/raid1/www/Hosts/bankrupt/TCRLA_Public/030807.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

          Thursday, August 7, 2003, Vol. 4, Issue 155

                          Headlines


A R G E N T I N A

AOLA: 2Q03 Net Loss Down 33% from Last Year, Numbers Improve
ARCH: Bankruptcy Proceeds With Credit Verification Process
ATTL: Three Groups Remain On Shortlist of Potential Owners
BLADEX: Fitch Upgrades Long-Term Debt Rating to 'BBB-' from 'BB+
CORNET: Court Approves Motion For "Concurso Preventivo"

DEGOMAR: Court Assigns Receiver For Reorganization
DUETO: Court Authorizes Bankruptcy Process
EL SOL: Court Order Makes Bankruptcy Official
EUROMAYOR: Evaluadora Assigns `C' Rating To Corporate Bonds
INTEGRALCO: Calls Creditors To Meeting

INTERANDES: Moody's Rates US$50M of Bonds `BBB-'
MAREXPORT: Seeks Court Authorized Reorganization
MULTIVENTAS: Commences Reorganization
MUSIMUNDO.COM: Credit Verification For Reorganization Starts
NUEVA DINAMICA: Enters Bankruptcy

ORPEPSH: Creditors Called To Meeting
SOINCO: Bankruptcy Proceeds With Credit Verification
TELEFONICA DE ARGENTINA: Tender Results Made Official
TERMOANDES: Moody's Rates US$250M of Bonds `BBB-'
*IMF To Sign 1-Yr. Agreement With Argentina, Official Forecasts


B E R M U D A

LORAL SPACE: Bringing In Greenhill & Co. as Financial Advisors


B R A Z I L

CEMIG: BNDES Loan Not Enough To Settle 2Q03 MAE Payments
COSIPA: Issues $70M Worth of Bonds Abroad
TELEMAR: Minority Shareholders Question Legality Of Oi Purchase
VARIG: Controller OK's TAM Merger


D O M I N I C A N   R E P U B L I C

BANCO BHD: Fitch Affirms Ratings, Concerns Continue
BANCO DOMINICANO: Fitch Affirms, Operating Environment Tough
BANCREDITO: Fitch Ratings Unchanged, Rocky Road Continues
BANCO MERCANTIL: Fitch Lowers Ratings


M E X I C O

AEROMEXICO: CEO/Chairman Steps Down Without Explanation
GRUPO TMM: Board Chairman Schedules Meeting With Shareholders
ISPAT INTERNATIONAL: Reports Improving 2Q03 Financials


V E N E Z U E L A

CANTV: Venezuela's Economic Struggle Yields Poor 2Q03 Results
PDVSA: Subsidiary Completes Payments on US$1 Billion of Bonds


   - - - - - - - - - - -


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

AOLA: 2Q03 Net Loss Down 33% from Last Year, Numbers Improve
------------------------------------------------------------
America Online Latin America, Inc. (Nasdaq:AOLA) announced
Tuesday that its net loss for the quarter ended June 30, 2003,
narrowed 33% from the same period a year ago and 4% from the
first quarter of 2003. This represents the 12th straight quarter
of narrowed losses and reflects an important reduction in cash
utilization from the year-ago period. Additionally, AOL Latin
America now believes its available cash will be sufficient to
fund operations into mid-2004.

The Company's second quarter 2003 net loss applicable to common
stockholders totaled $29.9 million, or $0.22 per class A common
share, basic and diluted, compared with a loss of $44.6 million,
or $0.66 per share, for the quarter ended June 30, 2002. Shares
used in the computation of earnings per share increased to 135.1
million from 67.1 million in the year-ago period as a result of
the previously announced conversion of preferred stock to class A
common stock in January 2003. The second-quarter loss also
represents an improvement from the Company's first quarter 2003
loss of $31.2 million, or $0.25 per share.

AOL Latin America's net loss before dividends on preferred stock
was $26.0 million in the second quarter, narrowing from a net
loss of $39.9 million on the same basis a year ago and $28.2
million in the first quarter of 2003.

Total revenue was $17.7 million in the second quarter of 2003,
down slightly from $18.5 million in the second quarter of 2002,
due primarily to year-over-year weakness in advertising and other
revenue as well as currency devaluation. However, the Company's
second-quarter 2003 total revenue increased from $16.3 million in
the first quarter of 2003 as a result of currency appreciation
and higher advertising revenue.

Subscription revenue totaled $15.9 million, down 2% from $16.2
million in the prior-year quarter, and up 6% from $15.0 million
in the first quarter of 2003. Advertising and other revenue
totaled $1.8 million in the second quarter of 2003, down 21% from
$2.3 million in the quarter ended June 30, 2002, and up 36% from
$1.3 million in the first quarter of 2003. Although advertising
and other revenue increased from the first quarter of 2003, the
Company expects continued softness in online advertising going
forward.

AOL Latin America had approximately 625,000 members at June 30,
2003, down 170,000, or 21%, from 795,000 at the end of the first
quarter of 2003. The decline was due in large part to the
previously announced plan to terminate approximately 90,000
members of the Banco Itau co-branded service who did not choose a
paid plan as well as the termination of members who were not
paying on a timely basis. As with the Company's previous
membership reports, the 625,000 total includes members
participating in the services' free trial periods as well as
members of the co-branded Banco Itau service. The Company now
expects further declines in membership over the remainder of
2003. This is a result of expected further terminations during
the third quarter of Itau members who fail to select a paid plan,
lower than expected registrations in a significant number of
Banco Itau branches under our revised marketing agreement with
Itau and the delayed implementation of the previously announced
marketing agreement with McDonalds in Brazil until the third
quarter of 2003.

Reduced Cash Utilization

Cash used in operating activities in the second quarter narrowed
63% to $14.1 million, an improvement from $38.0 million used in
the prior-year period. This also represented an improvement of 7%
from $15.1 million used in the first quarter of this year. The
reductions in cash utilization were achieved primarily as a
result of lower network costs, which were driven by our ability
to negotiate better terms with major telecommunications providers
as well as a resizing of our network to appropriately serve our
paying member base. Lower marketing costs also helped improve
operating cash utilization as the Company continued to focus its
marketing efforts on a more targeted approach.

AOL Latin America, based on its current operating plan which it
expects will result in further reductions to marketing and sales
expenses as well as network costs, now believes its available
cash will be sufficient to fund operations into mid-2004. Cash
and cash equivalents totaled $45.9 million at June 30, 2003.

Charles Herington, President and CEO of AOL Latin America, said:
"AOL Latin America's net loss improved once again in the second
quarter as we focused on the overall efficiency of our operations
and - as always - on providing the highest quality interactive
experience. We continued to work on reducing cash usage during
the quarter and saw substantial improvement from last year's
performance in this important area. The Company is also moving
forward with some exciting new initiatives, including a new
marketing partnership with McDonald's in Brazil that will provide
online access in hundreds of McDonald's locations throughout the
country."

For the first six months of the year, total revenue was $34.0
million, down from $36.7 million in the first half of 2002,
driven by both lower advertising and other revenue and lower
subscription revenues. Subscription revenue totaled $30.8
million, down 3% from $31.9 million in the six months ended June
30, 2002. Advertising and other revenue totaled $3.2 million in
the six months ended June 30, 2003, down 34% from $4.8 million in
the comparable period of 2002.

For the six months ended June 30, 2003, the net loss applicable
to common stockholders was $61.1 million, or $0.47 per share of
class A common stock, basic and diluted, compared with a loss of
$102.1 million, and $1.52 per share in the prior year period.
Shares used in the computation of earnings per share increased
from 67.1 to 130.2 million versus the year-ago period as a result
of the conversion of preferred stock to class A common stock in
January 2003.

Other Highlights

Over the past several months, AOL Latin America continued to make
progress on several fronts, including:

NASDAQ Listing: The Company received notice from the NASDAQ Stock
Market in July that it had regained compliance with the continued
listing requirements of the NASDAQ SmallCap Market.

New AOL Version: During the second quarter, AOL Mexico debuted a
newer version of AOL. In the first 30 days of the launch, more
than 45% of the weekly sessions in Mexico used this new version.
The most popular version of AOL to date in Mexico, it features
updated software that provides improved ease-of-use, greater
reliability and e-mail security and enhancements to popular AOL
features such as e-mail, instant messaging and Buddy List (R)
features.

Content Programming: AOL Latin America continued to offer members
a variety of high-value content features, announcing a new online
chat service together with Claxson Interactive, giving consumers
in Mexico and Argentina the opportunity to join a combined AOL
and El Sitio chat community. In addition, AOL Latin America
relaunched channels throughout the region with new services such
as dictionaries and translators. AOL Puerto Rico held chats
featuring political candidates and musicians as well as added new
content such as Clase.net, a multi-platform educational service
for youths, and Clasificados Online.com - Media Online Inc., a
Spanish language online classifieds service.

Cannes Lions Award: AOL Brazil won a Silver Lion award at the
recent Cannes Lions International Advertising Festival in France.
The prestigious award recognized AOL Brazil's creative efforts in
developing an advertising promotion for its ecotourism site.
Competing against advertising agencies and other Internet Service
Providers, AOL Brazil was the only ISP to win an award in the
Cyber category this year.

Interactive Marketing: The Company announced interactive
marketing agreements with a number of global and regional brands,
including: Editora Abril, one of the largest publishers in
Brazil; Nestle do Brasil; and Ford Motors in Brazil. Audi in
Mexico chose AOL Mexico as its exclusive Internet platform to
announce events and sports news, while Burger King of Mexico and
Warner Music jointly launched an exciting set of promotions to
win music-based prizes.

About AOL Latin America

America Online Latin America, Inc. (Nasdaq:AOLA) is the exclusive
provider of AOL-branded services in Latin America and has become
one of the leading Internet and interactive services providers in
the region. AOL Latin America launched its first service, America
Online Brazil, in November 1999, and began as a joint venture of
America Online, Inc., a wholly owned subsidiary of AOL Time
Warner Inc. (NYSE:AOL), and the Cisneros Group of Companies.
Banco Itau, a leading Brazilian bank is also a minority
stockholder of AOL Latin America. The Company combines the
technology, brand name, infrastructure and relationships of
America Online, the world's leader in branded interactive
services, with the relationships, regional experience and media
assets of the Cisneros Group of Companies, one of the leading
media groups in the Americas. The Company currently operates
services in Brazil, Mexico and Argentina and serves members of
the AOL-branded service in Puerto Rico. It also operates a
regional portal accessible at http://www.aola.com.America Online
members worldwide can access content and offerings from AOL Latin
America through the International Channels on their local AOL
services.

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

CONTACT:  AOL Latin America,
          Fort Lauderdale

          Monique Skruzny
          Phone: 954-689-3142
          Email: aolairr@aol.com


ARCH: Bankruptcy Proceeds With Credit Verification Process
----------------------------------------------------------
Mr. Horacio Julio Munecas, the court-designated receiver for the
bankruptcy of Arch S.R.L., will verify credit claims until August
28 this year. Argentine news portal Infobae relates that the
company was recently declared bankrupt by the Civil and
Commercial Tribunal of Rio Negro.

Rio Negro's Court No. 1, which handles the company's case, set
November 17, 2003 as the deadline for the individual reports. The
receiver is also required to submit the general report on
December 9 this year.

CONTACT:  Horacio Julio Munecas
          Sarmiento 1293
          Rio Negro


ATTL: Three Groups Remain On Shortlist of Potential Owners
----------------------------------------------------------
The list of potential acquirers of regional corporate
communications provider AT&T Latin America (ATTL) has been
narrowed to only three groups, Business News Americas reports,
citing a source close to the process.

According to the report, sale manager Greenhill & Co. initially
registered 20 candidates, but eliminated majority of these
bidders because they were not interested in bidding for the
entire package.

The three selected candidates include otherwise eliminated
companies that were forced to form consortia to participate in
the opportunity.

According to local press, one group includes Chilean corporate
services provider Chilesat, a subsidiary of the Southern Cross
group, and another features Chile's GTD Teleductos. But official
sources told Business News Americas they could not confirm the
bidders' names or expand on the list.

ATTL expects to decide on the finalist by end-August, the source
said. Once a final purchase agreement is drafted it must be
submitted for approval by the US bankruptcy court, which should
make its decision late September. Upon approval, ATTL is
authorized to hold a public auction, giving other bidders an
opportunity to beat the finalist's offer.


BLADEX: Fitch Upgrades Long-Term Debt Rating to 'BBB-' from 'BB+
----------------------------------------------------------------
Fitch Ratings has upgraded Tuesday the long- and short-term
foreign currency debt ratings of Banco Latinoamericano de
Exportaciones (Bladex) to 'BBB-' and 'F3' from 'BB+' and 'B',
respectively. The individual rating was also upgraded to 'D' from
'D/E', while its support rating was affirmed at '4'. The Rating
Outlook on the long term ratings is Stable.

The rating action reflects the bank's improving financial profile
and its sound capital and liquidity indicators as a result of
proactive management of the Argentine crisis, capital raising
activities above our expectations, and a renewed focus on trade
finance. These positive trends are balanced by the formidable
challenges facing the bank, including balance sheet and revenue
growth within a highly competitive market, as well as the
possibility of increased market pressures given the growth of
class E shareholder's equity stake in the second quarter share
issue.

Traditionally, Bladex has been focused on providing trade finance
to the Latin American region, a relatively lower risk activity
that somewhat mitigated the risk of operating in the volatile
region. However, the bank branched into medium term and corporate
lending in the late 1990s, which coupled with the Argentine
crisis, heightened its risk profile. Given its significant
exposure to Argentine borrowers at the peak of the crisis (end-
2001: US$1.1 billion), the bank reported a loss of US$268 million
in 2002 due to provisions for this exposure and experienced a
sharp outflow of liabilities due to the market's heightened risk
perception of the bank.

Since that time, management has taken proactive steps to remedy
the situation and has revised its strategy to focus on short term
trade finance to the region. While new loans have been confined
to short term trade, portfolio re-composition has been somewhat
hampered by the relatively slower pace of Argentine portfolio
reduction. Nonetheless, it has made significant reductions to
this exposure (end-March 2003: US$758 million; net of reserves:
US$401 million), which is set to decline further following the
sale of two of its weakest Argentine assets in the second quarter
of 2003(face value of US$166 million). With the exception of a
few of the exposures identified as the most problematic, which
are reserved accordingly, all Argentine exposures have either
been restructured or have continued to perform normally
throughout the crisis and interest collection from this portfolio
has been good. The portfolio is also concentrated in Brazil,
although notably its medium term unsecured lending has declined
and the economic environment there has improved somewhat since
last year reflected in the change in the sovereign rating outlook
from negative to positive.

The bank has raised capital well in excess of its original stated
expectations of around US$100 million, another factor
underpinning the upgrade. In addition to the retention of the
entirety of its earnings since the third quarter of 2002, the
bank raised fresh capital of US$191 million in the second quarter
of 2003 through a share issue (US$147 million) and one-time gains
from the sale of argentine assets (US$44 million), which given
the contraction in the balance sheet, should boost Tier 1 capital
ratio above 35%. Moreover, as the bank's expectations are for
modest growth given weak credit demand, this should rise further
as medium term loans, which are risk weighted at 100%, are
replaced with short term trade lines to banks, risk weighted at
20% in light of the bank's renewed focus on trade finance.

The bank's high level of liquidity is also a strength. The bank
funded the outflow of over 50% of its liabilities with runoff
from the loan portfolio, while maintaining an ample liquidity
cushion (end-March 2003: US$535 million).

Returns have been roughly in line with historical levels since
the third quarter of 2002, however, revenues remain depressed due
to a smaller balance sheet, which despite cost reductions, led to
deterioration in the bank's historically strong efficiency.
Moreover, further improvement in the bank's ratings will be
contingent upon its ability to raise core revenues closer to
historical levels, which will be challenging in the absence of
loan growth. In order to offset these pressures, the bank is
focusing on boosting fee revenues.

Another challenge for the bank will be balancing its mission as a
trade finance bank with market pressures brought on by an
increasingly dominant group of class E shareholders (publicly
traded), whose equity stake rose to 73.5% following the
capitalization. Although the bank received capital commitments in
excess of US$120 million from their class A shareholders,
comprised of Latin American and Caribbean Central Banks and other
government appointed entities, as well as three multilateral
institutions formerly not included in the shareholder base,
during the subsequent rights offering, they raised US$147
million, almost exclusively among their class E shareholders.
However, class A shareholders will retain effective control over
the bank given that any changes to the bank's bylaws require 75%
approval from this class.


CORNET: Court Approves Motion For "Concurso Preventivo"
-------------------------------------------------------
The Civil and Commercial Tribunal of Mercedes approved a motion
for "Concurso Preventivo" filed by local company, Cornet Juan
Carlos y Taverne Marcelo Jose S.H., recently. The approval
signals the start of the company's reorganization.

Argentine news source Infobae indicates that the Court has
assigned Ms. Maria Ledesma as receiver for the process. Creditors
must present their claims to the receiver for verification before
September 5 this year. The report, however, did not mention
whether the court has set the deadlines for the individual and
general reports.

CONTACT:  Maria L Ledesma
          Calle 28 Num. 524
          Mercedes


DEGOMAR: Court Assigns Receiver For Reorganization
--------------------------------------------------
Court No. 5 of Mar del Plata assignd Ms. Maria Alejandra Sobredo
as receiver for the reorganization of local company Degomar
S.R.L., relates Infobae. The Civil and Commercial Court of Mar
del Plata earlier approved the company's "Concurso Preventivo"
motion, granting it permission to start reorganization.

Creditors have until September 1 to have their claims
authenticated the by receiver. After the said date, the receiver
is required to prepare the individual reports, which must be
submitted by November 3 this year. The general report must be
filed on or before February 2 next year.

An informative assembly will be held on June 24, 2004.

CONTACT:  Maria Alejandra Sobredo
          Corrientes 3028
          Mar del Plata


DUETO: Court Authorizes Bankruptcy Process
------------------------------------------
Buenos Aires-based Dueto S.A. received permission from Court No.
1 to start its reorganization. Local news portal Infobae
indicates that the court has approved the company's petition for
"concurso preventivo". The reorganization proceeds with the
credit authentication process. Creditors must submit their claims
to the receiver, Ms. Adriana Esnaola, for verification before
September 3 this year.

Infobae added that the court has set October 17 as the deadline
for the individual reports, which are to be prepared after the
credit verification process. The general report id due on
November 28 this year. An informative assembly will be held on
June 4 next year.

CONTACT:  Dueto S.A.
          Avenida Rivadavia 1342
          Buenos Aires

          Adriana Esnaola
          Juncal 615
          Buenos Aires


EL SOL: Court Order Makes Bankruptcy Official
---------------------------------------------
El Sol S.A. will undergo the bankruptcy process as ordered by the
Civil and Commercial Tribunal of Cruz del Eje. Without revealing
whether the court has assigned a receiver for the case, Argentine
news source Infobae indicates that deadline for the individual
reports is September 15 this year.

The company's case is under the jurisdiction of Court No. 1 of
Cruz del Eje, which set Octover 28, 2003 as the deadline for the
general report.

CONTACT:  El Sol S.A.
          Ruta Nacional 38 Kilometro 120
          Cruz del Eje, Cordoba


EUROMAYOR: Evaluadora Assigns `C' Rating To Corporate Bonds
-----------------------------------------------------------
A total of US$7.5 million worth of corporate bonds issued by
Euromayor S.A. de Inversiones were rated `C' by Evaluadora
Latinoamericana S.A. Calificadora de Riesgo last Friday. The
rating given was based on the company's finances as of the end of
April this year.

The National Securities Commission of Argentina described the
affected bonds as "obligaciones negociables simples serie 2",
under "series and/or class". The bonds' maturity date was not
disclosed.

According to the ratings agency, the rating shows that the bonds
have substantial risk of nonpayment.


INTEGRALCO: Calls Creditors To Meeting
--------------------------------------
Buenos-Aires based Integralco S.A., which has recently filed a
motion for "Concurso Preventivo" is calling its creditors to a
formal meeting. The company, which stopped making debt payments
as of August 1 this year, is asking the court's permission to
start its reorganization. Integralco's case is under the
jurisdiction of the city's court No. 23.

CONTACT:  Integralco S.A.
          Avenida del Libertador 774
          Buenos Aires


INTERANDES: Moody's Rates US$50M of Bonds `BBB-'
------------------------------------------------
Corporate bonds issued by Interandes S.A. received `BBB-' ratings
from Moody's Latin America Calificadora de Riesgo S.A., relates
the National Securities Commission of Argentina. The bonds, which
mature on January 12, 2008, were described as "Obligaciones
Negociables".

The ratings agency said that the `BBB-' rating means that the
bonds have some risk of nonpayment. The `-' sign denotes negative
implication. The rating, which was given last Friday, was based
on the company's finances as of March 31 this year.


MAREXPORT: Seeks Court Authorized Reorganization
------------------------------------------------
The Civil and Commercial Tribunal of Mar del Plata has received a
motion for "Concurso Preventivo" from local company Marexport
S.R.L., relates Infobae. If the court approves the petition, the
company may then commence its reorganization process.

Court No. 14 of Mar del Plata handles the company's case.

CONTACT:  Marexport S.R.L.
          Rawson 5302
          Mar del Plata


MULTIVENTAS: Commences Reorganization
-------------------------------------
San Juan-based company Multiventas S.R.L. is starting its
reorganization process after receiving court permission.
Argentine news source Infobae relates that the Civil and
Commercial Tribunal of San Juan has approved the company's motion
for "Concurso Preventivo".

The report, however, did not indicate whether the court has
assigned a receiver to the case.


MUSIMUNDO.COM: Credit Verification For Reorganization Starts
------------------------------------------------------------
The credit verification process for the reorganization of
Musimundo.com S.A. has begun. Infobae relates that creditors have
until September 29 to have their claims authenticated by the
receiver, Mr. Silvio Kauferman.

The reorganization comes after Court No. 11 of Buenos Aires
approved the company's petition for "Concurso Preventivo".

CONTACT:  Musimundo.com S.A.
          Diagonal Norte 1150
          Buenos Aires

          Silvio Kauferman
          Avenida Callao 449
          Buenos Aires


NUEVA DINAMICA: Enters Bankruptcy
---------------------------------
Nueva Dinamica S.A., which is domiciled at General Roca, has
initiated its official bankruptcy process, with Mr. Sergio
Barotto as receiver. Argentine news source Infobae relates that
the Civil and Commercial Tribunal of General Roca declared the
company bankruptcy recently.

Court No. 5 of General Roca handles the company's case. The
report, however, did not indicate whether the court has set the
deadline for the credit verification process.


ORPEPSH: Creditors Called To Meeting
------------------------------------
Buenos Aires-based food company Omar Ricardo P‚rez y Eduardo
P‚rez Sociedad de Hecho calls its creditors to a formal meeting,
according to a local source, without revealing the venue and
schedule.

The source added that the company stopped making debt payments
since February this year. The company's case is presently handles
by the city's Court No. 11. However, the source did not mention
whether the court has assigned a receiver to the case.

CONTACT:  Omar Ricardo P‚rez y Eduardo P‚rez Sociedad de Hecho
          Sarmiento St. No. 2266
          Buenos Aires


SOINCO: Bankruptcy Proceeds With Credit Verification
----------------------------------------------------
The bankruptcy process, which Cordoba-based Soinco S.A.C.I. is
undergoing, proceeds with the verification of credit claims.
Creditors must present their claims to the receiver, Ms.
Alejandra Aureli for authentication before August 25 this year.

The Civil and Commercial Tribunal of Cordoba announced the
company's bankruptcy. The province's court no. 7 set the deadline
for the individual repots as October 7 this year. The general
report must be filed by November 28.

CONTACT:  Soinco S.A.
          Avenida Estrada 230
          Cordoba

          Alejandra Aureli
          Colon 172
          Cordoba


TELEFONICA DE ARGENTINA: Tender Results Made Official
-----------------------------------------------------
Telefonica de Argentina S.A. ("TASA" or the "Company") announced
Tuesday the acceptance of tenders in its offers to exchange two
series of existing TASA notes (the 11.875% TASA Notes due 2004
(the "TASA 2004 Notes") and the 9.125% TASA Notes due 2008 (the
"TASA 2008 Notes")) for two new series of TASA notes plus a cash
payment (the "TASA Exchange Offers"), and its offers to exchange
two series of existing notes issued by TASA's holding company,
Compania Internacional de Telecomunicaciones S.A. ("Cointel"),
(the 8.85% Cointel Series A Notes due 2004 (the "Cointel Series A
Notes") and the 10.375% Cointel Series B Notes due 2004 (the
"Cointel Series B Notes")) for two new series of TASA notes plus
a cash payment (the "Cointel Exchange Offers" and together with
the TASA Exchange Offers, the "Exchange Offers").

The Exchange Offers expired as of 11:59 p.m., New York City time,
on August 4, 2003. The Company has accepted all Notes validly
tendered before the expiration date. Settlement is expected to
occur on August 7, 2003 or as soon as practicable thereafter.

The Company has accepted the following amounts of existing notes
tendered for exchange, which represent all existing notes
tendered and not withdrawn before 11:59 p.m., New York City time,
on August 4, 2003:

-- U.S.$219 million, representing 73.0% of aggregate principal
amount of the U.S.$300 million TASA 2004 Notes,

-- U.S.$243 million, representing 65.9% of aggregate principal
amount of the U.S.$368.5 million TASA 2008 Notes,

-- U.S.$164 million, representing 73.0% of aggregate principal
amount of the U.S.$225 million Cointel Series A Notes, and

-- Ps.31 million, representing 17.7% of aggregate principal
amount of the Ps.175 million Cointel Series B Notes.

Copies of each prospectus and proxy solicitation, each prospectus
and proxy solicitation supplement dated July 24, 2003, and each
prospectus and proxy solicitation supplement dated July 29, 2003
may be obtained by calling D.F. King & Co., Inc., at +1-800-549-
6697 or +1-212-269-5550, or by mail at 48 Wall Street, 22nd
Floor, New York, NY 10005, Attention: Thomas A. Long.

You may read a copy of our registration statement and any other
document we file at the SEC's public reference room at 450 Fifth
Street, N.W. Washington, D.C. 20549. These documents are also
available at the public reference rooms at the SEC's regional
office in New York City. Please call the SEC at +1-800-SEC-0330
for further information on the public reference rooms. Our
filings are also available to the public over the Internet at the
SEC's website at http://www.sec.gov.

Morgan Stanley & Co., Incorporated (including its affiliates)
acted as dealer manager for the Exchange Offers. BBVA Banco
Frances S.A. (Reconquista 199, (C1003ABE) Buenos Aires,
Argentina; Attention: Santiago Barros Moss, Tel. 5411 4346-4311)
acted as solicitation agent in Argentina.

CONTACT:  Morgan Stanley
          Simon Morgan
          Phone: +1-212-761-2219

          Heather Hammond
          Phone: +1-212-761-1893


TERMOANDES: Moody's Rates US$250M of Bonds `BBB-'
-------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a
`BBB-' rating to corporate bonds issued by Argentine company
Termoandes S.A. on Friday. According to the ratings agency, the
rating denotes that the bonds possess considerable risk of
nonpayment. The `-' sign denotes negative implications.

The National Securities Commission of Argentina described the
affected bonds as "Obligaciones Negociables". The bonds' maturity
date was given as January 11, 2009. The bonds were classified as
"Program", and were worth a total of US$250 million.


*IMF To Sign 1-Yr. Agreement With Argentina, Official Forecasts
---------------------------------------------------------------
The International Monetary Fund (IMF) may sign a one-year accord
with Argentina instead of the three-year aid agreement the IMF
said it planned to negotiate with the country, Ambito Financiero
reports, citing Argentina's budget undersecretary Raul Rigo.

Rigo said the IMF is apprehensive about signing a longer-term
deal because, based on current economic performance, Argentina
may not be able to start repaying the US$95 billion in defaulted
bonds it owes private bondholders.

Argentina, which has about US$2.9 billion of debt payments coming
due on Sept. 9, said last week it needs a three-year accord with
the International Monetary Fund before Sept. 23, when the
government intends to outline plans to repay bondholders during
an IMF meeting in Dubai, the report says.



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

LORAL SPACE: Bringing In Greenhill & Co. as Financial Advisors
--------------------------------------------------------------
Loral Space & Communications Ltd., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of New York
for authority to retain Greenhill & Co., LLC, as their financial
advisor and investment banker in their chapter 11 cases.

Greenhill is well qualified to serve as the Debtors' financial
advisor. Greenhill is a leading corporate finance investment bank
and has provided financial advice to numerous major corporate
entities and investors worldwide. Greenhill is also very familiar
with the Debtors' businesses and financial affairs. Its
engagement will facilitate the provision of the services required
by the Debtors in their chapter 11 cases.

Greenhill's experience and expertise, its knowledge of the
capital markets, and its merger and acquisition capabilities,
will inure to the benefit of the Debtors in providing an
enterprise valuation of the Debtors and in pursuing any
Reorganization, Financing, or Sale. The Debtors expect Greenhill
to provide:

A. General Financial Advisory Services:

1. review and analyze the business, operations,
   properties, financial condition, and prospects of the
   Debtors;

2. evaluate the Debtors' debt capacity in light of
   projected cash flows;

3. assist in the determination of an appropriate capital
   structure for the Debtors;

4. assist the Debtors in negotiations with their lenders
   and other parties;

5. determine a range of values for the Debtors on a
   going concern basis and on a liquidation basis;

6. assist the Debtors in the formulation and
   implementation of any plan to de-lever their capital
   structure;

7. advise and attend meetings of the Debtors' Boards of
   Directors and their Committees and, if appropriate,
   their creditors;

8. participate in hearings before any court with respect
   to the matters upon which Greenhill has provided
   advice, including, as relevant, coordinating with the
   Debtors' counsel as to necessary testimony relating
   thereto; and

9. advise and assist the Debtors in structuring and
   effecting the financial aspects of any
   Reorganization, Financing, and/or Sale, subject to
   the terms and conditions of the Greenhill
   Agreement.

B. Reorganization Services:

1. provide financial advice and assistance to the
   Debtors in developing and seeking approval of a
   Reorganization plan under chapter 11 of the
   Bankruptcy Code;

2. provide financial advice and assistance to the
   Debtors in structuring any new securities, other
   consideration, or other inducements to be offered
   and/or issued under the Plan;

3. assist the Debtors and/or participate in negotiations
   with entities or groups that may be impaired by the
   Plan; and

4. assist the Debtors in preparing documentation within
   Greenhill's area of expertise as required in
   connection with the Plan.

C. Financing Services:

1. provide financial advice and assistance to the
   Debtors in structuring and effecting a Financing,
   identify potential Investors, and, at the Debtors'
   request, contact such Investors;

2. if Greenhill and the Debtors deem it advisable,
   assist the Debtors in developing and preparing a
   memorandum under the terms described in the Greenhill
   Agreement; and

3. assist the Debtors and/or participate in negotiations
   with potential Investors.

D. Sale Services:

1. provide financial advice and assistance to the
   Debtors in connection with a Sale, identify potential
   acquirors and, at the Debtors' request, contact such
   potential acquirors;

2. assist the Debtors in preparing a memorandum, to be
   used in soliciting potential acquirors under the
   terms described in the Greenhill Agreement; and

3. assist the Debtors and/or participate in negotiations
   with potential acquirors.

Bradley A. Robins disclose that Greenhill will be paid:

A. a $1,000,000 initial financial advisory fee;

B. $200,000 per month;

C. a $7,000,000 Transaction Fee if within 18 months, a
   Reorganization or Financing is consummated; and

D. Sale Fees equal to:

Sale Value Sale Fee Percentage

$100,000,000 or less 2.00%

$200,000,000 1.50%

$500,000,000 1.00%

$1,000,000,000 0.85%

$2,000,000,000 0.55%

$5,000,000,000 0.30%

$10,000,000,000 or more 0.20%

Loral Space & Communications Ltd., headquartered in New York, New
York, and together with its affiliates, is one of the world's
leading satellite communications companies with substantial
activities in satellite-based communications services and
satellite manufacturing. The Company filed for chapter 11
protection on July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710).
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from its
creditors, it listed $2,654,000,000 in total assets and
$3,061,000,000 in total debts. (Troubled Company Reporter, August
6, 2003, Vol. 7, Issue 154)



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

CEMIG: BNDES Loan Not Enough To Settle 2Q03 MAE Payments
--------------------------------------------------------
The loan granted by the Brazilian Development Bank (BNDES) to
Minas Gerais state power company Cemig paid only part of the
company's financial settlement to the wholesale energy auction
market (MAE) for this year's second quarter.

A report from Business News Americas on Tuesday indicates that
BNDES loaned BRL176.5 million to the company. The article also
said that the company has to obtain more short-term loans to
cover the rest of the amount it needs. The company reportedly
needs BRL240 million more in loans.

Earlier, BNDES lent the company BRL335 million (US$109) million
to cover the company's 1Q03 MAE payments.

CONTACT:  COMPANHIA ENERGETICA DE MINAS GERAIS
          Luiz Fernando Rolla, Investor Relations
          Phone:  + 011-5531-299-3930
          Fax: + 011-5531-299-3933
          E-mail: lrolla@cemig.com.br


COSIPA: Issues $70M Worth of Bonds Abroad
-----------------------------------------
Brazilian steelmaker Companhia Siderurgica Paulista (Cosipa),
which earlier revealed plans to raise up to US$550 million
through foreign capital markets, raised US$70 million in the
first part of the said planned issue.

According to Business News Americas, the US$70-million bond issue
involved two separate operations: the first transaction of US$30
million matures in 270 days and yields 6.875% a year; the second
operation amounting to US$40 million is an export pre-payment
issue with a three-year maturity paying Libor plus 5% a year.

Another export prepayment debt issue of US$180 million is also in
the works. The operation is likely to be for five years and pay
Libor plus 5.7% annually.

Cosipa, a subsidiary of Belo Horizonte-based flat steelmaker
Usiminas, is planning on three overseas deals worth US$250
million and a Eurobond worth up to US$300 million. These were
already approved by the Company's board last month.

All the debt issues are guaranteed by Usiminas and will be used
to reduce the steelmaker's debt.

As of the end of 1Q03, the Usiminas group's net debt stood at
BRL8.7 billion (currently US$2.9bn), of which BRL6 billion was in
foreign currency.

CONTACT:  COSIPA
          Avenida do Cafe, 277
          Torre B, 8  e 9  andar
          Vila Guarani
          04311-000 Sao Paulo, Brazil
          Phone: +55-11-5070-8800
          Fax: +55-11-5070-8863
          URL: http://www.cosipa.com.br


TELEMAR: Minority Shareholders Question Legality Of Oi Purchase
---------------------------------------------------------------
The sale of mobile telephone operator Oi by Tele Norte Leste
Participacoes (TNL) to Tele Norte Leste (Telemar), in which TNL
has a 79.6% stake, has spurred a legal controversy. According to
South American Business Information, a group comprised of 20
investment funds and minority shareholders of Telemar - created
with the merger of 16 fix telephone operators as Telerj, Telemig
and Telebahia - has decided to go to court to contest Oi's sale
value.

On May 28, Telemar announced it bought Oi from parent TNL for
BRL1 plus BRL4.76 billion in debt, plus a tax credit of BRL1.6
billion. But the minority shareholders claimed that the price
paid for Oi was inflated and resulted in significant loss of
value to Telemar.

CONTACT: TNE - INVESTOR RELATIONS
         Roberto Terziani
         Email: terziani@telemar.com.br
         Tel: 55 21 3131 1208

         Carlos Lacerda
         Email: carlosl@telemar.com.br
         Tel: 55 21 3131 1314

         Fax: 55 21 3131 1155


VARIG: Controller OK's TAM Merger
------------------------------------------------
Brazil's debt-saddled flagship airline Viacao Aerea Rio Grandense
SA (Varig) made progress on its merger with fellow Brazilian
airline TAM Linhas Aereas. According to a Dow Jones Business News
article, Varig's controller, the Ruben Berta foundation, approved
the legal groundwork for the tie-up, with 71% of votes at an
assembly held Saturday. It's now up to the government to decide
when the deal will be signed.

"According to estimates from those involved in the negotiations,
the merger process may take about three months to be concluded,
after the signing of the agreement," Varig said in a statement
Monday.

The positive step came despite a court injunction obtained by
Varig's Pilot's Association on Friday night, which invalidates
any merger efforts between the two companies. Varig said it would
appeal the pilot's legal move to block the merger.

Dow Jones relates that the pilots claim the merger plans threaten
to rob them of the pensions they earned while flying Varig
planes.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil



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

BANCO BHD: Fitch Affirms Ratings, Concerns Continue
---------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed the
long-term foreign currency rating of 'B', short-term foreign
currency rating of 'B' , individual rating of 'D' and support
rating of '4' of Banco BHD (BHD) in the Dominican Republic. In
addition, considering improved corporate governance policies and
the subscription of a US$10 million issuance of subordinated debt
by the International Finance Corporation (IFC), Fitch has
upgraded the long-term national rating to 'A+(dom)' from 'A(dom)'
while the short-term national rating was affirmed at 'F1(dom)'.

Similar to other Dominican banks, the negative rating outlook
reflects our concerns regarding the rapid deterioration in the
operating environment in the Dominican Republic, characterized by
a severe increase in inflation, a sharp devaluation in the last
few months and slow economic growth levels. The Rating Watch
Negative on its long-term foreign currency rating and individual
rating has been lifted.

BHD's ratings reflect its diversified retail deposit base,
significant market share, adequate profitability and competent
management but also comparatively higher impairment figures and
thin capital level in the midst of an unstable macroeconomic
environment. BHD enjoys close co-operation with Banco Sabadell of
Spain and Banco Popular of Puerto Rico, which together control
38% of Centro Financiero BHD, the bank's holding company. During
2003, BHD issued US$10 million of eight-year subordinated debt
subscribed by the International Finance Corporation (IFC). This
issuance was completely paid by the IFC during July 2003. This
new Tier II capital will enhance BHD's capital and help fund its
medium-term growth strategy.

At end-March 2003, BHD ranks second out of 12 private commercial
banks, with a 12% market share by total assets (excluding the
recently intervened Banco Intercontinental - BanInter). BHD's
traditional focus has been corporate and retail banking but it
has also strengthened its position in the consumer market. Grupo
BHD, which controls 62% of Centro Financiero BHD and thereby the
bank, is one of the largest economic groups in the Dominican
Republic.


BANCO DOMINICANO: Fitch Affirms, Operating Environment Tough
------------------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed the
long-term foreign currency rating at 'B-' (Negative Rating
Outlook), short-term foreign currency rating at 'B', individual
rating at 'D' and support rating at '5' of Banco Dominicano del
Progreso (BDP) in the Dominican Republic. The bank's 'A-(dom)'
long-term national rating and 'F2(dom)' short-term national
rating have also been affirmed.

Similar to other Dominican banks, the negative rating outlook
reflects our concerns regarding the rapid deterioration in the
operating environment in the Dominican Republic, characterized by
a severe increase in inflation, a sharp devaluation in the last
few months and slow economic growth levels. The Rating Watch
Negative on the long-term foreign currency rating and individual
rating has been lifted.

BDP's ratings reflect its stable performance in the past few
years despite rapid asset growth and a slower economic
environment in the Dominican Republic. The ratings also reflect
the constraints imposed by the bank's small asset size and weaker
profitability relative to its peers. While BDP maintains capital
ratios above its peer average (tier-one risk-weighted capital
adequacy ratio of 16.3% at end-2002), a large proportion of
equity (59%) is tied-up in fixed and foreclosed assets. While
this is common with most Dominican banks, in Fitch's view
operating flexibility is restricted as well as the bank's
capacity to absorb external shocks.

BDP's sustained loan growth has contributed to keep impairment
ratios at bay during the past 4 years. The change of accounting
standards and the definition of past-due loans introduced in July
2002, together with the slowing pace of economic activity,
resulted in an increase of the bank's past-due to total loans
ratio to 6% at end-March 2003. At that date, loan loss reserve
coverage was 76%, which is slightly below the average for its
peers.

Established in 1974, BDP has traditionally focused on the
corporate market although in recent years it has branched into
consumer and middle-market banking. Via organic growth and the
acquisition of Banco Metropolitano (a similarly focused, albeit
smaller bank) in 2000, BDP's market share reached 8.6% in terms
of assets of the commercial banking sector at end March 2003
(excluding the recently intervened Banco Intercontinental -
BanInter), almost doubling its 1997 level. BDP remains the
exclusive issuer and acquirer of American Express cards in the
Dominican Republic; this position has allowed BDP to develop a
private banking business.

CONTACT:  Franklin Santarelli
          Phone: +58 212 286 3356

          Carlos Fiorillo
          Phone: +58 212 286 3232

          Gustavo Lopez
          Phone: +1-212-908-0853

          Peter Shaw
          Phone: +1-212-908-0553


BANCREDITO: Fitch Ratings Unchanged, Rocky Road Continues
---------------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed the
long-term foreign currency rating of 'B', short-term foreign
currency rating of 'B', individual rating of 'E' and support
rating of '4' of Bancredito in the Dominican Republic. The Rating
Watch Negative is maintained.

In addition, Fitch affirms Bancredito's 'A(dom)' long-term
national rating and 'F1(dom)' short-term national rating. The
Rating Watch Negative is justified by the rapid deterioration of
the operating environment in the Dominican Republic,
characterized by lower economic activity, high interest rates,
significant volatility of the exchange rate and the monetary
pressures following the rescue of Banco Intercontinental
(BanInter, the country's third largest bank), as well as quick
shifts in market confidence.

Despite Bancredito's consistent performance, diversified credit
risk profile and the quality of its management, recent deposit
outflows required some support from the authorities, which
explains our 'E' individual rating. In addition, the ratings are
limited by weaker asset quality relative to its peers and tight
capital ratios.

During the early to mid-June 2003, the bank experienced
significant deposit outflows, which resulted in it receiving
around DOP1 billion in liquidity assistance from the Central
Bank, in addition to DOP2 billion interbank lending. Both
liquidity facilities from the Central Bank and other financial
institutions were completely repaid in July 2003.

During June 2002 a strong local industrial group (Leon Jimenes
group) completed the purchase of Bancredito and some other
subsidiaries of Grupo Financiero Bancredito (Bancredito's holding
company - GFN) to its former shareholders. The Leon Jimenes group
has stated its intention of merging its small banking operation,
Banco Profesional (around 1% market share at end-March 2003) with
Bancredito. While Profesional is a recently established multiple
services bank, the Leon Jimenes group is reputed to be one of the
strongest industrial groups in the country with interests in the
beverage and tobacco sectors, among others. The prospective
merger with Banco Profesional will demand the integration of two
business cultures and the enhancement of the market image of the
bank following the aforementioned deposit outflows.

Contact:  Franklin Santarelli
          Phone: +58 212 286 3356

          Carlos Fiorillo
          Phone: +58 212 286 3232

          Gustavo Lopez
          Phone: +1-212-908-0853

          Peter Shaw
          Phone: +1-212-908-0553


BANCO MERCANTIL: Fitch Lowers Ratings
-------------------------------------
Fitch Ratings, the international rating agency, has downgraded
the Dominican Republic's Banco Mercantil's (Mercantil) long-term
foreign currency rating to 'CCC' from 'B-', short-term foreign
currency rating to 'C' from 'B' and Individual rating to 'E' from
'D'. The bank's support rating was affirmed at '5'.

Also, Fitch assigned a 'BB(dom)' long-term national rating and a
'B(dom)' short-term national rating to Mercantil. This action is
explained by the bank receiving external support, which,
according to management, was in the form of liquidity facilities
from the Central Bank. Given Mercantil's relatively small size
within the system and the negative impact of possible continuing
deposit outflows, in conjunction with tight capital ratios and
weak asset quality, the bank's long-term foreign currency rating
remains on Rating Watch Negative. The Rating Watch Negative on
the individual rating has been lifted.

The deterioration of the operating environment characterized by
lower economic activity and a higher devaluation since end 2002
has been exacerbated during 2003. Since April 2003 when the
highest financial regulatory entity in the Dominican Republic
(The Junta Monetaria) announced the intervention of the second
largest private bank (Banco Intercontinental - BanInter), a
drastic devaluation and massive money injections as a consequence
of the bank bailout has deteriorated the operating environment.

More over, sudden changes in public expectations have
deteriorated even more the country's operating environment,
resulting in deposit outflows at Mercantil and previously, at
another midsized bank. While the Central Bank has provided the
required support to all of these banks, our rating actions
reflect concerns that the local market has reached a point of
nervousness where there is the possibility that issues regarding
particular banks could quickly escalate to a loss of confidence
in the banking system and in the authorities' capacity to provide
generalized support, should it become necessary.

According to the bank's managers, up to August 1, 2003, Mercantil
has required and received liquidity assistance from the Central
Bank to cope with deposit outflows. Mercantil is in negotiations
with local authorities to find a definitive solution to improve
its financial profile, that could include a future capital
injection or a possible merger. Fitch Ratings will closely
monitor the bank's liquidity position and the results of the
negotiations between Mercantil and the authorities.

Established in 1985 but operating as a multiple-service bank
since 1993, Mercantil ranks sixth out of 11 Dominican Commercial
Banks, with a 5.6% asset market share at end- March 2003
(excluding the recently intervened BanInter). The bank has an
established niche in the consumer market, particularly auto-
financing, and it is one of the more technologically innovative
banks in the market

CONTACT:  Fitch Ratings
          Franklin Santarelli
          Phone: +58 212 286 3356

          Carlos Fiorillo
          Caracas
          Phone: +58 212 286 3232

          Gustavo Lopez
          Phone: +1-212-908-0853

          Peter Shaw
          New York
          Phone: +1-212-908-0553

          Matt Burkhard, Media Relations
          Phone: +1-212-908-0540



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

AEROMEXICO: CEO/Chairman Steps Down Without Explanation
-------------------------------------------------------
Aeromexico, controlled by government-holding company Cintra, saw
the resignation of its chief executive and chairman, Alfonso
Pasquel, reports Reed Business Information. Mr. Pasquel revealed
no reason for his resignation but according to sources, Cintra's
current financial woes forced him out. However, he will remain as
a consultant to Cintra.

Mr. Pasquel's two posts will now be assigned to separate
successors. Arturo Barahona becomes director general (the new
name for the chief executive role), while Luis Gutierrez
Ruvalcaba takes over as chairman of Aeromexico's board. Gutierrez
is also chairman of Cintra and will keep that post.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx


GRUPO TMM: Board Chairman Schedules Meeting With Shareholders
-------------------------------------------------------------
Ignacio Rodriguez Rocha, Chairman of Transportacion Maritima
Mexicana's (TMM) board of directors, summoned shareholders to a
meeting to discuss the sale of Ferrocarril del Noroeste to Kansas
City Southern (KCS).

Citing a notice sent by the chairman last Friday, Internet
Securities relates that the meeting will be held in the morning
of August 18 in Tlalpan, south of Mexico City.

Last Thursday, KCS passed the last legal hurdle in the United
States to merge with TMM to form Nafta Rail, a railroad company
covering the area between Nebraska and L zaro C rdenas,
Michoac n.

The authorization came when the U.S. Department of Justice failed
to reply to the railroad companies' petition to merge within the
allotted time period.

While some saw KCS' limited cash flow as another hurdle in the
process, the company explained recently that no money would
actually change hands in the deal.

Instead, KCS will give TMM 22% of the new company and will take
on TMM's debt held with the Mexican government, which is
calculated between US$100 and US$180 million.

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

CONTACT:  Grupo TMM
          Jacinto Marina, 011-525-55-629-8790
          jacinto.marina@tmm.com.mx
                  or
          Brad Skinner (IR), 011-525-55-629-8725
          brad.skinner@tmm.com.mx
                  or
          DRESNER CORPORATE SERVICES
          Kristine Walczak, (IR, analysts and media)
          312-726-3600
          kwalczak@dresnerco.com
              or
          PROA STRUCTURA
          Marco Provencio, 011-525-55-629-8758
          mp@proa.structura.com.mx


ISPAT INTERNATIONAL: Reports Improving 2Q03 Financials
------------------------------------------------------
Ispat International N.V., (NYSE: IST US; AEX: IST NA), reported
Tuesday a net income of $14 million or 11 cents per share for the
second quarter of 2003 as compared to a net income of $11 million
or 9 cents per share for the second quarter of 2002.

Consolidated sales(1) and operating income for the second quarter
were $1.4 billion and $58 million, respectively, as compared to
$1.2 billion and $30 million, respectively, for the second
quarter of 2002. The Company's steel shipments reduced by 2% to
just under 4 million tons, as compared to 4.1 million tons
shipped in the same period last year.

Debt at the end of second quarter was $2.3 billion. Capital
expenditure for second quarter of 2003 was $37 million. At June
30, 2003 the Company's consolidated cash, cash equivalents and
short-term liquid investments totaled $65 million. The Company
also had approximately $305 million available to it under various
undrawn lines of credit and bank credit arrangements(2).

Ispat International N.V. is one of the world's largest steel
producers, with major steel-making operations in the United
States, Canada, Mexico, Trinidad, Germany and France. The Company
produces a broad range of flat and long products with the
majority of its sales in North American Free Trade Agreement
(NAFTA) participating countries and the European Union (EU)
countries. Ispat International is a member of The LNM Group.

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



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

CANTV: Venezuela's Economic Struggle Yields Poor 2Q03 Results
-------------------------------------------------------------
CANTV, Venezuela's No. 1 telephone company, registered a loss of
US$14 million for the second quarter of 2003, compared with a
profit of US$10 million in the same period in the previous year.
According to Reuters, the negative results come as the country
struggles to free itself of a fierce recession after political
turmoil and a two-month opposition strike sent its economy into a
29% downturn in the first quarter of this year.

CANTV said it is likely to default on outstanding debt agreements
without extensions on due dates and further approval from state
currency board CADIVI to access foreign currency. The firm said
it has so far received approval for US$11.1 million from the
currency board.

To secure access to foreign currency, CANTV said that it had
purchased US$74.1 million in Venezuela's recently issued dollar-
denominated bonds.

CANTV reported Tuesday six-month total operating revenues of
US$877 million down from US$967 million a year earlier. It posted
a six-month loss of US$7 million against a year-ago profit of
US$37 million.

In April, CANTV warned that it may end 2003 with a net loss of
between US$73 million - US$195 million, against a year ago profit
as it foresaw declines in its wireline market and a flat wireless
market, Reuters recalls.


PDVSA: Subsidiary Completes Payments on US$1 Billion of Bonds
-------------------------------------------------------------
PDV America, a subsidiary of Venezuela's state oil company
Petroleos de Venezuela S.A. (PdVSA), paid its last installment on
some US$1 billion of bonds it issued in 1993. Business News
Americas reports that the subsidiary paid US$520 million last
Friday. The latest payment consists of US$500 million for the
capital and US$20 million for interest. The company has paid off
a quarter of the total debt in 1998 and another US$250 million in
2000.

PdVSA president Ali Rodriguez Araque comments, "This payment not
only substantially reduces PDVSA's total debt, but sends a
positive signal to the international market regarding the
company's financial solvency at a global level.



               ***********


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 America 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.


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