/raid1/www/Hosts/bankrupt/TCRLA_Public/020206.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, February 06, 2002, Vol. 3, Issue 26
Headlines
A R G E N T I N A
ARGENTINE BANKS: President's Decision May Lead To Collapse
REPSOL YPF: Argentine Impact Still Undetermined
B E R M U D A
GLOBAL CROSSING: Issues Statement On Accounting Allegations
GLOBAL CROSSING: Milberg Weiss Announces Class Action Lawsuit
B O L I V I A
COTEL: Detecon, Banks To Carry On Financing Talks This Month
B R A Z I L
EMBRATEL: Shares Down On Expectation Of Losses
ENRON: Brazil Monitors Local Operations
M E X I C O
AHMSA: Defends Government Plan To Boost Metal Tariffs
BANCRECER: Banorte Predicts Risky Loans On The Decline
BANCRECER: Lehman Downgrades Stock On Valuation Concerns
EMPRESAS ICA: Shares Dip On Inflation Measures
EMPRESAS ICA: Company Profile
MEXICAN BANKS: Brimco Buys Real Estate Properties For MXN605 MM
SANLUIS CORPORACION: Nears Debt-Restructuring Of US$20Mln Debt
U R U G U A Y
BANCO COMERCIAL: Moody's Cuts Ratings; More Downgrades On Review
- - - - - - - - - -
=================
A R G E N T I N A
=================
ARGENTINE BANKS: President's Decision May Lead To Collapse
----------------------------------------------------------
Argentine President Eduardo Duhalde ordered banks such as Banco
de Galicia y Buenos Aires SA and Citigroup Inc.'s Argentine unit
to change dollar loans into pesos at a rate of one-to-one, while
converting deposits into pesos at a rate of 1.4, reports
Bloomberg.
The difference, according to Economy Minister Jorge Remes
Lenicov, will cost banks as much as ARS14 billion (US$7.2
billion), eventually leading to their demise.
"They are passing through the complete burden of the devaluation
to the banking sector," said Siobhan Manning, a sovereign debt
strategist with Caboto USA, which has managed Argentine bond
sales. "They don't recognize the fact that banking system is on
the verge of collapse."
Duhalde is looking to ease the impact of devaluation on middle
class and corporate debtors by making banks bear most of the
cost. Analysts revealed that the president said he would let the
peso trade freely this week for first time in 11 years.
According to Moody's Investors Service, using different exchange
rates for assets and liabilities would make banks insolvent and
may lead the government to take over banks to avert a collapse.
Smaller banks may fail while international banks, such as
FleetBoston Financial Corp. and Banco Santander Central Hispano
SA, may cut business, charge more losses against earnings or
abandon Argentina altogether, analysts said.
"You're going to see consolidation," said Andre Cappon, president
of New York-based CBM Group Inc., a bank consulting company. "If
you are foreign bank that owns a small Argentine bank, you're
going to say, `I don't need this headache.'"
REPSOL YPF: Argentine Impact Still Undetermined
-----------------------------------------------
Spanish oil firm Repsol YPF is expected to publish its 2001
results at the end of this month when it will inform the market
of corporate actions taken.
However, according to a report by Reuters, because of uncertainty
over the situation in Argentina and the measures that may finally
be adopted affecting the oil sector there, Repsol presently
cannot assess the impact on its balance sheet or 2001 results.
"For the same reasons, we are approaching 2002 prudently,
particularly with respect to investment and cost reduction
programs," the Company said in a statement.
On the other hand, Repsol said, measures announced on Sunday by
the Argentine government such as the free flotation of the peso,
partial lifting of a savings freeze and a more rigorous fiscal
policy meant Argentina was coming into line with the "orthodox
positions of international organizations," something it said
would be to the advantage of both Argentina and Repsol.
Repsol, one of the world's top 10 oil companies, has nearly EUR20
billion ($17.29 billion) of debt, much of it stemming from its
US$15 billion purchase of Argentine oil producer YPF in 1999. YPF
now accounts for nearly half of group business.
Repsol shares, battered in recent weeks due to the Argentine
crisis, fell 2.5 percent to close at EUR13.70 on Monday.
CONTACTS: REPSOL YPF/YPF
Alfonso Cortina De Alcocer, Chairman & CEO
Ramon Blanco Balin, Vice Chairman
Carmelo De Las Morenas Lopez, CFO
Their Address:
Paseo de la Castellana 278
28046 Madrid, Spain
Phone +34 91 348 81 00
Home Page: http://www.repsol.com
or
Av. Roque S enz Pe a, 777.
C.P 1364. Buenos Aires
Argentina
=============
B E R M U D A
=============
GLOBAL CROSSING: Issues Statement On Accounting Allegations
-----------------------------------------------------------
Global Crossing today issued more details on previously reported
allegations by a former employee regarding the company's
accounting practices.
In August 2001, Global Crossing received a letter from Roy
Olofson, who was at that time a vice president-finance of the
company, raising concerns about certain accounting and financial
reporting matters of Global Crossing and its subsidiary Asia
Global Crossing. Mr. Olofson claimed that it was improper for the
company to have reported pro forma values for cash revenue and
adjusted EBITDA (earnings before interest, taxes, depreciation
and amortization) because the numbers are not measures of cash
receipts or earnings and because the amounts were allegedly
inflated by including amounts for which cash was not received or
where there had been non-monetary exchanges of capacity.
After a review of the letter and consultation with outside
counsel, the company determined that the financial and reporting
topics raised in the letter had been reviewed by its internal
finance and accounting personnel and by Arthur Andersen in
connection with the audit of the company's annual financial
statements and its review of the company's interim financial
statements. The company also determined that there had been
appropriate disclosure in the company's press releases and
filings with the U.S. Securities and Exchange Commission (SEC)
describing how the pro forma numbers were prepared and making it
clear that this information should not be considered as an
alternative to any measure of performance defined under GAAP
(generally accepted accounting principles). The company also
determined that there were reasons to question the motives of Mr.
Olofson. Accordingly, no further action was taken in response to
Mr. Olofson's allegations.
As disclosed in the company's filings with the SEC, the company's
management has used recurring adjusted EBITDA to monitor
compliance with the financial covenants contained in its debt
instruments and to measure the performance and liquidity of its
business segments. The company's press releases and filings with
the SEC have also disclosed the fact that the company has
purchased significant amounts of assets from carriers who were
also customers of the company. The disclosures have presented the
amounts of cash received by the company and included in cash
revenue and adjusted EBITDA, as well as the amounts of the cash
commitments to those customers.
Shortly after Mr. Olofson wrote to the company, and
notwithstanding the fact that he was still an employee, the
company received a letter from an attorney alleging that Mr.
Olofson had been "constructively terminated" from his employment
and therefore would no longer be reporting to work. Furthermore,
the employee and his counsel demanded, as a condition to dropping
his wrongful termination claim, an up-front multi-million dollar
payment and a minimum seven-figure annual cash compensation
package for a five-year period. After a review of this claim and
consultation with outside counsel, the company concluded that
this claim was without merit and refused to agree to this demand.
Subsequently, Mr. Olofson's attorney provided the company with a
draft complaint which elaborated on the allegations expressed in
the employee's August 2001 letter and added an allegation that
the company had delayed the announcement of a downward revision
of its guidance for 2001 earnings because of recent stock
transactions entered into by senior executives of the company.
After a review of these additional allegations and consultation
with outside counsel, the company concluded that the allegations
were without merit.
The company continued to refuse to agree to the employee's multi-
million dollar demand and, over the following months, the
employee's attorney gradually reduced his settlement demand to an
amount representing less than one-tenth of the original demand.
The company terminated the employee's employment on November 30,
2001 in connection with a substantial reduction in its workforce.
On January 18, 2002, the company received a letter from a
different attorney for Mr. Olofson, attaching a revised draft of
the initial complaint and containing renewed threats to commence
an action for wrongful termination against the company and
certain of its officers and directors unless a multi-million
dollar payment was made by February 1, 2002. The company again
refused to agree to this demand.
Although the company had determined that the allegations made by
Mr. Olofson were without merit and that the issues raised in his
letter had been properly addressed in the company's news releases
and its filings with the SEC, the company's January 28, 2002
bankruptcy filing and recent events not involving the company
have created a heightened sensitivity to any alleged accounting
improprieties. Accordingly, on January 28, 2002, the company
first disclosed to Arthur Andersen the existence of Mr. Olofson's
letter and on January 29, 2002 provided a copy of the letter to
Arthur Andersen. On January 29, 2002, the company also first
disclosed the letter's existence to the current members of the
company's audit committee and on January 30, 2002 provided copies
to these individuals.
The company has provided a copy of Mr. Olofson's letter to the
SEC and has received an inquiry from the SEC for the voluntary
production of certain additional information regarding the issues
raised in Mr. Olofson's letter. The company is cooperating with
the SEC in providing this information.
Although the company continues to believe that Mr. Olofson's
motivations are questionable and continues to believe that its
accounting and reporting are entirely appropriate, at the request
of the company's audit committee and Arthur Andersen, it has
decided to form a special committee of independent directors,
including members of its audit committee, to conduct a further
review of the allegations made in the August 2001 letter and
related draft complaints. The special committee will retain
independent counsel and a firm of independent accountants other
than Arthur Andersen to review the matter.
On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.
CONTACT: Global Crossing
Press Contacts: Dan Coulter, 973/410-5810
Daniel.coulter@globalcrossing.com
Press Contact
Becky Yeamans
+1 973-410-5857
rebecca.yeamans@globalcrossing.com
Analysts/Investors Contact
Ken Simril
+1 310-385-5200
investors@globalcrossing.com
GLOBAL CROSSING: Milberg Weiss Announces Class Action Lawsuit
-------------------------------------------------------------
Milberg Weiss ( http://www.milberg.com/global/)announced Monday
that a class action has been commenced in the United States
District Court for the Central District of California on behalf
of purchasers of Global Crossing Ltd. ("Global Crossing")
(NYSE:GX) common stock during the period between Jan. 2, 2001 and
Oct. 4, 2001 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your
rights or interests, contact plaintiff's counsel, William Lerach
or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail
at wsl@milberg.com. If you are a member of this class, you can
join this class action online at http://www.milberg.com/global/.
Any member of the purported class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to
do nothing and remain an absent class member.
The complaint charges Global Crossing and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. The complaint alleges that during the Class Period,
defendants issued false and misleading statements and press
releases concerning Global Crossing's financial statements, their
ability to offset declining wholesale demand for bandwidth
capacity with higher-margin, customized data services and the
Company's ability to generate sufficient cash revenue to service
its debt. During the Class Period, before the disclosure of the
true facts, the Individual Defendants and certain Global Crossing
insiders sold their personally held Global Crossing common stock
generating more than $149 million in proceeds and the Company
raised $1 billion in an offering of senior notes.
However, the full extent of Global Crossing's cash flow crisis,
and its failure to compete in the market for customized
communications services, began to emerge on Oct. 4, 2001. On that
date, the Company issued a string of stunning announcements: cash
revenues in the third quarter would be approximately $1.2
billion, $400 million less than the $1.6 billion expected by a
consensus of analysts surveyed by Thomson Financial/First Call.
The cash revenue shortfall was purportedly the result of a "sharp
falloff" in wholesale IRU sales to carrier customers. The Company
further announced that it expected recurring adjusted EBITDA to
be "significantly less than $100 million" compared to forecasts
of $400 million. Following these announcements, Global Crossing's
share priced plunged by 49% to $1.07 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of
Global Crossing common stock during the Class Period (the
"Class"). The plaintiff is represented by Milberg Weiss Bershad
Hynes & Lerach LLP, who has expertise in prosecuting investor
class actions and extensive experience in actions involving
financial fraud.
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP
William Lerach, 800/449-4900
wsl@milberg.com
=============
B O L I V I A
=============
COTEL: Detecon, Banks To Carry On Financing Talks This Month
------------------------------------------------------------
Discussions between German telecoms management consultancy
Detecon and financial institutions over the US$15-million
financing for Bolivian local telephony cooperative are expected
to resume this month, Business News Americas reports.
Talks have been suspended on concern that investors would have
balked at the process due to tension between Detecon and the
Cotel board of directors.
According to acting Cotel chairman and Detecon employee Juergen
Kurz, Cotel board members, who failed twice in their attempts to
overturn Detecon's contract to manage the Company, now see the
legality of the contract. Kurz believes that banks have no
further concerns.
Detecon was awarded a contract to manage Cotel in May 2001, and
took over Cotel's administration in August 2001, relates Business
News Americas.
Bolivia's government intervened the cooperative in August 2000
after strikes and mismanagement threatened the viability of the
country's largest fixed line operator. Cotel has about 160,000
lines in service.
Detecon will present its business plan for Cotel to local and
foreign banks, some of which - such as the Interamerican
Development Bank - took the initiative to offer loans now that
Detecon's administrative control has been assured, Kurz said.
The US$15 million is by no means the full 2002 investment and
Detecon will apply it to areas of immediate need such as
maintenance, opening a call center, marketing initiatives and a
new billing system in order to make use of Cotel's unused
capacity of some 80,000 lines.
===========
B R A Z I L
===========
EMBRATEL: Shares Down On Expectation Of Losses
----------------------------------------------
Shares of Embratel, Brazil's largest long-distance provider, shed
4.3 percent to BRL8.09 on anticipation of fourth quarter losses.
"We're expecting a big loss of BRL256 million," (US$105.8
million) for the fourth quarter, said Carolina Gava, Brazil phone
analyst with BES Securities SA in Rio de Janeiro.
Embratel is also expected to lose 23 percent of its long distance
income in 2002 because of competitors' entry into the market
place, causing client attrition, as well as pricing pressures.
Its entry into the local market will only partly compensate for
these losses. The process of installing local exchange networks
is not simple or cheap compared to long distance service
backbone.
According to Embratel, the Company is working within the
expectation of loss of revenue and intends to concentrate on the
segment where it has a competitive advantage, data
communications, and on increasing profitability.
Embratel currently only competes with Intelig Telecomunicacoes
Ltda. The company's stock represents the sixth-most heavily
weighted share of the 57 issues on the Bovespa.
CONTACTS: Rua Presidente Vargas, 1012
Centro - Rio de Janeiro - RJ
CEP: 20179-900
Tel: 2519 9662
Fax: 2519 6388
E-mail: invest@embratel.com.br
Mariana Palmeira, 55 21 2519-3654
mpalm@embratel.com.br
Silvia Pereira
Investor Relations Manager
silvia.pereira@embratel.com.br
Marcos Baptista
marcos.baptista@embratel.com.br
Graziela Fortunato
graziela.fortunato@embratel.com.br
Marcio Debellian
debellian@embratel.com.br
ENRON: Brazil Monitors Local Operations
---------------------------------------
Brazilian electricity regulator Aneel and oil regulator ANP are
sending regular reports to the Mines & Energy Ministry (MME)
regarding the operations of the local subsidiaries of bankrupt US
energy company Enron, says Business News Americas.
The action is part of the Brazilian government's move to tightly
watch Enron's subsidiaries, which include the Sao Paulo state-
based electricity distributor Elektro, the Rio de Janeiro gas
distributors Ceg and Ceg-Rio, the Eletrobolt thermoelectric
plant, and seven other gas distributors in the northeast region.
According to MME minister Jose Jorge, the federal government will
adopt appropriate measures if necessary. To date, the situation
of these companies is under control because all the Brazilian
subsidiaries owe money to the parent company and not the other
way round, Jorge added.
===========
M E X I C O
===========
AHMSA: Defends Government Plan To Boost Metal Tariffs
-----------------------------------------------------
The Mexican government is close to deciding whether to apply a
35-percent tariff on tin plate and tin free steel (used to make
cans) as well as other steel products from countries with whom
Mexico doesn't have free trade agreements, says Bloomberg.
However, tin can producers are demanding that the plan should be
abandoned, arguing it will push consumer prices up and put people
out of work.
"The Mexican industry of metal container manufacturers absolutely
rejects establishing import tariffs on its basic raw materials of
which national production isn't sufficient," the metal containers
trade group said in newspaper advertisements published in El
Economista and Reforma and addressed to the president and
Congress.
In response, Altos Hornos de Mexico SA (Ahmsa), the country's
largest steelmaker, advertised a rebuttal in El Norte, the sister
newspaper of Reforma in the North, saying that metal containers
only account for 5 percent of the cost of canned goods.
Furthermore, Ahmsa revealed it has lowered the price of tin plate
and tin free steel by 22 percent since 1999, but the lower prices
haven't been passed along to consumers.
"We have demonstrated to authorities with proof from solid
investigations that unfair and hurtful imports of tin plate and
tin free steel do exist," Ahmsa said in the advertisement.
According to Ahmsa spokesman, Francisco Orduna, the steelmaker
has capacity to produce 40 percent of Mexico's demand for both
metals. The tariffs are designed to slow imports from Asia and
Eastern Europe, not cause a shortage of the materials in Mexico,
he said. Mexican can producers will still be able to import tin
plate and tin free steel without tariffs from Mexico's main
trading partners.
CONTACTS: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres.&CEO
Jorge Ancira Elizondo, Chief Financial Officer
Manuel Ancira Elizondo, Chief Operating Officer
Their Address:
Prolongacion B. Juarez s/n,
Monclova , Coahuila 25770
Mexico
http://www.ahmsa.com
Phone: +52 86 33 81 72
Fax: +52 86 33 65 66
BANCRECER: Banorte Predicts Risky Loans On The Decline
--------------------------------------------------------
Grupo Financiero Banorte posted a 48-percent drop in fourth-
quarter net profit following last year's sharp slide in interest
rates and higher provisions at its banking unit for risky loans,
says Reuters.
Banorte's Chief Executive Othon Ruiz explained that the higher
provisioning came amid new requirements imposed by Mexican
banking authorities and contingencies related to individual
loans.
However, Mexico's No. 4 banking group is seeing lower
provisioning for risky loans in 2002, as it forecast healthy
growth in loans and its deposit base, helped by synergies from
its recent acquisition of Bancrecer.
"2001 was an extraordinary year for loan provisions, which grew
by 40 percent over 2000," said Ruiz. "In 2002 we do not
anticipate this amount of loan provisions, and this comes from a
very thorough analysis of our loan portfolio."
Despite its forecast for a low interest rate environment in 2002,
Banorte said growth will be fueled by synergies from its recent
acquisition of Bancrecer bank and the fact that it is starting
from a low base in terms of its loan portfolio.
Banorte's CEO said he expects the bank's profitability, as
measured by the return on equity, to grow by 15 percent to 16
percent in 2002.
Banorte reported fourth-quarter net profit of MXN250.3 million in
the fourth quarter, just less than half the MXN482.4 million
reported in the year-earlier period.
CONTACTS: BANORTE
Institutional Investors
Jorge Coln
Director de Relaciones con Inversionistas
(528) 319 52 10
Gabriela Renovato
Gerente de Relaciones con Inversionistas
(528) 319 52 19
E-mail: investor@banorte.com
Fax.- (528) 319 52 35
Correspondent Bank
Eduardo Gonz lez
Vice Presidente de Banca Internacional
(528) 319 62 07
Claudia Zapata Canto
Gerente de Bancos Corresponsales
(528) 319 62 65
e-mail: claudia.zapata@banorte.com
Fax.- (528) 319 62 43
Brokerage House
Gerardo Molina
Vice Presidente de An lisis
(52) 53 25 28 40
Fabiola Molina
Analista del Sector Burs til
(52) 53 25 28 00 ext.2656
E-mail: fvmolina@cbbanorte.com.mx
Fax.- (52) 53 25 29 54
BANCRECER: Lehman Downgrades Stock On Valuation Concerns
--------------------------------------------------------
The recent strength of Banorte's stock has prompted Lehman
Brothers to cut its recommendation on the Mexican financial group
to "buy" from "strong buy," reports Reuters.
"In addition, we think the risk of the impending Bancrecer
integration process is likely to constrain valuations in the near
term, which is an additional justification for the rating," said
analyst Robert Lacoursiere in a research note.
During the fourth quarter, Banorte completed its acquisition of
failed bank Bancrecer, one of a string of Mexican banks swamped
by debts after a December 1994 peso devaluation sent interest
rates soaring.
Banorte, based in the northern industrial hub of Monterrey, paid
a total of MXN1.650 billion for Bancrecer, plus interest of
MXN16.0 million. Bancrecer's shares were slated to be transferred
to Banorte on Jan. 2, 2002.
EMPRESAS ICA: Shares Dip On Inflation Measures
----------------------------------------------
Fears that Mexico's central bank might raise interest rates in
order to curb inflation pulled down the value of the shares of
Empresas ICA Sociedad Controladora, S.A. de C.V. According to a
report by Bloomberg, Empresas ICA's shares plunged 19 centavos,
or 4.4 percent, to MXN4.1.
Higher financial costs would discourage states and municipalities
from investing in infrastructure projects. The result for
Empresas would be less work and revenue.
Recently, the Company, which specializes in the construction of
roads and bridges, had its senior unsecured long-term foreign
currency and senior unsecured local currency debt ratings
downgraded by Fitch Ratings to 'B' from 'BB-'. The ratings remain
on Rating Watch Negative.
The rating action reflected Empresas ICA's limited financial
flexibility, stressed credit protection measures, changing
operating environment, increased competition and an uncertain
regional economic outlook.
CONTACTS: EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
Bernardo Quintana Isaac, Chairman/Pres/CEO
Jos, L. Guerrero Alvarez, EVP Finance and CFO
THEIR ADDRESS:
Mineria No. 145, Colonia Escand›n
11800 M,xico, D.F., Mexico
Phone: +52-55-5272-9991
Fax: +52-55-5227-5012
URL: http://www.ica.com.mx
EMPRESAS ICA: Company Profile
-----------------------------
NAME: EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
Mineria No. 145, Colonia Escand˘n
11800 M‚xico, D.F., Mexico
PHONE: +52-55-5272-9991
FAX: +52-55-5227-5012
WEBSITE: http://www.ica.com.mx
EXECUTIVE MANAGEMENT TEAM:
Bernardo Quintana Isaac, President
Jose Guerrero Alvarez, Exec. VP, Fin.
Jorge Borja Navarrete, Exec. VP, Industrial Construction
Sergio Montano Leon, Exec. VP, Admin.
Jorge Aguirre Quintana, VP, Civil Construction
INVESTOR RELATIONS:
Jos‚ L. Guerrero Alvarez, EVP Finance and CFO
Mineria No. 145, Colonia Escand˘n
11800 M‚xico, D.F., Mexico
PHONE: +52-55-5272-9991
FAX: +52-55-5227-5012
TYPE OF BUSINESS: Empresas ICA Sociedad Controladora (MXK: ICA)
operates as a construction company involved with infrastructure
projects, industrial construction, urban and housing-related
construction and transportation construction. Other activities
include construction, operation and maintenance of roads,
bridges, tunnels and administration and operation of car parks,
airports, specialized port terminals and municipal services;
property and housing development; manufacture and
commercialization of industrial goods; and extraction,
exploitation and commercialization of aggregates for the
construction particularly of limestone.
SIC: Heavy Construction Industry
EMPLOYEES: 23,200
TOTAL CURRENT ASSETS: US$1.094 billion (as of 3/31/01)
TOTAL CURRENT LIABILITIES: US$1.006 billion (as of 3/31/01)
PUBLIC SECURITIES: 621.56 million total common shares outstanding
(as of 3/31/01)
AUDITOR: Deloitte & Touche LLP
Av. Ejercito Nacional 6515, Piso 1
Fracc. El Marquez
32530 Cd. Juarez, Chih.
Phone: +52 (16) 18 77 22
Fax: +52 (16) 18 75 94
FINACIAL ADVISORS: Morgan, Lewis & Bockius LLP
101 Park Avenue
New York, NY 10178-0060
Tel: 212-309-6000
Fax: 212-309-6273
http://www.morganlewis.com
* Morgan Lewis represented Empresas ICA in the
acquisition of Cement Producer Company, Blue
Circle PLC. Approximate size of transaction
is $600 Million.
MEXICAN BANKS: Brimco Buys Real Estate Properties For MXN605 MM
---------------------------------------------------------------
Brimco emerged as the winning bidder in the Mexican bank bailout
agency IPAB's recent sale of a package of 3,588 real estate
properties, reports Mexico City daily El Universal. Brimco bought
the properties for MXN605 million, 17 percent more than the
reference value set by sales agency Accenture.
The liquidating auction of the properties owned by Banca Cremi,
Banco Obrero, Banco de Oriente and Banco Union included
participants such as Lone Star US Acquisitions, LLC and Solida
Administradora de Portfolios.
IPAB, which is headed by Julio Cesar Mendez, disclosed that the
package included homes, retail stores, offices and warehouse
spaces located throughout Mexico.
SANLUIS CORPORACION: Nears Debt-Restructuring Of US$20Mln Debt
--------------------------------------------------------------
Mexican car parts manufacturer SanLuis Corporacion may find
itself in a better position after it completes a US$20 million
debt restructuring. The capitalization changes are expected to
happen soon, says Mexico City daily el Economista.
The company's 15 largest creditors, related to the Company's
mining business, include JP Morgan, Banamex, Deutsche Bank and
Hong Kong Shanghai Bank.
However, SanLuis is yet to restructure debt in other areas. The
Company plans to restructure its US$200-million debt related to
its suspension business by the end of April. The conclusion of
this process will enable Sanluis to keeping its three divisions
working while working out further solutions to its debt problems.
CONTACTS: Antonio Madero, CEO (also concurrent chairman)
Francisco Garza Jim, CFO
THEIR ADDRESS:
Monte Pelvoux 220 8th Floor
Lomas de Chapultepec 11000
Mexico, D.F.
Tel. (52) 5229 5800
Fax. (52) 5202 6604
URL: http://www.sanluiscorp.com.mx
AUDITOR
Mariano Escobedo, PricewaterhouseCoopers
573 Rincon del Bosque 11580
Mexico, D.F.
Tel. (525) 263-6047
Fax. (525) 263-6010
=============
U R U G U A Y
=============
BANCO COMERCIAL: Moody's Cuts Ratings; More Downgrades On Review
----------------------------------------------------------------
After completing a review of Banco Comercial S.A.'s ratings,
Moody's Investors Service downgraded the following:
- Long-Term Foreign Currency Debt Rating to Ba3, from Baa3
- Long-Term Foreign Currency Deposit Rating to Ba2, from Baa3
- Short-Term Foreign Currency Deposit Rating to NP, from P-3
These ratings remain on review for downgrade, pending
clarification of shareholder and Central Bank support.
The ratings agency did not decide to further downgrade the
foreign currency debt and deposit ratings at this time because of
what it described as fair-to-good expectations of third party
support, explained Moody's.
Moody's also downgraded Banco Comercial S.A.'s Bank Financial
Strength Rating (BFSR) to E from D+, reflecting the almost
certain need for outside support faced by the bank.
Banco Comercial's exposure to Argentina, which totals some US$500
million, seriously weakens the bank's intrinsic financial
strength. This exposure far exceeds the bank's capital base of
$160 million. Moody's noted that this exposure does not include
any further liabilities that the bank may face as a result of the
alleged improprieties of some members of the bank's senior
management in their additional capacity as officers of Banco
General de Negocios in Argentina.
With total assets of US$2.3 billion and equity of US$174 million
as of September 31, 2001, Banco Comercial is the largest
Uruguayan private-sector bank headquartered in Montevideo.
CONTACTS: Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service (New York)
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
M. Celina Vansetti
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service (New York)
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
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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,
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Copyright 2002. All rights reserved. ISSN 1529-2746.
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