---

        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

            Monday, August 18, 2003, Vol. 4, Issue 162

                           Headlines


A R G E N T I N A

ASMALAR: Placed Under Receiver's Care
ATLANTE SACIFI: Last Day For Credit Check Today
AVICOLA: Seeks Court OK on "Concurso Preventivo" Motion
BANCO HIPOTECARIO: Launches Offer To Swap Debt
CARNER PARMA: To Undergo Reorganization

CENTRO GRAFICA: Ruled Bankrupt by Court
COHEN: Seeks Court's OK for Reorganization
COLORFOT: Enters Bankruptcy On Court Order
EDICIONES AZTECA: Court Declares Bankruptcy
EPI: Last Day For Credit Verification Today

ETEL: Files "Concurso Preventivo" Motion
EZEMAR: Credit Check For Bankruptcy Process Closes Today
EXPOSITORA: Court Approves Reorganization Proposal
FARMACEUTICA PLASTANI: Court Orders "Quiebra Decretada"
FIRE SYSTEM: Court Assigns Receiver To Bankruptcy

HARINARG: Court Declares Bankruptcy On Creditor's Request
IMPOMOTOR: Files Motion Seeking Reorganization
JOVIMA: Court Approves Bankruptcy Petition
LEANSU: Court Assigns Receiver for Bankruptcy
MULTICANAL: Releases Unaudited Interim Financial Results

ONETO HERMANOS: Asks Court's Approval For Reorganization
SAMBEX: Seeks Court Permission for Reorganization
SATNET: Declared Bankrupt by Local Court
SELVA LUIS: Credit Authentication Process Ends Today
SISTEMAS ASISTENCIALES: Creditor Petition For Bankruptcy Approved

TATANCA: Creditor Request Results in Bankruptcy
TRI NOI: Credit Verification Period Ends Today


B E R M U D A

ANNUITY & LIFE: Issues June 30, 2003 Earnings Report
SEA CONTAINERS: Announces Results for Quarter and Six Months
SEVEN SEAS: Emerges From Chapter 11 Protection
TYCO INTERNATIONAL: Parker & Waichman, LLP Soon to File Suit


B R A Z I L

CESP: S&P Lowers Ratings Upon Exchange Offer Conclusion
DVI: Asking for Bankruptcy Protection
DVI INC.: Fitch Ratings Comments on Bankruptcy Announcement
EMBRATEL: Click 21 Launches National Campaign
FIBERCORE INC.: Reports on Filing of 2Q 10-Q and Other Matters

LIGHT SERVICOS: Net Loss Widens Amid Shrinking Market
MRS LOGISTICA: Announces Second Quarter 2003 Results
MSF FUNDING: Notes Series 2000-1 Ratings Placed on Watch Negative
SABESP: Announces Second Quarter 2003 Results
TAM: President Leaves Post

TRICO MARINE: Announces New CFO and Sale of North Sea Vessel
USIMINAS: EBITDA Grows 109% in 1H03, Net Profit Totals R$824 Mln
VESPER: Minister Approves Sale, Voices Concern Over Layoffs


C H I L E

EDELNOR: Strikes Supply Deal With Mantos Blancos
ENAMI: May Get Back Pampa Camarones Before Year-end


E C U A D O R

PETROECUADOR: To Reopen Oil Bidding Round This Week


J A M A I C A

C&WJ: SC Orders Reinstatement of Oceanic's Connections
JUTC: Transport Minister Announces Fares Hike


M E X I C O

EMPRESAS ICA: May Participate in Second Stage Of Road Project
GRUPO IUSACELL: Announces Extension of Temporary Amendment Waiver


T R I N I D A D   &   T O B A G O

CARONI: High Court Justice Issues Order To Halt VSEP Payments


U R U G U A Y

URUGUAYAN BANKS: Moody's Releases Annual Report


V E N E Z U E L A

*Venezuela Announces Bond Swap

     -  -  -  -  -  -  -  -

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

ASMALAR: Placed Under Receiver's Care
-------------------------------------
Asmalar S.R.L., which recently entered bankruptcy, was placed in
the hands of receiver Lajbisz Barg. Argentine news source Infobae
relates that the credit verification process ends on September 23
this year.

The receiver, an accountant from Buenos Aires, is given the task
of authentication credit claims to establish the existence,
nature and amount of the Company's debt. He will then file
individual and general reports on these matters.

CONTACT:  Lajbisz Barg
          Araguay 2630
          Buenos Aires


ATLANTE SACIFI: Last Day For Credit Check Today
-----------------------------------------------
Creditors of Argentine company Atlante Sacifi were informed that
today, August 18, is the last day for the credit verification
process concerning the Company's bankruptcy. The receiver, Susana
Macchelli will now prepare the individual reports, as required by
the court.

The Troubled Company Reporter - Latin America recently reported
that the Company as declared bankrupt on the request of its
creditor, Juan Acosta. Buenos Aires' Court No. 23, assisted by
Clerk No. 46, has jurisdiction over the case.

CONTACT:  Atlante Sacifi
          10th Floor
          Piedras St. 77
          Buenos Aires

          Susana Macchelli
          5th Floor
          Montevideo St. No. 561
          Buenos Aires


AVICOLA: Seeks Court OK on "Concurso Preventivo" Motion
-------------------------------------------------------
Argentine company Avicola D. P. S.R.L. filed a "Concurso
Preventivo" motion to Court No. 24 of Buenos Aires recently,
reveals local newspaper La Nacion. The paper added that the
Company stopped making debt payments on September 25 last year.

If the motion is approved, the Company may undergo reorganization
to salvage its business. A receiver, who will verify credit
claims will be assigned to the Company.

CONTACT:  Avicola D. P. S.R.L.
          1st Floor A
          Dr. Juan Aranguren 2591
          Buenos Aires


BANCO HIPOTECARIO: Launches Offer To Swap Debt
----------------------------------------------
Argentina's Banco Hipotecario launched Thursday an offer to swap
US$1.2 billion of debt, which it defaulted on last year amid
Argentina's worst-ever financial crisis, Reuters reports, citing
market sources.

Under the offer, the firm proposes to exchange bonds that mature
between 2002 and 2008 for ones that come due in 2013. If
creditors accept this offer, then they may opt for a cash payment
at 45% of the bonds' face value. The bank will put up to US$60
million toward this operation, market sources said.

Creditors can also swap debt for bonds backed by government-
issued paper, with shorter maturities and a 30% cut in face
value. Banco Hipotecario is willing to issue US$300 million in
guaranteed bonds, sources said.

The sources noted that Banco Hipotecario, whose main shareholder
is the federal government, followed by Argentine real estate
group IRSA and local pension funds, will require at least 90%
acceptance by creditors to proceed with the debt swap.

About US$300 million of its debt is held by banks, while the
other US$900 million is in bonds.


CARNER PARMA: To Undergo Reorganization
---------------------------------------
Carner Parma S.A., which is domiciled in Buenos Aires will under
go reorganization. Argentine news portal Infobae relates that the
Civil and Commercial Tribunal of La Plata approved the Company's
motion for "Concurso Preventivo".

The province's Court No. 18, which handles the case, assigned Mr.
Ricardo Polo as receiver for the process. Verifications of credit
claims will end on September 23 this year.

CONTACT:  Carner Parma S.A.
          Calle 508 Entre 13 y 14 Gonnet
          La Plata

          Ricardo Polo
          Calle 48 No. 877
          La Plata


CENTRO GRAFICA: Ruled Bankrupt by Court
-----------------------------------------
Buenos Aires-based Centro Grafica S.R.L. was decrlared bankrupt
by the city's Court No. 8, relates local news source Infobae. The
source adds that the court is assisted by Clerk No. 15 on the
case.

The bankruptcy proceeds with the credit verification process,
which ends on August 19 this year. The receiver, Mr. Reynaldo A.
Casagrande, will verify the claims and file the required reports.

The Court requires the receiver to submit the individual reports
on September 30 this year, while the general report is due for
submission on November 12.

CONTACT:  Centro Grafica S.R.L.
          Reconquista 629
          Buenos Aires

          Reynaldo A Casagrande
          Lavalle 1528
          Buenos Aires


COHEN: Seeks Court's OK for Reorganization
------------------------------------------
Cohen Silvia Sofia - Arias Elizabeth Diana S.H., based in Buenos
Aires, is seeking court permission to start reorganization.
According to local news source Infobae, the Company has submitted
its motion for "Concurso Preventivo" to the city's Court No. 20.

Infobae adds that Clerk No. 40 assists the court on the case. The
motion was filed "propia instancia", which means that the filing
was done voluntarily.

CONTACT:  Cohen Silvia Sofia - Arias Elizabeth Diana S.H.
          Luiz Viale 752
          Buenos Aires


COLORFOT: Enters Bankruptcy On Court Order
------------------------------------------
Court No. 1 of Buenos Aires recently declared local company
Colorfot S.A. bankrupt, relates Infobae. The city's Clerk No. 2
assists the court on this case.

The receiver designated for the case is Monica Cecilia Rapp y
Asociados. Creditors must submit their claims before October 13
this year. The report did not indicate whether the court has set
the deadline for the individual and general reports.

CONTACT:  Monica Cecilia Rapp y Asociados
          Ave. Cordoba 873
          Buenos Aires


EDICIONES AZTECA: Court Declares Bankruptcy
-------------------------------------------
Ediciones Azteca, which is based in Buenos Aires, will undergo
the bankruptcy process. Infobae reports that the city's Court No.
10 ruled that the Company is "Quiebra Decretada".

The Company's creditors must submit their claims for verification
before October 16 this year. The receiver, Mr. Jacobo Becker,
will verify the claims and prepare the necessary reports.

The individual reports must be submitted by November 27 this
year. The court requires the receiver to file the general report
on February 13, 2004.

CONTACT:  Jacobo Becker
          Salguero 2244
          Buenos Aires


EPI: Last Day For Credit Verification Today
-------------------------------------------
Today, August 18, 2003, is the last day for the authentication of
credit claims concerning the bankruptcy of Establicimientos
Productores Integrados S.A. (E.P.I.). The designated receiver for
the Company is MR. Carlos Alberto Vicente.

Buenos Aires' court No. 4 declared the Company bankrupt,
according to an earlier report from Infobae. The court is
assisted by the city's Clerk No. 8.

CONTACT:  Mr. Carlos Alberto Vicente
          Avenida Corrientes 2166
          Buenos Aires


ETEL: Files "Concurso Preventivo" Motion
----------------------------------------
Argentine news portal La Nacion reports that local company
Empresa de Transportes El Litoral S.A. (ETEL) filed a motion for
"Concurso Preventivo" to Buenos Aires' Court No. 6.  The city's
Clerk No. 11 aids the court on the case.

The report, however did not mention when the public transport
company ceased making debt payments. If the motion is approved,
the court will assign a receiver to the Company.

CONTACT:  Empresa de Transportes El Litoral S.A.
          1st Floor
          San Martin 969
          Buenos Aires


EZEMAR: Credit Check For Bankruptcy Process Closes Today
--------------------------------------------------------
The credit authentication period for the bankruptcy of Ezemar
S.A. will expire today, August 18. According to an earlier report
by the Troubled Company Reporter - Latin America, the Company was
declared bankrupt by the Civil and Commercial Tribunal of San
Isidro.

The designated receiver for the case is Mr. Jose Guillermo Lego.
He is instructed by the court to file the individual reports on
September 30 this year. The general report must be fled by
November 5 this year.

CONTACT:  Ezemar S.A.
          Nazarre 1199
          Pilar, San Isidro

          Jose Guillermo Lego
          L Martinez 276
          Martinez, San Isidro


EXPOSITORA: Court Approves Reorganization Proposal
--------------------------------------------------
Court No. 25 of Buenos Aires approved a motion for "Concurso
Preventivo" filed by local company Expositora S.R.L., according
to local news source Infobae. The Company will undergo
reorganization.

Creditors are advised to submit their claims for verification to
the receiver, Mr. Jose Luis Carriquiry. The deadline for
authentication of claims is September 26 this year.

The court requires the receiver to submit the individual reports
on November 7, and the general report on December 22. The
informative assembly will be held on June 29 next year.

CONTACT:  Jose Luis Carriquiry
          Loyola 660
          Buenos Aires


FARMACEUTICA PLASTANI: Court Orders "Quiebra Decretada"
-------------------------------------------------------
Farmaceutica Plastani S.R.L. enters bankruptcy after Buenos
Aires' Court No. 7 decided it is "Quiebra Decretada". Infobae
relates that the city's Clerk No. 13 assists the court on the
case.

The court designated Mr. Miguel Angel Loustau as receiver for the
process. The credit verification process will end on October 6
this year. However, the report did not mention the deadline for
the individual and general reports.

CONTACT:  Miguel Angel Loustau
          Viamonte 993
          Buenos Aires


FIRE SYSTEM: Court Assigns Receiver To Bankruptcy
-------------------------------------------------
Mr. Omar Lares was assigned receiver to Fire System Argentina
S.R.L., reports Infobae. Court No. 4 of Buenos Aires recently put
the Company under bankruptcy.

Creditors must submit their claims to the receiver before October
6, 2003. After that period, the receiver will prepare the
individual and general reports to be submitted to the court.

CONTACT:  Fire System Argentina S.R.L.
          Florida 253
          Buenos Aires

          Omar Lares
          Viamonte 749
          Buenos Aires


HARINARG: Court Declares Bankruptcy On Creditor's Request
---------------------------------------------------------
Dr. Raillade, the insolvency judge at Buenos Aires' Court No. 20,
declared local flour maker Harinarg S.A. bankrupt. La Nacion
reports that the ruling comes after Jose Parra filed a petition
seeking the Company's bankruptcy for failure to pay its $4229 in
debt.

The credit verification process will end on October 29 this year.
Creditors must present their claims to the receiver, Mr. Jorge
Wilcke for verification before the said date.

CONTACT:  Harinarg S.A.
          Lavalle 3161
          Buenos Aires

          Jorge Wilcke
          8th Floor, Tower I
          Teodoro Roosevelt 1877
          Buenos Aires


IMPOMOTOR: Files Motion Seeking Reorganization
----------------------------------------------
Court No. 25 of Buenos Aires received a motion for "Concurso
Preventivo" from local company Impomotor S.A., according to a
report from local newspaper La Nacion. The Company is seeking the
court's permission for reorganization.

Dr. Pennace, Clerk No. 49 of Buenos Aires, assists Dr. Rey, the
insolvency judge handling the case. The Company sells automotives
in Buenos Aires.

CONTACT:  Impomotor S.A.
          8th Floor
          Ave. Belgrano 687


JOVIMA: Court Approves Bankruptcy Petition
------------------------------------------
A petition for the bankruptcy of the Jovima S.A. was approved by
the Court No. 23 of Buenos Aires. La Nacion reveals that Dr.
Villanueva handles the Court. The city's Clerk No. 45, Dr.
Robledo assists the court on the case.

The Company's creditors must submit their claims for verification
to the receiver, Graciela Sanchez. The verification process ends
on August 19 this year. After that, the receiver will prepare the
individual reports.

CONTACT:  Jovima S.A.
          3rd Floor
          Uruguay 17
          Buenos Aires

          Graciela Sanchez
          2nd Floor
          Uruguay 618
          Buenos Aires


LEANSU: Court Assigns Receiver for Bankruptcy
---------------------------------------------
Xilef Irureta, an accountant from Buenos Aires, is assigned
receiver to Leansu SRL. A report from local newspaper La Nacion
indicates that the Company was declared bankrupt by the city's
Court NO. 18, which is under Dr. Paez Castaneda. A request filed
by the Celia Villalobos prompted the court's ruling.

Creditors must present their claims for verification before
September 15 this year. After that, the receiver will prepare the
individual reports. However, La Nacion did not mention whether
the court has set the deadline for the required reports.

CONTACT:  Leansu SRL
          Ave. Mendrano 133
          Buenos Aires

          Xilef Irureta
          5th Floor
          Parana 145
          Buenos Aires


MULTICANAL: Releases Unaudited Interim Financial Results
--------------------------------------------------------
Multicanal's Management recently discussed and analyzed its
financial condition and results of operations:

Substantially all of our operations, property and customers are
located in Argentina. Accordingly, our revenues are primarily in
pesos and our financial condition and results of operations
depend primarily on macroeconomic and political conditions
prevailing in Argentina. Substantially all of our debt, however,
is denominated in U.S. dollars. The Argentine economy experienced
a persistent recession from 1998 through 2002. In December 2001,
the recession deepened into an unprecedented political and
economic crisis that disrupted Argentina's financial system and
effectively paralyzed its economy. Since December 1, 2001,
Argentina has had six presidents, the la st, N‚stor Kirchner,
elected after presidential candidate Carlos Menem announced on
May 14 his withdrawal from the run-off election scheduled to be
held on May 18, 2003, leaving Mr. Kirchner as the sole candidate.
Mr. Kirchner took office on May 25, 2003. Although Mr. Duhalde's
faction within the Peronist party supported Mr. Kirchner in the
election in 2002, to date Mr. Kirchner has not announced an
overall package of economic policies for his administration,
although he has retained Mr. Lavagna as Minister of Economy. Mr.
Kirchner's administration faces numerous important challenges in
terms of creating conditions that will permit long-term economic
growth for Argentina, which include the negotiation of a medium
to long-term economic program and agreement with the IMF to
substitute a short-term agreement reached in January 2003. There
is uncertainty as to the nature and scope of the measures to be
adopted by Mr. Kirchner's government to address many of the
country's unresolved economic and financial problems, including
the renegotiation of its external debt.

Since the fourth quarter of 2001, the Argentine government has
undertaken numerous and far-reaching initiatives, the full
consequences of which are still uncertain. These initiatives
include:

- deferring payments on certain of Argentina's sovereign debt;

- ending the peso-U.S. dollar parity introduced in 1991 under the
Convertibility Law and subsequently allowing the peso to float,
resulting in the devaluation and volatility of the peso, which as
of August 11, 2003 was trading at approximately Ps. 2.915 per
U.S.$1.00;

- introducing foreign exchange controls restricting, among other
transactions, outflows of capital, including for the payment of
foreign debt obligations such as our Existing Debt, and
subsequently repealing the former prior approval requirement but
imposing certain disclosure requirements;

- converting certain U.S. dollar-denominated debts into peso-
denominated debts at a one-to- one exchange rate;

- converting U.S. dollar-denominated bank deposits into peso-
denominated bank deposits at an exchange rate of Ps.1.4 per U.S.
dollar;

- restructuring bank deposits and restricting bank withdrawals
(the "corralito ");

- amending the Bankruptcy Law to protect debtors and subsequently
leaving those amendments without effect;

- amending the charter of Banco Central de la Rep£blica Argentina
(the "Central Bank") to allow it to print currency in excess of
the amount of the foreign reserves it holds, make short-term
advances to the Argentine government and provide financial
assistance to financial institutions with liquidity constraints
or solvency problems; and

???allocating government bonds to financial institutions in
compensation for losses incurred as a result of their obligation
to convert U.S. dollar-denominated assets and liabilities into
pesos on an "asymmetrical" basis.

The rapid and radical nature of the recent changes in the
Argentine social, political, economic and legal environment, and
the absence of a clear political consensus in favor of the
policies implemented by the government since the crisis in 2001
or any particular set of economic policies, created an atmosphere
of great uncertainty and lack of confidence of the population in
the banking system. As a result, commercial and financial
activities were virtually paralyzed during 2002, further
aggravating the economic recession that precipitated the current
crisis. During 2002, GDP contracted by an estimated 10.9%. More
recently, the economy has shown signs of stability and certain
segments have begun to recover. Preliminary estimates indicate a
growth of approximately 6.0% in GDP in the first six months of
2003 compared to the first six months of 2002. Nevertheless, due
to the depth of the social and political crisis that affected the
country in 2002, Argentina continues to face risks including (i)
civil unrest, nation-wide protests, and widespread social unrest,
(ii) expropriation, nationalization and forced renegotiation or
modification of existing contracts, and (iii) changes in taxation
policies, including royalty and tax increases and retroactive tax
claims.

The Argentine government faces severe constraints on its ability
to service its debt obligations due to the devaluation of the
Argentine currency. Peso-denominated tax revenues constitute the
primary source of its earnings, but most of its financial
liabilities are U.S. dollar- denominated. To date, there is
uncertainty as to the terms of the restructuring of Argentina's
external debt, or the timing of any such restructuring. The
adoption of austere fiscal measures, which may be required to
repay the Argentine government's debt, even after a
restructuring, and to keep its budget balanced, may lead to
renewed social unrest and political instability.

Prior to the adoption of the Convertibility Law, the Argentine
government proved unable to maintain a strict monetary policy and
control inflation. In the past, inflation materially undermined
the Argentine economy and the government's ability to create
condit ions that would permit growth. Continued high inflation
could deepen Argentina's current economic recession. Since the
devaluation of the peso, the peso has been subject to inflation,
with the WPI increase for the twelve-month period ended December
31, 2002 estimated at 118%, compared to a slight deflation in
2001. However, during the first six months of 2003 the WPI
experienced a decrease of 2.5%. Furthermore, during the first six
months of 2003, the peso/U.S. dollar exchange rate remained
generally stable, with an exchange rate of Ps. 2.80 per U.S.
dollar as of June 30, 2003. We can give no assurance that Mr.
Kirchner will support the continuation of the policies of the
Duhalde administration, or that a significant increase in the
value of the U.S. dollar (resulting, for instance, from a
decrease in the level of exports or the decision to begin
servicing any significant portion of the country's external debt
currently in default) will not result in an increase in the rate
of inflation or a further depreciation of the peso.

In a decision dated March 5, 2003, the Supreme Court of Argentina
struck down the mandatory conversion of U.S. dollar deposits held
by the province of San Luis with Banco de la Naci¢n Argentina
pursuant to a decree issued by the Duhalde administration in
January 2002 on constitutional grounds. The Supreme Court's
decision creates uncertainty as to the implications for the
banking system as a whole , including the need for the Argentine
government to provide additional financial assistance to the
banks in the form of U.S. dollar denominated bonds. This, in
turn, adds to the country's outstanding debt and is viewed with
concern by holders of Argentina's outstanding bonds.

On May 26, 2003, Decree No. 1262/03 was published, announcing the
creation of a new governmental entity (the Unidad de
Reestructuraci¢n del Sistema Financiero, or "Financial System
Restructuring Agency") whose stated function will be to devise
and implement a strategy for restructuring the Argentine
financial system. This new entity will be composed of
representatives of both the Ministry of Economy and the Central
Bank. A plan that contemplates the restructuring of the financial
system, and compensation for losses suffered by the private banks
as a result of the 2001 crisis, in each case on terms acceptable
to the IMF, is considered a condition to a medium to long-term
agreement with the IMF.

On June 18, 2003 the Congress passed a bill, which law became
effective as of July 15, 2003 (Law No. 25.750), regarding the
protection of, among others, assets related with Argentine
culture, requiring that corporations in media -related
businesses, including cable television, be owned by Argentine
persons (either natural persons or legal or corporate entities)
and establishing a maximum potential foreign ownership of such
companies at 30% of the outstanding capital stock representing
30% of the voting rights.

According to the law, "cramdown" provisions set forth in Section
48 of the Bankruptcy Law, which could result in the transfer of
up to 100% of the equity to the creditors if a voluntary
insolvency proceeding (concurso preventivo) did not result in the
approval of a reorganization plan proposed by the debtor, are not
applicable to media -related companies, including cable
television operators, provided they are owned by Argentine
persons as required by Section 3 of Law. No. 25.750. Furthermore,
if a media -related company in a voluntary insolvency proceeding
(concurso preventivo) fails to reach agreement with its
creditors, participations of non-Argentine shareholders in the
capital stock of such media-related company in excess of a 30%
ownership cap are only allowed if the media -related company
requests the authorization of the Executive Branch to exceed such
limit and the Executive Branch previously authorizes such an
acquisition.

In addition, the Argentine government recently introduced
measures that are intended to reduce the flow of speculative
capital into Argentina by imposing a registration requirement
with the Central Bank of Argentina and a minimum holding period
of 180 days. Such measures are effective as of June 30, 2003.
Also, according to Communication "A" 3973, which was issued by
the Central Bank of Argentina on June 30, 2003, local companies
can: (a) make interest payments abroad on foreign indebtedness at
maturity (or within 15 days of maturity), without prior approval
from the Central Bank, and prepay interest in the context of a
debt restructuring process, and (b) make principal payments
abroad of foreign indebtedness at maturity (or 15 days of
maturity) without prior approval from the Central Bank.
Communication "A" 3973 also allows prepayment of principal
subject to the satisfaction of the following conditions: (i) if
prepayment of principal is not made in the context of a debt
restructuring process, then the amount prepaid cannot exceed the
present value of such amount; or (ii) if the prepayment is made
in the context of a restructuring process, the new terms and
conditions of the debt after the restructuring, including the
amount prepaid, cannot result in an increase of the present value
of the entire existing indebtedness. In both cases, the debt
cannot be repaid within 180 days from the date of disbursement.
The present value is to be calculated based on the implied
interest rate of U.S. dollar forward transactions in regulated
markets. Notwithstanding the above, prior to carrying out any
transfers of funds abroad in order to pay principal of or
interest on financial indebtedness, the intervening financial
entities must verify that the relevant debtor has

Our liquidity, financial condition, anticipated results of
operations and business prospects have been materially adversely
affected by the Argentine economic crisis and many of the
measures taken by the Argentine government. The economic and
financial crisis affecting Argentina has:

- resulted in a continued net loss of subscribers, totaling
approximately 356,100 over the eighteen-month period ended June
30, 2003;

- eliminated practically all of our sources of liquidity,
resulting in our inability to refinance debt that matured in 2002
and is scheduled to mature in 2003;

- caused us to default in the payment of principal and interest
due on our 9¬% Notes due 2002, 10«% Notes due 2007, 13.125%
Series E Notes due 2009, 10«% Series C Notes due 2018, Series J
Floating Rate Notes due 2003 (together, the "Existing Notes"),
and other financial indebtedness (together, with the Existing
Notes, the "Existing Debt");

- given rise to a significant decline in the value of our assets
and anticipated revenues; and raised substantial doubts on the
part of our independent accountants as to our ability to continue
as a going concern.

Continuation of Operations

In the context of Argentina's severe economic recession,
Multicanal continues to devote its resources and revenues to
ensure the continuity of its operations. To this end, the Company
has undertaken various measures, including deferring payments on
its outstanding indebtedness, and renegotiating various
contracts, including its contracts with programming suppliers, to
convert substantially all dollar-denominated costs to peso-
denominated costs for 2002, subject to adjustment to reflect
changes in the Company's subscriber base and its ability to
increase subscription fees. The Company engaged the services of a
financial advisor to assist it in connection with the
restructuring of its debt. Accordingly, on January 31, 2003 the
Company launched an offer to purchase for cash (the "Cash Tender
Offer") U.S.$100 million of our Existing Debt at a price of
U.S.$300 per U.S.$1,000 aggregate principal amount of Existing
Debt tendered for purchase. The Company will not pay any accrued
and unpaid interest (including default interest and additional
amounts, if any) on the Existing Debt that is tendered for
purchase in the Cash Tender Offer.

Additionally, on February 7, 2003 Multicanal announced its
solicitation (the "APE Solicitation") from holders of its
Existing Debt of powers of attorney in favor of an attorney-in-
fact, to execute an acuerdo preventivo extrajudicial (the "APE").
The APE Solicitation was made subject to several conditions
precedent. The Company will not pay any accrued and unpaid
interest (including default interest and additional amounts, if
any) on the Existing Debt that is exchanged or capitalized
pursuant to the APE. On July 25, 2003 Multicanal announced the
amendment of the APE Solicitation and Cash Tender Offer (as
amended, the "Cash Option Solicitation"). The amendments include,
among others:

The Cash Option Solicitation:

- Conditions: The Company has amended the conditions precedent
relating to the Cash Tender Offer such that (i) holders of
Existing Debt that elect to participate in the Cash Option
Solicitation will be required to execute the APE, (ii) for each
U.S.$1,000 principal amount of Existing Debt of such holder
accepted by the Company pursuant to the terms of the Cash Option
Solicitation a cash payment of U.S.$300 (the "Cash Payment") will
be conditioned upon the final, non-appealable judicial approval
(homologaci¢n firme) of the APE by the Bankruptcy Court (the
"Court Approval"), and (iii) the amount of Existing Debt to be
accepted in the Cash Option Solicitation will be not more than
U.S.$131 million (instead of a minimum of U.S.$100 million as
previously announced).

- Interest on Cash Payment: The Company will pay interest on the
Cash Payment, such interest to accrue at a rate of 2% per annum
from the APE Confirmation Date (as defined herein) to but
excluding the date on which the Cash Payment is made.

The APE Solicitation:

Conditions:

    - The Company has amended the minimum participation
requirement in the APE Solicitation from 70% of the aggregate
principal amount of the Existing Debt outstanding after giving
effect to the Cash Tender Offer to holders that account for at
least sixty-six and sixty-seven hundredths percent (66.67%) of
the sum of (1) 100% of the Bank Loans and (2) Existing Notes held
by holders that attend and vote in an APE Confirmation Meeting
(the "Relevant Debt") shall have tendered or agreed to
participate in the APE Solicitation and the Cash Option
Solicitation. "APE Confirmation Meeting" means any meeting of
holders of our Existing Debt that we may convene or cause to be
convened that may be required to (a) confirm each such holder's
acceptance of (i) the APE Solicitation or the Cash Option
Solicitation, as the case may be, and the option(s) elected by
such holder and (ii) the APE and/or (b) give effect to the APE,
in accordance with Section 45 bis of the Argentine Bankruptcy
Law.

- The Company has amended the conditions precedent relating to
the Cash Tender Offer such that (i) holders of Existing Debt that
elect to participate in the Cash Option Solicitation will be
required to execute the APE, (ii) payment of the Cash Payment
will be conditioned upon the Court Approval, and (iii) the amount
of Existing Debt to be accepted in the Cash Option Solicitation
will be not more than U.S.$131 million (instead of a minimum of
U.S.$100 million as previously announced).

- The Company has amended the condition precedent relating to the
APE Solicitation regarding the amount of Existing Debt to be
tendered in the Cash Tender Offer to an amount not more than
U.S.$131 million (instead of a minimum of U.S.$100 million as
previously announced).

- The Company has included a cap of U.S.$324.9 million on the
aggregate amount of Existing Debt that may elect the Combined
Option. Any amounts in excess of U.S.$324.9 million will be
prorated and reallocated to the Par Option.

- The Company has reduced to U.S.$76.5 million (from U.S.$120
million as previously announced) the cap on the aggregate amount
of Existing Debt that may elect the Par Option. Any amounts in
excess of U.S.$76.5 million will be prorated and reallocated to
the Combined Option.

Consideration for Combined Option:

The Company has increased the consideration payable by the
Company to holders of Existing Debt that elect the Combined
Option from U.S.$315 of either 7-Year Fixed Rate Notes or 7-Year
FRNs and 598 Class C Shares (as previously announced) to U.S$440
of either 7-Year Fixed Rate Notes or 7-Year FRNs and 641 Class C
Shares, in each case for each U.S.$1,000 tendered in the Combined
Option.

Consideration for Par Option:

The Company has increased the consideration payable by the
Company to holders of Existing Debt that elect the Par Option
from U.S.$1,000 principal amount of our 10-Year Notes to
U.S.$1,050 for each U.S.$1,000 tendered in the Par Option.

The New Notes:

The Company has amended the interest payment provisions of the
New Notes to provide that the first interest payment on each of
the 7-Year Notes and the 10-Year Notes will be made on the same
date that the Class C Shares are registered under the name of the
persons that elected such option and will be in respect of
interest accrued from the date on which the meeting of holders of
its Existing Debt that the Company has convened or caused to be
convened in accordance with Section 45 bis of the Argentine
Bankruptcy Law at which a majority of the Impaired Creditors
tendering Existing Debt that account for at least sixty-six and
sixty-seven hundredths percent (66.67%) of the Relevant Debt have
voted in support of the APE (the "APE Confirmation Date") through
but excluding the date of the Court Approval. The Company has
also amended the interest payment provisions of the 7-Year FRNs
to provide for quarterly interest payments (instead of
semiannually as previously announced). In addition, the Company
has amended the interest payment provisions of the 10-Year Notes
to increase the rate of interest to accrue on the principal
amount of our 10-Year Notes from 2.0%, 3.0% and 4.0% for the
applicable interest periods to 2.5%, 3.5% and 4.5%, respectively

As a result of such amendment, the Company has extended the APE
Solicitation and the Cash Option Solicitation until 5:00 p.m.,
New York City time, on September 30, 2003, unless further
extended by the Company in its sole discretion. Although the
restructuring described above contemplates a reduction of our
debt, as of August 7, 2003, the date of our auditor's report, the
success of the restructuring is still unknown. If the
restructuring is not successful, we will likely commence
voluntary insolvency proceedings (concurso).

Ability to Operate as a Going Concern

In their report accompanying the Company's unaudited interim
consolidated financial statements for the six-month period ended
June 30, 2003, our independent accountants have noted that
although the Company has prepared such financial statements
following accounting principles applicable to a going concern,
the uncertainty related to the outcome of the restructuring
process, the changes in economic conditions in Argentina and the
impact of those changes on the Company create substantial doubt
as to the ability of the Company to continue to operate as a
going concern.

Overview

Set forth below is a discussion and analysis of our results of
operations for the six-month period ended June 30, 2003 and 2002.
The financial information included in the discussion below as at
June 30, 2003 and 2002 and for the six-month period ended June
30, 2003 is derived from our unaudited consolidated financial
statements. The information in this section should be read
together with the unaudited interim consolidated financial
statements and the related notes included elsewhere in this
report. Our unaudited interim consolidated financial statements
were prepared in accordance with Argentine GAAP, which differ
from U.S. GAAP.

Changes in Argentine GAAP

The Professional Council in Economic Sciences of the Autonomous
City of Buenos Aires ("CPCECABA") approved Technical
Pronouncements Nos. 16 "Conceptual framework of the professional
accounting standards"; Nų 17 "Professional accounting standards:
development of matters of general application", Nų 18
"Professional accounting standards: development of certain
matters of specific application", Nų 19 "Changes to Technical
Pronouncements Nos. 4, 5, 6, 8, 9, 11 and 14", and No. 20
"Financial derivatives and hedging operations" through
Resolutions CD 238/01, CD 243/01, CD 261/01, CD 262/01 and CD
187, respectively. These technical pronouncements and amendments
are applicable to fiscal years of the Company commencing on or
after January 1, 2003. Furthermore, the CNV has endorsed the
aforementioned technical pronouncements with respect to companies
subject to its jurisdiction, including Multicanal, incorporating
certain amendments, establishing that they are applicable to
fiscal years commencing on or after January 1, 2003. The main
amendments to Argentine GAAP resulting from the adoption of the
new technical pronouncements are as follows:

- Adoption of stricter guidelines to determine the recoverable
value of assets.

- Changes in the method for translation of financial statements
of foreign subsidiaries stated in foreign currencies.

- Mandatory application of the deferred tax method. Under this
method, deferred tax assets or liabilities are recognized with
the corresponding charge or credit to income for differences
between the financial and tax basis of assets and liabilities at
each period end.

- Adding disclosure to the financial statements, including
earnings per share and the presentation of comparative
information.

- No amortization of goodwill having unspecified useful life.

Pursuant to these technical pronouncements, there are certain
transitional rules that enable, and in certain cases require,
prospective application of valuation and disclosure criteria
contained in those rules. The transitional rules applied by the
Company, which affect the comparability of the financial
statements, are as follows:

- No adjustments were made to the initial balances under the new
guidelines established to determine the recoverable value of
assets.

- The Company's balances of intangible assets and goodwill as of
December 31, 2002 having unspecified useful lives were not
corrected and were not amortized.

- As from January 1, 2003, we have applied the new methods for
translation of financial statements of foreign subsidiaries
stated in foreign currencies.

Devaluation of the Peso

From April 1991 through January 6, 2002, the peso traded at a
rate of 1 to 1 with the U.S. dollar. On January 6, 2002, the
Argentine Congress derogated the Convertibility Law and enabled
the President to set the peso/U.S. dollar exchange rate.
Initially, the government introduced a "dual" exchange rate
system: an official rate of Ps. 1.40 per U.S.$ 1.00 for a vast
majority of transactions, many of which were subject to the
approval of the Central Bank, and a free floating market rate for
a limited scope of transactions. As depositors successfully used
the judiciary to obtain a release of their frozen deposits, pesos
were increasingly used to purchase U.S. dollars, putting
additional pressure on the peso/dollar free floating exchange
rate. On February 11, 2002, the government abandoned the dual
foreign exchange system and allowed the peso to float. At June
30, 2003, the peso/dollar rate quoted by Banco de la Naci¢n
Argentina was Ps. 2.80 to U.S.$1.00. Subsequently, the peso lost
value versus the dollar, trading at a rate of approximately Ps.
2.915 per U.S.$1.00 at August 8, 2003.
Except as otherwise set forth in this report, dollar-denominated
assets and liabilities have been converted into pesos at a rate
of Ps. 2.70 per U.S.$1.00 in the case of assets and Ps. 2.80 per
U.S.$1.00 in the case of liabilities, the buy/sell exchange rates
reported by Banco de la Naci¢n Argentina on June 30, 2003.

Inflation Accounting

Effective September 1, 1995, Argentine regulations applicable to
us required us to discontinue restating our financial statements
to recognize changes in the purchasing power of the peso. Prior
to March 6, 2002, accounting principles did not differ from
applicable regulations provided that the annual change in the WPI
did not exceed 8% per annum. During the years ended December 31,
1999, 2000 and 2001 the WPI increased by 1.2%, increased by 2.5%
and decreased by 5.6%, respectively. Beginning in January 2002,
the inflation rate in Argentina began to increase significantly.

To counter both the high inflation rates brought about by the end
of the convertibility monetary system in Argentina at the
beginning of 2002 and the distortion this caused in Argentine
companies' financial statements, the Argentine government issued
Decree Nų 1269/02 on July 17, 2002. This decree provides for the
reestablishment of the restatement of financial information to
account for inflation and instructed the National Securities
Commission ("CNV") to issue specific regulations regarding its
application to companies such as us subject to the CNV's
jurisdiction. Consequently, on July 25, 2002, the CNV issued
Resolution 415/2002, providing that financial statements filed
subsequent to the date of the Resolution be restated to recognize
changes in the purchasing power of the peso, starting January 1,
2002. On March 25, 2003 the Argentine government issued Decree Nų
664/03 providing that financial statements for periods ending on
a date subsequent to the date of that Decree be expressed in
nominal currency. Consequently, the CNV issued Resolution Nų
441/03 providing for the elimination of inflation adjustment for
all financial statements, effective March 1, 2003. Given that the
CPCECABA has not yet approved the discontinuance of the
restatement of financial statements, the elimination of inflation
adjustment for all financial statements does not comply with
Argentine GAAP. Accordingly, the Company's results for any period
prior to March 1, 2003 have been restated as follows:

- results accumulating monetary transactions, such as net sales,
operating costs, and administrative and selling expenses, have
been restated in constant Argentine pesos, applying to the
original value the conversion factor referenced in the WPI from
the month in which the transaction took place to the date of the
next succeeding fiscal quarter.

- results related to non-monetary assets valued at restated
costs, such as amortization and depreciation, have been computed
based on the restated amounts of such assets.

Financial results have been valued net of general inflation on
the related assets and liabilities. The effect of inflation on
the remaining monetary assets and liabilities has been disclosed
as "Results of exposure to inflation". The income statement for
the period ended June 30, 2003 reflects the effects of inflation
on the Company's net holdings of monetary assets and liabilities
during January and February 2003. Assets and liabilities are
considered "monetary" for purposes of restatement for wholesale -
price level changes if their values are fixed by contract or
otherwise in terms of number of currency units, regardless of
changes in specific prices or in the WPI. Examples of "monetary"
assets and liabilities include peso-denominated accounts
receivable, accounts payable and cash. The restatement of the
income statement to reflect wholesale price level changes merely
reflects the effects of inflation, and does not imply either a
generation or use of funds.

Additionally, amounts for the six-month period ended June 30,
2002, presented herein for comparative purposes, are presented in
constant pesos of February 28, 2003 using a conversion factor
equal to 1.124, which represents the inflation index rate (based
on wholesale prices) for the eight-month period ended February
28, 2003. As described above, inflation adjustment was
discontinued as of March 1, 2003.

Subscribers

Multicanal's annualized churn rate for the three-month period
ended June 30, 2003 was 22.4% as compared to 54.1% for the three-
month period ended June 30, 2002. The decrease in the churn rate
is primarily due to the stability of the Argentine economy during
the six-month period ended June 30, 2003, resulting in a lower
loss of subscribers and disconnections. Multicanal's churn rate
is determined by calculating the total number of disconnected
cable television customers during each of the periods as a
percentage of the initial number of cable televis ion customers
for each such period. We lost approximately 356,100 subscribers
during the eighteen-month period ended June 30, 2003, including
approximately 4,100 subscribers during the first six months of
2003.

Our EBITDA for the six-month period ended June 30, 2003 was Ps.
79.4 million, a 8.3% increase compared to our EBITDA of Ps. 73.3
million for the six-month period ended June 30, 2002. Our bank
and financial debt, including accrued interest and seller debt,
outstanding at June 30, 2003 totaled Ps. 1,790.2 million
(consisting of U.S.$ 614.4 million and Ps. 69.9 million),
compared to Ps. 2,048.3 million (consisting of U.S.$ 583.7
million and Ps. 66.5 million) at December 31, 2002.

Six-month period ended June 30, 2003 and 2002

Net Revenues

Net revenues were Ps. 245.0 million for the six-month period
ended June 30, 2003. This figure represents a decrease of 28.1%
compared to net revenues of Ps. 340.7 million for the six-month
period ended June 30, 2002. The decrease in net revenues in this
period as compared to the six-month period ended June 30, 2002 is
attributable to our inability to increase the basic fees for our
services at a rate equal to or greater than the general rate of
inflation (during the year ended December 31, 2002 and the first
six months of 2003 we increased prices approximately 53%,
compared with an increase in the WPI in the same period of
112.5%), the continued loss of subscribers (approximately 356,100
over the eighteen-month period ended June 30, 2003), and a
reduction in advertising sales. This decrease in net revenues was
partially offset by an increase in other sales, as well as a
decrease of charges for the allowance for doubtful accounts. Our
revenues are presented net of charges for the allowance for
doubtful accounts.

Direct Operating Expenses

Our direct operating expenses were Ps. 119.6 million for the six-
month period ended June 30, 2003. This figure represents a
decrease of 37.5% over our direct operating expenses of Ps. 191.4
million in the six-month period ended June 30, 2002, which is
mainly attributable to a decrease in programming rights, payroll
and social security, printing and distribution of magazines,
taxes rates and contributions, rentals and sundry.

Direct operating expenses consist principally of:

- signal delivery fees paid to programming suppliers,

- wages, benefits and fees paid to employees and subcontracted
service firms for the repair and maintenance of Multicanal-owned
cable networks and customer disconnections, and

- to a lesser extent, the costs of related materials consumed in
these repair and maintenance activities (primarily in foreign
currency, since these inputs are imported), costs associated with
pole rental and the printing cost for Multicanal's monthly
publication.

Selling, General, Administrative and Marketing Expenses

Our selling, general, administrative and marketing expenses were
Ps. 46.0 million in the six-month period ended June 30, 2003.
This figure represents a decrease of 39.3% from Ps. 75.9 million
in the six-month period ended June 30, 2002, which is
attributable principally to a decrease in payroll and social
security, sales commissions, taxes rates and contributions, fees
and compensation for services, publicity and advertising, sundry
and building expenses, and was partially offset by an increase in
employee dismissals.

Our selling, general, administrative and marketing expenses
consist of:
- professional fees,
- wages and benefits of non-technical employees,
- sales commissions,
- advertising,
- insurance,
- rental of office space, and
- other office related expenses.
- various direct taxes previously charged directly to our gross
revenues.

Depreciation and Amortization

Depreciation and amortization expenses were Ps. 80.7 million in
the six-month period ended June 30, 2003. This figure represents
a decrease of 47.4% compared to depreciation and amortization
expenses of Ps. 153.3 million in the six-month period ended June
30, 2002. This decrease in the Company's depreciation and
amortization expenses was mainly due to the discontinuance of the
amortization of goodwill according to the application of the new
accounting rules issued by the CPCECABA through Resolutions Nų
17, 18, 19 and 20. During the six-month period ended June 30,
2003, the Company has not recorded any impairment charge
according to the new accounting rules that require that the
Company test long-lived assets for impairment whenever indicators
of impairment exist.

Financial (Income) Expenses and Holding Gains Net

Our net financial gains were Ps. 211.2 million in the six-month
period ended June 30, 2003, compared with financial expenses and
holding losses, net, of Ps. 798.0 million in the six-month period
ended June 30, 2002. The net financial gains are attributable
principally to the impact of the appreciation of the peso in
relation to the U.S. dollar on the Company's U.S. dollar-
denominated debt (Ps. 361.1 million), compared to a loss of Ps.
1,322.9 million due to the effect of the devaluation of the peso
in the six-month period ended June 30, 2002. The effect of the
devaluation of the peso in the six-month period ended June 30,
2002 was partially offset by: (i) the cancellation of Notes
acquired at a discount from face value in the open market during
such period (Ps. 420.9 million) and (ii) net gains resulting from
the impact of inflation on our monetary assets and liabilities
(Ps. 202.6 million). Net losses resulting from the impact of
inflation on our monetary assets and liabilities during the six-
month period ended June 30, 2003 were Ps. 0.3 million.

Other Non-Operating Income (Expenses), Net

Other non-operating income net, was Ps. 6.6 million in the six-
month period ended June 30, 2003, compared to other non-operating
income, net, of Ps. 0.2 million in the six-month period ended
June 30, 2002. Other non-operating income, net, during the six-
month period ended June 30, 2003 compared to other non-operating
income for the same period in 2002, is attributable mainly to an
increase in sundry and to severance payments collected.

Income Taxes and/or Tax on Minimum Notional Income.

We recorded income taxes during the six-month period ended June
30, 2003 of Ps. 2.0 million. However, during the six-month period
ended June 30, 2002 the Company recorded a gain of Ps. 235.7
million. The increase in income taxes for the six-month period
ended June 30, 2003 is mainly due to the income tax charge
resulting from the financial gain attributable to the impact of
the appreciation of the peso in relation to the U.S. dollar on
the Company's U.S. dollar-denominated debt and income taxes paid
under Multicanal's subsidiaries, and was partially offset by a
decrease in the deferred tax allowance. The gain recorded during
the six-month period ended June 30, 2002 reflects mainly a tax
loss carry forward generated by the impact of the devaluation on
the Company's U.S. dollar-denominated debt. Such tax loss carry-
forward was recorded during the six-month period ended June 30,
2002 according to the deferred income tax method, and is expected
to be recovered in the future based upon the Company's
projections. Additionally, in October 2001 the Company was added
to the register of beneficiaries of the agreements to improve
competitiveness and employment and as a result, the Company was
exempted from the tax on minimum notional income for fiscal year
2001 and future years. That exemption as originally contemplated
in the competitiveness law expired on March 31, 2003. In our
case, this will result in the reimposition of the minimum
notional income tax.

Net Gain/Loss

We had a net gain of Ps. 214.4 million in the six-month period
ended June 30, 2003, as compared to a net loss of Ps. 632.8
million in the six-month period ended June 30,
2002, as a result of the factors described above.

EBITDA

Our EBITDA in the six-month period ended June 30, 2003 was Ps.
79.4 million. This figure represents an increase of 8.3% compared
to our EBITDA of Ps. 73.3 million in the six-month period ended
June 30, 2002. Our EBITDA margin (EBITDA/net revenues) increased
to 32.4% compared to 21.5%, due primarily to a decrease in costs
at a faster pace than the reduction of revenues.

Liquidity and Capital Resources

We operate in a capital intensive industry which requires
significant investments. In the past, our growth strategy has
involved the acquisition of other cable television companies and
the active improvement and expansion of our existing and acquired
networks and equipment. We have historically relied on four main
sources of funds:

- equity contributions from our shareholders;
- borrowings under bank facilities or debt security issuances;
- cash flow from operations; and
- financing by sellers of cable systems we acquire.

The conditions affecting the Argentine economy since 1998 and the
uncertainties as to future developments have prevented us from
raising the funds required to discharge our debt obligations as
they became due in 2002 and coming due in 2003. As a result, we
have defaulted on all payments on our Existing Notes that have
come due, and all principal payments and a substantial portion of
our interest payments on our Bank Loans since February 2002. As a
result of these payment defaults, all of our Existing Notes that
have not yet matured could be declared immediately due and
payable by the holders. Furthermore, our decision to seek a
restructuring of substantially all our financial debt may be
considered to give rise to an automatic acceleration under our
existing Indentures. Since February 2002, we have devoted our
cash flow from operations primarily to ensure the continuation of
our operations. We have been informed that as of August 11, 2003,
at least 33 involuntary bankruptcy (quiebra) petitions have been
filed against us, although as of such date we have been served
with process on 31 petitions. The final outcome of these
petitions, together with the economic conditions in Argentina and
their impact on our financial condition, and the possibility that
the APE Solicitation will be unsuccessful, may cause us to
commence a voluntary insolvency proceeding (concurso preventivo).
The filing of a voluntary insolvency proceeding (concurso
preventivo) may result in a partial or total loss of an
investment in our
Existing Debt.

As of June 30, 2002, we had a shortfall in consolidated working
capital amounting to Ps.1,709.3 million. The Company's
accumulated losses have exceeded 50% of its capital and 100% of
its reserves. Although section 206 of the Argentine Companies Law
establishes mandatory capital reduction in such situations, by
means of Decree No. 1269/02 dated July 17, 2002, the government
suspended enforcement of this regulation until December 10, 2003.

At June 30, 2003, the Company's cash position (including short
term investments) totaled Ps. 122.5 million (U.S.$ 45.4 million).
During the first six months of 2003 the Company applied cash
flows from operating activities to working capital to ensure the
continuity of its operations. The Company estimates its expenses
related to the restructuring of its Existing Debt at
approximately U.S.$ 11.0 million. The Company would also need to
use approximately U.S.$24.3 million of the cash currently
available to it to pay the purchase price in the Cash Option
Solicitation. The Company cannot provide any assurance that it
will generate sufficient cash flows from operations to
sufficiently increase its cash on hand to pay the expenses
relating to the restructuring of its Existing Debt when such
expenses become due and to maintain sufficient liquidity to
conduct its operations.

CONTACT: Buenos Aires
         Marcelo Iribarne
         (5411) 4524-4805
         miribar@multicanal.net.ar

         Alfredo Marin
         (5411) 4309-7602
         amarin@clarin.com


ONETO HERMANOS: Asks Court's Approval For Reorganization
--------------------------------------------------------
Oneto Hermanos S.A., which is domiciled in Buenos Aires, has
submitted its motion for "Concurso Preventivo" to the city's
Court No. 25. Dr. Gonzales is the insolvency judge handling the
case, with assistance from the city's Clerk No. 15, Dr. Lazaeta.

The Company, which makes chains and equipment, is seeking the
court's permission to start its reorganization process after it
stopped paying its debts on July 15 this year.

CONTACT:  Oneto Hermanos S.A.
          2nd Floor
          Parana 457
          Buenos Aires


SAMBEX: Seeks Court Permission for Reorganization
-------------------------------------------------
Sambex Investment Corporation S.A. is seeking permission from a
Buenos Aires court to start its reorganization process. Argentine
news portal Infobae indicates that the Company has filed a motion
for "Concurso Preventivo" to the city's Court No. 26.

The report adds that Clerk No. 51 assists the court on the case.
However, it did not mention whether the motion is likely to be
approved or not.

CONTACT:  Sambex Investment Corporation S.A.
          Castex 3372
          Buenos Aires


SATNET: Declared Bankrupt by Local Court
----------------------------------------
Satnet Internet S.A. was declared bankrupt by Buenos Aires' Court
No. 7, reports local news portal Infobae. The city's Clerk No. 13
assists the court on the case, the source adds.

Creditors are required to submit their claims to the receiver,
Mr. Roberto Lapollnik for verification. Proofs of claims must be
handed in before October 29. After that, the receiver will
prepare the required reports.

CONTACT:  Satnet Internet S.A.
          Florida 878
          Buenos Aires

          Roberto Lapollnik
          Parana 851
          Buenos Aires


SELVA LUIS: Credit Authentication Process Ends Today
----------------------------------------------------
Maria Rosa del Valle Bustamante, receiver for the reorganization
of Selva Luis Selva Carlos S.H. will end the credit
authentication process today, August 18. The receiver will start
preparations for the individual reports, which are to be
submitted to the Court by September 5.

Earlier, the Troubled Company Reporter - Latin America indicated
that the Civil and Commercial Tribunal of Pergamino approved the
Company's motion for "Concurso Preventivo". The court requires
the receiver to submit the general report on November 11. An
informative assembly will be held on May 14 next year.

CONTACT:  Selva Luis Selva Carlos S.H.
          Calle 30 Numero 3812
          Mercedes

          Maria Rosa del Valle Bustamante
          Ave. Roca 814
          Pergamino


SISTEMAS ASISTENCIALES: Creditor Petition For Bankruptcy Approved
-----------------------------------------------------------------
Court No. 2 of Buenos Aires approved a petition for the
bankruptcy of Sistemas Asistenciales S.A., reports La Nacion.
Paola Marassim, to whom the Company owes some $1154 of debt,
filed the motion.

The bankruptcy proceeds with the credit verification process to
establish the existence, nature and amount of the Company's
debts. Creditors must submit their claims to the receiver, Mr.
Fernando Aquilino before September 24.

CONTACT:  Sistemas Asistenciales S.A.
          1st Floor
          Aguero 1122
          Buenos Aires


TATANCA: Creditor Request Results in Bankruptcy
-----------------------------------------------
Cooperativa de Consumo, Cr‚dito y Vivienda Din mica Ltda.'s
motion for the bankruptcy of Tatanca S.R.L. received approval
from Court No. 6 of Buenos Aires. La Nacion relates that Dr.
Ferrario, the insolvency judge handling the case is assisted by
Dr. Mendez Sarmiento.

The report adds that the credit verification period ends on
October 30 this year. The receiver, Mr. Miguel Visco will prepare
the individual reports after that period.

CONTACT:  Tatanca S.R.L.
          11th Floor
          Uruguay 651
          Buenos Aires

          Miguel Visco
          3rd Floor
          3 de Febrero 4683
          Buenos Aires


TRI NOI: Credit Verification Period Ends Today
----------------------------------------------
The credit verification period for the bankruptcy of Buenos
Aires-based company Tri Noi S.R.L. ends today, August 18. The
receiver, Angel Mantero, will then proceed with preparations for
the individual reports.

An earlier report by the Troubled Company Reporter - Latin
America indicated that the Company was declared bankrupt upon the
request of Patricia Di Mundo to whom the Company owes some
$27550. The Company's case is under the jurisdiction of the
city's Court No. 22.

CONTACT:  Tri Noi S.R.L.
          Alvarez Thomas Street No. 2558
          Buenos Aires

          Angel Mantero
          8th Floor
          Lavalle Street No. 1125
          Buenos Aires



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

ANNUITY & LIFE: Issues June 30, 2003 Earnings Report
----------------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR - News) reported
Thursday financial results for the three month period ended June
30, 2003. The Company reported a net loss of $(68,716,440) or
$(2.66) per fully diluted share for the three month period ended
June 30, 2003 as compared to a net loss of $(20,293,998) or
$(0.79) per fully diluted share for the three month period ended
June 30, 2002. The loss in the second quarter of 2003 was
primarily the result of losses associated with recaptures and
terminations of life and annuity reinsurance agreements and
adverse claims experience under the Company's life and annuity
reinsurance agreements.

Net realized investment gains for the three month period ended
June 30, 2003 were $4,896,176 or $0.19 per fully diluted share as
compared with net realized investment gains of $1,837,672 or
$0.07 per fully diluted share for the three month period ended
June 30, 2002. The increase in net realized investment gains
during the three months ended June 30, 2003 is attributable to
the strong credit quality of the Company's portfolio and low
interest rates.

Jay Burke, Chief Executive Officer and Chief Financial Officer of
the Company, commented, "While we expect one or two more
companies to recapture their agreements with us in the third
quarter, the downsizing of the Company through the recapture and
termination of life and annuity reinsurance agreements is
essentially complete. During the second quarter, we were able to
successfully negotiate the termination of our largest guaranteed
minimum death benefit contract, which eliminated a drain on our
earnings. With our downsizing essentially completed, we are now
shifting our focus toward the future.

"On August 5, 2003, we were notified by XL Life Ltd that it
intends to recapture its 50% quota share reinsurance contract
with us. This caused us to expense approximately $21 million of
deferred acquisition costs associated with that contract. We
continue to discuss a comprehensive termination and settlement of
all of our reinsurance relationships with XL Life and its
affiliates.

"We made further progress in reducing our unsecured letter of
credit facility at Citibank. Its exposure is now $29 million
compared to $89 million in the summer of 2002 when we first
agreed to reduce or eliminate its exposure. While we were not
able to collateralize the credit facility by June 30, 2003,
Citibank continues to work with us. We expect further reductions
to occur in the coming quarters.

"We have also made significant progress in reducing future
operating expenses. We have reduced our staffing levels by 40%,
and are now turning our efforts toward normalizing our costs
associated with outside professional services.

"We have completed an analysis of our remaining book of business,
including anticipated third quarter recaptures. After
repositioning the investment portfolio through the second half of
2003 we expect to see a small profit in 2004. With respect to the
annuity business, which now consists of four accounts, while we
expect a slight profit, results from this segment have
historically been volatile.

"Overall, while we still face certain challenges, we have made
great strides toward stabilizing the Company and bringing our
operating costs in line with the Company's expected premium
volume."

During the second quarter of 2003, the Company negotiated the
recapture and termination of several life reinsurance agreements,
an annuity reinsurance agreement and its largest guaranteed
minimum death benefit reinsurance agreement. As noted above, the
Company was recently notified by XL Life that it intends to
recapture its 50% quota share reinsurance contract. In connection
with all these recaptures and terminations, the Company incurred
losses of approximately $(55,000,000), resulting from the write
down of deferred acquisition costs and cash payments made to
cedents net of reserve releases associated with the recaptures
and terminations.

The net loss for the three months ended June 30, 2003 was also
affected by adverse claims experience under the Company's life
and annuity reinsurance agreements, contributing losses of
$(11,400,000). Approximately $(8,500,000) of the loss was related
to life and annuity contracts that were recaptured in the second
quarter.

A reduction in investment income and losses on embedded
derivatives also contributed to the Company's net loss for three
months ended June 30, 2003.

Unrealized gains on the Company's investments were $2,641,227 as
of June 30, 2003 compared to $6,162,525 at December 31, 2002. The
Company's investment portfolio currently maintains an average
credit quality of AA+. Cash used by operations for the six month
period ended June 30, 2003 was $86,149,537, compared to cash
provided by operations of $18,395,545 for the comparable period
ending June 30, 2002. At June 30, 2003, virtually all of the
Company's invested assets were pledged as collateral for the
benefit of its U.S. based clients and letter of credit providers.
Book value per share at June 30, 2003 was $5.52 compared to
$10.28 at December 31, 2002. Tangible book value, which is book
value excluding deferred acquisition costs was $1.44 per share at
June 30, 2003.

Life Segment Results

Life segment loss for the three month period ended June 30, 2003
was $(39,338,329), as compared with segment income of $6,451,436
for the comparable prior period of 2002. The significant segment
loss in the second quarter of 2003 is primarily due to a loss of
approximately $(28,310,000) relating to the recaptures of life
reinsurance agreements by the Company's cedents, reflecting the
write down of deferred acquisition costs and cash payments made
to cedents net of reserve releases. Approximately $21,000,000 of
this amount relates to the anticipated recapture of the 50% quota
share reinsurance agreement with XL Life.

Adverse mortality experience continued into the second quarter
and losses of $(8,480,000) were incurred on the Company's life
reinsurance agreements. Reinsurance agreements that have now been
recaptured were responsible for approximately $(6,200,000) of
this loss.

Reduced investment income also contributed to the Company's net
loss for the three months ended June 30, 2003. This reduced
investment income is the result of a lower yields and a lower
level of invested assets resulting from recaptures. The Company
decided to maintain a high quality portfolio with a large cash
position for the first six months of 2003 to maximize the
Company's ability to meet collateral requirements of its cedents
and letter of credit providers and reduce financial market risk.
The Company plans to reposition the portfolio in the second half
of 2003. Annuity Segment Results

Annuity segment loss was $(33,063,939) for the three month period
ended June 30, 2003, as compared with a loss of $(29,790,379) for
the three month period ended June 30, 2002, reflecting a
$(20,400,000) loss related to the termination of the Company's
largest guaranteed minimum death benefit reinsurance agreement,
$(2,900,000) of losses on that agreement during the quarter, a
loss of $(4,100,000) relating to the termination of another
annuity reinsurance agreement and embedded derivative losses of
$(1,700,000).

Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.

To see financial statements:
http://bankrupt.com/misc/ANNUITY_&_LIFE.htm


SEA CONTAINERS: Announces Results for Quarter and Six Months
------------------------------------------------------------
Sea Containers Ltd. (NYSE: SCRA - News, SCRB - News;
www.seacontainers.com) marine container lessor, passenger and
freight transport operator, and leisure industry investor,
announced Thursday its results for the second quarter and six
months ended June 30, 2003. Net earnings for the quarter were
$9.3 million ($0.44 per common share diluted) on revenue of $420
million, compared with net earnings of $16 million ($0.79 per
common share diluted) on revenue of $337 million in the year
earlier period. For the six months net earnings were a loss of $1
million ($0.05 per common share diluted) on revenue of $771
million, compared with net earnings of $10 million ($0.52 per
common share diluted) on revenue of $556 million in the year
earlier period.

Silja, the Baltic ferry operator subsidiary, incurred higher than
normal winter losses this year due to exceptionally harsh weather
with ice conditions prevailing until the beginning of May. There
were also reduced travel during the Iraq conflict and very high
fuel prices related to the war. However, Silja's traffic volumes
have recovered and it expects to report strong results for the
third quarter. Sea Containers issued in June, 2002 2.5 million
Class A common shares in part payment for the purchase of the
additional shareholding, increasing the average number of common
shares outstanding in the first half of 2003 by 8.5%.

Although the company sold the Isle of Man Steam Packet Company
effective June 30, 2003 for a gain of $100 million the Sea
Containers' auditors have indicated that this gain should be
recognized in the third quarter because the sale contract became
binding and the funds were received in July. The company feels
that recognizing the gain at June 30, 2003 would be a better
presentation of its financial position at that date but this is
merely a timing issue and will not affect the results for the
year. All benefit of ownership of the Steam Packet Company
transferred to the new owners from July 1, 2003.

For the second quarter, operating profits from other ferry
operations were about $1 million down from the prior year due to
a variety of factors none of which is significant in its own
right. Needless to say, the Iraq conflict rather discouraged
travel during the period and exceptionally high fuel prices (the
company was 50% hedged at lower prices) didn't help. In New York
City SeaStreak leased two new terminal facilities but will not
get new vessels to service them for several months. Ferry volumes
in the third quarter are satisfactory and the magnificent weather
in Europe has eliminated (so far) weather related delays. The
reduction in value of the U.K. pound to the European Euro has
stimulated travel from the Continent to the U.K. this summer.

The second quarter profits from rail are slightly down from the
year earlier quarter due to less penalty payments from Network
Rail.

The company's marine container leasing business has continued to
strengthen with operating profits for the second quarter of $10.8
million compared with $3.8 million in the year earlier period.
For the six months operating profits were $20.7 million vs. $12
million in the prior year period. Demand continues strong for new
containers placed on long leases. GE SeaCo, the company's joint
venture with GE Capital Corporation, placed on lease $83 million
of new containers in the first six months of 2003 and approx.
$100 million of new containers are on order for delivery in the
second half of the year. The seasonal lease of refrigerated
containers was better than the year earlier period with 14,200
units leased out in the winter of 2002/2003 vs. 13,500 leased out
in the winter of 2001/2002. The inability of lessors to accept
return of older standard dry cargo containers in low demand
locations has caused a modest slackening of demand for such
equipment. However, demand for specialized containers such as
tanks, swap bodies and flat racks is strong. GE SeaCo is the
industry leader in specialized container leasing. The company's
depots and factories are performing satisfactorily.

The company owns 47% of the common shares of Orient-Express
Hotels and reports its earnings from this investment on an equity
basis. In the second quarter of 2002 the company owned 60% of
Orient-Express Hotels. Orient-Express Hotels issued its second
quarter and six months results on August 6, 2003 and its earnings
press release can be reviewed on its website www.orient-
express.com. In its earnings conference call on August 6 Orient-
Express Hotels management indicated that tourist train and cruise
profits would be substantially down on the prior year because the
Iraq war coincided with the main booking period for those
products. Hotels account for 80% of the company's profits and
they will be stable for the year compared with the year earlier
period, assisted by the recent acquisition of the Hotel Ritz in
Madrid. Sea Containers still has no present plans to sell its
shareholding in Orient-Express Hotels. It believes that 2004 will
be unaffected by events such as the Iraq war and SARS and travel
will return to more normal patterns which will be reflected in
improved earnings for Orient-Express Hotels and hopefully,
improved share prices.

Mr. James B. Sherwood, Chairman, said that had the Steam Packet
sale been recorded as a June 30, 2003 event the company would
have reported profits of $2.76 per common share diluted for the
six months after recognizing $40 million for non-recurring
charges. Since this profit will be taken in the third quarter,
the company's main earnings period of the year, the total profit
for the period will be exceptionally high.

He said that the company wishes to operate its Dover-Calais fast
ferry service on a seasonal basis in the future. It already
operates its Newhaven-Dieppe service seasonally and this has
proved successful. Consultation with employees on this change in
operations will start shortly and until that process is complete
no date can be set for the change. Restructuring costs will be
included in the $40 million of non-recurring charges.

Mr. Sherwood said the outlook for the second half year was
encouraging, excluding the gain on sale of the Steam Packet
Company. All ferry units are enjoying a good peak season, rail
volumes are increasing, excellent growth is being experienced in
marine container leasing and Orient-Express Hotels should achieve
satisfactory results. Debt service costs were $1.7 million less
in the first six months of 2003 compared with the same period in
2002, due to lower interest rates and foreign exchange gains. In
the second half of 2003 the company will enjoy lower debt service
costs due to the retirement of $159 million of 9.5% and 10.5%
senior notes on July 1, 2003 achieved largely through gains on
asset sales. Sale of most of the company's port interests in
Newhaven and Folkestone is expected in the near future.

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


SEVEN SEAS: Emerges From Chapter 11 Protection
----------------------------------------------
Seven Seas Petroleum Inc. (OTC Pink Sheets: SVSSF - News)
announced that, effective Thursday, the Company has emerged from
protection under Chapter 11 of the United States Bankruptcy Code.
On August 4, 2003, the United States Bankruptcy Court, Southern
District, Houston approved a liquidating plan of reorganization
which was previously accepted by the Company's bondholders and
shareholders. The Company's Second Amended Plan of Reorganization
will be filed with the Securities and Exchange Commission on
August 15, 2003 as an exhibit to the Company's Form 8-K. A copy
of the plan will be available via the SEC's website at
www.sec.gov .

The plan provides for the appointment of a sole officer of the
Company and a five-member board of directors.

Ben B. Floyd, the court-appointed bankruptcy trustee will serve
as the new Chief Executive Officer of the Company. Mr. Floyd is a
shareholder of Floyd, Isgur, Rios, and Wahrlich, P.C., a Houston-
based law firm specializing in commercial litigation, insolvency
and creditors' rights. The other board members, representing the
Company's secured and unsecured creditors, are:

Shannon T. Self, Partner, the Commercial Law Group, Oklahoma
City, OK

C. Ray Lees, Partner, the Commercial Law Group, Oklahoma City, OK

Tom A. McKay, Managing Partner, T.A. McKay and Associates, New
York, NY

Jeffrey D. Tuck, Vice President, Credit Suisse First Boston,
L.L.C., New

York, NY

The Company has no source of cash flow and will liquidate
contingent assets, as defined in the plan of reorganization,
including the Deep Dindal Association Contract and certain
Colombian tax assets. The Company has until September 1, 2003 to
obtain additional financing to test and complete the Escuela 2
exploration well on the Deep Dindal Association Contract. It
remains uncertain whether the Company will be able to obtain
additional financing. If financing is not obtained by September
1, the Company may be forced to relinquish the Deep Dindal
Association Contact.

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company with interests in Colombia,
South America.

Statements regarding anticipated oil and gas production and other
oil and gas operating activities, including the costs and timing
of those activities, are "forward looking statements" within the
meaning of the Securities Litigation Reform Act. The statements
involve risks that could significantly impact Seven Seas
Petroleum Inc. These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling
risks, inherent uncertainties in interpreting engineering and
geologic data, competition, reduced availability of drilling and
other well services, fluctuations in oil and gas prices and
prices for drilling and other well services and government
regulation and foreign political risks, as well as other risks
discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.


TYCO INTERNATIONAL: Parker & Waichman, LLP Soon to File Suit
------------------------------------------------------------
Parker & Waichman, LLP announced that it has been retained by
plaintiffs and that they will soon file claims against Tyco
International (NYSE: TYC) and Merrill Lynch (NYSE: MER). To date,
Parker & Waichman, LLP and associated counsel have already been
retained by hundreds of individuals financially injured by the
inappropriate advice of Merrill Lynch. Current and former Tyco
shareholders are encouraged to
visithttp://www.yourlawyer.com/practice/overview.htm?topic=Tyco%2
0%20Stock%20Fraud for more information.

The allegations will assert that Merrill Lynch issued fraudulent
research reports for Tyco International to attract investment
banking business from the company. Earlier this year Merrill
Lynch analyst, Phua K. Young, was charged by the NASD for issuing
misleading research reports for Tyco International that did not
reflect his own doubts about Tyco's strategy and for providing
Tyco executives with a copy of the research report before it was
released to the public to get their approval.

The NASD stated that Phua K. Young sent Tyco's CFO an e-mail that
contained a draft of his reports/ratings in which Mr. Young
stated, "PLEASE REVIEW ASAP, I WILL NOT SEND IT OUT UNTIL I HEAR
FROM YOU FIRST! LOYAL TYCO EMPLOYEE!"

Additionally, Mr. Young has been accused of presenting Tyco CEO
Dennis Kozlowski with a $4,500 case of wine as a wedding gift.
Tyco - or representatives of Tyco -- reciprocated by reportedly
giving Mr. Young a $3,500 case of champagne as a wedding gift, US
Open tennis tickets, use of a private investigation service, and
a flight on a Tyco corporate jet.

All of the instances above violate the $100-a-year gift limit and
demonstrate an unusual closeness between an analyst, who is
supposed to be objective, and a public company that he covers.

Tyco International, in a report to the SEC, has admitted to over-
reporting its 2002 results by nearly $400 million. Additionally
the Company admitted that its last five years of financial
reports were also inflated. Three of Tyco International's top
executives have been indicted for fraudulent activities. The
three executives are accused of stealing $600 million through
loans, bonuses, and illegal stock sales. Regulators have said
that the three executive used Tyco as "their personal piggy
bank."

These complaints will also charge that Tyco International and
Merrill Lynch violated section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated there under, by issuing a
series of materially false and misleading statements.
Additionally these complaints will accuse Merrill Lynch of
violations of Section 15(c) of the Securities Exchange Act of
1934, as well as various state statutes, for issuing fraudulent
research reports and for violating NYSE Rules 401, 472 and
476(a)(6), and NASD Rules 2110 and 2210, for issuing research
reports that were not based on principles of fair dealing and
good faith, did not provide a sound basis for evaluating facts,
contained exaggerated or unwarranted claims about the covered
companies, and/or contained opinions for which there were no
reasonable bases. Parker & Waichman and associated counsel
currently represent hundreds of victims of stock fraud and we
continue to aggressively file claims against fraudulent public
companies and investment banks. For more information
on Parker & Waichman, LLP please visit our site at
http://www.yourlawyer.comor call 1(800)-LAW-INFO.

CONTACT:  Parker & Waichman, LLP
          David Krangle, ESQ.
          1-800-LAW-INFO (1-800-529-4636)
          dkrangle@yourlawyer.com



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

CESP: S&P Lowers Ratings Upon Exchange Offer Conclusion
-------------------------------------------------------
Standard & Poor's Ratings Services said Thursday it lowered its
global scale local currency and foreign currency corporate credit
ratings on Brazilian utility Companhia Energetica de Sao Paulo
(CESP) to 'SD' (selective default) from 'CC'.

In addition, Standard & Poor's lowered its ratings on CESP's ?200
million 9.75% notes due February 2004 (the Series 1 Notes) and
the US$300 million 10.5% notes due March 2004 (the Series 2
Notes) to 'D'.

The corporate credit rating on the Brazil national scale was also
lowered to 'SD' from `brCC'.

The downgrade reflects the conclusion and acceptance by
bondholders of the exchange offer solicitation made by CESP on
July 16, 2003, relative to both Series 1 and 2 Notes.

Under the terms of the solicitation, CESP offered to amend the
terms and conditions of the existing Series 1 and 2 notes,
extending their maturity to 2008 and increasing the coupon to
13%.  The existing notes will start amortizing in installments,
with the first installment scheduled to be in February 2004 (10%
of the nominal amount).

Alternatively, CESP offered to exchange the existing Series 1 and
2 notes for new notes with a 5% increase in the nominal amount, a
14% coupon, and a new maturity in 2011. In addition, the company
offered to bondholders a 5% cash payment. CESP will redeem
approximately 9.5% of the nominal amount of the new notes in
February 2004. Bondholders who accept the exchange offer are
solicited to agree with the amendment of the terms and conditions
of the existing notes as well (as described above).

Standard & Poor's views the conclusion of the exchange offer as
tantamount to default, since the company, absent the
restructuring, would not have the resources to pay the notes in
full on the maturity dates. The exchange offer is therefore seen
as "coercive" since the lack of options leave investors with no
alternative other than to accept the offer.

An 'SD' rating is assigned when the obligor has selectively
defaulted on a specific issue or class of obligation but continue
to meet payment obligations on other issues or classes of
obligations in a timely manner. Standard & Poor's will re-
evaluate the company's financial standing, post-restructure, in
order to assign a new issue and issuer rating.

Rating List:
                                             To    From
Companhia Energetica de Sao Paulo
Global local currency rtg                    SD    CC/Neg
Global foreign currency rtg                  SD    CC/Neg
CESP's ?200 million 9.75% notes              D     CC/Neg
US$300 million 10.5% notes                   D     CC/Neg
Corporate credit rating (national scale)     SD    brCC/Neg

ANALYST:  Juliana Gallo
          Sao Paulo
          Phone: (55) 11-5501-8948

          Milena Zaniboni
          Sao Paulo
          Phone: (55) 11-5501-8945


DVI: Asking for Bankruptcy Protection
-------------------------------------
DVI, Inc. announced Wednesday that it will seek to make a filing
under Chapter 11 of United States Bankruptcy Code in the next few
days. DVI has not currently secured debtor-in-possession
financing. In addition, DVI's chief financial officer, Steven
Garfinkel, has been placed on administrative leave and Anthony
Turek and John Boyle have been assigned the functions of the
office of chief financial officer. Despite extensive discussion
with potential funding sources, DVI was unable to arrange for the
funding required to continue operations. Its attempts to address
its problems through a sale or recapitalization have been
hindered by the recent discovery of apparent improprieties in its
prior dealings with lenders involving misrepresentations as to
the amount and nature of collateral pledged to lenders. An
investigation into those improprieties has been commenced by
DVI's audit committee but is not yet complete.

About DVI

DVI is an independent specialty finance company for healthcare
providers worldwide with $2.8 billion of managed assets. DVI
extends loans and leases to finance the purchase of diagnostic
imaging and other therapeutic medical equipment directly and
through vendor programs throughout the world. DVI also offers
lines of credit for working capital backed by healthcare
receivables in the United States.

DVI's largest and fastest growing sector of its international
operations is in Latin America. A joint venture, MSF Holding
Ltd., is led by Manuel Perez, who manages the venture from
offices in Boca Raton, Florida. Its partners in the formation of
MSF Holding are International Finance Corporation (IFC), an
affiliate of the World Bank; Netherlands Development Finance
Company (FMO), majority-owned by the Dutch government; and
Philadelphia International Equities, Inc. (an affiliate of First
Union Corporation). IFC, and FMO finance or syndicate a major
portion of the capital for this venture.
MSF Holding and its subsidiaries in Latin America finance
diagnostic and other medical treatment equipment for numerous
vendors through offices in Argentina, Brazil, Colombia, Uruguay
and Mexico.


DVI INC.: Fitch Ratings Comments on Bankruptcy Announcement
-----------------------------------------------------------
On Aug. 13 DVI, Inc. (DVI) announced that it expects to file for
Bankruptcy under Chapter 11 of the U.S. Bankruptcy Code within
the next several days. In addition, DVI also announced that it
discovered improprieties in its dealings with lenders involving
misrepresentations as to the amount and nature of pledged
collateral. DVI's audit committee is presently conducting an
investigation into the matter and Chief Financial Officer Steven
Garfinkel has been placed on administrative leave.

Fitch anticipates that it will lower DVI's senior unsecured debt
rating to 'D' from 'C' following a formal bankruptcy filing. A
single 'D' rating reflects Fitch's belief that the recovery
potential for the rated securities is very low (below 50%). This
view is based on the lack of any substantial unencumbered assets
on DVI's balance sheet. Further, a meaningful component of the
value of assets pledged to secured lenders in excess of secured
obligations consists of non-accruing, delinquent, and repossessed
assets. Fitch also believes that DVI's historical delinquency and
chargeoff trends will weaken if the company or its principal
lending officers are not able to continue servicing the
receivables. Loss severity may be heightened depending upon the
scope of DVI's misrepresentations regarding its collateral.

CONTACT:  Fitch Ratings
          Matthew D. Gallino, +1-212-908-0218
          Philip S. Walker, Jr., CFA, +1-212-908-0624
          James Jockle +1-212-908-0547 (Media Relations)


EMBRATEL: Click 21 Launches National Campaign
---------------------------------------------
All the advantages afforded by Click 21, the free Internet
provider with Embratel's top quality, are now available to web-
surfers from all over Brazil. As of Thursday, the new provider's
national launching campaign - comprising newspapers, magazines,
radio and websites - will be introducing Click 21 as the best
choice for free Internet access in Brazil.

Thanks to the advertising campaign launched firstly in Curitiba
in July, the service has gained over 65 thousand users nationwide
just three weeks after its inauguration, exceeding the company's
expectations. The service supplied by Embratel's subsidiary,
which has been created to offer Internet connection and products
to residential customers and small businesses, is now available
to around 120 localities provided with Embratel's local telephone
service.

Click 21 gets in the competitive market of free Internet
providers with the commitment to offer the best connection and
special services quality. Some of the assured benefits are: quick
connection, no busy tone, around-the-clock support, two e-mail
accounts by user with up to 30 Mb storage each, anti-virus; anti-
spam; spelling correction in four languages; and links to top
websites available on the Internet. Click 21 has been arranging
sponsorships with content and e-commerce websites and will be
soon offering new tools to web-surfers.

The level of quality of its connection will have the guarantee of
Embratel - which owns Latin America's biggest Internet backbone
with fully digital technology - through a very simple, user-
friendly dialer. Web-surfers can access the www.click21.com.br
portal, download the dialer and follow the instructions to be
connected to the network..

"Through this service, Click 21 and Embratel are giving their
contribution toward information access and are enabling the
Brazilian people to become a part of the digital community, since
from any computer they will be able to surf over the World Wide
Web at no cost whatsoever", points out Eduardo Vianna, Click 21
project manager.

Embratel is the premium telecommunications provider in Brazil,
offering a wide range of telecommunication services, such as
advanced voice, high-speed data transmission, internet, data
communication by satellite and corporate networks. The company is
national leader in data and internet services, in a privileged
position to become the Latin American carrier with an all-
distance network. Embratel network has national coverage with
almost 17,500 miles of optic cables, representing around one
million miles of fiber optics.

CONTACT:  Embratel
          Advertising, Press and Public Relations Department
          Further information: (02121) 2121 7837 / 2121 6291
          Fax: (02121) 2121 7791
          Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188
          Attention: Fl vio Resende
          E-mail: cmsocial@embratel.net.br
          Embratel on the internet: www.embratel.com.br


FIBERCORE INC.: Reports on Filing of 2Q 10-Q and Other Matters
--------------------------------------------------------------
FiberCore, Inc. (OTC Bulletin Board: FBCE.OB), a leading
manufacturer and global supplier of optical fiber and preform for
the telecommunication and data communications markets, announced
Thursday that it will not be filing its second quarter 10-Q in
accordance with SEC reporting requirements. Instead, the Company
plans to submit its second quarter financial results, which will
not be reviewed by its independent auditors, in the form of an 8-
K filing as soon as possible after August 15, 2003.

By failing to file a 10-Q in accordance with SEC requirements,
the Company will not be in compliance with the listing
requirements of the OTC-Bulletin Board, which will result in the
Company's shares being delisted from the Bulletin Board. In
anticipation of that event, the Company has started the process
necessary to facilitate the trading of its shares on the "pink
sheets." However, no assurance can be given that the Company's
shares will be quoted in the "pink sheets" or there will not be a
break in trading activity during the process.

Concurrently, the Company is seriously considering filing a Form
15 in order to deregister its common stock with the SEC. Filing a
Form 15 immediately relieves the Company of its obligation to
file certain reports and forms, including Forms 10-K, 10-Q, and
8-K with the SEC as well as other reporting requirements. If a
Form 15 were filed, the Company expects that deregistration would
become effective within 90 days.

Dr. Mohd Aslami, President and CEO stated, "The economic argument
against being a reporting company is quite compelling, given the
costs, both direct and indirect, in connection with preparing and
filing these reports; the substantial increase in costs
associated with being a reporting company in view of new
regulations resulting from Sarbanes-Oxley; the collapse of the
Company's market valuation; and other related factors."

"On associated matters, the Company has just begun settlement
talks with Shin-Etsu with respect to its recent arbitration
award. However, no assurance can be given that a settlement will
be reached, and the Company has not yet secured new financing, in
part owing to the Shin-Etsu award. In addition, the Company was
just recently sued for $400,000. The suit, which alleges that a
commission was earned in the summer of 2002 in connection with a
tender offer, is totally baseless. Nonetheless, the liquidity
situation continues to deteriorate, raising the possibility of an
insolvency filing," added Dr. Aslami.

FiberCore, Inc. develops, manufactures, and markets single-mode
and multimode optical fiber preforms and optical fiber for the
telecommunications and data communications markets. In addition
to its standard multimode and single-mode fiber, FiberCore also
offers various grades of fiber for use in laser-based systems up
to 10 gigabits/sec, to help guarantee high bandwidths and to suit
the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the
Desk applications. Manufacturing facilities are presently located
in Jena, Germany and Campinas, Brazil.

CONTACT:  Phone - 508-248-3900
          FAX - 508-248-5588
          E-Mail: sales@FiberCoreUSA.com
                  investor_relations@FiberCoreUSA.com
          Website: www.FiberCoreUSA.com


LIGHT SERVICOS: Net Loss Widens Amid Shrinking Market
-----------------------------------------------------
Brazilian power distributor Light Servicos de Eletricidade, which
is controlled by French-based Electricite de France (EdF),
reported a net loss of BRL163 million in the second quarter of
the current year.

According to information obtained by Dow Jones, the figure more
than doubles the BRL71-million net loss posted in the same
quarter in the previous year.

In a statement, Light said its market shrank by 4.3% on the year
between January and June as industrial electricity usage dropped
by 34%. Net revenue rose as a result of a 17% price hike handed
down in November of last year.

Light is an electricity distributor serving about 3.5 million
consumers in the Brazilian state of Rio de Janeiro.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


MRS LOGISTICA: Announces Second Quarter 2003 Results
----------------------------------------------------
MRS Logistica S.A., one of the largest railroad concessionaires
in Brazil, announces its results for the 2nd quarter of 2003
(2Q03).

MRS transported 21.6 million tonnes in 2Q03, 14.5% above volumes
achieved in 1Q03 and 19.5% higher when compared with the same
period of 2002. The increase in volumes in 2Q03 was a consequence
of greater iron ore exports (MBR, Ferteco and CVRD) and to the
growth of agricultural products demand, mainly soybeans.

The total volume transported on 1st half of 2003 (1H03) achieved
40.4 million tonnes, 18.3% above the same period of 2002.

Gross revenues in 2Q03 reached R$ 332.8 million, 13% and 58.7%
higher when compared with 1Q03 and 2Q02, respectively. Gross
revenues in 1H03 reached R$627.3 million, a 62,3% growth when
compared with the same period of last year.

The evolution in revenues was a result not only from the volume
increment but also due to higher tariffs, which were applied in
order to recover increases in some of the Company's costs. The
average tariff in 1H03 reached R$ 15.53/ton, 37% higher than
average tariff in 1H02.

Fuel and lubricant costs had only a 4.2% increase in 2Q03,
despite the higher tonnage shipped, due a 7.3% reduction in
diesel unit prices in the quarter. However, fuel costs in 1H03
increased 84.1% when compared to 1H02, caused by a 36.5% increase
in fuel prices throughout the period.

Costs of services increased 8.5% in relation to the 1Q03, while
these costs in 1H03 increased by 32.3% when compared to same
period of previous year, due to the intensification in the
maintenance of locomotives and wagons, as a result of higher
production volumes.

EBITDA registered in 2Q03 amounted to R$ 134.5 million, 26% and
143% superior than EBITDA registered in 1Q03 and 2Q02,
respectively. In 1H03, EBITDA reached R$240.9 million, 150% above
the amount achieved in the same period of 2002. EBITDA margin
(EBITDA/Net Revenues) in 1H03 was 42.6%, up from 27.4% in 1H02.

The Company showed a net income of R$110.2 million in 1H03, a
strong recovery from the R$154.9 million loss recorded in 1H02.
In addition to the improvement in operational and commercial
aspects, this result confirms management's successful efforts
towards reorganizing the Company's capital structure, through
continuous debt reduction and hedging strategy for its long-term
liabilities.

Consolidated net debt at the end of 1H03 was reduced to R$819
million, 15.5% lower than the R$969 million recorded at the end
of 2002, as a result of the strong cash generation during the
semester.

Among commercial aspects, we should highlight:

- Initial transport of iron ore for Companhia Vale do Rio Doce -
CVRD, from the Casa da Pedra, Alberto Flores and Esta‡ao do Pires
(MG) terminals for export through the port of Sepetiba (RJ). 1.2
million tonnes are scheduled to be shipped from April to December
/2003.

- Start of cellulose transport for Votorantim Celulose e Papel -
VCP from its plant in Jacare” (SP) for export by the port of
Santos. In order to realize this transport, several investments
were necessary, such as reactivation of the railway segment
between Jacare” and Mogi das Cruzes, adaptation of wagons and
construction of railway extensions at the Jacare” plant and at
VCP's terminal in Santos. Currently, 50,000 tonnes/month are
being transported.

- Transportation of containers with chemical products for Rhodia
- Ster from Paul”nia (SP), initially through trucks until Hamburg
Sd/Alian‡a's terminal in Jundia” (SP) and from there, through
MRS' Santos-Jundia” express route to the port of Santos.
Initial volumes are 400 containers/month.

- Start of transportation of steel products for Belgo Mineira
from its plant in Piracicaba (SP) for export through the port of
Rio de Janeiro, with monthly volumes of 12,000 thousand tonnes.
Also for Belgo Mineira, start of operations of a Transtrailler
system, in the Rio de Janeiro - Juiz de Fora (MG) route, to
transport steel products from its plant in Juiz de Fora to the
port of Rio, returning with scrap metal on its way back to the
plant. This system consists of road semi-trailers that can be
coupled on top of railway bogies, becoming rail wagons, combining
the advantages of the railway with the versatility of trucks.
Initially, the convoys will be formed by 10 Transtraillers,
performing one trip per week in each way. 2000 tonnes of steel
products and scrap are expected to be shipped per month.

This project reaffirms the Company's objective towards expanding
its participation in the in general cargo segment.

Among operational aspects, we should highlight the arrival at the
port of Santos of 11 locomotives (9 GE C-30-7 - 3.300 HP and 2 GE
C-36-7 - 3.600 HP) acquired from General Electric. Additionally,
MRS will be receiving in 3Q03, 11 GE C-36-7 locomotives also
acquired from General Electric and 10 GE C-30 locomotives,
acquired from National Railway Equipment Co. (NREC).

The expansion of the locomotive fleet, together with the overhaul
of 300 HAS wagons scheduled to be concluded in 3Q03, will ensure
MRS the necessary capacity to reach its 85 million tones
production goal at the end of 2003.

CONTACT:  Praia de Botafogo, 228/1201-E
          22250-906 - Rio de Janeiro - RJ
          Brasil
          Attention: Eduardo Cassinelli - Treasurer
          Marco Andre Guimaraes - Financial Manager
          Maria Lucia Silveira - Financial Analyst
          Tel.: 55-21-2559-4600
          Fax: 55-21-2552-2635
          E-mail: daf@mrs.com.br
                  www.mrs.com.br


MSF FUNDING: Notes Series 2000-1 Ratings Placed on Watch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services on Thursday placed its ratings
on MSF Funding LLC's $80 million floating-rate asset-backed notes
series 2000-1 on CreditWatch with negative implications (see
list). The notes are backed by medical equipment leases
originated by DVI Inc.'s Brazilian operations.

DVI, which is headquartered in the U.S., announced Aug. 13, 2003,
that their chief financial officer was placed on administrative
leave and that they "discovered apparent improprieties in its
prior dealings with lenders involving misrepresentations as to
the amount and nature of collateral pledged to lenders." This is
further to DVI's announcement Aug. 1, 2003, that it would not
make an interest payment due on its 9 7/8% senior notes due 2004.
This prompted Standard & Poor's to lower DVI's counterparty
credit and senior unsecured debt ratings to 'D' (see "DVI Inc.
Ratings Lowered to 'D' and Removed from CreditWatch," published
Aug. 1, 2003, available on RatingsDirect, Standard & Poor's Web-
based credit analysis system, at www.ratingsdirect.com).

Furthermore, on Aug. 13, 2003, JPMorganChase Bank, the trustee,
declared an early amortization event with respect to the notes
based on information including the aforementioned factors
relating to DVI. The early amortization event can be waived or
deferred only if 66 2/3% of each class of noteholders decides so
for their respective class of notes.

DVI's Brazilian operations, Medical Systems Finance S.A. (MSF),
Healthcare Systems Finance S.A. (HSF), and Oferil S.A., sold the
medical equipment leases to MSF Funding. MSF and HSF are the
master servicers of the portfolio of medical equipment leases.
Standard & Poor's credit and legal analysis of the ratings on the
MSF Funding notes assumes that the structure can withstand an
insolvency of DVI's Brazilian operations. Upon such insolvency, a
backup servicer, JPMorganChase Bank, would assume the servicing
of the lease portfolio. Funds in MSF Funding's accounts may be
used to cover expenses relating to the transfer of servicing to
JPMorganChase.

The reserve account, which is currently $4.3 million, can be used
to cover the cost of servicing transfer, commingling risk, and/or
liquidity issues relating to delinquent leases. Standard & Poor's
analysis assumed the default frequency on the lease portfolio was
multiples of the historical performance and no recovery value
would be obtained on the liquidation of any defaulted leases.

Nevertheless, due to the declaration of an early amortization
event and in light of the unique nature of the collateral and
highly specialized servicing requirements, the financial
uncertainty surrounding DVI, and the heightened likelihood of a
servicer transition, Standard & Poor's is placing the series
2000-1 notes on CreditWatch. Should delinquencies and defaults
increase markedly during a transition period or the early
amortization period, remaining enhancement may not be consistent
with the current ratings on the notes.

Performance on the Brazilian lease portfolio to date has been
steady; only seven leases, or 2.6% of the total pool balance,
have defaulted.

Total delinquencies as of the July payment date were 3.46% of the
outstanding pool. Thirty percent of the rated note balances
remain outstanding. When the outstanding balances of the class D
and the unrated class E notes equals 25% of their original
issuance amounts, principal amortization will cease on these two
classes until all of the class A, B, and C notes have been
redeemed. Interest on the notes is paid monthly on a timely
basis. Principal on the notes is not due until the stated
maturity date in July 2007.

Standard & Poor's will continue to monitor developments as they
unfold.

          RATINGS PLACED ON CREDITWATCH NEGATIVE
                    MSF Funding LLC

                           Rating
Class             To                     From
A            A/Watch Neg                 A
B            BBB/Watch Neg               BBB
C            BB/Watch Neg                BB
D            B/Watch Neg                 B
E            N.R.                        N.R.

ANALYST:  Gary Kochubka
          New York
          Phone: (1) 212-438-2514

          Thomas G Gillis
          New York
          Phone: (1) 212-438-2468


SABESP: Announces Second Quarter 2003 Results
---------------------------------------------
SABESP - Cia. de Saneamento Basico do Estado de Sao Paulo -
(BOVESPA: SBSP3) (NYSE: SBS), the largest water and sewage
utility company in the Americas and the third largest in the
world (in terms of number of customers), on Thursday announced
its financial results for the second quarter of 2003 (2Q03). The
Company's operating and financial information, except when
indicated otherwise, is shown in Brazilian Reais, in accordance
with the Brazilian corporate law. All comparisons in this release
are with respect to the second quarter of 2002 (2Q02), unless
otherwise stated.
Highlights:

-- Sabesp recorded gross revenues of R$ 1,013.9 million and
EBITDA of R$ 422.0 million in 2Q03.

-- Gross revenues increased R$ 33.7 million or 3.4%. Despite the
8.22% increase in tariffs as from August 2002, this growth
results from the 1.4% decrease in total volume billed to the
retail market.

-- The line item Costs, Administrative and Selling expenses
increased R$ 82.1 million or 13.7%.

-- Net income for the period was R$ 332.6 million, deriving from
the positive effect of the Brazilian real appreciation in
relation to the US dollar in the period.

2Q03 earnings release:
http://www.mzconsult.com.br/sabesp/Sabesp_2Q03_eng.pdf

2Q03 financial statements:
http://www.mzconsult.com.br/sabesp/ITR_2T03_por.pdf

CONTACT:  SABESP
          Investor Relations:
          Helmut Bossert
          Phone: 5511 3388-8664
          E-mail: hbossert@sabesp.com.br

          Marisa Guimaraes
          Phone: 5511 3388-9135
          E-mail: marisag@sabesp.com.br

          Home Page: www.sabesp.com.br


TAM: President Leaves Post
--------------------------
Antonio Luis Teixeira, TAM Linhas Aereas' board vice-president,
is to become the airline's acting president following Daniel
Mandelli's decision to quit the post Thursday, reports Reuters.

The 51-year-old's decision to quit, which comes as TAM is
preparing to merge with its troubled rival Varig, was due to
personal reasons, according to TAM spokeswoman. But a company
source told Reuters Mandelli had fallen out with the Amaro
family, which controls TAM via a 72% stake.

The source related that Mandelli wanted TAM to have a bigger
stake in the new merged company than the currently proposed 30-
35%, while the Amaro family insisted on the merger as soon as
possible.

Varig would have only 5% of the new company, while the rest would
be distributed between creditors, including the Brazilian
government.

The merger process has been suspended due to a court injunction,
but the parties are fighting to have it overruled.

The merger is marked for next month, says Reuters.


TRICO MARINE: Announces New CFO and Sale of North Sea Vessel
------------------------------------------------------------
Trico Marine Services, Inc. (Nasdaq: TMAR) on Thursday reported
the hiring of Trevor Turbidy as the Company's new Chief Financial
Officer. Before joining Trico, Mr. Turbidy was employed by Credit
Suisse First Boston as a Director in their Investment Banking
Division.

In addition, the Company announced that it is continuing to make
progress in executing on its liquidity enhancement plan. The
Company has entered into a definitive agreement to sell one of
its North Sea vessels for NOK 263 million. The vessel sale is
subject to customary closing conditions and is expected to be
completed during the third quarter of 2003. The Company has also
recently received a $4.5 million tax refund. Proceeds from the
sale of the vessel and the tax refund will be used to pay down
outstanding indebtedness under the Company's revolving credit
facilities and increase working capital.

"We are very pleased to have Trevor be part of the team at
Trico," said Thomas E. Fairley, President and Chief Executive
officer. "Trevor's financial expertise will be a great asset as
we continue to work on our liquidity enhancement plan."

Trico Marine provides a broad range of marine support services to
the oil and gas industry, primarily in the Gulf of Mexico, the
North Sea, Latin America, and West Africa. The services provided
by the Company's diversified fleet of vessels include the marine
transportation of drilling materials, supplies and crews, and
support for the construction, installation, maintenance and
removal of offshore facilities. Trico has principal offices in
Houma, Louisiana, and Houston, Texas. Visit our website at
www.tricomarine.com .


USIMINAS: EBITDA Grows 109% in 1H03, Net Profit Totals R$824 Mln
----------------------------------------------------------------
Usinas Sider£rgicas de Minas Gerais S/A - USIMINAS (BOVESPA:
USIM3, USIM5, USIM6; OTC: USNZY), released Wednesday financial
and operational figures for 2Q03. Financial and operational
information in this release, except when specified to the
contrary, are presented on a consolidated basis in reais, in
accordance with existing Corporate Law. All comparisons made in
this release refer to the same period in 2002, except when
otherwise stated.

HIGHLIGHTS

Sales and Revenues -Sales were favored by firm demand in the
domestic market, mainly in the industrial and distribution
sectors and companies related to agri-business. Sales volume
reached 1,939 thousand tonnes in 2Q03, totaling 3,769 thousand
tons in 1H03, a growth of 4% over 1H02. Net revenues totaled R$
2.1 billion in the quarter and accumulated R$ 4.2 billion in the
half, 56% above the same period last year. The additional of
higher-value added sales and sustained domestic market prices in
2Q03 favored revenues in the period.

EBITDA - Cash generation reached R$ 760 million in 2Q03 and R$
1.6 billion in 1H03, a growth of 109% in the semester. EBITDA
margin went from 41.9% in 1Q03 to 36.0% in 2Q03 with increases in
the cost of raw materials, electrical energy and reduction of
export revenues due to exchange rate variations.

Net Income - Usiminas recorded a consolidated net income of R$
468 million in 2Q03, totaling R$ 824 million in 1H03. The
favorable result occurred not only from good operational
performance, but also from less debt service pressure. With the
expansion of cash generation and reduction of indebtedness, the
Total Debt/EBITDA ratio went from 5.7x in June 2002 to 2.4x at
the end of 2Q03, considering EBITDA of the last 12 months.

Outlook - Perspectives for growth in domestic demand for flat
steel in 2003, as a consequence of the cooling down of the
Brazilian economy from April onward, were reduced from 5.2% to
2.2% for the year. The worst domestic market demand should occur
in 3Q03 with some recovery foreseen for 4Q03, in case the Federal
government advances in its macroeconomic policy stimulus,
reducing interest rates and the level of compulsory deposits and
raising public spending, thereby injecting more money into the
economy. In this manner, we estimate a fall in demand in second
half 2003 of around 8% in relation to the first half.

The Usiminas System intends to compensate the retraction in the
domestic market with exports. The supply of products will be
slightly reduced with the programmed stoppage for revamping of
Blast Furnace no. 2 at Usiminas for approximately 3 months, as of
September.

Market, Production And Sales

Brazilian crude steel production grew 8.4% in 1H03 and totaled
15.3 million tonnes. Flat steel production totaled 6.4 million
tonnes, growing 18%, while slab production for sale decreased 17%
in the half. In the first half, domestic flat steel demand
surpassed expectations for the industry due to the continuation
of purchases in export-related segments, agricultural implements
and machinery, as well as inventory replenishment on the part of
distributors and other major customers. With this domestic sales
grew 5.7% on a sales volume of 4.6 million tonnes - the best
semester in the history of flat steel sales in Brazil. Flat
rolled exports grew from 0.8 million to 1.3 million tonnes. Slab
exports were reduced from 3.4 to 2.7 million tonnes.

The Usiminas System produced 2.2 million tonnes of raw steel in
2Q03, accumulating 4.3 million tonnes in the half. Growth was 8%
in the period, basically from production increases at Cosipa.
With the return of Cosipa's production levels, after maintenance
stoppages in 1Q03, the System operated at a production rate of
approximately 9 million tonnes/yr in the quarter.

Production (Crude Steel)

Consolidated sales volume reached 1.9 million tonnes in the
quarter and totaled 3.8 million tonnes in 1H03, 4% above the same
semester of last year. Domestic market sales accounted for 74% of
shipments in the period.

Products with better sales margins continued to impact with a
growing share of the product mix. Shipments of cold rolled
products reached 484 thousand tonnes in the quarter, totaling 963
thousand tonnes in 1H03, 35% above 1H02. Sales of galvanized
products reached 146 thousand tonnes in 2Q03 and 289 thousand
tonnes in 1H03, a growth of 42% compared to the first half of
2002.

In 2Q03, Usiminas concentrated on supplying domestic market
customers, in response to the firm demand of companies with
vigorous export programs, as well as the agribusiness and
distribution segments.

With the entry of new competitors the Usiminas System's flat
rolled steel market decreased from 62% in 2002 to 59% in 2Q03. It
is worthy to mention, however, that the fall was less than was
initially foreseen by the Company.

The international market was affected by the interruption of
purchases by China in the months of April and May, depressing
exports to the Asian market and stagnating international prices.
However, the beginning of a recovery in this area has already
been perceived at the end of the half.

Sales

Although exports were less attractive because of the appreciation
of the real and the fall in international prices, Usiminas
maintained its presence, focusing of market with higher value-
added products and large customers. In this way, the Company
intends to sustain its margins through a pre-established export
program.

Net Sales Revenues

Consolidated net sales revenues totaled R$ 2.1 billion in 2Q03,
growing 50% in relation to 2Q02. This expansion was partially a
result of the price recovery at the end of 2002. In the half net
revenues reached R$ 4.2 billion, 56% higher than in 1H02. In
relation to 1Q03, revenues remained at the same levels, in spite
of the negative impact of exchange variation on export revenue.
This behavior was a result not only of growth in sales volume,
but also from the sustaining of domestic prices and larger sales
volumes of higher value-added products.

Gross Profit

Gross profit was R$ 762 million in 2Q03, accumulating R$ 1,637
thousand in 1H03, with growth of 89% and 121%, respectively, over
the same periods in 2002.

Gross margin advanced from 29% in 2Q02 to 36% in 2Q03. However,
there was a retreat in relation to the 41% reached in 1Q03,
mainly in function of the readjustments in the prices of raw
materials, greater expenses with coke imports due to the
revamping of Cosipa's coke oven batteries and increases in the
price of energy.

Operating Results

Operational profit before financial expenses (EBIT) was R$ 629
million in 2Q03 and R$ 1,387 thousand in 1H03, increases of 108%
and 137%, respectively.

On the other hand, EBITDA reached R$ 761 million in 2Q03,
accumulating R$ 1,649 million in the half, a growth of 109% in
relation to 1H02. EBITDA margin went from 29% to 39%. Analyzing
quarter over quarter, EBITDA margin went from 41.9% in 1Q03 to
36.0% in 2Q03 as a consequence of cost increases of raw materials
and reduction of export revenue due to the appreciation of the
real. In spite of the retraction, the EBITDA margin remained
above the historical average of the Company.

Financial Results and Debt

In 1H03, the Real appreciated by 19% and generated positive
exchange gains of R$ 350 million (net of hedging operations).
This decreased the impact of net financial expense, which totaled
R$ 111 million.
Gross consolidated debt was reduced to R$ 7.9 billion at the end
of June. Out of this total, 46% is made up of export and import
financing, 21% refers to BNDES, 5% is domestic debentures and the
remainder refers to sundry operations.

With the purpose of reducing the cost of debt, Usiminas made its
first issuance of Eurobonus. Demand surpassed expectations, and
the original offering of US$ 50 million was expanded to US$ 75
million, fixing remuneration at the minimum limit of the interval
of 6.875% per annum.

Between December 2002 and June 2003, the Company's debt level was
reduced by R$ 1.6 billion. With the expansion of cash generation
and the gradual reduction of debt, total consolidated debt to
EBITDA ratio decreased from 5.7x in 2Q02 to 2.4x in 2Q03.

Net Income

Net income was favored by good operational performance and less
pressure from debt servicing. Consolidated net income reached R$
468 million in 2Q03, accumulating R$ 824 million in the half.

Investments

Resources destined for investments in the Usiminas System totaled
R$ 96 million in 2Q03 and R$ 172 million in the half. Total
projected investments for 2003 are basically being directed to
equipment maintenance, revamping of Blast Furnace no. 2 at
Usiminas and production optimization at Cosipa.

In the beginning of June, Usiminas started operating its blast
furnace top blowing turbine on Blast Furnace no. 3 at the
Ipatinga works, raising its energy selfsufficiency from 20% to
25%.

Participation in Sidor's Restructuring

On June 23 Usiminas announced its participation in the
restructuring of Sidor's debt through a US$ 25.8 million cash
contribution in the form of subordinated convertible debt.
Consolidated debt at Sidor was reduced from US$ 1,883 million to
US$ 791 million. Additionally, all guarantees offered by the
Cons¢rcio Siderurgia Amaz“nia relative to loans made to Sidor
were cancelled and substituted by securitization of assets of
Sidor. After conclusion of this first phase, Usiminas' share will
reach 11.35% of the total capital of Cons¢rcio Siderurgia
Amaz“nia. At the conclusion of the restructuring process, total
share in the voting capital of Cons¢rcio Siderurgia Amaz“nia
could reach 16.6%.

With the restructuring, Usiminas maintained its stake in one of
the most important companies with competitive costs and a more
solid financial structure. Sidor is the main steel producer in
Venezuela, with an installed capacity of 3.6 million tonnes/yr
and is the second largest exporter in the country.

Interest on Equity

The Company decided to pay out interest on equity to shareholders
owning shares on July 11, 2003 in the amount of R$ 0.3730 per
common share and R$ 0.4103 per preferred share. Payment was made
on August 1, 2003.

Outlook

As a consequence of the retraction of the Brazilian economy as of
April, growth projections of domestic demand for flat steel for
2003 were reduced from 5.2% to 2.2%. The worst performance in the
domestic market should occur in 3Q03, and recovery should begin
in 4Q03, in the case the Federal government advances in its
policy to stimulate the economy with falls in the interest rate
and compulsory deposits and increased public spending, thereby
injecting money into the economy. Thus, we estimate a fall in
demand in the 2nd half of 2003 of 8% in relation to 1H03. The
Usiminas System intends to compensate the retraction in the
domestic market with exports. The supply of products will be
slightly reduced with the programmed stoppage for revamping of
Blast Furnace no. 2 at Usiminas for approximately 3 months, as of
September.

Usinas Sider£rgicas de Minas Gerais S/A - USIMINAS is an
integrated steel manufacturer, with net consolidated sales of R$
6.6 billion in 2002. The USIMINAS System is made up of USIMINAS
and Cosipa, has an annual production capacity of 9.2 million tons
of raw steel, occupying a position of leadership in the domestic
flat steel market in the automobile industry, autoparts,
agricultural and highway machinery, electronics and linepipe
industries.

CONTACT:  Breno J£lio de Melo Milton
          bmilton@usiminas.com.br
          Tel: (55 31) 3499-8710

          Paulo Esteves
          paulo.esteves@thomsonir.com.br
          Tel: (55 11) 3897-6466


VESPER: Minister Approves Sale, Voices Concern Over Layoffs
-----------------------------------------------------------
Brazil's communications minister Miro Teixeira expressed
apprehension regarding long distance incumbent Embratel's
acquisition of competitive local exchange carrier Vesper, reports
Business News Americas.

While he approves the acquisition, he expressed concern that
Embratel might not be able to keep Vesper afloat without making
layoffs.

"The problem is not Embratel buying Vesper. It is not allowing
Vesper to go bankrupt," Teixeira said.

A letter of intent for the acquisition was announced Monday but
the transaction, to become official, still needs approval from
the telecoms regulator Anatel. Though the agency has made no
official declarations on the transaction, Anatel VP Antonio
Carlos Valente made a positive comment, saying the sale was
"attractive... for both society and for competition."



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

EDELNOR: Strikes Supply Deal With Mantos Blancos
------------------------------------------------
Chilean generator Edelnor (Empresa Electrica del Norte Grande
S.A.) informed the country's securities regulator that it signed
contracts Tuesday to supply 40MW capacity to the Mantos Blancos
copper mine for eight years from October 1, 2005, relates
Business News Americas.

Edelnor, majority-owned by CODELCO and Tractebel, already
supplies Mantos Blancos. The two companies agreed to modify the
terms and tariffs of the existing contract, which expires in
September 2005, increasing capacity by 6MW. They also agreed to
modify and extend the terms of a power generation rentals
contract.

Headquartered in Santiago, Chile, Edelnor is a utility engaged in
electricity generation and transmission in northern Chile's First
and Second Regions.

CONTACT:  Empresa Electrica Del Norte Grande SA
          Avenida Grecia 750
          Antofagasta, Chile
          Phone: +56 55 248500
                 +56 55 248094
          Contact: Fernando del Sol, Chairman


ENAMI: May Get Back Pampa Camarones Before Year-end
---------------------------------------------------
Chile's state minerals company Enami is expected to sign an
agreement with the country's army before year-end whereby the
military will return to the firm part of the lands it is
occupying on the Pampa Camarones plain in Arica province, Region
I, Business News Americas reports, citing local press.

The properties, according to the report, are located 50km from
Arica city in the far north of Chile.

Mining undersecretary Patricio Morales said the accord means
Enami will take control of some parts of these lands to enable
small scale or artisan miners to lease or rent out and exploit
existing deposits.

Enami ended last year with a loss of US$21.6 million, compared
with a loss of US$28.7 million in 2001.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Email: webmaster@enami.cl
          Home Page: www.enami.cl/
          Contact:
          Jorge Rodriguez Grossi, President



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

PETROECUADOR: To Reopen Oil Bidding Round This Week
---------------------------------------------------
Petroecuador President Pedro Espin revealed that the Ecuadorian
state oil company plans to reopen its ninth oil bidding round
this week following a failed attempt in April due to lack of
bidders.

Business News Americas recounts that one of the reasons why the
ninth round did not attract bids was that private companies felt
that blocks in the Gulf of Guayaquil did not justify the large
required investment, whereas the Oriente basin blocks in the
Amazon are more attractive.

Another one reason behind the lack of offers is Ecuador's legal
uncertainty. Among the legal issues concerning foreign companies
is the issue of some US$200 million in outstanding sales tax
(IVA) refunds.

The four blocks to be included in the auction are in the
country's southwestern region: block 4 (estimated size 300,000ha)
and block 5 (200,000ha), onshore in Guayas province; and offshore
blocks 39 (385,000ha) and 40 (400,000ha), in the Gulf of
Guayaquil.

Together the four blocks have estimated probable reserves of 10
billion barrels of crude and 8.5 trillion cubic feet (tcf) of
gas.



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

C&WJ: SC Orders Reinstatement of Oceanic's Connections
------------------------------------------------------
Cable & Wireless Jamaica (C&WJ) received an order from the
Supreme Court late Wednesday to reinstate the inter-connection
privilege of Oceanic Digital, pending the hearing of a lawsuit on
the matter on August 25.

Oceanic, Jamaica's third largest cellular provider, filed a suit
last month, after C&WJ began blocking the calls saying their
agreement authorized network use for domestic calls only.

Oceanic, which has 55,000 Jamaican customers, denied violating
the agreement and accused C&WJ of trying to slow the industry's
deregulation, which began March 1.

The New York-based company claimed the restriction has cost it up
to US$400,000 (Jamaican $23 million) a month in lost revenues.

Meanwhile, Errol Miller, Head of Corporate Communications at
C&WJ, expressed disappointment at Wednesday's court ruling, but
said C&WJ will abide by the decision and reinstate Oceanic's
interconnection circuits.


JUTC: Transport Minister Announces Fares Hike
---------------------------------------------
Robert Pickersgill, Jamaica's Transport Minister, announced
Wednesday an increase in fares ranging from 33% - 50% on Jamaica
Urban Transit Company (JUTC) buses, says RadioJamaica.Com.

The minister said the measure, which was due to be implemented
Saturday, is aimed at maintaining sustainability in the face of
rising costs reflected in the 700 million dollars spent yearly by
the Company to buy fuel and spare parts.

In an effort to defend the move, Pickersgill said that the new
rates are significantly less than the rate recommended by several
consultants who were contacted by the Government. According to
him, the Office of Utilities Regulation, the Board of the JUTC
and the Swedish Consultants all recommended a 90% - 100% increase
in bus fares. However, the proposals were modified due to what
the Government's concern that such an increase could result in
severe social consequences, Pickersgill added.

In the meantime, the opposition Jamaica Labour Party seeks to
delay the hike in fares, saying a new fare structure should not
be granted to the JUTC at this time, because the Company's
financial woes have still not been addressed.



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

EMPRESAS ICA: May Participate in Second Stage Of Road Project
-------------------------------------------------------------
The analysis division of Mexico's Santander Serfin revealed that
executives from ICA have indicated that the construction company
will take part in the bidding process for the second stage of the
traffic distribution system of Mexico City.

This project requires an investment of MXN1.92 billion (US$180
million) and is proving to be popular because it is a financed
project.

"With the aim of being conservative, ICA did not participate in
the first stage of the project, which was concluded recently.
However, based on the positive performance of other construction
companies and the prompt payment of the Mexico City government,
ICA has decided to take part in the second phase," commented
Santander Serfin.

Santander Serfin further said that if ICA won all or part of the
concession, it would be favorable for the Company, as the project
would mean a significant amount of income in a relatively short
period. No investment from ICA will be needed, as the government
will finance the project, which "could be favorable for ICA's
free cash flow helping ICA relieve its difficult financial
situation."

The winners of the concession will be announced at the end of the
month and the second phase of the project is set to be completed
towards the end of 2003.


GRUPO IUSACELL: Announces Extension of Temporary Amendment Waiver
-----------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL) ("Iusacell" or
the "Company") announced Thursday that its subsidiary, Grupo
Iusacell Celular, S.A. de C.V. ("Iusacell Celular") formally
requested an additional extension of its temporary Amendment and
Waiver (the "Amendment") of certain provisions and defaults under
its US$266 million Amended and Restated Credit Agreement, dated
as of March 29, 2001 (the "Credit Agreement"). The lenders under
the Credit Agreement acknowledge receiving the Iusacell Celular
request and are currently considering and evaluating the
Company's request.

During the first half of 2003, Iusacell Celular exceeded the
permitted leverage ratio under the Credit Agreement of 2.50. On
April 28, 2003 Iusacell Celular and the lenders entered into a
temporary amendment and waiver to the Credit Agreement to
increase the permitted leverage ratio from 2.50 to 2.70. After
receiving various extensions, on July 27, 2003, the amendment was
further extended until August 14, 2003.

Upon expiration of the amendment and if the additional extension
is not granted, an Event of Default (as defined in the Credit
Agreement) will occur as if the Amendment had never been
executed. Accordingly, the lenders under the Credit Agreement
have the right to declare the indebtedness under their loan
immediately due and payable.

Additionally, Iusacell previously publicly announced that,
pending agreement with its lenders on a restructuring plan,
Iusacell Celular did not made the US$7.5 million interest payment
due on July 15, on Iusacell Celular's 10% bonds due 2004. The 30-
day cure period to make the interest payment, before an event of
default is declared has expired. As a result, an event of default
has occurred under the Indenture governing the bonds, and the
bondholders have the right to accelerate the principal of the
bonds or take other legal actions, as specified in the Indenture,
as they deem appropriate.

About Iusacell

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

CONTACT:  Grupo Iusacell, S.A. de C.V.
          Mexico City
          Jose Luis Riera K.
          Phone: 011-525-5109-5927

          Carlos J. Moctezuma
          Phone: 011-5255-5109-5759
          Email: carlos.moctezuma@iusacell.com.mx


GRUPO TMM: Announces Recent Judgment Regarding TFM VAT Claim
------------------------------------------------------------
Grupo TMM, S.A. (BMV: TMM A and NYSE: TMM), a Latin American
multi-modal transportation and logistics company, announced that
in a public session held August 13, the Federal Tribunal of
Fiscal and Administrative Justice (the "Fiscal Court") in Mexico
issued a resolution regarding TFM, S.A. de C.V.'s (TFM) Value
Added Tax (VAT) Lawsuit vacating its previous resolution of
December 6, 2002, and, in strict compliance with the ruling
issued on June 11, 2003, by the Court of the First Circuit (the
"Federal Court"), resolved that TFM has proved its case, and that
a "ficta denial" occurred, declaring such denial null and void as
ordered by the Federal Court.

TFM is waiting to receive the official resolution from the Fiscal
Court and will evaluate its implications. The company will
provide additional information at such time.

Headquartered in Mexico City, Grupo TMM is a Latin America's
multimodal transportation company. Through its branch offices and
network of subsidiary companies. Grupo TMM provides a dynamic
combination of ocean and land transportation services. Grupo TMM
also has a significant interest in TFM, which operates Mexico's
Northeast railway and carries over 40 percent of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and
TFM's web site is www.tfm.com.mx.

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

          Brad Skinner
          Phone: 011-525-55-629-8725 (IR)
          Email: brad.skinner@tmm.com.mx

          Dresner Corporate Services
          Kristine Walczak (IR, analysts and media)
          Phone: 312-726-3600
          Email: kwalczak@dresnerco.com

          PROA/STRUCTURA
          Marco Provencio
          Phone: 011-525-55-629-8708
          Email: mp@proa.structura.com.mx



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

CARONI: High Court Justice Issues Order To Halt VSEP Payments
-------------------------------------------------------------
Justice Amrika Tiwarie of the San Fernando High Court ordered
Caroni (1975) Ltd. to halt payments of Voluntary Separation of
Employment packages to more than 1,000 daily-paid employees, says
the Trinidad Express.

The order was issued following a writ filed by the Caroni
(Brechin Castle) Credit Union Co-operative Society Ltd, which is
trying to collect on over $10 million from Caroni.

The report relates that a spokesman for the credit union claimed
Caroni owes over $4 million in dues, which were deducted from the
salaries of former daily-paid workers, $1 million in dues from
staff employees and over $5 million in outstanding loan payments.

The representative said an agreement was reached with the Company
to have outstanding loan payments deducted from VSEP benefits
before separation packages were paid to ousted workers.

But this was not effected.

The assets of the credit union stand as $29.5 million as at
Tuesday, the report reveals.

Former acting CEO Chandra Bobart, who received the order, said he
would have to "go through the wad of documents" with the
transition team's legal advisor, Clarence Rambarath, before
making any further comments.

Bobart said the transition team should remain in place for the
next two months, by which time outstanding VSEP payments shall
have been paid and all outstanding financial issues taken care
of.

He said consultations with the Board of Inland Revenue to have
tax matters of former employees settled were being done on a
daily basis and that half of the VSEP packages had been paid out
so far. All daily-paid workers have received their VSEP packages,
he added.



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

URUGUAYAN BANKS: Moody's Releases Annual Report
-----------------------------------------------
Moody's Investors Service has released its annual report on
Uruguay's banking system entitled "Banking System Outlook:
Uruguay".

According to the report authored by Moody's Vice President Jeanne
Del Casino, the negative outlook for the Uruguayan bank ratings
reflects their weak intrinsic creditworthiness and the relatively
unstable environment in which they operate.

The banks have been severely affected by the crisis in
neighboring Argentina and by the precipitous downturn in the
domestic economy, said the report.

"We expect the banks' performance to continue to be pressured by
the sovereign's fragile economy and weak financial outlook for
the near term," Ms. Del Casino stated in the report.

Ms. Del Casino adds that: "The rebuilding process for the
domestic banking system is an enormous challenge for Uruguay. It
depends ultimately on whether Uruguay can muster the political
will to energetically implement a restructuring plan for the
public sector banks and a revival of the private sector, and will
require considerable financial assistance from external sources."



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

*Venezuela Announces Bond Swap
------------------------------
Venezuela announced Thursday it swapped US$86 million (VEB137
billion) in 2006 maturing bonds for debt, which came due Friday
as it defers payments and fund government spending.

The new bonds were priced to yield between 34.61% and 38.49% and
will mature in two-and-a-half years to three years. The Chavez
Frias government had offered to swap VEB500 billion in bonds,
according to the Central Bank of Venezuela (BCV), which stated
that the 3-year bonds, which matured Friday, had coupons of
25.63%.

Last month, Standard & Poor's raised Venezuela's long-term
foreign currency rating to B- from CCC+ after the government
bought back $1.5 billion in foreign bonds and sold $1.5 billion
in 7-year US%-denominated domestic debt.



               ***********


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.


* * * End of Transmission * * *