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/raid1/www/Hosts/bankrupt/TCRLA_Public/010907.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 Friday, September 07, 2001, Vol. 2, Issue 175 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: Pellegrini Still Interested As A Buyer SIDERAR: Announces Fiscal YE Results; Lower Sales And EBITDA B R A Z I L PSINET: Company Profile TRANSBRASIL: Facing Potential Roadblock From Airports C O L O M B I A SEVEN SEAS: Reports Drilling And Operations For Tres Pasos M E X I C O GRUPO TELEVISA: Expects Radiopolis Profits Pending Merger Ruling LTV CORP.: Company Profile MAXCOM TELECOMUNICACIONES: Improving Despite Slow Economy PEMEX: Consultant Concludes Technologies `Behind The Times' PEMEX: Wastes Money On Unviable Project Scheme SINGER N.V.: 2Q and Six-month Results Show Better Profitability P A R A G U A Y ORION/UNION: US$14M Repatriation Proceedings About To Start - - - - - - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: Pellegrini Still Interested As A Buyer ------------------------------------------------------------- Juan Carlos Pellegrini reaffirmed his interest in acquiring the ailing Sociedad Estatal de Participaciones Industriales unit Aerolineas Argentinas in which he was a former chief executive, AFX-Europe reported Wednesday. Earlier reports stated that Pellegrini does not plan to lay off staff. In fact, employees would receive 20 percent of Aerolineas' equity under the terms of his proposed agreement. In addition, Pellegrini's plan includes an deal with Airbus Industrie and Boeing Co to upgrade Aerolineas' fleet and provide more cost-efficient aircraft. SIDERAR: Announces Fiscal YE Results; Lower Sales And EBITDA ------------------------------------------------------------ In a company press release, Siderar S.A.I.C. (BCBA: ERAR), announced Monday its results for Fiscal Year ended June 30, 2001. Highlights * Reduction of Gross margin from 21.7% for FY00 to 18.8% for FY01, due to higher exports and lower international steel prices. * 3.1% increase in total shipments. Record export shipments of 1,127.6 thousand tons. * Impact of doubtful account provisions of Ps. 17.7 million and extraordinary reestructuring costs of Ps. 7.0 in FY01. * 29.3% reduction in Equity Loss yoy, given the lower losses recorded by Sidor. * Net Financial Debt reduction of Ps. 42.1 million as Liquidity Reserve increased by Ps 84.4. Siderar recorded a consolidated Net Loss of Ps. 32.3 million for the Fiscal Year ended June 30, 2001 (FY01) compared to Net Income of Ps. 1.4 million posted for Fiscal Year 2000 (FY00). Earnings per share (EPS) and per ADS were Ps. (0.0930) and Ps. (0.7443) respectively based on a total of 347,468,771 shares outstanding at June 30, 2001. Each ADS represents 8 (eight) class "A" shares. Higher shipments to the export market and the drop in international steel prices impacted negatively on Siderar's Gross Margin, which decreased from 21.7% during FY00 to 18.8% for the FY01. Overall sales volume increased 3.1% yoy and reached an amount of 2,151.2 thousand tons sold. Export shipments totaled 1,127.6 thousand tons, a record amount that represented a 18.3% increase over last FY figures. This improvement was partially offset by a reduction in export average prices. Domestic market shipments decreased 9.7% compared to those of FY00, due to a lower level of activity in steel consuming sectors. Average cost per ton decreased 3.3% (12 Ps./ton) in comparison with the previous FY. Selling expenses increased Ps. 13.4 million mainly due to an increase in doubtful account provisions in order to reflect the credit risk situation of some clients. Given the reduction in gross margin and the increase in selling expenses, EBITDA margin decreased from 19.2% for FY00 tos 15.2% FY01. EBITDA for FY01 was Ps. 139.9 million. The lower losses recorded by Sidor impacted positively on the equity loss recorded during FY01, which was Ps. 19.4 million, an amount 29.3% lower than that recorded for FY00. During FY01, the Company carried out a restructuring plan which implied extraordinary expenses of Ps. 7.0 million. The structure costs reduction obtained by this plan should be reflected in next Fiscal Year. Net Financial debt was reduced 8.3%, (from Ps.506.8 million for FY00 to Ps.464.7 million for FY01) as the Company increased its Cash and Other Current Investments by Ps. 84.4 million. =========== B R A Z I L =========== PSINET: Company Profile -------------------------------- NAME: PSINet Inc. 44983 Knoll Square Ashburn, VA 20147 TELEPHONE: (703) 726-4100 EMAIL: investor-relations@psi.com WEBSITE: http://www.psinet.com TYPE OF BUSINESS: PSINet Inc. is a provider of Internet and e- commerce solutions to businesses. The Company offers an integrated suite of value-added products that enables its customers to use the Internet for mission-critical applications. The Company provides corporate Internet access and private networks, including dedicated and dial- up Internet access; Web hosting, co-location and managed security; consulting solutions; and voice, fax and other audio-video products and applications. SIC: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] EMPLOYEES: 5,000 (last reported count) TOTAL ASSETS: US$2,577,100,000 (as of 12/31/00) TOTAL LIABILITIES: US$4,599,300,000 (as of 12/31/00) TRIGGER EVENT: PSINet Inc. ("the Company" ) (OTC BB: PSIXE) and 24 of its operating subsidiaries in the U.S. have voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York in June this year. Four Canadian subsidiaries also have filed for protection under the Companies' Creditors Arrangement Act ("CCAA") statutes, enacted in Canada in 1985, in the Ontario Superior Court of Justice. But the filing didn't include the businesses and operations of PSINet's operating subsidiaries in Asia, Europe, Latin America or the Company's Metamor consulting business. Prior to the filing, the Company announced that its cash, cash equivalents, short-term investments and marketable securities were not expected to be sufficient to meet the Company's anticipated cash needs. CHAIRMAN: Ian Sharp PRES/CEO/DIRECTOR: Harry Hobbs INVESTMENT BANKER/RESTRUCTURING ADVISOR: Dresdner Kleinwort Wasserstein NEW YORK OFFICE: 75 Wall Street New York NY 10005-2889 United States Tel (+1) 212 429 2000 Fax (+1) 212 429 2127 LATIN AMERICAN OFFICE: Bosque de Alisos No 47-B 4th Floor Col Bosques de las Lomas 05120 Mexico, DF Tel (+52) 5 258 3000 Fax (+52) 5 258 3100 PSINet Contacts: Jim Lucas Sandra Sternberg Jason Thompson Daniel Kim The Abernathy MacGregor Group Tel: 703-726-1668 (PSINet Worldwide Headquarters) Tel: 213-630-6550 or 212-371-5999 (After June 1, 2001) Last TCRLA Headline DATE: Wednesday, Sep. 05, 2001, Vol. 2, Issue 173 TRANSBRASIL: Facing Potential Roadblock From Airports ----------------------------------------------------- Infraero is looking to block Transbrasil from operating in the airports it manages. The Brazilian air transportation company now finds itself in hot water due to the R$9.2-million owed to Infrarero including passengers' board rate, landing and staying of the aircrafts in between July and August, O Globo reported Wednesday. Infraero demanded the suspension of Transbrasil aircraft due to the non-payment of the debt but an injunction allowed the carrier to use the facilities. Transbrasil, on the other hand, does not recognize the R$9.2-million debt as valid, claiming it has already paid R$164,000 in fees. =============== C O L O M B I A =============== SEVEN SEAS: Reports Drilling And Operations For Tres Pasos ---------------------------------------------------------- Seven Seas Petroleum Inc. (Amex: SEV) announced Wednesday that it has completed drilling of the Tres Pasos 5-W to a total measured depth of 8,262 feet. Drilling took longer than anticipated due to an adjustment in the angle and direction of the wellbore to intersect the Cimarrona formation at the optimal location. The Company will report results after production testing is completed. The Company also reported that Guaduas Oil Field production continues at a gross rate of approximately 7,000 barrels per day (approximately 3,200 barrels per day net to Seven Seas). Seven Seas Petroleum Inc. is an independent oil and gas exploration and production company operating in Colombia, South America. The Company's primary emphasis is on further exploration, development and production of the Guaduas Oil Field, located in Colombia's prolific Magdalena Basin. =========== M E X I C O =========== GRUPO TELEVISA: Expects Radiopolis Profits Pending Merger Ruling ---------------------------------------------------------------- Televisa Vice President of Finances Alfonso de Angoitia affirmed that merger plans between Radiopolis and Grupo Acir are still intact, Mexico City daily Reforma reported Wednesday. But while it awaits the decision of the court regarding the proposed merger, Televisa seeks for support for Radiopolis, the company's radio division, which is currently in financial difficulties. Televisa, in the midterm, wants to turn Radiopolis into a profitable business with the help of an operator. According to the Mexican Stock Exchange (BMV), Radiopolis registered an operating loss of 62,000 pesos due to low sales resulting from the nation's economic slowdown. LTV CORP.: Company Profile -------------------------- NAME: LTV CORPORATION 200 Public Square Cleveland, OH 44114 TELEPHONE: (216) 622-5000 FAX: (216) 622-1066 WEBSITE: http://www.ltvsteel.com EMAIL: fcibrone@ltvsteel.com EMPLOYEES: 16,500 - (last reported count) TYPE OF BUSINESS: LTV Corporation is a domestic integrated steel producer; a producer of mechanical and structural steel tubing products; a producer of bimetallic wire products; and a manufacturer of pre-engineered metal buildings systems. SIC: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] TOTAL CURRENT ASSETS: $1,332,000,000 (six months ended June 30, 2001) TOTAL CURRENT LIABILITIES: $958,000,000 (six months ended June 30, 2001) TRIGGER EVENT: In December 2000, LTV Corporation and 48 of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. In its petitions, filed in the U.S. Bankruptcy Court in the Northern District of Ohio, Eastern Division in Youngstown, LTV attributed the need to reorganize to a weakening U.S. economy and the inaction of the government in enforcing long-established U.S. trade laws. LTV said that unfairly priced imports have driven steel prices to 20-year lows. PUBLIC SECURITIES: 104,681,331 shares of common stock (as of June 30, 2001) CHAIRMAN/PRESIDENT/CEO: William H. Bricker CFO/Sr. VP: Thomas Garrett, Jr. Sr. VP/GEN.COUNSEL/SEC.: Glenn Moran LAST TCR-LA HEADLINE DATE: Thursday, Sep. 06, 2001, Vol. 2, Issue 174 MAXCOM TELECOMUNICACIONES: Improving Despite Slow Economy --------------------------------------------------------- In a company press release, Maxcom issued the following operational metrics update: * Maxcom reacts favorably to overcome the Mexican Economy slow down * Achieved 10,700 installed lines * Sold more than 17,100 lines * Disconnection percentage continues improving Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based telecommunications provider (CLEC) using a "smart build" approach to focus on small- and medium-sized businesses and residential customers in Mexico City and Puebla, announced Wednesday its August 2001 operational metrics. "We were able not only to maintain but to improve our growth rates and exceed our operational targets by focusing on the market segments where the recession has impacted the less. We recognize the difficult situation that most businesses are undergoing in Mexico, but we are anticipating an earlier recovery of the SMEs, which continues to be out target market," said Fulvio Del Valle, President and Chief Executive Officer. 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 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. Jan01 Feb01 Mar01 Apr01 May01 Jun02 Jul01 Aug01 Construction 436 1,650 589 3,220 6,860 9,150 14,560 23,334 Order entry 3,105 3,751 3,161 3,756 3,561 6,026 8,588 17,178 Installation 1,806 2,125 2,093 1,725 3,367 5,890 6,437 10,686 Disconnection1,382 1,521 1,679 2,387 1,500 2,242 1,720 1,728 Lines in service (EOP) 27,334 27,938 28,352 27,670 29,557 33,205 37,922 46,880 Business lines 64% 62% 60% 57% 55% 47% 45% 40% Residential lines 36% 38% 40% 43% 45% 53% 55% 60% Lines sold Per sales rep 22 28 25 31 32 44 44 66 Customers11,822 12,695 13,208 13,818 14,259 18,653 20,908 25,909 Changes versus Jul01 1H01 avg Construction 60% 539% Order entry 100% 341% Installation 66% 277% Disconnection 0% -3% Lines in service 24% 62% (EOP) Business lines -11% -31% Residential lines 9% 42% Lines sold per Sales rep 49% 117% Customers 24% 84% For more information contact: MAXCOM TELECOMUNICACIONES, S.A. DE C.V. Mexico City, Mexico Jose-Antonio Solbes (525) 147-1125 investor.relations@maxcom.com.mx PEMEX: Consultant Concludes Technologies `Behind The Times' ------------------------------------------------------------ Following a five-month investigation into state-owned oil monopoly Petroleos Mexicanos (Pemex), U.S. consulting firm Arthur D. Little International found out that the Mexican company is experiencing a technological crisis that puts it behind the main transnational companies with which it competes, Mexico City daily El Universal revealed Wednesday. According to the consulting firm, which was contracted to evaluate Pemex's technology, Pemex's main activities, exploration and production, are technology behind the times because of the tendency of its executives to acquire "old" technologies. Cited in particular is its subsidiary Pemex Exploration and Production. Pemex recently warned that it could face `collapse' unless it gets more private money. The company requires investments of $33 billion in production and exploration for oil and gas in the next five years. In addition, Pemex needs about $20 billion to upgrade its refining system, and $1 billion to boost its petrochemical output, which has fallen to just over one-half of what it was five years ago. PEMEX: Wastes Money On Unviable Project Scheme ---------------------------------------------- Despite the federal government's warning that the Pidiregas scheme is no longer viable for investments in the energy sector, Petroleos Mexicanos (Pemex) has spent 21.629 billion pesos on projects under Pidiregas so far this year, Mexico City daily El Universal reported Wednesday. According to the Energy Ministry, Pemex exploration and production projects absorbed 64.6 percent of those resources, and the rest went into the reconfiguration and modernization of the National Refinery System. Energy Minister Ernesto Martens revealed that Pemex was authorized 56.868 billion pesos for strategic projects to be financed through Pidiregas in the 2001 federal budget. This year Pemex is set to receive 35.676 billion dollars from the federal government, 5.1 percent more than the previous year. SINGER N.V.: 2Q and Six-month Results Show Better Profitability --------------------------------------------------------------- In a company press release, Singer N.V. ("Singer" or the "Company") announced Wednesday its results for the second quarter of 2001 and for the six months ended June 30, 2001. 2001 Second Quarter Results For the second quarter of 2001, ending June 30, Singer reported consolidated revenues of $110.5 million. Revenues of Singer's 48 percent-owned Thailand affiliate, which amounted to $23.9 million for the quarter, are not included in this total. Gross profit for the quarter was $43.3 million, representing a gross margin of 39 percent on sales. Operating income for the period was $9.4 million; EBITDA (earnings before interest, taxes, depreciation and amortization) was $15.6 million. The Company's net income for the second quarter of 2001 was $4.0 million. Included in operating income and net income for the quarter is $1.2 million of expense relating to the amortization of intangible assets, primarily the Singer trademark. Effective January 1, 2002, the Company expects to adopt the accounting standard, FASB 142, accounting for "Goodwill and Other Intangible Assets", pursuant to which Singer will no longer amortize the value of the trademark and most other intangible assets, reducing amortization expense by about $1.2 million per quarter subject, however, to any periodic adjustments which may be appropriate to assure that the book value of the Company's intangible assets reflect their fair value. Singer's retail and related consumer credit operations accounted for 71 percent of the Company's second quarter revenues (taking into account the revenues of its non-consolidated affiliate in Thailand) and 60 percent of operating earnings before Corporate costs, eliminations and amortization of intangibles. Particularly strong contributors to this segment were the retailing businesses in Mexico, Thailand and Sri Lanka. The Company's sewing business accounted for 29 percent of Singer's second quarter revenues and 40 percent of operating income. Sewing manufacturing and marketing operations in Brazil were especially strong contributors to this segment. The Company's results for the second quarter of 2001 were hurt by the impact on the local sewing operation of the continuing economic crisis in Turkey. Financial statements of Singer's predecessor company are not comparable to Singer's ongoing results and are not, therefore, presented or discussed herein. 2001 Six-Month Results For the six months ending June 30, 2001, the Company reported consolidated revenues of $217.6 million. Revenues of Singer's non-consolidated affiliate in Thailand accounted for an additional $46.6 million. Gross profit for the six-month period was $84.2 million, representing a gross margin of 39 percent on sales. Operating profit for the six-month period was $16.2 million; EBITDA was $27.7 million. The Company's net income for the first six-months of 2001 was $4.1 million. Expense relating to amortization of intangible assets totaled $2.4 million for the six-month period. Continued Profitability Mr. Stephen H. Goodman, Singer N.V.'s President and CEO noted that, "We are very encouraged by the results reported for the second quarter and for the first half of 2001. The second quarter represents the third consecutive quarter of profitability since the conclusion of the successful Chapter 11 Reorganization in September 2000. Singer has returned to profitability following four years of very substantial losses at its predecessor company. Despite continuing economic uncertainties in many of the markets in which the Company operates, Singer made substantial progress in the second quarter; revenues grew 3.1 percent from the previous quarter and gross, operating and net margins all showed increases. We continue to have confidence that the consistent execution of our recovery plan will result in continued improving performance for the balance of 2001." Share Distribution The Company now anticipates that an initial distribution of the common shares of Singer N.V. to the holders of allowed, general unsecured claims against Singer's predecessor company should take place later this month or early next month. It is not anticipated that the Company's common shares will be listed on any U.S. or overseas securities exchange, the NASDAQ National Market System, the NASDAQ Small Cap Market, the OTC Bulletin Board or a similar trading system in the near future. The Company anticipates, however, that one or more brokerage firms will seek to make a market for the newly distributed common shares through the "Pink Sheets" quotation system. Singer's objective is for brokers and market makers to provide quotations for the Company's common shares using the "Pink Sheets" service at the time of, or shortly after, the distribution of the common shares; however, no assurances can be given as to approval by the NASD of the common shares for quotation on the "Pink Sheets" system or the timing of the commencement of any such trading or as to the effectiveness of such trading should it commence. About Singer N.V. Effective September 2000, as a result of the successful Chapter 11 reorganization, Singer became the parent of several operating companies formerly owned by The Singer Company N.V., as well as acquiring ownership of the SINGER brand name, one of the most widely recognized and respected trademarks in the world. Through its operating companies, Singer is engaged in two principal businesses, retail and sewing. The retail business consists primarily of the retail distribution of a wide variety of consumer durable products for the home in selected emerging markets, primarily in Asia, Mexico and the Caribbean. Retail sales activities in these markets are strengthened by the availability to customers of consumer credit services provided by the Company. In many of the markets where it operates, Singer is recognized as a leading retailer of products for the home. The sewing business consists primarily of the distribution of consumer and artisan sewing machines and accessories, produced by Singer and certain third-party manufacturers, through distribution channels operated by its sewing operating companies and through third-party distributors and dealers, as well as through the operating companies which operate Singer's retail business. Singer is the world's leading seller of consumer and artisan sewing machines, with an estimated worldwide unit market share of approximately 29 percent (excluding China, the former Soviet Republics and Eastern European countries). To see company's financial statement: http://www.bankrupt.com/misc/Singer_NV.pdf CONTACT: Singer N.V. Barbara Wybraniec, 917/534-5373 =============== P A R A G U A Y =============== ORION/UNION: US$14M Repatriation Proceedings About To Start ----------------------------------------------------------- A Paraguayan Central Bank spokesperson disclosed that repatriation proceedings regarding the US$14 million that was diverted from intervened Paraguayan banks Orion and Union into US bank accounts is about to begin, Business News Americas reported Wednesday. The Central Bank says it is going to instruct its U.S.-based legal team to initiate the proceedings. The unexplained disappearance of millions of dollars led to the sacking of then banking regulator Carlos Pecci, as well as the resignation of Central Bank chairman Washington Aswell. Pecci, together with the brother of Paraguay's President Jose Ignacio Gonzalez Macci and seven other public sector officials, are still under investigation by the attorney general's office, for their alleged involvement in the incident. Pecci and one former Central Bank board member are under arrest awaiting the results of the investigation. The attorney general's office was due to file charges on October 2, but requested a six- month extension to April 2, 2002. 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 and Edem Psamathe P. Alfeche, Editors. Copyright 2001. 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 301/951-6400. * * * End of Transmission * * *