/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/010913.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, September 13, 2001, Vol. 2, Issue 179 Headlines * A R G E N T I N A * BALCARCE: Five Banks Take Over Operations EPEC: Fenosa One of Finalists in Impending Privatization * B R A Z I L * INEPAR: Welcomes New CEO TELEMAR: Evaluates Results on Stock Restructuring Offer TELESYSTEM INTERNATIONAL: Company Profile * C O L O M B I A * BANCAFE: Financial Strength Rating Upgraded by Moody's GRANAHORRAR: Fogafin to Entrust Fate to Investment Banker * H O N D U R A S * GEOMAQUE EXPLORATIONS: Company Profile * M E X I C O * GRUPO TELEVISA: Moody's Assigns Baa3 Rating to 10-Yr. Notes STEWART ENTERPRISES: Reports Third-Quarter 2001 Results * P E R U * SIDERPERU: Creditors Had Until Tuesday to Present Evidence ================= A R G E N T I N A ================= BALCARCE: Five Banks Take Over Operations ----------------------------------------- Five Argentine banks were expected to take over Monday the branches and service centers of Balcarce, a small bank, which has only US$20 million in deposits, Business News Americas reported Monday. These banks are Galicia, Sudameris, Credicoop, Nuevo Banco Industrial and San Luis. On Friday, authorities cleared these five banks to take over Balcarce's branches and service centers. Balcarce, earlier this month, was intervened by the Central bank due to lack of capital and accounting irregularities. Meanwhile, another local operator BBVA Banco Frances has been selected to head up Balcarce's liquidation process, in which Frances will recover loans and sell the defunct bank's assets. EPEC: Fenosa One of Finalists in Impending Privatization -------------------------------------------------------- Among the finalists to acquire parts of Argentinean power company Empresa Provincial de Electricidad de Cordoba (Epec) is Union Fenosa SA, Spain's third-largest utility, Bloomberg said Tuesday. Fenosa has units in various Latin American countries, but none in Argentina. The state of Cordoba hoped to get 1.13 billion euros ($1 billion) for the company's distribution and transport businesses, though it might have to accept as little as 678 million euros because of the economic recession in the South American country. Epec has a 40-percent share of the province's energy generation and distribution markets Other bidders include utilities AES Corp, Enron Corp., and Suez SA's Tractebel SA. =========== B R A Z I L =========== INEPAR: Welcomes New CEO ------------------------ Inepar SA Industria e Construcoes now has a new CEO in the person of Mr. Roberto Procopio Lima Neto, Gazeta Mercantil reported Monday. Mr. Lima Neto will replace Mr. Cesar Fiedler, and will be taking charge of the restructuring program developed by Inepar. Inepar recently had an issue of R$270 million in debentures approved by CVM (Comissao de Valores Mobiliarios). TELEMAR: Evaluates Results on Stock Restructuring Offer ------------------------------------------------------- Telemar revealed it was evaluating results of an offer to exchange shares of its 16 regional phone carriers for one stock, Reuters reported Tuesday. The company plans to present the results afterwards to the board on Wednesday before deciding on how to proceed. "We are still gathering the final numbers," said Roberto Terziani, Telemar's investor relations' officer. In June, Telemar announced a plan to fold the regional phone carriers into one company under the roof of Telerj, its Rio de Janeiro operator. Telemar would then de-list the separate units and launch Telerj as a new stock. Telemar also reserved the right to cancel the share-swap offer for some or all of the units if too many investors opted to cash in their shares rather than swap them for Telerj stock. However, analysts expect many shareholders will accept the swap. If they do, the shake-up could produce a potentially popular new play on Brazil's Sao Paulo Stock Exchange Bovespa index, where Telemar is the top-weighted stock. "This gives shareholders the chance to exchange their stocks for a more liquid vehicle and receive a premium," said Andrew Campbell, an analyst at Credit Suisse First Boston in Sao Paulo. Buying Telerj would also allow investors to bet purely on the carrier's fixed-line operations while a Telemar stock would offer exposure to both wireline services and new mobile operations that Telemar is set to begin in 2002, analysts said. Telemar expects the restructuring to bring annual savings of between 40 million reais ($17 million) and 70 million reais ($30 million) through efficiency gains and tax benefits. Telemar said it would publicly announce the results of the offer later this week or early next week. TELESYSTEM INTERNATIONAL: Company Profile ----------------------------------------- NAME: Telesystem International Wireless, Inc. 1000 de La Gauchetiere St. W. 16th Floor, Montreal Quebec, H3B 4W5, Canada TELEPHONE: (514) 673-8497 FAX: (514) 673-8470 WEBSITE: http://www.tiw.ca EMAIL: bforcier@tiw.ca TYPE OF BUSINESS: Telesystem International Wireless Inc. develops, acquires, owns and operates wireless telecommunications networks in both developing and developed markets throughout the world. The Company currently has interests in cellular operations in Brazil, Romania, the Czech Republic and India, with 129.8 million licensed POPs; specialized mobile radio and digital enhanced SMR operations in the United Kingdom, France, Germany, Belgium, Luxembourg, Portugal and Spain, which together secure the largest SMR geographic coverage in Europe, with 223.6 million licensed POPs; and paging operations in Mexico with 99.3 million licensed POPs. SIC: RADIO TELEPHONE COMMUNICATIONS [4812] EMPLOYEES: 1,560 (last reported count) TOTAL ASSETS: US$ 2,748,400,000 (quarter ended June 30, 2001) TOTAL LIABILITIES: US$ 2,866,300,000 (quarter ended June 30, 2001) CHAIRMAN: Charles Sirois PRES./CEO: Bruno Ducharme CFO: Andre Gauthier Last TCRLA Headline DATE: Wednesday, September 12, 2001, Vol. 2, Issue 178 To see company's latest financial statements: http://www.bankrupt.com/misc/Telesystem.pdf For further information, contact: Telesystem International Wireless Inc. BENOIT FORCIER Tel: 514/673-8468 E-mail: bforcier@tiw.ca OR Telesystem International Wireless Inc. MARK BOUTET Tel: 514/673-8406 e-mail: mboutet@tiw.ca OR Telesystem International Wireless Inc. ANDRE GAUTHIER Tel: 514/673-8493 Email: agauthier@tiw.ca Website: www.tiw.ca =============== C O L O M B I A =============== BANCAFE: Financial Strength Rating Upgraded by Moody's ----------------------------------------------------- Moody's Investors Service upgraded Bancafe's E bank financial strength rating to E+ with a positive outlook, citing strong improvements in the bank's financial fundamentals, which have resulted from a well-managed pre-privatization restructuring. Moody's noted that the bank, which was intervened by the Colombian authorities in September 1999, has significantly scaled back its loan book as a result of a major clean up and low credit demand. This scaleback, coupled with the aggressive operational restructuring, has led to greatly improved financial fundamentals. Moody's also noted that the bank's financial strength rating is constrained by a difficult operating environment characterized by a weak economic recovery. This weak recovery, combined with a low yielding asset structure at the bank, will ensure that profitability will be challenged over the short term. In terms of the planned privatization, low investor appetite for Colombian assets may complicate any sale by the government. There is continued uncertainty as to the actual privatization process, primarily in regards to whom the eventual (if any) purchaser will be. Furthermore, Bancafe still has a weak mortgage loan book that accounts for about 44 percent of gross loans. As of June 30, 2001, Bancafe had total assets of $2.3 billion (unconsolidated). New York Gregory W. Bauer Managing Director Financial Institutions Group Moody's Investors Service JOURNALISTS: (212) 553-0376 SUBSCRIBERS: (212) 553-1653 New York Philip J. Guarco VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service JOURNALISTS: (212) 553-0376 SUBSCRIBERS: (212) 553-1653 GRANAHORRAR: Fogafin to Entrust Fate to Investment Banker --------------------------------------------------------- Hector Jose Cadena, director of the Colombian government's deposit insurance agency Fogafin, said that the agency would hire an investment bank to decide the fate of state-owned bank Granahorrar, Business News Americas reported Tuesday. Cadena described privatization-earmarked Granahorrar's case as slightly complicated because a large portion of its loan portfolio is made up of mortgage loans. According to him, the state bank has improved the quality of its loan portfolio in the last couple of months as a result of stricter measures against past-due debtors. =============== H O N D U R A S =============== GEOMAQUE EXPLORATIONS: Company Profile -------------------------------------- NAME: Geomaque Explorations, Ltd. EXECUTIVE OFFICE 181 University Avenue Suite 1210 Toronto, Ontario M5H 3M7 Telephone: (416) 956-7470 Fax: (416) 956-7471 E-Mail: Corporate: info@geomaque.com Exploration: exploration@geomaque.com HONDURAS ADMINISTRATIVE OFFICE Col. Trejo, 23 Avenida B Entre 12 & 11 Calles, #185 San Pedro Sula Cortez Honduras Telephone: (504) 550-1701 Fax: (504) 550-1141 VUELTAS DEL RIO MINE OFFICE Telephone: (504) 664-1148 Fax: (504) 664-1149 TYPE OF BUSINESS: Geomaque Explorations Ltd. is an international mining company committed to growth through exploration and development of palladium and gold projects in the Americas. The company produces gold from its Vueltas del Rio Mine in Honduras and San Francisco Mine in Mexico, and is developing the Marathon Palladium Project in Ontario, Canada. TRIGGER EVENT: In late August, the company's Vueltas del Rio gold mine in Honduras deferred payments to several of its creditors because of financial difficulties. In addition, the company requested and received a deferral of payments totaling US$850,000, which were required to be made into the sinking fund. The payments are scheduled to be made during the remainder of this year. CEO/PRESIDENT: John H. Paterson VICE-PRESIDENT, EXPLORATION: Phillip C. Walford GENERAL MANAGER, SAN FRANCISCO AND VUELTAS DEL RIO MINES: Toren K. Olson GENERAL MANAGER, ADMINISTRATION, HONDURAS: Roberto Dala Last TCRLA Headline DATE: Wednesday, September 12, 2001, Vol. 2, Issue 178 To see company's latest financial statements: http://www.bankrupt.com/misc/Geomaque_Explorations.pdf =========== M E X I C O =========== GRUPO TELEVISA: Moody's Assigns Baa3 Rating to 10-Yr. Notes ----------------------------------------------------------- Approximately US$1.2 Billion of Debt Securities Affected. Moody's Investors Service has assigned a Baa3 rating to Grupo Televisa, S.A.'s $300 million 10-year senior unsecured notes due 2011 and has affirmed the company's existing credit ratings. The outlook is stable. Televisa's rating is supported by the company's dominant position in Mexico's broadcast media, leadership in Spanish language programming, and valuable content library. Televisa has made significant progress in reducing debt, cutting costs, and improving its credit profile over the last five years. Its rating is constrained by reliance on the advertising climate in Mexico, which is more volatile than the US, a cross currency asset and liability miss-match, and event risk surrounding the company's interest in expanding its presence in the US. Most of Televisa's debt obligations are denominated in US dollars while the majority of its revenues are peso denominated. Over the long run an expanded U.S. presence may improve its credit profile by increasing its dollar denominated revenues and offering diversity and stability, however the initial investment and execution risks constrain the rating in the interim. New York Robert Konefal Managing Director Corporate Finance Moody's Investors Service JOURNALISTS: (212) 553-0376 SUBSCRIBERS: (212) 553-1653 New York Glenn B. Eckert, CFA Vice President - Senior Analyst Corporate Finance Moody's Investors Service JOURNALISTS: (212) 553-0376 SUBSCRIBERS: (212) 553-1653 To see company's latest finacial statement: http://www.bankrupt.com/misc/Grupo_Televisa.pdf STEWART ENTERPRISES: Reports Third-Quarter 2001 Results ------------------------------------------------------- Stewart Enterprises, Inc. (Nasdaq NMS:STEI) announced Tuesday its results for the third quarter of fiscal year 2001. The Company implemented the Securities and Exchange Commission's Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" ("SAB 101") in the first quarter of fiscal year 2001, which resulted in changes to its methods of accounting for some of its preneed sales activities. For a detailed description of the effects of the implementation of SAB 101, see Note 2 of the Company's Form 10-Q for the quarter ended April 30, 2001 and Form 8-K dated March 14, 2001. The Company announced that earnings for the third quarter and nine months ended July 31, 2001, were $11.2 million and $44.6 million, or $0.10 and $0.42 per share, respectively, compared to pro forma earnings of $14.4 million and $47.6 million, or $0.13 and $0.45 per share, respectively, for the third quarter and nine months of 2000. Including the nonrecurring, noncash charges associated with the previously announced loss on assets held for sale and other charges and the early extinguishment of debt, the Company reported a net loss of $199.3 million for the third quarter of fiscal year 2001. Including these nonrecurring, noncash charges and the cumulative effect of the change in accounting principles, the net loss for the nine months of 2001 was $415.9 million. Total funeral revenues for the third quarter and nine months were $102.6 million and $317.9 million, respectively, compared to pro forma funeral revenues of $100.7 million and $324.4 million, respectively, for 2000. Total funeral revenues from the Company's operations to be retained were $71.4 million compared to pro forma $68.1 million in the third quarter of 2000, and through nine months, funeral revenues from operations to be retained were $225.8 million compared to pro forma revenues of $221.3 million for the first nine months of 2000. Total cemetery revenues for the third quarter and nine months were $63.1 million and $195.4 million, respectively, compared to pro forma cemetery revenues of $72.2 million and $219.2 million, respectively, for 2000. Total cemetery revenues from the Company's operations to be retained were $60.4 million compared to pro forma $68.0 million in the third quarter of 2000, and through nine months, cemetery revenues from operations to be retained were $188.5 million compared to pro forma revenues of $208.7 million for the first nine months of 2000. Brian J. Marlowe, Chief Operating Officer, commented, "Thus far this year, we have achieved about 97% of the cemetery property sales we expected. While our current strategy of moderating preneed activity has impacted our cemetery revenues this year, it is producing cash flows well above what we expected. We are still adjusting the dials as we try to find the right balance between cash flow and preneed sales, but we are pleased with our progress." For the third quarter and nine months ended July 31, 2001, the overall gross margins from the Company's operations to be retained were 21.9 percent and 25.2 percent, respectively, compared to pro forma 24.8 percent and 26.2 percent, respectively, for 2000. William E. Rowe, President and Chief Executive Officer, stated, "Our debt refinancing, completed on June 29th, is a milestone for this Company and the largest financing transaction in our history. The refinancing has reduced the debt maturing over the next two years from $700 million to $120 million, after the retirement of the $75 million asset sale term loan. We have also achieved about half of the $200 to $250 million in proceeds we expect to generate from foreign asset sales, and we have already received about $18 million of the $20 million in proceeds we plan to generate from the sale of other assets, primarily excess cemetery property and funeral home real estate. As of September 5, 2001, we had reduced our total debt by $215 million this fiscal year to $736 million, and we had cash on hand of approximately $45 million. We are very pleased to report such substantial progress in our initiatives." In conjunction with the refinancing, the Company incurred a previously announced after-tax charge of $5.5 million ($0.05 per share) in the quarter ending July 31, 2001, relating to the early extinguishment of debt. Founded in 1910, Stewart Enterprises is the third largest provider of products and services in the death care industry in the United States, currently owning and operating 545 funeral homes and 159 cemeteries in North America, South America, and Europe. Too see financial statements: http://www.bankrupt.com/misc/Stewart_Enterprises.pdf CONTACT: Stewart Enterprises Inc., Metairie Kenneth C. Budde, 504/837-5880 ======= P E R U ======= SIDERPERU: Creditors Had Until Tuesday to Present Evidence ---------------------------------------------------------- Creditors of Siderperu, the Peruvian steelmaker, which is in a form of bankruptcy protection, had until Tuesday to present evidence of what they claim is owed to them, Business News Americas said in a report. Siderperu has called a creditors' meeting for September 21 to redeem its financial obligations, analyze its steel bar supply agreement and review the protection status. The company, which is based in Chimbote on Peru's central coast and with a 520,000tpy liquid steel capacity, entered into bankruptcy protection mid-August to organize a complete refinancing. Following the August announcement, Lima-based credit-rating agency Apoyo & Asociados downgraded Siderperu's corporate bonds to local-rating C from AA-. *********** 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 * * *