/raid1/www/Hosts/bankrupt/TCRLA_Public/020711.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, July 11 2002, Vol. 3, Issue 136

                           Headlines


A R G E N T I N A

REPSOL YPF: Market Objects To Petrobras Acquisition Plan


B E R M U D A

FOSTER WHEELER: Wins Contract To Upgrade Spanish Refinery


B R A Z I L

CEMIG: To List On Spanish Exchange July 12


C H I L E

EMPRESA NACIONAL: Cross Defaults May Mean Payment Acceleration
ENERSIS: Argentine Unit's Default Prompts Early Debt Payments
MADECO: ADR Fails To Maintain NYSE Listing Requirements


C O L O M B I A

AES COLOMBIA: Files For Bankruptcy Protection In U.S. Court


E C U A D O R

BANCO DEL PACIFICO: Harsh LatAm Investment Climate Delays Sale
BANCO DEL PACIFICO: Profits Return During 1H02
BANCO DEL PICHINCHA: CB Governor Reiterates Support


M E X I C O

AVANTEL: Citigroup May Fight Legal Obstacles To Retain Ownership
CINTRA: Board To Announce Details of Airlines' Sale This Week
ENRON: Four Units Sue Mexican Firms For Failed Projects
GRUPO BITAL: SCH Completes Loan Portfolio Evaluation
HYLSAMEX: Announces Preliminary 2Q02 Results
TRI-NATIONAL DEVELOPMENT: Senior Care Lawyers Demand Retraction


P E R U

SIMSA: Looks On Glencore Partnership For Survival


U R U G U A Y

ANCAP/LOMA NEGRA: In Talks Over Possible Modernization Project


     - - - - - - - - - -


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

REPSOL YPF: Market Objects To Petrobras Acquisition Plan
--------------------------------------------------------
Speculation that Brazilian oil giant Petroleo Brasileiro maybe
thinking of buying the Argentine unit of Repsol-YPF SA has met
disapproval from several analysts, Dow Jones Newswires suggests
in a report.

Analysts see the move as something that wouldn't go over well
with investors as it runs counter to Petrobras' stated
acquisition strategy and would expose the Brazilian company to
higher risk.

Moreover, many believe YPF SA isn't for sale as a whole company,
and even if it were, Petrobras wouldn't have cash to buy it.
Market observers peg YPF's price tag at between US$4 billion and
US$7 billion.

The Spanish-Argentine oil and energy group, on the other hand,
remains mum regarding the rumors.

"There's no offer from Petrobras to buy YPF, so there's nothing
to comment on," a Repsol spokeswoman said.

Repsol-YPF, staggering under a debt load expected to be just
under EUR10 billion at the end of the second quarter, has been
hard hit by the meltdown of the Argentine economy where the
company holds over half its assets. Some have speculated that
Repsol could try to exit Argentina.

CONTACTS:  REPSOL YPF
           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page: http://www.repsol.com
           or
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires
           Argentina



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

FOSTER WHEELER: Wins Contract To Upgrade Spanish Refinery
---------------------------------------------------------
Foster Wheeler Ltd. announced that its subsidiary Foster Wheeler
Iberia, S. A. was awarded a contract by BP Oil Refineria de
Castellon, S.A. to upgrade part of its 120,000 barrels per stream
day (BPSD) Castellon refinery in Spain to produce ultra-low
sulfur fuels. The project is valued at approximately $100
million.

Foster Wheeler will be responsible for the engineering, equipment
and material procurement, and construction supervision for the
project, which is scheduled for mechanical completion in mid-
2004.

The project, part of BP's Ultimate Generation Fuels program,
includes the installation of a new diesel hydrotreater, a
hydrogen plant, and a naphtha hydrotreater. Foster Wheeler also
will revamp the existing distillation, heavy/light gas oil, MEA
regeneration and sour water stripper units, as well as the main
utilities, including DCS and electricity. The project will be
managed by Foster Wheeler with the participation of Technip for
the hydrogen plant and utilities.

"This project is of prime importance for BP's Castellon complex
as the company continues its program to produce environmentally
friendly gasoline and diesel products by 2005," said Jose Manuel
R. Pozueco, president and vice chairman of Foster Wheeler Iberia.
"This contract further solidifies Foster Wheeler's expertise in
clean fuel projects, which has been demonstrated throughout the
world."

CONTACT:  Foster Wheeler Ltd. (Clinton)
          Media:
          Alastair Davie
          Phone: 908/730-4444
             or
          Other:
          Phone: 908/730-4000
          Web site: www.fwc.com



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

CEMIG: To List On Spanish Exchange July 12
------------------------------------------
Companhia Energetica de Minas Gerais (CEMIG), Brazil's second-
largest electricity company, will list on Spain's Latibex
exchange on July 12, making it the 23rd Latin American company to
list on the Spanish bourse, reports Dow Jones Newswires.

Two of the Brazilian utility's top executives, Finance Director
Cristiano Correa de Barros and Investor Relations Director Elmar
Santana, are scheduled to hold a meeting with investors at the
Madrid Stock Exchange July 11.

Latibex said that Espirito Santo B&M, a unit of Banco Espirito
Santo SA, will act as the market specialist for CEMIG shares,
offering bid and asking prices with a maximum spread of 1.5%
while the Sao Paolo Stock Exchange, the stock's home, is open,
and a maximum spread of 4% when it's closed.

Latibex was founded in December 1999 by Spain's stock exchanges
to give Latin American companies the opportunity to have a euro
listing and access to European capital.

CEMIG posted a first-quarter profit of BRL220 million (US$89
million), reversing a loss of BRL12.5 million in the same period
in 2001.

In June, the Company received approval from its board of
directors to use hedging operations to protect up to 100% of the
Brazilian electric utility's dollar-linked debt against foreign
exchange variations. In its first quarter financial statement,
CEMIG revealed that its dollar-linked debt stood at about US$600
million.

The state of Minas Gerais controls 51% of the voting shares of
CEMIG.

CONTACT:  CEMIG
          Avenida Barbacena, 1200
          Sto Agostinho  30123-970 Belo Horizonte - MG
          Brazil
          Phone   +55 31 299 4900
          Home Page http://www.cemig.com.br
          Contacts:
          Djalma Bastos De Morais, Chairman
          Geraldo De Oliveira Faria, Vice Chairman
          Cristiano Correa De Barros, Finance Director



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

EMPRESA NACIONAL: Cross Defaults May Mean Payment Acceleration
--------------------------------------------------------------
Chile's Empresa Nacional de Electricidad SA said that defaults by
unspecified units may eventually trigger early payments for as
much as 60% of the Company's US$5.1 billion in debt, Bloomberg
reports, citing an Empresa Nacional annual report filed with the
SEC.

Empresa Nacional, the electricity generating arm of the Chilean
Enersis SA, said its Argentine units account for US$510 million
of its total outstanding debt, the filing said. The Company also
has stakes in companies in Brazil, Colombia and Peru.

Exchange controls Empresa Nacional's Argentine generator. A
devaluation that increased the value of its debt, triggered a
default at Central Costanera SA by breaking provisions of a US$95
million loan from banks, the filing said. Costanera, which hasn't
missed debt payments, is trying to change the loan provision, the
filing said.

Hidroelectrica El Chocon SA, another Argentine unit of Empresa
Nacional, plans to negotiate with creditors for more time to pay
a US$140-million of bonds maturing in August, the filing said.


ENERSIS: Argentine Unit's Default Prompts Early Debt Payments
-------------------------------------------------------------
Chile's Enersis SA, South America's second-largest electricity
company, said that a default on some debt by its Argentine unit
Edesur SA might trigger early payments on its own obligations,
Bloomberg reports, citing the Company's recent filing with U.S.
regulators.

"Certain defaults by Edesur under its indebtedness could cause a
significant portion of our indebtedness to become due and
payable," the filing said without specifying how much of its debt
would come due.

If Enersis needs to make early debt payments, it might be forced
to seek additional loans from its Spanish parent Endesa SA,
because a 72% drop in the Argentine peso's value against the
dollar this year has caused revenue to slump, according to
Francisco Colchero, an analyst at Celfin SA. Enersis, according
to the filing, has US$9.3 billion of debt.

"If they have to make additional debt payments, I see even more
trouble," Colchero said. Enersis had US$240 million of interest
expense last year, about a third of which was paid with dividends
and management fees from its Argentine units, he said. Pre-
payment at Enersis might reduce funds for investment.

The Company plans to spend about CLP2.23 trillion (US$3.2
billion) in Latin America this year through 2006, Enersis' filing
said, almost doubling its annual capital expenditure from the
US$344 million Enersis spent last year.

CONTACT:  EDESUR  S.A.
          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos, 140, 3o P
          Capital Federal 1076
          Argentina
          Home Page: www.edesur.com.ar
          Tel.: 4370-3700/4370-3370
          Fax:4381-0708

          ENERSIS S.A.
          Santo Domingo 789
          Santiago, Chile
          Phone: (562) 688-6840
          www.enersis.cl
          Contacts:
          Alfredo Llorente, Chairman
          Enrique Garcia, CEO
          Rafael Miranda, Vice Chairman
          Mauricio Balbontin, CFO
          Domingo Valdes, Gen. Counsel


MADECO: ADR Fails To Maintain NYSE Listing Requirements
-------------------------------------------------------
Industrial conglomerate Madeco SA confirmed that the New York
Stock Exchange (NYSE) notified the Company of the failure of its
American Depository Receipt (ADR) to comply with listing
requirements, Dow Jones reports. Its ADR has fallen below the
US$1.00 threshold for a consecutive 30-day period, trading at
US$0.80, up 5.3% on a paltry 400 shares, early Tuesday afternoon.

The NYSE gave Madeco six months to buoy its 30-day share price
average to more than US$1.00. In case shareholders are to convene
for this matter, the NYSE will wait for the next general
shareholder meeting.

Madeco, in a press release, said it is going to work on the issue
after the completion of its financial restructuring process. The
statement said that the Company is to hold an extraordinary
meeting to approve a capital increase, which will enable it to
pay off about 50% of its outstanding bank debt.

Effects of the crisis in Argentina as well as regional economic
slowdown prompted Madeco to undertake financial restructuring and
to analyze an increase in its equity. It has hired Salomon Smith
Barney as advisor.

The capital increase plan is expected to be completed by the end
of September. Aside from paying off its debt, the increase is
also expected to reprogram payments of the balance of its debt in
seven years, with a three-year grace period, the Company said.

CONTACT:  MADECO S.A.
          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          E-mail: mfl@madeco.cl
          Home Page: http://www.madeco.cl
          Contacts:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545
          E-mail: ir@madeco.cl

          SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller



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

AES COLOMBIA: Files For Bankruptcy Protection In U.S. Court
-----------------------------------------------------------
As part of an effort to restructure US$336 million in loans,
Chivor SA, a Colombian unit of power producer AES Corp., filed
for bankruptcy protection in the U.S. Bankruptcy Court in New
York.

Citing court documents, Bloomberg reports that the Company,
Colombia's fourth-largest power generator, is seeking approval
from U.S. Bankruptcy Judge Burton Lifland for a "prepackaged"
Chapter 11 reorganization plan, in which case, the Company gets
the support from most of its creditors for a recovery plan before
filing for bankruptcy.

The Company's bankruptcy filing, which listed US$588.6 million in
assets and US$349.3 million in liabilities, came after Chivor
defaulted in December on a final US$336-million payment due on a
US$400 million loan. Already, the Company has secured agreements
with all but one of its 21 lenders to extend the repayment period
through the end of 2006, according to court papers.

"At present, (Chivor) has insufficient funds to pay all amounts
due and payable under the existing credit agreement," Chivor said
in the filing.

Arlington, Virginia-based AES acquired Chivor in 2001 when it
bought Chile's Gener SA. Chivor obtained the US$400 million loan
in December 1996 to finance its purchase by Gener. AES is not
liable for the loan, company officials have said. Chivor alone
was responsible for meeting payments from its cash flow.

The banks syndicating the loan were Bank of America Corp. J.P.
Morgan Chase & Co., Royal Bank of Canada, Banco Bilbao Vizcaya
Argentaria's Colombian unit, Banco Santander Central Hispano,
Bancolombia SA and Corporacion Financiera Suramericana y Nacional
SA, Chivor officials said.

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

          BANK OF AMERICA - Corporate Headquarters
          Bank of America Corporate Center
          100 North Tryon Street
          Charlotte, North Carolina 28255
          www.BankofAmerica.com
          Contacts: Ken Lewis, Chairman & CEO

          J.P. MORGAN CHASE & CO.
          270 Park Avenue
          New York, NY 10017
          Phone: (212) 270-6000
          Fax: (212) 270-1648
          Home Page: http://www.jpmorganchase.com/
          Contact:
          William Harrison, Jr., Chairman and CEO
          Dina Dublon, Chief Financial Officer
          Geoffrey Boisi, Co-CEO of the Investment Bank
          Investor Relations
          Phone: (1-212) 270-6000

          ROYAL BANK OF CANADA
          P.O. Box 1
          Royal Bank Plaza
          Toronto, ON M5J 2J5
          Phone: 416-974-5151
          Home Page: http://www.royalbank.com/
          Contact:
          Investor Relations
          Royal Bank of Canada
          123 Front St West, Suite 600
          Toronto, ON M5J 2M2
          Phone: 416-955-7802
          Fax: 416-955-7800

          SANTANDER CENTRAL HISPANO S.A.
          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page: http://www.bsch.es
          Contacts:
          Ana P. Botin, Chairman, Banesto
          Emilio Botin-Sanz, Chairman
          Francisco G. Rold n, Financial Division General Manager
          Investor Relations:
          Phone: + 34.91.558.13.69
                 + 34.91.558.10.05
          Fax: + 34.91. 558.14.53
               + 34.91.522.66.70



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

BANCO DEL PACIFICO: Harsh LatAm Investment Climate Delays Sale
--------------------------------------------------------------
Latin America's hostile investment environment may prompt Ecuador
to delay the sale of the country's No.3 bank Banco del Pacifico
for at least a year.

Pacifico, which fell into state hands in 1999 during a sector
crisis, was scheduled to go on the block by the end of the year.
However, due to Argentina's ongoing financial crisis and
Ecuador's elections this year, which have made investors wary of
entering the poor Andean nation, the sale may be postponed.

Meanwhile, in an effort to attract investors, Ecuador must focus
on improving the bank's financial health. Its current
administrators will continue to cut operating costs, sell assets
and recover non-performing loans, Pacifico's executive vice
president, Roberto Gonzalez, said late Monday.

"We consider that at least until the very end of 2003 or the
beginning of 2004, the bank won't be in a position to be sold,"
Gonzalez said.

After the Central Bank's US$121-million injection in March, the
bank was able to pay off some of its liabilities, improve
liquidity, and reduce its financial costs from about US$1.2
million a month to US$700,000, Gonzalez said.

CONTACTS:  BANCO DEL PACIFICO
           Ec. Javier S nchez Pulley, Presidente del Directorio
           Dr. Felix Herrero Bachmeier, Presidente Ejecutivo

           P. Ycasa 200 GUAYAQUIL Ecuador
           Tel:  + 593 566010
           Fax:  + 593 564636


BANCO DEL PACIFICO: Profits Return During 1H02
----------------------------------------------
Banco del Pacifico SA, reported a US$21.9-million profit in the
first half of 2002, compared to a loss of US$35 million in the
first half of 2001, Bloomberg reports, citing a statement from
the Spanish consulting company Interdin & Ahead.

Interdin & Ahead took over management of the Guayaquil-based bank
in October from the government, which seized Pacifico two years
ago to prevent it from collapsing during a financial crisis.
Analysts said the profit would help the government implement
plans to sell the bank during the first quarter of 2003.

"The earnings are good for a state bank, particularly considering
that last year it produced the biggest losses in the system,"
said Vanessa Britto a banking analyst at Quito based consultancy
Multiplica.

Moreover, Interdin said Pacifico cut staff costs 15% and
operating costs 10% in the first half, raised US$6.5 million by
selling assets and collected US$25 million in overdue loans.
Pacifico had US$603.7 million in assets as of April 30, or 10.9%
of all bank assets in Ecuador.


BANCO DEL PICHINCHA: CB Governor Reiterates Support
---------------------------------------------------
Central Bank Governor Mauricio Yepez denied liquidity problems in
Ecuador's banking system affirmed Banco del Pichincha as one of
the most solid financial institutions in the country.

Yepez's declaration came after rumors about liquidity problems in
one of the country's leading banks spread, worrying depositors
who have heard people are lining up at the bank to withdraw their
funds.

An investigation headed by Banking Supervisor Miguel Davila is to
be undertaken to find out who started the rumor.  The executive
branch of the government is supportive of the move of the banking
authorities.

Vice President Pedro Pinto expressed his support through radio
station Sonorama on Monday. Pinto said the rumor harms not only
the banking system but also the whole country.

The economic crisis of the late 1990s led the government to
takeover some 20 banks, which were restructured at more than US$3
million.

CONTACT:  BANCO DEL PICHINCHA C.A.
          Av. Amazonas, Edif. Bco. del Pichincha; Quito
          Phone: (2) 980-980, 981-081
          Fax: (2) 981-280, 981-281
          Home Page: www.pichincha.com



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

AVANTEL: Citigroup May Fight Legal Obstacles To Retain Ownership
----------------------------------------------------------------
Although US banking company Citigroup made announcements to sell
its stake in Mexican Avantel in conjunction with the sale of
Worldcom's stake in the venture, analysts expect the company to
evade foreign ownership laws and hold on to its position.

Citigroup has 55% of Avantel, which it acquired as part of its
US$12.6-billion purchase of Mexican bank Grupo Financiero
Banamex-Accival in July 2001, while WorldCom owns 45% of the
Mexican long distance and data services provider.

Citigroup's acquisition of its stake in Avantel violated Mexico's
telecoms law that limits foreign ownership in fixed line
operators to under 50%.

The Mexican government ordered Citibank to draft a plan to solve
the matter, and has given it a year from the time of the merger
to comply with the law.

A Citigroup source quoted by Bloomberg last week said that the
bank intends to sell its Avantel stake, but only after WorldCom
divests its shares in the company, as this would bring in
Citigroup a better price for its stake.

However, Gabriela Baez, an analyst at Pyramid Research, expects
Citigroup will try and keep Avantel through legal procedures that
would place its shares in Avantel in the hands of a Mexican
institution under the Citigroup umbrella.

Citigroup has strong reason to hold on to Avantel for the time
being. According to Bloomberg, the company is not likely to
recover even a fair portion of its share of the US$1.5 billion
that Banamex and US-based long distance carrier MCI, bought by
WorldCom in 1998, spent to acquire Avantel.

Baez also pointed out that if Citigroup wants to sell its stake
together with Worldcom, it can only do so if it is to tender
Avantel to a Mexican company due to foreign ownership limits. But
still it would not be able to sell its entire 55% stake to a
foreign company.

Avantel, a long distance and data services provider, had assured
markets it does not share the financial troubles of Worldcom.
Avantel operates an 8,000 kilometer fiber optic network in Mexico
through which provides long distance and broadband services to
corporate and residential customers in the country.

CONTACT:  WORLDCOM
          500 Clinton Center Drive
          Clinton, MS 39056
          1-877-624-9266
          Phone: (601) 460-5600
          Fax: (601) 460-8350
          E-mail: http://www.worldcom.com/
          Contact:
          John Sidgmore, President and CEO

          AVANTEL SERVICIOS LOCALES, S.A. (AVANTEL LOCAL)
          Reforma No. 265, 6ø piso, Col.
          Cuauhtemoc, 06500, M‚xico, D.F.
          Tel: 5242-1004
          Fax: 5242-1060
          Home Page: www.avantel.com.mx/

          CITIGROUP INC.
          399 Park Ave.
          New York, NY 10043
          Phone: 212-559-1000
          Fax: 212-793-3946
          Email: investorrelations@citi.com
          Home Page: http://www.citigroup.com
          Contact:
          Sanford I. (Sandy) Weill, Chairman and CEO
          Todd S. Thomson, EVP, Finance and Investments and CFO

          Citigroup in Mexico:
          Banamex
          Avenida Paseo De La Reforma
          No. 390, Col. Juarez
          Mexico City 6695
          Mexico
          Contact:
          Jose Ortiz-Izquierdo
          Phone: 52-5225-5136
          E-mail: jortiz@banamex.com


CINTRA: Board To Announce Details of Airlines' Sale This Week
-------------------------------------------------------------
The board of Mexico's Cintra is due to announce details this week
for the sales process of the country's two leading airlines. The
government-owned holding company controls.

Already, Mexico's antitrust watchdog agency, the Federal
Competition Commission (CFC), has ruled that Aeromexico and
Mexicana, which together handle about 80% of domestic air
traffic, must be sold separately to preserve competition.

Merrill Lynch is the financial agent for the transaction while
the Mexican division of Transparencia Internacional will oversee
the sale process to ensure that it is carried out in line with
the conditions of the bidding process.

Sim¢n Garc¡a Rubio, an air sector analyst, said that this could
be the moment to start the process to give the transaction the
time that will be necessary. However, he said the sale would have
to be carried out in the first few months of 2003 because it will
not be easy to make a good sale at the current time.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com

          CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          MERRILL LYNCH MEXICO
          Paseo de las Palmas No. 405
          Piso 8
          Col. Lomas de Chapultepec
          11000 Mexico City, Mexico
          Phone: 5255-5201-3200
          Fax: 5255-5201-3222

CONTACT:  TRANSPARENCIA MEXICANA
          Dulce Olivia 71
          Colonia Villa Coyoac n
          DF, 04000
          Contact:
          Federico Reyes Heroles, President
          Eduardo A. Boh¢rquez, Executive Secretary

          National Chapter
          Phone/Fax: +52-5-5668 0955
          Email: tmexican@data.net.mx
          Home Page: www.transparenciamexicana.org.mx


ENRON: Four Units Sue Mexican Firms For Failed Projects
-------------------------------------------------------
Four Enron Corp. subsidiaries have taken legal action against
three Mexican construction companies, which they say owe them
more than US$21 million for failed oil exploration projects,
according to a report released by Mexico City daily, El
Universal.

The subsidiaries, Enron Power Corp., Enron Engineering &
Construction, Enron Power Construction, and Enron Equipment
Procurement, filed a suit Monday in the state district court in
Houston. The suit named Mexico-based Cigsa Construction,
Astilleros Del Golfo and AGE Mantenimiento as defendants.

These Mexican firms, according to the suit, agreed to work with
the Enron subsidiaries on the oil exploration projects beginning
in 1998. Enron advanced the companies US$38 million, some of
which has been repaid. Enron and the companies would also share
any profits or losses from the projects, according to the suit.

The Enron subsidiaries are claiming breach of contract, unjust
enrichment and fraud.


GRUPO BITAL: SCH Completes Loan Portfolio Evaluation
----------------------------------------------------
Spanish banking giant Santander Central Hispano SA (SCH) will
have to decide what it will do with its Grupo Financiero Bital SA
stake, following its recently-concluded evaluation of the Mexican
group's loan portfolio, says Dow Jones Newswires.

SCH boosted its stake in Bital to 30% of voting rights in a
surprise move in April. Consequently, it requested regulatory
clearance to analyze the loan portfolio of Bital, and is expected
to decide soon if it wants to increase its stake, cash out, or
establish some sort of partnership, according to sources close to
Bital.

Bital, which operates Mexico's third-largest branch network, is
one of the few banks under control of Mexican shareholders and is
currently undergoing a US$400-million capital injection agreed
with regulators.

In addition to SCH's minority stake, Dutch giant ING Groep NV
signed a memorandum of understanding and will soon purchase a
17.5% stake in Bital for US$200 million.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax:57.21.26.26
          E-mail: ricaggs@bital.com.mx

          SANTANDER CENTRAL HISPANO S.A. (BSCH)
          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Email: investor@grupo.bsch.es
          Home Page: http://www.bsch.es
          Contacts:
          Ana P. Botin, Chairman, Banesto
          Emilio Botin-Sanz, Chairman
          Francisco G. Rold n, Financial Division General Manager

          Investor Relations:
          Phone: + 34.91.558.13.69
                 + 34.91.558.10.05
          Fax: + 34.91. 558.14.53
               + 34.91.522.66.70


HYLSAMEX: Announces Preliminary 2Q02 Results
--------------------------------------------
Hylsamex, S.A. de C.V. announced that preliminary results for the
quarter ended on June 30, 2002 show an improvement in its
operating performance.

Total sales volume grew 13% from the first quarter of 2002 to 703
thousand tons. In addition, sales revenue amounted to US$345
million and revenue per ton amounted to US$491, increases of 19%
and 5%, respectively, from the previous quarter.

Cost of goods sold, on a per ton basis, remained stable when
compared to the previous quarter, at a level of US$423/ton.

Cash flow generation, measured as EBITDA, totaled US$52 million
in the quarter, representing a 73% increase from the previous
quarter.

Hylsa, S.A. de C.V., Hylsamex's largest subsidiary, increased its
sales volume by 10% when compared to the previous quarter. Sales
revenue, in dollar terms, grew 15%, while EBITDA in 2Q02 amounted
to US$31 million or 64% above the EBITDA recorded in the previous
quarter.

CONTACT:  Hylsamex Investor Relations
          Margarita Gutierrez
          Phone: 011-5281-8865-1224
          E-mail: mgutierrez@hylsamex.com.mx


TRI-NATIONAL DEVELOPMENT: Senior Care Lawyers Demand Retraction
---------------------------------------------------------------
Senior Care Industries Inc. announced Tuesday that its counsel in
San Diego has demanded a retraction from bankrupt Tri-National
Development Corp., claiming it made false claims disguised as a
press release on July 1, 2002.

Senior Care's counsel, Richard Norton of the San Diego firm of
Norton & Adams, stated in a letter to bankruptcy counsel for Tri-
National that the Tri-National press release issued by that
company on July 1, 2002 contained numerous false representations
of fact and took numerous other events and statements out of
context, in order to place Senior Care in a false light.

Counsel noted that the press release was clearly retaliation
against Senior Care, resulting from the Bankruptcy Court's ruling
denying summary adjudication of Tri-National's claims in Senior
Care's lawsuit against that company and the court's rejection of
Tri-National's arguments claiming that Senior Care had no
interest in Tri-National properties in Mexico.

Counsel demanded an immediate statement retraction by Tri-
National's management, which purported Senior Care's ownership
claim related to the Mexican properties are "false claims" and
the Mexican properties are "falsely claimed assets."

A retraction was further demanded for statements made in the
press release which claimed that Senior Care has made "false
representations" to the public asserting Senior Care
"disregarded" reporting requirements of the Securities and
Exchange Commission.

Robert Coberly, spokesman for Senior Care, stated that contrary
to the false accusations made by Tri-National in its press
release of July 1, 2002, "the truth is that Senior Care
International has always had equitable title to the properties in
Mexico since contracts for deed were executed in May of last year
and those contracts are valid and enforceable."

Coberly went on to say that since the Bankruptcy Court ruled that
it has no jurisdiction over the Mexican properties, Senior Care
International is now free to move ahead with development of its
properties in Mexico.

Coberly further stated that Senior Care had, indeed, reported to
the Securities & Exchange Commission that on May 29, 2002, that
Senior Care sold its stock in Senior Care International to a
group of prominent Mexican business people for a base sale price
of $70,229,055 U.S. payable over a period of four years.

Interest on the deferred payment amount has been added onto the
face amount of a series of promissory notes issued by the buyer
in favor of a newly formed Mexican corporation wholly owned by
Senior Care.

The contracts allow for certain price adjustments and
reimbursements for amounts paid by Gold Coast in the event of the
inability of Gold Coast to develop any of the properties to which
Senior Care International has claim. Also, the price may be
adjusted depending upon the extent of and validity of liens
against the properties to which Senior Care International has
claim.

As a part of the transaction, Senior Care International is
transfering $100,000 U.S. into an account in the name of the
buyer in Mexico to be used to defend the contracts for deed owned
by Senior Care International in the Mexican courts.

               About Senior Care Industries

Senior Care Industries is a specialty real estate development
firm constructing a focused portfolio of real estate uniquely
designed and located to meet the needs of a growing senior
citizen population. The company entitles land it acquires in
order to develop and construct age-restricted residential
projects that are on the cutting edge of design and efficiency.

In addition, Senior Care develops commercial properties that are
ancillary to its senior projects. Senior Care continues to
actively seek land for development or existing large apartment
complexes that can be converted to senior housing. For additional
information, see http://www.seniorcareind.com.

CONTACT: SENIOR CARE INDUSTRIES
         Robert Coberly
         Phone: 949/376-3125



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

SIMSA: Looks On Glencore Partnership For Survival
-------------------------------------------------
Pending shareholders' approval, Peruvian lead-zinc miner San
Ignacio de Morococha (Simsa) is to establish a strategic
partnership with Swiss natural resources company Glencore,
reports Business News Americas.

Under the agreement worth US$5.5 million, Glencore would obtain
exclusive rights to purchase all of Simsa's production at market
prices, would supervise Simsa's debt restructuring plan and
provide technical and business advice. Glencore has also asked
for Simsa's hydroelectric plant and Callao deposits as a
guarantee.

Simsa, which went into a form of bankruptcy protection late last
year and has recognized debts of US$18 million, believes this
partnership will help it see its way out of its current depressed
financial situation.

Simsa mines at San Vicente in the Chanchamayo area of Junin
department in central Peru and ranks as a medium-sized Peruvian
mining company.

CONTACT:  COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA
          Calle Uno 795 - Urb.
          Corpac
          San Isidro - Lima 27
          Phone: 224-3432
          Fax: 224-1321
          E-Mail: simsa@simsa.com.pe



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

ANCAP/LOMA NEGRA: In Talks Over Possible Modernization Project
--------------------------------------------------------------
Uruguay's state-owned company Ancap and the Argentine cement
company Loma Negra are currently in negotiations for possible
investment to modernize the two Ancap plants in Uruguay. The
talks are aimed at strengthening trade agreements regarding
cement business that was entered into by the companies on
December of 1998.

The trade agreement entitles Ancap with technical assistance and
technology on industrial and management matters. It also
stipulates exportation of 200,000 tons of Portland cement to
Argentina in 2002, a condition that was not satisfied. The cement
sector suffered losses, which in 2001 increased to US$5 million
in relation to the previous year. Losses for this year are
predicted to be US$8 million.

An earlier venture of Ancap and Loma Negra is the establishment
of Cementos del Plata S.A., a company intended to market the
Portland Division's production in Uruguay and increase cement
exports to Argentina. The plan however was not approved by the
Board of Directors of both companies due to interruptions of
cement export to Argentina.

Uruguay's state oil company, Ancap, ended 2001 with US$70 million
in debt, representing 16% of the company's capitalization. The
company is upgrading its La Teja refinery for US$160 million and
in order to finance the project, Ancap entered into a US$115-
million credit facility, of which US$50 million has already been
drawn.

Ancap is currently negotiating with its lenders for a waiver.

Loma Negra itself is in a tight financial situation due to the
devaluation in Argentina. The company announced in April it would
default on its debt, and said it was analyzing its liquidity
options, as well as its sources of financing and operations.

At the end of 2001, the cement maker's debt stood at US$430
million, nearly 40% of which has been converted into
pesos, while debts owed to foreign banks accounted for 60%.

CONTACT:  ANCAP (Administracion Nacional de Combustibles, Alcohol
          y Portland)
          Central Administration Paysandœ
          s/n esq. Avenida del Libertador
          Montevideo, 11100 Uruguay
          P.O. Box 1090
          Phones: +598(2) 902 0608
                          902 3892
                          902 4192
          Fax +598(2) 902 1136 902 1642
          Telex ANCAP UY 23168
          E-mail: info@ancap.com.uy
          Home Page: www.ancap.com.uy
          Contact:
          Benito E. Pi eiro, Chief Executive Officer
          Phone +598(2) 900 2945
                +598(2) 902 0608 Ext. 2253
          Fax +598(2) 908 9188

          Washington Iribarnegaray, Assistant Manager
          Phone: +598(2) 901 5049
                 +598(2) 902 0608 Ext 2330
          Fax : +598(2) 902 11 36

               LOMA NEGRA
               Bouchard 680 (1106)
               Federal capital
               Argentina
               Phone: (54-11) 4319-3000
               E-mail: loma.internet@lomanegra.com.ar
               Home Page: http://www.lomanegra.com.ar
               Contact:
               Alejandro Bengolea, Managing Director




               ***********


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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