/raid1/www/Hosts/bankrupt/TCRLA_Public/030108.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, January 8, 2003, Vol. 4, Issue 5

                           Headlines



A R G E N T I N A

ARGENTINE BANKS: Viability Teeters on Fee-Based Income
AT&T LATIN AMERICA: Parent Selling Stake To Southern Cross


B E R M U D A

ANNUITY & LIFE: Internal Transfers Leave Fitch Ratings Unchanged
ANNUITY & LIFE: Scott + Scott Files Class Action Lawsuit
ANNUITY & LIFE: Chitwood & Harley Seeks Restitution in Suit
GLOBAL CROSSING: Restructuring Plan Gets Bermuda Court Approval
TYCO INTERNATIONAL: New $1.5B Facility Eases Liquidity Concerns
TYCO INTERNATIONAL: Files $3.25B Convertible Debenture Offering


B R A Z I L

AES CORP.: `BB' Rating on Bank Facility Indicates Confidence
CELESC: Completes Management Shake Up
GILAT: Announces Major LatAm Wins; Debt Plan Nears Closing
GLOBOPAR: Moody's Cuts Ratings After Missing Interest Payment
INTELIG: Forcasts Savings from Lowered Joint Billing Fees
VARIG: Regulators Warn of Earnings Restatement; Equity Trimmed


J A M A I C A

JUTC: Will Seek Government Financing to Stay Afloat


M E X I C O

CNI: Conflict Continues; Government Slammed For Lack of Action
SATMEX: Satellite Delayed from February to May


U R U G U A Y

URUGUAYAN BANKS: Government Says Viable Replacement Opens Soon
         

V E N E Z U E L A

* Liquidity Fears Swell; Bonds Fall To 5-Month Record Low


     - - - - - - - - - -

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

ARGENTINE BANKS: Viability Teeters on Fee-Based Income
------------------------------------------------------
Argentine banks now depend on fee-based income after lending is
paralyzed, reports Business News Americas. Rafael Ber, a partner
at local capital markets consultancy Argentine Research said even
large private banks such as Banco Galicia and BBVA Banco Frances
seeks to recover 70%-80% of their operating costs from fee-based
income.

According to local daily El Clarin, the country's banks increased
fees by 15%-20% last year, due the ongoing economic slump. This
year, fund transfers to other financial institutions are no
longer free of charge in some banks. Both state and private banks
have raised their fees, though the increase in state banks were
at a lesser extent, said Mr. Ber.

According to the BNAmericas, quite a number of banks charge up to
ARS39 pesos (US$11.6) as monthly maintenance fees for checking
and savings accounts, credit lines, and credit cards. Mr. Ber
added he expects the maintenance fees should come down soon.


AT&T LATIN AMERICA: Parent Selling Stake To Southern Cross
----------------------------------------------------------
AT&T Corp., the largest U.S. long-distance telephone provider,
announced Monday that it reached an agreement with Southern Cross
Group LLC to sell its 69% stake in AT&T Latin America Corp. for
US$1,000. In a filing with the U.S. Securities and Exchange
Commission, the Company said that the payment would be in cash.

Under a non-binding letter of intent, AT&T will sell all of its 8
million Class A shares and 73 million Class B shares of AT&T
Latin America. If the deal does not close by April 15, AT&T
agreed to pay Southern Cross $750,000.

Southern Cross plans to keep AT&T Latin America operating as a
going concern and will meet the obligations with existing
customers, the filing added.

Earlier on Monday, AT&T said it would take a US$1.1 billion
charge in the fourth quarter to write down the value of its AT&T
Latin America investment. The charge would reduce earnings by
about $1.40 a share.

AT&T Latin America, which provides data services in Brazil, Peru,
Colombia, Chile and Argentina, has seen its net loss grow to
US$532.3 million in the third quarter of 2002 from US$79.7
million a year earlier. It has warned it may file for bankruptcy
and hired AlixPartners as its financial adviser.

To see financial statements: http://bankrupt.com/misc/AT&T.htm

CONTACT:  Media Relations
          Jim McGann
          +1-202-689-6337
          james.mcgann@attla.com

          Lydia Rodriguez
          +1-202-689-6323
          lydia.rodriguez@attla.com

          Investor Relations
          Catherine Castro
          +1-202-689-6336
          catherine.castro@attla.com

          URL: http://www.attla.com



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

ANNUITY & LIFE: Internal Transfers Leave Fitch Ratings Unchanged
----------------------------------------------------------------
The January 2, 2003, announcement by Annuity & Life Re
(Holdings), Ltd. that its subsidiary, Annuity & Life Reassurance,
Ltd. (ANR) has transferred certain blocks of life reinsurance
business to a subsidiary of XL Capital Ltd. (XL) has no immediate
effect on Fitch's 'CCC' rating of ANR. The rating remains on
Rating Watch Evolving.

In its press release, the company announced that five blocks of
life reinsurance business were transferred to XL, which entered
into a 50% quota share reinsurance agreement with ANR on four of
the transferred blocks. The company also announced that its
collateral funding facility has been terminated, and that amounts
owed under this arrangement, which were reported at $147 million
as of September 30, 2002, were repaid.

The downgrade of ANR's insurer financial strength rating to 'CCC'
from 'BBB+' on November 22, 2002, reflected Fitch's overall
opinion of ANR's constrained liquidity position and financial
flexibility. At that time, Fitch expressed its concern that there
was a significant risk that ANR would be unable to satisfy its
obligations to accept additional ceded business under its
existing reinsurance treaties due to an inability to post
adequate collateral. The company disclosed in its January 2, 2003
press release that it was unable to satisfy its obligation to
post collateral related to at least one of its reinsurance
treaties by year-end 2002.

Being Bermuda-based, ANR is an unauthorized reinsurer in the
U.S., and like all unauthorized reinsurers, it must post
collateral to the benefit of its U.S. ceding companies per U.S.
regulatory requirements. Such collateral can be provided in the
form of trust deposits and/or letters of credit. Fitch's current
rating of ANR continues to reflect Fitch's view that ANR's
business model has become overly dependent on the company's
ability to obtain credit in various forms to allow it to provide
collateral to its U.S.-based ceding companies.

ANR's management has disclosed that it continues to assess
capital raising alternatives and negotiate the reduction in its
collateral requirements. As these negotiations progress, Fitch
will continue to assess ANR's financial position to determine
whether or not the company has placed itself in a position to
comply with its obligations under its reinsurance treaties.

The Rating Watch Evolving status of ANR's rating reflects Fitch's
belief that if ANR is successful in improving its liquidity
position and financial flexibility, a large part of which entails
bringing the company within the terms of its reinsurance
treaties, the company will be reviewed for a possible upgrade. On
the other hand, if ANR experiences a significant worsening of its
liquidity position, additional downgrades are possible.

CONTACT:  Fitch Ratings
          Bradley S. Ellis, CFA 1-312-368-2089
          Julie A. Burke, CPA, CFA 1-312-368-3158


ANNUITY & LIFE: Scott + Scott Files Class Action Lawsuit
--------------------------------------------------------
Scott + Scott, LLC, a Connecticut-based law firm, announces that
it commenced the first class action lawsuit in the United States
District Court, District of Connecticut on behalf of purchasers
of the securities of Annuity and Life Re (Holdings), Ltd.
("Annuity and Life" or the "Company") (NYSE:ANR) during the
period from February 12, 2001 through November 19, 2002,
inclusive (the "Class Period"), against defendants Annuity and
Life, Frederick S. Hammer, Lawrence S. Doyle and John F. Burke.

The Complaint alleges that defendants violated the federal
securities laws by issuing a series of materially false and
misleading statements and/or concealing material adverse facts
throughout the Class Period, thereby artificially inflating the
price of the Company's securities. Throughout the Class Period,
the Company reported strong revenue growth and stable projected
earnings. The Complaint alleges, however, that defendants failed
to disclose and/or misrepresented the following adverse facts,
among others: (i) that the Company had failed to properly account
for embedded derivatives contained in its annuity reinsurance
contracts in 2001; (ii) that, since at least 2001, the Company
had understated a portion of its liabilities and expenses; (iii)
that the Company lacked adequate internal controls and was
therefore unable to ascertain the true financial condition of the
Company; and (iv) that as a result, the value of the Company's
balance sheet and financial results were materially overstated at
all relevant times.

On November 19, 2002, the last day of the Class Period, the
Company announced that it would be restating its financial
results for 2000, 2001 and the first and second quarters of 2002
due to the Company having improperly accounted for embedded
derivatives contained in its annuity reinsurance contracts during
those years. The Company's stock plummeted 44% upon this
revelation.

          David R. Scott, Esq., 800/404-7770
          Email: drscott@scott-scott.com
          Address:  Scott + Scott, LLC
                    108 Norwich Avenue
                    Colchester, Connecticut 06415
          Fax: 860/537-4432

          Neil Rothstein, Esq., 800/404-7770
          Email: nrothstein@scott-scott.com
          Address:  Scott + Scott, LLC
                    108 Norwich Avenue
                    Colchester, Connecticut 06415
          Fax: 860/537-4432


ANNUITY & LIFE: Chitwood & Harley Seeks Restitution in Suit
-----------------------------------------------------------
Chitwood & Harley filed a class action lawsuit in the United
States District Court, District of Connecticut, on behalf of
purchasers of the securities of Annuity and Life Re (Holdings),
Ltd. ("Annuity and Life") (NYSE:ANR) between February 12, 2001
and November 19, 2002 (the "Class Period"), against defendants
Annuity and Life and certain of its officers and directors.

The Complaint alleges that defendants violated the federal
securities laws by issuing a series of materially false and
misleading statements and/or concealing material adverse facts
throughout the Class Period thereby artificially inflating the
price of the Company's securities.

Specifically, the Complaint alleges that defendants failed to
disclose and/or misrepresented the following adverse facts, among
others: (i) that the Company had failed to properly account for
embedded derivatives contained in its annuity reinsurance
contracts in 2001; (ii) that, since at least 2001, the Company
had understated a portion of its liabilities and expenses; (iii)
that the Company lacked adequate internal controls and was
therefore unable to ascertain the true financial condition of the
Company; and (iv) that as a result, the value of the Company's
balance sheet and financial results were materially overstated at
all relevant times.

On November 19, 2002, the last day of the Class Period, the
Company announced that it was going to restate its financial
results for 2000, 2001, and the first and second quarters of 2002
due to the Company having improperly accounted for embedded
derivatives contained in its annuity reinsurance contracts during
those years. The Company's stock plummeted 44% upon this
revelation.

CONTACT:  Chitwood & Harley, Atlanta
          Lauren S. Antonino, Esq.
          Jennifer L. Morris, Director of Investor Relations
          1-888-873-3999 or 404-873-3900
          jlm@classlaw.com
          Address: Chitwood & Harley
                   1230 Peachtree Street, Suite 2300
                   Atlanta, Georgia 30309


GLOBAL CROSSING: Restructuring Plan Gets Bermuda Court Approval
---------------------------------------------------------------
Global Crossing Ltd., which filed one of the largest Chapter 11
bankruptcies in the United States last January with debts of
US$12.4 billion, obtained Bermuda's Supreme Court's approval for
its restructuring plan. Reuters reiterated that the plan was
initially approved by the United States Bankruptcy Court in
Manhattan on December 26.

A spokeswoman for Global Crossing and officials of accounting
firm KPMG, which is overseeing the Company's bankruptcy
proceedings, confirmed details of the approval reported in the
Bermuda Royal Gazette newspaper.

Under the restructuring plan, a new company called New Global
Crossing will be formed to discharge its debts by giving a mix of
cash and shares to creditors.

According to Mike Morrison, a partner in the corporate
restructuring department of KPMG, lenders, such as banks which
lent Global Crossing about US$2.55 billion over time, will get at
least 20% back, but unsecured creditors will get as little as 1%
or 2% of the money they are owed. Existing shareholders in Global
Crossing will get nothing under the scheme, he added.

If the plan receives all the necessary regulatory approvals,
Global Crossing's assets will be transferred to New Global
Crossing, a company formed by Asian investors Singapore
Technologies Telemedia and Hutchison Telecommunications Ltd., a
subsidiary of Hutchison Whampoa Ltd.. Last August, the Asian
investors agreed to pay US$250 million in cash for the
acquisition of 61.5% control of Global Crossing.

The creditors and lenders will then be given a mix of cash, new
debts notes and stock in New Global Crossing.

Further, New Global Crossing will issue new senior secured notes
valued at US$200 million, 22 million shares of the new common
stock, and 18 million shares of new preferred stock.


TYCO INTERNATIONAL: New $1.5B Facility Eases Liquidity Concerns
---------------------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) announced
Monday that it has obtained commitment letters from various banks
for a new $1.5 billion credit facility. Tyco expects the new
credit facility to be in place prior to the February 2003
expiration of its existing 364-Day Credit Agreement. The
commitments are subject to various conditions, including the
absence of any material adverse change in Tyco's business, the
absence of any downgrade in Tyco's credit ratings and successful
completion of Tyco's privately placed debenture offering
announced earlier Monday.

Tyco has also reaffirmed its previously announced guidance for
the first quarter of fiscal 2003. Earnings per share from
continuing operations are expected to be in a range of 30 cents
to 33 cents and free cash flow is expected to approximate $0 to
$300 million. Tyco refers to the net amount of cash generated
from operating activities, less capital expenditures, spending on
the Tyco Global Network (TGN), changes due to the company's
accounts receivable securitization program, and dividends, as
"free cash flow." Free cash flow is not a substitute for cash
flow from operating activities as determined in accordance with
GAAP.

Tyco further announced that in order to alleviate concerns that
senior unsecured debt at Tyco's various holding companies would
be structurally subordinate to claims by direct creditors of
Tyco's operating subsidiaries, Tyco has agreed that its material
operating subsidiaries will guarantee their pro rata share of
finance subsidiary intercompany debt to Tyco International Group
S.A. ("TIGSA"), a wholly owned subsidiary of Tyco, and TIGSA will
guarantee Tyco's outstanding Zero Coupon Senior Liquid Yield
Option Notes due 2020. Tyco expects the guarantees to be in place
shortly.

About Tyco International Ltd.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in medical device products, and plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.

CONTACT:  (Media)
          Walter Montgomery
          Tel:424-1314

          (Investors)
          Kathy Manning  
          Tel: 603-778-9700


TYCO INTERNATIONAL: Files $3.25B Convertible Debenture Offering
---------------------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) announced
Monday its intent to offer, subject to market and other
conditions, $3.25 billion combined principal amount of Series A
Convertible Senior Debentures due 2018 and Series B Convertible
Senior Debentures due 2023 through its wholly-owned subsidiary,
Tyco International Group S.A. The debentures are fully and
unconditionally guaranteed by Tyco and will be convertible into
Tyco common shares at the option of the holder at a price to be
determined. Tyco intends to use the net proceeds to repay debt
and for general corporate purposes. The initial purchasers of the
debentures will also have a 30-day option to purchase additional
debentures, which, if exercised, would give Tyco additional net
proceeds.

The debentures will be offered to qualified institutional buyers
in reliance on Rule 144A under the Securities Act of 1933. The
debentures will not be registered under the Securities Act.
Unless so registered, the debentures may not be offered or sold
in the United States except pursuant to an exemption from, or in
a transaction not subject to, the registration requirements of
the Securities Act and applicable state securities laws. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
the debentures in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification
under the securities laws of any such state.



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

AES CORP.: `BB' Rating on Bank Facility Indicates Confidence
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed Friday its 'BB'
ratings on The AES Corp.'s (AES) $1.62 billion senior secured
bank facility and $350 million senior secured exchange notes.
Approximately $258 million of exchange notes were issued. The
ratings have been changed to final from preliminary.

"Standard & Poor's views the default risk of the bank facility
and exchange notes as equal to the 'B+' corporate credit rating
of AES, but the two-notch elevation of the ratings on these
instruments reflects Standard & Poor's high degree of confidence
that the collateral package provides enough value for secured
lenders to realize 100% recovery in a default or stress
scenario," said credit analyst Scott Taylor.

The affirmation comes as Standard & Poor's has completed its
review of the documents related to AES' recent refinancing:
specifically, the indenture related to the senior secured
exchange notes; the credit, reimbursement, and exchange agreement
related to the senior secured bank facility; and the security
agreement. Based on its review, Standard & Poor's has found no
material deviations from its assumptions in assigning the
preliminary rating, and has concluded that the security package
includes sufficient representations and warranties from AES that
lenders' interest in the collateral is a first-perfected interest
and that it is enforceable. Standard & Poor's has also concluded
that the representations and warranties contained in the security
agreement meet its criteria for collateral pledged that is
subject to Article 9 of the Uniform Commercial Code.

ANALYSTS:  Scott Taylor, New York (1) 212-438-2057
           Arthur F Simonson, New York (1) 212-438-2094


CELESC: Completes Management Shake Up
-------------------------------------
The new state government of Brazil's Santa Catarina last week
appointed new officers to head state distributor Celesc.
According to Business News Americas, new state governor Luiz
Henrique named Carlos Rodolfo Schneider as director chairman,
Paulo Gorini Martignago as CFO and Eduardo Carvalho Sitonio as
technical director.

Scheider and Adelcio Machado dos Santos, Udo Dohler, Francisco
Amaury Olsen, Pedro Colin and Icuriti Pereira da Silva were also
named as state government representatives on Celesc's board of
councilors, while Ricardo Moritz and Helio Testoni were named as
minority shareholder representatives.

Speaking at the swearing-in ceremony, Henrique said that the
state government aims to increase the amount of power generated
by Celesc.

"Currently, only 3% of the power sold by Celesc is produced by
it. It's necessary to prioritize power generation," Henrique
said.

Outgoing director chairman Jose Faraco said the new state
government will continue moves already made to split Celesc into
three units - power generation, distribution and
telecommunications.

CONTACTS:  CELESC
           Rodovia SC 404 - Km 3
           Itacorubi 88034-900 Florianopolis - SC
           Brazil
           Phone   +55 48 231 6011
           Home Page http://www.celesc.com.br
           Contacts:
           Francisco De Asis Kuster, Chairman
           Enio Andrade Branco, Finance Director


GILAT: Announces Major LatAm Wins; Debt Plan Nears Closing
----------------------------------------------------------
Gilat Satellite Networks Ltd. (Nasdaq: GILTF), a worldwide leader
in satellite networking technology, reported on Monday its
results for the quarter ended September 30, 2002. The Company
also announced a significant increase in backlog as a result of
several major new contracts within the past two months.

Revenues for the third quarter were US$43 million and year-end
backlog is expected to increase to approximately US$250 million.
Net loss for the third quarter was US$108 million, which included
write-offs associated with a partial impairment of GVT notes,
inventory adjustment related to current sales level, adjustment
for doubtful accounts, final costs associated with the closing of
the rStar transaction, and certain transponder termination costs
associated with StarBand Communications. Without these impacts
and without our share in equity losses in Satlynx and Starband,
net loss was US$26.9 million for the quarter.

Gilat Chairman and Chief Executive Officer Yoel Gat said,
"Although our top line has been impacted over the past two
quarters due to temporary delays in signing certain contracts, we
have recently signed several large deals over the past few weeks
as we moved to finalize the details of our debt restructuring
plan. These major wins are expected to increase backlog to
approximately US$250 million, which is comparably higher than
2001 year-end backlog. This increase in backlog is expected to
have a positive effect on our revenue and business as we move
forward in 2003."

Major new contracts lead to significant increase in backlog --
Major telecommunications companies and governments continue to
adopt Gilat's technology and communications solutions

Gilat recently reported several major core-business wins, leading
to an expected increase in year-end backlog to approximately
US$250 million. From this backlog amount, the Company expects
that approximately over US$120 million will turn into revenue
during 2003, thus providing a stable base on which to grow
revenue from during the upcoming year. Recent new contracts
currently in backlog include:

-- The Colombian government selected Gilat for two Compartel
projects including the installation and operation of 500
telecenters that will provide Internet connectivity and telephony
services in cities and towns throughout Colombia and a 3,000-site
fixed rural satellite telephony network. Together, the total
value of the contracts is approximately US$65 million.

-- Brazil's Communications Ministry selected Gilat to provide
two-way, satellite Internet service to 3,200 sites nationwide, in
a contract worth US$22 million. The satellite communications
network, based on Gilat's Skystar 360ET VSAT product, will serve
Brazil's new GESAC program that was established to provide
Internet access to millions of citizens in 3,200 communities
nationwide. It is the first government program of its kind in
Brazil.

-- China Telecom, one of China's largest telco's, selected Gilat
to provide a large-scale DialAw@y IPT satellite rural telephony
network to serve more than 1,300 public call offices in Tibet.
The contract is worth approximately US$8 million.

-- Gilat was selected by Telkom South Africa Limited, the largest
telco in Africa, to provide a Skystar 360E satellite hub station
and thousands of VSAT terminals, establishing Gilat's satellite-
based technology as Telkom SA's broadband VSAT offering. The
agreement spans a five-year period reaching a cumulative amount
of more than 26,000 units - making it, when completed, one of the
largest VSAT networks in the world. Gilat expects to generate
approximately US$10 million in revenue by the end of 2003.

-- Do It Best Corporation selected Gilat's Spacenet subsidiary to
provide a high-speed broadband network to serve up to 4,000
retail locations nationwide.

-- Star One expanded its broadband satellite network by adding
2,000 SkyBlaster 360 VSAT terminals to its existing network of
3,700 VSAT terminals. The additional VSATs will allow Star One to
expand its services of broadband Internet access for consumers
and small businesses throughout Brazil.

-- Gilat was selected by Artel Communications to provide an
additional two-way satellite communications telephony network for
use throughout Rwanda. The 400-site DialAw@y IPT network will be
deployed evenly throughout the country, each VSAT servicing two
public phones using a prepaid (scratch card) system and powered
with solar energy.

-- Gilat's U.S. subsidiary, Spacenet Inc., was selected by the
Texas Department of Health (TDH) to provide a high-speed
satellite communications network to support interactive data
applications and interactive distance learning (IDL) services to
520 offices throughout the state. TDH will use Gilat's Skystar
Advantager VSAT network for its Bureau of Nutrition's Women,
Infants and Children (WIC) program.

-- Gilat's US subsidiary, Spacenet Inc., was selected by The
Steak n Shake Company to deploy a broadband satellite-based IP
network at a minimum of 350 Steak n Shake restaurant locations
nationwide. Spacenet's Connexstar broadband satellite service
will provide Steak n Shake with commercial grade, high-speed,
always-on connectivity for critical point-of-sale applications.

Restructuring plan nears closing and date is set for meeting with
bondholders and bank lenders to approve plan

Last month, Gilat announced that it has reached agreement with
its major bank and holders of a majority of bonds on the details
of its debt restructuring plan. The Company is moving forward in
anticipation of completing the restructuring plan in first
quarter 2003.

"The closing of our debt restructuring plan will be a major
milestone for Gilat, positioning the Company on a path of growth
in 2003 and beyond, with a significantly improved balance sheet
and operating structure," added Gat.

The Company has set a date of February 5, 2003, to hold a final
meeting of bondholders and bank lenders to approve its debt
restructuring plan as filed with the Israeli District Court in
Tel Aviv. The Company also commenced the mailing of proxy
information on January 6, 2003, in connection with the upcoming
meetings.

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd., with its global subsidiaries
Spacenet Inc. and Gilat Latin America, is a leading provider of
telecommunications solutions based on Very Small Aperture
Terminal (VSAT) satellite network technology - with nearly
400,000 VSATs shipped worldwide. Gilat markets the Skystar
Advantage, DialAw@y IP, FaraWay, Skystar 360E and SkyBlaster(a)
360 VSAT products in more than 70 countries around the world. The
Company provides satellite-based, end-to-end enterprise
networking and rural telephony solutions to customers across six
continents, and markets interactive broadband data services. The
Company is a joint venture partner in SATLYNX, a provider of two-
way satellite broadband services in Europe, with SES GLOBAL.
Skystar Advantager, Skystar 360T, DialAw@y IPT and FaraWayT are
trademarks or registered trademarks of Gilat Satellite Networks
Ltd. or its subsidiaries. Visit Gilat at www.gilat.com. ((a)
SkyBlaster is marketed in the United States by StarBand
Communications Inc. under its own brand name.)

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

CONTACT:          Gilat Satellite Networks Ltd.
                  Investor Relations:
                  Tim Perrott, 703/848-1515
                  tim.perrott@spacenet.com

                     
GLOBOPAR: Moody's Cuts Ratings After Missing Interest Payment
-------------------------------------------------------------
Moody's Investors Service downgraded the credit ratings of Globo
Communicacoes e Participacoes SA. The decision comes after
liquidity problems forced the biggest broadcaster in Brazil to
elect not to pay a required December 2002 interest payments on
its Euro medium term notes.

The ratings affected were:                       To    From

- US$870 million of Euro medium term notes       Ca     B3
  due 2004, 2006 and 2008
- Senior Implied Rating                          Caa3   B3
- Senior unsecured issuer rating                 Ca     B3

The rating outlook is stable.

Globopar, a holding company owned by Organizacoes Globo, and
guarantor sister company TV Globo, Brazil's largest television
network, have US$1.12 billion of debt and are in talks with
bondholders and creditors to restructure debt by the end of this
month, Moody's said. The Company expects to present a debt
restructuring and business plan by the end of January.

Moody's said that the ratings are principally supported by
Globo's position as the dominant broadcast media company in
Brazil, with a 77% revenue share in the TV advertising market, as
well as expectations of declining capital expenditure, sale of
minority stakes in Brazilian media companies, and support from
the Marinho family, which owns the media group and has invested
more than US$170 million in Globopar in the past year.

CONTACT:  GLOBO COMUNICACOES E PARTICIPACOES - GLOBOPAR
          Rua Afranio de Melo Franco
          135/4  andar- Leblon
          Rio de Janeiro - RJ
          CEP: 22430-060
          Phone: (21) 240.2000
          Fax: (21) 259.6586
          Home Page: www.globopar.com.br
          Contacts:
          Mr. Roberto Marinho, President - Board of Directors
          Mauro Molchansky, Executive Director
          Marcos Carneiro, Director - Corporate Relations

ADVISER:  HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
          John McKenna
          Lily Chu
          Phone: 212/497-4100


INTELIG: Forcasts Savings from Lowered Joint Billing Fees
----------------------------------------------------------
Brazilian long distance operator Intelig may save about BRL30
million annually after the country's telecoms regulator Anatel
ordered a reduction in the fee that incumbent fixed line
operators are charging on Intelig for issuing joint billing
statements.

Anatel ruled that local operators - Telemar, Brasil Telecom and
Telesp - must charge an interim rate of BRL0.785/bill
(US$0.23/bill), down from about BRL1.60/bill, until an
independent consultant sets a new rate.

Business News Americas recalls that Intelig paid the local
operators BRL60 million for billing services last year.

Meanwhile, Intelig has also struggled to force the local
operators to cut the interconnection fees they charge for long
distance traffic originated or terminated on their networks.
However, Anatel has washed its hands of the case, leaving Intelig
to rely on the antitrust authority Cade.

Business News Americas earlier reported that Intelig's
shareholders -- National Grid, Sprint and France Telecom -- have
been seeking a strategic investor since November 2001 in order to
avert an impending bankruptcy.

Intelig, which owes US$140 million to Alcatel and US$30 million
to Canadian vendor Nortel Networks, was earlier valued at US$200
million, excluding its debt, by local papers.


VARIG: Regulators Warn of Earnings Restatement; Equity Trimmed
--------------------------------------------------------------
Viacao Aerea-Rio Grandense SA (Varig), Latin America's largest
airline, is likely to see a reduction in its shareholders equity
by about 1BRL billion (US$300mn), making it even more difficult
to renegotiate debt payments to its creditors.

The negative news comes after the country's regulators, citing
irregularities, demanded that the Company, which has defaulted on
payments of its US$900 million debt, restate earnings for 2001
and first half of 2002.

The regulators suggested that the Company considered some items
as assets that should not have been included in the balance sheet
and failed to include some liabilities, such as debt to its
pension fund

Varig's latest financial statement showed that its liabilities
exceeded its assets by BRL523 million on June 2002.

According to the regulator, Varig will have to write off BRL817
million in assets and include in its balance sheet about BRL500
million in debt to its employee pension fund.

The regulator has also requested the Company clarify some of its
accounting practices on the use of derivatives contracts and
trading of securities and explain to investors liabilities the
Company may face.

Varig would respond to the Securities Commission in about 15
days, said company spokesman Paulo Cesar Fonseca.

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

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

              KPMG Brazil
              Belo Horizonte
              Rua Paraba, 1122
              13th Floor
              30130-918 Belo Horizonte MG
              Telephone 55 (31) 3261 5444
              Telefax 55 (31) 3261 5151
                       or
              Brasilia
              SBS Quadra 2 BL A N 1
              Edificio Casa de Sao Paulo SL 502
              70078-900 Braslia - DF
              Telephone 55 (61) 223 2024
              Telefax 55 (61) 224 0473

              BAIN & CO
              Primary Contact: Wendy Miller
              Two Copley Place, Boston, MA 02116
              USA
              Phone: +1-617-572-2000
              Fax: +1-617-572-2461
              Email: miles.cook@bain.com
              URL: http://www.bain.com



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

JUTC: Will Seek Government Financing to Stay Afloat
---------------------------------------------------
Jamaica Urban Transit Company (JUTC) will be asking a new
financing package from the Ministry of Finance, reports RJR News,
without indicating the actual amount to be requested.

JUTC President, Sterling Soares, said the Company needs more
capital to keep it viable. He also revealed that the proposal
will be submitted this month to allow JUTC to prepare its 2003-
2004 budget.

Soares also mentioned that Financial Sector Adjustment Company
(FINSAC) Managing Director Patrick Hylton is helping the Company
in drafting the proposal.

The Company's latest financial statements disclosed a rate of
US$110 million in monthly, or at least US$3.6 million per day,
while an audit last year disclosed the Company's accumulated
deficit at more than US$2 billion.

Meanwhile, Soares says he will not be resigning from his
position, contrary to rumors. He also denied reports saying the
country's Transport Minister had requested his resignation.

Soares held that he has intentions to supervise the cash-strapped
company's reorganization and that significant changes will be
focused at the management level.



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

CNI: Conflict Continues; Government Slammed For Lack of Action
--------------------------------------------------------------
Mexico City TV company CNI Canal 40 criticized the government for
lack of action to resolve a conflict between it and TV Azteca,
the country's second-largest broadcaster. Dow Jones recalls that
TV Azteca took control of the transmission facilities of CNI late
last month and began transmitting its own signal. CNI claimed TV
Azteca used force during the takeover, something which the latter
denied.

According to TV Azteca, the recent international arbitration and
local court rulings validate the contracts signed in 1998 by the
two broadcasting companies, under which TV Azteca provides
programming and sells advertising time for CNI, as well as an
option to buy 51% of Televisora del Valle de Mexico SA, which
holds the license for CNI.

Under the agreement, TV Azteca loaned CNI US$10 million and
advanced an additional US$15 million against future earnings.
Earlier Monday, President Vicente Fox declined to comment on the
matter when asked by reporters.

CNI's legal representative, Fernando Gomez Mont, said the federal
attorney general's office is expected to act soon, although he
declined to provide details.


SATMEX: Satellite Delayed from February to May
----------------------------------------------
Satmex 6, the new satellite of Mexican satellite operator Satmex
will be launched at the end of May, reports Business News
Americas, citing Satmex corporate communications director, Luis
Fernandez Veraud. The satellite was built by Loral Space &
Communications, a Satmex shareholder, in its facilities at Palo
Alto California. According to Mr. Fernandez, the satellite is "99
percent built". The remaining 1% would be the performance and
climate testing.

Earlier reports predicted the launching would be in mid-February.
French aerospace firm Arianespace said, during the contract
signing with Satmex, that the launching date would be February
15. The satellite would take-off from Arianespace's facility in
French Guiana.

According to BNAmericas, the satellite will be positioned at
109.2 degrees West Longitude and will carry 36 C-band and 24 Ku-
band transponders.

The Company estimates the satellite to cost about US$250 million.
BNAmericas enumerated the individual costs as follows: US$200
million for construction, US$100 million for the launching
contract with Arainespace and US$50 million for insurance
coverage.

Satmex President Lauro Gonzales expects the satellite to bring in
between US$75 million to US$80 million per year.

The satellite, which would be the largest commercial satellite
operating over the Americas, is expected to boost the Satmex's
telecoms and internet transmission capacity in the country and in
other parts of the Americas.

Fernandez revealed that about 15% of the satellite's capacity had
been sold. The Company expects to have sold 40% by launch time,
and 80% early next year.

Satmex is 75% owned by Mexican consortium Principia, the
remaining 25% is controlled by the government.

CONTACT:  SATELITES MEXICANOS, S.A. DE C.V.
          Kristi King Etchberger
          Tel. 011-52-55-5201-0804
          Web site:  http://www.satmex.com



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

URUGUAYAN BANKS: Government Says Viable Replacement Opens Soon
--------------------------------------------------------------
Uruguayan President Jorge Batlle said that the government will
open El Nuevo Banco Comercial on Feb. 14, relates Business News
Americas. El Nuevo Banco Comercial will rise from the assets of
local banks Banco Comercial, Montevideo and Caja Obrera, which
will be liquidated beginning Jan 13 following last year's
suspension resulting from liquidity crisis sparked by the
country's financial crisis.

The new bank will open with 700 employees instead of the 1,700
employed at the banks prior to their suspension, Mr. Batlle said,
adding the bank will also operate with "reduced infrastructure".

The president believes that El Nuevo Banco Comercial will re-
capture many business clients.

CONTACT:  BANCO COMERCIAL
          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page: www.bancocomercial.com.uy/

         

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

* Liquidity Fears Swell; Bonds Fall To 5-Month Record Low
---------------------------------------------------------
Venezuela's benchmark bond fell 1.45 cents on the dollar to a
five-month low of 63.5 after a recommendation cut from Merrill
Lynch and Co., reports Bloomberg. This year, the 9.25% bond,
which comes due in 2027, had declined by 8%, based on figures by
J.P. Morgan Chase and Co. in New York.

Merrill Lynch cited the nationwide strike that has crippled the
country's oil industry as one of the reasons for cutting the
bond's recommendation.

Pablo Goldberg, an analyst for Merill Lynch had slashed his
recommendation on the debt to "underweight", though he recommends
investors buy Venezuelan bonds at current prices should the state
oil company, Petroleos de Venezuela S.A. resumes operations. He
said that the strike had created as much as US$3 billion in
losses for the country, and is not likely to end soon.

Instead, Golberg recommends shifting money into Ecuador, as the
country is benefiting from the oil price hike, according to the
report.

Meanwhile, Christian Stracke of CreditSights Inc. recommended on
Monday that investors move to a ``neutral'' rating from
``underweight'' on Venezuelan bonds.

Venezuela faces about US$22.4 billion of international debt, and
has to make a payment on bonds of about US$2.7 billion next year.
The country's foreign currency reserves dropped to US$11.8
billion by the end of last week. It had declined 5.6%, while the
oil fund dropped 15% since the strike began. The oil fund, which
may be tapped by both the government and PdVSA, stands at US$2.86
billion.

The strike, in place since December 2 last year, continues to
clamor for the resignation of President Hugo Chavez, or have him
call early elections.

"The danger is that this goes on and they run out of money," said
Nicholas Field, who helps manage US$350 million of emerging
market bonds including Venezuelan debt at WestLB Asset Management
in London,as quoted by Bloomberg.

"Right now there are more people worried about that than there
are who think they will work something out." he said, adding that
he isn't currently buying or selling Venezuelan bonds.




               ***********


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 Oona G. Oyangoren, Editors.

Copyright 2003.  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
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Information contained herein is obtained from sources believed to
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* * * End of Transmission * * *