/raid1/www/Hosts/bankrupt/TCRLA_Public/020904.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

           Wednesday, September 4, 2002, Vol. 3, Issue 175

                           Headlines


A R G E N T I N A

IMAGEN SATELITAL: Humphreys Assigns D to $80M Worth of Bonds
PEREZ COMPANC: Purchase Agreement With Petrobras Has Loopholes
REPSOL YPF: Government Lowers Tax On Diesel Exports
SIDERAR: Humphreys Assigns Corporate Bonds C Rating


B E R M U D A

FLAG TELECOM: Deadline to Decide On Amended Plan Sept 20
FLAG TELECOM: Court Issues Notice Regarding "Scheme Meetings"


B R A Z I L

BRAZILIAN BANKS: Brazil Asks Foreign Banks To Retain Credit Line
EMBRATEL PARTICIPACOES: Shares Suddenly Dip After Huge Gain
MRS LOGISTICA: CVRD Makes Provisions for Losses
TELEMAR: Alvaro Dos Santos Releases Open Letter to Shareholders


C H I L E

DISPUTADA: Sale Conflict Solution Out of Reach
ENAMI: Approves Efficiency Plan, Cost Cutting Measures


C O L O M B I A

BBVA BANCO GANADERO: Fitch Assigns Negative Rating Outlook
INSTITUTO DE FOMENTO: Outlook Goes From Stable To Negative
SANTANDER COLOMBIA: Fitch Changes Rating Outlook to Negative


M E X I C O

BITAL: Atlantico Integration Delays HSBC Takeover
CFE: Tender for $1.07B El Cajon Project Takes Place This Month
FAR-BEN: Ahumada Considers Bond Issue To Back Purchase
FAR-BEN: Final Decision on Ahumada's Offer Expected Soon
FAR-BEN: FASA Reports Improved Consolidated Results for 1H02
NII HOLDINGS: US Trustee Balks at Delloitte & Touche Retention
ROHN INDUSTRIES: Amends Credit, Forbearance Agreements


     - - - - - - - - - -

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

IMAGEN SATELITAL: Humphreys Assigns D to $80M Worth of Bonds
------------------------------------------------------------
Local rating agency Humphreys Argentina Calificadora de Riesgo
S.A. assigned a "D" rating to Imagen Satelital S.A.'s US$80
million simple issue corporate bond maturing May 2, 2005. The
rating is based on the company's financial position as of March
2002.

In May, Imagen Satelital announced suspension of a US$4.4 million
interest payment on its 11% Senior Notes due 2005. The interest
payment was due on May 1, 2002. Standard & Poor's also lowered
the Company's ratings to 'D' from 'CC' after the default.

Parent company Claxson Interactive (Nasdaz:XSON) also recently
extended the pending exchange offer and consent solicitation for
all US$80 million outstanding principal amount of the 11% Senior
Notes due 2005 of subsidiary Imagen Satelital. The Company
evaluated its restructuring alternatives with the help of Banc of
America LLC.

Imagen is a subsidiary of Claxson Interactive Group Inc., a
multimedia provider of branded entertainment content in Spanish
and Portuguese. The company offers 12 channels of cable
programming, seven of which it owns and five which it represents.

CONTACT:  IMAGEN SATELITAL S.A.
          Investors: Sebastian Reynal, +011-54-11-4339-3713
          Press: Alfredo Richard, +1-305-894-3588


PEREZ COMPANC: Purchase Agreement With Petrobras Has Loopholes
--------------------------------------------------------------
Petrobras plan to buy Perez Companc is likely to encounter
difficulties. In July, the Brazilian oil giant signed a
preliminary agreement to buy 58.6% stake in Perez Companc for
US$754.6 million in cash and US$370.5 million in seven-year
bonds. According to an El Clarin report, the agreement included
buying the shares that Perez Companc has in the nuclear business.

Perez Companc owns controlling stakes in the firms Conuar
(Combustibles Nucleares Argentinos SA) and FAE (Fabrica de
Aleaciones Especiales), which Perez Companc has in partnership
with CNEA (Comision Nacional de Energia Atomica).

Conuar is an industrial complex, which operates in the Centro
Atomico of Ezeiza, and specializes in the production of fuels for
the atomic plants in Atucha I and Embalse Rio Tercero. FAE
manufactures special alloys used in nuclear fuels. These 2
companies register an average annual turnover of US$23 million.
In 1982, CNEA decided to partially privatize these 2 companies.
Perez Companc acquired 66% of Conuar and 45% of FAE's shares.

The problem of Petrobras' purchase of Perez Companc lies in the
fact that the rules of these companies do not allow a foreign
company to become a private partner. Pablo Lacoste, Manager of
CNEA, says this regulatory hurdle makes the operation impossible.

Petrobras has also said it wanted a 47.1% stake in Petrolera
Perez Companc, a smaller oil company which is wholly owned by the
Perez Companc family, for US$56.7 million in cash.

Perez Companc is controlled by a family of the same name. The
Company, an integrated energy firm based in Buenos Aires, has oil
and natural gas fields scattered throughout Argentina and Latin
America.

The company also owns roadside gasoline retailers, refineries,
power-generating assets, and has a stake in the country's largest
natural gas transportation line, TGS SA.

To see financial statements:
http://bankrupt.com/misc/Perez_Companc.htm

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar


REPSOL YPF: Government Lowers Tax On Diesel Exports
---------------------------------------------------
The Argentine government decided to reduce the diesel export tax
from 20% to 5%, the latest in a series of measures agreed to by
the oil companies on June 14. The new rules are aimed at creating
a stable operating environment in Argentina for the companies.
The cut is applied to exports from August 1 onwards.

Spanish-Argentine oil group Repsol YPF welcomed the decision, as
it signifies an improvement of the conditions in Argentina. The
same reception goes for Fortis Bank, although, in its research
note Monday, it said that the government's decision doesn't have
a significant effect on Repsol-YPF's numbers.

"However, this is good news for the group as this demonstrates a
more constructive attitude from the Argentine government towards
the oil sector in the country," Fortis Bank said.

Repsol YPF exports 20% of the diesel production of its Argentine
refineries. It says it can now export more fuel to other markets
to compensate for the fall in demand in Argentina.

The oil giant's operations have been tied to Argentina since
Repsol SA bought Argentina's YPF in 1999 for US$15 billion.

The purchase transformed Repsol from being primarily involved in
refining and marketing into the Organization for Economic
Cooperation and Development's sixth-largest oil and gas company.
Before the acquisition, exploration and production accounted for
about 23% of the Company's assets, but this jumped to around 50%
after the purchase of YPF.

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

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


SIDERAR: Humphreys Assigns Corporate Bonds C Rating
---------------------------------------------------
Humphreys Argentina Calificadora de Riesgo S.A. assigned "C"
ratings to Siderar S.A.I.C.'s US$110 million series and/or Class
Corporate Bond and US$250 million program issue corporate bond,
both maturing July 31, 2003.  The ratings are based on the
company's financial standing as of June 30, 2002.

For the first half ended June 30, 2002, the Company posted
consolidated net loss of ARP49.9 million, consolidated ordinary
income of ARP117.8 milion, EBITDA of ARP224.3 million (21.7% of
net sales), net sales of ARP1,035.8 million, and net loss per
share at ARP 0.1437 per share (ARP1.1497 per ADS).

The results were affected by the devaluation of the country's
currency, which exceeded inflation.

According to a company statement, "results for the first half of
the year developed in a context of considerable uncertainty, as a
result of the difficult political and economic situation
Argentina undergoes."

Please find attached Financial Tables as of June 30, 2002.
http://bankrupt.com/misc/siderar.pdf

CONTACT:  Leonardo Stazi
          Siderar S.A.I.C.
          Phone: 54 (11) 4018-2308/2249
          Home Page: www.siderar.com



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

FLAG TELECOM: Deadline to Decide On Amended Plan Sept 20
--------------------------------------------------------
The United States Bankruptcy Court Southern District of New York
announces that the deadline by which votes to accept or reject
Flag Telecom Holdings Limited's Third Amended and Restated Joint
Plan of Reorganization of Debtors will be received is on
September 20, 2002 at 3:00 pm (prevailing Eastern Time).
Poorman-Douglas Corporation or Innisfee M&A Incorporated is
tasked to receive the votes.

A Confirmation Hearing will be held before the Honorable Allan L.
Gropper, United States Bankruptcy Judge in Room 617 of the United
States Bankruptcy Court Southern Distric of New York, One Bowling
Green, New York, New York, on September 26, 2002 at 11:00 am
(prevailing Eastern Time), or as soon after as counsel can be
heard, to consider confirmation of the Plan and any objections to
it.

Copies of the Third Amended and Restated Disclosure Statement
will be mailed to all known creditors, but not to the holders of
equity securities of the Debtors. Holders of claims that are
entitled to vote on the Plan will receive ballots and
instructions for voting. Holders of claims that are not entitled
to vote on the Plan and equity security holders will receive a
notice of non-voting status.

The Disclosure Statement and Plan are on file with the Clerk of
the Bankruptcy Court and may be viewed on the official website
for the Bankruptcy Court, http://www.nysb.uscourts.govusing an
account obtained from Pacer Service Center by dialing 1-800-676-
6856 (from the US) or(210) 301-6440 (from outside the US).
Copies may also be obtained upon request to Richard Neznamy,
Gibson, Dunn & Crutcher, 200 Park Avenue, New York, New York,
10166, and telephone (212) 351-3919.

Responses and objections, if any, to confirmation of the Plan or
any of the other relief sought by the Debtors in connection with
approval of the Plan must be in writing, shall conform to the
Federal Rules of Bankruptcy Procedure and the Local Rules of the
Bankruptcy Court, and shall be filed with the Bankruptcy Court
(with a hard-copy delivered directly to Chambers) pursuant to the
procedures set forth at http://www.nvsb.uscourts.gov

The notice of the court also provides:

(i) that if any objection to confirmation of the plan is not
filed and served, the objecting party will be barred from
objecting to confirmation of the plan and may not be heard at the
confirmation hearing;

(ii) that any claim as to which an objection has been filed and
served by the debtors is a disputed claim for purposes of voting
on the plan;

(iii) that ballots returned by holders of disputed claims will
not be counted or will be counted only in the amount of such
claims, if any, that are not the subject of an objection;

(iv) that if a holder of a disputed claim wishes to vote on the
plan, it is the obligation of such holder to obtain an order
provisionally allowing such disputed claim for purposes of
voting; and

(v) that the confirmation hearing may be adjourned by the
bankruptcy court from time to time without further notice to
creditors or parties in interest other than by an announcement in
bankruptcy court of such adjournment on the date scheduled for
the confirmation hearing.

CONTACT:  GIBSON, DUNN & CRUTCHER LLP
          Attorneys for Debtors
          Conor D. Reilly (CR-6559)
          M. Natasha Labovitz (MNL-5153)
          200 Park Avenue
          New York, New York 10166
          Phone: (212) 351-4000


FLAG TELECOM: Court Issues Notice Regarding "Scheme Meetings"
-------------------------------------------------------------
The Supreme Court of Bermuda has directed "Scheme Meetings" of
certain creditors of Flag Telecom Holdings Limited and Flag
Limited to review and possibly approve, schemes of arrangement
proposed to be made between the companies and their creditors.

The notice, which applies only to the Flag Holdco bondholders and
the Flag Limited Bondholders, says that meetings will be held at
the offices of KPMG at Crown House, 4 Par Is Ville Road Hamilton
HM 08 in the Islands of Bermuda on September 23, 2002. The Scheme
Meetings will be held as follows:

FLAG Telecom Holdings Limited Scheme Creditors Scheme Meeting
commencing at 10 am (Bermuda time); and

FLAG Limited Scheme Creditors Scheme Meeting commencing at 11 am
(Bermuda time) or, if later, at such time as the Scheme Meeting
of FLAG Telecom Holdings Limited Scheme Creditors concludes.

Scheme Creditors can obtain copies of the Schemes and Explanatory
Statements, which are exhibited to the Plan of Reorganisation and
Disclosure Statement  filed in the United States Bankrutcy Court
for the Southern Distnct of New York from Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton F Ca Bermuda,
Freshfields Bruckhaus Deringer, 65 Fleet Street London EC4Y I HS,
England and Milbak Tweed Hadley & McCloy LLP, I Chase Manhattan
Plaza, New York, NY.

In addition combined ballot/proxy forms for voting on the Plan
and the Scheme can be obtained from the same places.

A creditor who wishes to vote on just the Scheme or to exercise
its right to give a general proxy for voting at the Scheme
Meeting should contact the joint provisional liquidators of the
Companies in Bermuda at KPMG, Crown House, 4 Par la Ville Road,
Hamilton HM O8, Bermuda (attention: Darryl Ashbourne).

Creditors may vote in person at the said Scheme Meetings or they
may appoint another person, whether a Scheme Creditor or not, as
their proxy to attend and vote in their stead.

Completed ballot/proxy forms for voting on the Plan and the
Schemes or forms of proxy on the Scheme(s) only must be lodged by
3 pm (prevailing Eastern Time) on September 20, 2002 in
accordance with the instructions set out in the ballot/proxy form
or form of proxy (as relevant).

The Chairman of the meeting is Chris Laverty of KPMG LLP, 100
Temple Street, Bristol BS1 6AG, England or in her absence Robert
D. Steinhoff of KMPMG, Crown House 4 Par la Ville Road, Hamilton
HM 08, Bermuda.  The two are joint provisional liquidator of the
companies.  The Chairman will report the results of the meeting
to the court.

The Court has ordered that the Chairman shall have the ultimate
discretion to determine the value, if any, to be attributed to a
creditor's vote.

The schemes will be subject to the approval of the Supreme Court
of Bermuda.

CONTACT:  CONYERS DILL & PEARMAN
          Clarendon House
          2 Church Street
          Hamilton, HM CX
          Bermuda



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

BRAZILIAN BANKS: Brazil Asks Foreign Banks To Retain Credit Line
----------------------------------------------------------------
Brazil will ask banks in Europe and Japan to maintain the
country's credit line to help companies invest and refinance
debt, Bloomberg reports. Banks have slashed US$5 billion in
credit lines to companies to reduce exposure in the region as its
currency, bonds and stocks value declined nearly 25 percent this
year.

The country's finance minister Pedro Malan will meet bankers in
London September 9 and proceed to Amsterdam, Frankfurt, Paris and
Tokyo to make similar campaigns. The minister, with central bank
President Arminio Fraga made a similar drive in New York, asking
creditors to maintain operations in the country ahead of
October's presidential election.

The country's upcoming elections are worrying investors that an
opposition candidate elected may spark a default on BRL1.1
trillion (US$339 billion) of public debt.

The minister's trip in New York succeeded in gaining a commitment
from Citigroup Inc. J.P. Morgan Chase & Co., Wachovia Corp, as
well as from other banks, to continue doing business in Brazil.


EMBRATEL PARTICIPACOES: Shares Suddenly Dip After Huge Gain
-----------------------------------------------------------
Embratel Participacoes SA preferred shares fell 6 centavos, or
2.1%, to BRL2.81, after gaining 82% last month, relates
Bloomberg. Shares of the country's largest long-distance
telephone company jumped 82% in August on speculation the
Brazilian company may be an acquisition target, after three
different companies showed interest in buying its competitor,
Intelig Telecomunicacoes Ltda.

"If some companies are interested in buying Intelig, Embratel's
competitor, they could be interested in paying even a higher
price for Embratel," Rezende, from Maxima, said. "Investors have
to see now how much will be paid for Intelig. If Intelig is sold
for a low price, this may reverberate negatively on Embratel's
valuation."

Embratel, a subsidiary of troubled U.S. phone giant WorldCom
Inc., reported a second-quarter loss of BRL152.2 million, a
whopping 292% rise over the year-earlier period. A 17.5%-
depreciation in Brazil's currency, the real, was the main villain
as it magnified its overseas debt costs in local terms. But
revenue also dipped and provisions for nonpayment of bills
remained high.

CONTACT:  EMBRATEL PARTICIPACOES S.A.
          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Email: Silvia.Pereira@embratel.com.br
                 invest@embratel.com.br
                  or
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010
          Email: hduncan@embratel.com.br
                 mpalm@embratel.com.br


MRS LOGISTICA: CVRD Makes Provisions for Losses
-----------------------------------------------
Companhia Vale do Rio Doce (CVRD), in accordance with the best
accounting practices and seeking to establish the highest degree
of transparency, adopts as a regular procedure in its accounting
statements under BR GAAP (Brazilian Generally Accepted Accounting
Principles) and US GAAP (Generally Accepted Accounting Principles
on the US) to make provisions for losses for all investments that
present negative shareholders' equity.

As a result, CVRD's financial statements as of June 30, 2002
recorded a loss of R$ 47 million resulting from its 17.2%
indirect stake in MRS Logistica S.A. (MRS), once this company
showed negative shareholders' equity. Of this amount, R$ 33
million accounts for a provision for losses and R$ 14 million
accounts for goodwill amortization.

Additionally, CVRD informed its wholly-owned subsidiaries Ferteco
Mineracao S.A. (Ferteco) and Belem - Administracoes e
Participacoes Ltda. (Belem), and to its shared-control subsidiary
Caemi Mineracao e Metalurgia S.A. (Caemi), that the MRS-related
accounting measure was adopted. Ferteco, Belem and Caemi own
stakes in MRS.

As stated in the December 7, 2001 press release "CVRD Finalizes
the Acquisition of CAEMI," CVRD aims at keeping Caemi as a
publicly traded company and independently managed in accordance
with the best corporate governance practices, subject to
principles of transparency and accountability. The establishment
of the provision for losses at MRS, as opposed to what was
noticed on the Brazilian press, does not indicate that CVRD has
any intention of changing Caemi's capital structure.

CONTACT:  CVRD
          Media:
          Roberto Castello Branco, +55-21-3814-4540
          castello@cvrd.com.br

          Andreia Reis, +55-21-3814-4643
          andreis@cvrd.com.br

          Barbara Geluda, +55-21-3814-4557
          geluda@cvrd.com.br

          Daniela Tinoco, +55-21-3814-4946
          daniela@cvrd.com.br

          MRS LOGISTICA S.A.
          Praia de Botafogo, 228/1201-E
          Rio de Janeiro - RJ, 22359-900
          Brazil
          Phone: 55-21-2559-4600
          Fax: 55-21-2552-2635
          E-mail: daf@mrs.com.br
          Home Page: http://www.mrs.com.br
          Contacts:
          Julio Cesar Pinto, Chief Financial Officer
          Phone: (21) 2559 4600
                     (32) 3239 3600
                     (11) 3648 8401
          Fax:     (21) 2552 2635
                     (32) 3239 3609
                     (11) 3645 2743
          E-mail: jfn@mrs.com.br

          Eduardo Cassinelli, Treasurer
          Phone: (21) 2559 4630
                     (32) 3239 3660
          Fax:     (21) 2559 4631
                      (32) 3239 3518
          E-mail: edu@mrs.com.br


TELEMAR: Alvaro Dos Santos Releases Open Letter to Shareholders
---------------------------------------------------------------
Rio de Janeiro, August 30, 2002

" After an intensive and productive period at Telemar, I think we
were able to implement important improvements in the Company to
enhance its efficiency and management processes, while
positioning Telemar for a new stage of development.

We have now a strong management team able to lead The Company to
a new stage of development, leveraging the opportunities related
to the recently announced Anatel's authorization to explore DLD,
ILD and Mobile services, and soon to operate in Region II and
III.

My professional contract with Telemar is running out, and due to
personal reasons, I've decided not to renew it. As such, I will
be leaving my current executive responsibilities and this will
result in some changes in the organization to be announced soon.
To ensure a smooth transition and due to my commitment to the
Company's results, I'll retain my responsibilities as an
effective member in the Board of Directors at TNL, TMAR and Oi.

We'll be in touch in the coming months to present Telemar's
Senior Managers and to up date the market with our Strategic
Business Plan.

I thank you very much for your support during this period of
intensive changes in the Company and expect it to be extended to
the new Management Team. "

CONTACT:  TNE- INVESTOR RELATIONS
          invest@telemar.com.br
          Phone: 55 (21) 3131 1314/1315/1316/1110

          THOMSON FINANCIAL IR
          Isabel Vieira (isabel.vieira@tfn.com)
          Richard Huber (richard.huber@tfn.com)
          Phone: 1 (212) 807 5026 / 014 / 110
          Fax: 1 (212) 509 5824



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

DISPUTADA: Sale Conflict Solution Out of Reach
-----------------------------------------------
The Chilean government and Exxon Mobil Corporation (XOM) last
week failed to agree on how to resolve tax and legal disputes
concerning the Disputada sale, Reuters reports. Authorities
suspended Exxon's US$1.3 billion deal to unload its mining asset,
Disputada de las Condes, because the plan would be exempted from
domestic taxes. Exxon agreed to sell the Chilean mining business
to South African miner Anglo-American in May and had expected to
close the deal June 30.

In the meeting attended by Exxon's executive vice president Harry
Longwell, other senior executives, and mining minister, Alfonso
Dulanto, the government asked Exxon to pay taxes on the sale
profits. The amount is about US$40 million to US$300 million,
depending on the sale structure, the report says.

According to the mining minister, there are several tax
structures under the country's foreign investment law for Exxon
to choose from.  He also expressed belief "that any formula that
implies not paying taxes is a transgression of the spirit of the
law." Dulanto though is hopeful Exxon would consider the request,
and that an accord could soon be reached.

Exxon reportedly did not comment on the meeting. The parties are
scheduled to meet again within about two weeks.

The principal assets of Disputada include Los Bronces copper
mine, El Soldado copper mine and the Chagres smelter, all located
in Chile's central region. Disputada's two copper mines produced
252,000 tonnes of copper in 2001. Chile is the world's No.1
copper producer.

CONTACT:  EXXONMOBIL (U.S.)
          Cynthia Langlands
          Phone: 972/444-1107

          DISPUTADA (CHILE)
          Guillermo Garcia
          Phone: 562/230-6488


ENAMI: Approves Efficiency Plan, Cost Cutting Measures
------------------------------------------------------
Chile's state minerals company Enami gave its blessing to proceed
with an efficiency and improvement plan, says Business News
Americas. The plan has three main parts.

The first deals with Enami's long-term strategy to develop medium
and small-scale miners. The second involves splitting the
production and development operations of the Company to allow
greater transparency, and the third entails increasing Enami's
value by introducing cost-cutting measures worth US$32 million.

According to mining minister Alfonso Dulanto, approval of the
plan will pave the way for the government to create a plan for
restructuring the Company's crippling debt. Once President
Ricardo Lagos receives the plan to overhaul Enami's organization
and management, the finance ministry will work on a formula to
settle the Company's debts, Dulanto said.

Enami reportedly has debts totaling US$480 million and must reach
an agreement with creditor banks to renegotiate some US$240
million of short-term debts in September. The government,
according to reports, has ruled out a bailout for the Company.
However, reports related that the government is considering how a
part of the debt could be restructured with the state acting as
guarantor for US$100 million of the total. One of the options
being considered by the finance ministry to meet the September
deadline is to issue bonds.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

BBVA BANCO GANADERO: Fitch Assigns Negative Rating Outlook
----------------------------------------------------------
Fitch Ratings revised its Rating Outlook on the ratings of BBVA
Banco Ganadero from Stable to Negative.

Ratings affected:

--Long-term 'BB';
--Short-term 'B';

(Local Currency)
--Long-term 'BBB-';
--Short-term 'F3';

The action followed a similar action taken on Colombia's
sovereign ratings, as the ratings in question are at the
sovereign ceiling.

Fitch Ratings revised its Rating Outlook to Negative from Stable
on the Republic of Colombia's sovereign ratings, citing a
deterioration in external financing conditions facing the Andean
nation and rising government debt levels. Fitch will closely
monitor whether policy actions planned by the Uribe
administration, which took office on August 7, will result in
substantive fiscal deficit reduction and a return of investor
confidence and economic growth. Colombia's sovereign ratings
remain at 'BB' for foreign currency obligations and 'BBB-' for
local currency (Colombian peso) obligations.

External financing conditions for emerging market sovereigns -
especially in Latin America-- have deteriorated in recent months.
In this environment, concerns about Colombia's security problems,
muted growth prospects, and widening fiscal deficits have driven
the spread on the benchmark global bond 270 basis points higher
and depreciated the currency by 14% since the May election,
raising Colombia's external financing burden.

Colombia has sizable external financing needs of US$7.6 bln in
2003, or 42% of expected CXR (current external receipts, a broad
measure of exports), which compares unfavorably with most other
'BB'-rated sovereigns. Likewise, net public external debt to CXR
at 71% is higher than most 'BB'-rated sovereigns. In recent
years, the Colombian government has increased its use of external
sources of financing, and by May of this year, 27% of public debt
constituted externally sourced market debt. Given its sizable
external financing needs, Colombia remains vulnerable to a
further deterioration in market conditions emanating, for
example, from Brazil. Furthermore, with more than 50% of exports
directed to the US market, Colombia is exposed to the risk of
continued sluggish conditions there.

Persistent fiscal deficits and slow economic growth have
underpinned an increase in Colombia's gross general government
debt to an expected 55% of GDP at year end from 36% in 1998,
versus a median level for 'BB' peers of 45% in 2002. Net of
social security assets and debt held by other public sector
entities, government debt measures 47% of GDP. In order to
stabilize debt at current levels, authorities will have to seize
on their strong mandate from the May elections and enact
substantive fiscal and pension reform. Their agenda will be
especially challenging given the need for additional spending on
security and social programs in order to support social stability
and a more attractive environment for investment.

Fitch's analysis of debt dynamics indicates that a primary
surplus (before interest expenses) of 1.5% of GDP at the general
government level would be necessary over the medium term to
stabilize the debt-to-GDP ratio at current levels. In 2001,
general government accounts were in balance before interest
costs. A fiscal adjustment of 1.5% of GDP could engender a
virtuous cycle of lower borrowing costs, improved private sector
confidence, currency stability and stronger economic growth.
Conversely, if the adjustment falls short, debt would continue
its rise, further weakening sovereign creditworthiness.

Early information from authorities on next year's budget
assumptions suggest that it may meet the needed 1.5% primary
surplus, but considerable obstacles to its passage remain. Gross
public sector financing requirements for next year would still
exceed a substantial US$7 billion, indicating potential
refinancing risk.

Should the new administration succeed in passing a budget that
supports medium-term debt sustainability while funding necessary
security and social program expenditures, and if new policies
engender greater private sector confidence that supports both
improved growth prospects and balance of payments stability, then
sovereign creditworthiness could stabilize. Alternatively, if the
budget falls short of the necessary primary surplus, or if the
government is unable to deliver improved security, the ratings
could be downgraded.

The Individual and Support ratings assigned to BBVA Banco
Ganadero were unaffected by this Rating action.

CONTACT:  FITCH RATINGS
          Ricardo Chaves, 212/908-0606,
          Linda Hammel, 212/908-0303, or
          Peter Shaw, 212/908-0553, New York

          Media Relations:
          Matt Burkhard, 212/908-0540, New York


INSTITUTO DE FOMENTO: Outlook Goes From Stable To Negative
----------------------------------------------------------
Fitch Ratings revised its Rating Outlook on the ratings of
Instituto de Fomento Industrial from Stable to Negative.

Ratings affected:

--Long-term 'BB';
--Short-term 'B';

The action followed a similar action taken on Colombia's
sovereign ratings, as the ratings in question are at the
sovereign ceiling.

Fitch Ratings revised its Rating Outlook to Negative from Stable
on the Republic of Colombia's sovereign ratings, citing a
deterioration in external financing conditions facing the Andean
nation and rising government debt levels. Fitch will closely
monitor whether policy actions planned by the Uribe
administration, which took office on August 7, will result in
substantive fiscal deficit reduction and a return of investor
confidence and economic growth. Colombia's sovereign ratings
remain at 'BB' for foreign currency obligations and 'BBB-' for
local currency (Colombian peso) obligations.

External financing conditions for emerging market sovereigns -
especially in Latin America-- have deteriorated in recent months.
In this environment, concerns about Colombia's security problems,
muted growth prospects, and widening fiscal deficits have driven
the spread on the benchmark global bond 270 basis points higher
and depreciated the currency by 14% since the May election,
raising Colombia's external financing burden.

Colombia has sizable external financing needs of US$7.6 bln in
2003, or 42% of expected CXR (current external receipts, a broad
measure of exports), which compares unfavorably with most other
'BB'-rated sovereigns. Likewise, net public external debt to CXR
at 71% is higher than most 'BB'-rated sovereigns. In recent
years, the Colombian government has increased its use of external
sources of financing, and by May of this year, 27% of public debt
constituted externally sourced market debt. Given its sizable
external financing needs, Colombia remains vulnerable to a
further deterioration in market conditions emanating, for
example, from Brazil. Furthermore, with more than 50% of exports
directed to the US market, Colombia is exposed to the risk of
continued sluggish conditions there.

Persistent fiscal deficits and slow economic growth have
underpinned an increase in Colombia's gross general government
debt to an expected 55% of GDP at year end from 36% in 1998,
versus a median level for 'BB' peers of 45% in 2002. Net of
social security assets and debt held by other public sector
entities, government debt measures 47% of GDP. In order to
stabilize debt at current levels, authorities will have to seize
on their strong mandate from the May elections and enact
substantive fiscal and pension reform. Their agenda will be
especially challenging given the need for additional spending on
security and social programs in order to support social stability
and a more attractive environment for investment.

Fitch's analysis of debt dynamics indicates that a primary
surplus (before interest expenses) of 1.5% of GDP at the general
government level would be necessary over the medium term to
stabilize the debt-to-GDP ratio at current levels. In 2001,
general government accounts were in balance before interest
costs. A fiscal adjustment of 1.5% of GDP could engender a
virtuous cycle of lower borrowing costs, improved private sector
confidence, currency stability and stronger economic growth.
Conversely, if the adjustment falls short, debt would continue
its rise, further weakening sovereign creditworthiness.

Early information from authorities on next year's budget
assumptions suggest that it may meet the needed 1.5% primary
surplus, but considerable obstacles to its passage remain. Gross
public sector financing requirements for next year would still
exceed a substantial US$7 billion, indicating potential
refinancing risk.

Should the new administration succeed in passing a budget that
supports medium-term debt sustainability while funding necessary
security and social program expenditures, and if new policies
engender greater private sector confidence that supports both
improved growth prospects and balance of payments stability, then
sovereign creditworthiness could stabilize. Alternatively, if the
budget falls short of the necessary primary surplus, or if the
government is unable to deliver improved security, the ratings
could be downgraded.

The Individual and Support ratings assigned to Instituto de
Fomento Industrial were unaffected by this Rating action.

CONTACT:  FITCH RATINGS
          Ricardo Chaves, 212/908-0606,
          Linda Hammel, 212/908-0303, or
          Peter Shaw, 212/908-0553, New York

          Media Relations:
          Matt Burkhard, 212/908-0540, New York


SANTANDER COLOMBIA: Fitch Changes Rating Outlook to Negative
------------------------------------------------------------
Fitch Ratings revised its Rating Outlook on the ratings of Banco
Santander Colombia from Stable to Negative.

Ratings affected:

--Long-term 'BB';
--Short-term 'B';

The action followed a similar action taken on Colombia's
sovereign ratings, as the ratings in question are at the
sovereign ceiling.

Fitch Ratings revised its Rating Outlook to Negative from Stable
on the Republic of Colombia's sovereign ratings, citing a
deterioration in external financing conditions facing the Andean
nation and rising government debt levels. Fitch will closely
monitor whether policy actions planned by the Uribe
administration, which took office on August 7, will result in
substantive fiscal deficit reduction and a return of investor
confidence and economic growth. Colombia's sovereign ratings
remain at 'BB' for foreign currency obligations and 'BBB-' for
local currency (Colombian peso) obligations.

External financing conditions for emerging market sovereigns -
especially in Latin America-- have deteriorated in recent months.
In this environment, concerns about Colombia's security problems,
muted growth prospects, and widening fiscal deficits have driven
the spread on the benchmark global bond 270 basis points higher
and depreciated the currency by 14% since the May election,
raising Colombia's external financing burden.

Colombia has sizable external financing needs of US$7.6 bln in
2003, or 42% of expected CXR (current external receipts, a broad
measure of exports), which compares unfavorably with most other
'BB'-rated sovereigns. Likewise, net public external debt to CXR
at 71% is higher than most 'BB'-rated sovereigns. In recent
years, the Colombian government has increased its use of external
sources of financing, and by May of this year, 27% of public debt
constituted externally sourced market debt. Given its sizable
external financing needs, Colombia remains vulnerable to a
further deterioration in market conditions emanating, for
example, from Brazil. Furthermore, with more than 50% of exports
directed to the US market, Colombia is exposed to the risk of
continued sluggish conditions there.

Persistent fiscal deficits and slow economic growth have
underpinned an increase in Colombia's gross general government
debt to an expected 55% of GDP at year end from 36% in 1998,
versus a median level for 'BB' peers of 45% in 2002. Net of
social security assets and debt held by other public sector
entities, government debt measures 47% of GDP. In order to
stabilize debt at current levels, authorities will have to seize
on their strong mandate from the May elections and enact
substantive fiscal and pension reform. Their agenda will be
especially challenging given the need for additional spending on
security and social programs in order to support social stability
and a more attractive environment for investment.

Fitch's analysis of debt dynamics indicates that a primary
surplus (before interest expenses) of 1.5% of GDP at the general
government level would be necessary over the medium term to
stabilize the debt-to-GDP ratio at current levels. In 2001,
general government accounts were in balance before interest
costs. A fiscal adjustment of 1.5% of GDP could engender a
virtuous cycle of lower borrowing costs, improved private sector
confidence, currency stability and stronger economic growth.
Conversely, if the adjustment falls short, debt would continue
its rise, further weakening sovereign creditworthiness.

Early information from authorities on next year's budget
assumptions suggest that it may meet the needed 1.5% primary
surplus, but considerable obstacles to its passage remain. Gross
public sector financing requirements for next year would still
exceed a substantial US$7 billion, indicating potential
refinancing risk.

Should the new administration succeed in passing a budget that
supports medium-term debt sustainability while funding necessary
security and social program expenditures, and if new policies
engender greater private sector confidence that supports both
improved growth prospects and balance of payments stability, then
sovereign creditworthiness could stabilize. Alternatively, if the
budget falls short of the necessary primary surplus, or if the
government is unable to deliver improved security, the ratings
could be downgraded.

The Individual and Support ratings assigned to Banco Santander
Colombia were unaffected by this Rating action.

CONTACT:  FITCH RATINGS
          Ricardo Chaves, 212/908-0606,
          Linda Hammel, 212/908-0303, or
          Peter Shaw, 212/908-0553, New York

          Media Relations:
          Matt Burkhard, 212/908-0540, New York



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

BITAL: Atlantico Integration Delays HSBC Takeover
-------------------------------------------------
Luis Miguel Vilatela, director of Hong Kong and Shanghai Banking
Corporation (HSBC) Mexico, announced that the British bank is
ready to take control of the Mexican bank Bital. However,
Vilatela said that the Mexican bank still needs to close its
agreements with the Bank Savings Protection Institute (IPAB) to
integrate Banco del Atlantico, adding that HSBC will not take
part in the talks with IPAB.

"The shareholders of Bital will take care of that process," said
the executive.

When asked how much HSBC would contribute to Bital's
capitalization, Vilatela said, "the only thing I can say is that
the official figure reaches US$450 million for the moment."
However, he added, "We will ensure that the institution fulfills
the capital requirements."

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

          HSBC HOLDING PLC
          10 Lower Thames St.
          London, EC3R 6Ae
          Phone: 44-20-7260-0500
          Home Page: http://www.hsbc.com
          Contact:
          Keith R.Whitson, CEO


CFE: Tender for $1.07B El Cajon Project Takes Place This Month
--------------------------------------------------------------
Alfredo Elias Ayub, president of Comision Federal De Electricidad
(CFE), revealed that the Mexican state power company is ready to
re-launch a tender for the MXN10.6-billion (US$1.07 billion),
750MW El Cajon hydro project in Nayarit state this month, reveals
Business News Americas.

The government will solicit bids under the terms of the Pidiregas
capital expenditure financing scheme, which was set up to allow
private investment in infrastructure projects for CFE and state
oil monopoly Pemex.

The plant, which will operate with two 375MW vertical Francis
turbines, will serve to regulate flow at Mexico's largest hydro
plant, Aguamilpa, 60km downstream from the proposed El Cajon
site, which in turn is 47km from the city of Tepic on the
Santiago River.

Estimates put the Santiago basin's generation capacity at
4,300MW; right now only 32% of generating capacity is harnessed
through six plants.

The tender was originally scheduled for June 27. However, the CFE
delayed the process to give the country's comptroller time to
review bidding rules. Construction was originally scheduled to
begin end-2002, with operations planned for early 2007.

CFE is reported to be currently in need of help to carry out its
investment program in 2011. Industry-wide upgrade is said to be
required in order for the company to meet the MXN560 million
(US$57.6 billion) it needs in the coming decade.

CONTACT:  COMISION FEDERAL DE ELECTRICIDAD
          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance


FAR-BEN: Ahumada Considers Bond Issue To Back Purchase
------------------------------------------------------
Jose Codner, president of Farmacias Ahumada SA, disclosed that
the Chilean pharmacy chain is considering to issue about US$45
million of domestic bonds soon to finance the purchase of
Mexico's largest pharmacy, Far-Ben SA, Bloomberg relates.

Simultaneously, Far-Ben bondholders also agreed to a plan to swap
their debt for shares, extend the maturity on the debt or receive
cash for discounted bonds to avert a default and reduce Far-Ben's
debt of about $90 million, Codner said in an interview. The
agreement with Far-Ben's bondholders will reduce the Monterrey-
based chain's interest expenses, helping it to end losses in four
of the past five quarters, Codner said.

Completion of the purchase of Far-Ben, expected in the next few
months, required the bondholder agreement as well as a review of
the Mexican company's finances, which is underway, he said.


FAR-BEN: Final Decision on Ahumada's Offer Expected Soon
--------------------------------------------------------
Farmacias Benavides (Far-Ben) was supposed to decide September 2
whether to accept Chilean company Farmacias Ahumada's MXN500-
million (US$50.3 million) offer for 51% of the Nuevo Leon
pharmacy chain, reports Mexico City daily El Universal. Victor
Trevi¤o, director of investor relations at Far-Ben, welcomes the
offer as he considers it the only option to save the Company from
its ailing financial condition.

"The proposal seeks to preserve the patrimony of the investors,"
Trevi¤o said.

Ahumada's offer comes among allegations of treachery from
minority investors against the company. Some 16 minority
investors in Far-Ben claimed that they have been betrayed by the
company and their financial representative, BBVA Bancomer. They
claimed they haven't received payments and that Benavides is
offering smaller amounts and even the retention of their
investments. The group owns less than 10% of the debt bonds of
Far Ben.

Far-Ben had to pay obligations of some MXN700 million (US$70.5
million) on June 13, said Genaro Hern ndez Santaolaya, lawyer for
the 16 investors. However, according to Mr. Santaolaya, the
payment was not made and instead, Far-Ben offered 75% of the
money offered for the expiration of bonds from 1997 or a seven-
year extension for recovering their capital. The investors were
not pleased and, despite offers of other risk-free long-term
investments, they merely want their money, said Hern ndez
Santaolaya.


FAR-BEN: FASA Reports Improved Consolidated Results for 1H02
------------------------------------------------------------
Farmacias Ahumada S.A (Santiago Stock Exchange: FASA), the
largest pharmacy chain in Chile, Peru and southern Brazil,
reports consolidated results for the first half of 2002, the
period ending on June 30.

Consolidated sales in the first half of 2002 grew by 11% compared
with same period of 2001, from $136,268 million pesos (US$193.7
million) to $150,849 million pesos (US$214.4 million), reflecting
continuous growth in every country -- 7% in Chile, 19% in Brazil
and 20% in Peru. The largest operation continuous to be Chile,
representing 74% of consolidated sales with 201 stores, followed
by Brazil with 16% of total sales with 109 pharmacies, and Peru
generating 10% of the sales with 79 points of sale.

Income through June 30, 2002 was $2,743 million pesos (US$3.9
million), which, compared with the $4,211 million pesos (US$6.0
million) reported for the same period of last year, show a 35%
decline, representing after taxes of 1.8% of sales versus 3.1% in
the same period last year. This decrease is attributed to strong
growth in square meter floor space thanks to the opening of 65
pharmacies in the last 12 months, a 20% increase in the number of
stores and 27% in the square meter surface. These stores are
undergoing sales maturation, meaning more expenses for the
overall business.

EBITDA for the first six months was $5,820 million pesos (US$8.3
million), equivalent to 3.9% of sales, which, compared with that
reported for the same period in 2001 -- $7,681 million pesos
(US$10.9 million) or 5.6% of sales -- represented a decrease of
24%. This situation reflects a greater expense associated with an
increase in the number of stores.

FASA is present in Brazil, Chile and Peru through 389 pharmacies,
20 of which were opened since January. These pharmacies served 36
million customers on more than 60,000 square meters of sales
floor.

On August 22, notice was given of the execution of an Agreement
of Understanding with Farmacias Benavides, under whose terms was
established the acquisition of the latter Company, Mexico's main
pharmacy chain. With this operation, Farmacias Ahumada S.A would
become the largest company of its kind in Latin America, with
over 1,000 pharmacies in 4 countries and annual sales of more
than US$1 billion.

Farmacias Ahumada S.A.

Consolidated Income Statement

In US$ Million as June 2002
Income Statement        2002 % Sales     2001  % Sales   % Var
Revenues                214.4  100.0%     193.7  100.0%   10.7%
Gross margin             53.3   24.8%      49.6   25.6%    7.4%
Selling & Adm. Expenses (48.5)  -22.6%    (41.5)  -21.4%   16.9%
Operating income          4.8    2.6%       8.1    4.2%  -40.9%
Non-operating income     (0.9)   -0.4%     (1.3)   -0.7%  -32.2%
Income for the period     3.9    1.8%       6.0    3.1%  -34.9%
Shares (Millions)       150.0             150.0
Earnings per share (US$)  0.026             0.040          -34.9%
EBITDA                    8.3    3.9%      10.9    5.6%  -24.2%
EBITDA per share (US$)    0.055             0.073          -24.2%

Balance Sheet             2002 % Sales      2001 % Sales   % Var

Current assets            103.8              94.2           10.1%
Fixed assets               51.9              40.9           26.8%
Other assets               34.3              33.1            3.6%
Total assets              190.0             168.3           12.9%
Current liabilities        91.1              73.2           24.4%
Long-Term liabilities       9.6              10.3           -6.9%
Stockholders' Equity & Min.
  Int.                     89.2              84.7            5.3%
Total Liabilities and
  Equity                  190.0             168.3           12.9%

Operation                 2002  % Sales     2001 % Sales   % Var

Pharmacies                  389                324
20.1%
Selling Space
  (sq. Meters)           60,540             47,641
27.1%

CONTACT:  FARMACIAS AHUMADA S.A. (Chile)
          Alejandro Rosemblatt, Corporate Finance Manager
          011-56-2-661-9620
          arosemblatt@fasa.ci
          Web site: http://www.fasa.cl

          FARMACIAS BENAVIDES, IN MEXICO
          Enrique Villareal, Finance Director
          Phone: 011- 52-81-8399930
          E-mail: evillareal@benavides.com.mx/


NII HOLDINGS: US Trustee Balks at Delloitte & Touche Retention
--------------------------------------------------------------
Donald F. Walton, the Acting United States Trustee for Region 3
objects to NII Holdings, Inc.'s application to employ Deloitte &
Touche LLP as Independent Accountants and Auditors, and Tax
Consultants.

The UST objects to Deloitte's provision of certain of the Tax
Services (specifically, the "consultation assistance" and "formal
tax opinions") and all of the Additional Services. Mr. Walton
believes that Deloitte should not be providing audit and
consulting services to the Debtors.  The UST further stresses
that Deloitte should not be permitted to perform a combination of
attest and non-attest services in a bankruptcy case when the
propriety of such a combination of services outside of bankruptcy
is now called into question by accounting professionals.

The Debtors' Application asks for the Court's prior approval of
Deloitte's retention to provide certain tax preparation and
reorganization advisory services before the terms have been
memorialized in an engagement letter and before a notice of such
terms has been provided to creditors. Mr. Walton argues that the
Court should refrain from approving such services until agreement
between the Debtors and Deloitte have been memorialized.

Moreover, the Debtors indicate that they paid Deloitte
approximately $334,300 during the 90-day period prior to the
bankruptcy filing. Deloitte has not disclosed sufficient
information to enable the UST and the Court to determine whether
these payments were preferential transfers under 11 U.S.C.
Section 547.  The Trustee suggests that Deloitte should first
provide copies of all engagement letters under which the payments
were made and details on the manners of payment.

Deloitte indicates that it is prepared to waive its prepetition
claim of $15,000 "if necessary" so the retention will be
approved. The UST points out that Deloitte has no discretion
regarding the waiver of its pre-petition claim if it wants to be
retained, as such waiver would be a condition of its employment.

Additionally, according to Mark E. Wallis in his affidavit,
Deloitte has provided "a variety of services including audit and
tax services" to Nextel Communications, Inc. The UST cannot
evaluate whether a conflict of interest exists until Deloitte
provides additional information detailing the services provided.

NII Holdings, Inc., along with its wholly-owned non-debtor
subsidiaries, provides wireless communication services targeted
at meeting the needs of business customers in selected
international markets, including Mexico, Brazil, Argentina and
Peru. The Company filed for chapter 11 bankruptcy protection on
May 24, 2002. Daniel J. DeFranceschi, Esq., Michael Joseph
Merchant, Esq. and Paul Noble Heath, Esq. at Richards, Layton &
Finger represent the Debtors in their restructuring efforts. When
the Company filed for protection from its creditors, it listed
$1,244,420,000 in total assets and $3,266,570,000 in total debts.

To see financial statements:
http://bankrupt.com/misc/NIIHOLDINGS.htm

CONTACT:  NII Holdings Inc.
          Claudia Restrepo
          Phone: +1-305-779-3086
          E-mail: claudia.restrepo@nextel.com

LEGAL REPRESENTATIVE:

          RICHARDS, LAYTON & FINGER, P.A.
          One Rodney Square
          P. O. Box 551
          Wilmington, Delaware 19899
          Phone: (302) 651-7700
          Fax: (302) 651-7701
          Home Page: http://www.rlf.com/welcome2.htm
          Contact:
          Daniel J DeFranceschi
          Phone:  (302) 651-7816
          Fax:  (302) 784-7090
          E-mail:  defranceschi@rlf.com

          KILPATRICK STOCKTON LLP
          1100 Peachtree St., Ste. 2800
          Atlanta, GA 30309-4530
          Phone: 404-815-6500
          Fax: 404-815-6555
          http://www.kilstock.com
          Contacts:
          William H. Brewster, Managing Partner
          Paul Bellows, COO
          Brooke Sey, Director of Finance

          SAUL EWING LLP
          Centre Square West
          1500 Market Street, 38th FLoor
          Philadelphia, PA 19102-2186


ROHN INDUSTRIES: Amends Credit, Forbearance Agreements
-------------------------------------------------------
ROHN Industries, Inc. (Nasdaq: ROHN), a global provider of
infrastructure equipment for the telecommunications industry,
announced Friday that it has entered into an amendment to its
credit and forbearance agreements with its bank lenders.  The
amendment to the credit agreement, among other things, modifies
the definition of the borrowing base to restrict the Company's
access to $1,500,000 of borrowing capacity and imposes certain
additional information requirements on ROHN.

Under the amendment to the forbearance agreement, the bank
lenders have agreed to extend until October 31, 2002 the period
during which they will forbear from enforcing any remedies under
the credit agreement arising from ROHN's breach of financial
covenants contained in the credit agreement.  If these financial
covenants and related provisions of the credit agreement are not
amended by October 31, 2002, and the bank lenders do not waive
any defaults by that date, the bank lenders will be able to
exercise any and all remedies they may have in the event of a
default.

ROHN Industries, Inc. is a leading manufacturer and installer of
telecommunications infrastructure equipment for the wireless and
fiber optic industries.  Its products are used in cellular, PCS,
fiber optic networks for the Internet, radio and television
broadcast markets.  The company's products include towers,
equipment enclosures, cabinets, poles and antennae mounts, as
well as design and construction services. ROHN has manufacturing
locations in Peoria, Ill.; Frankfort, Ind.; and Bessemer, Ala.,
along with a sales office in Mexico City, Mexico.

CONTACT:  ROHN INDUSTRIES, INC.
          Al Dix, Chief Financial Officer
          Tel. +1-309-633-6809
          al.dix@rohnnet.com
          Web site: http://www.rohnnet.com



              ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *