/raid1/www/Hosts/bankrupt/TCRLA_Public/030407.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

          Monday, April 7, 2003, Vol. 4, Issue 68

                           Headlines


A R G E N T I N A

AHOLD: South American Operations To Be Sold Off
PSEG: Exits Argentina Following Year Of Losses
GAS NATURAL: Pays Part of $120M Debt, Balance Renegotiated
TGN: Local Standard & Poor's Rates Bonds `raD', Shares `4'


B E R M U D A

ANNUITY & LIFE: Year End 2002 Earnings Report Released
ESG RE: Reports 3Q02, Year-End 2002 Results; 2001 Restatement
TRENWICK GROUP: Fitch Lowers Debt Ratings


B R A Z I L

ACESITA: Promotes Products To Civil Engineers To Boost Sales
KLABIN: Two Local Firms Eye Acquisition
USIMINAS: Denies Report of Planned Debt Issue
VARIG/TAM: Seek Fresh Financing From Government
VESPER: Anatel Reaffirms Stand on Vesper Case


C H I L E

AES GENER: S&P Lowers Ratings; Outlook Negative
GUACOLDA: Refinancing Risk  Shifts CreditWatch to Negative
MADECO: Concludes Major Capital Restructuring
MANQUEHUE NET: Net Loss Widens In 2002
SANTA ISABEL: Ahold Defends Failure To Publish Earnings


E C U A D O R

ECUADORIAN BANKS: To Be Audited Before Liquidation Starts
PETROECUADOR: May Keep $40M in Expected Sales This Month


G U A T E M A L A

AHOLD: Vows to Retain Central American Operations


J A M A I C A

AIR JAMAICA: Cuts 90 Employees from Miami Division


M E X I C O

AZTECA HOLDINGS: Moody's Likely To Downgrade Ratings
CFE: First Projects of Poise Plan to Commence This Month
SAVIA: Bionova Updates Amex Regarding Listing, Other Matters
TV AZTECA: US Court Denies Echostar's Request


T R I N I D A D   &   T O B A G O

BWIA: Releases TT$1.5 Mln To Pay Dismissed Workers
BWIA: Cash Flow Problems Valid, Not Staged To Avoid Obligations
CARONI LTD.: Workers Who Accepted VSEP Demand Payment


U R U G U A Y

AHOLD: Court Hearings To Start Monday
* Uruguayan Bond Exchange Seeks Concessions From Investors


V E N E Z U E L A

PDVSA: Continues To Fire Workers As Production Resumes

     - - - - - - - - - -


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

AHOLD: South American Operations To Be Sold Off
-----------------------------------------------
Ahold announced Thursday its intention to divest its operations
in four South American countries - Brazil, Argentina, Peru and
Paraguay - in order to concentrate on its mature and most stable
markets and to generate funds to pay down debt. As announced on
February 5, 2003, the company is in current negotiations to
divest its holdings in Chile.

No timing has been set for any specific divestment as Ahold is
determined to negotiate transactions that maximize value. In
addition, Ahold intends to withdraw from the South American
market in a responsible way with respect to its customers,
associates and suppliers.

Commenting on the exit from South America, Theo de Raad, Ahold
Corporate Executive Board member responsible for Latin America
and Asia, said: "We will continue to fully support our operations
during this divestment process by ensuring that all our
obligations to suppliers continue to be met. We will also seek to
ensure that any new owners will continue to meet the obligations
to our current associates as well as the expectations of our
customers. Although we intend to proceed expeditiously with our
divestment plan, we are determined to maximize the value we
receive for these operations and obtain the best possible results
for all our stakeholders."

Brazil

In Brazil, Ahold plans to sell its three wholly-owned operations:
Bompre‡o, G. Barbosa and Hipercard. Ahold first entered Brazil in
1996. Operations in Brazil are profitable and unaudited net sales
in 2002 reached an estimated Euro 1.3 billion generated through
119 Bompre‡o and 32 G. Barbosa supermarkets and hypermarkets at
year-end. More than two million people hold the Bompre‡o
Hipercard, the leading customer credit card in the Northeast of
Brazil.

Argentina

In Argentina, Ahold intends to divest its wholly-owned subsidiary
Disco S.A., once the 2002 annual accounts have been signed off.
Ahold entered the Argentine market in 1998. Unaudited 2002 net
sales reached an estimated Euro 762 million, generated through
236 stores at year-end. The turbulent economic circumstances in
the country in recent years have led to a marked erosion of
buying power across all income groups. Despite the regional
slowdown, Disco is a strong competitor with substantial market
share.

Peru

In Peru, despite the double-digit growth of its business, Ahold
views the scale of the operations as small. Given the company's
intended withdrawal from its major South American markets, Ahold
plans to exit this market as well. Unaudited 2002 net sales
reached an estimated Euro 243 million, generated through 32
supermarkets and hypermarkets at year-end.

Paraguay

In Paraguay, Ahold plans to sell its 10 stores that generated
unaudited 2002 net sales of Euro 36 million.

CONTACT:  Royal Ahold
          Investor Relations:
          Huibert Wurfbain, 011-31-75-659-5813
          or
          Media Relations:
          Annemiek Louwers, 011-31-75-659-5720
          or
          Taylor Rafferty New York
          Media Relations:
          Ethan Sack, 212/889-4350
          or
          Taylor Rafferty London
          Media Relations:
          Matthew Nardella, + 44 20 7936 0400


PSEG: Exits Argentina Following Year Of Losses
----------------------------------------------
U.S. energy company Public Service Enterprise Group Inc. (PSEG)
abandoned Argentina increasing losses caused by rising debt costs
and frozen electricity rates, reports Bloomberg. The New Jersey-
based company owns Edeersa, an electricity generator in the
eastern province of Entre Rios.

"We're completely out of Argentina," said Public Service
spokesman Paul Rosengren. He said the move will have no effect on
the Company's earnings as it wrote off its US$212-million
investment in the business in the first quarter of last year.

PSEG's shares were transferred to an Argentine trust fund
benefiting current Edeersa employees, including existing
shareholders. The shares will remain in the trust fund for five
years, after which they will be distributed amongst Edeersa's 352
employees and board members according to a pre-determined
formula.

During the next five years Edeersa plans to renegotiate its
contract with the province of Entre Rios, restructure its US$80
million debt that expires in 2004 and streamline its operations
to better suit the country's economic situation, Edeersa
president Jaime Barba said.

Edeersa's management will create a corporate culture that will
educate the workers how to become responsible shareholders in the
company, Barba added.

Edeersa, which serves 235,000 clients in the Entre Rios province,
was PSEG's last remaining asset in Argentina, following a US$30
million out-of-court settlement in December with fellow US
company AES to sell 100% of its stakes in five jointly held
businesses in Argentina.


GAS NATURAL: Pays Part of $120M Debt, Balance Renegotiated
----------------------------------------------------------
Argentine natural gas distributor Gas Natural BAN made a US$12-
million payment on March 28 on a US$120-million loan held by
Spanish banks Banesto and La Caixa, reports Business News
Americas, citing a company a statement to the Buenos Aires stock
market. The statement also disclosed that the Company reached an
agreement with creditors to extend the expiry date of the
remaining amount to 2009.

According to the original terms of the loan, Gas Natural BAN was
to pay it back in four payments of US$30 million every six months
starting with the first payment March 30. However, in an
agreement reached March 21 with the banks, Gas Natural BAN
obtained extension on the expiry date of the remaining US$108-
million loan to March 30, 2009 at an interest rate of Libor plus
2.75%.

Gas Natural BAN's Spanish parent Gas Natural SDG will guarantee
the loan, the statement said.

"This support of [Gas Natural SDG] shows the company's continued
commitment to remaining in Argentina, and is a sign that we
expect the government to meet its obligations and provide the
financial conditions necessary for the company to obtain credit
and offer shareholders return on their investment," the statement
said.

Gas Natural's ability to meet its financial obligations has been
hampered by the deep economic recession in Argentina, the
pesification of the currency in January 2002, the frozen tariffs,
and the government's delay in renegotiating contracts with
electric sector companies.

The Company provides services to 2.14 million clients in its
Buenos Aires province concession area.


TGN: Local Standard & Poor's Rates Bonds `raD', Shares `4'
---------------------------------------------------------
The Argentine arm of Standard and Poor's International Ratings,
Ltd. rated several bonds issued by Transportadora de Gas del
Norte `raD' on Thursday, according to the official web site of
the National Securities Commission of Argentina.

The rating, which is issued to obligations in default and based
on the Company's financial health as of the end of December 2002,
affects the following bonds:

-- US$24 million worth of "Serie V, con vencimiento en junio de
2003, emitada bajo el programa Global de Ons simples (USD300 Mio)
vencido en 03.99", which comes due on June 1, 2004. These
classified as "Simple Issue."

-- described as "Serie Vi emitada bajo el Prorama Global de Ons
Simples por un monto de US$320 mm", due on September 1, 2008, and
classified under the type "Series and/or Class."

-- due on March 3. 2003, and described as "Serie VII, con
vencimiento en marzo de 2003, emitada bajo el Programa Global de
Ons simples (US$300 Mio)", also under "Simple Issue."

-- under "Series and/or Class", and described as "Serie I emitada
bajo el Programa Global de Ons Simples por un monto de US$320
million" worth a total of US$20 million.

-- "Serie II emitada bajo el programa Global de Ons Simples por
un monto de US$320 million" worth US$15435 million due on Aug1
2008.

-- US$10.7 million of "Serie III emitada bajo el programa Global
de Ons Simples por un monto de US$320 million". These were
classified under "Series and/or Class" and mature on July 1,
2009.

-- US$50 million worth of "Serie III, con vencimiento en octubre
de 2004, emitada bajo el Programa Global de Obligaciones simples
(USD 300 Mio) vencido en 03.99", due on October 1, 2004 and
classified under "Simple Issue."

-- US$9.3 million of "Serie IV emitada bajo el Programa Global de
Ons Simples por un monto de US$320 mm", classified under "Series
and/or Class" due on July 1, 2009.

-- US$40 million worth of "Serie IV, con vencimiento en junio de
2002, emitada bajo el Programa Global de Ons cimples (USD 300
Mio) vencido en 03.99" due on Jun 3, 2002.

At the same time, the Company's stocks described as "Acciones
Ordinarias en Circulacion Clases A y B de 1 voto c/u, V/N US$1"
were rated `4' by S&P.

CONTACT:  TRANSPORTADORA DE GAS DEL NORTE (TGN)
          Don Bosco 3672, (C120ABF) Buenos Aires, Argentina.
          Phone: (+54 11) 4959-2000
          Fax: (+54 11) 4959-2242
          Home Page: www.tgn.com.ar/



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

ANNUITY & LIFE: Year End 2002 Earnings Report Released
------------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR - News) today
reported financial results for the three and twelve month periods
ended December 31, 2002. The Company reported a net loss of
$(99,879,901) or $(3.88) per fully diluted share for the three
month period ended December 31, 2002 as compared to a net loss of
$(1,711,196) or $(0.07) per fully diluted share for the three
month period ended December 31, 2001. Net loss for the year ended
December 31, 2002 was $(128,887,285) or $(5.01) per fully diluted
share as compared to a net loss of $(40,581,431) or $(1.59) per
fully diluted share for the year ended December 31, 2001.

Click on link to see summary of some of the significant items
affecting the Company's results of operations:
http://bankrupt.com/misc/Items_affecting_results.htm

- (1) Baseline level was set at 80% of premium for each
respective period based on historical experience. This line does
not include the impact of novating or recapturing certain life
contracts in 2002. The impact of the World Trade Center tragedy
has been reflected separately above.

Net realized investment gains for the three month period ended
December 31, 2002 were $8,935,951 or $0.35 per fully diluted
share as compared with net realized investment losses of
$(195,145) or $(0.01) per fully diluted share for the three month
period ended December 31, 2001. Net realized investment gains for
the year ended December 31, 2002 were $19,749,266 or $0.77 per
fully diluted share as compared with net realized investment
gains of $1,230,038 or $0.05 per fully diluted share for the year
ended December 31, 2001. The substantial increase in net realized
investment gains during the three and twelve months ended
December 31, 2002 is attributable to the strong credit quality of
the Company's portfolio, declining interest rates and significant
sales from the Company's investment portfolio in connection with
the innovation, termination and recapture of a number of the
Company's reinsurance agreements and to meet the collateral
requirements of the Company's lenders.

The cumulative effect of a change in accounting principle, the
net change in fair value of embedded derivatives, and the change
in amortization of deferred acquisition costs related to embedded
derivatives reflected in the table above all relate to the
Company's application of FAS 133 - Accounting for Derivative
Instruments and Hedging Activities to its modified coinsurance
and coinsurance funds withheld agreements. The write downs of
deferred acquisition costs associated with the Transamerica
contract reflected in the table above were based on revisions to
the Company's assumptions regarding future performance of the
assets supporting its obligations under that contract and future
surrender rates on the underlying policies. Variable annuity
reserve strengthening of $10,740,000 in the fourth quarter of
2002 and $18,500,000 for the full year 2002 resulted from the
Company's increase in reserves for guarantees associated with the
Company's guaranteed minimum death benefit, guaranteed minimum
income benefit and enhanced earnings benefit contracts as a
result of increasing claim activity in recent quarters and the
continuing deterioration of the financial markets. This increase
in claims activity also resulted in claims in excess of premiums
earned of $3,620,153 and $5,791,853 on the Company's contracts
reinsuring such guarantees during the three and twelve month
periods ended December 31, 2002, respectively. The Company's
estimated losses of $12,000,000 associated with the World Trade
Center tragedy for the year ended December 31, 2001 ultimately
required $10,000,000 in actual death benefit payments.

On December 31, 2002, the Company entered into a transaction with
XL Life Ltd ("XL Life"), a subsidiary of XL Capital Ltd ("XL
Capital"), a related party, pursuant to which the Company
transferred certain blocks of life reinsurance business to XL
Life. The transaction enabled the Company to reduce a substantial
portion of its year-end collateral requirements under its
reinsurance agreements and to repay deposits received under a
reinsurance agreement to which the Company was a party. The
Company novated five blocks of life reinsurance business to XL
Life, which in turn entered into a 50% quota share reinsurance
contract with the Company with respect to four of those blocks of
business. As a result of the transaction, the Company incurred a
loss of $26,382,167, primarily as a result of a write down of
deferred acquisition costs of approximately $38.7 million (which
was partially offset by a net ceding commission paid by XL Life
to the Company of $18.0 million), a write off of prepaid expenses
of approximately $2.4 million and transaction costs of
approximately $3.2 million. The Company also incurred losses of
$10,435,461 in connection with the termination or recapture of
other reinsurance contracts during 2002, resulting from the write
down of deferred acquisition costs and cash payments made to
cedents net of reserve releases associated with those
terminations or recaptures.

The Company's net loss for the three and twelve months ended
December 31, 2002 was also significantly affected by adverse
mortality experience driven by an unexpected increase in the
number of reported claims during December 2002 and January 2003.
In addition to the increase in the number of claims, the
aggregate average claim size was 31% greater than expected. In
the table above, the Company has illustrated the adverse
mortality experience by presenting the amount of such claims that
exceeded a baseline level of 80% of premiums. This baseline level
is based on the Company's historical claims experience. The
Company increased its pending claim liabilities by $38,469,505 as
the result of this increased volume and size of reported claims.
While most of the reported claims are from deaths that occurred
in the fourth quarter of 2002, a significant percentage of these
claims relate to deaths in prior quarters of 2002. The Company's
detailed analysis of the claim activity indicated that the
incidence of late reported claims as a percentage of total
reported claims had increased during 2002. As a result of the
increase in the percentage of late reported claims identified by
the Company, the Company increased its reserves for incurred but
not yet reported ("IBNR") claims by approximately $4,000,000 in
the fourth quarter of 2002 to reflect a longer expected late
reporting period and a higher average death benefit.

During the year ended December 31, 2002, the Company hired an
investment adviser to assist it in raising capital, utilized
outside actuarial consultants, and incurred significant
incremental legal and accounting costs. The $6,337,475 and
$7,677,751 of unusual expense in the quarter and year ended
December 31, 2002, respectively, reflected in the table above
includes the unusual expenses charged by these service providers.
This amount does not include the expenses incurred in connection
with the XL Life transaction noted above.

Unrealized gains on the Company's investments declined slightly
to $6,162,525 as of December 31, 2002 as gains created by the
strong credit quality of the Company's portfolio and declining
interest rates were largely realized as a result of significant
sales from the Company's investment portfolio in connection with
the novation, termination and recapture of a number of the
Company's reinsurance agreements and to meet the collateral
requirements of the Company's cedents. The Company's investment
portfolio currently maintains an average credit quality of AA.
Cash (used) provided by operations for the three and twelve month
periods ended December 31, 2002 was $(20,164,100) and $7,562,344,
respectively. Book value per share at December 31, 2002 was
$10.28 compared to $15.65 at December 31, 2001.

Life Segment Results

Click on link to see summary of some of the significant items
affecting the Company's life segment results of operations:
http://bankrupt.com/misc/Items_affecting_life_segment.htm

- (1)Baseline level was set at 80% of premium for each respective
period based upon historical experience. This line does not
include the impact of novating or recapturing certain life
contracts in 2002. The impact of the World Trade Center tragedy
has been reflected separately above.

Life segment loss for the three months ended December 31, 2002
was $(71,034,773) or $(2.76) per fully diluted share as compared
to income of $6,643,380 or $0.26 per fully diluted share for the
three months ended December 31, 2001. Life segment loss for the
twelve months ended December 31, 2002 was $(67,181,153) or
$(2.61) per share as compared to a loss of $(2,269,886) or
$(0.09) per fully diluted share for the twelve months ended
December 31, 2001. During the fourth quarter of 2002, the Company
entered into a novation and retrocession agreement with XL Life
(mentioned above) from which it sustained a $26,382,167 loss.
Losses associated with recaptures of other contracts reflect the
write down of deferred acquisition costs and cash payments made
to cedents net of reserve releases associated with recaptures
executed in 2002. As discussed above, during the fourth quarter
of 2002 the Company experienced a significant increase in
reported claim volume and average claim size, resulting in an
increase in the Company's pending claim liabilities of
$38,469,505. The Company also initiated a detailed analysis of
claims activity and increased its IBNR reserves by approximately
$4,000,000.

Annuity Segment Results

Click link to see summary of some of the significant items
affecting the Company's annuity segment results of operations:
http://bankrupt.com/misc/Items_affecting_annuity_segment.htm

Annuity segment loss for the three months ended December 31, 2002
was $(33,191,784) or $(1.29) per fully diluted share as compared
to a loss of $(9,149,156) or $(0.36) per fully diluted share for
the three months ended December 31, 2001. Annuity segment loss
for the twelve months ended December 31, 2002 was $(78,246,399)
or $(3.04) per fully diluted share as compared to a loss of
$(47,148,884) or $(1.84) per fully diluted share for the twelve
months ended December 31, 2001. The cumulative effect of a change
in accounting principle, the net change in fair value of embedded
derivatives, and the change in amortization of deferred
acquisition costs related to embedded derivatives reflected in
the table above all relate to the Company's application of FAS
133 - Accounting for Derivative Instruments and Hedging
Activities to its modified coinsurance and coinsurance funds
withheld agreements. The write downs of deferred acquisition
costs associated with the Transamerica contract were based on
revisions to the Company's assumptions regarding future
performance of the assets supporting its obligations under that
contract and future surrender rates on the underlying policies.
Variable annuity reserve strengthening of $10,740,000 in the
fourth quarter of 2002 and $18,500,000 for the full year 2002
resulted from the Company's increase in reserves for guarantees
associated with the Company's guaranteed minimum death benefit,
guaranteed minimum income benefit and enhanced earnings benefit
contracts as a result of increasing claim activity in recent
quarters and the continuing deterioration of the financial
markets. Losses associated with terminations and recaptures of
contracts reflect the write down of deferred acquisition costs
and cash payments made to cedents net of reserve releases
associated with terminations and recaptures.

Jay Burke, Chief Executive Officer and Chief Financial Officer of
the Company, commented,

"2002 was a tough year for the Company. Our efforts to raise
capital early in the year were unsuccessful and our liquidity
position began to deteriorate as we continued to experience
losses in our annuity segment. These losses contributed to
downgrades of our ratings and ultimately limited our access to
additional funds under a reinsurance agreement that had been used
to satisfy the Company's collateral requirements in the past.
While trying to meet these challenges during the second half of
the year, our life segment began experiencing unexpected losses,
which further hampered our ability to raise capital and access
additional funds under the reinsurance agreement. The cumulative
effect of these factors forced us to novate certain life
reinsurance agreements and negotiate the termination or recapture
of other contracts in order to attempt to meet our year end
obligations to post collateral to our customers. These
transactions have significantly affected our book of business,
and we enter 2003 with a much smaller amount of in force
insurance than we had during most of 2002. In addition, certain
of the contracts that we have retained have historically
performed below our expectations.

"We incurred significant losses in the fourth quarter of 2002 in
connection with the novation, termination and recapture of
certain of our agreements, and we are still attempting to satisfy
additional collateral requirements now asserted by certain of our
customers of approximately $140 million. Substantially all of
that amount has been requested under our largest guaranteed
minimum death benefit contract and our largest guaranteed minimum
income benefit contract. We have not agreed with the computation
of the amount of collateral requested by our customers under
those contracts. We are also attempting to address requests from
our letter of credit providers to collateralize $58 million of
outstanding letters of credit.

"We hope that 2003 will be the year we stabilize the Company, but
we continue to face a number of difficult challenges. We are
continuing to seek to novate, terminate or negotiate the
recapture of additional blocks of business to address our
liquidity problems, but there can be no assurance that we will be
successful or that our remaining book of business will be
profitable. Lastly, as our investors would expect, we also
continue to evaluate all of our strategic alternatives."

Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.


ESG RE: Reports 3Q02, Year-End 2002 Results; 2001 Restatement
-------------------------------------------------------------
ESG Re Limited (ESREF.PK) reported the following:

-- restated results for the year ended December 31, 2001;
-- revised results for the quarter ended September 30, 2002 and
-- results for the year ended December 31, 2002.

RESTATEMENT OF 2001 RESULTS

In August 2002 we restated our financial statements for the year
ended December 31, 2001 as a result of our Foreign Currency
Translation account and filed an amended SEC Form 10-K for the
year 2001. In a press release dated December 23, 2002 and in an
SEC Form 8-K filed on December 27, 2002, we announced that we
anticipated a further restatement of our financial statements for
the year ended December 31, 2001 due to the accounting treatment
for a co-reinsurance contract entered into with ACE INA Overseas
Insurance Company Ltd. ("ACE"). We are now restating our 2001
results for this ACE adjustment and reporting a further amendment
in respect to the foreign currency translation account (See below
for more detailed discussion). The following table summarizes the
impact of these restatements on our financial results for the
year ended December 31, 2001:

                                   Foreign
                                   Currency
                          As      Translation   ACE
                       previously Restatement  Contract    As
                        reported             Restatement Restated
                      -------------------------------------------
                      U.S. dollars in thousands (except per share
                                              data)
Net premiums earned    $153,220           -     $3,677 $156,897
Loss and loss expenses  104,566           -      2,522  107,088
Acquisition costs        45,840           -      1,155   46,995
Other expenses           13,108      (4,559)         -    8,549

Net loss                (20,432)      4,559          -  (15,873)
Net loss per share       (1.73)       0.38          -    (1.35)

Total Assets            455,529           -     (1,422) 454,107
Total Liabilities       360,459           -     (1,422) 359,037
Shareholder's Equity    95,070           -          -   95,070

The amounts indicated above for the ACE contract are the same as
we reported in our December 2002 press release.

We anticipate filing an amended Annual Report on Form 10-K for
the year ended December 31, 2001 with the Securities and Exchange
Commission (the "SEC") to reflect these adjustments in the near
future.

Explanation of Restatement of Foreign Currency Translation

During the second quarter of 2002, we determined that foreign
currency translation adjustments, included in accumulated other
comprehensive income and other expenses, had been misstated by
$3,992 thousand due to the internal system that consolidates the
financial results of our subsidiaries. At the time we were unable
to determine the periods in which the adjustments should have
occurred. Therefore, we restated our financial statements for the
fiscal year ended December 31, 2001 in order to reflect a fourth
quarter adjustment to the foreign currency translation account.
The restated accounts were filed in our Annual Report on Form 10-
K (Amendment No. 3) filed on August 22, 2002.

Following further investigation, we have subsequently determined
that the adjustment of $3,992 thousand occurred in the following
years:

    U.S. dollars in thousands

    1999 $ 488

    2000 4,071

    2001 (567)

    $3,992

We have thus further restated our financial statements for the
fiscal year December 31, 2001 in order to reflect the correct
foreign currency translation adjustments, included in accumulated
other comprehensive income, other expenses, and consolidated
statements of changes in shareholders' equity. Accordingly, the
results reported on our amended Annual Report on Form 10-K/A
(Amendment No. 3) will differ from and not be comparable with the
results reported in our Annual Report being disseminated today.

The foreign currency translation account includes adjustments
arising from the process of translating the financial statements
of non-U.S. dollar subsidiaries into U.S. dollars. Assets and
liabilities of these subsidiaries are translated into U.S.
dollars at the exchange rate in effect at the balance sheet date.
Revenues and expenses ("statement of operations") for these
subsidiaries are translated into U.S. dollars using weighted
average exchange rates for the period. Retained earnings, share
capital and investments in subsidiaries are translated at
historic rates. Translation adjustments are included in the
equity section of the balance sheet.

Explanation of Restatement of Co-Reinsurance Agreement with ACE

We signed a co-reinsurance contract with ACE in November 2001
that became effective retroactively as of January 1, 2001. Under
SFAS 113, the premiums written during the retroactive period were
deemed to be written on our own account with the co-reinsurance
to ACE treated as a retroactive retrocession arrangement.
However, we did not show premiums earned, losses and loss
adjustment expenses and acquisition costs in our reported
revenues and expenses, in respect of the retroactive period, in
the third and fourth quarters of 2001 and the first and second
quarters of 2002. During the quarter ended September 30, 2002 we
restated our figures for the correct accounting treatment of this
contract. In accordance with SFAS 113, we did not recognize any
of the profits of the ACE share of the reinsurance contract in
our statement of operations and hence, there was no impact on our
reported net income or net loss in any affected period.

RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2002

The SEC Form 10-Q for the third quarter ended September 30, 2002
will be filed today. The results show an increase of $0.3 million
from the previously reported loss of $1.4 million to a total loss
of $1.7 million for the quarter. This increase was a result of a
write off of an amount owing from a Latin American cedant.

The accounting disagreements cited by Deloitte & Touche after
their resignation on November 22, 2002 have been resolved by the
Company in conjunction with our newly appointed auditors, BDO
International. None of these disagreements impacted the results
of the third quarter of 2002. For further information in respect
to the resolution of these issues please refer to our Annual
Report and Consolidated Financial Statements for the years ended
December 31, 2002 and December 31, 2001. Our Annual Report and
audited Consolidated Financial Statements for the years ended
December 31, 2002 and December 31, 2001 will be available on our
website (www.esg-world.com) on March 31, 2003.

RESULTS FOR THE YEAR ENDED DECEMBER 31, 2002

The financial results for year 2002 show an overall loss of $51.2
million. This loss was primarily the result of:

    -- A technical underwriting loss of $16.4 million stemming
       from:

       - Deterioration in the results for the legacy
         underwriting years of 1997, 1998, 1999 and 2000 of
         $24.0 million, primarily from losses on Norwegian
         personal accident business written by the former
         Chief Marketing Officer from our now closed German
         operation;

         and

       - $5.1 million as a result of a write-off of deferred
         acquisition costs on an Australian contract that was
         terminated by a client solely due to the rating
         downgrade in November resulting from the resignation
         of Deloitte & Touche.

                          and

    -- Administrative costs of $42.1 which were adversely
       impacted by a number of non-recurring events:

       - An increase of $6.8 million in the legal reserve as a
         result of recent developments for various matters in
         arbitration and litigation.

       - A foreign exchange loss of $3.8 million in the second
         quarter as a result of the adverse movement of the
         Norwegian Kroner against the U.S. Dollar.

       - An increase in legal and audit fees of approximately
         $2.0 million associated with the restatement of prior
         periods for the foreign exchange translation account and
         the Deloitte resignation.

       - Taxation charges of $1.5 million including the write
         down of a deferred tax asset in the amount of $1.3
         million.

Investment income amounted to $7.1 million for the year
representing a yield of 5.6% on the average portfolio of $126.6
million.

Management fee income amounted to $2.3 million, consisting
primarily of fees earned on those premiums managed on behalf of
our co-reinsurers.

The year 2002 resulted in an overall net loss of $4.32 per share.

In assessing 2002, Alasdair Davis, CEO, stated that "We have now
completed the implementation and where necessary the
reimplementation of the infrastructure systems and processes to
support the Company. Working through the legacy issues has taken
one year longer than we originally anticipated. We are at a point
where the open treaties for the early underwriting years are less
than two dozen. We now feel we are at a point where the remaining
legacy liabilities are known and quantified. Treaty matters in
litigation and/or arbitration are significantly fewer in number
than this time one year ago."

Looking forward, Mr. Davis continued by saying that "Our focus in
2003 is in the production and retention of business that meets
not only our profit criteria but also our requirements for
win/win business partnerships." Mr. Davis took the opportunity to
thank both our current clients and employees for standing firm
with the Company through the last several difficult months. He
commented that our balance sheet is solid and our capital is
sufficient for the business we want to write in 2003. The plan is
to achieve a breakeven financial result in 2003 and we are on
course to meet this objective for the year.

Recent Developments

Market Information

From December 12, 1997 to November 20, 2002, our common stock was
traded on NASDAQ under the symbol ESREF. On November 20, 2002,
the trading symbol was changed to ESREE to reflect the unfiled
status of our Quarterly Report on SEC Form 10-Q for the quarter
ended September 30, 2002.

On November 25, 2002, the Company received a Nasdaq Staff
Determination letter indicating that, as a result of the
Company's failure to timely file its Report on SEC Form 10-Q for
the period ended September 30, 2002, the Company's securities
would be delisted from the Nasdaq Stock Market Inc., effective at
the opening of business on December 3, 2002. The Company
requested an oral hearing before a Nasdaq Listing Qualifications
Panel (the "Panel") to review the Staff Determination, which
request stayed the delisting of the Company's securities.
Thereafter, on December 17, 2002, the Company was notified that
it failed to maintain a closing bid price of at least $1.00 per
share for 30 consecutive trading days, and that it should discuss
its plan to remedy that additional deficiency at the hearing. The
hearing was held on December 20, 2002. By letter dated January
31, 2003, the Company was advised that the Panel had determined
that the Company's securities would be delisted from The Nasdaq
Stock Market effective with the opening of business on Tuesday,
February 4, 2003. The reason given for the decision was the
failure to timely file the Company's quarterly report on SEC Form
10-Q for the quarter ended September 30, 2002. In addition, the
Panel cited as a reason for its delisting decision, the Company's
failure to file any of the amendments to previously filed reports
under the Securities Exchange Act of 1934, as amended, for any of
the anticipated restatements of certain information in its
financial statements. Nasdaq's delisting decision will not be
appealed.

On March 17, 2003 we filed with the SEC our certification on SEC
Form 15 to deregister our common stock under the Securities
Exchange Act of 1934, as amended ("the Exchange Act"). Upon
filing, our obligations to file reports SEC Form 10-K, SEC Form
10-Q and other periodic reports that were not yet due was
immediately suspended. Our certification to deregister is
expected to become final within 90 days of filing. If the SEC
determines to deny our certification within such 90 day period,
we would have 60 days to bring all periodic reports due current.

We intend to continue to make available to our shareholders
quarterly and annual financial information in substantially the
same form as presently made available. We also intend to
generally comply with the corporate governance regulations and
guidelines that would be applicable if our common stock was still
registered under the Exchange Act and listed on Nasdaq.

The Company's securities are being quoted through the Pink Sheets
stock quotation service. We anticipate that Carr Securities
Corp., Port Washington, NY, and Morgan Keegan & Co., Inc.,
Birmingham, AL, will continue to quote our common stock although
no assurance can be made that any market maker will continue to
quote ESG's common stock or that a trading market will develop.

Appointment of Director

On March 7, 2003, Mr. Peter Collery was appointed as a non-
executive director. Mr. Collery is currently President of SC
Fundamental ICC, which manages the SC Fundamental Value Fund
Common Shares. This fund and its affiliates own 10.6% of our
outstanding Common shares.

Odyssey Re

In February 2000, Odyssey Re (Sphere Drake) instituted an action
in England against a broker, Stirling Cooke Brown, and others,
alleging fraud and conspiracy on the reinsurance placement of
1997 and 1998 Personal Accident and Workers Compensation "carve
out" business with Odyssey Re (Sphere Drake). During 1998, ESG
accepted a 25% quota share reinsurance treaty with Odyssey Re
(Sphere Drake). This treaty with Odyssey Re (Sphere Drake)
terminated as of December 31, 1998, but we renewed our
participation for 1999 directly with the underwriting agent
involved in the 1998 year. In December 1999, we gave notice to
rescind our contract with Odyssey Re (UK) for misrepresentation
and failure to disclose material facts. On November 29, 2000, we
filed suit in the High Court to seek a judicial confirmation of
our rescission. On February 5, 2001, Odyssey Re (Sphere Drake)
filed a response. In December 2002, Odyssey Re (Sphere Drake)
accepted our rescission of this treaty in return for a
contribution to its legal fees. Therefore, we have no further
liability on this contract.

We have also given notice we intend to rescind the 1999 account.
This matter is in discovery and is now set for arbitration in
late 2003. The outcome of the pending litigation between Odyssey
Re (Sphere Drake) and Stirling Cooke Brown and others will have
an impact on this arbitration.

Comparative Results

For the three months ended December 31, 2002, we had a net loss
of $24.7 million compared to a net loss of $6.1 million for the
fourth quarter of 2001. The net loss per share for the three
months ended December 31, 2002 was $2.09 compared with a net loss
per share of $0.52 for the fourth quarter 2001. The net operating
loss for the fourth quarter 2002, which excludes realized
investment gains, was $2.15 per share. Net operating loss for the
fourth quarter 2001, which excludes realized investment gains and
losses and loss on equity investments, was $0.25 per share.

For the year ended December 31, 2002, we had a net loss of $51.2
million compared to a net loss of $15.9 million for the year
ended December 31, 2001. The net loss per share for the year
ended December 31, 2002 was $4.32 compared with a net loss per
share of $1.35 for the year ended December 31, 2001. The net
operating loss for the year ended December 31, 2002, which
excludes realized investment gains/losses, was $4.28 per share.
Net operating loss for the year ended December 31, 2001, which
excludes realized investment gains and losses and loss on equity
investments, was $0.86 per share.

Premiums

For the three months ended December 31, 2002, we underwrote a
book of $26.9 million of gross premiums, of which $(0.7) million
related to co-reinsurers and $1.7 million was retroceded, thereby
assuming $25.9 million for our own account. For the three months
ended December 31, 2001, we underwrote a book of $59.6 million
gross premiums, of which $21.4 million related to co-reinsurers
and $0.4 million retroceded, thereby assuming $37.8 million for
our own account.

For the year ended December 31, 2002, we underwrote a book of
$117.2 million of gross premiums, of which $(9.0) million related
to co-reinsurers and $14.1 million was retroceded, thereby
assuming $112.1 million for our own account. For the year ended
December 31, 2001, we underwrote a book of $181.7 million gross
premiums, of which $47.3 million related to co-reinsurers and
$20.8 million was retroceded, thereby assuming $113.6 million for
our own account.

Revenues

Total revenues for the three months ended December 31, 2002 were
$35.5 million, consisting of net premiums earned of $32.8
million, net investment income of $1.6 million, net realized
investment gains of $0.7 million and management fee revenue of
$0.4 million. For the three months ended December 31, 2001, total
revenues were $47.7 million, consisting of net premiums earned of
$47.3 million, net investment income of $2.9 million, realized
investment losses of $3.2 million, and management fee revenue of
$0.6 million.

Total revenues for the year ended December 31, 2002 were $143.6
million, consisting of net premiums earned of $134.7 million, net
investment income of $7.1 million, net realized investment losses
of $0.5 million and management fee revenue of $2.3 million. For
the year ended December 31, 2001, total revenues were $164.2
million, consisting of net premiums earned of $156.9 million, net
investment income of $12.2 million, realized investment losses of
$5.7 million and management fee revenue of $0.9 million.

Expenses

For the three months ended December 31, 2002, expenses were $58.7
million, consisting of $25.4 million of losses and loss expense,
$16.4 million of acquisition costs, and $16.9 million of
operating expenses. Total expenses for the three months ended
December 31, 2001 were $55.1 million, consisting of $35.0 million
of losses and loss expenses, $13.0 million of acquisition costs,
and $7.1 million of operating expenses.

For the year ended December 31, 2002, expenses were $193.2
million, consisting of $101.4 million of losses and loss expense,
$49.8 million of acquisition costs, and $42.1 million of
operating expenses. For the year ended December 31, 2001,
expenses were $181.4 million, consisting of $107.1 million of
losses and loss expenses, $47.0 million of acquisition costs, and
$27.3 million of operating expenses.

The increase in operating expenses for the three months and year
ended December 31, 2002, is primarily due to (i) an increase in
our legal reserve of $6.8 million, (ii) increase audit and
professional fees of approximately $2.0 million resulting from
the resignation of Deloitte & Touche and (iii) foreign exchange
losses of $3.8 million arising in the first six months of the
year due to the strengthening of the Norwegian Kroner against the
U.S. Dollar.

During the third quarter 2002 we initiated a foreign exchange
hedging strategy and policy designed to minimize the impact of
currency rate fluctuations on our balance sheet.

Book Value

At December 31, 2002, total assets were $396.9 million and
shareholders' equity was $46.7 million, or $4.20 per common
share. At December 31, 2001, shareholders' equity was $95.1
million or $8.04 per common share.

Operating Ratios

ESG Reinsurance

The loss and acquisition expense ratios for the three months
ended December 31, 2002 and 2001, were 114.7% and 106.3%,
respectively.

The combined ratio for the three months ended December 31, 2002
was 167.3%, compared to 129.9% for the three months ended
December 31, 2001. The operating expense ratio for the fourth
quarter 2002 was 52.6%, compared to 23.6% for the fourth quarter
2001.

The loss and acquisition expense ratios for the years ended
December 31, 2002 and 2001, were 115.4% and 101.3%, respectively.

The combined ratio for the year ended December 31, 2002 was
144.7%, compared to 119.2% for the year ended December 31, 2001.
The operating expense ratio for the year 2002 was 29.3%, compared
to 17.9% for the year 2001.

ESG Direct

The loss and acquisition expense ratios for the three months
ended December 31, 2002 and 2001, were 170.1% and 37.3%
respectively. The increase in the 2002 loss ratio results solely
from the termination of the Australian contract and resulting
write off of deferred acquisition costs.

The combined ratio for the three months ended December 31, 2002
was 221.8%, compared to 71.7% for the three months ended December
31, 2001. The operating expenses ratio for the fourth quarter
2002 was 51.7%, compared to 34.4% for the fourth quarter 2001.

The loss and acquisition expense ratios for the years ended
December 31, 2002 and 2001 were 97.0% and 74.1% respectively.

The combined ratio for the year ended December 31, 2002 was
137.1%, compared to 111.1% for the year ended December 31, 2001.
The operating expense ratio for the year 2002 was 40.1%, compared
to 37.0% for the year 2001.

Audited Financial Statements

BDO International has completed their audit of the 2002 and 2001
Consolidated Financial Statements and has expressed an
unqualified opinion. The Annual Report and audited Consolidated
Financial Statements will be available on our website (www.esg-
world.com) on March 31, 2003.

Annual General Meeting of Shareholders

The shareholders will receive a copy of the 2002 and 2001 Annual
Report and audited Consolidated Financial Statements, along with
the notice of the Annual General Meeting, proxy statement and
form of proxy, at the end of June in connection with the annual
general meeting of shareholders. This meeting is tentatively
scheduled for August 4, 2003.

Further Information

The Company will respond to questions submitted in relation to
these year 2002 results. Please contact Investor Relations.

ESG Re Ltd provides medical, personal accident, credit life,
disability and special risks re-insurance to insurers and
selected re-insurers on a worldwide basis. The company
distinguishes itself from its competition by offering re-
insurance products and services that help its ceding clients to
manage their risks more effectively. ESG provides solutions to
specific underwriting problems, actuarial support, product design
and loss prevention.

ESG is building on its reinsurance expertise by developing its
direct marketing business. ESG will deliver innovative business
opportunities and client focused solutions to its affinity
partners using distribution methods such as direct mail,
telemarketing and bancassurance.

Uncertainties related to forward looking statements: Certain
statements and information included in this Press Release
constitute "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934 as amended.
These statements express our intentions, strategies, or
predictions for the future. Forward looking statements in this
Press Release include, among other things, statements regarding:

-- the ongoing adequacy of our loss reserves;

-- our continuing ability to increase premium rates and
strengthen terms of trade in the North and Latin American markets
without major loss of business;

-- our 2003 business plan;

-- the anticipated growth in ESG Direct segment in Asia and
Europe;

-- possible sale of 4Sigma investment;

-- no further reduction of Fitch rating;

-- our assumptions relating to foreign exchange adjustments,
losses associated with Norwegian contracts and the ACE contract;

-- the impact of rate increases on premiums written over the 2002
underwriting year;

-- a continuing market for our common shares; and

-- recent communications with the SEC.

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

CONTACT:     ESG Re Limited
             Alasdair Davis
             Chief Executive Officer
             Tel:  +353 1 675 0200
             e-mail: alasdair.davis@esg-world.com
             or
             ESG Re Limited
             Alice Russell
             Investor Relations
             Tel:  +353 86 819 2945
             e-mail:  alice.russell@esg-world.com


TRENWICK GROUP: Fitch Lowers Debt Ratings
-----------------------------------------
Fitch Ratings cut its long-term and senior debt rating on
Trenwick America Corp. (TAC) to 'D' from 'C'. In addition, Fitch
has lowered its long-term ratings on Trenwick Group, Ltd.
(Trenwick) and LaSalle Re Holdings, Ltd, (LaSalle Re) to 'D' from
'C'. Fitch's 'C' ratings on Trenwick's LaSalle Re Holdings, Ltd.
(LaSalle Re) subsidiary and Trenwick Capital Trust I's (TCT)
capital securities are unchanged.

Fitch's rating action follows yesterday's announcement by TAC
that it has defaulted on interest and principal payments on $75
million of senior unsecured debt. Fitch's 'D' rating indicates
that Fitch believes that TAC's senior note holders' recovery
value is unlikely to exceed 50 percent.

In November 2002, in accordance with instrument covenants, TCI
elected to defer distributions on its outstanding capital
securities. The deferral was made in accordance with instrument
covenants and the deferral period may extend for five years.
Within this deferral period, Fitch does not consider non-payment
an event of default. At the same time, LaSalle Re elected to
suspend dividends on its preferred stock. Fitch does not consider
non-payment of preferred dividends a default. As a result,
Fitch's ratings on TCT's capital securities and LaSalle Re's
preferred stock remain 'C'.

If Trenwick or any of its subsidiaries file for bankruptcy,
receivership or similar reorganization, Fitch will lower its
ratings on TCI's capital securities and LaSalle Re's preferred
stock to 'D'.

Note: These ratings were initiated by Fitch as a service to users
of Fitch ratings. The ratings are based primarily on publicly
available information.

Entity/Type/Issue          Action     Rating

Trenwick Group, Ltd.
--Long-term                Downgrade  'D'.

Trenwick America Corp.
--Long-term                Downgrade  'D';
--Senior debt              Downgrade  'D'.

LaSalle Re Holdings, Ltd.
--Long-term                Downgrade  'D';
--Preferred stock          No action  'C'.

Trenwick Capital Trust I
--Preferred capital sec    No action  'C'.

CONTACT:     Fitch Ratings
             Mark E. Rouck CPA, CFA, 312/368-2085
             Michael J. Barry, 212/908-0621
             James Jockle, 212/908-0547 (Media Relations)



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

ACESITA: Promotes Products To Civil Engineers To Boost Sales
------------------------------------------------------------
Brazilian stainless steel maker Acesita is attempting to boost
its sales in the civil construction market this year. As part of
the effort, the Company is trying to push the use of its products
in civil construction projects.

Citing business daily Gazeta Mercantil, Business News Americas
relates that the civil construction market absorbed only 315t of
Acesita's stainless steel products last year, and accounted for
1-2% of the Company's production.

"The percentage appears small when compared to the total volume
of sales, but it represents an increase of 10 to 20 times
compared to the size of this market for Acesita today," Mauro
Patricio, the steelmaker's head of sales, was quoted as saying.

In the past, the Company has been pushing the use of stainless
steel in distilleries and automobiles, among others. This year,
the Company expects a recovery in the stainless steel market
after demands slumped by 2.4% last year. Demand is expected to
grow slightly both in the European and Asian markets.

Belo Horizonte-based Acesita, controlled by European steel group
Arcelor, has installed capacity of 850,000t/y of liquid steel and
is South America's only stainless steelmaker.

CONTACT:  Acesita SA
          Av Joao Pinheiro, 580
          Centro
          30130-180 Belo Horizonte - MG
          Brazil
          Phone: +55 31 3235-4211
          Fax:  +55 31 3235-4300
          Home Page: http://www.acesita.com.br
          Contacts:
          Valmir Marques Camilo, Chairman
          Bruno Le Forestier, Vice Chairman
          Jean-Yves A. Aime Gilet, Member


KLABIN: Two Local Firms Eye Acquisition
---------------------------------------
Brazilian paper goods company Klabin S.A. is being courted by two
potential buyers for its Riocell pulp plant valued by analysts at
about US$400 million. According to Reuters, local paper and pulp
firms Suzano and Aracruz Celulose have expressed their interest
in the acquisition and said they are studying the planned sale.

"We are going to be analyzing (the Riocell sale) this week and we
will make a decision on the basis of our analysis," Murilo
Passos, the director of Suzano, told Reuters by phone on Tuesday.

Carlos Aguiar, the president of Aracruz, the world's biggest
producer of bleached eucalyptus pulp, said his company was likely
to participate in the sale process.

"As it is not a very large amount of money, Aracruz has its own
capital and can raise funds abroad if necessary," Aguiar said.

Klabin has said it wants to sell assets to raise some US$300
million to help pay off debts which have hurt the Company's
bottom line. The firm's shares have rallied strongly this year on
hopes the sale will be carried out soon.

CONTACT:  KLABIN
          Ronald Seckelmann, Diretor Financeiro e de RI
          Luiz Marciano Candalaft, IR Manager
          Tel: (11) 3225-4045
          Email: marciano@klabin.com.br


USIMINAS: Denies Report of Planned Debt Issue
---------------------------------------------
A spokesperson from Brazilian flat steelmaker Usiminas denied a
report from AE Setorial News Services indicating that the Company
is preparing a US$350-million debt issue to finance coal exports.

"Usiminas is not preparing to raise US$350mn to import coal. In
fact, this is the value that the Usiminas group should pay
throughout 2003 to buy coal, but the resources come from the
company's cash flow," Usiminas spokesman Paulo Paiva was quoted
by Business News Americas on Thursday.

Mr. Paiva clarified that the Company is not planning to make any
debt issues this year.

However, he clarified that Usiminas subsidiary, Cosipa, is indeed
planning a BRL350 million debt issue some time this year. AE
Setorial's report indicated that Cosipa is waiting for a prepaid
export finance issue of US$150 million that is being prepared by
a group of banks led by Banco do Brasil.

Usiminas has a total of BRL9.5 billion (US$2.7 billion) in debt
as of the end of last year.

CONTACT:  Usinas Siderurgicas de Minas Gerais Usiminas PN A
          Rua Prof. Jose Vieira de
          Mendonca, 3011
          Engenheiro Nogueira
          31310-260 Belo Horizonte - MG
          Brazil
          Phone:  +55 31 3499-8000
          Fax:  +55 31 3499-8475
          Home Page:  http://www.usiminas.com.br
          Contact:
          Jose Augusto Muller de Oliveira Gomes, Chairman


VARIG/TAM: Seek Fresh Financing From Government
-----------------------------------------------
While awaiting completion of a merger, Brazilian airlines Varig
and TAM are in talks with the government so that its state-run
creditors could lend it fresh cash or renegotiate current loans
to help them stay afloat, reports Reuters.

Alberto Fajerman, Varig's vice president for planning and the
airline's acting chief executive during the merger talks,
emphasized the need for financing so that they can comply with
the government's request to suspend the planned layoff of 2,000
workers.

"The agreement (to suspend layoffs) will only make sense if a
group of measures follow it and the government guarantees that we
stay alive until the merger," Fajerman said.

He added that the government could give Varig a bridge loan or
ask government creditors like Banco do Brazil or BR
Distribuidora, which supplies fuel to Varig, to extend the
maturity of its debt.

The sources familiar with the situation said TAM, Brazil's
second-largest airline, was also in talks to win government help
after it curtailed part of its layoff of 470 people.

Citing an unnamed source directly involved with the merger,
Reuters reports that Brazil's National Social and Economic
Development Bank (BNDES), which had so far only taken an
observational role, would begin taking an active part in the
negotiations.

TAM and Varig are expected to come up with a merger proposal in
30 days.

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

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br


VESPER: Anatel Reaffirms Stand on Vesper Case
---------------------------------------------
Anatel, Brazil's telecoms regulator, affirmed its earlier ruling
that it will not allow local competitive exchange carrier Vesper
to operate three mobile licenses on its existing infrastructure,
according to Valor Online.

Business News Americas reports that Vesper allegedly assumed that
it could use its license on the 1900MHz band for "secondary"
operation on top of its fixed wireless services.

However, Anatel Chairman Luiz Schymura reiterated that the
bidding rules for the licenses "made clear the obligation to use
the 1800MHz band to the companies which purchased the licenses."

Last month, the Company threatened to pull out its GSM technology
if Anatel will not permit it to operate its licenses in the
1900MHz band. A more recent report from the Troubled Company
Reporter - Latin America indicated that the Company is concerned
that its business model will collapse if it does not use the
1900MHz band, as analysts predicted.

Earlier this month, Communications Minister Miro Teixeira said
that Anatel is partly to blame for the Company's difficulties.
The government official also accused Anatel of "making solitary
decisions resulting in the loss of technological neutrality."

However, an earlier Business News Americas report quoted Mr.
Schymura as saying, "I am not in the least bit sensitive to
financially troubled companies. The total focus always has to be
the end-user."

CONTACT:  Qualcomm Inc
          5775 Morehouse Dr.
          San Diego, CA 92121-1714
          Phone: 858-587-1121
          Fax: 858-658-2100
          Web: http://www.qualcomm.com
          Contact:
          Dr. Irwin M. Jacobs, Chairman & Chief Executive



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

AES GENER: S&P Lowers Ratings; Outlook Negative
-----------------------------------------------
Standard & Poor's Ratings Services lowered Thursday its ratings
on Chile-based power generator AES Gener S.A. (AES Gener) to 'B'
from 'B+', reflecting continuing delays in strengthening the
company's weak liquidity position. The ratings are removed from
CreditWatch negative, where they were placed on May 2002. The
outlook is negative.

"AES Gener's maturity schedule, the exercise of debt put options
against the company in 2002 and its very limited access to credit
have put significant pressure on the company's liquidity since
the second half of 2002," said credit analyst Sergio Fuentes.
"The downgrade reflects Standard & Poor's opinion that the delay
in completing some asset sales that were expected to alleviate
this situation and to help the company face interest and debt
payments for approximately $90 million from April to December
2003, have further constrained financial flexibility," continued
Mr. Sergio Fuentes.

Although Standard & Poor's does not expect the company to default
on interest or debt maturities, AES Gener is expected to continue
to have restricted access to credit sources. Consequently, there
are still many challenges for AES Gener to strengthen its
liquidity and overcome the hurdles of its 2003 maturities.

AES Gener is the second-largest power generator in the Chilean
electricity market, accounting for almost 20% of the country's
total generating capacity.

ANALYSTS:  Sergio Fuentes, Buenos Aires (54) 114-891-2131
           Marta Castelli, Buenos Aires (54) 114-891-2128


GUACOLDA: Refinancing Risk  Shifts CreditWatch to Negative
----------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it has
placed its 'BBB-' corporate credit rating on Chilean power
generator Empresa El‚ctrica Guacolda S.A. (Guacolda) on
CreditWatch with negative implications due to the refinancing
risk of US$87 million debt maturities (net from repurchased debt)
that are due on April 29 and 30, 2003.

"Standard & Poor's expected Guacolda to close a refinancing
package well in advance of the April maturities. However, market
conditions have delayed the completion of this process,
substantially increasing refinancing risk," said credit analyst
Sergio Fuentes. "We understand that Guacolda is advanced in the
negotiations with different funding sources, but the ratings will
remain on CreditWatch until a solution is achieved.

While the outlook will return to stable if the company's debt is
successfully refinanced, the ratings could be lowered if this
does not happen very soon," continued Mr Fuentes.

Guacolda is a relatively small, 304MW coal-fired power generator
located in the northern region of Chile's Central Interconnected
System (SIC). The company has been applying excess cash flows to
debt reduction during the last years as evidenced by the fact
that total financial debt has decreased to US$192 million as of
December 2002 from US$215 million as of December 2001. However,
Guacolda's leverage remains at high levels (62.9% as of December
2002), mainly as a result of the continuing devaluation of the
Chilean peso. Apart from the net US$87 million maturing in 2003,
the company does not face other significant maturities since the
rest of its debt (US$37.3 million local market bonds and a
US$48.8 outstanding debt with Mitsubishi Corp.) amortizes
semiannually and the payments can be reasonably met with cash
flow.

ANALYSTS:  Sergio Fuentes, Buenos Aires (54) 114-891-2131
           Marta Castelli, Buenos Aires (54) 114-891-2128


MADECO: Concludes Major Capital Restructuring
---------------------------------------------
Madeco S.A. ("Madeco") (NYSE ticker: MAD) announced that the
capital restructuring process has concluded on April 1st, 2003.
On March 4th, 2003, the Company's largest shareholder - Qui¤enco
S.A. and its subsidiary, Inversiones Rio Grande S.A. - subscribed
and paid a total of approximately CLP$49,400 million of the
capital increase or 2,058,353,810 shares at CLP$24 per share. On
that same day, the Company paid to its bank lenders a total of
CLP$28,841 million. The remaining 70% of the debt was rescheduled
for a period of seven years, which includes a grace period of
three years. The applicable interest rates are TAB (Chilean
Inter-bank rate) plus 175 basic points for loans denominated in
UF and LIBOR plus 220 basic points for loans denominated in US
dollars.

During the pre-emptive rights offering period and the three days
after, that ended on March 22, 2003, the Company received an
additional amount of CLP$1,914 million (equivalent to 79,743,935
shares), from shareholders as part of the capital increase.
After the aforementioned period, Madeco initiated the Bond
capitalization process, that ended on March, 31, 2003. The
following table shows the total Bonds rescued by the Company,
which were paid 50% in cash and 50% in shares (at CLP$24 each):

Bond Serie #      of Bonds     Total Amount   Total Amount
                  rescued        (in UF)       (in CLP$)

A                     150        317,742.4   5,332,861,356
C                      15        125,193.0   2,101,189,221
Total                            442,935.4   7,434,050,577

Therefore, the additional number of shares subscribed and paid in
the Bond capitalization process totaled 154,876,051, equivalent
to CLP3,717 million.

In conclusion, the total number of shares subscribed and paid in
the Company's capital increase was 2,292,973,796. As a result,
the number of shares outstanding as of April 1, 2003 is
2,698,484,824.

Madeco S.A. announced that it has received notification from the
New York Stock Exchange ("NYSE") of its non-compliance with the
exchange's requirements for continued listing because its average
market capitalization was less than $15 million over a 30
trading-day period ("minimum market capitalization"). However, as
a result of its restructuring, Madeco S.A.'s market
capitalization is now above the NYSE continued listing standard
of minimum market capitalization and still subject to ongoing
monitoring and review by the NYSE.

The Company further announced that it has been notified by NYSE
that it continues to be in non-compliance with the exchange's
minimum security price listing requirement which requires
Madeco's America Depositary Receipts ("ADRs") to have an average
closing price of not less than $1.00 over any 30-trading-day
period ("minimum security price"). However, the Company's
management intends to effect a ratio change of its ADRs within 3
or 4 weeks from now, and thereby work to increase the market
price of its ADRs.

The Company has decided not to make the Rights Offering available
to holders of American Depositary Shares, or "ADSs", based on a
New York Stock Exchange exemption which allows an issuer to
exclude ADS holders in such an offering where it is impracticable
or unduly expensive for that Company to offer those rights to
U.S. holders of ADSs.

Neither the Rights Offering transaction nor the shares to be
offered and sold in that offering are registered under the U.S.
Securities Act of 1933 nor under any U.S. state securities laws.
The shares will be offered and sold in a transaction outside the
United States and will be offered and sold only to Non-U.S.
Persons in accordance with Regulation S under the Securities Act.

Madeco, formerly Manufacturas de Cobre MADECO S.A., was
incorporated in 1944 as an open stock corporation under the laws
of the Republic of Chile and currently has operations in Chile,
Brazil, Peru and
Argentina. Madeco is a leading Latin American manufacturer of
finished and semi-finished non-ferrous products based on copper,
copper alloys and aluminum. The Company is also a leading
manufacturer of flexible packaging products for use in the
packaging of mass consumer products such as food, snacks and
cosmetics.

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


MANQUEHUE NET: Net Loss Widens In 2002
--------------------------------------
Chilean multi-service telecoms provider Manquehue Net posted a
2002 net loss of CLP23.7 billion (US$32.8mn today), doubling its
CLP11.7-billion loss in the previous year, Business News Americas
reports, citing results published by the local stock exchange
regulator SVS.

The Company saw revenues improve 7% to CLP29 billion in 2002 on
the strength of heavy infrastructure spending in 2000 and 2001.

CEO Jorge Troncoso expects Manquehue to continue in the red this
year, but sees the Company turning a profit in 2004.

Manquehue has a client base of about 70,000 and according to
Troncoso, it will now concentrate on improving client loyalty and
average revenue per user by forming alliances with companies from
various sectors and developing broadband products.

Therefore, the Company will limit client growth this year to
about 10%, making use of some 20,000 idle lines, Troncoso told
local daily El Diario.

Manquehue has a 6% share of the broadband market and aims to
increase that share after upgrading its ADSL infrastructure.
Troncoso expects the upgrade to increase transmission capacity by
a factor of five, which will better position the Company for
corporate services.

Manquehue is owned by local gas company Metrogas (25.54%), US-
based Williams Communications (23.52%), Capital Trust (19.14%),
Chile's Rabat Group (19.13%) and Xycom (12.67%). The Company
provides local telephony, corporate telephony, broadband and
dial-up Internet services.

CONTACT:  MANQUEHUE NET S.A.
          Av. Condor 796, Enterprise City,
          Huechuraba Santiago Chile
          Phone: 00 562 243 8800
          Fax: 00 562 248 7292
          EMAIL: info@manquehue.netl
          Home Page: http://www.manquehue.net/
                     http://www.manquehue.cl
          Contact:
          Mr. Miller Williams, President
          Sr.Jos, Luis Rabat Vilaplana, Vice President


SANTA ISABEL: Ahold Defends Failure To Publish Earnings
-------------------------------------------------------
Dutch retailer Ahold offered an explanation for its failure to
publish 2002 earnings at the Stock and Securities
Superintendency. Ahold's Chilean unit, Santa Isabel, missed a
previous deadline of last Monday midnight, the time limit set by
the bourse, reports Reuters.

The earnings publication, according to an Ahold spokeswoman, was
delayed after auditors, Deloitte & Touche, said they wanted to
resolve "outstanding issues."

"Auditors said they could not sign the figures by the date that
they were due because there were some residual issues that needed
to be resolved," the spokeswoman explained.

Failure to publish the earnings by the deadline prompted the
bourse to halt trading in Santa Isabel's shares on Tuesday.

The Ahold spokeswoman could not give a date for the publication
of Santa Isabel's earnings.

Ahold, the world's third-largest retailer, stunned financial
markets last month when it disclosed a US$500 million
overstatement of profits at its U.S. Foodservice unit.

The group is in the process of selling supermarket chain Santa
Isabel to Chilean group Cencosud, which says the unit has a book
value of about US$220 million.



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

ECUADORIAN BANKS: To Be Audited Before Liquidation Starts
---------------------------------------------------------
Ecuador's deposit insurance agency (AGD) recommends an audit on
eight banks in the country, reports local paper El Universo. The
proposal came after AGD met with the country's banking regulator,
Comptroller, the attorney general's office and the presidency met
on Tuesday to discuss the issue on the banks.

The concerned banks are: Amerca, Finiber, Valorfinsa, Tungurahua,
Azuay, Finagro, Occidente, Financorp and Necman Corp, all of
which are currently under receivership.

Business News Americas says that the proposed audit is aimed at
determining the banks' financial standing before liquidation
proceedings are started.

The audit, which AGP requested Comptroller to conduct, will be
aimed at the managerial efficiency and practices at the said
banks. El Universo reveals that private auditing firms have
refused to do a managerial audit on the banks, because of its
qualitative nature.


PETROECUADOR: May Keep $40M in Expected Sales This Month
--------------------------------------------------------
Ecuador state oil company, Petroecuador, received permission to
retain the estimated US$40 million in oil derivative sales this
month, according to Dow Jones Newswires. The Company's executive
president Guillermo Rosero said that majority of the funds will
be used to pay the debts of its production arm, Petroproduccion.

Earlier, Business News Americas reported, at least 10 oil service
companies threatened to stop crude production if the Company
fails to make payments on its debts by Thursday.

Dow Jones reports that the oil sector goods and services
companies had threatened to go on strike unless a repayment
schedule for US$35 million they are owed is turned in by Friday.

The Economy Ministry, which controls Petroecuador, allowed the
Company to retain the expected sales in return for a smaller 2003
budget. Dow Jones expects the new budget may be down to about
US$1.46 billion from the usual US$1.7 billion.

Mr. Rosero commented that the new budget is aimed at making the
Company more efficient, as it would have to make do with the
smaller budget. Dow Jones added that the new budget was not
approved at the meeting on Thursday, but is expected to receive
the green light next Wednesday.

Previously, Petroecuador gets only US$7 million from the Economy
Ministry every week, but the amount is only one-half of what the
Company needs for operating and maintenance costs, local paper El
Universo quoted a source close to the matter.



=================
G U A T E M A L A
=================

AHOLD: Vows to Retain Central American Operations
-------------------------------------------------
Central American operations belonging to Royal Ahold NV will stay
under the ailing Dutch supermarket and food service operator's
roof. Citing a company source, Dow Jones reports that Ahold,
which revealed plans to pull out of South America in a bid to
reduce its more than EUR12 billion debt and focus on what it
called its mature and most stable markets, will stick with
Central America.

"In Central America markets are more stable," Ahold spokeswoman
Carina Hamaker told Dow Jones Newswires.

In Central America Ahold has a joint venture, named CARHCO, with
La Fragua and CSU, which operates more than 275 supermarkets in
Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua.



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

AIR JAMAICA: Cuts 90 Employees from Miami Division
--------------------------------------------------
Air Jamaica sent home 90 of the 270 employees at its Air Jamaica
Vacations unit in Miami, Florida as a result of the carrier's
restructuring, according to a report by Knight Ridder Business
News.

Earlier, Air Jamaica announced its plans to cut 52 flights to the
United States as its financial woes worsen from the effects of
the ongoing war in Iraq. According to the airline, requests for
vacations have been declining as the war continues.

In the course of its fleet reduction plans, the carrier said it
will return four of its Airbus-310 jets, trimming its fleet down
to 18 later-model Airbus jets.

Air Jamaica spokesperson Bridget Ziadie said that the fleet
reduction would make maintenance easier as the remaining planes
use the same engine and parts.

In the meantime, said Ms. Ziadie, flights to Miami will be
reduced from three to two daily, the same with flights to Fort
Lauderdale.

At the same time, the frequency of flights to Boston, Los
Angeles, Chicago, Atlanta and New York's John F. Kennedy Airport
will be trimmed down, she said.

Earlier reports said that the flight reduction will be done
gradually, but a total of 52 flights will be cut off by the end
of the month. Employees and management have also agreed to take
pay cuts.

Air Jamaica, which has been having financial difficulties before
the war, expects to save more than $24 million this year to help
it cope with the losses it suffered in the recent years.

CONTACT: Air Jamaica
         4 St. Lucia Avenue
         Kingston 5,
         Jamaica
         Phone: 876/922-3460
         Fax: 929-5643
         Email: webinfo@airjamaica.com
         Contact:
         Gordon Stewart, Chairman
         Allen Chastanet, Vice President for Marketing and Sales



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

AZTECA HOLDINGS: Moody's Likely To Downgrade Ratings
----------------------------------------------------
Moody's Investors Service placed the credit ratings of Azteca
Holdings S.A. de C.V. (Holdings) and its majority-owned
subsidiary TV Azteca S.A. de C.V. (Azteca) under review for
possible downgrade. Affected debt instruments and their
respective ratings are outlined below.

Azteca Holdings S.A. de C.V.

  - Approximately US$150 million of 10-1/2% Senior Secured Notes
    due 2003 - B2
  - Approximately US$129 million (remaining amount) of 12-1/2%
    Senior Secured Notes due 2005 - B2
  - Senior Unsecured Issuer Rating - B3

TV Azteca S.A. de C.V.

  - Approximately US$125 million of 10-1/8% Senior Unsecured
    Notes due 2004 - Ba3
  - Approximately US$300 million of 10-1/2% Senior Unsecured
    Notes due 2007 - Ba3
  - Senior Implied Rating - Ba3

The action follows Azteca's unsuccessful initial consent
solicitation offer to exchange certain of Holdings' near-term
maturing debt obligations.

Last week, Azteca extended until April 7 an offer to exchange
$150 million of bonds due in July after a majority of bondholders
declined an offer to extend payments.

"The probability of default has in turn risen due to the
perceived lack of alternate liquidity available to the company to
fully satisfy these obligations as scheduled," Moody's analysts
Russell Solomon and Martin Lara wrote in a report.


CFE: First Projects of Poise Plan to Commence This Month
--------------------------------------------------------
Mexico's state power company CFE will start operations on the
US$503 million, 489MW Mexicali combined cycle project in Baja
California state, Business News Americas reports, adding that the
project is part of its power sector work and investment plan
(Poise). Also to be started this month is the US$210 million,
2558MW Naco-Nogales combined cycle project in Sonora state.

In May, operations are expected to start at combined cycle
projects Chihuahua III (US$192 million, 259MW, Chihuahua state),
Campeche (US$216 million, 252.4MW, Campeche state) and Tuxpan III
and IV (US$616 million, 983MW, Veracruz state), as well as the
US$108.7 million, 100MW Los Azufres II geothermal project in
Michoacan state, the report suggests.

For October this year, the combined cycle El Sauz (US$113.8
million, 137MW, Quer‚taro state) and Altamira III and IV (US$560
million, 1,036MW, Tamaulipas state) projects will start, to be
followed by thermoelectric projects San Lorenzo (US$117.1
million, 263.3MW, Puebla state) and Tuxpan I US$66.5 million,
162.5MW, Veracruz state) in November.

Meanwhile, the US$290 million, 495MW Rio Bravo III combined cycle
project in Tamaulipas state and the US$27.5 million, 10MW diesel-
fired Guerrero Negro II project in Baja California state are to
start in April 2004. The US$114.8 million, 930MW second stage of
the Manuel Moreno hydro plant is scheduled to start, followed in
July by the US$56 million, 41.3MW Baja California Sur combined
cycle project, in the state of the same name will follow in June.

The remaining projects in the Poise plan to date are the US$290
million, 500MW Rio Bravo IV combined cycle project in Tamaulipas
state (scheduled for April 2005) and the US$748 million, 750MW El
Cajon hydro project in Nayarit state (February 2007), according
to the report.

The Poise plan includes 61 projects, which are aimed to produce a
total of 30,000MW at a cost MXP563 billion, to be completed by
2011. Presently, the plan includes 16 projects under
construction, which are estimated to generate 6,666MW by February
2007.

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
          Home Page: http://www.cfe.gob.mx
          Contacts:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance


SAVIA: Bionova Updates Amex Regarding Listing, Other Matters
------------------------------------------------------------
Bionova Holding Corporation (Amex: BVA) provided Thursday an
update on the status of the Company's listing on the American
Stock Exchange, its bank financing, and other matters.

As previously reported, on September 9, 2002, Bionova Holding was
informed of the intention of the American Stock Exchange to
proceed to file an application with the Securities and Exchange
Commission to strike the Company's common stock from listing and
registration on the Exchange. The staff of the American Stock
Exchange stated this action was taken due to the Company's
failure to meet several of the standards for continued listing on
the Exchange (losses in two consecutive years, equity below $2
million, and a going concern opinion expressed by its auditors).

The Company appealed this determination by requesting a listing
qualification hearing, submitted a plan of compliance to the
Exchange and was subsequently advised that, based on this
submission, the hearing would be delayed for an indeterminate
period. The Company recently provided an update to the AMEX staff
on its plan and activities and was informed that its plan to
regain compliance with the continued listing standards by June
30, 2003 had been approved. The Company understands that it has
been, and will continue to be subject to periodic review by the
Exchange Staff during the extension period. Failure to make
progress consistent with the plan or to regain compliance with
the continued listing standards could result in the Company being
delisted from the American Stock Exchange.

On April 1, 2003 Bionova Holding submitted a filing with the
Securities and Exchange Commission requesting a fifteen-day
extension to file its Form 10-K for the year ended December 31,
2002. In this filing the Company indicated it had encountered
some issues in reconciling its intercompany accounts, which now
have been reconciled. While the financial statements are still
being reviewed with Bionova Holding's independent accountants, it
is expected that the results as reported in this filing will be
close to those presented in the 10-K, as reflected below.

Thousand of Dollars
(except per share amounts)
2002 2001

Total revenues........................ $130,865 $204,471

Loss from continuing operations ...... (17,175) (31,090)

Loss from discontinued
operations of research and
development segment.................. (2,165) (24,371)

Net loss.............................. (20,142) (56,594)

Net loss per common share............. (0.86) (2.40)

In December 2002, Bionova Produce, Inc., Bionova Produce of
Texas, Inc. and R.B. Packing of California, Inc., the Company's
major distributors of fresh produce in the United States, signed
agreements for a new set of credit facilities with Wells Fargo
Business Credit, Inc. which run through April 2006. There are
three separate, but related loan components associated with these
credit facilities. First, Bionova Produce, Inc. was extended a
"permanent term loan" of $1.75 million, which will be amortized
over 10 years. Interest is charged at the Wells Fargo prime rate
of interest plus 1.5%, and interest and principal amortization
payments are made on a monthly basis.

The second component is a "seasonal term loan" of $1.75 million,
although only $1.25 million will be extended at this time.
Interest is charged at the prime rate of interest plus 1.5%, and
interest payments are made on a monthly basis. The principal on
this seasonal term loan is amortized each year during the months
of January through April, and may then be borrowed again in full
on May 1. The third component is a $7 million revolving line of
credit to support working capital requirements. This revolving
line of credit must be paid down to a maximum of $1.5 million for
a 30 day period between July 1 and September 30 each year.
Interest on this revolving line of credit is charged at the Wells
Fargo prime rate of interest plus 1.0%.

All three components of the credit facilities are secured by all
of the real and intangible assets of the three U.S. distributing
companies and are guaranteed by both Bionova Holding and its
parent company, Savia. The key covenants associated with these
credit facilities are that the three distributing companies as a
group must maintain a minimum net worth of $8.75 million, a debt
service coverage ratio of at least 1.25 to 1, achieve minimum
levels of quarterly earnings before taxes to be agreed between
the Company and Wells Fargo annually, and the distributing group
may not experience a net loss during any month that exceeds $0.5
million or a net loss for a two month period that exceeds $0.3
million. Also, there are provisions in the credit agreement that
may permit Wells Fargo Business Credit, Inc. to declare an event
of default if Savia fails to complete the restructuring of its
debt facilities with its banks by March 31, 2003. As of the date
of this press release the Company believes it is in compliance
with all of the covenants of these facilities with the exception
of the Savia covenant. While Savia believes it now has reached a
verbal understanding with its creditors and expects to move ahead
with the corresponding documentation to solidify an agreement,
the restructuring is not yet complete. Bionova is in discussions
with Wells Fargo Business Credit in an effort to reach an
accommodation on this issue.

Due to the lengthy negotiation required to obtain these new
credit facilities, the Bionova group of U.S. distributors was
forced to scale back its plans to fund certain third party
growers for the winter growing season. A significant part of the
$5.1 million fourth quarter net loss of the Company was directly
attributable to losses incurred by Agrobionova, S.A. de C.V., the
Company's Mexican growing subsidiary, because it was not able to
fund growing operations as had been anticipated. Agrobionova and
the U.S. distributing companies also expect their revenues in the
first quarter of 2003 to be lower than the comparable periods in
prior years due to the reduction in operations caused by the
delay in funding.

Bionova Holding also reported that on December 23, 2002,
International Produce Holding Company, a wholly owned subsidiary
of Bionova Holding Corporation, entered into an agreement with E.
I. du Pont de Nemours and Company and its wholly owned subsidiary
DuPont Chemical and Energy Operations, Inc. to buy all of the
575,000 Bionova Holding shares held by these two companies. The
price IPHC agreed to pay to DuPont was $0.05 per share, or a
total of $28,750. DuPont was provided with a promissory note in
exchange for its shares on December 23, and this note was paid in
full on January 14, 2003.

Bionova Holding Corporation is a leading fresh produce grower and
distributor. Its premium Master's Touchr and FreshWorld Farmsr
brands are widely distributed in the NAFTA market. Bionova
Holding Corporation is majority owned by Mexico's SAVIA, S.A. de
C.V. (NYSE: VAI).

CONTACT:  Bionova Holding Corporation
          (609)-744-8105


TV AZTECA: US Court Denies Echostar's Request
---------------------------------------------
TV Azteca, S.A. de C.V., one of the two largest producers of
Spanish language television programming in the world, announced
Thursday that a U.S. district court has denied Echostar's request
for a preliminary injunction against the company that would have
prevented the company from directly or indirectly distributing
its Channel 13 network programming to cable operators and
satellite in the United States.

As previously announced, on June 25, 2002, Echostar filed a
lawsuit against the company in the United States District Court
for the Southern District of New York, alleging that by
distributing portions of its Channel 13 programming to the U.S.
station affiliates of the Azteca America Network (the company's
wholly owned Spanish-language broadcasting network focused on the
U.S. Hispanic market), who retransmit the programming on cable
and satellite by exercise of their statutory must-carry and
retransmission consent rights, the company is in breach of the
exclusivity provisions of its agreement with Echostar.

"We are very satisfied that the district court saw fit to deny
Echostar's request for a preliminary injunction," said Luis J.
Echarte, Azteca America's President and Chief Executive Officer.
"With this resolution in hand, we can continue our strategy of
complementing our broadcast network coverage with local cable
coverage and satellite. We will continue to defend our rights
under our agreement with Echostar to provide the highest quality
programming to our growing number of U.S. station affiliates.
"This is great news for our network, our affiliates and,
ultimately, our viewers who will preserve their right to enjoy
some of the best Spanish-language television programming on their
local cable systems and satellite," added Mr. Echarte.

The lawsuit will now proceed its normal course with respect to
the agreement, which would otherwise end no later than March,
2005, and, if the lawsuit is ultimately determined adversely for
the company, could result in a damage award against it (which the
company believes would not be materially adverse to it). Or,
there could be a permanent injunction that, if entered, would
have an adverse effect on the ability of Azteca America to
provide its U.S. station affiliates with programming that
contains the company's Channel 13 programming, at least until
March 2005.

Company Profile

TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks, Azteca 13 and Azteca 7, through 554 owned
transmitters throughout Mexico. TV Azteca affiliates include
Azteca America Network, a new broadcast television network
focused on the rapidly growing US Hispanic market; Unefon, a
Mexican mobile telephony operator focused on the mass market; and
Todito.com, an Internet portal for North American Spanish
speakers.



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

BWIA: Releases TT$1.5 Mln To Pay Dismissed Workers
--------------------------------------------------
Financially troubled Trinidad and Tobago national carrier BWIA
has released TT$1.5 million to pay part of the severance pay of
the workers it dismissed last January. The Trinidad Guardian
relates that the amount is only 2.8 percent of the airline's
obligation to its workers.

The money will be paid in trances starting Monday, the report
says. Workers will receive money equivalent to a half-month's
pay.

The release comes after the dismissed workers staged a protest at
the carrier's base in Piarco, complaining that they have not
received their separation pay.

An earlier report from the same source mentioned that workers are
complaining that foreigners employed in the airline are receiving
their entire pay, while the nationals who were retrenched have
not been given money due to them.

"Their March salary payments were made and this initiative will
assure that at least part of April's expenses are further covered
while we await word from the Government on our request for
assistance," said BWIA vice president Hugh Henderson.

In the meantime, BWIA explained that it has not made the payments
because it is having cashflow problems, which are exacerbated by
the effects of the war in Iraq.

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: Cash Flow Problems Valid, Not Staged To Avoid Obligations
---------------------------------------------------------------
BWIA maintains that its cash flow problems are real, and not an
excuse to avoid paying $53 million in severance pay it owes to
the 617 workers it sent home last January.

"It's not a ruse. It is not in our interest to be painted as
operating in bad faith and it is not in our interest to
needlessly panic our creditors and it is never in a company's
interest to hold back payment when payment is justly due," said
BWIA spokesman Clint Williams.

The Trinidad Guardian cited Mr. Williams denying reports that the
airline is "broke."

The spokesman said that the airline is still paying its bills "on
a daily basis" and that it has enough cash to operate, but not
enough to pay the dismissed workers' severance pay.

The airline is hoping that the government will provide financial
assistance to keep it alive. However, local reports said that
Prime Minister Patrick Manning has categorically said that the
government will let BWIA go under this time.

In its January 2003 Business Plan, BWIA said it would need
US$25.2 million in subsidies over the next 18 to 24 months or it
would be forced to take the "tough business decisions expected of
a publicly traded private sector company," said the report.

Recent reports indicated that the owner of Caribbean Star, Texas
billionaire Allen Stanford has expressed interest in acquiring
BWIA.


CARONI LTD.: Workers Who Accepted VSEP Demand Payment
-----------------------------------------------------
More than 50 workers of Caroni (1975) Ltd. marched outside the
Company's Ste Madeleine factory demanding payment of the
Voluntary Separation of Employment Plan (VSEP) that they have
accepted.

The protest delayed maintenance work at the factory, and shut
down the transport department, the Trinidad Express reported.

The workers, who claim that they have not been paid their
salaries for March, also asked Rudranath Indasingh, president of
the All Trinidad Sugar and General Workers Union to retract an
injunction, which prevents the Company from treating employees
who have accepted the VSEP as already terminated. The injunction
also bars the Company from promoting the VSEP to its employees.

As of the moment, about 4,000 out of the 9,000 daily-paid workers
who received VSEP offers, have accepted. The deadline for
accepting the offer was Wednesday.

Mr. Indarsingh explained that the injunction was not aimed at
preventing workers from receiving their VSEP pay, but to pave the
way for the collective bargaining process to take its course. The
Company has reportedly failed to consult on the VSEP with unions
representing its workers.

The protesting workers claimed that they would have received
their money by now, if not for the injunction. The report added
that the workers promised to continue their protest on Thursday.

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
=============

AHOLD: Court Hearings To Start Monday
-------------------------------------
A Uruguayan judge said corruption probe hearings in the alleged
fraud at the Velox group -- Ahold's partner in Argentine
supermarket chain Disco since 1998 -- will begin on Monday,
reports Reuters.

The hearings were supposed to have run from Wednesday to Saturday
last week. However, Judge Pablo Eguren, who was to hear the case,
became ill, leading to a postponement of the hearings.

Last month, Eguren issued a summons via Interpol to former Ahold
CEO Cees van der Hoeven, requiring him to testify in the probe.
But the summons was rejected because it did not come from the
Uruguay government, and Van der Hoeven had not been expected to
attend anyway.

The Uruguayan judge is investigating whether there were alleged
illegal transfers of funds between companies the Velox group
owned in Uruguay, Paraguay and Argentina. Included among those
companies is Disco.

Ahold bought out Velox's interest in Disco in 2002 after Velox
went bankrupt.

Van der Hoeven left his post as chief of the world's third-
largest supermarket group in February, when it admitted it had
overstated earnings since 2001 by more than US$500 million,
triggering a probe by U.S. authorities.


* Uruguayan Bond Exchange Seeks Concessions From Investors
----------------------------------------------------------
"Uruguay is asking investors to take losses," said George Estes
of Grantham Van Otterloo & Co. in Boston. Mr. Estes comment came
after a meeting with representatives from the Economy Ministry
and Citigroup Inc.'s Salomon Smith Barney Inc. unit, the manager
of the debt swap, to discuss a debt swap.

Bloomberg reported that Uruguay plans to ask holders of as much
as US$6.5 billion of bonds to accept new securities worth less
than what they own next week. The report added that credit
ratings companies and some investors believe that the transaction
would constitute a default.

The move is part of the country's efforts to avoid an economic
collapse such as what happened when Argentine defaulted on US$95
billion in December 2001.

The report explained that the country is saying that it will pay
the entire principal, just over a longer period of time. Some
investors say that this approach may help the country obtain
financing sooner than Argentina did.

The Uruguayan government is offering to swap bonds with a
maturity of over a year, 85 percent of which the country hopes to
retire, with new securities that mature on average five years
later and pay equal or lower interest, according to Fabian
Ibarbu, finance director at UnionCapital AFAP.

Investors are encouraged to swap, as the new bonds, being
international in nature, will be under the jurisdiction of New
York law.

Isaac Alfie, director of the Department of Macroeconomic Advisory
of the country's Ministry of Economy said. "I admit that there is
going to be a net present value loss."

But the new bonds would probably rise in value and help investors
recover any losses, he added.

The new bonds will also include so-called collective action
clauses, which were adopted by Mexico on bonds earlier this year
and are designed to make it easier for governments to reach
agreement with creditors in the case of a default, the report
quoted bondholders say.

"Exit consent" clauses will reportedly be attached to the new
bonds. This would allow Uruguayan officials to change the terms
of the old bonds, encouraging investors to swap their bonds, said
bondholders.



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

PDVSA: Continues To Fire Workers As Production Resumes
------------------------------------------------------
Petroleos de Venezuela SA President Ali Rodriguez Araque
announced another dismissal less than a week after the executive
said that dismissals from the state-owned oil company had come to
an end.

Rodriguez issued an order dismissing 828 PDVSA employees,
bringing the alleged total number of dismissals since December to
17,871 workers.  According to former PDVSA human resources
managers, the number represents 47% of employees that worked for
the Company up till December 31, 2002.

The decision to lay off the employees and published in the Gaceta
Oficial is based on Labor Law Article 102, stipulating
unjustified abandonment of work place and dishonesty.

Meanwhile, EFE reports that the issue of the fate of the fired
workers has been "totally excluded" from the negotiations between
the government and opposition.

Venezuelan Vice President Jose Vicente Rangel said Wednesday that
the issue of employees dismissed from the PDVSA is a matter
within the "exclusive competence" of the management of the oil
giant and the judiciary.

"The government's representation has been clear and categorical
in refusing to even consider the issue" in talks with the
opposition, Rangel said.

He thus answered the questions posed by Pablo Castro, a senior
official in Venezuela's largest union.

Castro told the local media on Wednesday that the issue of PDVSA
workers "is and will continue to be a vital part in the
conclusion of an agreement to allowing for a peaceful and
electoral outcome for the crisis."

In the wake of the Dec. 2- Feb. 3 general strike, the opposition
delegation insisted on the inclusion in the negotiations of the
issue of the PDVSA employees dismissed for joining the strike.

But the matter has not been raised in the negotiations, which
began in November under the auspices of Organization of American
States chief Cesar Gaviria.

Venezuelan President Hugo Chavez repeatedly has insisted that the
workers who supported the strike led by the opposition Democratic
Coordinator will not be pardoned.




               ***********


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.

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