/raid1/www/Hosts/bankrupt/TCRLA_Public/030425.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

          Friday, April 25, 2003, Vol. 4, Issue 81

                           Headlines


A R G E N T I N A

AT&T LATIN AMERICA: Parent Posts Improved 1Q03 Results
BLADEX: Selling Off Argentine Loan, Bond Portfolios
CMS ENERGY: Ratings Reflect Continued LatAm Asset Sale Troubles
TELECOM ARGENTINA: European Parents Likely To Reduce Stake
* Government Expects $325M World Bank Disbursement Soon
* Argentina Faces $700M Lawsuit Filed By EML Ltd.


B O L I V I A

COTEL: Detecon Gets Contract Waived, Approval for June Exit


B R A Z I L

BELLSOUTH CORP.: Posts Improved 1Q Earnings; BSE Sale Pending
CESP: S&P Revises Ratings Downward After Exchange Offer
CESP: Sao Paulo To Vote On BNDES Loan Guarantor Bill
TUPY: Brazil Will Appeal WTO Ruling on EU-Imposed Tariffs
VESPER: QUALCOMM Fiscal 2Q03 Results; Vesper Loss, Exit Plans


C H I L E

AES GENER: In Talks To Sell GasAndes Participation
AES GENER: To Restructure $700M of Debt by December
GUACOLDA: AES Confident On Outcome of Friday's Bond Issue


D O M I N I C A N   R E P U B L I C

INTERCONTINENTAL DE SEGUROS: Under Central Bank's Receivership


E C U A D O R

ECUADORIAN BANKS: Auditors to Investigate Nine Banks' Records


J A M A I C A

AIR JAMAICA: Chairman Clarifies Increased Government Ownership


M E X I C O

GRUPO TMM: Asset Sales Prompt 1Q03 Earnings Release Date
PEMEX: Eyes Purchase of Bolivian Gas From Pacific LNG
WBC: Files Chapter 11 Bankruptcy to Avoid Paying $30M Award


P E R U

BACKUS: Few Shareholders Respond to Bavaria's Offer To Buy Stake


T R I N I D A D   &   T O B A G O

BWIA: Board Initiates Mandated Management Review
BWIA: Bailout Loan Disbursement Still Pending


V E N E Z U E L A

PDVSA: Confirms Capacity To Meet All Sales Contracts


     - - - - - - - - - -


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A R G E N T I N A
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AT&T LATIN AMERICA: Parent Posts Improved 1Q03 Results
------------------------------------------------------
AT&T (NYSE:T) reported income from continuing operations of $529
million, or earnings per diluted share of $0.67, for the first
quarter of 2003. The company's current quarter income from
continuing operations compares favorably to income of $446
million, or earnings per diluted share of $0.60, in the first
quarter of 2002.

First quarter 2003 net income of $571 million, or earnings per
diluted share of $0.73, included income of $42 million, or $0.06,
related to the cumulative effect of the adoption of a new
accounting standard. First quarter 2002 net loss of $975 million,
or $1.32 per diluted share, included losses of $0.76 and $1.16
from discontinued operations and the cumulative effect of the
adoption of a new accounting standard, respectively.

"AT&T's solid first quarter results demonstrate our continued
success in executing in the marketplace, taking market share and
growing key areas of our business despite ongoing economic
weakness and a difficult telecom services operating environment,"
said AT&T Chairman and CEO David W. Dorman. "We remain focused on
meeting customer needs and further differentiating AT&T through
targeted investments aimed at improving our network capabilities
and cost structure in ways that our competitors simply cannot
match."

AT&T reported first quarter 2003 consolidated revenue of $9.0
billion, which included $6.4 billion from AT&T Business Services
and $2.5 billion from AT&T Consumer Services. This represents a
decline of 5.9 percent versus the first quarter of 2002,
primarily due to continued declines in long distance (LD) voice
services, partially offset by growth in several key segments of
AT&T Business Services, as well as the continued success of AT&T
Consumer Services' bundled local and LD offering. AT&T Business
Services revenue declined by 1.4 percent compared with the prior
year first quarter, while AT&T Consumer Services revenue declined
by 17.8 percent.

AT&T's first quarter 2003 operating income totaled $1.2 billion,
resulting in a consolidated operating margin of 13.0 percent.
AT&T Business Services posted operating income of $600 million,
yielding a margin of 9.3 percent, while AT&T Consumer Services
generated operating income of $632 million, yielding a margin of
24.9 percent.

Outlook

AT&T expects that it will meet or exceed its previously stated
2003 consolidated revenue growth and operating income margin
guidance. The company has lowered its guidance for 2003 capital
expenditures from a prior range of $3.3 to $3.5 billion to around
$3.0 billion.

AT&T UNIT HIGHLIGHTS

Effective with the current reporting period, AT&T is providing
additional product-line revenue detail as part of its quarterly
financial disclosures. Within AT&T Business Services, the company
is now providing quarterly revenue for long distance voice, local
voice, data services, Internet protocol & enhanced services
(IP&E-services), outsourcing, professional services & other as
well as additional operational details. Within AT&T Consumer
Services, the company is now providing quarterly revenue for
standalone long distance, transactional & other services, as well
as bundled services.

AT&T Business Services

-- Revenue was $6.4 billion, a decline of 1.4 percent from the
prior year first quarter. The unit's revenue performance reflects
continued weakness in retail demand and overall
telecommunications spending, partially offset by strong growth in
local, wholesale and IP&E-services revenue.

-- The managed component of total data services, and IP&E-
services revenue grew nearly 7 percent from the prior year first
quarter and now comprises 30 percent of this revenue total.

-- Total data services revenue declined 0.9 percent and IP&E-
services revenue grew 9.1 percent, from the prior year quarter.

-- Local voice revenue grew approximately 25 percent from the
prior year first quarter. Local access lines grew approximately
24 percent versus the first quarter of 2002, with approximately
157,000 lines being added in the 2003 first quarter. Local access
lines totaled nearly 3.8 million at the end of the current
reporting period.

-- Long distance voice revenue declined 2.9 percent on a year-
over-year basis, driven by continued pricing pressure and
weakness in retail demand, partially offset by growth in
wholesale revenue. Volumes grew approximately 12 percent on a
year-over-year basis, driven by strong wholesale growth, which
more than offset the decline in retail volumes.

-- Operating income totaled $600 million. Operating margin was
9.3 percent, compared with 13.3 percent in the prior year first
quarter. This decline is primarily due to continued pricing
pressure, weak retail demand resulting from a soft economy, and a
mix shift from higher margin retail LD service to lower margin
wholesale service.

AT&T Consumer Services

-- Revenue was $2.5 billion, a decline of 17.8 percent versus the
prior year first quarter, driven by the continued impact of
wireless and Internet substitution, competition and customer
migration to lower priced products and calling plans. The revenue
decline was partially offset by growth in bundled revenue, which
nearly doubled compared to the prior year first quarter and now
represents approximately 17 percent of total AT&T Consumer
revenue.

-- Operating income totaled $632 million, yielding an operating
margin of 24.9 percent, compared with 26.6 percent in the prior
year first quarter. The year-over-year decline reflects the
impact of substitution, competition, and mix shift, mitigated by
the successful management of expenses.

-- At the end of the first quarter, AT&T Consumer provided local
service to approximately 2.8 million customers, an increase of
more than 119 percent from the prior year first quarter. During
the current reporting period, AT&T announced an expanded presence
in Georgia as well as its intention to enter the District of
Columbia, Indiana and Massachusetts markets. The company expects
to offer local service in 11 markets by the second quarter of
2003.

OTHER CONSOLIDATED FINANCIAL HIGHLIGHTS

-- AT&T ended the quarter with net debt of $12.0 billion. Net
debt is defined as total debt of $18.1 billion less cash of $4.9
billion, restricted cash of $0.5 billion and foreign debt
fluctuations of $0.8 billion.

-- Capital expenditures for the first quarter were $662 million.

-- The effective tax rate for the first quarter of 35.2 percent
was positively impacted by the recognition of tax benefits
recorded in connection with the exchange and sale of AT&T's
remaining interest in AT&T Wireless. The tax rate excluding these
transactions would have been 40.5 percent.

-- AT&T realized a $20 million net reduction in operating
expenses during the first quarter of 2003 due to its adoption of
Statement of Financial Accounting Standards No. 143, "Accounting
for Asset Retirement Obligations."

DEFINITIONS and NOTES

AT&T Business Services

LD Voice - includes all of AT&T's domestic and international LD
revenue, including Intralata toll when purchased as part of an LD
calling plan.

Local Voice - includes all local calling and feature revenue,
Intralata toll when purchased as part of a local calling plan, as
well as Inter-carrier local revenue.

Data Services- includes bandwidth services (dedicated private
line services through high-capacity optical transport), frame
relay and asynchronous transfer mode (ATM) revenue for LD and
local, as well as revenue for managed data services.

Internet Protocol & Enhanced Services (IP&E-services) - includes
all services that ride on the IP common backbone or that use IP
technology, including managed IP services, as well as application
services (e.g., hosting, security).

Outsourcing, Professional Services & Other - includes complex
bundled solutions primarily in the wide area/local area network
space, AT&T's professional services revenue associated with the
company's federal government customers, as well as all other
Business Services revenue (and eliminations) not previously
defined. Also included revenue from AT&T Latin America prior to
the first quarter of 2003.

Data, IP&E-Services - Percent Managed - Managed services refers
to AT&T's management of a client's network or network and
applications including applications that extend to the customer
premise equipment.

Data, IP&E-Services - Percent International - A data service that
either originates or terminates outside of the United States, or
an IP&E-service installed or wholly delivered outside the United
States.

AT&T Consumer Services

Bundled Services - includes any customer with a local
relationship as a starting point, and all other AT&T
subscription-based voice products provided to that customer.

Standalone LD, Transactional & Other Services - includes any
customer with solely a long distance relationship, non-voice
products, or a non subscription-based relationship.

Local Customers - residential customers who subscribe to AT&T
Local service.

Bundled Households - number of households in targeted markets
where there is general availability of AT&T Local service.

Other Definitions and Notes

Restricted cash - includes $0.5 billion of cash that
collateralizes a portion of private debt and is included in other
assets on the balance sheet.

Foreign currency fluctuations - represents mark-to-market
adjustments that increased the debt balance by approximately $0.8
billion at March 31, 2003, on non-U.S. denominated debt of about
$4.0 billion. AT&T has entered into foreign exchange hedges that
substantially offset the fluctuations in the debt balance. The
offsetting mark-to-market adjustments of the hedges are included
in other assets on the balance sheet.

Monetization - represents debt that was exchangeable into, and
collateralized by, shares of AT&T Wireless.

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


BLADEX: Selling Off Argentine Loan, Bond Portfolios
---------------------------------------------------
Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX)
("BLADEX" or the "Bank"), a specialized multinational bank
established to finance trade in the Latin American and Caribbean
region, announced on Wednesday that it has contracted to sell its
interest in loans to borrowers in Argentina with an aggregate
face value of $126.5 million, as well as bonds issued by
companies in Argentina with an aggregate face value of $10.0
million. In addition, the Bank has completed the sale of bonds
issued by companies in Argentina with an aggregate face value of
$30.0 million. The closings of the sales of the loans and the
$10.0 million in Argentine bonds are expected to occur within the
next few weeks, subject to conditions typical of these types of
transactions.

The sales, once completed, will generate a profit for accounting
purposes of approximately $56 million, which, owing to the prior
recognition of appreciation in the value of the Argentine bonds
through mark-to-market accounting, will increase the Bank's
equity capital by approximately $44 million. The management and
Board of Directors of BLADEX are considering the implications of
this positive development for the Bank, which will be discussed
as part of its quarterly earnings announcement scheduled for
release on April 29, 2003, with an investor conference call with
the Bank's management to follow on April 30, 2003.

As a result of the sale of these Argentine obligations, the
Bank's exposure in Argentina, which at March 31, 2003 amounted to
$758 million (net of fair value adjustments of investment
securities and gross of allowances for possible credit losses of
$357 million), is expected to decrease by approximately $137
million.

CONTACT:  Carlos Yap S., Senior Vice President, Finance
          BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
          Head Office
          Calle 50 y Aquilino de la Guardia
          Apartado 6-1497 El Dorado
          Panama City, Republic of Panama
          Tel No. (507) 210-8581
          Fax No. (507) 269 6333
          E-mail Internet address: cyap@blx.com
          URL: www.blx.com

                   Or -

          William W. Galvin
          THE GALVIN PARTNERSHIP
          76 Valley Road
          Cos Cob, CT 06807
          U.S.A.
          Tel No. (203) 618-9800
          Fax No. (203) 618-1010
          E-mail Internet address: wwg@galvinpartners.com


CMS ENERGY: Ratings Reflect Continued LatAm Asset Sale Troubles
---------------------------------------------------------------
Fitch Ratings has affirmed the existing ratings of CMS Energy
Corp. (CMS) and its primary subsidiary, Consumers Energy Co.
(Consumers), and removed the ratings from Rating Watch Negative,
where they were placed on July 17, 2002. Approximately $7.5
billion of debt is affected. The ratings for CMS are as follows:
senior unsecured rating at 'B+', and preferred stock and trust
preferred securities at 'CCC+'. In addition, Fitch has assigned a
senior secured rating of 'BB-' to CMS' $925 million of secured
bank facilities. The Rating Outlook for CMS is Negative. The
ratings affirmed for Consumers are: senior secured debt at 'BB+',
senior unsecured debt at 'BB', and preferred stock and trust
preferred securities at 'B'. The 'B' trust preferred rating of
Consumers Power Financing Trust I has also been affirmed. The
Rating Outlook for Consumers is Stable. A detailed description of
the rating actions is shown below.

The rating affirmations follow recent positive actions taken by
CMS to improve its liquidity and business position. Resolution of
these steps has removed a number of proximate negative pressures
on the parent company's ratings, allowing Fitch to replace the
Rating Watch Negative with a Negative Outlook. These include a
definitive agreement to sell the Panhandle Companies to Southern
Union Co. (rated 'BBB'/Rating Outlook Stable by Fitch) for $1.828
billion, the successful refinancing of $1.465 billion of bank
facilities and the release of audited annual financial
restatements. Importantly, the bank agreements reduce near-term
liquidity pressures on CMS, and should enable the company to meet
all its debt maturities through October 2004.

The Negative Outlook for CMS takes into consideration the
continuing uncertainty surrounding the company's projected
business strategy. CMS is reliant upon the timing and execution
of its remaining asset sale program to pay down debt beyond the
required maturities and improve credit metrics. Although, with
the successful completion of the Panhandle transaction, as well
as those domestic asset sales already announced and in an
advanced stage of realization, CMS will have completed the bulk
of its 2003 plan, the company still faces a difficult economic
and market environment for the sale of its international assets,
primarily in Latin America, the Middle East and Asia, slated for
disposal by late 2004. Additional rating concerns include the
potential financial impact of ongoing regulatory and governmental
investigations related to wash-trades conducted by CMS' trading
business, which is in the process of wind-downing operations, in
2000-2001.

Stabilization of CMS' Rating Outlook will depend on further
progress towards the execution of the planned asset sales
program, as well as reduction in parent company debt and
resolution of pending regulatory investigations and inquiries. In
the long-term, improvement in the parent company's credit profile
will depend on CMS' ability to generate free operating cash flow,
maintain adequate liquidity, reduce leverage and demonstrate
improved credit protection measures.

On a standalone basis, Consumers' credit profile is solid
relative to the current ratings which reflect constraint due to
ownership linkage to CMS. Despite an increasing investment burden
over the next few years, the regulated utility benefits from more
stable cash flows and electric and gas monopoly distribution
franchises. Current credit concerns at the regulated utility
level primarily relate to Consumers' full regulatory agenda in
2003, which includes a $1.08 billion securitization request, a
$156 million gas rate case, and ongoing stranded cost
proceedings. While certain items within the regulatory rate
submission, such as securitization of environmental costs, are
less controversial than others, such as the securitization of
pension costs, Fitch notes that the inability to receive nominal
base rate increases may place pressure on Consumers' financial
condition. Following the completion of the Panhandle transaction,
CMS will be almost entirely dependent on cash distributions from
Consumers for debt service. As a result, Fitch believes that
further improvement in Consumers' ratings will be largely
dependent on the stabilization of CMS' credit quality. The
current ratings of Consumers nonetheless maintain room to permit
further modest rating deterioration at the CMS level without
negative rating action at the regulated subsidiary, and thus a
Stable Rating Outlook has been assigned.

CMS is a utility holding company whose primary subsidiary is
Consumers, a regulated electric and gas utility serving customers
in western Michigan. CMS also has operations in natural gas
pipelines and independent power production.

New Ratings:
CMS Energy Corp.
--Senior secured debt 'BB-'
Ratings removed from Rating Watch Negative and affirmed:

CMS Energy Corp.
--Senior unsecured debt 'B+';
--Preferred stock/trust preferred securities 'CCC+';
--Rating Outlook Negative.

Consumers Energy Co.
--Senior secured debt 'BB+';
--Senior unsecured debt 'BB';
--Preferred stock/trust preferred securities 'B';
--Rating Outlook Stable

Consumers Power Financing Trust I
--Trust preferred securities 'B';
--Rating Outlook Stable.

CONTACT:  Karen Anderson +1-312-368-3165, Chicago
          Richard Hunter +1-212-908-0294, New York

Media Relations: James Jockle +1-212-908-0547, New York


TELECOM ARGENTINA: European Parents Likely To Reduce Stake
----------------------------------------------------------
France Telecom and Telecom Italia, owners of Telecom Argentina,
are likely to dilute their stakes in the ailing Argentine
telephone company if creditors approve a proposed debt-for-equity
swap, suggests EFE.

France Telecom and Telecom Italia together hold 54.3% of Telecom
Argentina and will likely see this stake reduce to 38% if
creditors accept Telecom Argentina's proposal to swap 30% of its
stock in an effort to restructure its debt.

Telecom Argentina is calling for creditors to cancel US$533
million in debt in exchange for 22.5% of the Company's stock, as
well as 7.5% of wireless unit Personal's shares. Creditors would
receive non-voting preferred shares, which would be convertible
into voting common stock.

The move would reduce Telecom Argentina's debt to a more
manageable US$1.8 billion and extend its maturity by seven years.

Although the European parent companies' stake will be diluted,
they will retain operational control.

The proposed debt restructuring is being negotiated with several
banks, including BankBoston, Citibank, BBVA-Banco Frances and
Banco Rio.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


* Government Expects $325M World Bank Disbursement Soon
-------------------------------------------------------
Argentina may receive $325 million from the World Bank this week,
Dow Jones Newswires reports, citing a spokesperson from the bank.
The disbursement is not part of the US$500 million the lender is
planning to extend to Argentina to help it absorb "quasi money"
in its provinces, according to the report.

The report adds that US$200 million of the new disbursement will
be for the national government, while the rest will go to the
province of Cordoba.

Argentina has recently regained its credit lines to various
lenders after losing it when it defaulted on its US$95 billion of
debt in December 2001. Earlier this year, it received permission
to delay payment on its debt from the International Monetary
Fund.

Recently, the country has moved to negotiate with the holders of
its defaulted debt, with French bank Lazard LLC as adviser.


* Argentina Faces $700M Lawsuit Filed By EML Ltd.
-------------------------------------------------
Argentina is facing a US$700 million lawsuit filed by a
Caribbean-based investment fund, reports the Wall Street Journal,
citing court documents. David Rivkin, of the law firm Debevoise &
Plimpton, represents the Company in the matter.

EML Ltd. owns US$595.4 million of Argentina's peso denominated
bonds, which mature in 2008. The Company is trying to recover
lost value after Argentina defaulted on its US$95 billion of debt
in December 2001. The Company demands payment of the principal
and interest on the bonds after the government failed to reply to
the Company's offer to negotiate the debt, according to the
Company's filing in the U.S. District Court in Manhattan.

In the meantime, Argentina's legal representative, Carmen
Corrales, a lawyer at Cleary, Gottlieb, Steen & Hamilton,
Argentina's legal representative, said that no creditor has been
ignored and the firm isn't able to determine who owns EML.



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B O L I V I A
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COTEL: Detecon Gets Contract Waived, Approval for June Exit
-----------------------------------------------------------
German consulting firm Detecon obtained permission to annul a
five-year contract that allowed it to administer Bolivian local
telephony cooperative Cotel, reports Business News Americas.

Officials in charge of Cotel allowed the suspended administrator
to leave Cotel in June. However, government appointed intervener
Javier Tapia clarified that there's no guarantee that the 27
Cotel workers sacked by Detecon following strikes in March 2002
could be reinstated. He noted that Detecon has filed an
injunction based on a constitutional court ruling that the
layoffs were legal.

Detecon won a five-year contract to manage Cotel starting in May
2001, but the operator is among loss-making ventures that Detecon
parent Deutsche Telekom is keen to ditch.

Meanwhile, Tapia and intervention coordinator Alejandro Yaffar
said that they are working on administrative adjustments at Cotel
and plan to introduce new services such as long distance and
Internet.

CONTACT:  COOPERATIVA DE TELEFONOS DE LA PAZ-COTEL
          Avenida Mariscal Santa Cruz 980
          La Paz
          Bolivia
          Phone: 591 2373432
          Fax: 591 2310331
          Home Page: Homepage: http://www.cotel-bo.net/
          Contact: Jurgen Kurz
          
          DETECON
          Germaniastra? 18 - 20
          D-12099 Berlin
          Phone: (+49-30) 7508-1100
          Fax: (+49-30) 7508-1444
          Home Page: http://www.detecon.com/
          Contact:
          Karen Litters
          Phone: (0049) (0)6196-903-131
          Fax: (0049) (0)6196-903-465
          E-Mail: info@detecon.com



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BELLSOUTH CORP.: Posts Improved 1Q Earnings; BSE Sale Pending
-------------------------------------------------------------
BellSouth Corporation (NYSE: BLS) reported earnings per share
(EPS) of 66 cents in the first quarter of 2003, compared to a net
loss of 8 cents per share in the same quarter of 2002.

Consolidated revenues were $5.52 billion, compared to $5.53
billion in the first quarter of 2002. BellSouth reduced
consolidated total operating expenses $21 million in the first
quarter, compared to the same three months of 2002. Net income
was $1.2 billion, compared to a net loss of $154 million in the
first quarter of 2002. In accordance with Generally Accepted
Accounting Principles (GAAP), consolidated revenues and
consolidated total operating expenses do not include BellSouth's
40 percent share of Cingular Wireless.

Capital expenditures in the first quarter of 2003 were $631
million, a reduction of 37.2 percent compared to $1.0 billion in
the first three months of 2002. BellSouth reduced total debt by
$753 million during the first quarter, and has cut total debt
$2.4 billion, or 12.7 percent, since March 31, 2002. Operating
free cash flow (defined as cash flow from operations less capital
expenditures) was $1.3 billion. In February, the company's board
of directors declared a 5 percent increase in the quarterly
common stock dividend to be paid May 1, 2003, bringing the total
dividend increase to 10.5 percent over 12 months.

As previously announced, effective in the first quarter of 2003,
BellSouth began expensing stock options, and adopted Statement of
Financial Accounting Standards (SFAS) No. 143, "Accounting for
Asset Retirement Obligations." Regarding stock options, the
company elected the retroactive restatement method of adoption,
which means prior year results have been restated to include the
impacts of expensing options. The full-year 2003 impact of
expensing stock options is an approximately $90 million decrease
to net income and a 5-cent decrease to EPS, comparable with
prior-year restated amounts. The adoption of SFAS 143 resulted in
a one-time increase to net income of $816 million (44 cents per
share) in the first quarter. The ongoing impact of SFAS 143 is
expected to increase net income by approximately $60 million, or
3 cents per share, in 2003 as a whole. BellSouth also changed the
method for recognizing revenues and expenses in its directory
publishing business from the issue basis method to the deferral
method. The change resulted in a one- time decrease to net income
of $501 million, or 27 cents per share, in the first quarter. The
change in accounting method relates solely to the timing of
recognition for revenue and direct expense and does not affect
the amounts recognized. Furthermore, there is no impact to cash
flow.

To supplement the reporting of BellSouth's consolidated financial
information under GAAP, the company will continue to present
certain non-GAAP financial measures, including normalized
operating results and EBITDA (earnings before interest, taxes,
and depreciation and amortization). Normalized results include
BellSouth's 40 percent share of Cingular Wireless (revenue and
expense), and exclude events that are generally non-recurring in
nature. Normalized results also exclude material one-time gains
or losses that can distort reported operating results. A complete
list of normalizing items, as well as a full reconciliation of
normalized results to GAAP reporting, are included in the
attached quarterly financial statements and are available on the
company's Web site, www.bellsouth.com/investor. The presentation
of normalized results enables investors to focus on period-over-
period operating performance, without the impact of non-
operational or non- recurring items. In addition, EBITDA margin
is an important indicator of profitability for capital-intensive
businesses, and remains a key metric for valuation in the
investment community. Finally, normalized measures are among the
primary indicators management uses in planning and operating the
business. This additional information should not be considered in
isolation or as a substitute for the consolidated (GAAP)
financial information.

Normalized for special items, detailed below, EPS in the first
quarter of 2003 was 51 cents, compared to normalized EPS of 55
cents in the same quarter a year ago. Normalized total operating
revenues, which include Cingular, were $6.9 billion, a decline of
4.0 percent versus the first quarter of 2002. Normalized net
income was $941 million, compared to $1.04 billion in the same
quarter a year ago.

Communications Group

The opening three months of 2003 marked the first quarter that
BellSouth has been offering long distance services throughout its
markets. The company began marketing long distance in Florida and
Tennessee in late December 2002, making BellSouth the first
incumbent local telecommunications company to receive federal
approval in all its states. At March 31, 2003, BellSouth served
more than 1.9 million consumer and business long distance
customers. These include approximately 13 percent of its
residence and approximately 24 percent of its mass-market small
business accounts. In the seven states approved for long distance
earlier in 2002, the numbers are approximately 15 percent of
residence and approximately 29 percent of small business.

The number of customers purchasing the BellSouth Answers(SM)
package increased to approximately 1.6 million at the end of the
first quarter. Introduced just eight months previously, BellSouth
Answers allows residential customers to combine on a single bill
the data, voice and Internet communications services they want --
including DSL, long distance and local, as well as wireless.
BellSouth added 101,000 DSL high-speed Internet service customers
in the first quarter, bringing its number of broadband customers
to 1,122,000.

Total Communications Group revenues were $4.6 billion in the
first quarter, a decline of 2.3 percent compared to the same
quarter of 2002. Total operating expenses decreased 1.5 percent.
Data revenues were $1.09 billion, level with the first quarter a
year ago. Total access lines of 24.5 million at March 31 declined
3.6 percent compared to a year earlier, impacted by a continued
weak economy, market share loss and technology substitution.
Residence and business access lines served by BellSouth
competitors under UNE-P (unbundled network elements-platform)
grew by 231,000 in the first quarter.

Domestic Wireless/Cingular

BellSouth's share of Cingular's domestic wireless revenues in the
first quarter of 2003 was $1.4 billion, a gain of $19 million
compared to the same quarter a year ago. BellSouth's share of
Cingular operating income was $286 million in the quarter,
compared to $266 million in the same three months of 2002.

Cingular steadily gained new cellular and PCS customers during
the first three months of 2003, resulting in total first quarter
net customer additions of 189,000. More than one-third of all
first quarter customer additions for the nation's No. 2 wireless
company came through the sales channels of Cingular's parent
companies, BellSouth and SBC Communications. Total net adds
improved 310,000 compared to the fourth quarter of 2002.

Cingular is on target to increase its GSM and GPRS digital
coverage to 90 percent of potential customers and all of its
major markets by the end of 2003, with the total overlay complete
in 2004. In March 2003, Cingular announced a major joint roaming
agreement with AT&T Wireless that will lower roaming costs for
both companies, while improving quality and encouraging further
expansion of GSM/GPRS digital network services for their
customers.

Latin America Group

Consolidated Latin America revenues were $509 million in the
first quarter of 2003, a decline of 22.8 percent compared to the
first quarter last year. Sequentially, Latin revenues were up
slightly from the fourth quarter of 2002. Revenues continued to
reflect the impacts of currency devaluations, principally in
Argentina and Venezuela, as well as weak economic and unsettled
political conditions in those countries. Year-over-year Latin
results are affected by the timing of devaluation impacts in
Venezuela and Argentina. The Latin EBITDA margin of 22.6 percent
in the first quarter was negatively impacted by a contingency
reserve.

On a consolidated basis, Latin America Group wireless voice
customers increased by 372,000 during the first quarter, compared
to increases of 259,000 in the fourth quarter and 323,000 in the
first quarter of 2002. Year- over-year, customers increased by
636,000, or 8.0 percent. BellSouth and its partners serve a total
of 11.9 million customers in 11 Central and South American
countries, including 263,000 fixed wireless customers.

During the first quarter, BellSouth signed an agreement to sell
its entire stake in BSE, a cellular company that operates in six
states of Brazil's Northeastern region. The agreement is pending
approval.

Advertising & Publishing

Domestic Advertising & Publishing revenues were $498 million in
the first quarter of 2003, a decrease of 2.4 percent compared to
the same period of the prior year. Operating income of $243
million was level with the first quarter of 2002.

Special Items

In the first quarter of 2003, the difference between reported
(GAAP) EPS of 66 cents and normalized EPS of 51 cents is the
result of four special items:

Adoption of SFAS No. 143 44 cents Gain

A&P accounting change 27 cents Charge

Pension/severance costs 4 cents Charge

Foreign currency translation 3 cents Gain
Effect of rounding (1 cent)
Total of special items 15 cents Gain

Adoption of SFAS No. 143 -- As previously disclosed, BellSouth
adopted SFAS No. 143, "Accounting for Asset Retirement
Obligations," which addresses accounting for the cost of legal
obligations associated with the retirement of long-lived assets.

Advertising & Publishing accounting change -- As previously
disclosed, effective January 1, 2003, BellSouth changed its
method for recognizing revenues and expenses in its directory
publishing business from the issue basis method to the deferral
method. The change in method relates solely to the timing of the
recognition of revenues and expenses and does not affect either
the amounts recognized or cash flow. The issue basis method
formerly used recognized 100 percent of the revenues and direct
expenses at the time the directories were published and delivered
to end users. Under the deferral method, revenues and direct
expenses are recognized ratably over the life of the related
directory, generally 12 months.

Pension/severance costs -- This charge represents severance costs
recorded in the first quarter associated with workforce
reductions. Also included are pension settlement losses.

Foreign currency translation gains -- Primarily associated with
the remeasurement of U.S. dollar-denominated liabilities in Latin
America.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications services
company headquartered in Atlanta, Georgia, serving nearly 45
million customers in the United States and 14 other countries.

Consistently recognized for customer satisfaction, BellSouth
provides a full array of broadband data solutions to large,
medium and small businesses. In the residential market, BellSouth
offers DSL high-speed Internet access, advanced voice features
and other services. BellSouth also offers long distance service
throughout its markets, serving both business and residential
customers. The company's BellSouth Answers(SM) package combines
local and long distance service with an array of calling
features; wireless data, voice and e-mail services; and high-
speed DSL or dial-up Internet service. BellSouth also provides
online and directory advertising services through BellSouthr
RealPages.com(SM) and The Real Yellow Pagesr.

BellSouth owns 40 percent of Cingular Wireless, the nation's
second largest wireless company, which provides innovative data
and voice services.

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

CONTACT:  Jeff Battcher, Media Relations at 404-249-2793
          BellSouth Investor Relations at 404-249-2420


CESP: S&P Revises Ratings Downward After Exchange Offer
-------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it lowered
its global scale local currency and foreign currency corporate
credit ratings on the Brazilian utility Companhia Energetica de
Sao Paulo (CESP) to 'SD' (Selective Default) from 'CC' and
removed the ratings from CreditWatch, where they were placed with
negative implications on Jan. 31, 2003. The ratings on the US$150
million notes due 2005 have been lowered to `D'.

The downgrade reflected the conclusion of the exchange offer of
the terms of the US$150 million medium-term notes due 2005 as
proposed on March 14, 2003. As the notes have already been
restructured, the ratings on CESP and the notes were then
immediately upgraded to 'CC'.

The amendment involved a partial payment of 20% of the notes in
May and the remaining at maturity in May 2005, and the exclusion
of a put option in May 2003. This negotiation is viewed by
Standard & Poor's as tantamount to default, since the company,
absent the restructuring, would not have the resources to pay the
notes in full in case the put was exercised in May 2003. Thus,
Standard & Poor's sees this exchange as "coercive" given the lack
of liquidity at CESP to pay its obligation.

An `SD' rating is assigned when the obligor has selectively
defaulted on a specific issue or class of obligation but will
continue to meet payment obligations on other issue or classes of
obligations in a timely manner.

The new rating category reflects Standard & Poor's expectation
that CESP will likely try to propose an exchange offer to
restructure the medium-term notes maturing in February and March
of 2004, which would again be considered tantamount to default.
The outlook is now negative.

ANALYSTS:  Juliana Gallo, Sao Paulo (55) 11-5501-8948
           Milena Zaniboni, Sao Paulo (55) 11-5501-8945  


CESP: Sao Paulo To Vote On BNDES Loan Guarantor Bill
----------------------------------------------------
Sao Paulo's legislature plans to vote this week on a bill that
would see the Brazilian state government guarantee a BRL650-
million (US$213 million) loan that Brazil's development bank
(BNDES) will provide Cia. Energetica de Sao Paulo (CESP) to help
avert a default, reports Bloomberg.

The state owes CESP, the power generator for Brazil's biggest
city, BRL657.4 million in back payments, which it is disbursing
in monthly installments. Under the proposal, BNDES would lend
CESP the funds and receive payments directly from Sao Paulo
state.

The federal government also would guarantee the loan.

CESP plans to use part of the funds to meet a US$150 million bond
payment due in May.


TUPY: Brazil Will Appeal WTO Ruling on EU-Imposed Tariffs
---------------------------------------------------------
Brazilian diplomats are planning to appeal a World Trade
Organization ruling that upheld the European Union's decision to
slap antidumping duties of 34 percent n some products made by
Santa Catarina-based foundry Tupy, reports Business News
Americas.

Last month, the WTO agreed to only two of the 18 arguments Brazil
presented.

The WTO ruled that the EU did not apply trade sanctions unfairly.
Brazil accused the EU of imposing antidumping measures on imports
of malleable cast-iron tube or pipefittings made by Tupy.

Foreign Ministry spokesman Marcos Campos said, "The deadline to
appeal is Thursday, and in principle we are going to go ahead
with the appeal."

The WTO appellate body is the final institution that the
Brazilian diplomats can turn to in a bid to have the tariffs
lifted. The report added that if Brazil loses the appeal, it will
likely move for a reduction of the tariffs.


VESPER: QUALCOMM Fiscal 2Q03 Results; Vesper Loss, Exit Plans
-------------------------------------------------------------
QUALCOMM Incorporated (Nasdaq: QCOM - News) announced Wednesday
its second quarter fiscal 2003 results ended March 30, 2003.
Revenues were $1.0 billion in the second fiscal quarter, up 50
percent year-over-year, primarily due to increasing demand for
CDMA products across global markets. Second quarter net income
was $103 million, up 135 percent year-over-year. Earnings per
share were $0.13, up 160 percent from $0.05 in the second quarter
of fiscal 2002.

Second quarter net income includes $160 million in asset
impairment charges related to Vesper. Following the recent denial
of Vesper's request by the Brazilian regulator to use mobile
service in the 1900 MHz frequencies band, we have decided to
pursue an expedited exit strategy, including the sale or other
disposition of Vesper and/or its assets. The impairment loss
recognized is the difference between the carrying values of
Vesper's long- lived assets and their estimated fair market
values.

Revenues excluding the QUALCOMM Strategic Initiatives (QSI)
segment were $1.0 billion in the second fiscal quarter, up 54
percent year-over-year. Net income excluding the QSI segment was
$314 million, up 95 percent year-over- year. Earnings per share
excluding the QSI segment were $0.38, up 90 percent year-over-
year. Reconciliations between total QUALCOMM results and results
excluding QSI are listed in this release with more detailed
information for the prior periods presented on our Investor
Relations web page at www.qualcomm.com .

"During the March quarter, we exceeded our earnings target and
delivered excellent year-over-year growth. Our cash, cash
equivalents and marketable securities increased by $460 million
in the second fiscal quarter including the effect of initiating
our first-ever stock repurchase program," said Dr. Irwin Mark
Jacobs, chairman and CEO of QUALCOMM. "New CDMA2000 1X networks
were launched by operators in China, India, Thailand, Australia,
Mexico, Puerto Rico and Brazil, and new WCDMA networks were
recently launched in Japan, Italy, the U.K. and Australia. The
highest-speed commercial 3G data networks, based on our CDMA2000
1xEV-DO technology, are generating substantial increases in
subscriber revenues for operators in South Korea. Several new
1xEV-DO networks are expected to be launched in the coming
months, together with exciting new applications, including
streaming video. Seven operators in six nations have now
commercially deployed a broad selection of BREW-based
applications and services, including Vivo, the joint venture of
Telefonica Moviles and Portugal Telecom in Brazil. Despite these
many positive developments, we were disappointed by the Brazilian
regulator's denial of Vesper's request to provide full mobility
service, a request we believe was in accordance with previous
regulation and one which would have greatly benefited subscribers
in Brazil. As a result, we have initiated efforts to exit our
Vesper investment and realize the maximum value possible from its
assets."

Research and development (R&D) expenses were $132 million,
including $2 million for QSI, in the second fiscal quarter, up 13
percent year-over year. The increase in R&D expenses compared to
the year ago quarter was primarily related to QCT product
initiatives.

Selling, general and administrative (SG&A) expenses were $136
million, including $19 million for QSI, in the second fiscal
quarter, up 9 percent year-over-year. The increase in SG&A
expense compared to the year ago quarter was primarily due to an
increase in employee and other expenses related to the expansion
of the QCT customer base and our support and marketing efforts
related to the BREW(TM) application development platform.

Our fiscal 2003 effective income tax rate is now estimated to be
43 percent, compared to 36 percent in fiscal 2002. Excluding the
QSI segment, our fiscal 2003 effective tax rate is now estimated
to be 33 percent, due to increased foreign sales at lower tax
rates, compared to 35 percent in fiscal 2002. The change in the
estimated 2003 effective tax rate excluding QSI required an
adjustment from the 34 percent effective tax rate in the first
quarter of fiscal 2003, resulting in a 32 percent effective tax
rate in the second quarter of fiscal 2003. The Company also
reversed approximately $1.1 billion of its valuation allowance on
substantially all of its U.S. deferred tax assets during the
three months ended March 30, 2003 as a credit to stockholders'
equity.

QUALCOMM Strategic Initiatives

The QUALCOMM Strategic Initiatives (QSI) segment includes our
strategic investments and related income and expenses, including
the Vesper Companies in Brazil. QSI revenues, which are primarily
related to the consolidation of the Vesper Companies, were $26
million in the second fiscal quarter, down 10 percent
sequentially. QSI losses before taxes were $246 million in the
second fiscal quarter. This includes Vesper related losses of
$188 million, which consist primarily of $160 million of asset
impairment charges and $22 million of losses from operations (net
of minority interest). The balance of the QSI losses before taxes
is primarily our share of equity losses from our investment in
Inquam of $33 million and other-than-temporary losses on
investments of $24 million.

QUALCOMM Incorporated ( www.qualcomm.com ) is a leader in
developing and delivering innovative digital wireless
communications products and services based on the Company's CDMA
digital technology. Headquartered in San Diego, Calif., QUALCOMM
is included in the S&P 500 Index and is a 2003 FORTUNE 500r
company traded on The Nasdaq Stock Marketr under the ticker
symbol QCOM.

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

CONTACT:  Julie Cunningham, Sr. Vice President
          Investor Relations of QUALCOMM
          Tel: +1-858-658-4224
          Fax: +1-858-651-9303
          Email: juliec@qualcomm.com



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

AES GENER: In Talks To Sell GasAndes Participation
--------------------------------------------------
AES Gener, a unit of AES Corp., is now negotiating with several
firms over its plan to sell a 13% interest in Gasoducto GasAndes
SA, a gas pipeline between Chile and Argentina, by July, Business
News Americas reports, citing AES Gener CEO Felipe Ceron.

Ceron didn't disclose the names of the interested parties but
said that its fellow shareholders in GasAndes, such as France's
Totalfinaelf (56.5%), Argentina's CGC (17.5%) and Chilean natural
gas distributor MetroGas (13%), are not interested in buying the
Company's stake.

AES Gener will probably sell to an Argentine gas producer, and
will contact potential buyers directly, Ceron said. The asking
price would be higher than the US$26 million book value, he
added.

"GasAndes is an expendable asset that is not part of our main
business, and we would not miss it," Ceron said.

The sale of GasAndes is part of AES Gener's strategy to focus on
electricity generation in Chile rather than expanding in the oil
and gas sector.

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


AES GENER: To Restructure $700M of Debt by December
---------------------------------------------------
AES Gener SA, Chile's second-biggest generator, seeks to
renegotiate part of its US$1.4 billion of debt by December.
According to Chief Executive Felipe Ceron, the Company's top
priority is to restructure US$500 million bonds held by private
pension funds (AFPs) due 2005, and a US$200 million Yankee bond
issue due 2006.

The Company is considering a capital increase by offering to
convert AFP bonds into shares, Ceron said. This would dilute US-
based parent AES Corp's 98.6% stake in the Company. AES Gener
could also sell shares to other institutional investors, and has
started preliminary talks with some of them, Ceron said.

AES Gener could pay some of the debt from its own finances and/or
negotiate to extend the terms, Ceron added. The Company last year
had its ratings cut to junk from investment grade by Standard &
Poor's and Moody's Investors Service on debt concerns.

S&P said in a report this month that delays in selling assets has
made it harder for the Company to raise funds to meet US$90
million of debt payments this year. The rating company said it
doesn't expect a default.

S&P lowered AES Gener's debt ratings to B from B+, putting the
Company five levels below investment grade, the second reduction
since December. Moody's reduced its rating on AES Gener's senior
unsecured notes in December to B2, also five levels below
investment grade, from Ba2, in its second reduction since
October.


GUACOLDA: AES Confident On Outcome of Friday's Bond Issue
---------------------------------------------------------
AES Gener CEO Felipe Ceron revealed that its 50%-owned Chilean
generator Guacolda plans to complete a US$150-million bond issue
on the US market by Friday, Business News Americas relates.

Although the upcoming transaction is expected to generate
positive results, the executive said that Guacolda has a back-up
plan for a bridge loan if the issue falls through.

Guacolda is issuing 10-year senior secured loan participation
certificates to cover all outstanding debt due on April 30. The
certificates will be a 144A semi-private placement on the US
market, and will be offered to investors by CSFB.

Guacolda will buy all of the US$52 million net outstanding
participation certificates in a loan agreement with Merrill
Lynch, and will prepay an outstanding US$48.8 million loan to
Mitsubishi, and a US$35.3mn local syndicated loan. Remaining
proceeds will be used to fund a portion of the reserve amount,
pay related expenses, and for general corporate purposes.

The certificates will have an average life of 7.1 years, a 12-
month grace period and semi-annual interest and amortization
payments on April 30 and October 30 of each year.



===================================
D O M I N I C A N   R E P U B L I C
===================================

INTERCONTINENTAL DE SEGUROS: Under Central Bank's Receivership
--------------------------------------------------------------
Dominican Republican insurance company Intercontinental de
Seguros, a former subsidiary of insurance conglomerate Grupo
Intercontinental, is now under the central bank's receivership,
local daily Listin Digital reports, citing insurance regulator
Rafael Santos Badia.

This means that the insurer's management has been taken over by
the central bank, although responsibility for daily operations
remains in the hands of Intercontinental de Seguros.

"The central bank's intervention is designed to ensure the
insurer's solvency for continued operations," Badia said, adding
that any move to liquidate Intercontinental would be undertaken
by the insurance regulator.



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

ECUADORIAN BANKS: Auditors to Investigate Nine Banks' Records
-------------------------------------------------------------
Ecuador's Deposit Guarantee Agency expects to sign contracts with
three auditing firms, which have been lined up to review the
accounts of the nine financial institutions seized by the state,
this Friday. At the moment, the agency is finalizing the terms -
including the value - of the contract, Wilma Salgado, the
agency's manager, said.

Dow Jones recalls that Ecuador has an agreement with the
International Monetary Fund, under which Ecuador should complete
the audits by the end of April. However, according to Salgado,
it's likely they won't be done until the end of June.

In the meantime, the Comptroller General's office will conduct
audits of the interim administrations that had managed the failed
banks' assets after the banks were seized. The audits are
expected to run for about 60 days.

Once both classes of audits are completed, the nine institutions
will be liquidated with their assets and liabilities transferred
to trust funds. Independent administrators will manage the funds
and see to the return of deposits to account holders of the
failed institutions.




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

AIR JAMAICA: Chairman Clarifies Increased Government Ownership
--------------------------------------------------------------
"Although the government will increase its stake in Air Jamaica,
it will not take over the operation of the airline," Air Jamaica
Chairman Gordon Stewart was quoted by the Associated Press on
Wednesday.

Mr. Stewart's comments came after reports indicated that the
government would take control of the airline. On Tuesday, Finance
Minister Omar Davies said that the government is in negotiations
to nearly double its stake in the airline, and could eventually
assume majority ownership.

The Company said that Mr. Davies' remarks had been
"misinterpreted."

Mr. Stewart clarified that the government would increase its
stake in Air Jamaica to 45 percent, but the remaining share would
be held by a group of investors, which he is leading.

The government, which already owns 25 percent of the airline,
increased its stake to 45 percent after gaining 20 percent stake
in exchange for pardoning US$300 million of the airline's debt.

Air Jamaica had to reduce flights to the U.S. and implemented
other cost-cutting measures after sharp drop in passenger load
caused by the military conflict in the Middle East worsened its
financial quandary.

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



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

GRUPO TMM: Asset Sales Prompt 1Q03 Earnings Release Date
--------------------------------------------------------
Grupo TMM, S.A. (NYSE: TMM), the largest Latin American multi-
modal transportation and logistics company, announced Wednesday a
delay in its release of operating results for the first quarter
ended March 30, 2003. The delay is principally due to the
company's recently announced asset sales. Grupo TMM will issue a
press release announcing its first quarter financial results on
Tuesday, May 20, 2003.

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Visit Grupo TMM's web site at www.grupotmm.com, which offers
Spanish/English language options.

CONTACT:  Grupo TMM Company
          Jacinto Marina
          Phone: 011-525-55-629-8790
          E-mail: jacinto.marina@tmm.com.mx

          Brad Skinner
          Phone: 011-525-55-629-8725
          E-mail: brad.skinner@tmm.com.mx

          Luis Calvillo
          Phone: 011-525-55-629-8758
          E-mail: luis.calvillo@tmm.com.mx
             or
          Dresner Corporate Services
          (general investors, analysts and media)
          Kristine Walczak
          Phone: 312/726-3600
          E-mail: kwalczak@dresnerco.com


PEMEX: Eyes Purchase of Bolivian Gas From Pacific LNG
-----------------------------------------------------
Mexican state oil company Pemex is interested in buying liquefied
natural gas (LNG) from Bolivia, reports Business News Americas
citing Bolivia's President Gonzalo Sanchez de Lozada and
hydrocarbons minister Jorge Berindoague.

Repsol YPF, which heads up the Pacific LNG consortium, is
reportedly in talks with Pemex over the possibility of exporting
LNG to Mexico's Lazaro Cardenas Pacific port.

However, Repsol is also continuing talks with U.S. oil and gas
company Sempra. Last year, a deal with Sempra would have been
completed, but the deal fell through when the Bolivian government
delayed its decision on port selection.

In the meantime, U.S.-based oil and gas company Marathon, is also
planning an LNG receiving terminal in the state of Baja
California, and is interested in buying Bolivia's gas, too, the
report reveals.

Mr. Sanchez added that Pacific LNG is working "without hurry but
without pause."


WBC: Files Chapter 11 Bankruptcy to Avoid Paying $30M Award
-----------------------------------------------------------
The World Boxing Council, which is based in Mexico City, filed
for Chapter 11 bankruptcy last week in order to keep German
fighter Graciano "Rocky" Rocchigiani from collecting a US$30-
million award he won last year, the AP reports.

The filing came after a New York court declared Rocchigiani light
heavyweight champion from 1998 to 2000.

The case dates back to 1998, when the WBC declared its light
heavyweight title vacant after Roy Jones, the titleholder at the
time, considered abandoning the crown to become a heavyweight.
Rocchigiani signed to fight American Michael Nunn for the vacated
belt. On March 21, 1998, he won a split decision to become the
WBC light-heavyweight champion.

However, Rocchigiani lost his title in June of the same year when
Jones decided to return to the light-heavyweight ranks. Jones was
restored to his position as WBC champion. The WBC sent a letter
to Rocchigiani saying the official rankings that showed him as
champion were a "typographical error."



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

BACKUS: Few Shareholders Respond to Bavaria's Offer To Buy Stake
-----------------------------------------------------------
Relatively few shareholders of Peruvian brewer Union de
Cervecerias Peruanas Backus & Johnston SAA (Backus) have taken
advantage of Colombian company Bavaria SA's offer to buy their
shares. However, it may be too early to tell if the number of
sellers will remain low. Dow Jones Newswires quoted BBVA
Continental SAB's general manager Rafael Carranza saying, "The
offer is valid until May 30, including that day, and as such
there are still a good number of days if the minority
shareholders want to accept the offer."

The offer, managed by BBVA Continental, seeks to buy up to
2,730,124 of Backus' class "A" voting shares for US$27 per share.
The payment will be US$13.5 in cash, and US$13.50 in the form of
a nonnegotiable promissory note, which will be valid for 365
days, to yield Libor plus 500 basis points.

Bavaria already owns 50 percent of Backus after it bought
Venezuelan company Empresas Polar's 25 percent stake in Backus
for US$567.8 million.

Backus' principal activities are the processing, bottling,
selling, distributing of beer and all types of related business
with malted drinks, malts, non-alcoholic beverages and gaseous
water.

It also engages in investment in securities of companies;
exploration of country property, selling, industrialization,
conservation, marketing and exporting of agricultural products as
well as rendering of consultation services.

Its manufacturing plants include Ate Plant in Ate-Vitarte, Callao
Plant in Bellavista Callao, Trujillo Plant in Trujillo and Motupe
Plant in Motupe Chiclayo.

Backus' trademarks include Pilsen Callao, Pilsen Trujillo and
Malta Polar as well as Cusquena and Arequipena beer.

CONTACT:  Union de Cervecerias Peruanas Backus y Johnston SA
          No 594 Jiron Chiclayo
          Rimac
          Lima, Peru
          Phone: +51 1 311 300
          Fax: +51 1 311 3059
          Home Page: http://www.backus.com.pe
          Contact:
          Elias Bentin Peral, Chairman        
          Atty. Victor Montori Alfaro, Vice Chairman



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

BWIA: Board Initiates Mandated Management Review
------------------------------------------------
The Board of Directors of troubled airline BWIA is scheduled to
meet today to discuss the review of the airline's management. The
Trinidad Guardian relates that the review is part of the
requirements the government is asking in exchange for extending a
$116.8 million bail out loan to the carrier.

The government may expect to be briefed on the said review early
next week.  Trade and Industry Minister Kenneth Valley said the
government was expecting to hear the board's decision on the
review request on Wednesday.

Aside from a review, the government is also asking the airline to
restructure its management.

"As far as the documentation before us suggests that the board
has to review the way the airline is being managed," the report
quoted Public Administration Minister Dr Lenny Saith at last
Thursday's post Cabinet-briefing at Whitehall


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: Bailout Loan Disbursement Still Pending
---------------------------------------------
Trinidad and Tobago's troubled flagship carrier, British West
Indies Airways (BWIA) has not yet received disbursement of the
$116.8 million bailout fund from the government. On Wednesday,
Trade and Industry Minister Kenneth Valley confirmed that the
government will not deliver the agreed financial aid unless the
airline fulfills the conditions required.

BWIA spokesman Clint Williams said the airline is "moving
assiduously toward meeting the conditions. The company is moving
toward qualifying for financial assistance as set out by the
Government."

According to a report by the Trinidad Express, the airline is
required to conduct a review and to restructure its management
team, led by BWIA chief Conrad Aleong. The government also
demands a review on the executive compensation and employee
salaries at BWIA.

A concurrent report by the Trinidad Guardian indicates that
BWIA's board may brief the government on its decision concerning
the management review early next week.

Earlier reports in the region said that about one-half of the
bailout loan will be used to pay the severance benefits of 617
employees dismissed last January.



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

PDVSA: Confirms Capacity To Meet All Sales Contracts
----------------------------------------------------
Venezuela's state oil company, Petroleos de Venezuela S.A.
(PdVSA) said that it is now able to meet all contracts on sales
of all its products, almost five months after production plunged
during a nationwide strike. Recently, the Company lifted force
majeur on its gasoline exports, the last product affected by the
strike.

Bloomberg News cited a Company statement saying exports now total
1.89 million barrels a day of crude oil, adding that exports of
refined products total 860,000 barrels a day, of which 90,000
barrels are gasoline.

However, striking workers challenge the said figures. More than
18,000 PdVSA workers were dismissed as President Hugo Chavez
retaliates to the strike aimed at deposing him.



               ***********


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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