms of the proxy solicitation will remain in effect for the
adjourned meeting.

Cydsa's proxy solicitation and offer to purchase for cash is made
upon the terms and conditions set forth in the Proxy Solicitation
Statement and Offer to Purchase, dated January 25, 2002 (the
"Statement"). Prior to the date hereof, Cydsa distributed to all
holders of the notes a letter of eligibility requesting the
holder to return a certification as to whether it is (1) a
Qualified Institutional Buyer (as defined in Rule 144A under the
United States Securities Act of 1933, as amended (the "Securities
Act")), (2) not in the United States (as contemplated in Rule
903(a)(1) of Regulation S under the Securities Act) or (3) a
dealer or other professional fiduciary organized, incorporated,
or (if an individual) resident in the United States holding a
discretionary account or similar account (other than an estate or
trust) for the benefit or account of a non-U.S. person (as
contemplated by Rule 903(a)(1) of Regulation S under the
Securities Act). Only holders who have completed and returned the
certification of eligibility ("eligible holders") are authorized
to receive or review the Statement or to participate in the proxy
solicitation and the tender offer made thereby.

Cydsa is a corporation based in Monterrey, Mexico with a presence
in various industrial sectors, such as Chemicals and Plastics,
Fibers and Textile Products and Flexible Packaging.

CONTACT:  CYDSA, S.A. DE C.V., (Mexico)
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


DESC: Unit's Bankruptcy Won't Affect S&P Rating, Debt Outlook
-------------------------------------------------------------
The bankruptcy process of Fenoquimia, which began a week ago,
will not have an impact on the risk rating and the debt outlook
of Mexican industrial group DESC SA, said Standard & Poor's in
its report. According to S&P, Fenoquimia's sales and operating
flow represented less than 2 percent and 0.5 percent of Desc's
results during 2001.

Fenoquimia, which makes phenol used to produce acrylic, filed for
creditor protection in a Mexican court blaming a downturn in the
global petrochemical industry for its current financial distress.

Fenoquimia is reportedly one of six small companies that Desc
plans to sell or shut down, said Marc McCarthy, an analyst with
Bear, Stearns & Co. in New York.

Desc, battling a challenging business climate because of the
economic slowdown in North America and the strength of the
Mexican peso, is in the midst of a corporate restructuring aimed
at improving productivity and administrative efficiency. The
Company ended 2001 with US$942 million in debt.

Desc's sales in 2001 dropped 15 percent to MXN20.7 billion from a
year earlier. Operating profits, a key measure of a Mexican
company's profitability, slumped 29.5 percent to MXN1.67 billion.

CONTACTS:  DESC, S. A. DE C. V.
           Paseo de los Tamarindos # 400-B
           Mexico, D.F. 05120
           Phone: (5255) 261-80-00
           Fax: (5255) 261-80-96
           desc@mail.desc.com.mx

           Arturo D'Acosta Ruz, Chief Financial Officer
           Tel: (5255) 261 8000

           Alejandro de la Barreda, Investor Relations
           Tel: (5255) 261 8000 ext 2806
           abarredag@mail.desc.com.mx

           Adriana Estrada Vergara, Investor Relations
           Tel: (5255) 261 8000 ext 2846
           aestradav@mail.desc.com.mx


GRUPO ICONSA: Mulls Bankruptcy Filing To Restructure Finances
-------------------------------------------------------------
Mexican engineering and construction concern Grupo Ingenieros y
Contratistas (Iconsa) announced it is considering filing for
bankruptcy to begin a financial restructuring program before
resorting to default, reports Mexico City daily el Economista.

According to the report, the Company, which specializes in
building highways, is studying different strategies to
restructure financially in order to maintain the productive base.

Early this month, Grupo Iconsa presented a suit to the
International Court of Arbitration seeking damages from Alstom
SA's Alstom Mexico SA for the "unjustified termination" of a sub-
contract to build a thermal-electric power plant in San Luis
Postosi. Iconsa did not specify how much it was seeking in
damages.

Alstom's unit, Alstom Power, is building two 230-megawatt
petroleum coke-fired plants at Tamuin, in the northern state of
San Luis Potosi, to supply cement giant Cemex SA and silver miner
Industrias Penoles SA. The plants will be operated by Sithe
Energies Inc. under long-term contracts.

The first of the two identical plants, originally scheduled to go
into operation late this year, will supply electricity for 12
Cemex facilities. The second will supply Penoles' plants in
northern Mexico.

The project takes advantage of changes made in 1992 to Mexico's
electricity laws, which allows private companies to build and run
power plants supplying industrial customers, either individually
or grouped in special partnerships.

Transmission and distribution, however, is restricted to the
state-owned utilities: the Federal Electricity Commission, or
CFE, and the Central Light and Power Company, known as LFC by its
Spanish initials.

Grupo Iconsa is a subsidiary of Mexican construction Bufete
Industrial, which declared pre-bankruptcy proceedings in late
January this year.

Bufete reportedly has more than US$500 million in debt, almost
half of which is owed to foreign companies.

CONTACTS:  Jose Fernandez, President
           Luis Escalante, Exec. VP - Business Development
           Ernesto Montero, Exec. VP - Operations
           Ramon Lignan, Sr. VP and Comptroller
           Arturo Anel, Sr. VP of Projects

           THEIR ADDRESS:
           Moras 850, Colonia del Valle
           03100 Mexico City, Mexico
           Phone: (525) 723-4728
           Fax: (525) 420-8903
           Email: imendoza@bufete.com




               ***********


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 Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

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