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/raid1/www/Hosts/bankrupt/TCRLA_Public/011226.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 Wednesday, December 26, 2001, Vol. 2, Issue 251 Headlines A R G E N T I N A ACINDAR: Moody's Lowers Ratings Following Default CABLEVISION SA: Ratings Cuts After Argentina Currency Downgrade CAMUZZI GAS: Moody's Cuts Ratings; Outlook Is Stable COMPANIA DE RADIOCOMMUNICATIONES: Moody's Drops `Caa3' to `Ca' CTI HOLDINGS: Moody's Lowers Debt Rating To `Ca' From `Caa3' DISCO SA: Moody's Lowers Ratings On Foreign Currency Downgrade FARGO SA: Ratings Go To `Ca' from `Caa3' On $120M Senior Notes IMASAC S.A.: Foreign Currency Downgrade Prompts Debt Rating Cut IMPSA: Moody's Cuts Ratings To `Ca' From `Caa3' MASTELLONE HERMANOS: Moody's Drops Ratings To `Ca' from `Caa3' METROGAS SA: Moody's Lowers Ratings With Stable Outlook PAN AMERICAN: LT Foreign Debt Ratings Drop With Currency Woes PECOM ENERGIA: Moody's Cuts Ratings; Outlook Stable REPSOL YPF: Moody's Cuts Ratings On Rapid Economic Deterioration TELECOM ARGENTINA: Foreign Debt Downed To `Ca' From `Caa3' TRANSPORTADORA DE GAS: Moody's Lowers Ratings; Stable Outlook B O L I V I A CARACHIPAMPA: Still Facing Ambiguous Future B R A Z I L CELG: Future Disposition To Be Reconsidered In January EMBRAER: Wexford Exercises 8 ERJ 140 Options For Chautauqua Air TRANSBRASIL: Must Fly Again Within A Month To Retain License C H I L E DISPUTADA MINE: ExxonMobil Receives "Several" Takeover Bids E C U A D O R FILANBANCO: Banking Expert Explains Bank's Situation M E X I C O EMPRESAS ICA: Fitch Places Empresas ICA on Rating Watch Negative GRUPO MEXICO: SPCC's Recent Bond Issue Deemed Successful XEROX CORP.: Mexican Office Products Ops Xfered To Flextronics S T . L U C I A HYATT HOTELS: Receiver Appointed For Hyatt Regency St. Lucia - - - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Moody's Lowers Ratings Following Default ------------------------------------------------- Moody's Investors Service lowered the following ratings for Acindar Industria Argentina de Aceros S.A. (Acindar): - $100 million of 11.25% senior notes due 2004, to C from Caa3, - Senior implied rating, to C from Caa3, and - Senior unsecured issuer rating, to C from Caa3. The cuts follow an announcement by the Company that it was suspending principal and interest payments on its debt, including debt with local and foreign banks. The prolonged Argentine recession has taken its toll on Acindar's markets, finances, and access to capital. The Company will work on a restructuring proposal with its creditors while it continues operating. Acindar is the largest producer of non-flat steel products in Argentina. Its net sales for the twelve months ended June 30, 2001 were approximately Ps. 490 million. New York Michael Rowan Managing Director Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York Steven Oman VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 CABLEVISION SA: Ratings Cuts After Argentina Currency Downgrade --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of CableVision S.A. These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. The following ratings were affected: - Senior implied to Ca from Caa3 - Issuer rating to Ca from Caa3 - $250 million senior unsecured notes to Ca from Caa3 - $275 million senior unsecured bonds to Ca from Caa3 - $425 million Global MTNs to Ca from Caa3 CAMUZZI GAS: Moody's Cuts Ratings; Outlook Is Stable ---------------------------------------------------- Moody's Investors Service downgraded the Foreign Currency Issuer Ratings of Camuzzi Gas del Sur S.A. and Camuzzi Gas Pampeana S.A. to `Ca' from `Caa3.' These rating downgrades were made in conjunction with Moody's downgrade of Argentina's foreign currency ratings to Ca from Caa3. The rating outlook is stable. New York John Diaz Managing Director Corporate Finance Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York Alexandra S. Parker Senior Vice President Corporate Finance Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 COMPANIA DE RADIOCOMMUNICATIONES: Moody's Drops `Caa3' to `Ca' -------------------------------------------------------------- Moody's Investor Services has downgraded the long-term foreign currency debt rating of Compania de Radiocommunicationes Moviles S.A. to `Ca' from `Caa3.' The cut was made in conjunction with Moody's downgrade of the Republic of Argentina's sovereign cross border obligations to `Ca' from `Caa3.' The rating outlook is stable. New York Robert Konefal Managing Director Corporate Finance Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York Dennis Saputo Senior Vice President Corporate Finance Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 CTI HOLDINGS: Moody's Lowers Debt Rating To `Ca' From `Caa3' ------------------------------------------------------------ Moody's Investor Services has downgraded the long-term foreign currency debt rating of CTI Holdings S.A. to `Ca' from `Caa3.' The cut was taken in conjunction with Moody's downgrade of the Republic of Argentina's sovereign cross border obligations to `Ca' from `Caa3.' The rating outlook is stable. DISCO SA: Moody's Lowers Ratings On Foreign Currency Downgrade -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of Disco S.A. These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. The following ratings were affected: - $100 million 9.125% senior notes, due 2003, to Ca from Caa3 - $250 million 9.875% senior notes, due 2008, to Ca from Caa3 FARGO SA: Ratings Go To `Ca' from `Caa3' On $120M Senior Notes -------------------------------------------------------------- Moody's Investors Service downgraded Compania de Alimentos Fargo S.A.'s $120 million senior unsecured notes, due 2008, to `Ca' from `Caa3.' These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. Fargo SA is a bakery unit of Exxel group. IMASAC S.A.: Foreign Currency Downgrade Prompts Debt Rating Cut --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of IMASAC S.A. These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. The following ratings were affected: - Senior Implied to Ca from Caa3 - Issuer rating to Ca from Caa3 - $80 million senior unsecured global bonds, due 2005, to Ca from Caa3 IMPSA: Moody's Cuts Ratings To `Ca' From `Caa3' ----------------------------------------------- Moody's Investors Service downgraded the ratings of Industrias Metalurgicas Pescaroma SA (Impsa). These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. The following ratings were affected: - Senior Implied to Ca, from Caa3 - Issuer rating to Ca, from Caa3 - $150 million of aggregate 9.5% senior unsecured Global Notes, due 2002, to Ca, from Caa3 - Global MTN Program to Ca/Not Prime, from Caa3/Not Prime MASTELLONE HERMANOS: Moody's Drops Ratings To `Ca' from `Caa3' ------------------------------------------------------------- Moody's Investors Service downgraded the ratings of Mastellone Hermanos S.A. These rating actions follow the downgrade of Argentina's foreign currency ceiling to Ca from Caa3. The following ratings were affected: - Senior Implied to Ca from Caa3 - Issuer Rating to Ca from Caa3 - $225 million senior unsecured notes, due 2008, to Ca from Caa3 New York Michael Rowan Managing Director Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York Daniel Gates Senior Vice President Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 METROGAS SA: Moody's Lowers Ratings With Stable Outlook ------------------------------------------------------- Moody's Investors Service downgraded the Long Term Foreign Currency Debt Rating and Foreign Currency Issuer Rating of MetroGas S.A. to `Ca' from `Caa3.' The cuts were taken in conjunction with Moody's downgrade of Argentina's foreign currency ratings to Ca from Caa3. The rating outlook is stable. PAN AMERICAN: LT Foreign Debt Ratings Drop With Currency Woes ------------------------------------------------------------- Moody's Investors Service downgraded the Long Term Foreign Currency Debt Rating and Foreign Currency Issuer Rating of Pan American Energy LLC to `Ca' from `Caa3.' The cuts were taken in conjunction with Moody's downgrade of Argentina's foreign currency ratings to Ca from Caa3. The rating outlook is stable. PECOM ENERGIA: Moody's Cuts Ratings; Outlook Stable --------------------------------------------------- Moody's Investors Service downgraded the Long Term Foreign Currency Debt Rating and Foreign Currency Issuer Rating of Pecom Energia S.A. (formerly Perez Companc S.A.) to `Ca' from `Caa3.' The downgrades were taken in conjunction with Moody's downgrade of Argentina's foreign currency ratings to Ca from Caa3. The rating outlook is stable. REPSOL YPF: Moody's Cuts Ratings On Rapid Economic Deterioration ---------------------------------------------------------------- Moody's Investors Service downgraded the rating of the senior unsecured debt of Repsol YPF S.A. and its guaranteed subsidiaries from A3 to Baa1, and the group's preferred stock from Baa2 to Baa3. Both ratings are kept under review for possible further downgrade. The downgrades reflect the rapidly deteriorating economic, financial and social conditions in Argentina. Repsol YPF's Prime-2 short-term rating is affirmed. Moody's also cut the local currency issuer rating of YPF S.A., Repsol YPF's unguaranteed subsidiary, to Baa2 from Baa1 and kept the rating under review for possible further downgrade. Moody's also kept the Ba3 foreign currency bond ratings of YPF and its guaranteed subsidiary, Maxus Energy, and the Baa1 rating of YPF's structured export notes, under review for possible downgrade. According to the ratings agency, Repsol YPF retains a strong liquidity position, but Moody's has little concern regarding the Company's ability to service its debt in the near term. Moody's also points out that the great majority of Repsol YPF's earnings in Argentina are from US$-denominated oil exports on which the margins would be improved by a potential devaluation as it would lower the company's production cost base, although overall a devaluation, depending on its scale, would likely have a relatively modest negative impact on the group's earnings. Of greater concern, however, and driving the lowering of Repsol YPF's ratings at this stage, is the increasing level of unpredictability that evolving events in Argentina bring to bear on the group's future financial profile. Moody's is concerned that a new Argentine government could introduce measures (such as ongoing currency control and taxation) which may impact over the medium- to long-term the level of cash flow that Repsol YPF can derive from its operations in Argentina, and upon which the company is reliant to help service its own significant debt obligations. Such uncertainty is inconsistent with the maintenance of Repsol YPF's A3 rating. The group's new Baa1 senior unsecured and Baa3 preferred ratings are kept under review for possible further downgrade. "YPF S.A. has remained current on its foreign currency obligations, but rapidly evolving events on the economic and political front in Argentina could pose additional risks for YPF", said Moody's. In its review of YPF's Baa1 rated structured export notes, Moody's will assess the seniority of the notes within YPF's capital structure in light of the downgrade of the company's local currency issuer rating. YPF's Baa2 local currency rating reflects the fact that its local currency obligations are not guaranteed by Repsol YPF. The Baa2 local currency issuer rating is kept under review for possible further downgrade. TELECOM ARGENTINA: Foreign Debt Downed To `Ca' From `Caa3' ---------------------------------------------------------- Moody's Investor Services has downgraded the long-term foreign currency debt rating of Telecom Argentina STET-France Telecom S.A. to `Ca' from `Caa3.' The cut was taken in conjunction with Moody's downgrade of the Republic of Argentina's sovereign cross border obligations to `Ca' from `Caa3.' The rating outlook is stable. TRANSPORTADORA DE GAS: Moody's Lowers Ratings; Stable Outlook ------------------------------------------------------------- Moody's Investors Service downgraded the Long Term Foreign Currency Debt Rating and Foreign Currency Issuer Rating of Transportadora De Gas del Sur S.A. to `Ca' from `Caa3.' These downgrades were taken in conjunction with Moody's downgrade of Argentina's foreign currency ratings to Ca from Caa3. The rating outlook is stable. ============= B O L I V I A ============= CARACHIPAMPA: Still Facing Ambiguous Future ------------------------------------------- The future of Bolivia's mothballed Carachipampa lead-silver smelter remains uncertain as plans to convert it into a zinc smelter seem to have gone by the wayside due to the large investment required, a Mining Ministry spokesperson told Business News Americas. "The investment involved does not justify this [option]," said the official, adding the technology needed is complicated, the processes involved are very expensive and the project lacks sufficient supplies of concentrates. The plant has experienced a host of problems and has never functioned properly. A few months ago, Bolivia's mining undersecretary Epifanio Mamani said that the idea was to have Carachipampa working as soon as possible. "But there are difficulties we have to overcome in the country," he said at that time. =========== B R A Z I L =========== CELG: Future Disposition To Be Reconsidered In January ------------------------------------------------------ Jose Walter Vazquez, president of electricity company Celg, revealed that the government of Brazil's Goias state will decide in January on whether to privatize the Company or transfer its ownership to the federal government, reports Business News Americas. "By mid-January we should be analyzing the new picture presented in the electricity sector following the agreement between the government, distributors and generators on losses caused by rationing and other issues that could improve Celg's debt situation," Vazquez said. "We will analyze these new conditions and, if convenient, launch a new auction for Celg stock, for which we will also consider whether to maintain or reduce the set minimum price. The alternative is to transfer Celg ownership to the federal government," he said. Vazquez said in the agreement between electricity companies and the government, Celg was able to negotiate the terms of a contract with Endesa Spain-owned generator Cachoeira Dourada, "which, together with an improved debt profile, will also influence the financial situation of the Company." Celg was to be auctioned December 18, but the operation was suspended because of the lack of interested companies. EMBRAER: Wexford Exercises 8 ERJ 140 Options For Chautauqua Air --------------------------------------------------------------- Embraer announced Thursday that Wexford Capital LLC has exercised 8 options for the 44?seat ERJ 140 regional jet, to be delivered next year. These aircraft will be operated by Chautauqua Airlines and fly under a code share agreement with American Airlines operating under the AmericanConnection program. Wexford's present backlog stands at 53 firm orders and 20 options. Wexford has taken delivery of 41 aircraft (37 ERJ 145's and 4 ERJ 140's), and four more aircraft are to be delivered in the coming weeks. "This new option exercise reflects the present trend in the industry towards smaller, more efficient aircraft while preserving unchangeable values like comfort, speed and reliability of mainline commercial aircraft", said Maur�cio Botelho, president and CEO for Embraer. Greenwich, CT Wexford Capital LLC is a diversified investment company and parent company of Chautauqua Airlines, which has code share agreements with US Airways, America West and American Airlines. "We are pleased that Chautauqua continues to expand its code share relationships using Embraer regional jets. We look forward to exercising additional options in the future", stated Joseph Jacobs, President for Wexford Capital LLC. Chautauqua Airlines operates a fleet of Embraer regional jets and turboprop aircraft from other manufacturers, providing 355 daily flights to 43 communities and 20 states in the U.S., and to Ontario, Canada. To see company's latest financial statements: http://www.bankrupt.com/misc/Embraer.pdf CONTACT: Press office Phone +55 12 3945 1311 Fax + 55 12 3945 2411 Press office mgr. Bob Sharp bob.sharp@embraer.com.br Press officer Wagner Gonzalez wagner.gonzalez@embraer.com.br TRANSBRASIL: Must Fly Again Within A Month To Retain License ------------------------------------------------------------ Brazil's civil aviation department DAC (Departamento de Aviacao Civil) warned that Brazilian airline Transbrasil may lose its license for all the routes if it does not fly for one month, reports O Globo. To resume operations the company would need to get permission from DAC. Transbrasil is blaming the government for the suspension of its activities and dismissal of employees, estimated at 400 people. According to the Company, it never asked for financial support but expects to receive R$365 million from the ICMS tax. The Company's restructuring plan predicts the resumption of operations with five aircraft. Transbrasil has a debt of R$40 million owed to its employees and currently waits on BR Distribuidora from whom it requested a fuel credit worth R$15 million. ========= C H I L E ========= DISPUTADA MINE: ExxonMobil Receives "Several" Takeover Bids ----------------------------------------------------------- A spokesperson of ExxonMobil revealed that the US oil giant received "several" bids for its Chilean mining subsidiary Disputada de Las Condes by Thursday's deadline, reports Business News Americas. However, the spokesperson didn't disclose how many offers had been submitted. Chile's state copper corporation Codelco and London-based Antofagasta plc, controlled by Chile's Luksic group, were considered prime candidates. The Brazilian iron ore company CVRD has also reportedly put in an offer. Other possible bidders included BHP Billiton, Anglo American and Rio Tinto. Phelps Dodge (NYSE: PD) decided not to present an offer. Disputada's assets are primarily the 170,000tpy Los Bronces copper mine, the 70,000tpy El Soldado mine and Chagres smelter, all in central Chile. Los Bronces is undergoing a US$200-million expansion to boost output by some 60,000tpy. The company's value has been estimated at between US$800 million and US$1 billion. According to the spokesperson, the sale process is in the hands of ExxonMobil, and no declaration would be made until bids have been evaluated, which he estimated would not happen until well into January. ============= E C U A D O R ============= FILANBANCO: Banking Expert Explains Bank's Situation ---------------------------------------------------- The future of Ecuador's government-run bank Filanbanco, which was intervened during the country's 1998-1999 financial crisis, hangs in the balance, says Business News Americas. High operating costs have seen authorities stage several sale attempts, without success. In an interview with Business News Americas, a local banking expert working closely with Filanbanco, who preferred to remain anonymous, shed some light on would-be buyers' lukewarm response. According to the source, the government will have a difficult time selling Filanbanco this year citing a big gap between the bank's assets and liabilities. Filanbanco's deposits are in general 30-day deposits and the assets (loans and government bonds) have terms that range from three to fours years. If the private banks buy the packages (assets and liabilities) that the government is offering to them, the depositors will withdraw their money when the 30 days have passed and the private banks will have to wait years to recover the assets, hence the private banks will lose millions of dollars if they buy the Filanbanco packages, said the expert. Explaining why speculation still holds that the private banks may be interested despite this fact, the expert said these banks are under much pressure from the government to accept the deal that has been offered. "But I don't see that happening because it would be almost suicidal for the private banks to buy Filanbanco's assets and liabilities," he said. If the private banks won't accept the government's deal, and the government doesn't have the cash to continue to run it, Filanbanco will be liquidated. According to the expert, depositors would have to wait for the government to sell assets (like buildings, cars etc) and recover the loan portfolio. However, liquidation would also be difficult because they are usually drawn out processes in Ecuador and other bank liquidations have lasted up to 15 years to be fully complete. =========== M E X I C O =========== EMPRESAS ICA: Fitch Places Empresas ICA on Rating Watch Negative ---------------------------------------------------------------- Fitch has placed on Rating Watch Negative Empresas ICA Sociedad Controladora S.A. de C.V.'s (ICA) senior unsecured long-term foreign currency and senior unsecured local currency debt ratings of `BB-`. The action reflects ICA's continued low financial flexibility and stressed credit protection measures. In response to continued operating environment difficulties, ICA's management has adopted strict return on investment criteria, withdrawn from non-performing projects, identified non- core assets for divestment, aggressively reduced headcount, focused on debt reduction and selectively bid on new projects. Despite these proactive measures, the company's cash generation and credit protection indicators remain weak for the assigned rating category. Fitch is currently reviewing ICA's financial objectives and restructuring efforts, assessing their impact on credit risk. CONTACT: Fitch, New York Alejandro Bertuol, 212/908-0393 or Fitch, Mexico Victor Villarreal, 528/335-7239 GRUPO MEXICO: SPCC's Recent Bond Issue Deemed Successful -------------------------------------------------------- The bank in charge of Southern Peru Copper Corp.'s (SPCC) recent $73-million bond issue deemed the transaction a success even if it raised less cash than the mining giant had hoped for, says Reuters. "The amount issued was a little lower than (Southern) wanted, but one must keep in mind that this was the biggest issue in the history of Peru," said Jose Esposito, managing director of brokerage Credibolsa, part of Peru's biggest bank Banco de Credito. On Wednesday, Southern Peru placed 10-year bonds at LIBOR, or London Interbank Offered Rate, plus 3 percent, according to Credibolsa. On Thursday, three-month LIBOR averaged 1.90 percent. "Even though we didn't fulfill our goals 100 percent, it's important to recognize that this was a very successful and important auction because of its size," Esposito added. The Peruvian copper producer had been seeking to place up to $100 million before settling on a $73.1 million issue. While Credibolsa reported it had received total offers, at various interest rates, for $84.3 million, Esposito said that an additional $10 million in offers were logged after the auction closed, putting true demand level around $94 million. Southern Peru said following the auction that the bond's structure -- issuing long-term bonds at a variable rate -- was unusual and could have sparked hesitation among investors. Investors in turn said they were worried by low copper prices and financial woes at Grupo Mexico SA, which owns 54.2 percent of Southern Peru. Grupo Mexico said on Wednesday it would cut production amid a debt crisis and fire up to 3,000 workers amid low metals prices. "It's clear the Grupo Mexico problem has had some effect. We've made a big effort to explain to the market that Southern is managed independently and that Grupo Mexico's financial problems will not be transferred (here)," Esposito said. XEROX CORP.: Mexican Office Products Ops Xfered To Flextronics -------------------------------------------------------------- Xerox Corporation (NYSE: XRX) and Flextronics (NASDAQ: FLEX) announced Friday the completion of the first in a series of asset sales to transfer Xerox's office product manufacturing operations to Flextronics. The companies completed the sale of Xerox's plants in Toronto; Aguascalientes, Mexico; and Penang, Malaysia to Flextronics for $118 million plus the assumption of certain liabilities. The approximately 2,545 current Xerox employees in these operations transfer to Flextronics. In September, Xerox and Flextronics announced a manufacturing agreement that includes payment to Xerox of about $220 million for the sale of inventory, property and equipment as well as a five-year contract for Flextronics to manufacture certain Xerox office equipment and components. In addition to the sale of Xerox's operations in Toronto, Aguascalientes and Penang, the company is selling to Flextronics its office manufacturing operations in Resende, Brazil and Venray, The Netherlands. The asset sales announced today mark the beginning of a one-year transition period for Flextronics to assume manufacturing of Xerox-designed office products and related components. Flextronics will also begin the manufacturing of some Xerox electronic parts and subsystems during the first half of 2002. Xerox will continue to strengthen its manufacturing competencies in high-end production printing and publishing equipment, toner and imaging supplies through its remaining global manufacturing plants. Xerox had previously received portions of the $118 million from this first set of asset sales and expects to receive today the remaining payment. Additional cash proceeds from the agreement will be received in phases as the companies finalize the other sales, subject to the completion of certain regulatory and other requirements. CONTACT: Xerox Corporation Christa Carone, 585/423-5074 christa.carone@usa.xerox.com or Bill McKee, 585/423-4476 bill.mckee@usa.xerox.com or Flextronics Renee Brotherton, 408/576-7189 renee.brotherton@flextronics.com or Cheryl Scritchfield, +43 1 602 4100 26 cheryl.scritchfield@at.flextronics.com ================ S T . L U C I A ================ HYATT HOTELS: Receiver Appointed For Hyatt Regency St. Lucia ------------------------------------------------------------ Hyatt Hotels of St. Lucia, the manager of the Hyatt Regency St. Lucia, has been notified by Pigeon Point Hotel Ltd., the Hotel's owner and Royal Merchant Bank and Finance Company Limited, the Hotel's primary lender, that PricewaterhouseCoopers has been appointed as Receiver for Pigeon Point Hotel Ltd. While the Receiver is considering options including the sale of the hotel, Hyatt Hotels of St. Lucia will remain as manager under the supervision of the Receiver and the Hotel will continue to operate as a first-class resort until March 25, 2002. As a result, the Receiver has directed the Hotel to cease accepting reservation requests for stays beyond March 25, 2002. Hyatt Hotels of St. Lucia will be contacting those individuals holding reservations after that date with further information as it becomes available. Currently, there are 204 Hyatt hotels and resorts around the world. Hyatt Hotels and Resorts encompasses hotels and resorts managed, operated or franchised by two separate groups of companies; Hyatt Corporation and its affiliates and affiliates of Hyatt International Corporation. In the U.S., Hyatt worldwide Reservations for individuals and groups can be reached at 1-800 233-1234. Outside the U.S., contact the local Hyatt sales office or representative. For more information about Hyatt hotels and resorts, consult Hyatt through the Internet at www.hyatt.com. CONTACT: Hyatt Hotels Corporation Lori Armon, 312/750-8069 Angie Sell, 312/920-2325 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 240/629-3300. * * * End of Transmission * * *