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

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

            Tuesday, May 28, 2002, Vol. 3, Issue 104

                           Headlines

                           *********


A R G E N T I N A

REPSOL YPF: Shareholders Losing Confidence In Cortina


B A R B A D O S

APW LTD: Conyers Dill Approved as Bermuda Counsel


B R A Z I L

GLOBAL CROSSING: Creditors, Hutchison/STT Fail To Reach Deal
GLOBAL CROSSING: Global Fiber-Optic Network Up For Sale
TYCO INTERNATIONAL: Lehman Withdraws $5BN Offer For CIT Group


C H I L E

ENERSIS: Entel Questions PLC Plans, Monopoly Review


V E N E Z U E L A

AES CORP: Chairman Bakke To Meet Chavez Over Energy Prospects


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A R G E N T I N A
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REPSOL YPF: Shareholders Losing Confidence In Cortina
-----------------------------------------------------
Two largest shareholders of the Spanish-Argentine oil and energy
group Repsol-YPF SA are beginning to lose confidence in the
company's top executive Chairman Alfonso Cortina, according to El
Mundo, Bloomberg reports.

Cortina's move to appoint Ramon Blanco as chief executive officer
was stopped by shareholders Banco Bilbao Vizcaya Argentaria SA
(BBVA) and Caja de Ahorros y Pensiones de Barcelona SA, or La
Caixa.

Reports say that if Blanco is not appointed, commercial banks
BBVA and La Caixa may propose an outside executive for the
position.

The decision to appoint a CEO is part of the group's efforts to
strengthen its management team. Critics are calling for greater
efforts at the oil company's management level to get through a
very difficult year.

Other candidates for the post include former Banco Santander
Central Hispano SA deputy chairman and CEO Angel Corcostegui and
former Energy Ministry Secretary Nemesio Fernandez Cuesta. The
post could also go to one of Repsol YPF's existing top managers.


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B A R B A D O S
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APW LTD: Conyers Dill Approved as Bermuda Counsel
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gives its interim approval to Vero Electronics, Inc. and APW Ltd.
to bring in Conyers Dill & Pearman as special Bermudan Counsel to
APW Ltd. A hearing for any timely filed objections on the
retention is currently scheduled for June 3, 2002, at 2:30 p.m.

APW is a Bermuda corporation and maintains assets, operations and
employees in Bermuda. A bankruptcy filing in the United States
will necessarily implicate Bermudan law and may require the
commencement of winding up proceedings in Bermuda pursuant to the
Bermuda Companies Act of 1981.

APW says it needs counsel that is well-versed in the local laws
of Bermuda. APW retained Conyers Dill to advise and represent
them in Bermuda in relation to all aspects of Bermuda Corporate
Insolvency, Restructuring and Liquidation law.

The Debtors relate that since 1999, Conyers Dill and certain of
its members and associates have rendered legal services to APW.
This engagement of over two years afforded the firm intimate
familiarity with the complex legal issues in connection with
APW's business and operations, their restructuring, and their
strategic and transactional goals.

Conyers Dill's services primarily relate to counseling APW on
Bermuda law in relation to incorporation, corporate
administration, initial public offerings, credit agreement
opinions, employment regulations, joint venture agreements and
general corporate and legal advice.

In official documents filed with the Court, Conyers Dill
indicates it received an advance of approximately $50,000 for its
engagement. The principal attorneys and paralegals primarily
assigned to represent APW and their current standard hourly rates
are:

     a) Robin Mayor           $420 per hour
     b) David Cooke           $420 per hour
     c) Kevin Butler          $370 per hour

APW, a publicly-held, Bermuda company, operates as a holding
company whose principal assets are the shares of stock of its
worldwide operating subsidiaries. APW's operations consist solely
of providing financial, accounting and legal services to its
foreign and domestic direct and indirect subsidiaries. The
Company filed for chapter 11 protection on May 16, 2002 in the
U.S. Bankruptcy Court for the Southern District of New York.
Richard P. Krasnow, Esq. at Weil, Gotshal & Manges represents the
Debtors in their restructuring efforts. When the Company filed
for protection from its creditors, it listed $797,104,000 in
total assets and $899,751,000 in total debts.


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B R A Z I L
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GLOBAL CROSSING: Creditors, Hutchison/STT Fail To Reach Deal
------------------------------------------------------------
Global Crossing confirmed Saturday that its major creditor
constituencies were unable to reach agreement on definitive
documentation with Hutchison Whampoa Ltd. and Singapore
Technologies Telemedia Pte. Ltd. for an investment in Global
Crossing. This agreement would have resulted in the two companies
securing a break-up fee and certain other bidding protections.

John Legere, Global Crossing's chief executive officer stated:
"While we are disappointed that an agreement could not be reached
at this time, we look forward to working with Hutchison Whampoa
and Singapore Technologies Telemedia as the auction approaches."

Global Crossing says it is continuing discussions with other
interested potential investors as the process moves forward.

Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

On January 28, 2002, Global Crossing and certain of its
affiliates (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.

CONTACT:  Cynthia Artin of Global Crossing
          Phone: +1-973-410-8820, or
          E-mail: Cynthia.artin@globalcrossing.com
          Home Page: http://www.globalcrossing.com
                     http://www.asiaglobalcrossing.com



GLOBAL CROSSING: Global Fiber-Optic Network Up For Sale
-------------------------------------------------------
Failed negotiations of Global Crossing with Hutchison Whampoa
Ltd. (HWL) and Singapore Technologies Telemedia Pte. Ltd. mean
the company's global fiber-optic network will be put up for
auction by the federal bankruptcy court handling the case,
according to the Associated Press.

HWL and ST Telemedia said they terminated talks after failing to
agree on purchase terms for the bankrupt fiber-optic network
operator.

Hutchison and ST Telemedia originally bid $750 million in January
for a majority stake following the initial bankruptcy filing.

The two Asian firms and creditors of Global Crossing had asked
Judge Robert E. Gerber of the Bankruptcy Court of the Southern
District of New York to extend the deadline of the takeover talks
until Friday, May 24.  Even with the additional time,
negotiations still fell short of producing an amicable deal for
all the parties involved.

The Asian companies refused to raise the initial offer for a 79
percent stake. The original amount offered was considered too low
by Global Crossing's creditors.

Global Crossing Chief Executive John Legere, said there are more
than 60 companies who are interested in Global Crossing's assets.
If more than one bid is received, Global Crossing's lawyers will
hold a Bankruptcy Court-supervised auction on July 8.

Private equity firms Texas Pacific Group and Gores Technology
Group also have considered bidding, people familiar with the
companies have said. Platinum Equity LLC has said it is moving
forward as well, signing a letter of interest.

Other companies that have officially indicated interest include
Verizon Communications Inc., BT Group Plc and Deutsche Telekom
AG, according to reports.

The Asian firms are also expected to join in the auction
scheduled July 8. Bids are due by June 20.


TYCO INTERNATIONAL: Lehman Withdraws $5BN Offer For CIT Group
-------------------------------------------------------------
Lehman Brothers Holdings Inc. withdrew its $5-billion (U.S.)
offer for troubled Tyco International's finance arm, CIT Group,
reports Reuters.

Lehman made an all-cash offer last Tuesday, but withdrew after
news of the deal was aired on CNBC. The airing of the report
pressured Lehman to do the deal quickly, but, since it was not in
a position to do so, the firm decided to back out.

Tyco International has been trying to unload CIT to raise cash to
reduce its heavy debt load. Tyco acquired CIT for $9.5 billion
last June.

Lehman's offer initially pushed Tyco's stock up 6%, but news of
the backout in the Wall Street Journal deflated the share price.

Tyco is still confident it can complete a sale or initial public
offering of CIT by the end of June. Tyco shares closed down
US67›, off nearly 3%, at US$23.70 on the New York Stock Exchange
Friday.

Spokesmen from both Lehman and Tyco declined to comment.


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C H I L E
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ENERSIS: Entel Questions PLC Plans, Monopoly Review
---------------------------------------------------
Entel has requested the government's antimonopoly commission to
review the entry of Enersis' Power Line Communications (PLC)
technology into the telecoms market, Business News Americas
reports.

CAM and Chilectra, Enersis' subsidiaries, have conducted a pilot
project in Santiago homes using PLC equipment. PLC uses low-
tension electrical distribution networks for voice and data
transmission.

Chile's electricity & fuels regulator SEC authorized CAM and
Chilectra to use its electricity distribution networks to install
PLC on the grounds that there were no legal barriers preventing
the company from providing telecoms services. Telecoms regulator
Subtel also authorized Chilectra to conduct the pilot program

In an 11-page report to the commission, Entel requests that
Enersis be prohibited from offering end-user services on the
grounds that the company operates as a monopoly, pointing out
that its entry to the telecoms market would create a duopoly
between Enersis and telco Telefonica CTC Chile in the basic
telephony segment.

The Americas report cited an electricity sector analyst saying
that Entel was making sure the electric company's venture does
not harm its own interest. The analyst further said Entel feared
Enersis would favor Smartcom PCS in case Smartcom expands
business from mobile telephony to include Internet or other
services.

According to the analyst, Entel probably fears that Enersis could
offer favorable terms to its sister company and Entel competitor
Smartcom PCS, in the event that the later wanted to expand its
business model from mobile telephony to include Internet or other
services. Smartcom may be a potential competitor of Entel in the
wireless local loop technology.

Enersis aims to offer telecoms services over PLC in the capital
Santiago by mid-2003. The Company is expected to submit its PLC
business plan to parent company Endesa (NYSE: ELE) in September
this year, and has said on repeated occasions that it does not
plan to offer telecoms services to end-users.


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


AES CORP: Chairman Bakke To Meet Chavez Over Energy Prospects
-------------------------------------------------------------
U.S. power company AES Corp chairman, Dennis Bakke, is meeting
president Chavez to discuss prospects of the company investments
in Venezuela, El Nacional reports.

The agenda to be discussed may include AES's prospect of
acquiring some of the assets from Enron in Venezuela, the bottled
gas distributor Vengas, and the Compania Anonima de Luz y Fuerza.

The power company may also bring up the project of setting up a
fiber optical network alongside the pipes from Pdvsa Gas, and a
US$500mil project to set up a combined cycle power plant in El
Sitio, Carabobo state.

AES Corp. owns 87% of Venezuelan Electricidad de Caracas (EDC)
which is restructuring to slash costs by some US$25 million.


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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
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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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