/raid1/www/Hosts/bankrupt/TCRLA_Public/030617.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 17, 2003, Vol. 4, Issue 118

                           Headlines


A R G E N T I N A

ABU: Under Receivership Following "Concurso Preventivo" Filing
ADEBALL AMOBLAMIENTOS: Creditors Prevail on Bankruptcy Request
AHOLD: Audits At Latin American Units Still Pending
ALSI 1619: Court Of First Instance Orders Receivership
AMERICO VOLVEPO: Court Rules Bankruptcy Upon Creditor's Plea

ANABEA: Court Sets Formal Creditors Meeting
ARMASHIELD: Seeks Court Permission To Start Reorganization
BANCO FRANCES: To Seek Shareholders' OK to Float Bonds
EBETOWN CONSULTING: Voluntarily Files For Bankruptcy
ELECTROMECANICA NOVEL: Creditor Seeks Bankruptcy Declaration

EXPOSITORA: Reorganization Plans Submitted for Court's Review
FARGO: Deutsche Bank Struggles To Choose Buyer
INCIARTE: Files For "Concurso Preventivo"
INDUSTRIAS NAKOS: Court Declares Bankruptcy
MADET: Calls Creditors To Formal Meeting

MICROBIZ: Declared Bankrupt On Creditor's Request
MULTICANAL: Buenos Aires Court Denies Involuntary Proceeding
NORTE DISTRIBUCIONES: Court OK's `Concurso Preventivo' Plea


B E R M U D A

FLAG TELECOM: Appoints Alex Gersh as Chief Financial Officer
GLOBAL CROSSING: XO Proposes Tender for 'Any and All' Bank Debt


B R A Z I L

ACESITA: Negotiating Syndicated Loan To Improve Debt Profile
COPEL: Endesa Struggles to Salvage Contract, Future Revenues
ELETROPAULO METROPOLITANA: Averts Intervention For Now
GERDAU: Proposes to Integrate Operations With Acominas
GERDAU: Moody's Assigns Low-B Ratings to Unit on Weak Market

GERDAU: President Opposes Adoption of Industrial Policy
SABESP: Sells $225M Debt To Cover Maturing Liabilities
* IMF Completes Third Review of Stand-By Credit with Brazil


C H I L E

ENERSIS: Shareholders Subscribe 61.75% of $2B Share Offering


C O L O M B I A

PAZ DEL RIO: Struggles to Reinsert Itself in the Global Industry


E C U A D O R

PETROECUADOR: Govt. Scraps Plan To Award State Fields To Firms


M E X I C O

GRUPO IUSACELL: Largest Shareholders Announce Sale Plans
GRUPO IUSACELL: Movil@ccess Announces Purchase Offer Terms
MAXCOM TELECOMUNICACIONES: Releases May Investor Update


U R U G U A Y

BANCO GALICIA URUGUAY: To Survey Clients on Repatriation Options
UTE: Goes Back to Court to Appeal Latest Ruling


     - - - - - - - - - -

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

ABU: Under Receivership Following "Concurso Preventivo" Filing
--------------------------------------------------------------
Argentine metal products maker Abu S.R.L. is put under
receivership relates local news source Infobae. The Company,
which filed case number 30604064860, is seeking Court approval to
reorganize itself.

Buenos Aires Court No. 25 handles the Company's case, and
assigned Ms. Maria Marta Sommariva as receiver to whom creditors
are to present their claims until August 5, 2003. The report adds
that the receiver is expected to turn in the individual reports
on September 16, 2003, and the general report on October 10,
2003. The informative assembly is set for May 4, 2004.

CONTACT:  Ms. Maria Marta Sommariva
          Florida 930
       Buenos Aires


ADEBALL AMOBLAMIENTOS: Creditors Prevail on Bankruptcy Request
--------------------------------------------------------------
Argentine furniture seller Adeball Amoblamientos S.A. is declared
bankrupt after a request by La Coronita SRL is approved by Court
No. 17, which is under the jurisdiction of Dr. Bavastro. Adeball
reportedly owes some ARS10,000 to La Coronita.

The Court appointed Mr. Horacio Crespo as receiver for the
proceedings. Mr. Crespo will verify claims until August 3, 2003.

CONTACT:  Adeball Amoblamientos S.A.
          Condarco Street No. 5164
          Buenos Aires

          Mr. Horacio Crespo
          6th Floor
          Maipu Street No. 464
          Buenos Aires


AHOLD: Audits At Latin American Units Still Pending
---------------------------------------------------
Dutch retail group Ahold expects to unveil the results of the
final internal probes at the Dutch headquarters, at the Spanish
operations and at an unnamed third entity, shortly. However,
according to Reuters, audits at Santa Isabel in Chile and Disco
in Argentina remain pending.

These two South American units are due to be sold off as part of
Ahold's drive to focus on mature markets and divest assets to cut
debt of more than EUR12 billion (US$14 billion) which it ran up
in an expansion drive under deposed CEO Cees van der Hoeven.


ALSI 1619: Court Of First Instance Orders Receivership
------------------------------------------------------
Argentine newspaper El Clarin reports that ALSI 1619 S.A is under
receivership after it filing for "concurso preventivo" at the
Court of First Instance in Buenos Aires. Court No. 1, under Dr.
German Paez Castaneda, assigned Estudio Ferrari Herrero as
receiver for the proceedings.

Creditors are advised to have their claims verified before
December 5, 2003. The receiver is expected to file the individual
report on February 2, 2004, and the general report on March 30,
2004.

CONTACT:  Estudio Ferrari Herrera
          Esmeralda 684
          Piso 1
          Buenos Aires


AMERICO VOLVEPO: Court Rules Bankruptcy Upon Creditor's Plea
------------------------------------------------------------
Court No. 4, under Dr. Ottolenghi announced that goods
transporter Americo Volpedo is now bankrupt. The announcement
came after Jose Antonio Toledo requested the Company's bankruptcy
for nonpayment of a total of ARS4228 due to him.

The Court assigned as receiver, Ms. Maria Alva, to whom creditors
must submit their claims for verification. The deadline for
verifications is August 14.

CONTACT:  Americo Volpedo S.R.L.
          Zepita 3101/25
          Buenos Aires

          Maria alva
          7th Floor
          Montevideo Street No. 536
          Buenos Aires


ANABEA: Court Sets Formal Creditors Meeting
-------------------------------------------
Court No. 7, under Dr. Juan Gutierrez Cabello, calls creditors of
Argentine swimming products producer Anabea SRL to a formal
meeting after the Company's plea for "concurso preventivo" was
approved.

The creditor's meeting is the next step for the Company's
reorganization process. The company, which stopped making debt
payments in May, is now under receivership, under the supervision
of Mr. Luciano Melegari as receiver.

The deadline for claims verification is July 18 this year, while
the informative assembly will be on April 28 next year.


ARMASHIELD: Seeks Court Permission To Start Reorganization
----------------------------------------------------------
Armashield Argentina S.A. is seeking the Court's permission to
start reorganizing its business, according to local paper El
Cronista Comercial. The Company, which is involved in the making
of security-related articles, stopped paying its debts in July
2001.

It submitted its plea to Court No. 2 of Buenos Aires, which is
under Dr. Juan Garibotto. Dr. Maria Gariela Vasallo of Secretary
No. 3 assists the court with the case.

CONTACT:  ARMASHIELD ARGENTINA S.A.
          Tucuman 2362, 1E
          Buenos Aires


BANCO FRANCES: To Seek Shareholders' OK to Float Bonds
------------------------------------------------------
BBVA Banco Frances S.A., the Argentine-listed unit of Spain's
Banco Bilbao Vizcaya Argentaria S.A., will seek approval from
shareholders this coming July 15 to implement a five-year program
for the issuance and re-issuance of US$300 million in non-
convertible bonds. According to Dow Jones, the re-issuance will
be used to replace bonds already in the market.

Last year's financial crisis took a severe toll on the bank,
which reported a net loss of ARS154 million ($1=ARS2.845) for the
first quarter of 2003, compared with a net loss of ARS42.1
million in the year-earlier period.

But BBVA director general for Latin America Vitalino Nafria Aznar
Banco Frances expressed optimism that the local unit will return
to profitability in 2005, as long as credit is restored. This is
dependent on government compensation for the "assymetric"
conversion of loans and deposits from dollars into devalued
pesos, he noted.

Banco Frances is one of Argentina's largest private banks with
13.6% of total deposits in the banking system, as of March 31.
The bank reported total assets of ARS15.3 billion and total
liabilities of ARS13.4 billion.

CONTACT:  BBVA Banco Frances SA
          199 Reconquista
          Buenos Aires
          Argentina 1003
          Phone: +54 11 4346 4000
          Home Page: http://www.frances.com.ar
          Contacts:
          Jaime Guardiola Romajaro, Chairman


EBETOWN CONSULTING: Voluntarily Files For Bankruptcy
----------------------------------------------------
The Argentine branch of Ebetown Consulting S.A. voluntarily filed
for bankruptcy, declaring total assets of $113,466 and
liabilities of $19,552.

Court No. 8, under Dr. Gonzales handles the case. Dr. Lazaeta of
Secretary No. 15 assists the court.

The appointed receiver is Mr. Norberto Jose Perrone, to whom
creditors are advised to submit their claims for verifications.
Verifications will be done until September 17, 2003.

CONTACT:  Ebetown Consulting S.A.
          10th Floor
          Cordoba Ave. No 827
          Buenos Aires

          Mr. Norberto jose Perrone
          Constitucion Street No. 2894
          Buenos Aires


ELECTROMECANICA NOVEL: Creditor Seeks Bankruptcy Declaration
------------------------------------------------------------
Court No. 19 of Buenos Aires declared electromechanics company
Eletromecanica Novel S.R.L. bankrupt, relates local sources. The
Court's decision came after a request from Santiago Ramirez, to
whom the Company owes some $12,385, seeking the Company's
bankruptcy.

The Court, under Dr. Fernandez, assisted by Dr. Mazzoni of
Secretary No. 37 assigned Mr. Aldo Markman as receiver for the
process. Creditors are to have their claims verified by Mr.
Markman before September 4 this year.

CONTACT:  Eletromecanica Novel S.R.L.
          Pedro I. Rivera Street No. 5545
          Buenos Aires

          Mr. Aldo Markman
          3rd Floor
          Alsina Street No. 1441
          Buenos Aires


EXPOSITORA: Reorganization Plans Submitted for Court's Review
-------------------------------------------------------------
Argentine company Expositora SRL is seeking approval to commence
reorganization proceedings after it stopped making debt payments
on June 11 this year. The Company's petition for "concurso
preventivo" is filed at Court No. 22, under Dr. Margarita Braga.

Dr. Alejandro Mata of Secretary No. 43 assists the court, said
local newspaper El Cronista Comercial. In the meantime, the paper
did not indicate whether the court has appointed a receiver or
not.

CONTACT:  Expositora SRL
          California 2082
          1 Piso D120
          C1289AAP Buenos Aires


FARGO: Deutsche Bank Struggles To Choose Buyer
----------------------------------------------
Deutsche Bank, current owner of the shares of Argentine bread
producer Fargo, has not yet decided to whom it will sell the
business. The list of possible purchasers is now limited to three
candidates: Mexican Bimbo and the investment funds Dolphin and
Pegasus. However, holders of the notes issued when Fargo was
controlled by The Exxel Group have complained about being
excluded from the talks.

Fargo has two kinds of liabilities. On the one hand, it has a
US$30 million debt with Deutsche Bank that is guaranteed with its
assets. On the other hand, Fargo owes US$120 million to
bondholders which is unsecured.

Even though Fargo is in the middle of a formal restructuring
proceeding, it still has a 60% share in the Argentine packed
bread market.


INCIARTE: Files For "Concurso Preventivo"
-----------------------------------------
Argentine company Inciarte SRL applied for "concurso preventivo"
at the Commercial and Civil Tribunal of Moron. The motion, number
3066097730, is under Moron's Court No. 7. Local news portal
Infobae relates that the Court assigned Estudio Giai Menendez as
receiver for the reorganization proceedings. Claims will be
verified until August 8, 2003.

CONTACT:  Estudio Giai Menendez
          Riobamba 340
          Buenos Aires


INDUSTRIAS NAKOS: Court Declares Bankruptcy
-------------------------------------------
Court No. 8 of Buenos Aires, which is under Dr. Gonzalez declares
graphic arts company Industrias Nakos S.R.L. bankrupt. Local
sources relates that the announcement came after the Caja de
Credito Cuenca Cooperativa Limitada, to whom the company owes
some ARS38,064, filed a request to declare the bankruptcy.

Furthermore, the Court assigned Mr. Alberto Francisco Romeo as
receiver for the proceedings. Creditors are advised to have their
claims verfied before August 19 this year.

CONTACT:  Industrias Nakos S.R.L.
          Ground Floor
          Bahia Blanca Street No. 26
          Buenos Aires

          Mr. Alberto Francisco Romeo
          5th Floor
          Parana Street No. 275
          Buenos Aires


MADET: Calls Creditors To Formal Meeting
----------------------------------------
Madet S.A. is announcing a forthcoming formal creditors' meeting,
relates a source privy to the matter, without revealing the date
and venue of the said meeting.

Recently, the Troubled Company Reporter-Latin America reported
that the company, which stopped paying its financial obligations
in March 2001, has filed for "concurso preventivo" at Buenos
Aires court no. 6, which is under Dr. Ferrario.

CONTACT:  MADET S.A.
          1381 Marcelo Torcuato de Alvear
          Piso 10
          Buenos Aires


MICROBIZ: Declared Bankrupt On Creditor's Request
-------------------------------------------------
Following a request by Luis Polnoroff, Court No. 17 of Buenos
Aires, assisted by Secretary No. 33, which is under Dr. Trebino
Figueroa, declared Microbiz SRL bankrupt. The Company owes some
ARS6000 and US$148 to Mr. Polnoroff.

The Buenos-Aires based company is now under receivership with Ms.
Norma Gomez Salgado as receiver. Claims will be verified until
August 13, 2003.

CONTACT:  Microbiz SRL
          9th Floor
          Cerrito Street No. 1574
          Buenos Aires

          Ms. Norma Gomez Salgado
          5th Floor
          Viamonte Street No. 1546
          Buenos Aires


MULTICANAL: Buenos Aires Court Denies Involuntary Proceeding
------------------------------------------------------------
A commercial court in Buenos Aires has ratified a first instance
verdict in favor of the cable TV operator Multicanal. The
decision has to do with a petition filed by Multicanal, in an
attempt to prevent several bankruptcy requests against the firm
filed by a group of creditors that did not want to accept the
pesification of a debt denominated in US dollars at the rate of
US$1= ARS1. In this way, the court backed up what court Nø 4,
headed by judge Daniel Ottolenghi, had decided.

Ottolenghi had affirmed the Company could not be considered in
default, because the sum deposited as guarantee of the debt was
enough to cover the indebted principal plus the related
interests. Multicanal owes these creditors US$1.33 million.

Instead of this sum, the Company paid ARS2.21 million, taking
into account US$1 = ARS1 plus the CER adjustment coefficient,
plus an 8% interest rate plus 5% as guarantee expenses.

CONTACT:  MULTICANAL S.A.
          Avalos 2057
          C1431DPM Buenos Aires, Argentina
          Tel: 54 11 4524-4700
          Fax: 54 11 4370-5162
          Contact: Fabian Melnitzky
          E-mail: fmelnitz@redarg.com.ar


NORTE DISTRIBUCIONES: Court OK's `Concurso Preventivo' Plea
-----------------------------------------------------------
Argentine newspaper El Cronista Comercial relates that cleaning
products dealer Norte Disribuciones S.R.L. is going to reorganize
its operations after a court approved its motion for "concurso
preventivo."

The report relates that the Company stopped making debt payments
in December 2002. Judge Gerardo Vasallo of Court No. 5, assisted
by Secretary No. 10, under Dr. Polo Olivera handles the case.

CONTACT:  Norte Distribuciones SRL
          Ave. Saona 4258
          5 D
          Argentina



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

FLAG TELECOM: Appoints Alex Gersh as Chief Financial Officer
------------------------------------------------------------
FLAG Telecom Group Limited (OTC: FTGLF.PK) (the "Company" or
"FLAG Telecom") announced Friday the appointment of Alex Gersh as
its new Chief Financial Officer (CFO). Mr. Gersh, who takes up
his appointment in July 2003, replaces Michel Cayouette who has
decided to leave the company to pursue other business interests.

Alex Gersh graduated with honours Cum Laude from Baruch College
(City University of New York) and is a Certified Public
Accountant (CPA). He has held a number of senior international
and national finance roles within Motorola and British
Telecommunications and, most recently, was Executive Vice
President and Chief Financial Officer at NextiraOne LLC.

Patrick Gallagher, Chief Executive Officer of FLAG Telecom, said:
"Alex brings a wealth of knowledge and experience to FLAG which
will be invaluable in the next phase of FLAG's development. He
will complement an experienced team that was recently reinforced
with the appointment of Jayne Gymer as Senior Vice President
Human Resources. Michel Cayouette was a key member of the team
that took FLAG through its successful restructuring. We are
grateful to him for his dedication and hard work and wish him
well in his future endeavours."

Alex Gersh said: "I am pleased to be joining FLAG Telecom. The
Company has a strong Board and management team, a sound and
focused strategy and the determination to capture the
opportunities that present themselves. I look forward to being
part of FLAG's success story in the years ahead."

About FLAG Telecom

FLAG Telecom, registered in Hamilton, Bermuda, along with its
group companies, is a leading global network services provider
and independent carriers' carrier providing an innovative range
of products and services to the international carrier community,
ASPs and ISPs across an international network platform designed
to support the next generation of IP over optical data networks.
Recent news releases and further information are on FLAG
Telecom's website at: www.flagtelecom.com .

CONTACT:  FLAG Telecom
          Willem Baralt, Group Treasurer
          Phone: +44 207 317 0837
          Email: Irelations@flagtelecom.com

          Suny Borges
          Corporate Communications
          Phone: +44 20 74 78 95 79
          Email: sborges@flagtelecom.com


GLOBAL CROSSING: XO Proposes Tender for 'Any and All' Bank Debt
---------------------------------------------------------------
XO Communications, Inc. is prepared to launch immediately an "any
and all" tender offer for the $2,250,000 billion of Senior
Secured Global Crossing LTD Bank Debt. The tender offer would be
priced at $210 per $1,000 of Bank Debt, or $472.5 million in the
aggregate. XO's tender offer will not be subject to due diligence
or financing, but is predicated on the termination of the
Singapore Technologies Telemedia Pte Ltd Purchase Agreement.

In addition, to facilitate the certainty that Global Crossing
emerges from bankruptcy, XO recently made a purchase offer
comprised of cash and securities valued at $700 million. Various
Global Crossing creditors have questioned the "value" of XO's
offer. Therefore, as an alternative, XO, alone or together with
an Icahn affiliate, is prepared to offer $700 million in cash to
acquire all of the assets of Global Crossing as a "Stalking
Horse" bidder in a Section 363 sale. This offer will be subject
to higher and better offers from third parties through a
Bankruptcy Court administered auction process.

As the largest single creditor of Global Crossing, XO is very
concerned about the debilitating effects of the continued
uncertainty surrounding the purchase of Global Crossing by a
foreign entity and the adverse effects it continues to have on
Global Crossing's cash balance and continuing operations. "Global
Crossing's future prospects are contingent on its customers,
vendors and employees gaining immediate certainty as to the
company's future. XO is prepared to offer that today," stated
Carl C. Icahn, Chairman of XO Communications.

In a May 15, 2003 letter from Senior Commerce Committee Senators
Burns and Hollings serious concerns were raised regarding
ownership and control of US critical infrastructure and other
telecommunications assets by a foreign government -- even a
friendly government such as Singapore.

"It is unfair to customers, employees and creditors for Global
Crossing's Board to continue to ignore our bona fide purchase
offer and it is important for them to understand that time is
running out," Mr. Icahn concluded.

XO Communications is a leading broadband communications service
provider offering a complete set of communications services,
including: local and long distance voice, Internet access,
Virtual Private Networking, Ethernet, Wavelength, Web Hosting and
Integrated voice and data services.

XO has assembled an unrivaled set of facilities-based broadband
networks and Tier One Internet peering relationships in the
United States. XO currently offers facilities-based broadband
communications services in more than 60 markets throughout the
United States. (Troubled Company Reporter, Vol. 7, No. 117, June
16, 2003)



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

ACESITA: Negotiating Syndicated Loan To Improve Debt Profile
------------------------------------------------------------
As part of a measure to improve its debt profile, Brazilian
stainless steelmaker Acesita is putting together a syndicated
loan financing, a source said without revealing further details.
Analysts suggested however that Acesita is seeking to raise
US$150 million worth of one-year funds.

Business News Americas recalls that Acesita reported a 222% jump
in net profit to BRL50.3 million (currently US$17.3mn) in the
first quarter, compared to that in the 1Q02. Moreover, net
revenue jumped from BRL302 million to BRL541 million this
quarter, while EBITDA more than tripled to BRL151 million in the
same comparison.

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

CONTACT:  Acesita SA
          Registered Office
          Av Joao Pinheiro, 580
          Centro
          30130-180 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3235-4211
          Fax  +55 31 3235-4300
          Web  http://www.acesita.com.br
          Contacts:
          Valmir Marques Camilo, Chairman
          Bruno Le Forestier, Vice Chairman


COPEL: Endesa Struggles to Salvage Contract, Future Revenues
------------------------------------------------------------
Endesa SA, Spain's biggest power company, indicated it wants to
sit down and talk with Brazilian state-owned utility Cia.
Paranaense de Energia (Copel) to salvage a contract to supply
electricity from Argentina to the latter. Bloomberg says Endesa
faces a loss of about US$4 billion of business over 16 years if
it fails to reach an accord with Copel.

Julio Malhadas, Copel's spokesman, revealed that the Company
stopped paying Endesa in January and wants to eliminate a clause
requiring it to buy about US$250 million of power annually year
until 2019, whether it is used or not.

But according to Endesa's top executive in Brazil, Marcelo
Llevenes, talks between both parties may yield an agreement to
salvage the contract "soon."

"They have said the contract isn't right for their objectives,"
Llevenes said in an interview. "We are looking to keep this
contract, which is for 20 years."

Meanwhile, Gustavo Gattass, an analyst with UBS Warburg in Rio de
Janeiro, suggested that the Curitiba, Brazil-based Copel, which
had a US$113 million loss last year, won't return to
profitability as long as it has to buy Endesa's power.

"I think they will sit down and reach an agreement," Gattass
said.

Copel has the right to cancel the contract by paying a fine equal
to two-years of energy purchases, giving it leverage to force
Endesa to make changes, Gattass said.

CONTACT:  Cia Paranaense de Energia COPEL
          Rua Colonel Dulcidio, 800
          Batel
          80420-170 Curitibia - PR
          Brazil
          Phone: +55 41 322-3535
          Fax  +55 41 224-4312
          Home Page: http://www.copel.com
          Contacts:
          Ary Queiroz, Chairman


ELETROPAULO METROPOLITANA: Averts Intervention For Now
------------------------------------------------------
The situation at Brazil's Sao Paulo state distributor Eletropaulo
doesn't need intervention yet, according to Jose Mario Abdo,
director general of national power regulator Aneel. The situation
"requires care, but is not out of control," Adbo told the mines &
energy commission of the lower house of congress, relates
Business News Americas.

Aneel, which is currently preparing a report on Eletropaulo's
financial situation, issued its comments after Eletropaulo
employees, addressing the commission, called on the state
government to retake control of Eletropaulo.

The employees argued that besides the financial troubles with
AES, the quality of service has dropped since the Company was
privatized in 1998.

Business News Americas recalls that AES subsidiaries have
defaulted on US$1.2 billion borrowed from Brazil's national
development bank BNDES to finance the acquisition of Eletropaulo
shares.

BNDES has started proceedings to sell the AES subsidiary shares
held in escrow, but daily newspaper Valor Economico said the bank
is not keen to sell the shares at the moment because it would not
recoup the debts.

Aneel's report on Eletropaulo's financial situation should be
ready by July 30, and a study of the quality of service should be
ready by August 31.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


GERDAU: Proposes to Integrate Operations With Acominas
------------------------------------------------------
GERDAU S.A. (Bovespa: GGBR, NYSE: GGB and Latibex: XGGB), in
accordance with CVM Regulation no 358, dated January 3rd, 2002,
announces to its shareholders and investors that it is preparing
a proposal with the objective of implementing the restructuring
of its operations, based on the integration of its industrial,
commercial and financial operations through its subsidiary A‡o
Minas Gerais S.A. - A€OMINAS.

GERDAU S.A. (Bovespa: GGBR, NYSE: GGB and Latibex: XGGB), in
accordance with CVM Regulation no 358, dated January 3rd, 2002,
announces to its shareholders and investors that it is preparing
a proposal with the objective of implementing the restructuring
of its operations, based on the integration of its industrial,
commercial and financial operations through its subsidiary A‡o
Minas Gerais S.A. - A€OMINAS.

This restructuring should allow operational, administrative,
financial and tax savings, which are still being analyzed. Also,
a new and important step in the consolidation process of the
steel industry is expected. This process should bring more
efficiencies and the strengthening of Gerdau's position as one of
the most competitive companies in the global steel market.

The Board of Directors has requested that the Executive Committee
present the results of this analysis within the next 60 days,
along with recommendations for relevant actions. These
recommendations would then be presented to the companies'
shareholders.

Rio de Janeiro, June 12th, 2003.

CONTACT:  Osvaldo B. Schirmer
          Executive Vice-President
          Investor Relations Director

          Press Office +55(51) 3323-2170
          imprensa@gerdau.com.br
          www.gerdau.com.br


GERDAU: Moody's Assigns Low-B Ratings to Unit on Weak Market
------------------------------------------------------------
Moody's Investors Service assigned several ratings to Gerdau
Ameristeel Corporation. Rating outlook is stable.

                     Assigned Ratings

     * B2 - Proposed $400 million Guaranteed Senior Unsecured
            Notes due 2011

     * B1 - Senior Implied rating

     * B3 - Senior Unsecured Issuer Rating.

The low-B ratings reflect the competitive nature of the steel
industry and weak product demands. The ratings also mirror the
company's high debt leverage.

Gerdau Ameristeel Corporation produces rebar, merchant bar,
structural shapes, and flat-rolled sheet at 11 North American
minimills, and conducts downstream steel fabricating operations
at 26 facilities. The company's base is in Tampa, Florida.


GERDAU: President Opposes Adoption of Industrial Policy
-------------------------------------------------------
The president of Brazilian long steelmaker Gerdau, Jorge Gerdau
Johannpeter, expressed his opposition to the adoption of an
industrial policy that aims to support certain sectors

"I don't think there should be an industrial policy. In this
country there should be economic policies that guarantee even-
handedness," local business daily Gazeta Mercantil quoted
Johannpeter as saying.

In the executive's opinion, reducing the hefty tax burden on
industry and offering more credit would be better for the
country's development.


SABESP: Sells $225M Debt To Cover Maturing Liabilities
------------------------------------------------------
Brazilian Sao Paulo state water utility Sabesp placed US$225
million in five-year bonds Friday to cover debt that matures in
July, a Sabesp spokesperson confirmed to Business News Americas.
The size of the deal was increased from an originally planned
US$200 million. UBS Securities LLC was the sole lead manager for
the sale.

The water utility plans to invest BRL656 million (US$229 million)
this year, while capex for the 2003-2007 period will reach BRL3.9
billion.

Sabesp is Brazil's largest water utility in terms of users,
providing water to 25 million residents and sewerage services to
16.8 million residents.

CONTACT:    Sabesp
            Helmut Bossert,(5511) 3388-8664
            hbossert@sabesp.com.br

            Marisa Guimaraes, (5511) 3388-9135
            marisag@sabesp.com.br
            Website: www.sabesp.com.br


* IMF Completes Third Review of Stand-By Credit with Brazil
-----------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the third review of Brazil's performance under the SDR
22.8 billion (about US$32.4 billion) Stand-By Arrangement
approved on September 6, 2002. Completion of the review allows
Brazil to draw the equivalent of up to SDR 6.55 billion (about
US$9.3 billion), of which SDR 2.29 billion (about US$3.3 billion)
under the Supplemental Reserve Facility (SRF).

Following the Executive Board review of Brazil, Anne Krueger,
First Deputy Managing Director and Acting Chair, said:

"Brazil's performance under its IMF supported program remains
commendable. In completing the third review under the
arrangement, Directors were in particular encouraged that all
performance criteria were met, and that the submission of pension
and tax reform proposals were achieved ahead of schedule. As a
result of this strong policy performance, financial market
variables have continued to improve, and Brazil has regained
access to international capital markets on favorable terms.

"An unwavering commitment to macroeconomic stability, based on
disciplined fiscal and monetary policies and efforts to further
improve the composition of public debt, remains the centerpiece
of the government's economic strategy. The solid fiscal outturn
to date provides a strong assurance that the primary surplus
target for 2003 will be achieved. In addition, the medium-term
fiscal surplus target of 4.25 percent of GDP is an important
commitment toward ensuring sustainable debt dynamics. The
proactive response of monetary policy to inflationary pressures
has resulted in a steady decline of monthly inflation rates this
year.

"Continued progress on the government's ambitious reform agenda
is critical to build on recent confidence gains and establish a
basis for a return to strong, sustainable, and equitable growth.
The pension and tax reform proposals recently submitted to
congress-if enacted in full-will contribute to reducing fiscal
imbalances and remove inefficiencies that hinder growth. The
additional reform priorities identified by the government-
including measures to make government expenditures more flexible,
eliminate barriers to trade and encourage deeper financial
intermediation-will help consolidate recent progress and further
support a resumption of investment and growth," Ms. Krueger
stated.

IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772



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

ENERSIS: Shareholders Subscribe 61.75% of $2B Share Offering
------------------------------------------------------------
Chilean power sector holding Enersis, which is owned by the
Spanish energy group Endesa Espana, informed Chile's securities
regulator SVS that by June 11, shareholders have already
subscribed US$1,273,792,000 worth of 15,055,406,909 shares

That's equivalent to or 61.75% of its proposed US$2 billion
(24,382,994,448 shares) share capital increase over the first
eight days of the operation.

The Elesur holding, through which Endesa Spain owns Enersis,
bought US$1.22 billion and third parties the remaining US$54.8
million, the statement to the bourse said. Elesur exchanged debt
for new shares while other shareholders injected fresh capital in
the Company.

The operation helped Enersis reduce its debt by US$1.406 million
(14.8%), cutting servicing costs by about US$20 million, thereby
improving its financial structure.

CONTACT:  Enersis SA
          Avenida Kennedy Vitacura No 5454
          Santiago Chile  1557
          Phone: +56 2 353 4400
          Fax:  +56 2 378 4768
          Home Page: http://www.enersis.cl
          Contacts:
          Engr Alfredo Llorente Legaz, Chairman
          Engr Rafael Miranda Robredo, Vice Chairman

          Endesa SA
          Principe de Vergara 187
          28002 Madrid
          Spain
          Phone: +34 91 213 10 00
          Fax:  +34 91 563 81 81
          Telex:  22917 ENE
          Home Page: http://www.endesa.es
          Contacts:
          Rodolfo M. Villa, Chairman
          Rafael Miranda Robredo, Managing Director



===============
C O L O M B I A
===============

PAZ DEL RIO: Struggles to Reinsert Itself in the Global Industry
----------------------------------------------------------------
One of the main challenges facing Colombian steelmaker Acerias
Pas del Rio in going forward is its expansion into the global
industry, La Rep£blica newspaper quoted company President Edgar
Plazas Herrera as saying. Business News Americas recalls that
Plazas, who spoke At the Company's AGM, said that strategic
alliances, adjusting prices to international levels and
substituting imports, among others, were all on the cards.

In the meantime, the executive revealed that the Company,
majority-owned by the regional government, will push ahead with
its technology reconversion process begun early this year, which
included paying US$95,000 for a ladle furnace.

Together with a continuous casting machine and other equipment,
this will allow the Boyaca-based Company to double its present
capacity of 250,000t.

Paz del Rio, which is in a form of bankruptcy protection, has
until July 18 to come up with a scheme to restructure its
finances.

CONTACT:  ACERIAS PAZ DEL RIO S.A.
          Carrera 8 # 13-31, Pisos 7 al 11
          Bogota, D.C.
          Phone: (091) 282-8111
          Fax: (091) 282-6268 282-3480
          E-mail: apdr@multi.net.co



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

PETROECUADOR: Govt. Scraps Plan To Award State Fields To Firms
--------------------------------------------------------------
Ecuador abandoned a plan to have private firms produce crude in
state oil-fields. Instead, the government will now seek private
investment via service contracts for the fields, but would not
bid out their administration, Reuters reports, citing Energy
Minister Carlos Arboleda.

"After analyzing our oil policy, the president has ordered that
the five big fields operated by Petroecuador should not be opened
up for bids," Arboleda said in an interview with local television
station Telesistema. "There is no privatization. There is no
bidding," he added.

Arboleda made his comments after tensions rose with striking oil
workers who say they have slashed pumping through the nation's
only oil pipeline by 50% and as the government sent the army to
stand guard at oil installations to restore normalcy.

On Friday, Petroecuador declared force majeure on crude exports
due to the strike.

"We are operating at half of our capacity in the whole industry
from production to the refineries, everything is at minimum
levels," according to a source.

"Obviously this will affect exports, so we need the force majeure
to avoid future problems with delayed shipments," the source
added.

The Sote pipeline normally transports about 400,000b/d from
Amazon oil fields to the Pacific coast for refining or export.

Meanwhile, presidential advisor Polibio Cordova revealed in a
press release that the strike has resulted in US$30 million in
losses.

"To date, the country has lost US$30 million and, if (the strike)
continues or gets worse, much more could be lost," Cordova said.

He added that the work stoppage could have a "serious affect on
the national economy, which, more than ever, urgently needs to
recover and be reactivated."



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

GRUPO IUSACELL: Largest Shareholders Announce Sale Plans
--------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (Iusacell or the Company) (BMV:CEL)
(NYSE:CEL) announced on Friday that its two largest shareholders,
Verizon Communications and Vodafone Americas BV, have agreed to
tender all of their shares, representing 73.9% of the Company's
outstanding shares, in a public tender offer to be commenced in
Mexico and the United States of America by Movil Access, S.A. de
C.V., a Mexican telecommunications service provider, a subsidiary
of Biper, S.A. de C.V., which is part of Grupo Salinas.

The Company will make further public announcements in connection
with the tender offer at the appropriate time and as required by
Mexican and United States securities laws.

The Company's shareholders should read the Company's
Solicitation/Recommendation Statement on Scheduled 14D-9 when it
is filed by the Company with the Securities and Exchange
Commission of the United States of America (the SEC) as it will
contain important information. The Solicitation / Recommendation
Statement and other public filings may from time to time by the
Company with the SEC are available without charge from the
SEC's web site at www.sec.gov.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell) (NYSE:CEL) (BMV:CEL) is a
wireless cellular and PCS service provider in seven of
Mexico's nine regions, including Mexico City, Guadalajara,
Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. The
Company's service regions encompass a total of approximately 92
million POPs, representing approximately 90% of the country's
total population.

CONTACT:  Grupo Iusacell, S.A. de C.V., Mexico City
          Investor Contacts:
          Russell A. Olson
          Phone: 011-5255-5109-5751
          Email: russell.olson@iusacell.com.mx
             or
          Carlos J. Moctezuma
          Phone: 011-5255-5109-5780
          Email: carlos.moctezuma@iusacell.com.mx


GRUPO IUSACELL: Movil@ccess Announces Purchase Offer Terms
----------------------------------------------------------
Movil@ccess, S.A. de C.V., a Mexican telecommunications service
provider, subsidiary of Biper, S.A. de C.V. (BMV: MOVILAB), a
company part of Grupo Salinas, announced Friday that it has
agreed to make an offer to acquire 100% of the capital stock of
Grupo Iusacell, S.A de C.V. (NYSE: CEL) (BMV: CEL), a provider of
wireless communications in Mexico, for US$10 million.

The stock of Grupo Iusacell is traded on the Mexican Stock
Exchange and the New York Stock Exchange. Verizon Communications
(NYSE: VZ) and Vodafone Americas B.V. currently own 39.4% and
34.5% of Grupo Iusacell, respectively, and the remaining capital
stock is held by public investors in Mexico and in the U.S.

Movil@ccess has agreed with Verizon and Vodafone Americas to
commence tender offers in Mexico and the U.S. for all of the
outstanding Class A and Class V capital stock of Grupo Iusacell
(including the American Depositary Shares comprised of Series V
shares), and Vodafone and Verizon have agreed to tender their
shares into the Mexican offer. In the Mexican offer, Movil@ccess
will offer a price equal to Ps 0.05712180 per Series A share and
Ps 0.05712180 per Series V share (or the dollar equivalent) and,
in the U.S. offer, the dollar equivalent of Ps 5.712180 per ADS.
The offers will be commenced once the Mexican tender offer has
been approved by the Mexican National Securities and Banking
Commission (Comision Nacional Bancaria y de Valores), which is
expected by mid-July.

"We envision that continued dynamism in the underserved Mexican
wireless telephony market -- an economic sector that is vital for
the global competitiveness of Mexico -- together with the ample
telecommunications infrastructure of Iusacell and a solid
business model going forward will permit us to complete a
successful turnaround benefiting Iusacell's stakeholders,"
stated Ricardo B. Salinas, President of the Board of Directors of
Biper. Movil@ccess anticipates commencing a constructive dialogue
with all of Iusacell's stakeholders in the near future.

Company Profile

Grupo Salinas is a group of Mexican companies owned or controlled
by the family of Ricardo B. Salinas Pliego. Grupo Salinas
includes TV Azteca, Elektra, Unefon, Biper, Todito.com, Telecosmo
and Movil@ccess. Movil@ccess and Biper are in the
telecommunication service provider business.

CONTACT:  Mariluz Calafell Salgado
          Director of Finance and Administration
          Biper, S.A. de C.V.
          Phone: +011-52-55-5447-6183
             or
          Hector Romero, Investor Relations
          Grupo Salinas
          Phone: +011-52-55-3099-0060

          Home Page: http://www.biper.com.mx


MAXCOM TELECOMUNICACIONES: Releases May Investor Update
-------------------------------------------------------
The number of lines in service at the end of May 2003 for Maxcom
Telecomunicaciones, S.A. de C.V. increased 1% to 133,122 lines,
from 131,898 lines at the end of April 2003. Residential lines at
the end of May 2003 were 104,642, while 23,270 lines were
business lines and 5,210, or 3.9%, were wholesale lines.

Total customers grew 1% to 95,241 at the end of May 2003, from
94,682 at the end of April 2003. The growth in number of
customers by region was distributed as follows: in Mexico City
the number of customers remained at the same level of the
previous month; (ii) in Puebla, customers grew 1%; and (iii) in
Queretaro, the increase was 3%. The number of business customers
decreased 1% while residential customers grew 1%.

LINES         Mar-03     Apr-03    May-03       vs.     vs.
                                              Mar03    Apr03
Business
Lines        22,505     22,892    23,270        3%      2%
Residential
Lines       102,387    103,526   104,642        2%      1%
Total Voice
Lines       124,892    126,418   127,912        2%      1%
Wholesale      5,090      5,480     5,210        2%     -5%
     TOTAL   129,982    131,898   133,122        2%      1%

CUSTOMERS     Mar-03     Apr-03    May-03       vs.     vs.
                                               Mar03   Apr03

Business       3,870      3,864     3,817       -1%     -1%
Residential   89,832     90,818    91,424        2%      1%
     TOTAL    93,702     94,682    95,241        2%      1%

Mexico        44,840     45,113    45,002        0%      0%
Puebla        46,487     47,125    47,732        3%      1%
Queretero      2,375      2,444     2,507        6%      3%

                                 Lines in service     Customer
base
    1Q01                               28,352            13,208
    2Q01                               33,205            18,653
    3Q01                               56,786            32,621
    4Q01                               77,981            47,196
    1Q02                               85,339            53,059
    2Q02                               91,009            58,772
    3Q02                              109,903            74,127
    4Q02                              125,231            89,950
    1Q03                              129,982            93,702
    Apr-03                            131,898            94,682
    May-03                            133,122            95,241

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile connectivity
to micro, small and medium- sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance and data services in greater metropolitan Mexico City,
Puebla and Queretaro.


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

BANCO GALICIA URUGUAY: To Survey Clients on Repatriation Options
----------------------------------------------------------------
Banco Galicia Uruguay (BGU), a wholly owned subsidiary of Banco
de Galicia y Buenos Aires S.A., will launch a survey of its
clients on June 17 to gauge their interest in several new options
for getting back deposits that have been trapped in bank vaults
for the past 16 months, relates Dow Jones.

Citing an official, Dow Jones reports that BGU would give clients
the chance to exchange their deposits for government-backed
bonds, convertible bonds issued by the bank, fixed dollar
payments, or a mixture of all three.

The offer will be an addition to the offer the Company made - and
which was accepted - in December. That offer promised to return
over nine years the US$1.25 billion in deposits clients had
trapped in the bank since last February.

BGU, which operates a full banking license in Uruguay, will take
feedback on its proposal until July 15.

CONTACT:  BANCO GALICIA URUGUAY S.A.
          World Trade Center
          Luis A. Herrera 1248 Piso 22 Montevideo
          Uruguay
          Tel.:(+598-2) 628-1230
          www.bancogalicia.com.uy


UTE: Goes Back to Court to Appeal Latest Ruling
-----------------------------------------------
Uruguay's state power company UTE has approached the Argentine
courts to appeal an earlier ruling that ordered it to fulfill its
commitments to two generators, whom it signed power purchase
agreements (PPAs) with. Business News Americas recalls that UTE
signed power purchase agreements (PPAs) with Piedra del Aguila
and Central Puerto in Argentine pesos.

However, UTE cancelled those PPAs after the Argentine government
signed a decree converting the contract into US dollars at an
exchange rate of one-to-one. Given the current exchange rate of
about ARS3 to the US dollar, the decree effectively tripled the
cost of power bought by UTE.

Just before it cancelled those contracts, UTE signed another PPA
with Cemsa in Argentine pesos to guarantee supplies during the
2002-2003 summer period.

This led Piedra del Aguila and Central Puerto to sue UTE. The
court sided with the generators, saying that although the
government's decree was unconstitutional, UTE had to fulfill its
commitments under the PPAs.

UTE now wants the court to overturn this last decision to avoid
making the payments.




               ***********


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 * * *