/raid1/www/Hosts/bankrupt/TCRLA_Public/020123.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, January 23, 2002, Vol. 3, Issue 16
Headlines
A R G E N T I N A
BANCO RIO: Regional Financial Woes Cut Parent's 4Q Profit By 2%
BANCO RIO: Company Profile
BBVA BANCO FRANCES: Company Profile
HSBC: Urges Argentina To Adopt U.S. Dollar As Nation's Currency
REPSOL YPF: Shares Slip Further On Alarming Argentine Tax Plan
B R A Z I L
BELL CANADA: Fourth Quarter Results Reiterate Telecom Plans
C H I L E
DISPUTADA: S&P Reveals Codelco Willing To Pay US$1B For Control
TELEX-CHILE: Creditors Petition Court To Declare Bankruptcy
C O L O M B I A
AVIANCA: Shareholders To Approve Capitalization This Friday
M E X I C O
ALFA SA: Shares Up On Expectation Of $627M Debt Restructuring
ENRON: Tractebel Deal Leaves Many Uncertainties
GRUPO MEXICO: Shares Recover On Restructuring Anticipation
INTERVENED MEXICAN BANKS: IPAB Aims To Complete Liquidation 2002
P A R A G U A Y
CORPOSANA: Eight Companies Vie For Control
P E R U
SIDERPERU: Debt Refinancing Approval Expected February 20
T R I N I D A D & T O B A G O
BWIA: Last Quarter's Weak Results Prompt Job Cuts
- - - - - - - - - -
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A R G E N T I N A
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BANCO RIO: Regional Financial Woes Cut Parent's 4Q Profit By 2%
---------------------------------------------------------------
Santander Central Hispano SA, Spain's biggest bank, saw its
profit fall in the fourth quarter 2001 for the first time in at
least five years, reports Bloomberg.
According to the average of eight analyst estimates, Santander's
net income fell 2 percent to EUR601 million ($531 million) from
EUR616 million euros in the year-ago quarter. Analysts based
estimates on a provision of 250 million euros.
Profit at the Spanish bank, according to projections, fell as it
set aside more money to cover costs from Argentina's debt default
and currency devaluation. Investors said the bank may set aside
as much as EUR1.25 billion, cutting profit further.
"The simplest alternative is to write off all they've invested in
Argentina," said Cirus Andreu, head of asset management at
Bansabadell Inversion SA. He said that would require a EUR1.25-
billion provision in the fourth quarter.
Santander owns Banco Rio de la Plata, Argentina's fourth-biggest
bank. Banco Rio, along with an investment in an Argentine fund
management company, had a value of about $1.7 billion on the
company's books, a bank official said. Santander's Argentine
unit, which had about $6.4 billion in loans at the end of
September, faces an increase in bad loans because of recession,
and losses on its $2.4 billion in government bond holdings after
the country defaulted on its debt in December.
Santander already set aside EUR750 million that may be used to
cover bad loans and other costs in Argentina. The bank said in
October it would boost that by EUR250 million in the fourth
quarter, and analysts said that may be raised further.
Santander has said it would leave the country only if the
financial system collapses. Chairman Emilio Botin recently said
the bank has set aside enough profit to write off its investment
in Argentina.
Santander's shares shed 4 percent this year on concern profit
growth will slump because of Argentina, which accounted for 10
percent of the bank's net income in 2000, before financing and
other expenses were deducted.
CONTACTS: SANTANDER (SCH)
Emilio Botin-sanz De Sautuola Y Garcia De Los Rios -
Chairman, OR
Angel Corcostegui Guraya - First Deputy Chairman, OR
Jaime Botin-sanz De Sautuola Y Garcia De Los Rios -
Second Deputy Chairman, OR
Matias Rodriguez Inciarte - Deputy Chairman, OR
Angel Corcostegui Guraya - Deputy Chairman & Chief
Executive
SCH Address:
Paseo De Pereda, Numeros 9 AL 12
Santander, Spain
Phone +34 94 2206100
http://www.santandercentralhispano.es/
BANCO RIO - Investor Relations:
Ana Patricia B. S. de Sautuola y O'Shea, Chairman
Jose L. E. Cristofani, Executive Vice Chairman and CEO
Pablo Caride, Corporate Finance
Bartolome Mitre 480
1036 Buenos Aires, Argentina
Phone: +54-(0)14-341-1081-1580
Fax: +54-(0)14-341-1074-1084
BANCO RIO: Company Profile
--------------------------
NAME: Banco Rio de la Plata S.A.
Bartolome Mitre 480
1036 Buenos Aires, Argentina
PHONE: +54-(0)14-341-1081-1580
FAX: +54-(0)14-341-1074-1084
WEBSITE: www.bancorio.com.ar
TYPE OF BUSINESS: Banco Rio de la Plata S.A.(BANCO RIO) provides
general banking services including deposits,
checking and savings accounts, automatic
teller machines, debit and credit cards,
mortgage financing, commercial and personal
loans, letters of credit, electronic
collections, foreign currency transactions,
investment banking services, mutual funds,
custody of securities, securities trading,
investment advisory services and travelers'
checks.
SIC: Banking - Latin America, Middle East & Africa
TOTAL ASSETS: US$14.352 Billion (as of Dec. 2000)
TOTAL LIABILITIES: US$13.013 Billion (as of Dec. 2000)
ANNUAL REVENUES: US$1.708 Billion (as of Dec. 2000)
PUBLIC SECURITIES: 170.5 million Shares Outstanding (as of Dec.
2000)
EXEC. VICE CHAIRMAN AND CEO: Jose L. E. Cristofani
CHAIRMAN: Ana Patricia B. S. de Sautuola y O'Shea
CFO: Pablo Caride, Corporate Finance
ATTORNEY: Shearman & Sterling, Legal Advisor
599 Lexington Avenue
New York, NY 10022-6069, USA
Telephone: (+1 212) 848-4000
Fax: (+1 212) 848-7179
Contact: Robert C. Treuhold, Firm Managing Partner
BBVA BANCO FRANCES: Company Profile
-----------------------------------
NAME: BBVA BANCO FRANCES, S.A.
Reconquista 199
1003 Buenos Aires, Argentina
FAX: (212) 571-3050
TELEPHONE: (212) 815-2345
WEBSITE: http://www.bancofrances.com/bf/home.html
TYPE OF BUSINESS: BBVA Banco Frances S.A., formerly known as
Banco Frances S.A., is a commercial bank,
which provides general banking services to
corporate and retail customers, including the
acceptance of deposits and granting of loans.
BBVA Banco Frances S.A. is the fourth largest
bank in Argentina in terms of deposits,
seventh in total assets, and fifth in loans,
according to recent statistics published by
the Central Bank. The Bank, as of March 2000,
operated a banking network of 308 branches
throughout Argentina, excluding those of its
subsidiaries.
SIC: Banking - Latin America, Middle East & Africa
EMPLOYEES: (last reported count): 5,691
TOTAL ASSETS: US$10.740 Billion (As of September 2001)
TOTAL LIABILITIES: US$9.6 Billion (As of September 2001)
ANNUAL REVENUES: US$413 Million (As of September 2001)
TRIGGER EVENT: Moody's Investors Service, in its latest report,
said Banco Frances is likely to collapse in the
near-term. Last week, Argentine police searched
the offices of the bank as part of an
investigation into the transfer of deposits out
of the country.
PUBLIC SECURITIES: 69.9 Million Shares Outstanding (As of Sep.
2001)
CHAIRMAN: Gervasio Collar Zabaleta
CEO: Antonio Jorquera Lloveras
CFO: Martin Zarich
Last TCRLA Headline DATE: Tuesday, January 22, 2002, Vol. 3,
Issue 15
HSBC: Urges Argentina To Adopt U.S. Dollar As Nation's Currency
---------------------------------------------------------------
HSBC Holdings Plc, FleetBoston Financial Corp., Citigroup Inc.
and other foreign banks operating in Argentina are proposing that
Argentina should devalue the peso by two-thirds then adopt the
U.S. dollar as the nation's currency, says Bloomberg.
Emilio Cardenas, HSBC's executive director in Argentina, is
spearheading talks with the government over the plan, which would
see the banks committing to importing enough dollars to
immediately lift restrictions on bank withdrawals. Foreign banks
believe they may be able to expand by buying failed banks if
withdrawal restrictions are lifted. However, President Eduardo
Duhalde previously said he opposes adopting the dollar.
"There are sectors that conspire against (the government's)
economic plan because they prefer to dollarize the economy to
maintain privileges," Economy Minister Jorge Remes said without
specifying to whom he referred.
According to Remes, the government sought to increase the use of
pesos, which, for the last 11 years, had been used
interchangeably at par with the dollar. The currency has lost
more than 50 percent of its value since Duhalde devalued it on
January 6.
HSBC Holdings Plc, Europe's largest bank by market value, will
probably write down as much as $1 billion for bad loans last year
from Argentina, analysts have said.
HSBC had $4.9 billion of Argentine exposure as of June 30. Non-
performing loans were worth $590 million, for which it set aside
$338 million. The bank has 2.8 percent of its assets in Latin
America and makes about 3 percent of its profit there.
REPSOL YPF: Shares Slip Further On Alarming Argentine Tax Plan
--------------------------------------------------------------
Argentina's woes and the government's subsequent threat to impose
a tax on oil exports to raise cash to fight the country's
recession continues to pull down share values for Europe's fifth-
largest oil company, Repsol YPF SA.
According to a report released by Bloomberg, Repsol shares fell
another 40 cents, or 2.9 percent, to EUR13.35.
Last week, Credit Suisse First Boston analysts cut their rating
on Repsol to "sell" from "hold," estimating its fair value at
between EUR10 and 12 per share.
"We fear that the Argentine government sees the industry, and
particularly Repsol, which produces about 50 percent of
Argentina's crude," as a potential cash cow, the analysts said in
their report.
===========
B R A Z I L
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BELL CANADA: Fourth Quarter Results Reiterate Telecom Plans
-----------------------------------------------------------
In an official company press release, Bell Canada International
Inc. (NASDAQ: BCICF - news; TSE: BI.) announced its fourth
quarter results ending December 31, 2001 and upcoming corporate
plans:
- Raising $440 million through Rights Offering
- Restructuring to become pure-play Brazil Mobile operation
- Surpasses 2001 operating targets
Chairman and CEO Bill Anderson stated, ``During the quarter, BCI
announced two major plans, one to meet its short-term funding
commitments and one to reorganize Telecom Americas. The
completion of these plans, which is expected in the first quarter
of 2002, will put both companies on a more solid financial
footing and focus Telecom Americas exclusively on exploiting the
growth potential of the Brazilian mobile marketplace.''
Mr. Anderson added, ``The strong performance of our Latin
American mobile operations and the strengthening of the Brazilian
real during the fourth quarter have enabled BCI to surpass its
previously-announced revenue, EBITDA and subscriber targets for
the full-year 2001.''
RESULTS REVIEW
Following the adoption by the corporation of a plan of
disposition for Canbras and Genesis, and in anticipation of the
closing of the reorganization of Telecom Americas, BCI is
treating all of its business segments, except for the Brazil
Mobile segment, as discontinued operations as at December 31,
2001. Prior periods have been restated to reflect this treatment.
In addition, in the results review which follows, prior period
results have been normalized to reflect the current ownership
levels in Telecom Americas, and its operating companies, to
provide more meaningful comparisons.
Fourth Quarter 2001 versus Third Quarter 2001
Total subscribers served by BCI's continuing operations increased
7% to 4.3 million as at December 31, 2001, from 4.0 million on a
normalized basis as at September 30, 2001. The increase in total
subscribers reflects the seasonal impact of Christmas promotions.
Consolidated revenues for the fourth quarter of 2001 were $136
million compared to normalized revenues of $117 million in the
third quarter of 2001. This 16% revenue increase was primarily a
result of subscriber growth, increased handset prices, an
improved Brazilian currency translation rate and a management fee
from Axtel.
Consolidated EBITDA increased by 36% to $24 million in the fourth
quarter of 2001 compared to normalized EBITDA of $18 million for
the third quarter. EBITDA increased due to both revenue growth
and operating cost reductions, which were partially offset by
increased subscriber acquisition costs relating to the Christmas
promotion period.
BCI's net loss from continuing operations applicable to common
shares was $29 million in the fourth quarter of 2001, compared to
a normalized net loss of $308 million in the third quarter of
2001. The reduced loss is attributable mainly to foreign exchange
gains on U.S. dollar-denominated debt incurred in the fourth
quarter, as compared to losses incurred in the third quarter, and
a one-time charge recorded in the third quarter, partially offset
by higher interest expense.
Taking into account both continuing and discontinued operations,
BCI recorded a net loss applicable to common shares of $65
million in the fourth quarter of 2001 relative to a normalized
net loss of $422 million in the third quarter of 2001. The
reduced loss is mainly attributable to lower losses from
continuing operations and the write-off of BCI's investment in
Vesper in the third quarter.
Fourth Quarter 2001 versus Fourth Quarter 2000
Total subscribers at December 31, 2001 were up 24% from
normalized total subscribers at December 31, 2000.
Consolidated revenues for the fourth quarter of 2001 decreased
10% from normalized revenues of $151 million in the fourth
quarter of 2000. The decrease in revenues is mainly attributable
to a lower Brazilian currency translation rate compared to a year
ago. In local currency terms, revenues increased by 14%.
Consolidated EBITDA in the fourth quarter of 2001 improved by $47
million, compared to normalized EBITDA in the fourth quarter of
2000. The increase in EBITDA reflects significant cost reduction
initiatives and the realization of economies of scale resulting
from the growth in the subscriber base.
BCI's net loss from continuing operations applicable to common
shares was $29 million for the fourth quarter of 2001, compared
to a normalized net loss of $156 million in the fourth quarter of
2000. The reduced loss is attributable primarily to foreign
exchange gains on U.S. dollar-denominated debt incurred in the
fourth quarter of 2001, compared to losses in the fourth quarter
of 2000.
Taking into account both continuing and discontinued operations,
BCI recorded a net loss applicable to common shares of $65
million in the fourth quarter of 2001 relative to a normalized
net loss of $216 million in the fourth quarter of 2000. The
reduced loss is mainly attributable to lower net losses from
continuing operations, as well as lower net losses relating to
discontinued operations.
OPERATING AND FINANCING HIGHLIGHTS
Including results for operations that were discontinued at the
end of the fourth quarter, BCI's total subscribers for the year
2001 were 6.6 million, as compared to BCI's previously-announced
target of 6.5 million; total revenues were $609 million, compared
to the target range of $550 to $600 million; and total EBITDA was
$86 million, compared to the target range of $75 to $85 million.
On December 3, 2001, BCI announced the BCI Recapitalization Plan
that will enable the corporation to meet its short-term funding
commitments. As part of the BCI Recapitalization Plan, on January
11, 2002, the corporation completed a Rights Offering for gross
proceeds of $440 million, which it will receive on February 15,
2002. Public shareholders exercised 42% of the rights offered to
them, while BCE Inc., the majority shareholder of the
corporation, exercised all of the rights issued to it, as well as
all remaining rights not exercised by the public.
NOTES
(1) Normalization does not have any standardized meaning
prescribed by Generally Accepted Accounting Principles
(``GAAP'').
(2) Consistent with reporting in prior periods, EBITDA means
operating earnings (loss) from continuing operations before
depreciation and amortization. This is a widely-used measure of
cash operating earnings before financing charges and income
taxes. EBITDA does not have any standardized meaning prescribed
by GAAP.
BCI owns and develops advanced communications companies in Latin
America. A subsidiary of BCE Inc., Canada's largest
communications company, BCI is listed on the Toronto Stock
Exchange under the symbol BI and on the NASDAQ National Market
under the symbol BCICF. Visit our web site at www.bci.ca.
CONTACT: Bell Canada International Inc.
Peter Burn (Media), Vice-President, Corporate
Affairs
TEL: (514) 392-2357
E-mail: Peter.burn@bci.ca
Bell Canada International Inc.
Brian Quick (Investors), Vice-President, Finance
TEL: (514) 392-2369
E-mail: brian.quick@bci.ca
BELL CANADA - Investor Relations:
Howard N. Hendrick, EVP and CFO
1000, rue de La GauchetiŠre Ouest
Bureau 1100
Montr‚al (Qu‚bec) Canada
H3B 4Y8
Telephone: (514) 392-2323
E-mail: investor.relations@bci.ca
BELL CANADA AUDITORS:
Deloitte & Touche LLP
1 Place Ville Marie, Suite 3000
Montr‚al (Qu‚bec) Canada
H3B 4T9
Tel: 514-393-7115
Fax: 514-393-7140
E-mail: http://www.deloitte.ca/
TRANSFER AGENT AND REGISTRAR:
Computershare Trust Company of Canada
1800 McGill College Avenue
Montreal (Quebec) Canada
H3A 3K9
Tel. (514) 982-7555 or 1 800 332-0095
TRANSFER AGENT IN UNITED STATES:
Computershare Trust Company of New York
88 Pine Street
19th Floor
Wall Street Plaza
New York, NY 10005
=========
C H I L E
=========
DISPUTADA: S&P Reveals Codelco Willing To Pay US$1B For Control
----------------------------------------------------------------
Negotiations between Chilean state owned copper giant Codelco and
U.S. oil giant ExxonMobil over the latter's sale of its Chilean
mining subsidiary Disputada de Las Condes continues.
Details of the negotiations were not disclosed, but according to
Standard & Poor's, Codelco would be willing to pay up to US$1
billion to take control of the Exxon subsidiary.
The other two competing companies for the Chilean copper company
are BHP Billiton and CVRD (Compahia Vale do Rio Doce). But
analysts believe that neither CVRD nor BHP Billiton will win, as
their bids fell short of the estimated $1 billion value of
Disputada.
Speculation remains, however, that Codelco will buy Disputada and
then negotiate the participation of CVRD in the Company. Such an
arrangement may be beneficial to CVRD, whose copper operations
are its second most important business sector.
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.
In recent years, Disputada did endured poor financial results due
to the low ore minerals produced and depressed copper prices.
TELEX-CHILE: Creditors Petition Court To Declare Bankruptcy
-----------------------------------------------------------
Credit Suisse First Boston (CSFB) and equipment vendor Nera, two
of Telex-Chile's creditors, have requested a Chilean court to
declare the telecoms operator bankrupt, reports Business News
Americas.
Telex-Chile has three days to respond to the request.
Subsequently, the court will decide if there is sufficient
evidence to declare the Company bankrupt.
The move by the two creditors could put at risk a shareholders'
pact that has given Telex-Chile breathing room to sort out its
finances. A bankruptcy ruling could have implications for US-
based investment fund Southern Cross, which plans to increase its
stake in Telex from 18.1 percent to between 34 percent and 90
percent.
Speculation continues that CSFB and Nera are trying to pressure
Southern into offering them a better deal for their shares in the
Company, which, between the two of them, total 5 percent of
Telex.
Southern intends to take control of Telex through the purchase of
debt from creditors, a public tender offer on Telex shares, and a
US$379 million capital increase.
Report has it that the investment fund has already signed a debt-
repurchasing contracts with Telex creditors for US$96 million,
which, added to a US$10 million cash injection, total US$106
million.
The completion of the operation is expected to leave Telex with
debts between US$10 million and US$12 million.
===============
C O L O M B I A
===============
AVIANCA: Shareholders To Approve Capitalization This Friday
-----------------------------------------------------------
Shareholders in Colombia's biggest airline, Avianca, will buy $45
million in new, nonvoting stock in its latest attempt to
capitalize the Company in order to prepare it for its upcoming
merger with smaller domestic rival ACES.
According to Reuters, the said operation should be approved this
coming Friday, at a shareholders' assembly in the city of
Barranquilla.
Avianca, a subsidiary of Colombian businessman Julio Santo
Domingo's Valores Bavaria conglomerate, is due to be merged with
its small subsidiary SAM, and ACES -- which is controlled by
Colombia's powerful Coffee Growers' Federation.
The looming merger, approved by the government last year
following months of deliberation, is considered vital for the
companies' continued survival. The deal will create a firm with
combined assets of $700 million. The airlines plan to integrate
their services by May 20, but all three brand names will continue
to be used.
In November, Avianca's shareholders approved an injection of up
to $212 million in order to ensure that the Company ended 2001
with a positive net worth.
Last September, Avianca, the world's second-oldest airline, had
negative net worth totaling $254 million.
Avianca has been hit by increasing competition due to an "open
skies" policy instituted in the 1990s, rising insurance premiums
charged in war-torn Colombia, and a sluggish local market.
===========
M E X I C O
===========
ALFA SA: Shares Up On Expectation Of $627M Debt Restructuring
-------------------------------------------------------------
Shares of Alfa, an industrial group with subsidiaries in auto
parts, mining and petrochemicals, climbed 22 centavos, or 1.8
percent, to 12.7 pesos, says Bloomberg. The Company's shares are
up on expectation that its steel unit Hylsamex SA is about to
announce an agreement with its bank creditors to restructure $627
million in debt.
"They might work this out, but there won't be another bank that's
going to want to lend to them in the future," said Inigo Ugarte,
who helps to manage about $20 million in Mexican equities at Casa
de Bolsa Bital SA.
Alfa is in talks with creditors over the debts of Hylsamex SA in
a bid to avert a default. Fitch's recent upgrade on Mexico's
long-term foreign currency rating to BBB-minus from BB-plus may
help it get more favorable terms as the risk perception of Mexico
eases.
Alfa, hamstrung by debts from its other subsidiaries, is looking
for a "strategic investor" for Hylsamex, and may also offload
some of Hylsamex's non-core assets.
CONTACT: Dionisio Garza Medina, CEO
Raul Gonzalez Casas, Investor Relations
TEL. 52 8748-1177 FAX. 52 8748-2544
rgonzale@alfa.com.mx
ENRON: Tractebel Deal Leaves Many Uncertainties
-----------------------------------------------
Tractebel, one of the world's and most important energy
companies, has already completed deals with Enron to take charge
of the electricity cogeneration plant that the latter is building
close to northern Mexico, Tractebel spokesperson Marcelo Paramo
said in a Mexico City daily Reforma report.
The plant is scheduled to be operational by April. However, there
are gray areas yet to be tackled in the deal such as the fact
that Enron is still the official concessionary for the project,
and still has a 20-percent stake in it.
"... which leads to uncertainty, because neither Enron nor
Tractebel know what route will be taken," Paramo said.
In addition, Government officials said that they so far have
received no official communication about a deal between the two
energy companies.
According to Ruben Flores, an official from the Energy Regulatory
Commission (CRE), the agreement has still not been formalized
with the CRE.
`Normally, when a company wants to pull out of this kind of
project, it finds a buyer and then presents the deal to the
commission for a change in permission," said Flores.
The project involves construction of a 284-megawatt cogeneration
plant to supply electricity to Vitro, which is investing US$400
million in the project.
GRUPO MEXICO: Shares Recover On Restructuring Anticipation
----------------------------------------------------------
Shares of Grupo Mexico SA continue to rise as investors buying
shares in the world's third-largest copper producer are betting
the Company would reach an agreement with its creditors to
restructure its debt.
According to a report released by Bloomberg, Grupo Mexico's
shares climbed another 21 centavos, or 1.6 percent, to 13.30
pesos.
Recovery in copper prices also helped increase the value of the
Company's shares. Copper prices have risen 6 percent since
January 2 to $1,525 a metric ton on the London Metal Exchange.
Grupo Mexico recently announced that its subsidiary Southern Peru
Copper Corp. (SPCC) will prepay $150 million in foreign debt due
over the next seven years before establishing a new credit line
for as much as $550 million to finance its expansion in the
Andean nation.
Standard & Poor's agency called the measure "positive," though it
continues to rate the Company three notches below investment
grade at "BB-."
Grupo Mexico's shares have risen 45 percent this year.
CONTACTS: German Larrea Mota-Velasco, Chairman and CEO
Avenida Baja California 200, Colonia Roma Sur
06760 M,xico, D.F., Mexico
Phone: +52-5-264-7775
Fax: +52-5-264-7769
C.P. Hector Garcia De Quevedo Topete, Corporate Dir.
Av. Baja California No. 200, Colonia Roma Sur C.P.
06760 MEXICO, D.F.
Phone: 55-64-70 66 ext 7238
Fax: 55-64-3714
UNDERWRITER: ING BARRINGS
Corporate communication and public relations:
C.P. HECTOR GARCIA DE QUEVEDO TOPETE
CORPORATE DIRECTOR
AV. BAJA CALIFORNIA No. 200
Colonia ROMA SUR C.P. 06760
MEXICO, D.F.
Tel: 55-64-70 66 ext 7238 Fax: 55-64-3714
moram@gmexico.com.mx
INTERVENED MEXICAN BANKS: IPAB Aims To Complete Liquidation 2002
----------------------------------------------------------------
Roberto Barrera Rivera, spokesperson for Mexican bank bailout
agency IPAB, revealed that the agency is aiming to complete the
liquidation of the better part of the assets of intervened banks
under its control by this year, even though it has until 2004 to
complete the sales.
Still, according to a report by Mexico City daily Reforma,
incoming IPAB attorney Gabriel Reyes Orona said IPAB has failed
in a requirement set out in the Federal Bank Savings Protection
law to complete their sale by January 19, 2002.
Reyes suggested that the sell off of the banks, which were
intervened by the National Banking and Securities Commission
(CNBV) following the 1995 banking crisis, should have been
completed within three years of the IPAB law going into effect.
The intervened banks in question are Cremi, Union, Oreinte,
Interestatal, Industrial, Sureste, Pronorte, Anahuac, Capital and
Obrero.
===============
P A R A G U A Y
===============
CORPOSANA: Eight Companies Vie For Control
------------------------------------------
Paraguay's National Reform Ministry (SNRE) disclosed that there
are now a total number of eight companies competing for
Paraguay's Sanitary Works Corporation (Corposana) after six more
obtained authorization to qualify for the upcoming auction,
reports EFE.
The six companies are Paraguay's Companhia Internacional de Aguas
S.A., Uruguayan-Spanish consortium Consorcio Obras Sanitarias del
Estado y Aguas de Valencia, Paraguay's Consorcio EMSA-ECOMIPA
S.A., France's Ondeo Services, Britain's International Water and
Paraguay's FLUODER S.A.
French-Spanish company Proactiva Medio Ambiente and Spain's Canal
de Isabel II had already announced their interest in purchasing
100 percent of the Corposana water and sewage company.
Interested companies have to meet a number of conditions related
to liquidity and experience. The bidding process will end on
September 14, and Paraguay has yet to announce Corposana's
estimated value.
Corposana is one of the three companies the government of
Paraguayan President Luis Gonzalez Macchi said could be
privatized.
CONTACTS: CORPOSANA LEGAL ADVISER:
Baker & McKenzie
Latin America Regional Council
c/o Eduardo de Cerqueira Leite - Chairman
Av. Dr. Chucri Zaidan 920, 8th floor
Market Place Tower I
04583-904 Sao Paulo, SP, Brazil
Tel: (55-11) 3048-6800
Fax: (55-11) 5506-3455
Email: info-latinamerica@bakernet.com
Marketing Manager: Ellen Van-Waveren
Baker & McKenzie Headquarters:
1 Prudential Plaza, 130 E. Randolph Dr., Ste. 2500
Chicago, IL 60601
Phone: 312-861-8800
Fax: 312-861-2899
Bakerinfo.com
FINANCIAL CONSULTANT:
Banco Santander Central Hispano
Plaza de Canalejas,1
28014 Madrid, Spain
Phone: +34-91-558-10-31
Fax: +34-91-552-66-70
CORPOSANA:
Emilio Botn-Sanz, Chairman
Angel Corc>stegui Guraya, First Vice-Chairman and CEO
Jos, Luis del Valle, EVP Finance
=======
P E R U
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SIDERPERU: Debt Refinancing Approval Expected February 20
---------------------------------------------------------
Siderperu, a Peruvian iron and steel company, has formally
informed the Lima bourse that approval of an agreement on a
proposed debt refinancing will be delayed until February 20, says
Business News Americas.
Approval has been put back to the said date because the Company
still has not completed all the adjustments required by the
creditors to the draft refinancing.
Terms include establishing a repayment program with fixed and
variable payments, based on the Company's cash flow, to the
various groups and subgroups of creditors.
Banco Wiese Sudameris will reportedly renew US$10 million credits
to the Company, which will suspend dividend payment over a 4-year
term.
Siderperu anticipates paying US$113.7 million debts over a period
of between 8 and 10 years. Financial creditors would be subject
to guarantees, while the Company will have access to limited
credit for working capital and investments.
For this year, the Company predicts that sales to the mining and
trading sectors will amount to US$33 million, while production
will amount to 27,283 tons, of which 52 percent corresponds to
demand from the construction sector.
Siderperu went into a form of bankruptcy protection to completely
refinance itself in August, blaming the global steel crisis and
market "confusion" about its solidity.
It has a liquid steel capacity of 520,000tpy, and makes long and
flat products. Among its key clients is Moly-Cop in Peru and
Chile that manufacture steel grinding balls for mills. The three
companies are managed by GS Industries of South Carolina.
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T R I N I D A D & T O B A G O
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BWIA: Last Quarter's Weak Results Prompt Job Cuts
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National airline BWIA is gradually sending out signals that it is
about to implement staff reduction, despite posting good nine-
month results.
According to a report released by The Trinidad Guardian, BWIA
President Conrad Aleong, in an internal company update, dated
January 10, revealed to staff that the weak performance in the
last quarter of 2001 drove BWIA to consider job cuts.
The update stated, while the figures are not available for the
last three months, the airline carried 10,000 fewer passengers
last October than in October 2000. In November, it carried 25,500
fewer passengers than in November 2000.
"With two months' sizeable losses, it is clear that the profit of
US$6.4 million that we had earned at the start of the fourth
quarter is in grave danger of becoming a loss for the full year
2001," the update stated.
Communications director Clint Williams said Friday that the
airline is going to step through a restructuring process. Details
about the plan, such as the number of people likely to be
affected or from what departments, will be worked out and will be
revealed to staff on January 30, said Williams.
According to the director, after restructuring, some jobs will be
eliminated. Some employees may be relocated, others could be re-
assigned.
Meanwhile, Curtis John, president of the Aviation Communication
and Allied Workers Union criticized BWIA's plan, saying that the
airline was using the situation to its advantage and there was no
justification for staff reduction.
John says, "Their objective is to get into the area of contract
labor."
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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 Fe Ong Va¤o, Editors.
Copyright 2002. All rights reserved. ISSN 1529-2746.
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