/raid1/www/Hosts/bankrupt/TCRLA_Public/030610.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

          Tuesday, June 10, 2003, Vol. 4, Issue 113

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Implements Joint Frequent Flyer Program With BWIA


A R G E N T I N A

ADDEX: Creditors Called To Formal Reorganization Meeting
AEROLINEAS ARGENTINAS: To Launch Public Stock Offering
AMATRIX: Debt Payments Stop, Court Calls Creditors Meeting
ANABEA: Seeks Authorization to Commence Reorganization
ARTES GRAFICAS: Reorganization Proceeds With Creditors Meeting

AT&T LATIN AMERICA: Parent Outlines Continued Operations in LA
AUSOL: Some Creditors Reject Debt Proposal
AUTOMOTORES: Initiates Reorganization Proceedings
CABLEVISION: Southern Cone Fund Nears Takeover
EQUIPHOTEL: Court Sets Formal Creditors' Meeting

COMPANIA CRUSADE: Formal Reorganization Meeting Scheduled
EDENOR: Executive Says Government Must Resolve Rate Freeze
FRANCISCO L PADILLA: Applies For Concurso Preventivo
HEROMA: Seeks Permission To Start Reorganization Process
JUAN MINETTI: Signs Restructuring Agreements With Creditors

LAPA: Shareholders Act To Save Airline
LIVING MODERNO: Files "Concurso Preventivo"
MATRICERIA QUILMES: Creditor Asks Court To Declare Bankruptcy
NET GROUP CONSULTING: Creditor Seek Involuntary Bankruptcy
RECUPERADORA DE EVANSES: Creditors Start Bankruptcy Proceeding

RUCAPAI: Voluntarily Files For Bankruptcy
SANCOR: Calls For Shareholders Meeting
SOL NACIENTE: Calls Creditors To Formal Meeting
SOUTHERN WINDS: To Dismiss 100 Pilots Soon
SUDAMERICANA DE EXPORTACIONES: Files For Bankruptcy

TALK ME: Under Receivership Following Court Ruling
WELL COMPANY: Seeks Permission To Reorganize Business


B E R M U D A

GLOBAL CROSSING: Court OK's Emergia Settlement Agreement
TYCO INTERNATIONAL: Investors Allege Falsification of Reports


B R A Z I L

CEMAR: Government Makes Another Attempt at Sale


C H I L E

COCA-COLA EMBONOR: S&P Drops Rating to 'BBB-', Outlook Stable
INVERLINK: SVS Seeks To Quash Decisions Reached During Meeting
TELEFONICA CTC: Wants Experts To Settle Conflict With Subtel


E C U A D O R

PETROECUADOR: Ex-Texaco Employee Assumes Presidency
PETROECUADOR: Talks With Government Reach Impasse


H O N D U R A S

GEOMAQUE EXPLORATIONS: Closes of Private Placement


M E X I C O

MEXICANA DE AVIACION: Contemplates Airbus Plane Order
PEMEX: Pipeline Explodes in Veracruz


P E R U

EDEGEL: Sells $28.7M in Two-Year Bonds
MINERA VOLCAN: Votorantim Confirms Acquisition Interest


U R U G U A Y

BANCO GALICIA URUGUAY: S&P Affirms Ratings


V E N E Z U E L A

PDVSA: Seeks Foreign Participation In Projects


     - - - - - - - - - -


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

LIAT: Implements Joint Frequent Flyer Program With BWIA
-------------------------------------------------------
LIAT chief executive officer Gary Cullen announced at a press
conference in Antigua that the airline, and BWIA are poised to
launch a joint frequent flyer plan by next month despite the
latter's grim financial situation, the Barbados Nation relates.

"We are all aware that our sister airline BWIA is experiencing a
very difficult time right now, but we are confident that their
problems will be shortly sorted out and we look forward to
building our partnership with them," Cullen said.

Cullen outlined that LIAT, together with BWIA would soon be
starting a new route from Port-of-Spain to Paramaribo. In
addition, the two airlines are also expected to come together
later this year to add the Port-of-Spain-Caracas-Georgetown
services to their itinerary.

CONTACT:  LIAT Corporate Headquarters
          V.C. Bird International Airport,
          P.O. Box 819,
          St. John's, Antigua West Indies
          Tel. 1 (268) 480-5600/1/2/3/4/5/6
          Fax: 1 (268) 480-5625
          Homepage: http://www.liatairline.com/
          Contacts:
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing



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

ADDEX: Creditors Called To Formal Reorganization Meeting
--------------------------------------------------------
Argentine metallurgic machine producer Addex S.A., which has
recently filed for "concurso preventivo", is calling its
creditors to a formal meeting. However, the local source did not
indicate the time and venue of the meeting.

The Company, which ceased debt payments since May of last year,
filed its case, number 30640184368, at Buenos Aires Court No. 22
and Secretary No. 43.

CONTACT:  ADDEX S.A.
          1783 Gurruchaga Street
          Buenos Aires
          Argentina


AEROLINEAS ARGENTINAS: To Launch Public Stock Offering
------------------------------------------------------
Antonio Mata, president of the Argentine flagship carrier
Aerolineas Argentinas, announced last week that the Company would
launch a Public Stock Offering on the Buenos Aires Stock Exchange
in May 2004, in order to sell between 25% and 30% of its share
capital. Before this operation, Mata said, 15% of Aerolineas
shares will be sold to Argentine and foreign companies that have
already expressed interest in the firm. The current owner,
Spanish holding Air Comet, will keep a 51% stake in the airline.


AMATRIX: Debt Payments Stop, Court Calls Creditors Meeting
----------------------------------------------------------
Buenos Aires Court No. 19, under Dr. Fernandez calls for a formal
meeting of the creditors of Argentine computer firm Amatrix SA,
according to a local report. However, the report did not reveal
the time and place of the meeting.

The Company's case is handled by Secretary No. 37, under Dr.
Fernanda Fernandez. The Company stopped paying its debts as of
last week.

CONTACT:  AMATRIX SA
          App. 16
          Bolivar Street No, 165
          Buenos Aires
          Phone: 4342 9512
          Email: info-amatrix@netizen.com.ar


ANABEA: Seeks Authorization to Commence Reorganization
------------------------------------------------------
Argentine swimming products producer Anabea SRL is pursuing
permission to start reorganization proceedings, according to a
report from local paper El Cronista. The Company, which stopped
paying its dues since May last year, filed the case at Court No.
7, under Dr. Juan Gutierrez Cabello, and Secretary No. 13, under
Dr. Maria Cristina O'Reilly.

The Court assigned Mr. Luciano Melegari as receiver for the
proceedings. The deadline for verification of claims is July 18,
2003.

CONTACT:  ANABEA SRL
          Ruiz De los Llanos 645
          Buenos Aires
          Phone: 4641-4062

          Mr. Luciano Melegari, receiver
          Batolome Motre 1131
          Phone: 005 411 4381 7413


ARTES GRAFICAS: Reorganization Proceeds With Creditors Meeting
--------------------------------------------------------------
Creditors of Artes Graficas Pitzel are called to a formal meeting
after the Court ruled that the Company is under "concurso
preventivo".

The Company, which recently filed case no. 30618319314 at Buenos
Aires Court No. 24, stopped paying its debts as of June 1 2003.
However, local reports did not indicate whether the court has
assigned a receiver yet.

CONTACT:  ARTES GRAFICAS PITZEL S.R.L.
          Zubiria 2020
          Buenos Aires
          Argentina


AT&T LATIN AMERICA: Parent Outlines Continued Operations in LA
--------------------------------------------------------------
Even though it plans to sell its Latin American unit, AT&T
announced it would keep operating with big customers in the
region through subsidiaries that will respond directly to the
parent company in the USA. AT&T Latin America has accrued over
US$ 1.4 billion in debts over the past two years and is currently
under protection of the US bankruptcy law.

The sale of AT&T Latin America does not mean that the Company
will cease operations in the region. On the contrary, the firm
announced last week it would invest US$500 million in
infrastructure and new systems destined to facilitate the access
to its services worldwide during 2003. An unknown part of this
sum will be destined to improve the operation of AT&T in Latin
America. The aim of the Company is to serve its big customers in
the region through the main offices in the USA, with the focus on
multinational companies.

AT&T announced its had decided to sell its majority stake in AT&T
Latin America in January 2003. This subsidiary was severely
affected by the crisis that hit the telecommunications business
in the region and registered a loss of US$ 1.1 billion in 2002.

CONTACT:  AT&T Latin America
          Marcelo Esquivel
          Phone: 011-562-241-4706
          Email: marcelo.esquivel@attla.com
             or
          Catherine Castro
          Phone: +1-202-689-6336
          Email: catherine.castro@attla.com


AUSOL: Some Creditors Reject Debt Proposal
------------------------------------------
The toll concessionaire Autopistas del Sol (Ausol), which is
controlled by Spanish and Italian investors, would have already
agreed with over 50% of its creditors on its solicitation to
execute an out of court agreement (APE).  The proposal, through
which Ausol plans to restructure its US$490 million debt, has
three parts: a cash tender offer, a 10-year par bond and a five-
year discount bond with a 40% cut over the face value plus stocks
of the Company representing up to 30% of its share capital.

Although Ausol did not give further information, local newspaper
Infobae reports that BankBoston, BBV Frances and Banco Nacion,
which are the most important creditors, would have already agreed
to the proposal.

The offer expires on June 20, 2003 and must be accepted by 66% of
the creditors.

Even though the negotiations with banks seem to be making
progress, another group of creditors, so called Damnificados 2002
turned down the proposal.

They are individual bondholders who decided not to support the
APE and demand better conditions.


AUTOMOTORES: Initiates Reorganization Proceedings
-------------------------------------------------
Argentine newspaper El Cronista reports that Automotores S.A.
applied for concurso preventivo. The Company, which stopped
making payments on its dues on October 2001, filed the petition
at Court No. 1, under Dr. Juan Dieuzeide, and Secretary NO. 2,
under Dr. Marta Belusci de Pasina.

The report did not indicate whether the Court has appointed a
receiver or not.

CONTACT:  AUTOMOTORES S.A.
          San Martin 575
          Buenos Aires


CABLEVISION: Southern Cone Fund Nears Takeover
----------------------------------------------
The Argentine cable TV firm CableVision would be about to be
taken over by Southern Cone Fund L.P. for an amount that would
range from US$65 million - US$85 million. The current
shareholders -Hicks, Muse, Tate & Furst (HMT&F) and VLG
Acquisition- negotiated three weeks before, reaching a sale
accord with Southern. The legal aspect of the operation is being
handled by BKG Firm (Beretta, Kahale & Godoy), while the
accountancy issues are handled by Grant Thornton.

CableVision started defaulting on debt payments in 2002 and has
not announced any restructuring proposal yet. Up to December
2002, the  Company's debt amounted to US$917 million, including
US$121 million in interests. CableVision has several bankruptcy
petitions filed by third parties.


EQUIPHOTEL: Court Sets Formal Creditors' Meeting
------------------------------------------------
Buenos Aires Court Number 4, under Dr. Ottolenghi is calling for
a formal meeting of the creditors of troubled Argentine company
Equiphotel SA, says a local source, without revealing the place
and date of the meeting. The Company, which describes itself as
importers and distributors of dry, fresh and frozen products to
all supermarket chains in Argentina, has filed for "concurso
preventivo" earlier. It has stopped paying its dues since June 1
of this year.

The Company's case is under Dr. Juarez, Secetary No. 7 of Buenos
Aires.

CONTACT:  EQUIPHOTEL SOCIEDAD ANONIMA
          Lavalle 1506,
          Buenos Aires
          Argentina
          Home Page: http://www.equiphotel.com.ar/


COMPANIA CRUSADE: Formal Reorganization Meeting Scheduled
---------------------------------------------------------
Buenos Aires Court No. 9 is calling for a formal meeting for the
creditors of Argentine plastic producer Compania Crusade SA,
according to a local source, without revealing the date and venue
of the meeting.

Recently, the same court declared the Company under receivership,
with Mr. Eduardo Guipel as receiver. Mr. Guimpel is to file the
individual reports on August 26, while the general report is
expected on November 6. An informative assembly will be held on
May 14, 2004.

As previously reported, the deadline for verification of claims
is June 30, 2003.

CONTACT:  Mario Eduardo Guimpel
          Parana 768
          Buenos Aires


EDENOR: Executive Says Government Must Resolve Rate Freeze
----------------------------------------------------------
Edenor executive Henri Lafontaine believes it is necessary for
the government of Argentina to alter the frozen utility rates in
the country, reports local paper El Cronista. According to Mr.
Lafontaine, a rate hike is needed for Edenor to renegotiate its
debts, which tops US$500 million. In fact, the Company has
already defaulted on US$160 million of its debt.

Edenor, which has invested some US$1.2 billion since 1992, will
talk with creditors in the following weeks, the report reveals.
Through direct and indirect holdings, EDF owns 90% of Edenor,
which serves 2.3 million clients in the northern part of Buenos
Aires.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mai: to ofitel@edenor.com.ar
          Home Page: http://www.edenor.com.ar


FRANCISCO L PADILLA: Applies For Concurso Preventivo
----------------------------------------------------
Argentine company Francisco L. Padilla e Hijos S.A. is seeking
the court's approval to start reorganization proceedings, reports
local paper El Cronista. The Company stopped paying its debt on
February 2, 2002. The motion for "concurso preventivo" is in the
hands of Court No. 15, under Dr. Norma di Noto; and Secretary No.
30, under Dr. Hector Vitale. The Court appointed Mr. Roberto
Maglio as receiver for the proceedings.

Claims will be verified until August 28, 2003.

CONTACT:  FRANCISCO L. PADILLA E HIJOS S.A.
          French 2251, P.B.

          Mr. Roberto Maglio, receiver
          No. 1296 Av. Corrientes
          Buenos Aires
          Phone: (005411) 4383 7586


HEROMA: Seeks Permission To Start Reorganization Process
--------------------------------------------------------
Buenos Aires Court No. 10, under Dr. Hecor Chomer received an
appeal for "concurso preventivo" from Heroma SA. If approved, the
Company may start its reorganization proceedings. The Company
ceased debt payments since May 22, 2003, says local paper El
Cronista. The Company's plea is recorded as case no. 30677308504
at Secretary No. 19, under Dr. Fernanda D'Alesandri.


JUAN MINETTI: Signs Restructuring Agreements With Creditors
-----------------------------------------------------------
Argentine cement producer said that it has reached restructuring
agreements with 99.3% of its creditors, both local and foreign.
The agreements stipulate that the Company will pay 48.55% of its
total debt within three working days after the contract signing.
Local sources say that the move will cost the Company about
US$45.5 million.

Earlier, a NewsEdge report indicated that the Company made an
ARS65-million profit for the first quarter of this year. The
Company attributed the good results to the strengthening of the
Argentine peso against the dollar.

CONTACT:  Minetti, Juan SA
          87 Ituzaingo
          Cordoba
          Argentina  5000
          Phone: +54 51 26 7529
          Fax:  +54 51 24 4709
          Home Page: http://www.juanminetti.com.ar
          Contacts:
          Dr. Manuel Augusto J. Baltazar Ferrer, Chairman
          Atty. Carlos Buhler, Executive Vice Chairman & General
                                     Manager


LAPA: Shareholders Act To Save Airline
--------------------------------------
In a surprise move, the shareholders of the financially troubled
air carrier Lapa said they are ready to save the Company. During
a shareholders meeting held in Bolivia, it was suggested to give
Lapa a US$3 million capital injection and to add seven Boeing
737-200 to its fleet, stated lawyer Jose Iglesias, Aeroandina's
solicitor. In order to carry out the plan, executives want the
government to set the value of the JP1 fuel in a fixed amount of
US$ 0.58 per liter (the current price is around US$ 0.70) and to
authorize Lapa to apply a 20% increase in the lowest fare band.

Nearly two months ago, Lapa decided to stop operations and left
1,500 passengers stranded at the airport. Mario Folchi, then
president of the airline, resigned to this position. Humberto
Rocca holder of a 45% stake in Bolivian Aeroandina, Lapa's
controlling company went back to Bolivia with Horacio Grundy
executive director of the firm and the Argentine partner Ricardo
Arenas kept a low profile. Folchi sold its stake in Aeroandina
and this firm is now owned by Humberto Rocca (45%) and Ricardo
Arenas (55%).

Lapa's debt restructuring proceeding has not made any progress
and the airline has accrued a post-proceeding debt of ARS40
million. In addition, Minerva Rodriguez, the official receiver,
resigned from her post last week, just 48 hours after her
appointment to the position. Meanwhile, the government goes on
with its project for the creation of a state-owned airline to
replace Lapa.


LIVING MODERNO: Files "Concurso Preventivo"
-------------------------------------------
Living Moderno SA is seeking permission from an Argentine Court
to start reorganization proceedings after it stopped making
payments on its debt since May 27 this year.

According to El Cronista, the petition for "concurso preventivo"
is filed at Buenos Aires Court No. 11, which is under Dr. Miguel
Bargallo, assisted by Dr. Marcela Macchi of Secretary No. 11.

CONTACT:  LIVING MODERNO SA
          No. 3884
          Av. Corrientes
          Buenos Aires
          Argentina


MATRICERIA QUILMES: Creditor Asks Court To Declare Bankruptcy
-------------------------------------------------------------
Obra Social del Persoanal de la industria del plastico is seeking
a court in Argentina to declare plastics firm Matriceria Quilmes
SRL bankrupt. Matriceria owes Obra Social some $8011.16.

Buenos Aires Court No. 4, under Dr. Fernando Otolenghi handles
the case.

Mr. Ernesto Iob is assigned receiver for the proceedings. The
deadline for verification of claims is August 8, 2003.

CONTACT:  MATRICERIA QUILMES SRL
          No. 2075
          Guamini Street
          Buenos Aires

          Mr. Ernesto Iob, receiver
          1st Floor
          No. 1186
          Teniete General Peron
          Buenos Aires


NET GROUP CONSULTING: Creditor Seek Involuntary Bankruptcy
----------------------------------------------------------
Metrored Telecommunications SRL is petitioning a court in Buenos
Aires to declare telecommunications firm Net Group Consulting SA
bankrupt. The Company owes Metrored some ARS5609,70.

According to local sources, the case is heard at Court No. 8,
under Dr. Gonzalez. The Court assigned Mr. Alberto Eduardo
Scravaglieri as receiver for the proceedings. Claims will be
verified until August 12.

CONTACT:  NET GROUP CONSULTING SA
          4th Floor
          No 875 Rivadavia Street
          Buenos Aires
          Argentina

          Mr. Alberto Eduardo Scravaglieri
          4th Floor
          No. 651 Roque Saenz Pena Street
          Buenos Aires
          Argentina


RECUPERADORA DE EVANSES: Creditors Start Bankruptcy Proceeding
--------------------------------------------------------------
Creditors of Recuperadora de Envases Avellaneda SRL are seeking
an Argentine Court to declare the Company bankrupt. The Company
owes some $13,718 to Cooperativa de Vivienda and Cr‚dito y
Consumo Dielmar Ltda.

The case is heard at Court No. 24, Secretary No. 48 in Buenos
Aires. The Court appointed Mr. Eduardo Echaide of Sanchez de
Loris Street in Buenos Aires as receiver. The deadline for
verification of claims is July 18, 2003.

CONTACT:  RECUPERADORA DE ENVASES AVELLANEDA SRL
          7th Floor
          No. 1345 Paraguay Street
          Buenos Aires
          Argentina

          Mr. Eduardo Echaide, receiver
          6th Floor
          No. 155 Sanchez de Lora Street
          Buenos Aires
          Argentina


RUCAPAI: Voluntarily Files For Bankruptcy
-----------------------------------------
Rucapai S.A. is requesting an Argentine Court to declare
bankruptcy after it stopped paying its debt since January 15,
1998. The Company's plea is heard at Court No. 17, under Doctor
Bavastro; and Secretary No. 34, under Doctor Vanoli.


SANCOR: Calls For Shareholders Meeting
--------------------------------------
SanCor, the major dairy company in Argentina, has called for a
shareholders meeting in order to change its memorandum of
association. The firm, currently a second-grade cooperative (its
partners are other cooperatives), wants to become a first-grade
cooperative, in which the partners would be milk producers
directly. In this way, SanCor will be able to deal with milk
producers directly, with no go-betweens.

The Company joins 70 primary cooperatives and a total of 3,000
milk producers. It has been said that SanCor wants the current
first-grade cooperatives to become entities that provide services
to producers and loose their current power to fix the prices that
producers charge and the quantity of milk that SanCor must
purchase from them. What is more, SanCor has been offering
producers to pay a higher price if they sold the product beyond
their cooperatives.

SanCor is one of the companies that have been more damaged by the
devaluation of the Argentine peso, since 80% of its incomes come
from sales in the domestic market, while 70% of its debt is
denominated in US dollars.

The Company owes US$100 million in notes plus ARS115 million
(US$40.35 million) to banks.


SOL NACIENTE: Calls Creditors To Formal Meeting
-----------------------------------------------
Sol Naciente Express SA is calling creditors to a formal meeting,
the schedule and venue of which has not been revealed. The
Company is under receivership, with Ms. Liliana Noemi Castineira
as receiver.

Buenos Aires Court No. 23 handles the Company's case. A source
close to the matter relates that the deadline for verification of
claims is June 23, 2003.

Meanwhile, the receiver will file the individual report on July
7, and the general report on August 4. The informative assembly
will be on February 27 next year.

CONTACT:  SOL NACIENTE SA
          No. 986
          Tucuman Street Capital Federal


SOUTHERN WINDS: To Dismiss 100 Pilots Soon
------------------------------------------
The management and pilots of Southern Winds airline are having a
strained relationship at present. Argentine paper El Cronista
suggests that the airline's plan to fire 100 pilots from its
workforce without giving benefits is the cause of the rift.

However, sources within the Company said that a number of the
airline's pilots have not even flown for more than a year, but
were receiving their salaries.

The source said that the Company could not maintain the
situation, citing the current crisis that hit the airline
industry, hence, the Company decided to send them home.


SUDAMERICANA DE EXPORTACIONES: Files For Bankruptcy
---------------------------------------------------
Compa¤¡a Sudamericana de Exportaciones e Importaciones SA is
filing for voluntary bankruptcy. The Company's case is handled by
Court No. 20, under Dr, Taillade, and Secretary No. 39, under Dr.
Amaya.

CONTACT:  Compan¡a Sudamericana de Exportaciones e Importaciones
SA
          No, 144
          Medrano Avenue
          Buenos Aires
          Argentina


TALK ME: Under Receivership Following Court Ruling
--------------------------------------------------
Buenos Aires Court No. 10 under Mr. Hector Chomer declared
Argentine company Talk Me SA under receivership. Recently, the
Company filed a petition for "concurso preventivo".

The Court assigned Mr. Carlos Gil as receiver for the
reorganization process. Claims will be verified until August 1,
2003. A local source revealed that the Company stopped making
debt payments last month.

CONTACT:  TALK ME SA
          3099 Republica Arabe Siria
          Buenos Aires
          Argentina

          Carlos Gil, receiver
          Montevideo 734
          Buenos Aires
          Phone: 4811 1058


WELL COMPANY: Seeks Permission To Reorganize Business
-----------------------------------------------------
Argentine cleaning services firm Well Company SRL is asking to be
declared under "concurso preventivo", meaning it is seeking to
reorganize itself.

The petition is filed at Court No. 4, which is under Dr. Fernando
Ottolenghi. The case is also under Secretary No. 8 under Dr.
Carlos Anta, relates local news source El Cronista.

The Company stopped paying its obligations on March 2002.
However, the report did not indicate if a receiver has been
assigned, nor the deadline of the verifications of claims.

CONTACT:  WELL COMPANY SRL
          Bogota 3186



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

GLOBAL CROSSING: Court OK's Emergia Settlement Agreement
--------------------------------------------------------
The Global Crossing Ltd. Debtors and Emergia S.A. each operate
its own high-speed fiber optic network, independently connecting
certain cities within South America, the Caribbean, and North
America. Because Emergia's network provides access to certain
cities and countries that the GX Debtors' Network does not reach
and visa versa, the Parties developed a relationship whereby they
would purchase capacity on each other's networks. This
relationship permitted the Parties to reach additional markets
that otherwise would be unavailable due to the physical
limitations of each Party's network. The Capacity Purchase
Agreements allowed for discount pricing to be applied to capacity
purchases on an "as needed" basis.

In late 2002, due to decreased capacity requirements, the Parties
commenced discussions regarding a restructuring of the Pre-
Existing Agreements. After arms-length negotiations, the Parties
agreed to the terms of the Settlement Agreement.

Consequently, the Debtors sought and obtained the Court's
approval of the Settlement Agreement and the assumption of the
Pre-Existing Agreements, as amended and modified by the
Settlement Agreement.

Pursuant to the Settlement Agreement, the Parties will maintain
their current levels of capacity and not draw any additional
capacity against their respective Prepayments. Emergia and the
Debtors agree that $35,000,000 and $51,000,000, represent their
full utilization of capacity under the Capacity Purchase
Agreement. Emergia also agrees to pay an annual O&M Charge for
each unit of capacity that has been purchased by Emergia under
the Capacity Purchase Agreements, for which the Debtors will
provide a set level of operational and maintenance support. The
failure of the Debtors to meet certain performance criteria per
unit of capacity during a calendar month will result in a
reduction in the O&M Charges related to the unit of capacity.

The Settlement Agreement also provides Emergia the option, from
January 1, 2003 through January 1, 2006, to exchange the capacity
it purchased under the Capacity Purchase Agreements and utilize
alternative capacity on different segments of the Debtors'
network. Each time Emergia exercises the Portability Option,
there will be a one-time fee.
Pursuant to the Settlement Agreement, each Party waives, for the
period from November 25, 2002 through September 30, 2003, any and
all claims, causes of action, liabilities, obligations and
indebtedness against the other Party, whether known or unknown,
suspected or unsuspected, actual or potential, with respect to
any actions, omissions, statements or negotiations taken or made
in connection with the Pre-Existing Agreements prior to April 25,
2003. If the Effective Date has occurred on or before September
30, 2003, the waiver becomes a full and permanent waiver. If the
Effective Date has not occurred by September 30, 2003, either
party will have the right at any time after written notice to the
other party to terminate the Settlement Agreement and waivers.
Under the Settlement Agreement, the assumption of the Pre-
existing Agreements will be effective as of the Effective Date.
(Global Crossing Bankruptcy News, Issue No. 41; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


TYCO INTERNATIONAL: Investors Allege Falsification of Reports
-------------------------------------------------------------
Lawsuits filed against Tyco International Ltd. continue to pile
up. Investors recently burned by the collapse of Tyco
International Ltd.'s stock last year sued the conglomerate for
allegedly falsifying financial reports and inflating pre-tax
profits by more than US$6 billion between December 1999 and June
2002.

The staggering number, according to an MNBC report, was contained
in papers made available on Friday in U.S. District Court in New
Hampshire. The investors' filing opposes Tyco's motion to dismiss
class-action claims against the company.

"If investors cannot find a remedy here, then they cannot be
expected ever to return to the financial markets or to trust in
the courts to protect their rights," lawyers at Milberg Weiss
Bershad Hynes & Lerach LLP said in the filing.



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

CEMAR: Government Makes Another Attempt at Sale
-----------------------------------------------
Brazil's government is embarking on another attempt to sell
bankrupt power distributor Companhia Energetica do Maranhao, a
unit of U.S.-based PPL Corp. (PPL), reports Dow Jones. Power
sector regulator Aneel, which took over Cemar's administration
after the Company filed for the Brazilian equivalent of Chapter
11 bankruptcy last August, tried to sell Cemar last year.
However, the process was blocked by injunctions filed by Cemar's
workers union.

In a statement Thursday, the regulator informed the market that
Cemar's "data room" is again open to potential investors. Aneel
is yet to establish a timetable for the sale process, although
market sources said the sale could come as early as August.

The regulator, as well as PPL officials and Cemar's creditors,
will evaluate proposals and transfer control of Cemar to the
winner.

Meanwhile, reports have it that potential investors are seeking
for forgiveness of 40% of Cemar's debt, most of which is owed to
federal electricity holding Centrais Eletricas Brasileiras
(Eletrobras), and its northeastern generating unit Eletronorte.

The remaining 60% wouldn't be paid up immediately, but rather
rescheduled in medium-to-long-term payments.

However, the government is unlikely to accept that proposal for
fear of setting a precedent that would allow other power
companies in similar situations to seek the same kind of deal.

"We don't want to take over the company and we don't want to
foreclose on any assets in exchange for the debt they owe us,"
said Eletrobras' chief executive Luiz Pinguelli Rosa, in a radio
interview early Friday.

Cemar has BRL760 million ($1=BRL2.878) in debt.

CONTACT:  COMPANHIA ENERGETICA DO MARANHAO
          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024
          WEBSITE: http://www.cemar.com.br/

CREDITORS:  CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page: http://www.eletrobras.gov.br
            Contacts:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

            Investor Relations Division
            Phone: (0XX21) 2514-6207 / 2514-6333
            Av. Presidente Vargas, 409 - 9  andar
            20071-003 - Rio de Janeiro - RJ
            Email: arlindo@eletrobras.gov.br

            CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            E-mail: elnweb@eln.gov.br
            Home Page: http://www.eln.gov.br/
            Contact:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694
            E-mail: arlindo@eletrobras.gov.br

            FLEETBOSTON FINANCIAL CORP.
            100 Federal Street
            Boston, MA 02110
            Phone: (617) 434-2200
            Fax: (617) 434-6943
            URL: http://www.fleet.com/home.asp



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

COCA-COLA EMBONOR: S&P Drops Rating to 'BBB-', Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it lowered
its corporate credit rating of Chilean Coca-Cola bottler Coca-
Cola Embonor S.A. (Embonor), to 'BBB-' from 'BBB' reflecting the
company's underperformance against Standard & Poor's recovery
expectations, which has translated into weak financial measures
for the rating category.

The rating was removed from CreditWatch where it was placed Dec.
16, 2002. The outlook is stable. Total debt as of March 31, 2003,
is US$321.8 million.

"Standard & Poor's expected Embonor's financials to recover to
levels more in line with the rating category but, because of the
inherent volatility of the territories served, only a modest
recovery in its financial profile is expected in the short to
medium term," stated credit analyst Silvina Aldeco-Martinez.

The relevance of cash flows derived from Peru (to 38% of revenues
in 2002 from 35% in 2001), has been growing steadily adding
increased volatility risks to the company's cash flow generation.
Yet, the fact that the majority of cash flows continue to be
generated in Chile, and that those cash flows are enough to cover
consolidated interest expense by 1.2x, provide certain relief.

The stable outlook on Embonor reflects Standard & Poor's view
that while increasingly challenged by intense competitive threats
in a still volatile but gradually improving macroeconomic
environment in most of its territories, Embonor is well
positioned to progressively strengthen its position through the
bracing of its franchised territories.

"Rating stability is dependent on the maintenance of The Coca
Cola Co.'s support, and Embonor's ability to meaningfully build
up its financial performance through additional debt reductions
and strengthening of its internal cash flow generation toward the
end of fiscal 2003," commented Ms. Aldeco-Martinez. "The
achievement of positive free operating cash flow by the end of
2003, and the maintenance of a conservative investment and
capital expenditure program are also key elements that we expect
to see in Embonor's performance," she added.

The ratings on Embonor reflect the leading position of this South
American Coca-Cola bottler within its numerous franchised
territories in Chile, Bolivia, and Peru, as well as the company's
strategic importance to The Coca Cola Co. In addition, Embonor
enjoys strong medium-term prospects for growth within the areas
served. These factors are offset by moderately high leverage for
the rating, highly competitive and cyclical economic environment
in the territories where it operates, below-average cash flow
protection measures, and the challenge of improving its financial
performance by growing its operations within countries that have
higher volatility and sovereign risks than its home market.

Analyst:  Silvina Aldeco Martinez
          Buenos Aires
          Phone: (54) 114-891-2126

          Marta Castelli
          Buenos Aires
          Phone: (54) 114-891-2128


INVERLINK: SVS Seeks To Quash Decisions Reached During Meeting
--------------------------------------------------------------
Agreements reached in an extraordinary shareholders meeting held
by intervened financial group Inverlink on Wednesday are likely
to be nullified, Business News Americas indicates.

The report reveals that Chile's securities regulator, the SVS, is
seeking nullification of the agreements, as these agreements were
reached thru the illegal use of third parties to represent the
interests of members absent from the reunion.

Inverlink conducted the meeting despite the fact that the group's
owners are currently in jail, standing accused of fraud against
the central bank and a US$90-million theft of certificates of
deposit from state development agency Corfo.

The owners participated in the meeting through representatives.


TELEFONICA CTC: Wants Experts To Settle Conflict With Subtel
------------------------------------------------------------
Chile's incumbent telco Telefonica CTC Chile has exercised its
option to have a panel of experts resolve a conflict with
regulator Subtel. Business News Americas recalls that Subtel
issued preliminary rate-setting guidelines last week. CTC
disputes 84 clauses in the guidelines and told Subtel it would
consider resorting to local and international courts if it
considers that the definitive guidelines undermine its rights.

The main point of contention is Subtel's insistence on applying
the same guidelines to corporate and residential services. CTC
must use the eventual guidelines to propose rate ceilings for
2004-2009, and deliver that report in November, says Business
News Americas.

CONTACT:  TELEFONICA CTC CHILE
          Gisela Esobar, gescoba@ctc.cl
          Ver›nica Gaete, vgaete@ctc.cl
          M.Jos, Rodr­guez, mjrodri@ctc.cl
          Florencia Acosta, macosta@ctc.cl
          Tel: 562-691-3867
          Fax: 562-6912392



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

PETROECUADOR: Ex-Texaco Employee Assumes Presidency
---------------------------------------------------
Ecuador's state oil company Petroecuador now has a new president
after Guillermo Rosero resigned from the post at the request of
President Lucio Gutierrez. Citing Petroecuador VP Victor Hugo
Jijon, Business News Americas reports that the Company's board
hired Pedro Espin, a university professor, and former Texaco
employee, to assume Rosero's post.

"They have chosen him to do the job that they had hoped Guillermo
Rosero would do," Jijon said. Rosero, who had only been in the
job for four months, did not fall into line with Gutierrez's
moves towards privatization.

Espin will face an uphill battle to reconcile Petroecuador and
the government, who are fast growing apart over policy decisions.

Meanwhile, Petroecuador workers are threatening to go on strike
in response to Rosero's dismissal, as well as to that of Marcelo
Roman who had represented the union on Petroecuador's board.

The latest protests erupted in response to energy minister Carlos
Arboleda's proposed salary cap for workers and an announcement
that he would personally take over Petroecuador's contracting of
insurance.


PETROECUADOR: Talks With Government Reach Impasse
-------------------------------------------------
The resignation of Guillermo Rosero as Petroecuador's president
obscured prospects for an agreement with the energy ministry
about what type of contract structure to offer private companies.
Presently, talks between the two sides are at a standstill,
according to Petroecuador VP Victor Hugo Jijon.

Business News Americas recalls that the Petroecuador board had
planned to make a decision on what type of exploration and
production contract to offer private companies for its five main
oil producing fields by the end of June.

Energy minister Carlos Arboleda proposes an association contract
structure that would give private companies 20-year contracts and
a 60% stake in the production of the field while the state
receives 40%.

However, Jijon suggested that this structure amounts to
privatization, by giving away the country's most important oil
fields to private companies.

"The situation is even more delicate than before," Jijon said.
"When you reach the point that they hear you, but they won't
listen, there is no point in dialogue," he said, adding, "it's a
political question."



===============
H O N D U R A S
===============

GEOMAQUE EXPLORATIONS: Closes of Private Placement
--------------------------------------------------
(Amounts quoted in US dollars unless otherwise stated)

Geomaque Explorations Ltd. (TSX: GEO) ("Geomaque" or the
"Company") is pleased to announce the closing, on June 5, 2003,
of a brokered private placement of 130,717,579 subscription
receipts at Cdn$0.055 per subscription receipt and an additional
2,550,000 subscription receipts, at Cdn$0.06 per subscription
receipt, to insiders of the Company (collectively, the
"Subscription Receipts"), to raise total gross proceeds of
Cdn$7,342,467.

This financing was led by Haywood Securities Inc. and included
Griffiths McBurney & Partners and Paradigm Capital Inc.

Each Subscription Receipt entitles the holder thereof, upon
exchange for no additional consideration, to receive one Geomaque
common share and one half of one common share purchase warrant.
Each whole warrant entitles the holder thereof to acquire one
Geomaque common share at Cdn$0.09 per share, and shall expire
three years from the closing date. The subscription proceeds have
been placed into escrow until the escrow conditions, including
the completion of the acquisition of Midas Gold plc ("Midas")
(the "Midas Acquisition"), have been met and prior to the
completion of the statutory amalgamation of Geomaque into
Defiance Mining Corporation (the "Amalgamation"). For further
details of the Midas Acquisition and the Amalgamation refer to
Geomaque's press release of April 3, 2003.

Proceeds of this offering will be used to fund the completion of
a bankable feasibility study at the Tasiast project and for
general working capital purposes. The initial results from the
on-going in-fill drilling program at Tasiast were announced on
May 12, 2003.

Through the Midas Acquisition, Geomaque is currently in the
process of acquiring Midas, which holds 100% of the Tasiast
project in Mauritania. The management information circular for
the Geomaque shareholders' meeting, which is scheduled for June
17, 2003, to approve, among other things, the Midas Acquisition
and the Subscription Receipt financing, was mailed to
shareholders of the Company on May 20, 2003. The closing of the
Midas Acquisition and the Amalgamation are scheduled to occur on
or about June 20, 2003. All of the above transactions are subject
to shareholder and regulatory approval.

FIRST QUARTER OPERATING AND FINANCIAL RESULTS

Geomaque is also pleased to announce that consolidated financial
and operating results for the first quarter, ended March 31, 2003
were as follows:

The loss for the three months ended March 31, 2003, was
$1,331,000, or $0.01 per share, compared to a loss of $1,311,000,
or $0.01 per share for the three months ended March 31, 2002.

Vueltas Mine

During the three months ended March 31, 2003, the price realized
from gold sales was $349 per ounce and cash costs were $314 per
ounce. Cash generated from operations totaled $330,000. These
figures compare to the three months ended March 31, 2002 when the
price realized from gold sales was $290 per ounce, cash cost were
$366 per ounce and cash used in operations was $403,000. For the
year ended December 31, 2002 the price realized from gold sales
was $313 per ounce and cash cost were $270 per ounce.

Vueltas Mine mining activities and gold sales for the quarter
ended March 31, 2003 and the year 2002 are summarized as follows:

                  2003                         2002
            Quarter ended        Quarter ended       Year ended
             March  March    June September December   December
               31     31      30        30       31      31, 2002
Tonnes
agglomerated  231,877 72,794 203,670   205,018  273,425  754,907

Grade (g/t Au)   1.48   1.95    1.93      1.55     1.52     1.68

Contained ounces
of gold       11,033  4,572  12,668    10,210   13,399   40,849

Gold sold -
ounces          9,607  5,277   9,482     7,405    8,205   30,369

Average price realized
per ounce
of gold sold     $349   $289    $315      $312     $329     $313

Cash costs per ounce
of gold sold     $314   $366    $273      $313     $166     $270

The production at Vueltas during the first quarter was hampered
by numerous mechanical breakdowns to the screening and crushing
system. In addition, the month of January experienced more
rainfall than the average.

The cash costs for the quarter were negatively affected
principally due to lower gold production, which resulted from the
lower than anticipated grade, and downtime resulting from the
mechanical breakdowns and weather referred to above. However, on
a unit cost basis, the operating cost were within 10% of the
budgeted cost. During the quarter, Pad 1 and 2 were joined as a
single pad to increase the stacking capacity in anticipation of
the upcoming production for the remainder of the fiscal year.

During the month of March, significant modifications to the
material handling system were planned and implemented during the
month of April. These changes included the addition of a primary
jaw crusher as well as a new inclined screen. The results from
these modifications have been significant with the month of May
experiencing record production both in terms of tonnes processed
and ounces placed on the pad.

Financial Condition and Liquidity

The Company's cash position at March 31, 2003 amounted to
$2,415,000 compared to $328,000 at December 31, 2002.
Consolidated working capital at March 31, 2003 was $278,000
compared to a working capital deficit of $959,000 at December 31,
2002. Long term debt and other liabilities remain unchanged in
total but $2,400,000 is now due within one year and included in
the working capital deficit and current liabilities at March 31,
2003. Cash generated from operations at the Vueltas Mine during
the quarter amounted to $332,000 and capital expenditures totaled
$114,000 in the same period.

Three brokered private placements of common shares were completed
during the quarter.

- On January 31, 2003, the Company completed a brokered private
placement of 18,750,000 units at Cdn $0.08 per unit to raise
gross proceeds of Cdn $1,500,000 (equivalent to $986,000).

- On February 14, 2003, the Company completed a brokered private
placement of 11,562,500 units at Cdn $0.08 per unit to raise
gross proceeds of Cdn $925,000 (equivalent to $607,000).

- On March 5, 2003, the Company completed a brokered private
placement of 11,562,500 units at Cdn $0.08 per unit to raise Cdn
$925,000 (equivalent to $630,000).

In each of these private placements the units consisted of one
common share of the Company and one warrant to purchase one
additional common share at Cdn $0.10 per share expiring three
years from the respective completion dates.

The funds from these issuances have been or will be used for
general corporate purposes, to fund the costs incurred in
connection with the acquisition of Midas and, in addition,
pursuant to the Midas Loan Agreement, to fund $700,000 of the
$1.95 million purchase price of the Tasiast gold property in
Mauritania, under the terms of an agreement of purchase and sale
between Midas and Newmont LaSource. The balance of the purchase
price has been paid from the proceeds of a loan from RCF of $1.25
million which is repayable, with interest at 5%, on or before
June 30, 2003. This loan is secured by an assignment of
Geomaque's interest in the Midas Loan and the security therefor,
which includes shares of Ocean Resources Capital Holdings plc
(the "Ocean Shares") owned by Midas. Midas acquired 3 million
Ocean Shares in consideration of the issuance to Ocean of 15
million ordinary shares of Midas. The Ocean Shares are listed for
trading on the Alternative Investment Market (AIM) of the London
Stock Exchange and their closing price on March 31, 2003 was
Pounds Sterling 0.55 (or approximately US $0.87) per share.

The Company's First Quarter Report was distributed to
shareholders requesting it on May 30, 2003 and is available on
the Company's website at www.geomaque.com.

All statements, other than statements of historical fact,
included herein, including without limitation, statements
regarding potential mineralization and reserves, exploration
results and future plans and objectives of the Company are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements

CONTACT:  GEOMAQUE EXPLORATIONS LTD.
          John W. W. Hick, President & CEO
          (416) 956-7470
                or
          Ian Shaw, Vice-President Finance & CFO
          (416) 956-7470
                or
          Mario Caron, Vice-President, Operations
          (416) 956-7470



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

MEXICANA DE AVIACION: Contemplates Airbus Plane Order
-----------------------------------------------------
Mexicana de Aviacion SA, Mexico's biggest international airline,
is now in talks with Airbus SA over plans to order 20 planes
worth US$800 million as it seeks to modernize its fleet to cut
costs, reports Bloomberg.

"We're going to continue our fleet renovation," Crespo said. "I'm
not sure whether we're going to expand or substitute aircraft.
It's definitely about cost savings."

Mexicana has been adding more efficient jets to replace older
planes as part of an effort to return to profit after two years
of losses brought about by a drop in demand for international
travel, as well as higher fuel and insurance costs.

Bloomberg suggests that the Mexican carrier is considering
Airbus's newest and smallest aircraft, the A318, a medium-range
plane that usually seats 107 passengers. The plane has a list
price of US$40 million, though Airbus has been offering carriers
discounts of as much as 30%, analyst said.

"This is the right time," said Bob Booth, chairman of Miami-
based airline consultancy Aviation Management Services. "They are
probably getting a heck of a deal from Airbus."

Mexico hired Merrill Lynch & Co. in May 2002 to help sell
Mexicana and its sister airline, AeroMexico SA, figuring that
private owners could manage the carriers better. Both are
controlled by state holding company Cintra SA, which lost a total
of MXN3 billion (US$280 million) in 2001 and 2002, according to
Bloomberg data.

CONTACT:  MEXICANA DE AVIACION
          Adolfo Crespo, V.P. of Public Affairs
          Division of Mexicana Airlines, +1-210-491-9764


PEMEX: Pipeline Explodes in Veracruz
------------------------------------
Mexican state oil company Petr¢leos Mexicanos (Pemex) suffered a
propane gas pipeline explosion Thursday night in the state of
Veracruz. Gustavo Cadena Matey, press chief of the Public
Security Secretariat in Veracruz, related that the Chiquito river
in the Maltrata mountains, 400 kilometers to the west of Mexico
City, overflowed its banks leading to a landslide which broke the
pipeline, causing the explosion.

"We are investigating what happened. There was a huge surge of
water 40 meters wide and 15 meters deep, which smashed into the
pipes and broke them. One of them was a gas pipe and it produced
a cloud of gas that exploded and caused the problem," said Rafael
Fern ndez de la Garza, corporate director of industrial security
at Pemex in Veracruz.

The explosion led to at least two deaths and injured a score of
others.



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

EDEGEL: Sells $28.7M in Two-Year Bonds
--------------------------------------
Peruvian generator Edegel will be able to meet a US$15-million
installment pay due this month on a dollar-denominated syndicated
loan after it sold all of the bonds it offered last week at
auction on the local market.

Citing Edegel CFO Milagros Noriega, Business News Americas
reports that on Thursday, Edegel sold PEN100 million (today
US$28.7mn) worth of two-year bonds, which carry interest rate of
6% annually.

Demand for the papers reached PEN270 million. Private pension
funds bought just over 80% of the bonds, Noriega said, adding the
other buyers included mutual funds.

BBVA Continental Bolsa was the placing agent for the issue, the
first in Edegel's second debt program, from which it plans to
raise up to US$150 million.

Edegel could take a second issue to the market in a couple of
months but no final decision has been taken, Noriega said.

The Company, which is controlled by Chilean generator Endesa,
will use the rest of the proceeds to extend the due date of a
number of sol-denominated short-term loans, Noriega said.


MINERA VOLCAN: Votorantim Confirms Acquisition Interest
-------------------------------------------------------
There are now three companies analyzing a possible stake in
Peru's biggest zinc miner Volcan, which is seeking a strategic
partner to resolve financial problems caused by low world zinc
prices.

Joining Minsur, the world's No. 3 tin miner, and Swiss-based
Glencore International, in the list is Votorantim, Brazil's only
electrolytic zinc producer. The Brazilian industrial giant
confirmed Thursday its interest in acquiring a stake in Peru's
biggest zinc miner.

"We visited Volcan three weeks ago to make an analysis," a Sao
Paulo-based Votorantim spokeswoman told Reuters by telephone.
"But no proposal has been made or date set for negotiations."

Votorantim owns Companhia Mineira de Metais (CMM) and Companhia
Paraibuna de Metais. Votorantim's CMM is known to be seeking new
zinc ore sources to enable a possible expansion of production
capacity of up to 240,000 tonnes a year of electrolytic zinc.

Votorantim imports some 270,000 tonnes a year of zinc
concentrates from Peru, Mexico and Chile.

CONTACT:  COMPANIA MINERA VOLCAN
          Av Gregorio Escobedo
          710 Jesus Mara
          Lima, Peru
          Tel: +51 1 219-4000
          Fax: +51 1 261-9716
          Contact:
          Mr. FMG Sayan (Francisco), Chairperson



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

BANCO GALICIA URUGUAY: S&P Affirms Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services said Friday that it affirmed
its 'D' local and foreign currency counterparty credit ratings,
as well as its 'D' local and foreign CD ratings on Banco Galicia
Uruguay S.A. (BGU). Standard & Poor's also assigned 'CC' and 'C'
ratings on the senior and subordinated medium term notes,
respectively, to be issued by the bank as part of its debt
restructuring plan. National scale ratings for the senior and
subordinated notes are 'uyCC' and 'uyC', respectively, while the
bank's national scale counterparty credit rating is 'uyD'.

BGU is a wholly owned subsidiary of Banco de Galicia y Buenos
Aires S.A. ('D'), which operates a full banking license in
Uruguay. On Feb. 13, 2002, BGU was intervened and suspended by
the Uruguayan Central Bank (BCU) as a preemptive measure to stop
the large deposit run that the bank was suffering. The bank's
suspension has been successively prolonged at least until July
2003.

On June 10, 2002, the bank presented a restructuring plan to BCU
where it allowed its depositors to exchange deposits for a 3% up-
front cash payment, and for the remaining balance, either a new
CD or a medium-term bond, both with the same amortization
schedule and 2% annual interest rate. The bank plans to pay back
the principal in annual installments of 15% the first two years,
and 10% for the remaining time until maturity in September 2011.
As agreed according to the debt-restructuring plan, in January
2003 the bank made the first payment in cash of 3% of the amounts
deposited in BGU at the date of the intervention.

"Standard & Poor's believes that the fate of BGU's recently
restructured debt is inextricably intertwined with the ability of
Banco de Galicia y Buenos Aires, its parent, to successfully
solve its financial difficulties, to ensure that it can continue
operating and hence enable its subsidiary to collect on its loan
portfolio," said credit analyst Carina Lopez.

Analyst:  Carina Lopez
          Buenos Aires
          Phone: (54) 11-4891-2118

          Ursula M Wilhelm
          Mexico City
          Phone: (52) 55-5279-2007



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

PDVSA: Seeks Foreign Participation In Projects
----------------------------------------------
Venezuelan state oil company PDVSA wants foreign companies'
participation in up to 49% of upstream oil projects and up to
100% of downstream projects, Business News Americas reports,
citing Luis Vierman, PDVSA director and hydrocarbons director of
the mines and energy ministry.

As part of the effort, Vierma, in a presentation to European
diplomats and energy companies held in London on Friday,
presented opportunities for private investment in the upstream
and downstream sectors of the country's oil & gas industry.

"PDVSA offers numerous business opportunities for international
private investors upstream in onshore areas and on the
continental shelf of the Atlantic and Caribbean, as well as
downstream refining projects," he said.

Vierma emphasized the opportunities for European companies to
develop projects in cooperation with Venezuelan companies on the
continental shelf, in particular on Venezuela's eastern coast
where the Deltana Platform and Mariscal Sucre projects are
located.

He also said that investment opportunities are supported by a
"clear and coherent" regulatory framework that includes bi-
lateral agreements exempting companies from paying import and
export duties.



               ***********


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

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

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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

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

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


* * * End of Transmission * * *