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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

          Wednesday, July 9, 2003, Vol. 4, Issue 134

                           Headlines


A R G E N T I N A

ARGENTINE BANKS: Analysts Forecast Renewed Profitability by 2004
CLUB ATLETICO: Moves Towards Reorganization
DIRECTV LA: Moves To Extend Exclusive Periods
FRANSPORTAR: Seeks Court Authorized Reorganization Process
IEBA: Creditors Have Until September 5 to Validate Claims

JUAN MINETTI: Bonds Get Default Rating from S&P
METROVIAS: Fitch Maintains Share Ratings at `3'
N Y H: Moves for Court Directed Reorganization
NATHAN: Submits "Concurso Preventivo" Motion To Court
TELECOM ARGENTINA: Tax Agency Seizes Documents from Offices


B E R M U D A

FLAG TELECOM: Files Annual Report Following Restructuring
FOSTER WHEELER: To Upgrade Endesa's Pontes Power Plant in Spain
SEA CONTAINERS: Standard & Poor's Watch Negative Unchanged


B O L I V I A

* IMF Approves US$15 Million Disbursement to Bolivia


B R A Z I L


TELEMAR: Seeks Single Supreme Court Ruling On Rates Issue
USIMINAS: Lowers Flat Products Consumption Forecast


C O L O M B I A

ALIANZA SUMMA: Seeks Government Approval To Dismiss More Workers
TELECOM: Seeks To Annul 15 JV Contracts With Foreign Firms


D O M I N I C A N   R E P U B L I C

BANINTER: Scotiabank Set To Finalize Purchase


J A M A I C A

AIR JAMAICA: To Terminate Negril Route By Month's End


M E X I C O

TV AZTECA: Management Forecasts Nominal EBITDA Growth This Year


P A N A M A

DISA: Liquidation Enters Fourth Phase


P E R U

MINERA VOLCAN: Receives New Proposal For Asset Purchase


V E N E Z U E L A

SIDOR: Seeks To Break Production Records This Year


     - - - - - - - - - -


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

ARGENTINE BANKS: Analysts Forecast Renewed Profitability by 2004
----------------------------------------------------------------
Analysts believe that the improved economy in Argentina will help
most local banks get back in the black in the last quarter this
year or early 2004. The welcome news comes after two years of
overwhelming losses, reports Business News Americas. The
significant improvement in the economy follows the culmination of
the highly unpopular deposit freeze imposed in late 2001, new
deposits and increasing demand for consumer loans.

According to Fitch Ratings banking analyst Ana Gavuzzo, most
Argentine banks will be able to leave their losses behind next
year, while Rafael Ber, managing director at Argentine Research,
bets on the fourth quarter this year if the current "favorable
environment" continues to improve.

In the first three months of this year the major private banks
posted the following losses: BBVA Banco Frances US$54.4 million
(ARS153 million), BankBoston US$147 million, Citibank US$74
million, Rio US$70 million and Galicia US$40 million, according
to Fitch.


CLUB ATLETICO: Moves Towards Reorganization
-------------------------------------------
Club Atletico Lafinur, the Argentine sports event organizer,
makes the first move towards reorganization by submitting its
"concurso preventivo" application to the Civil and Commercial
Tribunal of San Luis, reports Infobae.

Mr. Humberto Zibarelli was chosen by the province's Court No. 3
to act as receiver for this particular case. The report, however,
did not mention the deadline for claims verification.

CONTACT:  Club Atletico Lafinur
          Chacabuco y Bolivar
          San Luis


DIRECTV LA: Moves To Extend Exclusive Periods
---------------------------------------------
Joel A. Waite, Esq., at Young Conaway Stargatt & Taylor LLP, in
Wilmington, Delaware, tells the Court that DirecTV could file a
plan by July 16, 2003, but it wouldn't be consensual.  DirecTV
fears that if forced to file a prematurely formulated Chapter 11
Plan, it would be unlikely to balance the interests of the
Estate, the creditors and other parties-in-interest.

Accordingly, DirecTV asks the Court to extend its Exclusive
Periods to:

    (i) file a Plan through and including November 17, 2003; and

   (ii) solicit Plan acceptances through and including January
        16, 2004.

Mr. Waite contends that cause exists to extend the Exclusive
Periods because:

    (a) DirecTV is a large company with numerous businesses,
        operations and financial interests throughout the United
        States and around the world;

    (b) DirecTV has made substantial progress in this Chapter 11
        case and continues to work diligently on other matters
        related to its reorganization, like:

        -- obtaining the $300,000 DIP Financing for DirecTV to
           continue its business operations on a day-to-day
           basis, without the danger of an immediate liquidity
           crisis;

        -- defending itself from Raven Media's request for venue
           transfer;

        -- defending itself from Infront WM GmbH's motion for
           stay relief to pursue a Switzerland Litigation;

        -- preparing to litigate the Put Agreement rejection;

        -- reviewing and developing strategies with respect to
           the treatment of its executory contracts;

        -- obtaining Court approval of the Employee Retention
           Plan without contest;

        -- stabilizing its business operations;

        -- providing requested information to the Creditors'
           Committee, meeting the requirements under the DIP
           Facility, and preparing the monthly operating reports
           required by the U.S. Trustee;

        -- completing and filing of its Schedules of Assets and
           Liabilities and Statement of Financial Affairs;

    (c) An extension of the Exclusive Periods will provide
        DirecTV with additional time to address numerous tasks
        necessary to the daily administration of this Chapter 11
        case, including:

        -- preparing monthly operating reports;

        -- satisfying the reporting requirements under the DIP
           Agreement;

        -- dealing with issues related to the automatic stay;

        -- responding to vendors' concerns; and

        -- communicating its message to the general public, among
           other things;

    (d) An extension of the Exclusive Periods also affords
        DirecTV to complete its review and assessment of its
        programming and related agreements that will have to be
        resolved before it will have adequate information
        necessary to prepare a disclosure statement and confirm a
        plan;

    (e) Given that the Bar Date is set on September 2, 2003,
        DirecTV or other parties-in-interest are not in a
        position to evaluate the Claims, value its assets and
        business, determine an appropriate capital structure for
        the reorganized company and prepare a disclosure
        statement containing adequate information;

    (f) An extension of the Exclusive Periods will afford DirecTV
        and all other parties-in-interest an opportunity to
        develop fully the grounds for serious negotiations
        towards a plan of reorganization; and

    (g) Creditors will not be prejudiced with the requested
        extension given that the request is modest in length in
        light of the extensions granted in other large cases.
        (DirecTV Latin America Bankruptcy News, Issue No. 9;
        Bankruptcy Creditors' Service, Inc., 609/392-0900)


FRANSPORTAR: Seeks Court Authorized Reorganization Process
----------------------------------------------------------
Argentine newspaper El Cronista Comercial reports that
Fransportar S.R.L. applied for "concurso preventivo". The case is
handled by court No. 25 of Buenos Aires, under Dr. Silvia Irene
Rey, with assistance from Dr. Javier Cosentino of Secretary No.
50 of Buenos Aires. The Company stopped paying its debts in
December of last year.

CONTACT:  Fransportar S.R.L.
          Pedro Chutro 2929
          Buenos Aires


IEBA: Creditors Have Until September 5 to Validate Claims
---------------------------------------------------------
Argentine holding company Inversora Electrica de Buenos Aires
(IEBA) named the law firm Susana L. Prisant and Associates to
take control of its remaining US$162 million debt and negotiate
with creditors. Citing IEBA's statement to the Buenos Aires stock
market, Business News Americas reports that IEBA's creditors have
until September 5 to request the validation of their claims
before the law firm as part of IEBA's bankruptcy protection
process.

Business News Americas recalls that IEBA, the owner of power
distributor Edea, defaulted on US$230 million of bonds in
September 2001 following the conversion of rates from US dollars
into Argentine pesos. Luxemburg-based Camuzzi International,
which controls 55% of IEBA through Buenos Aires Energy Company,
in April offered to buy back the defaulted bonds. However, just
30% of creditors accepted the terms, and the Company cannot pay
the remaining debts.

United Utilities, which owns the remaining 45% of IEBA, has said
it will not put any additional equity into the holding.


JUAN MINETTI: Bonds Get Default Rating from S&P
-----------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
issued default ratings to bonds issued by local company Juan
Minetti recently. The National Securities Commission of Argentina
desribed the concerned bonds as "Obligaciones Negociables, no
convertibles y subordinadas, emisi¢n aprobada por Asamblea Gral.
Ordinaria y Extraordinaria de fecha 10.11.95", and classified
them under "simple issue." The bonds, worth a total of US$12
million, will mature on December 1, 2005.

S&P said that the 'raD' rating is assigned to issues that are
currently in default. The rating was issued based on the
Company's finances as of the end of March 2003.


METROVIAS: Fitch Maintains Share Ratings at `3'
-------------------------------------------------
Credit rating agency Fitch said recently that it maintained the
ratings on shares of Argentine public transport company Metrovias
at Category 3. The analysis indicates low-liquidity shares whose
issuers have a good capacity to generate profits.

The ratings agency explained that the Company's exclusive 24-year
concession, improved service quality, the country's economic-
financial imbalance and operative deterioration due to adverse
external factors were all taken into account in its decision on
the rating.

A government-dictated fare freeze in the face of increasing costs
and dollar-denominated supplies have created pressure on
Metrovias' cash flow, while the country's economic situation has
led to a drop in passengers, said Fitch, highlighting the
sector's highly regulated service.

The Company, a division of local infrastructure and services
company CLISA, posted a 27.3mn peso (US$9.72mn) net loss in 2002,
compared to a net loss of 35.3mn pesos the year before; its
investment obligation over its 24-year concession - which ends in
2017 - is 1.7bn pesos, says Business News Americas.


N Y H: Moves for Court Directed Reorganization
----------------------------------------------
Argentine restaurant services company N. y H. Bruno S.R.L. is
seeking court permission to reorganize its business reports local
news source, Infobae. The Company has submitted its motion for
"concurso preventivo" to the Civil and Commercial Tribunal of
Concordia.

Concordia's Court No. 2 assigned Mr. Sergio Daniel Argoitia as
receiver for the process. Creditors are required to have their
claims verified by August 13 this year, as the receiver will file
the individual reports on October 2. The general report is
expected by November 14. The informative assembly will be on
March 1 next year.

CONTACT:  N. y H. Bruno S.R.L.
          1 de Mayo 59,
          Concordia, Entre Rios

          Mr. Sergio Daniel Argoitia
          Andrade 124
          Concordia


NATHAN: Submits "Concurso Preventivo" Motion To Court
-----------------------------------------------------
Court No. 3 of Buenos Aires, which is under Dr. Rodolfo Herrera,
received a motion for "concurso preventivo" from local car repair
company Jorge M. Nathan S.A., relates El Cronista Comercial.

The Company, which stopped making debt payments in March this
year, is asking the court's permission to start its
reorganization proceedings. The report, however, did not indicate
whether a receiver has been assigned to the case.

CONTACT:  Jorge M. Nathan S.A.
          1st Floor
          Ave. Cordoba 657
          Buenos Aires


TELECOM ARGENTINA: Tax Agency Seizes Documents from Offices
-----------------------------------------------------------
Argentina fixed-line giant Telecom Argentina STET-France Telecom
S.A. revealed late Friday that agents from the country's tax
agency AFIP searched its offices and confiscated the minutes of
board meetings dating back to 1997, relates Dow Jones.

The search was "one of the proceedings which have taken place in
a great number of entities" recently, the Company said in a
statement to the local bourse.

President Nestor Kirchner has made a crackdown on corporate tax
evasion a central plank of his new government. He has beefed up
the number of officials hired to investigate evasion and has
encouraged the tax agency to take an aggressive approach to any
individuals or corporations suspected of breaking the law.



=============
B E R M U D A
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FLAG TELECOM: Files Annual Report Following Restructuring
---------------------------------------------------------
FLAG Telecom Group Limited (OTC: FTGLF.PK) announced Monday that
it has filed all reports required by Section 12 of the Securities
Exchange Act of 1934 subsequent to the Company's emergence from
protection under Chapter 11 of the U.S. Bankruptcy Code on
October 9, 2002. Together with its independent auditors, Ernst &
Young LLP, the Company has finalized its audit of its financial
results for the year ended December 31, 2002 as well as a re-
audit of the financial results of the Company's predecessor for
the years ended December 31, 2001 and 2000. On July 3, 2003, the
Company filed with the Securities and Exchange Commission three
separate periodic reports: Quarterly Report on 10-Q for the
period ended September 30, 2002, Annual Report on Form 10-K for
the year ended December 31, 2002 and Quarterly Report on Form 10-
Q for the period ended March 31, 2003. In accordance with AICPA
Statement of Position 90-7, the Company adopted "fresh start"
accounting as of October 9, 2002 to reflect the estimated fair
market value of its assets and liabilities and its new capital
structure as of its date of emergence from Chapter 11.

Patrick Gallagher, FLAG Telecom's Co-Chairman and Chief Executive
Officer said: "We emerged from financial restructuring with a
quality world-wide network and an excellent customer base. Over
these last months we have successfully maintained a strong
working relationship with our existing customers and have
developed promising relationships with potential new customers.
With the release of our periodic reports, we are now able to
confirm FLAG Telecom's financial soundness and ability to compete
going forward. We expect to maintain our leading global market
position supported by a strong balance sheet."

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


FOSTER WHEELER: To Upgrade Endesa's Pontes Power Plant in Spain
---------------------------------------------------------------
Foster Wheeler Ltd. (NYSE: FWC) announced Monday that its
subsidiary, Foster Wheeler Iberia, S.A.'s Energy Division, signed
a contract with Endesa, Spain's largest utility, to upgrade four
steam-generating units at the As Pontes power plant in La Coruna.
Foster Wheeler will carry out the project through a partnership
with Duro Felguera S.A., a Spanish manufacturing and construction
contractor. The total contract is valued at approximately $152
million, with Foster Wheeler's work totaling approximately $76
million.

Foster Wheeler originally supplied the 350 MWe boilers between
1976 and 1979 as brown coal units and modified the systems
between 1993 and 1996, allowing the boilers to fire up to 50
percent imported coal. As a result of the run-down of the local
brown coal mine supplying the plant, the final upgrade is
designed to enable the boilers to fire 100 percent imported low-
sulfur coal.

The project will be executed in several phases with work on the
first unit, As Pontes' Number 2 boiler, commencing immediately
and the entire project scheduled to be completed in 2008. The
majority of work will be done without taking the boilers out of
service and final modifications to the systems will be made
during scheduled outages, in February 2005, the first half of
2006, the second half of 2007, and the first half of 2008.


SEA CONTAINERS: Standard & Poor's Watch Negative Unchanged
----------------------------------------------------------
Standard & Poor's Ratings Services said Monday that its ratings
on Sea Containers Ltd., including the 'BB-' corporate credit
rating, remain on CreditWatch with negative implications after
Sea Containers completed the refinancing of $158 million of debt
maturities on July 1, 2003. Ratings were placed on CreditWatch on
Nov. 14, 2002, and subsequently lowered to current levels on
April 10, 2003, due to reduced financial flexibility and
constrained liquidity.

"Ratings on Sea Containers remain on CreditWatch pending the
outcome of the company's planned asset sales, the majority of
which are expected to be completed in July 2003," said Standard &
Poor's credit analyst Betsy Snyder. Proceeds of the asset sales
will be used to reduce the company's new $158 million bridge
facility that matures in June 2004. The $158 million of debt
securities that matured on July 1, 2003, were refinanced through
a drawdown of the bridge facility, along with an exchange of
$22.5 million of new debt securities with a higher coupon and
longer maturity for a similar amount of the debt securities that
matured. Although the assets to be sold are noncore, the company
will be left with reduced cash flow and fewer assets available
for sale if it encounters further financial difficulties. If Sea
Containers does not conclude its asset sales in a timely manner,
ratings could be lowered. If the company is successful, ratings
would likely be affirmed.

Ratings on Bermuda-based Sea Containers reflect its heavy
upcoming debt maturities, and reduced financial flexibility;
partially offset by fairly strong competitive positions in its
major businesses. Sea Containers is involved in passenger
transport operations and marine cargo container leasing. It also
has a 47% stake in Orient-Express Hotels Ltd. (OEH). Passenger
transport is the largest operation, accounting for approximately
79% of total revenues. This business includes passenger and
vehicle ferry services in the English Channel, the Irish Sea, and
the Northern Baltic Sea; and passenger rail service between
London and Scotland, GNER (Great North Eastern Railway). While
Sea Containers is one of the larger ferry participants on routes
it serves, this is a highly competitive business, with several
participants. In 2002, Sea Containers acquired the 50% of Silja
OyjAbp, a major ferry operator in the Baltic Sea, that it did not
already own. GNER operates under a U.K. government franchise that
expires in 2005. Marine cargo container leasing primarily
includes Sea Containers' share of its joint venture with General
Electric Capital Corp., GESeaCo SRL, one of the largest marine
cargo container lessors in the world. Leisure investments include
the company's 47% stake in OEH, which owns and/or manages deluxe
hotels, tourist trains, river cruise ships, and restaurants
located around the world. Sea Containers had previously owned
100%, but has been selling its stake over the past few years,
using proceeds to reduce debt. Sea Containers also owns a variety
of smaller businesses.

Analyst:  Betsy R Snyder, CFA
          New York
          Phone: (1) 212-438-7811




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B O L I V I A
=============

* IMF Approves US$15 Million Disbursement to Bolivia
----------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Monday the first review of Bolivia's performance under
a one-year, SDR 85.75 million (about US$121 million) Stand-By
Arrangement, which was approved on April 2, 2003. The completion
of this review enables the release of SDR 10.72 million (about
US$15 million) to Bolivia.

The Executive Board also approved Bolivia's request for waivers
of the non-observance of certain performance criteria and of the
applicability, until July 17, 2003, of quantitative performance
criteria for end-June 2003.

Following the Executive Board discussion on Bolivia, Anne
Krueger, First Deputy Managing Director and Acting Chair, said:

"Performance under Bolivia's economic program supported by the
Stand-By Arrangement so far has been encouraging. Despite the
difficult political and social environment, the economic
situation remains under control, there are some signs of recovery
in the agricultural and manufacturing sectors, bank deposits are
almost back to end-2002 levels, and inflation remains subdued.

"The policy framework for 2003 is establishing a basis for
sustained growth. A central element of the framework is a
substantial reduction in the fiscal deficit needed to achieve
fiscal sustainability, while protecting spending on poverty
alleviation programs. Timely fiscal adjustments have been made to
keep the 2003 fiscal program on track, mainly through better
targeting of public investment and current spending. The
government is continuing its efforts to push ahead with its
fiscal reform agenda, including by proposing a modern tax
procedures code to Congress, controlling the high transitional
costs of the pension reform, and improving the effectiveness of
fiscal decentralization.

"Progress is being made toward putting in place a comprehensive
strategy for restructuring the corporate and financial sectors.
Initial steps include the issuance of regulations for bank
resolution and for prompt corrective action for banks with
problems, and the appointment of a high-level team to oversee the
overall strategy. Further steps in the authorities' agenda for
2003 entail the approval by Congress of a modern bankruptcy law
and an appropriate voluntary debt workout mechanism, and
strengthening the judicial system's ability to handle bankruptcy
proceedings. The restructuring of the financial and corporate
sectors is essential for the resumption of bank credit and
sustained economic growth.

"Effective utilization of Bolivia's abundant natural gas
resources is crucial to ensure favorable longer term growth
prospects. The government is working to develop public support
for proceeding with the LNG export project in a way that
maximizes the project's contribution to realizing Bolivia's
growth potential.

"The authorities are building upon the progress made under the
Stand-By Arrangement by developing a medium-term economic program
aimed at fostering a higher rate of growth and poverty reduction.
They plan to request support under the IMF's Poverty Reduction
and Growth Facility during the last quarter of 2003," Ms. Krueger
stated.

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



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B R A Z I L
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TELEMAR: Seeks Single Supreme Court Ruling On Rates Issue
---------------------------------------------------------
Tele Norte Leste Participacoes SA (TNE), or Telemar, is asking
the Supreme Court in Brasilia to bring all cases concerning the
eight injunctions preventing fixed-line companies from raising
bills under one roof and rule on them "in one go".

The Company said that there are too many cases at hand, and a
decision from the highest court would settle the issues, since
some of the injunctions given in a singles state reportedly
presented contradictory reasons. Other companies affected by the
injunctions include Telefonica SA's (TEF) local unit
Telecomunicacoes de Sao Paulo SA (TSP) and MCI's long-distance
subsidiary Embratel Participacoes SA (EMT).

Dow Jones suggests that the Company may meet some political
resistance as the government is encouraging the injunctions to
help reduce inflation and revive the economy.

The issue started when a state judge in Rio de Janeiro blocked
rates hike imposed by the country's telecoms regulator Anatel in
the state last week. By the following Tuesday, similar actions
were filed in the states of Minas Gerais, Santa Catarina, and Rio
Grande do Sul.

According to the Ministry of Communications, six of the
injunctions apply only to the states where they were issued,
while the other two applies to Brazil as a while.

Telemar's American Depositary Receipts in New York were shedding
0.9% to $11.68 in afternoon trade Monday, says Dow Jones.


USIMINAS: Lowers Flat Products Consumption Forecast
---------------------------------------------------
Due to a slump in the demand from large steel consumer, Brazilian
steelmaker Usiminas revised downward its growth forecast for
domestic consumption of flat products this year from 5.2% to 4%,
Business News Americas reports, citing a company executive.

Rinaldo Campos Soares, president of the Belo Horizonte-based
company, said the initial forecast was 9.06Mt for the Brazilian
market, but this is now expected to fall to 8.90Mt. The market
forecast includes Brazil's other flat steelmakers: Sao Paulo-
based Cosipa, Vitoria-based CST and Rio de Janeiro-based CSN.

The demand from large steel consumer is being forecast to fall
6.1% in the second half of this year compared to the first six
months. Usiminas plans to up exports from September onward to
compensate for the weaker domestic demand.

"Our main goal was to guarantee supplies to the domestic market,
which reached a monthly record of 435,000t in February. Now we
are exporting the surplus," Soares was quoted as saying.

Usiminas and its subsidiary Cosipa expect to sell 70% of their
production on the local market this year.



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

ALIANZA SUMMA: Seeks Government Approval To Dismiss More Workers
----------------------------------------------------------------
Beleaguered Colombian airline group Alianza Summa, which includes
flag carrier Avianca, revealed Thursday that it is seeking for
government approval of a plan to dismiss 2,148 workers, says
Reuters. The plan, which will see half of the group's staff sent
home, needs the approval of the government as it exceeds legal
limits.

Normally, Colombian law only allows Avianca, which has 2,860 of
Summa's total workforce, to dismiss 5% of its payroll in one go.
ACES, with 1,441 employees, would be allowed to remove 7% and
Avianca's subsidiary SAM, which has 250 workers, would be allowed
to get rid of 9%.

Reuters recalls that Avianca sought Chapter 11 bankruptcy
protection in the United States in March. Last month, it said it
was renegotiating US$269 million in debt, twice as much as it had
originally admitted to in public.

The Colombian Association of Civil Aviators, which is owed US$75
million by Avianca and is its biggest creditor, said Summa's
proposed dismissals would violate an agreement signed in December
to freeze pilot head count for two years.

But Summa lawyers suggested that the accord allowed dismissals
under certain conditions.

Already, Summa has sent its petition to the Social Protection
Ministry on June 16. The ministry has two months to respond.

Summa, which was formed by the merger of Avianca with fellow
Colombian airlines Aces and Sam last year, is owned 50-50 by
Colombian conglomerate Valores Bavaria and by the National Coffee
Growers' Federation.


TELECOM: Seeks To Annul 15 JV Contracts With Foreign Firms
----------------------------------------------------------
Colombia's state-run telephone company Telecom asked the Bogota
Chamber of Commerce to declare void 15 joint venture contracts
with foreign firms, including Nortel Networks Corp. and Ericsson,
which are demanding US$1.8 billion. The money-losing firm, which
began liquidation last month, said that it wants to overturn the
contracts, which illegally guaranteed returns for installing
phone lines across the war-torn Andean nation.

"The law does not allow a guarantee of profitability, nor a
division of income as was made in the contracts," Telecom said in
a statement.

Telecom began liquidation in June after chalking up losses of
US$42.9 million in 2002. The government has created a new firm,
called Colombia Telecomunicaciones, which will operate the old
Telecom's facilities and honor its debts, including an estimated
US$2 billion in pension liabilities.

The 15 joint-venture contracts were signed between 1993 and 1998
and resulted in the sale of 1.3 million of the 1.6 million
telephone lines installed. Telecom said only eight contracts were
still being executed.



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

BANINTER: Scotiabank Set To Finalize Purchase
----------------------------------------------
Peter Godsoe, chairman of Canada's Scotiabank, is expected to
travel to the Dominican Republic to finalize the purchase of
intervened Dominican bank Banco Intercontinental (BanInter),
according to DR President Hipolito Mejia.

The president was quoted by local daily Hoy as saying that the
Canadian bank will take over all or part of the assets of
BanInter, in a deal that's expected to help the country's
financial system recover following the instability triggered by
scandals at BanInter.

Business News Americas recalls that BanInter was intervened by
the central bank in April after authorities uncovered fraudulent
operations. In mid June, central bank chairman Jose Lois Malkun
revealed that Scotiabank was in talks to buy BanInter's assets
and that the central bank and the private banking sector had
allocated 50bn pesos to cover the interest of BanInter savers.



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

AIR JAMAICA: To Terminate Negril Route By Month's End
-----------------------------------------------------
Air Jamaica Express announced that beginning July 31, it will
cease to operate its intra-island Negril route, relates
RJRNews.Com. The decision was prompted by a decline in revenues
on the route following last year's opening of the new highway
from Negril to Montego Bay. The airline said it can no longer
absorb the losses being incurred in order to maintain the route.

Air Jamaica has been struggling to keep its wings aloft.  Last
year, according to TCR-Latin America, the carrier lost more than
US$90 million. In March this year, it cut 25 managers to trim
operating expenses.

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



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

TV AZTECA: Management Forecasts Nominal EBITDA Growth This Year
---------------------------------------------------------------
Ricardo Salinas, TV Azteca chairman said that Mexico's second
biggest broadcaster expects to see a 10% nominal growth in EBITDA
this year compared to 2002, relates Reuters. Salinas revealed
costs are down this year compared to last year because of the
expense of sending equipment and reporters to the soccer World
Cup in Japan and South Korea, which means Azteca will see
operating earnings growth despite flat or slightly lower
revenues.

"Sales are flat to a bit low. But since we're saving all that
money we have a positive margin effect," Salinas told Reuters in
an interview. "It looks like we're going to have a 10 percent
(nominal) increase in EBITDA."

In real, or inflation-adjusted, terms earnings before interest,
taxes, depreciation and amortization, or EBITDA, will grow a
maximum of 5% this year, the investor relations office from
Salinas' umbrella group, Grupo Salinas, said.



===========
P A N A M A
===========

DISA: Liquidation Enters Fourth Phase
-------------------------------------
Liquidators of Banco Disa are now preparing the fourth report on
the recovery of some US$95 million in funds, Panamanian daily La
Prensa reports. The bank's former account holders will meet on
July 17 to continue with talks regarding the release of about
US$50 million in savings currently frozen. The decision is
pending the resolution of the 25 challenges the bank is facing.

The bank's other creditors have presented demands form money owed
to them. National bank Banco Nacional de Panama (BNP) is
demanding for the release of US$8 million, while financial group
Providence Corporation is asking for US$40 million.

The bank was put in liquidation in October 2001 after
shareholders showed little interest in carrying out a capital
increase and lukewarm interest from other potential buyers, says
Business News Americas.



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

MINERA VOLCAN: Receives New Proposal For Asset Purchase
-------------------------------------------------------
There are now four firms eyeing for the assets of ailing Peruvian
zinc producer Volcan Compania Minera. The interested companies
are Switzerland's Glencore, Brazil's Paraibuna de Metais, local
tin miner Minsur and U.S.-owned BHL Resources Limited. BHL is the
latest firm to express its interest in Volcan.

"We have received a new proposal from BHL Resources Limited and
like the others, it is under evaluation," a company spokesman
said.

Hard-hit by low zinc prices, Volcan has been looking for a
strategic partner for some time to help solve its financial
problems. The Company owes about US$100 million to financial
institutions and US$50 million to suppliers. It reported a net
loss of PEN40.7 million (US$12mn) for 2002, up from a loss of
PEN35.2 million soles the previous year.



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

SIDOR: Seeks To Break Production Records This Year
--------------------------------------------------
Venezuelan steelmaker Sidor pledges to "break down production
records in all lines" in the second half of this year, reports
Business News Americas, citing company chief executive Martin
Berardi. The Company is reportedly receiver sufficient natural
gas supply from the country's state oil enterprise, Petroleos de
Venezuela S.A. (PdVSA) to fulfill its promise. After its recently
completed restructuring, the company now has a 3.5Mt capacity,
and stands as the country's largest private sector exporter.

Sidor is 60% owned by the Amazonia consortium, while the rest
belongs to heavey industry holding company CVG.



               ***********


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

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

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

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