/raid1/www/Hosts/bankrupt/TCRLA_Public/010531.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, May 31, 2001, Vol. 2, Issue 106
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Sepi, Union Meeting Fails To Reach Accord
AEROLINEAS ARGENTINAS: Union Members Threatened To Block Flights
B R A Z I L
BESC: Reports Profits In 1Q01 Due To Central Bank Intervention
CVRD: Cenibra Buyer To Take Lead In Brazilian Market
CVRD: Shuts Down Subsidiaries Due To Restructuring Work
VARIG: To Broaden Partnership With Transbrasil
C H I L E
DAYTON MINING: Reports Improved Financial Results For 1Q01
MORGAN IMPRESORES: El Mercurio Seen Closing Purchase
M E X I C O
AEROMEXICO: Seeks Intervention In Dispute With Flight Attendants
AEROMEXICO/MEXICANA: 1Q01 Losses Blamed On U.S. Economic Slowdown
AHMSA: Could Reach Accord With Creditors This Week
CHRYSLER: Voluntarily Recalls Of Half A Million Neon-Model Cars
GRUPO PULSAR: Apolo Prudential Wants Subsidiary
MAXCOM TELECOMUNICACIONES: Announces Appointment of CFO
V E N E Z U E L A
SIDOR: Must Carry On Transformation Process, CEO Says
- - - - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Sepi, Union Meeting Fails To Reach Accord
----------------------------------------------------------------
A meeting held Tuesday in Madrid between Spain's state holding
company SEPI, the controlling shareholder of Aerolineas
Argentinas, and members of the airline's technicians' and flight
attendants' unions, didn't yield positive results, according to
Reuters.
"The secretary general of the technicians' union has yet again
put Aerolineas Argentinas in extreme danger," Argentina's Labor
Minister Patricia Bullrich said.
Of the seven unions representing most of the employees, five had
already accepted Sepi's bailout plan. According to reports, SEPI
is developing a plan to sell its 93 percent stake in the ailing
airline. The holding company also plans to inject $350 million
into the airline to keep it afloat but needs labor peace first. A
deal would involve job stability for two years in exchange for
unions accepting more flexible contracts and wage cuts of between
6 percent and 20 percent.
"Without this capital injection, Argentina is not in a position
to take on the company, and it would be headed down a very
painful road of either starving to death or going broke,"
Bullrich said.
However, the technicians' and flight attendants' unions, refused
to accept the proposed plan, defending their existing job
contracts and arguing that the governments of Argentina and Spain
should take more responsibility.
Bullrich added that the labor ministry would take legal action to
disqualify the Asociacion de Personal Tecnico Aeronautico (APTA)
union, one of the two unions mentioned above, from representing
Aerolineas Argentinas' maintenance technicians.
AEROLINEAS ARGENTINAS: Union Members Threatened To Block Flights
----------------------------------------------------------------
Some members of an Aerolineas Argentinas union threatened to
block departing flights of Spain's Iberia to protest unpaid
wages, AFX Europe reported Tuesday. Police were deployed
overnight at Ezeiza international airport to prevent the APA
union from blocking the flights.
"We are going to try and delay and stop the departure of Iberia
flights ... in relation to news from Madrid that the company
should be closed," said Ariel Basteiro, head of the aero-
technicians union.
Payment of Aerolineas Argentinas staff salaries has been delayed
by a dispute over the carrier's recapitalization between the
Argentine government and majority shareholder Sociedad Estatal de
Participaciones Industriales (Sepi).
===========
B R A Z I L
===========
BESC: Reports Profits In 1Q01 Due To Central Bank Intervention
--------------------------------------------------------------
The intervention of the Central Bank into Besc (Banco do Estado
de Santa Catarina) since August 2000, injecting R$780 million,
helped the bank to get back to profitability in the first quarter
of the current year, South American Business Information reported
Tuesday. Besc was able to report profits of R$8.9 million in the
Jan - March 2001 period. The fresh funds reinforced Besc's
capital, boosting it from negative R$91.3 million to positive
R$650.8 million. In March, Besc reported assets of R$1.9 billion
from which only R$138.3 million in credits. The bank is scheduled
for privatization by the end of this year, however, before the
scheduled event, a voluntary retirement program, which will cost
the company some R$428 million, will be implemented. This program
will see a reduction of 3,000 workers from the current 4,900
employees labor force. Other complementary measures would be to
acquire the credits portfolio at a cost of R$702 million, and to
cover the R$250 million deficit of the Fusesc pension fund.
Sources close to the company say that BESC is set for auction
because of lack of investments in technology and a bloated
workforce.
CVRD: Cenibra Buyer To Take Lead In Brazilian Market
----------------------------------------------------
Companhia Vale do Rio Doce is expected to auction its 51-percent
participation in woodpulp Cenibra soon. The highest bidder is
widely believed to take the lead in the Brazilian market, South
American Business Information revealed Tuesday. Cenibra, which
runs an 800,000-mtpy capacity, has attracted companies such as
Votorantim, Aracruz, UPM-Kymene, and Suzano. Suzano recently
acquired a 50-percent stake in Bahia Sul, also sold by CVRD, in a
transaction valued at US$320 million.
CVRD: Shuts Down Subsidiaries Due To Restructuring Work
-------------------------------------------------------
CVRD Chairman Jorio Dauster announced that all of the group's
subsidiaries in the northern states of Para and Maranhao will be
shut down for restructuring work, which aims to increase their
production capacity, according to a Gazeta Mercantil report
Tuesday. CVRD plans to invest R$1 billion to increase production
of iron ore, aluminum and kaolin by 2003, and in order to ensure
this expansion, it will invest in hydroelectricity. The company
is already analyzing plans to invest in plants that are planned
on the Araguaia and Tocantins rivers in the towns of Estreito and
Serra Quebrada in Maranhao and Santa Izabel in Par . The three
hydroelectric plants are expected to generate nearly 3,500
kilowatts/hour, which Dauster said would be enough to supply its
subsidiaries in the region.
VARIG: To Broaden Partnership With Transbrasil
----------------------------------------------
Brazilian air transportation companies Varig and Transbrasil
announced intentions to expand their operating partnership, South
American Business Information related Tuesday. According to Varig
executive officer Mr. Roberto Macedo, the companies are currently
studying new routes to be included in the second stage of the
association.
Just recently, Varig revealed that it was about to start
negotiations with Airbus, a Boeing archrival. A team from the
European multinational is expected to be in Rio de Janeiro first
week of June, bearing with them commercial proposals. Reports
have it that Varig could likely form a multi-million-euro
business relationship with Airbus.
Varig is currently facing a significant financial threat. In the
first quarter of this year, it registered R$1.5 billion in gross
turnover and $196.3 million in losses. The company's debts are
estimated to be at R$1.3 billion.
=========
C H I L E
=========
DAYTON MINING: Reports Improved Financial Results For 1Q01
----------------------------------------------------------
Bill Myckatyn, President and Chief Executive Officer of Dayton
Mining Corporation (the "Company"), (DAY: AMEX, TSE) announced
today the operating and financial results of the Company for the
first quarter ending March 31, 2001. All figures are in United
States dollars.
Operations Review For 2001
During the first quarter of 2001, consolidated production for
Dayton Mining Corporation was 12,190 ounces of gold and 86,694
ounces of silver at a cash production cost of $269 per ounce, net
of silver credits. This compares to production in the first
quarter of 2000 of 25,805 ounces of gold and 7,454 ounces of
silver at a cash production cost of $277 per ounce, net of silver
credits. All of the Company's production in 2001 came from its
49% joint venture interest in the Denton-Rawhide Mine near
Fallon, Nevada. In contrast, during the first quarter of 2000 all
of the production came from the Company's 100% indirect interest
in the Andacollo Mine in central Chile. The Andacollo Mine was
permanently closed in December of 2000, at which time the Company
wrote off its interest in this operation and deconsolidated it
from the balance sheet. Therefore, the results for the first
quarter of 2001 exclude the operating and financial results of
the Andacollo mine.
Financial Results
During the first quarter of 2001, the Company incurred a loss of
$1.08 million or ($0.03) per share compared to a loss of $2.2
million or ($0.13) per share in the first quarter of 2000. Sales
revenue during the first quarter of 2001 was $3 million compared
to $7.4 million in the first quarter of 2000. The reduction in
revenue was a result of a lower volume of metal sold due to lower
production and a change in the Company's revenue recognition
policy. In 2000 sales were recognized when metal was available
for sale. Effective January 1, 2001 sales are recognized when
title to the gold and silver bullion passes to the buyer. As
result of this accounting policy change, sales totaled 10,330
ounces of gold and 49,020 ounces of silver in 2001 compared to
the reported production for the corresponding period in the prior
year. The spot gold price in the first quarter of 2001 was 9
percent less than in the first quarter of 2000. The gold price in
the first quarter of 2001 averaged $263.46 per ounce versus
$290.22 per ounce in 2000. During the first quarter of 2001 the
highest gold price experienced was $272.50 per ounce, compared to
the lowest price of $275.75 per ounce during the same period in
2000. The Company did not realize any hedging revenue in the
first quarter of either 2001 or 2000.
The operating loss during the first quarter of 2001 was $755,000
or ($0.02) per share compared to a loss of $1 million or ($0.06)
per share during the first quarter of 2000. The improved
financial performance during 2001 was due to the Denton Rawhide
Mine being a lower cost operation than Andacollo. Depreciation,
depletion and amortization on production from Denton Rawhide
totals $65 per ounce compared to $49 per ounce at Andacollo. Non-
cash charges are greater at Denton-Rawhide than at Andacollo
because of the amortization of the excess purchase price, which
arose on the acquisition of the Company's interest in the mine.
Exploration spending fell to $236,000 from $316,000 in the prior
year. Exploration spending in 2001 was almost entirely on the El
Dorado property in El Salvador and was incurred to advance the
preliminary economic study, which must be submitted to the
government of El Salvador in mid-July. Exploration spending in
2000 was on the claims comprising the Andacollo Mine.
The foreign exchange loss of $19,000 occurred on current monetary
assets and liabilities denominated in Canadian dollars and used
to fund administrative costs incurred in Canada. The larger
foreign exchange loss in the prior year, was related to monetary
assets and liabilities at the Andacollo Mine denominated in
Chilean pesos. General and Administration costs declined by
$337,000 in the first quarter of 2001 compared to the first
quarter of 2000. Reduced spending occurred in corporate
development, other professional spending and for wages and
salaries. In addition the company was able to recover $88,000 in
administrative costs from activities in Chile. Interest expense
declined by $222,000. In 2000, the Andacollo Mine incurred
interest costs on an equipment lease, line of credit borrowings
and there were minor interest charges relating to the Andacollo
project loan, which was retired on January 19, 2000. In 2001,
interest costs were related to the loan to a related party. This
debt relates to the reclamation and closure fund held in trust
for Denton-Rawhide. Interest income was slightly higher in 2001
owing to larger cash balances invested.
Cash flow provided by operating activities was negative $588,000
or ($0.02) per share in the first quarter of 2001. During the
first quarter of 2000 cash flow provided from operations was a
$1,121,000 or $0.06 per share. The generation of cash in the
first quarter of the prior period was a result of a significant
reduction in bullion receivables. At the end of 1999 the
Andacollo Mine could not ship bullion to its customers because of
Y2K concerns. This resulted in a significant increase in
receivables, which generated a significant amount of cash in
January 2000. Without this unusual working capital change, the
Company's cash flow from operating activities in the first
quarter of 2000 would have been negative $218,000. Reinvestment
in the Company's mining properties fell to $23,000 in the first
quarter of 2001 from $608,000 during the first quarter of 2000.
The reduction in reinvestment occurred because the mining fleet
at Denton-Rawhide has already been paid for, thereby minimizing
on-going capital. During the first quarter of 2000 investing
activities were related to capitalized acquisition costs, capital
requirements to improve the processing facilities at Andacollo
and deferred stripping.
The company did not undertake any financing activities in the
first quarter of 2001.Overall there was a net use of cash in the
amount of $727,000 during the first quarter of the current year.
In March 2000 the company completed a special warrant financing
with a net $5.8 million placed into escrow. Also in 2000 lease
principal payments of $374,000 were made by Andacollo and the
Company repaid the remaining principal balance of the project
loan from restricted cash balances. Overall, the cash balances
increased by $50,000 during the first quarter of 2000.
At the end of March 2001 the company had $3.7 million of
unrestricted cash and $2.8 million held in trust to fund the
closure and reclamation liabilities at Denton-Rawhide. Working
capital was $ 9.4 million and the only debt apart from trade
payables was a loan payable to a related party. The principal on
this loan is repayable from 25% of the net cash flow from the
Denton-Rawhide Mine.
For 2001 the Company is anticipating its share of the metal
production at the Denton-Rawhide Mine to be approximately 49,200
ounces of gold and 466,500 ounces of silver at an estimated cash
production cost of $215 per ounce net of silver credits.
DAYTON MINING CORPORATION
Consolidated Balance Sheets
in thousands of US dollars
Mar 31 Dec 31
2001 2000
-------------------------
(unaudited) (audited)
Assets
Current assets
Cash and short term investments 3,669 4,396
Investments in marketable securities 175 175
Other receivables 155 196
Inventories 7,810 7,676
-------------------------
11,809 12,443
Property, plant and equipment 12,701 13,341
Closure fund (note 3) 2,752 2,769
Other assets -- 10
-------------------------
27,262 28,563
=========================
Liabilities
Current liabilities
Accounts payable and accrued
liabilities 2,360 2,578
Loan payable to a related party 1,849 1,849
Accrued closure costs 3,767 3,767
-------------------------
7,976 8,194
-------------------------
Shareholders' Equity
Share capital 53,810 53,810
Deficit (34,524) (33,441)
-------------------------
19,286 20,369
-------------------------
27,262 28,563
=========================
DAYTON MINING CORPORATION
Consolidated Income Statements
in thousands of US dollars
(unaudited)
Three months Three months
ended ended
Mar 31, 2001 Mar 31, 2000
----------------------------
Revenues (note 1& 4) 2,997 7,369
----------------------------
Cost of sales
Operating costs 3,079 7,113
Depreciation, depletion and
amortization 673 1,260
----------------------------
3,752 8,373
----------------------------
Operating loss (note 1) (755) (1,004)
----------------------------
Expenses
Exploration 236 316
Foreign exchange 19 246
General and administrative 146 483
Interest expense (36) 186
Interest income (37) (34)
----------------------------
328 1,197
----------------------------
Net income (loss) for the period (1,083) (2,201)
============================
Per share:
Net loss per share (note 2) (0.03) (0.13)
DAYTON MINING CORPORATION
Consolidated Statements of Cash Flow
in thousands of US dollars
(unaudited)
Three months Three months
ended ended
Mar 31, 2001 Mar 31, 2000
----------------------------
Net income (loss) for the period (1,083) (2,201)
Depletion, depreciation and
amortization 673 1,260
Foreign exchange loss 116 10
Closure fund valuation adjustment 17 --
Amortization of other assets -- 6
----------------------------
Cash flow from operations (277) (925)
Bullion settlements receivable -- 1,339
Other receivables 41 135
Inventories (134) (509)
Accounts payable (218) 490
Deferred revenue -- 424
Accrued closure costs -- 167
----------------------------
Cash flow provided by operating
activities (588) 1,121
----------------------------
INVESTING ACTIVITIES
Purchases of property, plant and
equipment (23) (119)
Deferred stripping -- (250)
Other assets -- (239)
----------------------------
Cash flow used for investing
activities (23) (608)
----------------------------
FINANCING ACTIVITIES
Issuance of share capital -- 21
Issuance of special warrants -- 5,859
Restricted cash -- (4,292)
Principal repayments of
bank loan -- (1,667)
Principal repayments of
capital lease -- (374)
----------------------------
Cash flow used for financing
activities -- (453)
----------------------------
FOREIGN EXCHANGE (116) (10)
----------------------------
Net increase (decrease) in cash (727) 50
Cash and cash equivalents,
beginning of period 4,396 3,669
----------------------------
Cash and cash equivalents,
end of period 3,669 3,719
============================
DAYTON MINING CORPORATION
Notes to the Interim Consolidated Financial Statements at March
31 all financial figures stated in thousands of US Dollars
1. Nature of Operations and Basis of Presentation
The Company is involved in the exploration, development and
operation of gold properties. Operating figures for the three
months ended March 31, 2001 present results only for the
Company's 49% joint venture interest in the Denton-Rawhide Mine
which was acquired on April 1, 2000 while operating figures for
the three months ended March 31, 2000 present results only for
the Andacollo Gold Mine which was permanently closed and
deconsolidated in December 2000.
Basis of Presentation
The accompanying interim consolidated financial statements have
been prepared following the same accounting policies and their
method of application as those used for the annual financial
statements contained in the Company's December 31, 2000 annual
report with the following exceptions:
a) Disclosure:
Full and complete disclosure of accounting policies and their
method of application are not included in these notes. Reference
should be made to the audited consolidated financial statements
contained in the Company's December 31, 2000 annual report for
full and complete disclosure.
b) Revenue Recognition
The Company, effective January 1, 2001 has changed its revenue
recognition policy from recognizing sales revenue based on the
spot prices existing when metals are available for sale to
recognizing sales revenue when the price has been fixed and title
to the metal has transferred to a buyer. This change in
accounting policy has resulted in a small deferral of sales
revenues and bullion receivables to closing inventories.
2. Loss per Share
Prior year per share figures have been restated for comparative
purposes to conform to post consolidated shares outstanding.
3. Closure Fund
The value to the closure trust fund held as collateral for future
estimated reclamation and severance obligations is recorded at
the lower of cost or net realizeable value.
4. Segmented Information
The Company operates in one business segment, namely; gold mining
with its sole producing asset being a 49% joint venture interest
in a gold mine in Nevada, USA(acquired April 1, 2000),
exploration activities in El Salvador(commencing April 6, 2000)
and administrative offices in Canada. There has been no material
change in segmented assets from those disclosed in the Company's
annual consolidated financial statements contained in the
Company's December 31, 2000 annual report.
Three months ended
Mar 31,2001 Mar 31,2000
------------------------
Revenue, excluding interest income
USA $2,997 $ --
El Salvador -- --
Canada -- --
Chile -- 7,369
------------------------
Total $2,997 $7,369
========================
Net (loss) for the period
USA $ (777) $ --
El Salvador (214) --
Canada (92) (487)
Chile -- (1,714)
------------------------
Total $ (1,083) $(2,201)
========================
5. Management Discussion and Analysis of Financial Condition and
Results of Operations Management's discussion and analysis of the
Company's results as reported in the attached interim financial
statements are contained in the Company's May 25, 2001 Press
Release reporting on the results for the quarter ending March 31,
2001.
MORGAN IMPRESORES: El Mercurio Seen Closing Purchase
----------------------------------------------------
Struggling to avoid bankruptcy since mid 2000, printing company
Morgan Impresores is about to be acquired. Newspaper company El
Mercurio, controlled by the Edwards family, is close to making a
deal South American Business Information revealed last week.
Morgan Impresores is controlled by Darby Investment (35 percent),
Banta Corp (30 percent), Juan Pablo Morgan (25 percent), and the
investment fund Estrella Americana. Morgan has debts of US$45
million, and the new buyers would settle some US$12 million of
the total.
Morgan exports to more then 20 countries. Its international
customers are Argentina, Brazil, Mexico, and the United States,
and it has subsidiaries in most of these countries. The company
competes with the printing companies Antarctica-Qubecor, and
Cochrane.
===========
M E X I C O
===========
AEROMEXICO: Seeks Intervention In Dispute With Flight Attendants
----------------------------------------------------------------
Aeromexico wants the Mexican Employment and Social Security
ministry to act as arbitrator in a conflict with ASSA over
alleged violations committed by the airline in its collective
contract with flight attendants, Reforma/Infolatina reported
Tuesday. The dispute has already worsened the ongoing wage
negotiations between Aeromexico and ASSA. Now the airline fears
flight attendants might lodge a strike May 31, as they have
threatened, unless both the contract-violation allegations and
the union's wage demands are resolved first. Over the past
weekend and again on Monday ASSA rejected a 6.5-percent wage
increase offered to flight attendants by Aeromexico management.
AEROMEXICO/MEXICANA: 1Q01 Losses Blamed On U.S. Economic Slowdown
-----------------------------------------------------------------
The Mexican National Air Transport Industry Chamber (Canaero)
says the combined $46 million loss of leading Mexican airlines
Aeromexico and Mexicana is largely a result of the U.S. economic
slowdown. Reforma/Infolatina's Tuesday report indicated
Aeromexico lost $33 million during the first three months of the
year, while Mexicana lost $13 million. The effects of a slump in
demand were compounded for the two carriers by the temporary
closure of one of Mexico City International Airport's two runways
on March 19-30. The runway closure cost the airlines an estimated
$1 million daily because of flight cancellations and delays.
Canaero further revealed that, aside from an estimated 2.5-
percent contraction in demand, the increased operating costs in
general and the current high price of jet fuel also contributed
to the airlines' first quarter performance.
AHMSA: Could Reach Accord With Creditors This Week
--------------------------------------------------
Mexican steelmaker Altos Hornos de Mexico (AHMSA) reports that
senior executives have made major progress in negotiations with a
syndicate of banks over a plan to restructure its debts,
according to a Reforma/Infolatina report Tuesday. The progress
indicates that AHMSA, which is yet to lift a suspension of
payments declared more than two years ago, is likely to reach a
final accord with its bank creditors this week. Mexican state-run
development bank Banobras, which held out for months, has finally
agreed to support the plan.
Meanwhile, AHMSA holding company Grupo Acero del Norte (GAN)
reportedly is working on an agreement with its creditors, which
include West Merchant Bank and Societe General. While a small
group of GAN creditors are thought to be causing difficulties,
most are working closely with the company to reach an agreement.
CHRYSLER: Voluntarily Recalls Of Half A Million Neon-Model Cars
---------------------------------------------------------------
Struggling automaker Chrysler, the U.S. division of
DaimlerChrysler, announced a voluntary recall of more than
500,000 Dodge Neon 2000 and 2001 models suspected to have
defective brakes, including approximately 60,000 vehicles sold in
Mexico, Reforma/Infolatina reported Tuesday. The recall decision
was made after company engineers uncovered a systematic problem
in defective brake-system components that had been returned to
the company by service centers. However, there have been no
reported injuries related to the problem.
The engineers found out that over time contact with oil can cause
the hose to expand and loosen. The brakes remain operational but
it could need more pressure on the brake pedal to stop the car.
The company reportedly is slowly trying to phase out the Neon
model.
GRUPO PULSAR: Apolo Prudential Wants Subsidiary
-----------------------------------------------
Mexican fund manager Apolo Prudential is looking to take
advantage of Monterrey-based conglomerate Grupo Pulsar's ongoing
debt-restructuring process by acquiring its subsidiary Mexico
City brokerage and fund manager Vector, Reforma/Infolatina said
Monday. Grupo Pulsar was forced to restructure its debts mainly
because of its agro-biotechnology subsidiary Savia's estimated
liabilities of $1.7 billion.
Apolo Prudential, headed by Manuel Samoza, previously approached
Pulsar regarding the possible acquisition. Price is again
expected to be a sticking point for any potential deal, as Vector
has major holdings in Savia-issued paper and what many regard as
an overblown payroll and branch network in current market
conditions.
Apolo reportedly wants to further its long-standing ambitions to
expand out of fund management into banking and stock brokering.
MAXCOM TELECOMUNICACIONES: Announces Appointment of CFO
-------------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V. today announced that Lic.
Eloisa Martinez will join the Company on June 1, 2001 as Chief
Financial Officer.
Mrs. Martinez brings to Maxcom 23 years of professional
experience in finance, most recently as Financial Planning and
Control Director at Grupo Iusacell, where, for the last 4 years,
was key to the successful growth of the business in different
areas such as financial planning, budget control and financial
evaluation. Previously, Mrs. Martinez worked for 12 years at IBM
Corporation in Mexico and the U.S., where she had an outstanding
performance in positions such as Controller, Internal Audit
Manager, Corporate Internal Auditor, and Business Control &
Planning Analyst.
"We are pleased to have Eloisa join Maxcom. She and I worked
together in the past and I believe her unique financial
experience and telecommunications expertise perfectly fits
Maxcom's current and future developments in this strategic side
of the business," said Fulvio Del Valle, President and Chief
Executive Officer.
Mrs. Martinez holds a Bachelor degree in Business Administration
from the Instituto Politecnico Nacional in Mexico City, and a
Master degree in Business Administration from the Instituto
Tecnologico de Estudios Superiores de Monterrey. Currently, she
is in the process of obtaining a High Level Management Post-
degree from the Instituto Panamericano de Alta Direccion de
Empresa in Mexico City.
Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to small- and medium-sized businesses and high-end residential
customers in Mexico City and Puebla. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance and data services. In March 2000 the Company issued US
$300 million in 13.75% notes due 2007. Maxcom reported a net loss
of Ps$198.8 million in the first quarter of this year as compared
to Ps$89.9 million in the same year-ago period.
=================
V E N E Z U E L A
=================
SIDOR: Must Carry On Transformation Process, CEO Says
-----------------------------------------------------
Sidor's CEO, Martin Berardi, urged that the Venezuelan integrated
steelmaker must continue growing, in line with its medium-term
plan despite being battered by 20-day strike, Business News
Americas reported Tuesday. Berardi admitted it wouldn't be easy
to assess the consequences of the strike considering that its
impact goes beyond purely economic, and that it requires everyone
to work together as a team to continue building the future of
Sidor. Management believes that the cost of the collective
contract presented by the Sutiss labor union grouping, and
finally agreed to by the company, surpassed US$200 million. The
stoppage cost Sidor an estimated US$52.3 million in lost sales.
In addition, the cost of Sutiss' initial offer to postpone the
contract was US$35 million, and the cost of the agreement reached
US$12.3 million.
"We must not give up on the project to transform Sidor, which is
essential in order to achieve a space in this increasingly
competitive world in which we live," Berardi said.
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Janice Mendoza, Editors.
Copyright 2001. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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contact Christopher Beard at 301/951-6400.
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