/raid1/www/Hosts/bankrupt/TCRLA_Public/020625.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, June 25, 2002, Vol. 3, Issue 124

                           Headlines


A R G E N T I N A

BANCO GALICIA: Four Banks Look To Acquire Stake
HICKS MUSE: Latin American Investments Facing Woes
SCOTIABANK QUILMES: Suspended for Another Month
BANCO EUROPEO: German Parent Closes Bank On Regulatory Concerns
YCRT: Privatization Fails; Government Reclaims Assets


B E R M U D A

ANDERSEN: Deal With PwC Suffers Setback


B R A Z I L

AES CORP: Fitch Cuts Ratings On Mounting LatAm Challenges
BANCO ALFA: Fitch Downgrades, Affirms Ratings
BANCO BCN: Long-term Foreign Currency Ratings Cut
BANCO BRADESCO: Currency Downgrade Forces Fitch Rating Actions
BANCO BRASCAN: Long-term Foreign Currency Rating Reduced To `B+'

BANCO DO BRASIL: Currency Ratings Drop, Outlook Still Negative
BANCO ITAU: Fitch Cuts Long-term Foreign Currency Ratings
BANCO SAFRA: Currency Lowered, Fitch Includes In Downgrade
BANCO SUL AMERICA: Long-term Foreign Currency Rating Cut To `B+'
BBV BANCO: Fitch Slashes, Affirms Ratings

UNIBANCO: Fitch Cuts Long-term Foreign Currency Ratings
CEMIG: Buying 45% of Infovias Shares
HAYES LEMMERZ: Names South American Operations Managing Director


C H I L E

MADECO: Seeks Shareholder Approval On Proposed Capital Increase


E C U A D O R

ECUATORIANA DE AVIACION: Debt Woes Block Flights to the US


M E X I C O

COPAMEX: Lack of Demand Postpones $200M, 10-Year Bond Deal
HYLSAMEX: Posts MXN2.1 B In Profits During April-May Period
IEC ELECTRONICS: Shutters Mexican Facility; Sells Assets
ISPAT INTERNATIONAL: Imexsa Amends Bond Swap
VITRO: Signs Definitive Agreement With AFG Industries, Inc.


U R U G U A Y

BANCO DE MONTEVIDEO: Government Seizes Control On Cash Shortage
BANCO GALICIA: Clients Disapprove Of Deposit-Return Scheme


     - - - - - - - - - -


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

BANCO GALICIA: Four Banks Look To Acquire Stake
-----------------------------------------------
Citibank, Citigroup's banking unit, J.P. Morgan Chase & Co.,
U.K.-based Barclays PLC and Brazil's Banco Itau are considering
taking a stake in the embattled Banco de Galicia, reports
Argentine daily Buenos Aires Economico. However, according to Dow
Jones Newswires, Citigroup denied the report released by the
daily.

"It's totally untrue," said Lula Rodriguez, a Citigroup
spokeswoman in Miami.

Barclays, J.P. Morgan, and Banco Itau are yet to comment on the
report.

Banco de Galicia, lashed by the country's US$141-billion debt
default and poorly-engineered peso devaluation, has already
received about ARS800 million ($1=ARS3.63) from the central bank
and the nation's bank insolvency fund to bolster its reserves. In
February, it announced it was approaching about a dozen creditor
banks with a debt-for-equity swap proposal.

None of the banks have bitten, though. The stock price of
Galicia's parent, Grupo Financiero Galicia SA, has soared several
times in recent months on speculation that a foreign white knight
will surface, before plunging again when the talk proved untrue.

Galicia's American Depository Receipts ended Friday in New York
at $0.49 on 992,000 shares traded, down 17% on the session, after
rising 41% on Wednesday and another 74% Thursday on the latest
round of speculation. The ADR has shed 46% of its price in the
past month, and is down 97% over the past year.

Galicia had just under ARS11 billion in assets at the end of
November, before Argentina's financial crisis moved into
overdrive.

CONTACT:  GRUPO FINANCIERO GALICIA S.A.
          Teniente General Juan D. Per>n 456, Piso 3
          1038 Buenos Aires, Argentina
          Phone: (54 11) 4343 7528 / 9475
          Home Page: http://www.gfgsa.com
          Contacts:
          Eduardo J. Escasany,  Chairman and CEO
          Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires

          BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
          Tte. Gral Juan D. Peron 407
          1038 Buenos Aires, Argentina
          Phone: +54-11-6329-0000
          Fax: +54-11-6329-6100
          Home Page: http://www.bancogalicia.com.a



HICKS MUSE: Latin American Investments Facing Woes
--------------------------------------------------
After losing US$1 billion investment in telecommunications and
broadband companies, Hicks, Muse, Tate & Furst Inc. now finds
itself mired in its more than US$1.5 billion investment in Latin
America, including at least US$1 billion in troubled Argentina.

The leveraged-buyout firm has invested its US$960-million Latin
American fund and some money from its U.S. investment pool in
large cable networks and media companies.

Hicks Muse's buy-and-build strategy in the U.S. did not work well
in Latin American businesses it selected. These businesses ran
into debts have subsequently suffered setbacks brought on by
recession and currency devaluation in Argentina. Hicks Muse put
most of its money into a few companies, mainly in Argentina. It
is among the companies affected by devaluation for having revenue
in pesos but debt in dollars.

Hicks Muse has investments in Pan American Sports Network, a
cable company that filed for bankruptcy-court protection in March
for failure to meet debt payments. Pan American is based in
Florida but has operations in Buenos Aires and Los Angeles. Some
of its assets were also used for other investments, totaling at
least US$660 million, most of which is in the cable company.

Hicks Muse, one of the largest investors in Latin America, also
has at least US$600 million investment in Telefonica Holding de
Argentyna SA, owner of a struggling cable-television operator. At
least another US$152 million is invested in Claxson Interactive
Group Inc., a multimedia provider of content in Spanish and
Portuguese languages that is heavily indebted.

A spokesman for Hicks Muse deemed it too early to say something
on the future of the Company's investments, expressing hopes that
the Company's investments could still turn out well.

Some investors however, like General Motors Investment Management
Corp, are wary of the situation. Charles Froland, managing
director of the corporation said, "Those original bets were
entirely thoughtful bets in the moment that they were made. But
you had to rest them on assumption of a stable environment, which
obviously didn't materialize."

The Company's US$4.1 billion U.S. investment fund as well as more
than 10% of its newly raised USS$1.6 billion fund was used for
its Latin American investments.

Although Hicks Muse hasn't formally written down the value of any
investments in Latin America, Dow Jones says that, "chances of a
turnaround to recover the investments look slim."

CONTACT:  HICKS, MUSE, TATE & FURST INCORPORATED
          200 Crescent Ct., Ste. 1600
          Dallas, TX 75201
          Phone: 214-740-7300
          Fax: 214-720-7888
          Home Page: none
          Contacts:
          Thomas O. Hicks, Chairman and Chief Executive Officer
          Charles W. Tate, President
          John R. Muse, Chief Operating Officer
          Darron Ash, Chief Financial Officer

          CLAXSON
          404 Washington Ave. 8th floor
          Florida, 33139, Miami Beach - USA
          Home Page: http://www.claxson.com/
          Contact for Argentina:
          Ezequiel Paz
          E-mail: epaz@claxson.com
          Phone: 305-894-3574

          GENERAL MOTORS INVESTMENT MANAGEMENT CORPORATION
          767 5th Avenue
          New York, NY 10153
          Contact:
          GM Investor Relations
          General Motors Corporation
          Mail Code: 482-C34-D71
          300 Renaissance Center
          P.O. Box 300
          Detroit, MI 48265-3000
          Phone: (313) 667-1669


SCOTIABANK QUILMES: Suspended for Another Month
---------------------------------------------------------
Operations at Scotiabank Quilmes, the ailing Argentine unit of
Canada's No.4 bank, Bank of Nova Scotia, continue to be
suspended, Reuters reports, citing an Argentine central bank
statement.

"The Central Bank board resolved to extend the total suspension
of operations of this entity until July 19, 2002," the statement
said.

The bank was the first foreign-owned bank to be halted amid
Argentina's four-year recession that has pushed the entire
banking system to the brink of bankruptcy after last year's bank
run drained 20% of all deposits. The central bank suspended the
bank's operations on April 18 then extended the suspension for
another days May 18.

Scotiabank owes depositors, the Central bank, and private
creditors ARS3.7 billion. The obligation to the Central Bank
consists of ARS200 million in repurchase agreements and ARS170
million in rediscount loans.

Since the April suspension, Scotiabank's parent bank has been
studying various options to deal with the unit. At the end of
May, Scotiabank Quilmes presented a plan to the Central Bank to
allow it to return most deposits and pay off its debts to make
way for its possible sale.

Scotiabank has stopped financing its Argentine subsidiary after
taking a CAD707-million write-down that erased most of its
profits in the first quarter of this fiscal year.

For further information: Pam Agnew, Scotiabank Public Affairs,
(416) 866-7238

LATIN AMERICAN CONTACTS:

           SCOTIABANK QUILMES
           Alan Macdonald
           Chief Executive Officer
           Phone: (54-11) 4338-8000
           Fax: (54-11) 4338-8033
           Mail: 6th Floor
           Gral. J.D. Peron 564
           (C1038AAL) Buenos Aires

           Roy D. Scott
           Vice-President and Managing Director, Latin America
           Phone: (54-11) 4394-8726
           Fax: (54-11) 4328-1901
           Mail: P.O. Box 3955
           C1000WBN Correo Central
           Buenos Aires, Argentina
           E-mail: scotiarep@sinectis.com.ar


BANCO EUROPEO: German Parent Closes Bank On Regulatory Concerns
---------------------------------------------------------------
German bank Westdeutsche Landesbank Girozentrale (WestLB) said it
is closing Banco Europeo para America Latina SA, after changes in
government regulations forced banks to break contracts. The unit,
which was established in 1914, serves corporate clients and had
ARS825 million (US$227 million) of assets in December.

Banco Europeo's imminent closure, which is yet to be approved by
a judge and the central bank, is a result of the "legal
insecurity that prevails in the country," WestLB said in a
statement.

WestLB, Germany's largest state-owned bank, was referring among
others to the country's conversion of dollar deposits and loans
into pesos at different exchange rates. The move cost banks about
US$9.5 billion.

The Argentine unit was acquired by the German bank in 1992 and is
owned by WestLB through a Belgium-based subsidiary. It has ARS177
million of deposits. WestLB plans to open a representative office
in Buenos Aires after the closure.

The Argentine government expressed disappointment over the
decision, claiming it is on the path to solving the country's
crises.

CONTACT:  WESTLB
          Head office
          West German Landesbank Girozentrale
          Duke route 15
          40217 Duesseldorf
          Tel.: (0211) 826-01
          Fax: (0211) 826-6119

          Cathedral  Head office
          West German Landesbank Girozentrale
          Friedrichstrasse 1
          48145 cathedrals
          Tel.: (02 51) 412-01
          Fax: (02 51) 412 2921


YCRT: Privatization Fails; Government Reclaims Assets
-----------------------------------------------------
Yacimientos Carboniferos Rio Turbio (YCRT) coal mine is now back
in the Argentine government's hands after the state made void the
concession contract for YCRT coal mine and decided to transfer
the Company's assets back to country's energy department.

YCRT is the first privatized company in the country to return to
the government.

Basing on a clause in the decree that rescinds the contract, Juan
Leiz, YRCT's VP said that the state does not guarantee the
Company's survival. He was referring to language that says the
government and Santa Cruz province where the coal is located has
the final say on the Company's future.

YCRT signed a concession contract with the government in 1994
with an agreement of a state subsidy of US$22.5mn/y for the
Company.  Part of the concession contract entails the mine to
supply 370,000t/y of coal to San Nicolas thermoelectric power
plant. The Company, however, generated only 20,000t/m for the
plant.

According to Leiz, "to expect it [the government] to revive the
mine is a bit farfetched."  The state government suspended its
monthly subsidy of nearly US$1.9 million in August last year.
The Company's budget this year did not even consider the
payments, which were part of the concession contract.

Leiz blamed the Company's situation on measures adopted by the
country as well as results of the pesofication of the economy.

According to Leiz, YCRT has no economic resources. The Company
has to pay in pesos for coal that was subsidized in dollars as a
result of the pesofication. This reduces the revenues from coal
sales to less than 1/3 of the original amount before the
devaluation.

The pesofication of the economy, as well as a lack of subsidy and
fresh funds, makes the concession unviable, Leiz added.

Leiz doesn't foresee financial aid to the Company with the
ongoing crisis in the country. He also conveyed doubts as to the
survival of the Company.

CONTACT:  YACIMIENTOS CARBONIFEROS RIO TURBIO
          Roberto Werniske 573
          1609) Boulogne
          Phone: 4735-4422
                 4763-1279



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

ANDERSEN: Deal With PwC Suffers Setback
---------------------------------------
A deal for PricewaterhouseCoopers (PwC) to buy Arthur Andersen's
branch in Bermuda failed to close reports The Bermuda Sun.
According to senior partner Scott Hunter, the firm is still in
run off and most of the 20 or so staff, who left in May, are
taking up jobs with PwC. But, according to Hunter, although a
deal was nearly reached and announced in April, it did not come
to fruition.

"I originally shared that I hoped to be able to conclude an
agreement with PwC, Bermuda but, at the end of the process this
was not possible," said Hunter.

"PwC did make offers to a substantial number of our professional
staff and I am very pleased to say that practically all of our
staff have transitioned to PwC and other organizations that allow
them to continue their careers - it is a real tribute to the
quality of the team we built."

However, Hunter did not say who would be buying the business or
taking over the portfolios managed by Andersen Bermuda, but it is
understood that many of the client files have been transferred
over to PwC.

Global units of Andersen have struck merger deals with rivals in
the wake of the auditor's indictment by the U.S. Justice
Department that it destroyed records related to its audits of
fallen energy trader Enron Corp.

CONTACT:  ANDERSEN LLP
          Victoria Hall
          11 Victoria Street
          Hamilton HM 11
          Bermuda

          Hamilton mailing address:
          P.O. Box HM 1553
          Hamilton HMFX
          Bermuda

          Phone: 1 441 295 0001

          PRICEWATERHOUSECOOPERS
          Dorchester House
          7 Church Street West
          Hamilton HM 11

          Mail Address:
          PO Box HM 1171
          Hamilton HM EX
          Bermuda

          Phone: [1] (441) 295 2000
          Telecopier: [1] (441) 295 1242



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

AES CORP: Fitch Cuts Ratings On Mounting LatAm Challenges
---------------------------------------------------------
Fitch Ratings has lowered The AES Corp.'s (AES) senior unsecured
debt to 'BB-' from 'BB' and has placed its ratings on Rating
Watch Negative. The Rating Watch Negative reflects AES's
constrained liquidity in the next 6-9 months and AES's dependence
on dividends from Latin American subsidiaries. Due to Fitch's
policy regarding the linkage of ratings of subsidiaries with
those of a lower-rated parent, Fitch has also lowered the ratings
of AES's subsidiaries IPALCO Enterprises and Indianapolis Power
and Light (IP&L), as shown by table below. These ratings are also
placed on Rating Watch Negative, reflecting the companies'
ongoing exposure to AES. The ratings of CILCORP and Central
Illinois Light Company (CILCO) remained unchanged and on Rating
Watch Evolving pending their announced sale to Ameren
Corporation.

The revised ratings of AES, IPALCO, IP&L, CILCORP and CILCO are
as follows:

AES Corp.
-- Senior unsecured debt lowered to 'BB-' from 'BB';
-- Corporate revolver and ROARS lowered to 'BB-' from 'BB';
-- Senior subordinated debt lowered to 'B' from 'B+';
-- Convertible junior debentures and trust convertible preferred
securities to 'B-' from 'B';
-- Rating placed on Rating Watch Negative.

Indianapolis Power & Light Co. (IP&L)
-- First mortgage bonds and secured pollution control revenue
bonds lowered to 'BBB-' from 'BBB';
-- Senior unsecured debt lowered to 'BB+' from 'BBB-';
-- Preferred stock lowered to 'BB+' from 'BBB-';
-- Commercial paper lowered to 'B' from 'F2' and withdrawn;
-- Ratings placed on Rating Watch Negative.

IPALCO
-- Senior unsecured debt lowered to 'BB+' from 'BBB-';
-- Commercial paper lowered to 'B' from 'F2' and withdrawn;
-- Rating placed on Rating Watch Negative.

CILCORP
-- Senior unsecured debt 'BBB-';
-- Rating remains on Rating Watch Evolving pending consummation
of AES sale of CILCORP to Ameren.

CILCO
-- First mortgage bonds and secured pollution control revenue
bonds 'BBB';
-- Senior unsecured debt 'BBB-';
-- Preferred stock 'BBB-';
-- Commercial paper 'F2';
-- Ratings remain on Rating Watch Evolving pending the
consummation of AES sale to Ameren.

AES's lowered ratings reflect the increasingly challenging
business environment faced by the company in Latin America as
well as other countries such as the US and the UK, high
consolidated leverage and high parent company leverage. The
Negative Watch is occasioned by the significant refinancing risk
faced by the company in the next six to nine months and the
importance of securing financing or consummating asset sales
during this period. Fitch's ratings also take into consideration
the benefits of diversification in AES' portfolio, recent
announcements on asset sales and actions by AES management to
tighten controls, conserve cash, and reduce strains on corporate
liquidity.

Latin America is expected to be the second largest contributor of
dividends to AES after the US in 2002 and the next few years.
However, recent developments in Brazil, Venezuela and Argentina
have resulted in a difficult operating, regulatory, and capital
market environment for AES and other companies operating in the
region. As s result, dividends from these subsidiaries are
expected to be reduced significantly. In addition, AES' Latin
American subsidiaries Electropaulo and its immediate holding
companies Transgas and Elpa (the Affiliates) face significant
debt maturities in 2002-2004. A significant portion of the asset
flows initially slated to be paid as dividends to AES will be
used to repay debt at Electropaulo and Affiliates. Given their
importance to AES, the possibility remains that AES will repay
part of Electropaulo and Affiliates' maturing debts if refunding
or restructuring is not successful. Similarly, dividends from
other Latin American subsidiaries such as Gener have been
negatively affected by continuing economic and political
uncertainties in the region. In the US and UK, AES' merchant
generation business has been impacted by historically low
electricity prices. Fitch notes that, unlike other companies in
this sector, AES has insignificant energy trading activities and
mark to market earnings.

At the corporate level, AES faces refinancing risk in the next
six to nine months. In 2002-2003 it has maturities of debt
aggregating $2.125 billion in 2002-2003. A $300 million senior
note matures in December 2002. A $850 million bank revolving
facility is due in March 2003. A $200 remarketable or redeemable
securities (ROARS) is puttable by the remarketing agent in June
2003. A $350MM SELL loans has a registration date of July 2003.
And a $425 million bank loan is due in August 2003. It is
critical for AES to achieve renewal of its $850 million bank
revolver and raise additional cash whether in the capital market
or from proceeds of asset sales during the next 9 months. Fitch
will monitor AES' liquidity position very closely and will remove
its ratings from Rating Watch Negative once it crosses its
refinancing hurdles.

Positively, AES has actively engaged in cutting costs, reducing
discretionary capital spending and selling assets. The recently
announced sales of New Energy and CILCORP will provide additional
liquidity to the company in 2002-2003. The company has also
received additional dividends from other subsidiaries to mitigate
the shortfall from Latin America.

As mentioned above, the downgrades affecting securities of IPALCO
and IP&L are driven by Fitch's notching policy. On a stand-alone
basis, IPALCO and IP&L have financial profiles that are
consistent with companies at a higher rating category. The
current rating reflects linkage to the lower-rated parent AES.
IPALCO's rating also reflects the credit strengths of its
regulated wholly owned subsidiary IP&L. IP&L became the sole
contributor of operating revenues and cash flows to IPALCO
beginning in May 2001 when IPALCO divested all of its non-
regulated activities. IPALCO's ability to service interest and
principal on its debt depends on receiving upstream cash
distributions from IP&L. While distributions by IP&L are
restricted by various covenant tests contained in its first
mortgage bond indentures, IP&L's earnings are expected to exceed
the level of these covenants. In the next few years IPALCO is
expected to have EBITDA/Interest and Debt/EBITDA ratios that
hover around the high-3 times (x) and mid-3x, respectively.

The AES Corp., founded in 1981, is among the world's largest
power developers. It generates and distributes electricity and is
also a retail marketer of heat and electricity. AES owns or has
an interest in 182 plants, with more than 63,000 megawatts, in 31
countries and also distributes electricity in 11 countries
through 21 distribution companies. Indianapolis Power and Light,
Co. is a regulated public utility that principally engages in
providing electric service to 444,000 customers in the
Indianapolis metropolitan area.

CONTACT:          Fitch Ratings
                  Mona Yee, CFA, 212/908-0557
                  Ellen Lapson, CFA, 212/908-0504
                  James Jockle, 212/908-0547 (Media Relations)


BANCO ALFA: Fitch Downgrades, Affirms Ratings
---------------------------------------------
International ratings agency Fitch Ratings downgraded the long-
term foreign currency rating of Banco Alfa de Investimento to
'B+' from 'BB-.' The rating action follows a downgrade of
Brazil's sovereign Long-term foreign currency rating, to 'B+'
from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

Concurrently, the agency affirmed Banco Alfa's other ratings:

    Foreign Currency:

--  Short-term at 'B';
--  Individual at 'C';
--  Support at '4T';

    National:

--  Short-term at 'F1 (bra)';
--  Long-term at 'A+ (bra)';
--  Rating Outlook Stable.

CONTACT:

BANCO ALFA DE INVESTIMENTOS S.A
Alameda Santos, 466, 5§andar
SP Sao Paulo 01418-000
Phone: +55 11 3175 5773
Home Page: www.bancoalfa.com.br


BANCO BCN: Long-term Foreign Currency Ratings Cut
-------------------------------------------------
Fitch Ratings, the international ratings agency, cut the long-
term foreign currency rating of Banco BCN to 'B+' from 'BB-.' The
rating action follows a downgrade of Brazil's sovereign Long-term
foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

Meanwhile, the agency affirmed Banco BCN's other ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at 'B+';
--  Rating Outlook Negative.
--  Individual at 'B/C';
--  Support at '4T';

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA (bra)';
--  Rating Outlook Stable.

CONTACT:

BANCO BCN
Av. Boa Vista, 208 / 6 Floor
Tel: (11) 244-1891
Fax:(11) 244-1814
Home Page: www.bcn.com.br/


BANCO BRADESCO: Currency Downgrade Forces Fitch Rating Actions
--------------------------------------------------------------
International ratings agency Fitch Ratings slashed Banco
Bradesco's long-term foreign currency rating to 'B+' from 'BB-.'
The slash in the rating follows a downgrade of Brazil's sovereign
Long-term foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Banco Bradesco's other
ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at 'B+';
--  Rating Outlook Negative;
--  Individual at 'B/C';
--  Support at '4T'.

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA+ (bra)';
--  Rating Outlook Stable.

Fitch also affirmed Bradesco Seguros' IFS (Insurance Financial
Strength) rating at 'B+'. In line with the rating outlook
assigned to Brazil's sovereign ratings, the rating outlook for
Bradesco Seguros' IFS is negative. The national IFS rating of
'AA(bra)' is affirmed as well as the stable outlook assigned to
the latter.

CONTACT:

BANCO BRADESCO
Predio Novo - 4  ANDAR
Cidade de Deus, S/N, Osasco,
CEP.: 06029-900 Sao Paulo, Brasil
Phone: (55-11) 3684-9229 / 9302 / 2086
Fax: (55-11) 3684-9775
Home Page: http://www.bradesco.com.br/html/banco_bradesco/
Contact:
Investor Relations
E-mail:
4260.jean@bradesco.com.br
4260.bernardo@bradesco.com.br
4260.luciano@bradesco.com.br
4260.andressa@bradesco.com.br


BANCO BRASCAN: Long-term Foreign Currency Rating Reduced To `B+'
----------------------------------------------------------------
Brazilian bank Banco Brascan had its long-term foreign currency
rating reduced to `B+' from `BB-' by international ratings agency
Fitch Ratings. Fitch reduced the rating after it downgraded
Brazil's sovereign Long-term foreign currency rating, to 'B+'
from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

In the same announcement, the agency affirmed Banco Brascan's
other ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at 'B+';
--  Rating Outlook Negative;
--  Support at 4T.

National:

--  Short-term at 'F2 (bra)';
--  Long-term at 'A- (bra)';
--  Rating Outlook Stable.

CONTACT:

BANCO BRASCAN S/A
Av Alm Barroso 52 - 31 Andar - Centro
Rio De Janeiro - RJ
20031-000
Fax: (+11) 5507-3749-(+21) 2271-5151
Phone: (+11) 5503-6900(+21) 2271-5151
Home Page: www.bancobrascan.com.br/


BANCO DO BRASIL: Currency Ratings Drop, Outlook Still Negative
--------------------------------------------------------------
International ratings agency Fitch Ratings cut the long-term
foreign currency rating of Banco do Brasil to 'B+' from 'BB-.'
The rating action follows a downgrade of Brazil's sovereign Long-
term foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Banco do Brasil's other
ratings:

Foreign Currency:

--  Short-term at 'B';
--  Individual at 'D/E';
--  Support at '4T'.

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA+ (bra)';
--  Rating Outlook Stable.

CONTACT:

BANCO DO BRASIL
SBS Edificio Sede III, 24th Fl.
70089-900 Brasilia, D.F., Brazil
Phone: +55-61-310-3406
Fax: +55-61-310-2563
Home Page: http://www.bb.com.br
Contact:
      Marco Geovanne Tobias da Silva, IR Manager
      Phone: 61-310-5920


BANCO ITAU: Fitch Cuts Long-term Foreign Currency Ratings
--------------------------------------------------------
Fitch Ratings, the international ratings agency, cut the long-
term foreign currency rating of Banco Itau to 'B+' from 'BB-.'
The rating action follows a downgrade of Brazil's sovereign Long-
term foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Banco Itau's other ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at 'B+';
--  Rating Outlook Negative;
--  Individual at 'B/C';
--  Support at '4T';

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA+ (bra)';
--  Rating Outlook Stable.

CONTACT:

BANCO ITAU S.A.
Rua Boa Vista, 176
01014-919 Sao Paulo, Brazil
Phone: +55-11-237-3000
Fax: +55-11-5582-1133
Home Page: http://www.itau.com.br
Contacts:
     Olavo Egydio Setubal, Chairman of the Board
     Roberto Egydio Setubal, President and CEO
     Geraldo Soares, Investor Relations Superintendent
     Praca Alfredo Egydio de Souza Aranha, 100
     Torre Concei?ao - 11  andar
     04344-902 - Sao Paulo - SP
     Phone: +5511 5019-1549
     Fax: +5511 5019-1133


BANCO SAFRA: Currency Lowered, Fitch Includes In Downgrade
----------------------------------------------------------
International ratings agency Fitch Ratings slashed Banco Safra's
long-term foreign currency rating to 'B+' from 'BB-.' The
reduction in the rating follows a downgrade of Brazil's sovereign
Long-term foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Banco Safra's other
ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at 'B+';
--  Rating Outlook Negative;
--  Individual at 'B/C';
--  Support at '4T'.

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA- (bra)'
--  Rating Outlook Stable.

CONTACT:

BANCO SAFRA
Av. Paulista, 2100 - Sao Paulo
Brazil - 01310-930
Phone: (11) 3175-7575
Home Page: http://www.safra.com.br/ingles/index.asp
Contact: Carlos Alberto Vieira, President


BANCO SUL AMERICA: Long-term Foreign Currency Rating Cut To `B+'
----------------------------------------------------------------
Brazilian bank Banco Sul America was among the group of banks to
have its long-term foreign currency rating reduced to `B+' from
`BB-' by international ratings agency Fitch Ratings. Fitch
reduced the rating after it downgraded Brazil's sovereign Long-
term foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Banco Sul America's other
ratings:

Foreign Currency:

-- Short-term at 'B';

National:

--  Short-term at 'F1 (bra)';
--  Long-term at 'A (bra)';
--  Rating Outlook Stable;
--  Individual at 'D';
--  Support at '3T'.

CONTACT:

BANCO SUL AMERICA S.A
Rua Pedro Avancine,
73 1§andar
SP Sao Paulo 05679-000
Phone:  +55 11 3779 4800


BBV BANCO: Fitch Slashes, Affirms Ratings
-----------------------------------------
Brazil's sovereign Long-term foreign currency rating was lowered,
to 'B+' from 'BB-.' As a result, international ratings agency
Fitch Ratings cut the long-term foreign currency rating of BBV
Banco to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

Concurrently, the agency affirmed BBV Banco's other ratings:

Foreign Currency:

--  Short-term at 'B';
--  Individual at 'C/D';
--  Support at '3T';

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA- (bra)';
--  Rating Outlook Stable.


UNIBANCO: Fitch Cuts Long-term Foreign Currency Ratings
-------------------------------------------------------
Fitch Ratings, the international ratings agency, cut the long-
term foreign currency rating of Unibanco to 'B+' from 'BB-.' The
rating action follows a downgrade of Brazil's sovereign Long-term
foreign currency rating, to 'B+' from 'BB-.'

The rating remains on Outlook Negative, in line with the Negative
Outlook of Brazil's Long-term foreign currency sovereign rating.

At the same time, the agency affirmed Unibanco's other ratings:

Foreign Currency:

-- Short-term at 'B';

Local Currency:

--  Short-term at 'B';
--  Long-term at B+;
--  Rating Outlook Negative;
--  Individual at 'C';
--  Support at '4T'

National:

--  Short-term at 'F1+ (bra)';
--  Long-term at 'AA (bra)';
--  Rating Outlook Stable.

CONTACT:

UNIBANCO-UNIAO DE BANCOS RASILIEROS S.A.
Av. Eusebio Matoso 891, 15th Floor
Sao Paulo 05423, Brazil
Phone: +55-11-3097-1313
           +55-11-3097-4050
Fax: +55-11-3813-6182
Home Page: http://www.unibanco.com/
Contacts:
Geraldo Travaglia, CFO and Executive Director
Julia Reid, Investor Relations Associate Director
E-mail: investor.relations@unibanco.com.br


NOTE: Fitch Ratings' Support and Individual Ratings for Banks:

Fitch's Individual ratings assess how a bank would be viewed if
it were entirely independent and could not rely on external
support. Its Support ratings deal with the question of whether a
bank would receive support from its owners or from the state if
it were to get into difficulty. These ratings are not debt
ratings but rather, respectively, an assessment of the intrinsic
strength of a bank and of any level of outside support that may,
or may not, be available to it. A Support rating qualified by the
suffix "T" indicates significant existing or potential transfer
risk of economic and/or political origin that might prevent
support for foreign currency creditors.

Fitch's national ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk. They are signified
by the addition of an identifier, for the country concerned, such
as 'AAA (bra)' for national ratings in Brazil.

CONTACT:  Fitch Ratings
          Peter Shaw, 212/908-0553, New York
          Rafael Guedes +55 11 287 3177, Sao Paulo
          London Ratings Desk, +44 (0) 20 7417 6300
          James Jockle, 212/908-0547, New York (Media Relations)


CEMIG: Buying 45% of Infovias Shares
------------------------------------
In an official news release, Companhia Energetica de Minas Gerais
(CEMIG) and Empresa de Infovias S.A. (Infovias), both publicly
traded companies in Brazil, announced the acquisition by CEMIG
from AES Forca e Empreendimentos Ltda., of 81,700,210 common
shares with no par value of Infovias, representing 45.44% of the
share equity of Infovias. The purchase price paid by CEMIG for
the Infovias shares was R$81,090,000.00.

Following this acquisition, Infovias' 179,797,999 nominative
common shares with no par value are held as follows:

--  CEMIG owns 170,597,772 common shares, representing 94.88% of
Infovias' share capital;

--  AES Forca e Empreendimentos Ltda. owns 8,995,333 common
shares, representing 5% of Infovias' share capital; and

--  Clube de Investimento dos Empregados da CEMIG - CLIC (CEMIG's
employee investment fund) owns 204,885 common shares,
representing 0.12% of Infovias' share capital.

CEMIG, AES Forca e Empreendimentos Ltda. and CLIC remain parties
to the Infovias shareholders agreement, which is being amended in
connection with this transaction.

In accordance with the related acquisition agreement, CEMIG has
the right to acquire the remaining Infovias 5% stake held by AES
Forca e Empreendimentos Ltda. for R$5,406,000.00, restated in
accordance with IGP-M/FGV, Brazil's general market price index.
This further acquisition would be subject to authorization by the
Agencia Nacional de Telecomunicacoes -- ANATEL (the Brazilian
national telecommunications agency), as required by applicable
regulation.

CONTACT:  Companhia Energetica de Minas Gerais (CEMIG)
          Luiz Fernando Rolla, Investors Relations
          Tel. +55-31-3299-3930
          Fax. +55-31-3299-3933
          Email: lrolla@cemig.com.br

          The Anne McBride Company for CEMIG
          Vicky Osorio
          Tel. +1-212-983-1702
          Fax. +1-212-983-1736
          Email: vicky@annemcbride.com


HAYES LEMMERZ: Names South American Operations Managing Director
----------------------------------------------------------------
Hayes Lemmerz International, Inc. announced a realignment of its
European wheel businesses to strengthen coordination and
synergies worldwide. Hayes Lemmerz said the European
restructuring is part of its plan that was previously announced
last March that consolidated its European Wheels Operations into
a single organization, combining the former Steel Wheels Business
Unit and Aluminum Wheels Business Unit into a new single
organization, called the European Wheels Group.

The business transformation is a series of global initiatives
designed to make Hayes Lemmerz a more efficient and globally-
integrated company.

To lead the Company's initiatives:

Reporting directly to Curtis Clawson, Hayes Lemmerz' Chairman,
President and CEO, Giancarlo Dallera continues as the Company's
President of the European Wheel Group. He is responsible for all
operations outside of North America including facilities in
Europe, South East Asia, South Africa and South America. Mr.
Dallera will also act as President of the Company's European Cast
Aluminum Wheels Business Unit.

Hans-Heiner Buchel, President, European Fabricated Wheels will
continue to be responsible for the fabricated wheel operations
including the five plants in Germany, Turkey, Czech Republic,
India, and Spain.

Nini Degani is appointed Managing Director of the Company's South
American operations. Mr. Degani will be based in Brazil and will
be responsible for the Company's facilities in Santo Andre and
Guarulhos.

In a key strategic move to strengthen its outreach efforts in new
and existing markets, the European sales and marketing
organization, which previously was consolidated under the
leadership of Mr. Dallera, will continue to be managed by Marc
Hendrickx, Vice President of Sales and Marketing.

Messrs. Buchel, Degani, and Hendrickx will report directly to Mr.
Dallera. These changes will come into effect immediately.

Hayes Lemmerz International, Inc. is one of the world's leading
global suppliers of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components. The Company has 41 plants, 2 joint venture facilities
and approximately 12,000 employees worldwide.

On December 5, 2001, Hayes Lemmerz International, Inc., filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code, to
reduce their debt and strengthen their competitive position. This
filing includes 22 facilities in the United States and one plant
in Mexico. The Company's stock is traded Over the Counter (OTC)
with the symbol HLMMQ.

CONTACT:  Hayes Lemmerz International, Inc.
          Marika P. Diamond
          Tel. +1-734-737-5162
          URL. www.hayes-lemmerz.com



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

MADECO: Seeks Shareholder Approval On Proposed Capital Increase
---------------------------------------------------------------
Chilean copper and aluminum products manufacturer Madeco will
call an extraordinary shareholders' meeting on July 10 to approve
an equity issue. According to the Company, the issue is
"generally contemplated" to be part of ongoing negotiations for
restructuring its short and medium term debt.

Madeco SA is planning to carry out a capital increase for the
equivalent of no less than US$70 million by Sept. 30. The Company
says that the proposed plan already has the approval of the
board.

Proceeds of the issue will be used to pay roughly half of
Madeco's short and medium term bank debts. Madeco's total debt
stands at some US$325 million. The Company hired investment bank
Salomon Smith Barney (SSB) late last year to sort out its
financial difficulties, which it blames largely on the economic
crisis in Argentina, where it has invested heavily. It has
already closed some operations in Argentina. The Company has also
been hurt by the slump in the Brazilian telecom sector.

Madeco posted a first quarter loss of US$15.3 million after the
already financially troubled company closed down part of its
Argentina-based operations in an attempt to minimize further
damage from the deepening of that country's economic crisis.

Madeco, whose subsidiaries produce cable and wire, as well as
packaging, has also suffered a drop-off in telecommunications
investments in Brazil.

The company is majority-owned by Quinenco, the non-mining holding
of Chile's Luksic group.

To see financial statements and exhibits:
http://bankrupt.com/misc/Madeco.doc

CONTACT:  MADECO SA
          Marisol Fernandez
          Investor Relations
          Voice: (56 2) 520-1380
          Fax: (56 2) 520-1545
          E-mail : mfl@madeco.cl
          Web Site: www.madeco.cl

ADVISER:  SALOMON SMITH BARNEY
          In New York:
          767 Fifth Avenue
          New York City
          New York
          Phone:  212-230-3500
          Home Page: http://www.salomonsmithbarney.com/



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

ECUATORIANA DE AVIACION: Debt Woes Block Flights to the US
----------------------------------------------------------
A ruling by the Ecuadorian civil aviation authority DAC barred
Ecuatoriana de Aviacion to operate flights to the US. The
regulator issued the ruling on Ecuatoriana de Aviacion's failure
to settle a US$3.68-million debt, which corresponds to airport
taxes, renting of airport facilities, landing tax, flight
protection, and air services.

Since mid-December 2001, the flights of Ecuatoriana to the US
have been operated by LanChile who, in return, pays a commission.

In May this year, AeroContinente SA, Peru's largest airline,
offered US$42 million in payments plus assumption of debt in
exchange for a 70% stake in Ecuatoriana.

Carlos Morales, AeroContinente executive director, at that time,
revealed that the airline offered to pay the Ecuadorian
government US$2.3 million in cash, make monthly installments
totaling US$4.8 million over two years and assume about US$35
million in debt for a controlling stake.

According to Morales, the Ecuadorian government would retain a
25% stake and Ecuadorian investors the remaining 5%.

Ecuatoriana could report sales of between US$40 million and US$50
million in its first year once it resumes operations, Morales had
said.

CONTACT:  ECUATORIANA DE AVIACION
          Colon Y Reina Victoria Edf, Quito, Ecuador
          Phone: +593 (2) 563 003
          Fax: +593 (2) 563 920.
          Home Page: Website: www.ecuatoriana.com.ar/

          AEROCONTINENTE AIRLINES
          Jr. Moyobamba 101
          Tarapoto, Peru
          Phone: (094) 524332
          Fax: (094) 523704
          Home Page: http://www.aerocontinente.com/
          Contact: Sr. Zadˇ Desm‚, Vice President



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

COPAMEX: Lack of Demand Postpones $200M, 10-Year Bond Deal
----------------------------------------------------------
Copamex, one of the largest manufacturers of paper products in
Mexico, postponed its plans to price US$200 million of 10-year
bonds, Dow Jones Newswires reports, citing a company note
released to the press last week.

The report suggests that investors hadn't been hungry for the
deal managed by Salomon Smith Barney. Proceeds from the proposed
issuance were intended to be used to refinance existing debt,
including a portion of the Company's US$200 million senior notes
due 2004 (of which US$180 million is currently outstanding) and
short-term debt.

When trying to sell the bonds early last week, Copamex ended up
talking about pricing at yields in the 12.5% to 12.75% range. The
Company had originally hoped to pay yields more in the 11.75% to
12.25% range.

In early 2001, Copamex ceased operation of its pulp mill and
began purchasing all of its pulp needs externally. As a result,
the Company has benefited from lower international pulp prices
and has been able to improve profitability margins in spite of
weaker domestic demand. However, the increased reliance on
external pulp increases Copamex's exposure to the cyclical nature
of international pulp prices. Before the closure of its pulp
mill, the Company internally produced approximately two-thirds of
its pulp raw material needs. Pulp is primarily used to produce
printing & writing paper and certain paper-based consumer
products. Less-than-optimal growing conditions and extensive
land-ownership regulations limit the cost efficiency of pulp
production in Mexico. Copamex continues to internally supply two-
thirds of its recycled-paper and most of its de-inked pulp raw
material needs. Recycled paper is primarily used to produce
packaging paper products while de-inked pulp is used to produce
certain paper-based cons umer products.

Copamex has reduced refinancing risk over the past several months
by lengthening the debt maturity schedule. Currently,
approximately 75% of the Company's debt is long-term. However,
the Company's financial leverage remains relatively high,
primarily as a result of its largely debt-financed acquisition
strategy during the late 1990s. At the end of March, Copamex's
debt levels were US$525 million.

The proposed issuance is not expected to cause a significant
change in the Company's debt levels. With the conclusion of the
proposed issuance, the major components of the Company's new debt
profile are expected to include US$200 million senior notes due
2009, a US$72 million credit facility amortizing periodically
with a final maturity in 2006, MXN300 million (US$33 million)
notes due 2004, MXN300 million (US$33 million) notes due 2006, a
US$30-million credit facility maturing in 2004, any non-
refinanced portion of the US$180-million outstanding of senior
notes due 2004, and the remaining amount short-term debt. Most of
the Company's debt is dollar-denominated, while more than 90% of
the Company's revenues are peso-denominated.

CONTACT:  SALOMON SMITH BARNEY
          388 Greenwich Street
          35th Floor
          New York, NY 10013
          Home Page: http://www.salomonsmithbarney.com
          Phone: (212) 816-6000
          Fax: (212) 816-7020
          Contact:
          Richard G. Spiro, Global Head of Insurance Group
          Phone: (212) 816-2170
          Fax:(212) 816-5990
          E-mail: richard.spiro@ssmb.com


HYLSAMEX: Posts MXN2.1 B In Profits During April-May Period
-----------------------------------------------------------
As part of an effort to obtain shareholders' approval for its
proposed capital increase, Mexican steelmaker Hylsamex released
financial information as early as last week.

According to the Company, it generated profits of MXN2.1 billion
(US$215 million) for the period April-May with the sale of
461,000 tons of steel products. The iron-and-steel group of Alfa
also reported positive cash flow of MXN282million (US$28.9
million).

During the first quarter of 2002, the Company reported earnings
of more than MXN2.57 billion (US$263 million) with some 623,000
tons of products and a cash flow of MXN275 million (US$28.18
million).

The Company's results were favored, among other factors, by the
behavior of the U.S. and Mexican economies and the exchange rate.

Hylsamex will seek shareholders' approval in a meeting scheduled
for June 28 to sell up to MXN3.5 billion (US$365 million) in
shares. The offering is aimed at boosting the Company's equity to
MXN5.89 billion.

The capital increase is part of an agreement to restructure
US$1.2 billion debt that Hylsamex defaulted on in December after
sinking steel prices and higher energy costs slashed its cash
flow to US$155 million last year from US$253 million in 2000.

In mid-April, Hylsamex got the majority consent needed to
restructure its 2007 Eurobonds, avoiding a formal default on the
US$300 million debt. The Company had missed a US$13.8 million
coupon payment on the bonds March 15.

The steelmaker extended the maturity on the bonds by three years,
and also worked out a deal to restructure US$627 million in bank
debt.

CONTACT:  HYLSAMEX
          Investor Relations
          Margarita Gutierrez
          E-Mail: mgutierrez@hylsamex.com.mx

          Ricardo Sada
          E-Mail: rsada@hylsamex.com.mx
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452
          Mexico


IEC ELECTRONICS: Shutters Mexican Facility; Sells Assets
--------------------------------------------------------
IEC Electronics Corp. announced that it is closing its Mexican
manufacturing facility and is selling the assets to Electronic
Product Integration Corporation (EPI). IEC's customer base in
Reynosa will be transferred to EPI's Juarez operations.

IEC's Chairman and acting CEO W. Barry Gilbert said, "We firmly
believe selling the assets of our Mexican facility is a step in
the right direction towards restoring financial stability and
economic viability to this company. Without the continuing losses
in Mexico, we expect to see improvement to our bottom line in the
4th quarter."

About IEC

IEC is a full service, ISO-9001 registered EMS provider. The
Company offers its customers a wide range of services including
design, prototype and volume printed circuit board assembly,
material procurement and control, manufacturing and test
engineering support, systems build, final packaging and
distribution. Information regarding IEC can be found on its web
site www.iec-electronics.com.

About EPI
EPI, with headquarters in Southfield, Michigan, is an ISO-9001
registered full service independent provider of customized EMS
services. The Company's electronic manufacturing services consist
primarily of the manufacture of complex printed circuit board
("PCB") assemblies using surface mount technology ("SMT") and pin
through-hole ("PTH") interconnection technologies. Information
regarding EPI can be found on its web site www.epictech.biz.

CONTACT:          IEC
                  Heather Keenan, 315/332-4262
                  hkeenan@iec-electronics.com


ISPAT INTERNATIONAL: Imexsa Amends Bond Swap
--------------------------------------------
Ispat International N.V. ("Ispat") announced that Ispat Mexicana,
S.A. de C.V. ("Imexsa"), Ispat's Mexican operating subsidiary,
has issued a supplemental offering memorandum, letter of
transmittal and other ancillary documents (the "Supplemental
Documents") amending and supplementing its exchange offer for all
outstanding 10-1/8% Senior Structured Export Certificates due
2003 of Imexsa Export Trust No. 96-1 (the "Senior Certificates").
The Supplemental Documents, which amend and supplement the
offering memorandum issued by Imexsa on January 24, 2002,
describe the terms of an agreement in principle Imexsa has
reached with a group of holders comprising over a majority of the
aggregate outstanding principal amount of the Senior
Certificates. The group of holders has indicated that it
currently intends to participate in the amended exchange offer.
Under the agreed upon terms of the amended exchange offer, Imexsa
will offer to exchange 10-5/8% Senior Structured Export
Certificates due 2005 to be issued by Imexsa Export Trust No. 96-
1 (the "New Senior Certificates") for Senior Certificates validly
tendered and accepted for exchange. The amended exchange offer
expires at 5:00 p.m., New York City time, on June 28, 2002,
unless extended. The New Senior Certificates will be fully and
unconditionally guaranteed by Ispat, Grupo Ispat International
S.A. de C.V. ("Grupo") and certain of the subsidiaries of Imexsa.
The New Senior Certificates will also be secured on a pro rata
basis with Imexsa's bank loans by liens on certain assets of
Imexsa and by a pledge of the stock of Imexsa and Grupo.

Imexsa has also reached an agreement in principle with all of its
bank lenders on the proposed terms of a restructuring of its bank
loans. In connection with the bank debt restructuring and the
amended exchange offer, Imexsa's shareholders have agreed to
provide a $20 million loan for working capital purposes.

The amended exchange offer is conditioned upon the holders of not
less than 96% of the outstanding principal amount of Senior
Certificates having validly tendered and not withdrawn their
Senior Certificates prior to the Expiration Date and upon the
other terms and conditions set forth in the Supplemental
Documents.

In connection with the amended exchange offer, Imexsa is also
soliciting consents from holders of Senior Certificates to amend
the agreements governing the Senior Certificates. Holders
tendering their Senior Certificates in the exchange offer must
also deliver consents to such amendments. Consents may not be
withdrawn after the Expiration Date.

D.F. King & Co., Inc. is the information agent for the exchange
offer and consent solicitation. Requests for documentation should
be made to D.K. King & Co., Inc. at (800) 847-4870.

This announcement is not an offer to purchase or a solicitation
of consents with respect to any Senior Certificates or an offer
of New Senior Certificates for sale. Securities may not be
offered and sold in the United States absent registration or an
exemption from registration. Any public offering of securities to
be made in the United States must be made by means of a
prospectus that may be obtained from the issuer or selling
security holder and will contain detailed information about the
company and management, as well as financial statements.

To see financial statements:
http://bankrupt.com/misc/Ispat_International.txt

CONTACT:  ISPAT INTERNATIONAL N.V.
          Annanya Sarin, Head of Communications
          Tel. +44-20-7543-1162
               +31-10-2829471
               or
          T.N.Ramaswamy, Director, Finance
          +44-20-7543-1174

          CITIGATE DEWE ROGERSON
          John McInerney, Investor Relations
          Tel. +1-212-419-4219

          D.F. KING & CO., INC.
          77 Water Street
          20th Floor
          New York, NY 10005
          Phone: 212-269-5550
          Fax: 212-509-6295
          E-mail: Webmaster@dfking.com
          Contact:
          Peter C. Harkins
          Mary Ellen Goodall
          Jennifer R. Wall


VITRO: Signs Definitive Agreement With AFG Industries, Inc.
-----------------------------------------------------------
Vitro, S.A. de C.V. and AFG Industries, Inc. announced signing a
definitive agreement to establish a 50/50 joint venture for the
production of float glass in Mexicali, B.C.N. Mexico. Vitro Plan,
S.A. DE C.V., a subsidiary of Vitro will join forces with AFG
Industries, Inc, a subsidiary of Asahi Glass Co., Ltd. Vitro says
the agreement is in line with its strategy of focusing on core
businesses of Flat Glass, Containers and Glassware. The Company
also claims the transaction will strengthen Vitro's operations.

The transaction, previously announced on November 2, 2001, is
consistent with Vitro's strategic plan to focus on its core
businesses and strengthen its operations. The cost of the
Mexicali plant will be in the order of US$100 million, will have
a production capacity of around 550 metric tones of flat glass
per day, and will serve the growing glass demand in NAFTA.

The joint venture company will convert an existing glass
container facility, owned by Vitro, into Vitro's and AFG most
modern, high quality, float glass plant. The partners expect that
the plant will be completed by the fourth quarter of 2003. The
agreements will be effective once regulatory approvals are
obtained.

Jose Domene, Chief Operating Officer of Vitro, said, "This
alliance between two key global leaders, will allow both
companies to join forces, and obtain competitive advantages to
better serve its customers".

Luc Willame, President of the Flat Glass Company, said, "The
plant's location will also help us reduce shipping costs to our
customers since West Coast demand has historically exceeded
supply and we have had to ship glass from the Midwest and East to
service our customers. With NAFTA economies improving and glass
demand strengthening, this is an excellent time to invest in
additional capacity. Timing is also fortunate with the
implementation of California's new energy codes and improving
residential and commercial construction."Roberto Rubio, President
of Flat Glass, added, "This strategic alliance goes beyond a huge
opportunity for both companies. It is the beginning of brilliant
future".

Note:
The Flat Glass Company of Asahi Glass Co., Ltd. was introduced in
April this year and is one of the 4 "In house companies" that was
set up in the framework of the global reorganization of AGC. The
others being "Automotive Glass Company", "Display Company" and
"Chemicals Company". The Flat Glass Company, headquartered in
Brussels, Belgium, covers all the glass production and processing
activities for the building sector and industries sector in
America through AFG, in Japan/Asia through Asahi Flat Glass and
in Europe through the Glaverbel Group. With its 35 float plants,
the Flat Glass Company is the world leader in raw glass, with a
world market share of around 20%. It currently employs around
27,500 people and has annual sales of approximately USD 3.2
billion.


About AFG Industries
AFG Industries, Inc., operating unit of the Flat Glass Company in
North America, is the largest US glass supplier to the
construction industry. It has 10 glass producing lines in eight
plants and operates 51 distribution and fabrication locations
through AFGD, 5 residential insulating plants through AFG
Insulating and 2 coating operations through AFG Coatings. AFG
Industries Inc. website can be found at: http://www.afg.com.

About Vitro
Vitro, S.A. de C.V. through its subsidiary companies is a major
participant in four distinct businesses: flat glass, glass
containers, glassware and household products. Vitro's
subsidiaries serve multiple product markets, including
construction and automotive glass, wine, liquor, cosmetics,
pharmaceutical, food and beverage glass containers, fiberglass,
plastic and aluminum containers, glassware for commercial,
industrial and consumer uses, and household appliances.
Founded in 1909, Monterrey, Mexico-based Vitro has joint ventures
with 9 major world-class manufacturers that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries do
business throughout the Americas and Europe, with facilities and
distribution centers in seven countries, and export products to
more than 70 countries. Vitro's website can be found at:
http://www.vitro.com.

To see Vitro's latest financial statements:
http://bankrupt.com/misc/Vitro.txt

CONTACT:

(Media):
Albert Chico Smith
Vitro, S. A. de C.V.
011 (52) 81 8863-1335
achico@vitro.com

(Financial Community):
Rodrigo Collada
Vitro, S. A. de C.V.
+52 (81) 8863-1240
rcollada@vitro.com

(U.S. Contacts):
Luca Biondolillo/Susan Borinelli
Breakstone & Ruth Int.
(646) 536-7012 / 7018
Lbiondolillo@breakstoneruth.com
sborinelli@breakstoneruth.com



=============
U R U G U A Y
=============

BANCO DE MONTEVIDEO: Government Seizes Control On Cash Shortage
---------------------------------------------------------------
Uruguay's central bank took over Banco de Montevideo SA after the
bank ran short of cash, Bloomberg reports. The central bank
appointed an administrator and injected funds into the nation's
fourth-largest bank.

Banco Montevideo is also the fourth bank to be closed as a result
of the debt default and devaluation in Argentina, which triggered
withdrawals in Uruguay.

The bank, owned by Grupo Velox, a holding company controlled by
Uruguay's Peirano family, had UYU11 billion (US$579 million) of
assets as of December and UYU8.7 billion of deposits.  The bank
was in short of cash even before the withdrawals started in
December, due to the purchase of another bank Caja Obrera from
the government.

The World Bank's International Financial Corp. owned about 9% of
Banco Montevideo.

Uruguay has let its peso trade freely Thursday for the first time
in two decades. The government has been using its dollar reserves
and raising interest rate to support its currency.

The government is counting on its freshly acquired US$3 billion
international aid to avoid debt default and operate its banks.
Part of the aid is being allotted to add funds to banks most hurt
by deposit withdrawals, says Minister Alberto Bension. About a
fifth of the banks deposit was lost due to worries that deposits
will be frozen in the same way in Argentina.

CONTACT:  BANCO MONTEVIDEO
          Misiones
          1399 - Montevideo
          Fax: 9162880
          E-mail: info@bm.com.uy
          Home Page: http://www.bancomontevideo.com.uy
          Contact: Sr. Marcelo Pestarino, President


BANCO GALICIA: Clients Disapprove Of Deposit-Return Scheme
----------------------------------------------------------
Creditors of Banco Galicia Uruguay, a subsidiary of beleaguered
Argentine group Grupo Financiero Galicia, rejected a proposed
deposit-return plan presented earlier this month.

The Uruguayan bank, which was intervened by the central bank and
had its operations subsequently suspended after losing some
US$500 million between December and January, presented a deposit-
return proposal earlier this month that has to be approved by
Uruguay's central bank.

The plan outlines a nine-year payback scheme, under which the
bank will make a direct cash payment of 3% to each client, then
pay back 30% of its obligations (deposits) during the first two
years, and finally 10% annually during the next seven years. All
installments will come with a fixed interest rate of 2%.

Galicia also said that the payment schedule could be speeded up
if the economic situation in Argentina improves, in which case
Galicia Uruguay would increase the percentage of the
installments.

Uruguayan lawyer Miguel Loinaz and the Galicia clients he
represents rejected this plan but would agree to a plan that
contemplates an initial cash-payment of 10% and the rest of the
savings returned in a five-year period, Loinaz said.

Galicia Uruguay, the country's biggest non-government bank by
deposits, had about US$1 billion of deposits, US$1.67 billion in
assets and US$231 million in shareholders equity as of Dec. 31.

CONTACT:  BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
          Tte. Gral Juan D. Peron 407
          1038 Buenos Aires, Argentina
          Phone: +54-11-6329-0000
          Fax: +54-11-6329-6100
          Home Page: http://www.bancogalicia.com.ar

          BANCO GALICIA URUGUAY S.A.
          World Trade Center
          Luis A. Herrera 1248 Piso 22 Montevideo
          Uruguay
          Tel.:(+598-2) 628-1230
          www.bancogalicia.com.uy




               ***********


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.

This material is copyrighted and any commercial use, resale or
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