/raid1/www/Hosts/bankrupt/TCRLA_Public/030212.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, February 12, 2003, Vol. 4, Issue 30

                           Headlines

A R G E N T I N A

ARGENTINE UTILITIES: Government Considers Reversing Asset Sales  
AUTOPISTAS DEL SOL: S&P Rates Corporate Bonds `raD'
BANCO FRANCES: S&P Gives Junk Rating to $2B Of Bonds
HSBC BANK ARGENTINA: S&P Assigns Junk Ratings To $1B of Bonds
PAN AMERICAN ENERGY: S&P Revises Outlook to Stable


C H I L E

AES GENER: Fitch Downgrades Ratings To 'B+'; Negative Outlook
AES GENER: Unveils Portal For Suppliers
ENDESA CHILE: Reports CLP9.32B Net Loss On Asset Write-downs
ENERSIS: Reports Biggest Quarterly Loss Ever


M E X I C O

ATSI COMMUNICATIONS: Issues Company Profile
BITAL: Fitch Ratings Raises Individual & Support Ratings
CFE: Los Humeros Helps Save 700,000 Barrels of Oil Per Year
EMPRESAS ICA: Regional Court Sides With CSS
FORDING INC.: Posts $71M Loss In 2002 On Mexican Ops Write-down

IUSACELL: Shares Plunge To Lowest Closing Price On Record
PEMEX: Issues $750M, 5.5-Yr. Bonds To Finance Pidiregas Projects
PEMEX: Commencing Bidding Process For $8B Project This Month


T R I N I D A D   &   T O B A G O

BWIA: Protest Was Not Politically Motivated, Says Union Leader
BWIA: Pilot Association Agrees To Concessions
CARONI LTD: Union Heads Condemn Prime Minister's Statements


U R U G U A Y

URUGUAYAN BANKS: Government Prepares Bidding Rules

*Uruguay Advances Talks With IMF


V E N E Z U E L A

PDVSA: Venezuela Likely To Undergo Economic Turmoil
SIDOR: Focusing On Primary Production For Now
VENEZUELAN BANKS: Debt Restructuring Likely To Follow Controls

     -  -  -  -  -  -  -  -

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

ARGENTINE UTILITIES: Government Considers Reversing Asset Sales  
---------------------------------------------------------------
Argentina is contemplating a measure analysts believe could
discourage investment in South America's second-largest economy,
which shrank 12% last year.

According to a report by Bloomberg, Argentina said it might take
back utilities from companies such as Telefonica SA and
Electricite de France, reversing asset sales in the 1990s that
helped the government raise more than US$20 billion and improve
services.

"This is not good news," said Fernando Losada, senior Latin
American economist at ABN Amro. "Foreign investors will certainly
think twice about putting money into the country."

Cabinet Chief Alfredo Atanasof said the government will open a
public debate to determine the utilities' ownership since
customer complaints increased in the past year. Power surges have
damaged equipment, railroad upgrades are overdue and water
companies have put off flood-prevention work, government
officials said.


AUTOPISTAS DEL SOL: S&P Rates Corporate Bonds `raD'
---------------------------------------------------
Autopistas del Sol S.A.'s corporate bonds were rated `raD' by the
Argentina branch of rating agency Standard & Poor's, on Thursday.

According to the National Securities Commission of Argentina, the
rating applies to the bonds classified as "simple issue". The
concerned series of bonds under "Obligaciones Negociables
simples, autorizadas por AGO de fecha 16.5.97" includes US$210
million of corporate bonds maturing on August 3, 2009, and
another US$170 million maturing on August 2, 2004.

The rating of `raD' is given when the company defaulted on a
debt, or has filed for bankruptcy, according to the rating
agency's definitions. The 'raD' rating is used when interest or
principal payments are not made on the date due, even if the
applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace
period.

The ratings reflect the Company's performance as of end-September
30 last year.


BANCO FRANCES: S&P Gives Junk Rating to $2B Of Bonds
----------------------------------------------------
BBVA Banco Frances S.A.'s corporate bonds were given junk ratings
by Standard & Poor's Argentine branch on Thursday. The ratings
reflect the Company's performance as of the end of September 30
last year.

In the official web site of the National Securities Commission of
Argentina, US$1 billion of bonds classified under the type
"Program", were rated `raC' by the rating agency. The bonds,
described as "Programa de Obligaciones Negociables" with an
unrevealed maturity date, are currently highly vulnerable to non-
payment said S&P.

Meanwhile, another US$1 billion in bonds, with the same
description were rated `raCCC'. The bonds, whose maturity date
was also not indicated in the posting, is highly vulnerable to
non-payment. The company's ability to pay this debt is dependent
upon favorable business and financial conditions, according to
the rating agency.


HSBC BANK ARGENTINA: S&P Assigns Junk Ratings To $1B of Bonds
-------------------------------------------------------------
Corporate bonds issued by HSBC Bank Argentina S.A. were issued
junk ratings by the Argentine branch of Standard & Poor's
International Ratings, Ltd. (Sucursal Argentina) on Thursday,
according to the National Securities Commission of Argentina.

Classified under the type "program", the bonds, worth US$500
million, and dubbed "Programa de obligaciones negociables
subordinadas y no subordinadas" by the NSC, were rated `raCC'.
This means that the bonds are currently highly vulnerable to non-
payment, based on definitions given by S&P in its web site.

Another set of corporate bonds, also worth US$500 million,
described in the posting as "Programa de obligaciones negociables
subordinadas y no subordinadas", were rated `raCCC', which means
that they are currently vulnerable to non-payment, and is
dependent upon favorable business and financial conditions for
the obligor to meet its financial commitments on the obligation.

Final maturity dates for the two setss of bonds were undisclosed.

The ratings reflect the Company's financial status as of
September 30, 2002.


PAN AMERICAN ENERGY: S&P Revises Outlook to Stable
--------------------------------------------------
Standard & Poor's Ratings Services said Monday it revised the
local and foreign currency outlook on oil and gas producer Pan
American Energy LLC (PAE) to stable from negative, given a lower
level of uncertainties regarding the oil industry in Argentina in
the immediate future coupled with the outstanding performance of
the company despite the many challenges presented by the changing
Argentine economic environment.

Additionally, Standard & Poor's affirmed its 'CCC+' local and
foreign currency corporate credit ratings on PAE. PAE's total
debt amounted to $613.3 million as of September 2002.

"After the release of Decree 2703/2002 on Dec. 27, 2002,
ratifying the ability of oil producing companies to keep up to
70% of export proceeds abroad, the immediate uncertainties
affecting the debt repayment ability of Argentine oil producing
companies have been reduced. Moreover, despite the introduction
of export duties, temporary export quotas, and pesified natural
gas prices, PAE's financial profile continued to strengthen
boosted by unusually high crude oil prices since the second
quarter of 2002," said Standard & Poor's credit analyst Pablo
Lutereau.

Strong financial performance allowed EBITDA interest coverage to
reach a strong 10.6x for the nine months ended September 2002
from approximately 2.4x in fiscal 1998. Likewise, funds from
operations covered about 50% of the total debt in the nine-month
period ended in September 2002. Standard & Poor's expects PAE's
coverage ratios to remain strong with FFO to total debt above 20%
and EBITDA interest coverage of 4x in spite of an eventual
reduction of crude oil prices.

Nevertheless, Standard & Poor's remains concerned about the
future prospects of the Argentine oil and gas industry due to the
uncertainties related to the next presidential elections in 2003,
and will continue to closely follow the developments affecting
the industry in order to determine future changes in credit
quality.

"The rating and outlook assume no significant changes in the
regulation affecting the sector after the next presidential
elections in April 2003. Should any such change take place,
ratings will be adjusted in order to reflect either the
improvement or deterioration in the company's repayment ability,"
added Mr. Lutereau.

U.S.-incorporated Pan American Energy is a holding company
engaged in exploration and production of oil and gas in Argentina
and Bolivia. The company is the second-largest Argentine oil and
natural gas producer after YPF S.A., with strong natural gas
growth prospects. Pan American Energy is 60%-owned by BP Plc and
40%-owned by Bridas Corp.

ANALYSTS:  Pablo Lutereau, Buenos Aires (54) 114-891-2125
           Marta Castelli, Buenos Aires (54) 114-891-2128



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

AES GENER: Fitch Downgrades Ratings To 'B+'; Negative Outlook
-------------------------------------------------------------
Fitch Ratings has downgraded the senior unsecured local and
foreign currency ratings of AES Gener S.A. (Gener) to 'B+' from
'BB-' and the Chilean national scale rating to 'Chl BB+' from
'Chl BBB-'. The ratings have been assigned a Negative Rating
Outlook. The downgrade and rating outlook primarily reflect a
continued delay in selling assets, near term liquidity
constraints and longer-term refinancing concerns.

The company's negotiations regarding the sale of certain Central
American investments have been delayed. An agreement may no
longer be reached in time to mitigate liquidity concerns for the
second half of 2003. The company has been analyzing other
alternatives to generate cash. The recent refinancings plus
semiannual interest payments on the US$503 million convertible
bond and US$200 million Yankee bond have resulted in total
required debt service payments in 2003 of approximately US$134
million (at Gener, TermoAndes/InterAndes and Energy Trade and
Finance Corp.), excluding any debt reduction related to asset
sales. The company ended 2002 with a cash balance of
approximately US$14 million. Sources of near-term cash include
operating cash flow as well as dividends from its Chilean
subsidiaries based on 2002 results. Through September 2002, the
most recent financial information available, Gener reported
EBITDA-to-interest of 2.2 times (x) with total consolidated
leverage, as measured by debt-to-EBITDA, of 6.1x, an improvement
from 1.8x and 7.0x, respectively, as of year-end 2001.

In addition to the restructured bank debt, Gener has bullet
maturities of approximately US$503 million of convertible bonds
due March 2005 and US$200 million of Yankee bonds due January
2006. The company is currently pursuing refinancing alternatives
since operating cash flow alone is insufficient to fully repay
this debt at maturity.

The operating fundamentals of Gener reflect the company's solid
position as the largest thermal generator in the Chilean
electricity market, its diverse portfolio of generating plants,
its strategy of focusing on core electricity generation in Chile,
a soundly administered regulatory system, an economically strong
and growing service area, and experienced management. Gener
further benefits from its project-like structural
characteristics, including long-dated power purchase agreements
(PPAs) with financially strong customers and fuel supply
contracts that reduce business risk. These strengths may
eventually be eroded should the company be forced to divest
additional Chilean assets.


AES GENER: Unveils Portal For Suppliers
---------------------------------------
Maria Teresa Bravo, an AES Gener spokeswoman, revealed the
Chilean electricity generator last week launched a portal aimed
at providing suppliers with information regarding bill payments,
relates Business News Americas.

"Suppliers can access all the companies through their [ID number]
and password, to receive information regarding the date, place
and form of the bill," Bravo said, adding, "The registry of
suppliers includes 851 companies with access to this system."

The portal is geared towards shareholders, bondholders and
financial analysts, as well as suppliers within the electrical
sector. The site contains the Company's financial information,
press releases, annual reports, and the latest reports from the
local securities regulator SVS, among other items.

AES Gener is owned by US-based AES Corporation.

CONTACT:  AES GENER S.A
          Head Office
          3rd Floor
          Mariano Sanchez Fontecilla
          310
          Santiago
          Chile
          Tel  +56 2 686 8900
          Fax  +56 2 686 8991
          Web  http://www.gener.cl
          Contact:
          Robert Morgan, Chief Executive

         
ENDESA CHILE: Reports CLP9.32B Net Loss On Asset Write-downs
------------------------------------------------------------
Chilean electricity generator Empresa Nacional de Electricidad SA
(Endesa Chile) reported a CLP9.32 billion net loss in 2002,
reversing its CLP72.16 billion net profit in the year earlier.

The Company, according to Dow Jones, blames the CLP98.94-billion
write-down net of minorities for the negative figure.

"These adjustments ... that haven't affected liquidity at the
company, are part of a policy of maximum financial prudence with
the object of better reflecting the value of Endesa Chile's
investments in Argentina and Brazil after the crisis both
countries have experienced," the Company said.

Operating income edged lower primarily due to lower average
prices in Argentina as well as due to currency devaluations
affecting earnings from both countries, offset to some extent by
a surge in Chilean operating income.

In its home market, operating income jumped 25.4% due to greater
hydrological power production, it added.

Overall, operating income came in at CLP346.22 billion, from
CLP348.00 billion, while its non-operating loss widened to
CLP313.42 billion from CLP247.80 due to the writedown, Endesa
Chile said.

Net financing spending dropped 8.8%, or CLP19.18 billion, on a
$240 million cut in its debt on the year, it added, without
providing additional figures.

Endesa Chile, which is controlled by Chilean electricity holding
company Enersis SA, launched a restructuring plan last October to
reduce its exposure to potential economic reversals in Latin
America in the future.


ENERSIS: Reports Biggest Quarterly Loss Ever
--------------------------------------------
Enersis SA, South America's second-biggest energy company,
suffered huge losses after weaker currencies in Brazil and
Argentina reduced its sales and the value of its assets.

According to Bloomberg, the Company, which is a unit of Endesa SA
of Spain, had a fourth-quarter 2002 net loss of US$335.4 million,
US$5.8 million higher than that of the previous year.

The loss is the biggest quarterly loss reported by Enersis since
its creation 14 years ago. The figure is a result of Enersis'
reduction of its assets' value in Argentina and Brazil by US$290
million last month, a drop taken into account in fourth-quarter
earnings. Weaker currencies and slower demand for energy also
added to a decline in sales, said Mariela Iturriaga, head of
research at BBVA Corredores de Bolsa BHIF.

"Less economic activity translates into less demand for energy,"
Iturriaga said.

In a statement to the Chilean securities regulators, Enersis
revealed that losses led it to cancel a February dividend
payment. Revenue dropped 32% to CLP502 billion from CLP734.2
billion.

Enersis didn't report quarterly revenue, which was calculated
from its full-year earnings report.

Sales fell after a 35% decline last year in Brazil's currency and
a 70% drop in Argentina's currency, as well as a freezing of
energy prices there.

Enersis' full year 2002 loss is CLP224 billion (US$311mn),
compared to a CLP42.2-billion profit in 2001, the Company said in
a statement Monday.

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682
          Contacts:
          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl



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

ATSI COMMUNICATIONS: Issues Company Profile
-------------------------------------------
NAME:  ATSI COMMUNICATIONS, INCORPORATED
       Suite 110
       6000 Northwest Parkway
       San Antonio
       TEXAS, United States 78249

PHONE:  +1 210 547-1000

FAX:  +1 210-547-1001

EMAIL:  kmella@atsi.net

WEBSITE: http://www.atsi.net

TYPE OF BUSINESS: ATSI Communications, Inc. (formerly known as
American TeleSource International, Inc.) is a telecommunications
provider focusing on the market for carrier and retail services
between the United States and Latin America, and within Latin
America. The Company changed its name to American Telesource
International, Inc. in 1994 when it merged with its subsidiary,
Latin America Telecomm, Inc., and, in February 2001, the Company
changed its name to ATSI Communications, Inc. Most of ATSI's
operations involve services between the United States and Mexico
or within Mexico. The Company owns various transmission
facilities and leases facilities of other providers as necessary
to complete its network.

SIC:  TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]

EXECUTIVES:  John Fleming, Interim Chairman
             Stephen Wagner, President and CEO
             J. Christopher Cuevas, Interim CFO
             Arthur L. Smith, President, ATSI de Mexico S.A. de
C.V.
             Raymond G. Romero, Interim CEO; VP Business
Development,
             General Counsel, and Corporate Secretary

SHAREHOLDER RELATIONS: JUDITH GIBBONS
                       Fax: (210) 547-1005
                       Email: shareholder_relations@atsi.net

NUMBER OF EMPLOYEES: 510 (last reported count)

TRIGGER EVENT:  ATSI Communications Inc. filed Chapter 11
bankruptcy protection last Tuesday. According to documents filed
with the U.S. Bankruptcy Court for the Western District of Texas,
the Company listed estimated debts between US$1 million and US$10
million. It's estimated assets are between US$10 million and
US$50 million.

UNCONSOLIDATED NET LOSS: US$14.5 Million (fiscal year ending July
2002)

AUDITOR: Arthur Andersen, LLP

Last TCRLA Headline: February 11, 2003, Vol. 4, Issue 29


BITAL: Fitch Ratings Raises Individual & Support Ratings
--------------------------------------------------------
Fitch Ratings, the international rating agency, has raised
Mexico's Banco Internacional's (Bital) Individual rating to 'D'
from 'E' and Support rating to '3' from '4'. The action on the
Individual rating was prompted by the US$800 million capital
injection by HSBC Holdings of the UK (HSBC) aimed at cleaning-up
the bank's balance sheet and strengthening its equity base. As a
result, according to management, Bital's total capital to risk-
weighted assets ratio reached a level of around 11% at end-2002,
higher than the 10% minimum required by the Mexican financial
authorities. The Support rating was changed based on our view
that HSBC would provide support should Bital run into
difficulties. The Individual rating also reflects the bank's weak
performance since the 1995 crisis and greater competition in a
difficult economic environment that will pose a significant
challenge for new management. Since we have not undertaken a full
review of the bank, we only assign Individual and Support
ratings.

Bital was Mexico's fifth largest commercial bank in terms of
total assets with a 7.3% market share at end-September 2002. The
bank is controlled by Grupo Financiero Bital (GFBital). On Nov.
22, 2002, HSBC acquired a 99.59% stake in GFBital through a
tender offer for US$1.13 billion. HSBC selected the senior
management for the bank from both HSBC and GFBital. Other group
companies are involved in securities brokerage, warehousing and
insurance, the latter held in conjunction with ING America
Insurance Holdings (ING), a subsidiary of ING Group. In October
2002, GFBital signed an agreement with IPAB to finalize the
acquisition of the assets and liabilities of Banco del Atlantico
(Atlantico), a bank that had been managed by Bital since 1998.
While Bital already consolidated Atlantico's deposits and managed
its loan portfolio, full consolidation had not taken place
pending certain accounting and legal issues which required a
protracted auditing process. The audit has concluded but the
confirmation of the results by the parties involved is still
pending. The assets and liabilities incorporated into Bital
amount MXP63.8 billion.

CONTACT: Gustavo Lopez 1-212-908-0853, Peter Shaw 1-212-908-0553,
New York, Aurelio Cavazos, Alejandro Garcia +5281 8335 7299,
Monterrey.

Media Relations: Matt Burkhard 1-212-908-0540, New York.


CFE: Los Humeros Helps Save 700,000 Barrels of Oil Per Year
-----------------------------------------------------------
The Federal Electricity Commission (CFE) has been saving some
700,000 barrels of oil per year since it activated its Los
Humeros geothermal electricity plant in the state of Puebla.

The CFE, in a statement, explained that it has brought geothermal
power plants, such as Los Humeros, into action as part of its
program to diversify sources of energy generation.

The power station has a production capacity of 35 megawatts and
generates an average of 360 gigawatt/hours per year, which is
equivalent to the electricity production of around 700,000
barrels of oil.

The plant produces clean, low-cost electricity.

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


EMPRESAS ICA: Regional Court Sides With CSS
-------------------------------------------
Mexican construction company Empresas ICA Sociedad Controladora
S.A. de C.V. (ICA) plans to make an appeal to the Panama's
Supreme Court to overturn a ruling by a regional court in light
of a suit lodged against it by Panama's social security agency
CSS.

Business News Americas recalls that CSS sued ICA in 2000, seeking
US$12.3 million for unauthorized use and damage to some
558,000sq. m of property reserved for the agency's disability,
old age and death program.

Just recently, the regional court handed down its decision,
ordering ICA to pay it US$7.7 million in damages.

However, ICA argued that Panama's government granted it land
rights as part of its 30-year concession contract and intends to
take the case to Panama's supreme court.

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

CONTACTS:    EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
             Bernardo Quintana Isaac, Chairman/Pres/CEO
             Jos, L. Guerrero Alvarez, EVP Finance and CFO

             THEIR ADDRESS:
             Mineria No. 145, Colonia Escand>n
             11800 Mexico, D.F., Mexico
             Phone: +52-55-5272-9991
             Fax: +52-55-5227-5012
             URL: http://www.ica.com.mx


FORDING INC.: Posts $71M Loss In 2002 On Mexican Ops Write-down
---------------------------------------------------------------
On Monday Fording Inc. (TSX/NYSE: FDG) announced income from
operations reached $146 million for 2002 against a net loss of
$79 million or $1.54 per share. During the fourth quarter, the
Company recorded unusual items totalling $145 million after tax,
comprised of $137 million write-down of its Mexican operation and
$8 million in reorganization costs. An after-tax expense of $6
million for the write-off of capitalized costs from the Brooks
power project capped off the loss total.  Net income before
unusual items for 2002 was $79 million, or $1.54 per share (2001
- $1.85 per share).

The Company experienced mixed results from its metallurgical coal
operations in 2002. Hard-coking coal negotiations led to US$
price increases of approximately ten percent compared to 2001
levels. However, a decline in metallurgical coal sales volumes
resulted in lower income overall compared with the prior year
when income from operations was $176 million and net income was
$97 million, or $1.80 per share.

For the fourth quarter of 2002, income from operations was $43
million, compared with $44 million a year earlier, and net income
before unusual items was $26 million compared with $30 million in
the same period of 2001.

Metallurgical coal sales for the year were 12.3 million tonnes,
down from 15.0 million tonnes in 2001. Sales of 3.0 million
tonnes in the fourth quarter of 2002 were 0.3 million tonnes
below the prior year's fourth quarter. The low sales volumes in
the last quarter of 2002 resulted from customers delaying their
delivery of contracted coal. Fording's contracted sales tonnes
for the first quarter of 2003 total approximately 4 million
tonnes. However, it is expected that customers will not take
delivery of all of these tonnes during the contract period, and
first quarter 2003 sales are expected to be consistent with sales
levels experienced over the last several quarters.

"Our first full year as a public company has presented us with
many challenges and opportunities," said Jim Gardiner, President
and Chief Executive Officer of Fording Inc. "We have had
successes and, at the same time, some disappointments."

"Our most significant achievement will be realized if our
shareholders approve the Plan of Arrangement to convert the
Company into an income trust. The combination of the current
metallurgical coal operations in western Canada - creating the
Fording Coal Partnership that will be 65% owned by the Fording
Trust - will be capable of supplying more than 25 million tonnes
of coal annually, making us a much more significant competitor in
the international coal industry."

Shareholders meet in Calgary to vote on the conversion on
February 19, 2003 and, if approved, the Plan of Arrangement
completion is expected by the end of February.

"We are optimistic that metallurgical coal market conditions
along with the large potential synergies from combining these
significant assets will give the Fording trust excellent
opportunities in the short- and long-term to provide strong
levels of distributable cash for our unitholders," added Mr.
Gardiner. "Through tailoring coal brands to meet the needs of our
many customers around the world while optimizing our operations
and capital requirements, our Canadian brand of metallurgical
coal will be well-positioned to achieve satisfying and
sustainable results going forward."

CONTACT:  Fording Inc.
          Mark Gow, CA, Director, Investor Relations
          (403) 260-9834
          Email: mark--gow@fording.ca


IUSACELL: Shares Plunge To Lowest Closing Price On Record
---------------------------------------------------------
Speculation of a possible default on Monday brought Grupo
Iusacell SA's shares to as low as 40 centavos, the lowest closing
price on record, reports Bloomberg.

Apprehension grew among investors surrounding speculation
Iusacell's shareholders, Vodafone Group Plc and Verizon
Communications Inc., were going to pull out after the Company
reported dismal fourth-quarter earnings. The shareholders'
actions would force Iusacell to default on its US$810-million
debt, analysts said.

"It will be a make it or break it quarter for them," said Rizwan
Ali, an analyst at Bear Stearns & Co. in New York. "They think
they may get some money from Verizon, but they probably won't if
they don't report positive results."

In response, Carlos Moctezuma, head of investor relations at
Iusacell, said: "I have no indication or guidance for our
shareholders that they are pulling out."

"There wasn't any event that we are aware of that triggered" the
decline in the shares, he said.

Bloomberg recalls that in December, Moody's Investors Service
said in a research note that "additional financial support from
Verizon or Vodafone is highly unlikely." Standard & Poor's also
lowered Iusacell's credit rating in November to CCC+, or five
levels from default.

INVESTOR CONTACTS:  Russell A. Olson
                    Chief Financial Officer
                    Tel: 011-5255-5109-5751
                    Email: russell.olson@iusacell.com.mx

                    Carlos J. Moctezuma
                    Manager, Investor Relations
                    Tel: 011-5255-5109-5780
                    Email: carlos.moctezuma@iusacell.com.mx


PEMEX: Issues $750M, 5.5-Yr. Bonds To Finance Pidiregas Projects
----------------------------------------------------------------
Mexico's state oil company Pemex announced that US investors
purchased 85% of the US$750-million, 5.5-year bond issue placed
on International markets Thursday, while the remainder was split
between Latin America, Europe and Asia.

Total demand was for US$1.4 billion, Pemex said.

The bonds, according to Pemex, pay a coupon of 6.125% per
semester and the yield is 6.14% for investors, 320 basis points
above the US treasury bonds.

Lehman Brothers and Morgan Stanley led the emission, and banks
BBVA, BSCH and Merrill Lynch formed the banking syndicate.

The issuance is part of Pemex's effort to raise money to finance
projects under the Pidiregas scheme. Pemex uses this scheme to
attract private sector investors, who pay for development costs
and are repaid once projects are operating.

CONTACT:  PETROLEOS MEXICANOS
          Marina Nacional 329, Colonia Huasteca
          11311 M,xico, D.F., Mexico
          Phone: +52-55-5531-6061
          Fax: +52-55-5531-6321
          http://www.pemex.com
          OFFICERS:
             Raul Munoz Leos, General Director
             Jose A. Ceballos Soberanis, Director Corporate
                                         Operations
             Jose Juan Suarez Coppel, Director Corporate Finance


PEMEX: Commencing Bidding Process For $8B Project This Month
------------------------------------------------------------
Pemex will kick off a bidding process for eight contracts worth a
total of US$8 billion to help produce natural gas in northern
Mexico this month.

Citing El Financiero newspaper, Bloomberg reports that the
boundaries of the eight blocks in the Burgos gas field will be
announced Feb. 17 and the awarding of the first of the eight
contracts will take place in July.

Pemex expects the fields to produce 1 billion cubic feet of gas
daily by 2006, reducing Mexico's dependence on imported gas.

The project has come under attack by the Institutional
Revolutionary Party, Mexico's largest political party, which
argues that the contracts would violate Pemex's constitutional
right to exploration and production.



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Protest Was Not Politically Motivated, Says Union Leader
--------------------------------------------------------------
The Aviation Communication and Allied Workers Union (ACAWU)
denied comments made by Trinidad and Tobago Prime Minister
Patrick Manning that the rally participated by retrenched BWIA
workers on Thursday were supported by forces seeking to
destabilize the country.

Mr. Manning also said that the protest was politically motivated,
according to an article from the Trinidad Guardian.

Christopher Abraham, president of ACAWU, said, "We didn't go out
of any political motivation."

He added that many of the BWIA protesters are PNM supporters, and
the Prime Ministers' comments have shaken their faith in the
party.

Unions representing BWIA workers are not reconsidering their
decision to take legal action against the airline, said the
report, adding that they are still in discussions with their
lawyers.

Abraham explained that they are not asking the government to
intervene with the retrenchments. He said, "We wanted them to
save BWIA as an industry. We feel BWIA is critical to national
development."

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)


BWIA: Pilot Association Agrees To Concessions
---------------------------------------------
The Trinidad and Tobago Airline Pilots Association (Talpa) signed
a Memorandum of Understanding with BWIA on Friday, the Trinidad
Express reports. The agreement would generate savings of
US$56,000 monthly for the troubled airline.

The MoU incorporates changes in overtime and vacation leave
payments, premium pay for work on a day off, salary deductions
and a crew meals program.

Captain Rory Lewis, Talpa's Chairman said, " This demonstrates
Talpa's willingness to honor their commitment regarding voluntary
concessions."

BWIA Chief Executive Conrad Aleong lauded the pilots, "We are
very pleased. These savings will certainly supplement our efforts
to transition to a lower cost structure. We view the concessions
as a clear message that BWIA pilots are committed to making the
New Business Model 2003 work."

He added, "As we implement the new business model, their
contribution will enhance our ability to regain competitive
advantage and profitability. When the pilots lead, the whole
airline moves as one."

The two parties are still discussing measures to improve the
airline's productivity and savings.

Captain Talpa and Captain David Rostant represented the union
during the signing of the agreement at Talpa's headquarters.


CARONI LTD: Union Heads Condemn Prime Minister's Statements
-----------------------------------------------------------
Leaders of unions representing workers of Caroni (1975) Ltd
denounced comments made by Trinidad and Tobago Prime Minister
Patrick Manning, and Agriculture Minister John Rahael. The
Trinidad Express quoted Sugar Industry Staff Association
president Jai Ramkisson saying that he believes that Mr. Manning
was trying to evade the issues.

Mr. Ramkisson added that the Prime Minister should explain his
rationale for "making such stupid statements."

He should explain what was his rationale for making such stupid
statements," Ramkisson said.

After the protest staged by Caroni and BWIA workers last
Thursday, the Prime Minister said that the government would not
intervene with the conflict between company management and the
unions.

Rudhranath Indarsingh described Mr. Manning's statements as "very
out of place."

"It seems the Prime Minister sees everything now as being
orchestrated by Mr (Basdeo) Panday and the UNC," he said.

However, according to the union leaders, the demonstration was
only an attempt to obtain a commitment on issues relating to the
restructuring of state-owned sugar company Caroni (1975) Ltd.

CONTACT:  Caroni Limited
          Old Southern Main Road, Caroni,
          Trinidad & Tobago
          Phone: (868) 663-1781 or 662-0879
          Fax: (868) 663-1404

          All Trinidad Sugar and General Workers' Trade Union
          Rienzi Complex
          Exchange Village
          Southern Main Road, Couva.
          President: Mr. Boysie Moore-Jones
          General Secretary: Mr. Rudranath Indarsingh
          Tel. 868-636-2354
          Fax. 868-636-3372
          E-mail: atsgwtu@opus.co.tt



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

URUGUAYAN BANKS: Government Prepares Bidding Rules
--------------------------------------------------
The Uruguayan bank is currently drawing up the bidding rules for
the sale of three suspended banks, which is expected to take
place this month.

The banks in question are Banco Comercial, Banco Montevideo and
Banco Caja Obrera, which the government intervened and suspended
in July and August last year due to capital and liquidity
problems that were aggravated by the country's severe economic
and financial crisis.

The government subsequently decided to merge the best assets of
the three banks into a new bank called El Nuevo Banco Comercial.

According to a spokesperson, the government, which has earlier
chosen US-based consulting firm McKinsey to advise it on the
upcoming sale, expects to hold an auction open to both local and
international bidders.


*Uruguay Advances Talks With IMF
--------------------------------
Talks between Uruguay and the International Monetary Fund (IMF)
over the release of a US$380-million credit are progressing,
Bloomberg indicates.

"The discussions with the Uruguayan authorities have entered into
an intensive phase," the IMF said in a statement. "We are
building on the progress that has already been made."

Uruguay, which suffered more than any other country from the
US$95 billion debt default in neighboring Argentina, sealed a
US$2.8-billion loan accord with the IMF last year to help the
country stabilize its banking system.

However, the IMF delayed the release of the US$380-million from
that accord in December after determining that Uruguay had failed
to resolve a deposit freeze and liquidity problems at four banks
whose operations have been suspended.

According to Roger Scher, top Latin American analyst at Fitch
Inc., the credit rating agency, Uruguay last month met IMF
conditions on shoring up its banks by merging the assets of Banco
Comercial SA, Banco de Montevideo SA and Banco La Caja Obrera SA.

The continued delay of the US$380-million installment suggests
the IMF wants assurances Uruguay will hold down spending and
adhere to its plan to pay off its debt, Scher said.

Fitch last month cut Uruguay's long-term foreign currency credit
rating to B- from B due to the nation's high debt level, and
signaled it may make further reductions.

Scher believes that even if Uruguay secures the US$380-million
from the IMF, it is unlikely to improve its credit standing.

"There is still a possibility that they ultimately feel their
debt is unmanageable and they attempt to restructure it," Scher
said. "Our rating reflects that potential for the risk, so any
movement upward is probably unlikely."



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

PDVSA: Venezuela Likely To Undergo Economic Turmoil
---------------------------------------------------
Petroleos de Venezuela SA may not fully recover after the strike,
much less regain its position as the world's fourth-largest oil
company, Bloomberg reports, citing an article released by the
Wall Street Journal.

According to the newspaper, PDVSA is the only company remaining
on strike against Venezuelan President Hugo Chavez.

If the state oil company doesn't fully recover after its strike,
Venezuela's economy may suffer and add to fears that energy
prices will increase further, the Journal said. U.S. oil prices
are up $8 since the strike's start and increased to $35.12 a
barrel on Friday.

Meanwhile, President Chavez threatened Sunday to jail 9,000 oil
industry workers for their role in the strike.

The 9,000 workers participated in an attempted "oil coup" and
"should go to prison for sabotaging the Venezuelan economy,"
Chavez said during his weekly "Hello President" television
broadcast.

Chavez claims most of PDVSA's 40,000 workers have returned to
work, but strike leaders contradict this and say that many
workers will refuse to return to work until the sacked workers
are reinstated. A further 900 oil workers were sacked over the
weekend, local newspaper El Universal reported.


SIDOR: Focusing On Primary Production For Now
---------------------------------------------
Venezuelan steelmaker Sidor, whose operations have been hampered
by the two-month-old general strike, which has hit supplies from
state oil giant PDVSA, will continue to focus on producing
pellets and direct reduced iron rather than finished products,
reports Business News Americas.

"By concentrating on primary production the rolling mills are not
operating at all for a few days," according to a company
official. The situation will remain like that until supplies are
back to normal, he added.

Supplies will not be back to 100% for "some time," Agostini said.
"We don't have any expectations, it's just impossible to predict.
We're constantly talking to PDVSA-GAS to find out when things
will get back to normal," he said.

Thanks to production records for most of last year, Sidor was
able to cope better with the gas shortage. Under normal
circumstances, the Ciudad Guayana-based company produces some
3.2Mt/y of steel, making it Venezuela's top private sector
exporter.

Sidor is owned 70% by the Amazonia consortium made up of steel
companies Sivensa (Venezuela), Siderar (Argentina), Usiminas
(Brazil), Tamsa and Hylsamex (both Mexico).

Venezuela's state heavy industries holding company CVG has the
remaining 30%, but was to have increased its stake to 42% last
year under a debt capitalization plan.

CONTACT:  SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Venezuela
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page: www.sidor.com.ve/


VENEZUELAN BANKS: Debt Restructuring Likely To Follow Controls
--------------------------------------------------------------
Venezuelan President Hugo Chavez last Wednesday implemented
foreign exchange controls in order to protect the country's
foreign reserves.

As a likely result, Venezuelan banks will soon be forced to
restructure loans to small and medium-sized businesses severely
affected by the measure.

Miguel Perez, president of the country's federation of small
industry chambers, Fedeindustria, said that private and state-run
banks will be affected

Local banks include Citigroup Inc.'s (C) Citibank and
subsidiaries of Spanish conglomerates Banco Santander Central
Hispano (STD) and Banco Bilbao Vizcaya Argentaria SA (BBV).



               ***********


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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