/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020307.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, March 7, 2002, Vol. 3, Issue 47 Headlines A R G E N T I N A BANCO GALICIA: Shares Tumble On Reports HSBC May Reconsider Bid REPSOL YPF: Commerzbank Predicts Recovery, Liquidity No Problem SCOTIABANK QUILMES: Stays In Argentina But No New Investments SCOTIABANK QUILMES: Argentine Exposure Cuts Parent's Earnings B E R M U D A GLOBAL CROSSING: Creditors Strongly Oppose Asian Bid GLOBAL CROSSING: U.S. Lawmaker Slams Asian Bid GLOBAL CROSSING: Subcommittee To Probe Subsidiary Transaction GLOBAL CROSSING: Federman & Sherwood Files Securities Suit GLOBAL CROSSING: AT&T Denies Interest In Buying Bankrupt Firm B R A Z I L FORMICA CORPORATION: Excludes Brazilian Ops From Ch. 11 Filing TELESYSTEM INT'L: Loses $1.21/Sh; Brazilian Ops Discontinued VARIG: Shareholders To Determine Company's Fate C H I L E DISPUTADA: Codelco May Still Be In The Race For Control C O L O M B I A COLTEJER: Regains Financial Health LICORERA NARINO: Debt Overdose Paves Way To Liquidation M E X I C O BANCA QUADRUM: IPAB Lacks Funds To Cover Contingencies CINTRA: IPAB Confirms Sale Will Happen This Year GUILFORD MILLS: Mexican Collateral Used In Restructuring GUILFORD MILLS: Company Profile - - - - - - - - - - ================= A R G E N T I N A ================= BANCO GALICIA: Shares Tumble On Reports HSBC May Reconsider Bid --------------------------------------------------------------- Banco de Galicia y de Buenos Aires, Argentina's largest private bank, saw its shares plummet 23 percent on Monday to ARS0.345. The downward move comes amid reports that one of the possible buyers, HSBC Holdings Plc, may rethink its involvement in Argentina after exposure there forced the bank to take a US$1.12- billion charge. Investors dumped their Galicia shares after HSBC's chairman, Sir John Bond, told reporters in London that the company's future business in Argentina will depend on both a "credible" domestic economic program from President Eduardo Duhalde administration and a package of "credible" aid from the International Monetary Fund and other lenders. The financially troubled Grupo Financiero Galicia SA unit has been pummeled by a run on deposits amid nationwide financial chaos. The bank put up for sale a substantial part of its loan portfolio to solve its liquidity problems, while Goldman Sachs is seeking a possible buyer. HSBC Holdings Plc, Europe's largest bank by market value, sustained a $1.12 billion divet in full-year profits with its provisions against loans in Argentina. Its pre-tax profits plunged 14 percent to US$8.8 billion compared with US$10.9 billion the previous year. The figure was accentuated by a US$520-million foreign currency trading loss after the Argentine Government's decision to introduce a punishing foreign exchange regime for banks. HSBC also made a general US$600 million provision against other loans in the country. CONTACTS: BANCO DE GALICIA Y BUENOS AIRES Teniente General Juan D. Peron 456, Piso 3 1038 Buenos Aires, Argentina Phone: +54-11-4343-7528 HSBC PRIVATE EQUITY (ASIA), LTD. 68 Upper Thames Street London EC4V 3BJ Phone:(44) 20 7336 9955/(44) 20 7336 9961 www.ib.hsbc.com/PrivateEquity GOLDMAN SACHS 85 Broad Street New York, New York 10004 Phone:(212) 902-1000(P) www.gs.com REPSOL YPF: Commerzbank Predicts Recovery, Liquidity No Problem --------------------------------------------------------------- Commerzbank analyst Doug Leggate believes Spanish oil company Repsol-YPF has significant prospects for recovery in 2002 despite a 57.8-percent drop in profits in 2001, reports Business News Americas. "We don't believe this company has a liquidity problem, and Repsol's management has gotten its act together," Leggate said. "We mark it as a buy because it's a major recovery play," he added. Repsol-YPF completed EUR1.23 billion (US$1 billion) in divestitures last year, including part of its stake in the Edenor pipeline business in southern Argentina for some EUR200 million. Crucially, Repsol retains access to the pipeline, Leggate added. Commerzbank does not believe Repsol-YPF needs to sell core assets, because it does not have a liquidity problem. They don't foresee any major budget cuts in the future either, unless the Argentine government takes the "unlikely" step of freezing oil prices, Leggate said. This government uncertainty also concerns S&P, which downgraded Repsol's long-term corporate credit rating to `BBB' from `B+' on Monday, saying the only dark cloud on the horizon is the possibility that the Argentine government may take further negative actions against oil companies. CONTACTS: REPSOL 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 COMMERZBANK AG Kaiserplatz 60261 Frankfurt am Main Germany Tel. (+49) 69 / 1362 0 Fax. (+49) 69 / 285389 URL: http://www.commerzbank.com/ E-mail: ir@commerzbank.com Contacts: Doug Leggate, Analyst SCOTIABANK QUILMES: Stays In Argentina But No New Investments -------------------------------------------------------------- Bank of Nova Scotia (BNS), Canada's fourth-largest bank, said on Tuesday it has no plans to sell its banking operations in Argentina, reports Reuters. Peter Godsoe, Scotiabank's chairman and chief executive, ensured that it would stand by its commitment with Scotiabank Quilmes, Argentina's 12th largest bank. However, according to Godsoe, the bank is not willing to put any more money into Argentina until the rules are clearer. "We're not trying to sell it off at all. We're trying to stabilize it, keep it running, keep our staff motivated," Godsoe said. "We will try and do what's best for our employees, for our customers and ultimately for the country. "If it doesn't work, it will be because the country has decided to move in different ways as it reinvents itself and its banking system. None of us knows because the laws are not very clear yet." CONTACTS: SCOTIABANK QUILMES Alan Macdonald Chief Executive Officer Phone: (54-11) 4338-8000 Fax: (54-11) 4338-8033 Mail: 6th Floor Gral. J.D. Peron 564 (C1038AAL) Buenos Aires Roy D. Scott Vice-President and Managing Director, Latin America Phone: (54-11) 4394-8726 Fax: (54-11) 4328-1901 Mail: P.O. Box 3955 C1000WBN Correo Central Buenos Aires, Argentina E-mail: scotiarep@sinectis.com.ar AUDITORS: KPMG LLP Av. Leandro N. Alem 1050, Piso 2 C1001AAS-Buenos Aires, Argentina +54 (11) 4316 5700 PRICEWATERHOUSECOOPERS LLP Buenos Aires Office Cerrito 268 C1010AAF Buenos Aires Mail Address : Casilla de Correo Central 896 C1010AAF Buenos Aires Argentina Telephone: [54] (11) 4370 6000, 4370 6700, 4370 6900 Telecopier: [54] (11) 4370 6800, 4370 6339 Cordoba Office PricewaterhouseCoopers Boulevard Chacabuco 492 X5000IIR C>rdoba Telephone: [54] (351) 420 2300 Telecopier: [54] (351) 420 2332 SCOTIABANK QUILMES: Argentine Exposure Cuts Parent's Earnings ------------------------------------------------------------- Scotiabank announced Tuesday that its first-quarter earnings plunged to CAD52 million (5 cents per share), compared to a net income of CAD510 million (95 cents per share) in the same year- ago period. The sharp drop into the Company's earnings came after it took a CAD540-million after-tax charge to cover its Argentine exposure and loans through its Scotiabank Quilmes subsidiary. "The entire Argentine economy, including the financial sector, has been negatively impacted," said Peter Godsoe, Scotiabank's chairman and CEO, in a release. "We continue to work closely with the Argentine authorities and have received excellent support from the Canadian government. However, there is still a great deal of uncertainty concerning the implementation of a comprehensive recovery plan for the Argentine economy, including the financial sector," Godsoe said. The bank's provision for bad loans shot up in the first quarter due to the deteriorating situation in Argentina. The bank took a provision of CAD850 million, or CAD350 million excluding the additional provisions related to Argentina, compared to CAD400 million last year. The provision for the most recent quarter included CAD500 million in relation to Argentine risk. Of that amount, CAD313 million related to Scotiabank Quilmes' loans and CAD187 million was for the Bank's cross-border loans. Return-on-equity tumbled to 0.8 percent from the 17 percent the bank reported one year ago. ============= B E R M U D A ============= GLOBAL CROSSING: Creditors Strongly Oppose Asian Bid ---------------------------------------------------- Creditors of Global Crossing expressed strong opposition to an offer submitted by two Asian companies to acquire the bankrupt company's assets, according to an article published by the New York Times. The creditors deemed the US$750-million offer made by Hutchison Whampoa of Hong Kong and Singapore Technologies Telemedia unacceptable. "We've seen the Asian offer as a stalking horse from the beginning," said one representative of the creditors. "It's good that it's not the only game in town anymore." According to these creditors, the offer from Hutchison and Singapore Technologies does not allow enough time for rival bids to surface. The creditors are also asking for a reduction in the US$40 million breakup fee included in the offer. Recently, a rival bid for Global Crossing emerged from a Los Angeles investment firm, the Gores Technology Group. Although Gores has not provided specific information about its bid or made its offer official yet, the amount is expected to be more than the offer submitted by the two Asian companies. "We're enthusiastic about the expressions of interest we've seen for Global Crossing, and we're considering a host of alternatives including a stand-alone restructuring," Edward Weisfelner, a spokesman for the creditors, said, adding, "We're not prepared to sign on to the bid that was originally proposed." The creditors group has retained Chanin & Company as its advisor. How Hutchison, represented by Goldman, Sachs, and Singapore Technologies, advised by Merrill Lynch, will respond to the creditors is unclear. The Asian companies said earlier that they stand by their original offer. Several other large telecommunications companies, including Verizon Communications and SBC Communications, have reviewed Global Crossing's assets but have not come forward with bids, people close to these companies revealed. Their hesitance is based on the complexity of Global Crossing's business. Global sells capacity on a global fiber optic network to phone companies and large multinational concerns. Uncertainty over investigations of its accounting by the Securities and Exchange Commission and the F.B.I. is also considered negative for would-be bidders. GLOBAL CROSSING: U.S. Lawmaker Slams Asian Bid ---------------------------------------------- U.S. lawmaker, Rep. Dana Rohrabacher (R-California), blasted a bid by Chinese tycoon Li Ka-shing's conglomerate Hutchison Whampoa Ltd., along with a Singapore partner, to rescue bankrupt Global Crossing Ltd., citing national security concerns, the AP reports. Contending that Li's close relations with Beijing should disqualify him from ownership of the telecommunications giant, Rep. Rohrabacher, has sent letters demanding an inquiry to U.S. President George W. Bush, the U.S. attorney general, the Defense Department and the investigative arm of Congress. This is not the first time U.S. conservatives have criticized Li for his Beijing connections. After Panama awarded 25-year concessions to Hutchison in 1997 to operate seaports at both ends of the Panama Canal, some U.S. lawmakers and former military officers accused China of seeking to control the strategic waterway through Li's companies. The U.S. Department of State has said it does not view Hutchison's operations in Panama as any threat to national security. However, since Global Crossing's customers include the Pentagon, the State Department and Microsoft, Hutchison's proposed bailout of the company has raised some of the same concerns. Hutchison denies it is controlled in any way by the Chinese government or military. "We are a multinational conglomerate. We have businesses not just in mainland China but also in 35 other countries around the world. Allegations such as these just don't warrant a comment," said Hutchison spokeswoman Laura Cheung, adding that the company is fully aware its deal must be cleared by various U.S. regulators. GLOBAL CROSSING: Subcommittee To Probe Subsidiary Transaction ------------------------------------------------------------- Carolyn Schwartz, the U.S. trustee who is overseeing the administrative aspects of Global Crossing's bankruptcy proceedings in U.S. Bankruptcy Court in the Southern District of New York, permitted one small class of creditors to establish a subcommittee to investigate a transaction involving a Global Crossing subsidiary acquired in 1999. The Wall Street Journal reports that the claimants hold bonds issued by Frontier, an upstate New York telephone company acquired by Global Crossing in 1999 and renamed as a subsidiary, Global Crossing North America. At stake is US$3.37 billion -- the proceeds from the subsequent sale of a Frontier unit to Citizens Communications Co. in June 2001. According to the bondholders, the Company transferred the proceeds of the unit sale to the parent. The Frontier bondholders now find themselves with no assets since the parent has filed for bankruptcy-court protection. The bondholders claim that the sale proceeds belong with the subsidiary and not the parent. Federal securities filings and Global Crossing executives disclosed that Global Crossing used US$1 billion of the proceeds to repay a bridge loan, and an additional US$1.5 billion to repay debt outstanding under the company's credit facility. It isn't clear how successful bondholders will be in recovering any of the funds. If the subcommittee establishes that the money was improperly transferred to the parent, in a process known as fraudulent conveyance, the Frontier bondholders would theoretically be in a better position to recover something than other unsecured creditors. Other unsecured creditors include bondholders who hold debt issued by Global Crossing itself, and trade creditors, such as Lucent Technologies Inc. or Alcatel, which sold equipment and services to Global Crossing for which they haven't been paid. GLOBAL CROSSING: Federman & Sherwood Files Securities Suit ---------------------------------------------------------- Federman & Sherwood announces that it filed a securities class action lawsuit on behalf of purchasers of the common stock of Global Crossing Ltd. (OTC Bulletin Board: GBLXQ) ("Global Crossing") between February 14, 1999 and October 4, 2001 (the "Class Period"). The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 14, 1999 and October 4, 2001, thereby artificially inflating the price of Global Crossing common stock. Specifically, the complaint alleges that Global Crossing issued a series of statements concerning their businesses, financial results and operations which failed to disclose (i) that Global Crossing was experiencing declining demand for bandwidth; (ii) its operating performance was artificially inflated through erroneous accounting with other telecom companies; (iii) its managed network outsourcing services were declining; (iv) the company was operating at levels well below company- sponsored expectations, such that revenue projections were overstated and costs and expenses were understated; (v) individual defendants and certain Global Crossing insiders sold their personally held Global Crossing common stock generating more than $1.5 billion in proceeds; and (vi) the Company raised over $7 billion in debt and equity offerings. The Company issued announcements on October 4, 2001 overstating cash revenues and expected recurring adjusted EBITDA to be "less than $100 million," compared to forecasts of $400 million. As a result, Global Crossing's shares plummeted to $1.07 per share, a decline of 49%. CONTACTS: FEDERMAN & SHERWOOD William B. Federman, Esq. 120 N. Robinson, Suite 2720 Oklahoma City, OK 73102 Tel: (405) 235-1560 Fax: (405) 239-2112 Email: wfederman@aol.com GLOBAL CROSSING: AT&T Denies Interest In Buying Bankrupt Firm ------------------------------------------------------------- Telephone and cable television giant AT&T Corp. said on Tuesday it has no interest in buying bankrupt telecommunications company Global Crossing Ltd., says Reuters. AT&T's announcement came in response to a Wall Street Journal report, citing unidentified people familiar with the situation, that AT&T is in talks with banks and creditors about a possible bid for all or part of Global Crossing's fiber-optic network. AT&T, however, said it may weigh the purchase of certain assets if the high-speed network Global Crossing operated is ultimately liquidated. "The pieces they have might be interesting, depending on price, if it's liquidated and so forth," AT&T President David Dorman said. "We are just watching it at this point. They (Global Crossing) are mainly interested in people who want to buy the company and we're not interested in buying the company." Global Crossing filed for bankruptcy in January. Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte agreed to pay $750 million to assume control of the Hamilton, Bermuda-based company, but other takeover bids are expected before the April 23 bidding deadline set by the bankruptcy court. =========== B R A Z I L =========== FORMICA CORPORATION: Excludes Brazilian Ops From Ch. 11 Filing -------------------------------------------------------------- Formica Corporation announced Tuesday that it has reached agreement with its secured lender bank group on a credit facility to support the ongoing business operations of the Company. Under the terms of the agreement, the secured lender bank group will provide a debtor-in-possession (DIP), senior secured super priority credit facility for $77,850,000 in the form of a revolving credit loan and letters of credit to provide for the capital and business needs of the Company. This credit facility augments the Company's cash on hand of approximately $22,000,000 for working capital, capital improvements and restructuring expenses of the Company and its international affiliates. To facilitate the restructuring, the Company and its U.S. subsidiaries and parent companies filed Tuesday voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Company's subsidiaries outside of the United States are not part of the filing and it is not anticipated that they will be affected by the filing. Credit Suisse First Boston Private Equity, the majority shareholder of Formica Corporation's parent company, Laminates Acquisition Co. has proposed a restructuring plan to the secured lender bank group under which it would invest an additional $51,000,000 as part of a proposed $100,000,000 investment proposal to pay down the senior secured credit facility. Under the terms of this proposal, secured debt and trade claims would be substantially unimpaired. However, no provision will be made for distribution to senior subordinated notes, preferred stock or common stock holders under the restructuring. The secured lender bank group is considering the proposed restructuring plan. Frank A. Riddick, III, President and Chief Executive Officer of Formica, noted that the Company's operations will continue as usual, without interruption, during the restructuring process. "The restructuring will have no impact on our ability to fulfill our obligations to our employees or to our customers. During the restructuring period and beyond, we will continue to deliver the highest quality products to our customers, on time, to invest in new product and technology, and develop new business," he said. "Our vendors will be paid in the ordinary course for all goods furnished and services rendered subsequent to the filing." Mr. Riddick, who joined the Company as President and Chief Executive Officer in January of this year, emphasized that the Company's operations outside the United States have been excluded from the filing, and thus, there will be no impact on their ability to continue to manufacture product and meet the needs of customers, employees and suppliers. "Like many other companies, Formica has been confronted with serious external and internal challenges due to the recession and the aftershocks of the September 11th tragedy," he said. "We have made significant progress in this difficult environment to strengthen the Company, and the important action we have taken today will enable us to reduce our Company's burdensome loan obligations and related interest expense, strengthen our balance sheet, invest more of the Company's resources in growing and improving the business and compete more effectively. We are confident that Formica will emerge from this process as an improved business." Mr. Riddick continued, "Formica has a brand that is truly an American icon, and it has the designs, innovative products and dedicated employees to propel its growth. In the brief period that I have been at the helm, my initial impression has been confirmed repeatedly that we have a great company with strong prospects. The action announced Tuesday will allow us to focus on our strategic initiatives and expand our ability to provide our customers with the best products in the marketplace." The Company noted that during the restructuring period, no principal will be paid on its prepetition credit facility and no interest will be paid on its 10.875% Senior Subordinated Notes until its reorganization plan defining the payment terms has been approved by the Bankruptcy Court. The entities included in the filing are: Laminates Acquisition Co., FM Holdings, Inc., Formica Corporation, STEL Industries, Inc., Wildon Corporation, Wildon Industries, Inc., Design Communications International, Inc., The Diller Corporation, Formica International Corporation (U.S.A.), and Unidur, Inc. (U.S.A.). Excluded entities are all foreign operating and holding companies in Canada, Mexico, Brazil, Europe and Asia. Formica Corporation, whose owners include Credit Suisse First Boston Private Equity, Citicorp Venture Capital, Ltd. and CVC Capital Partners Limited, was founded in 1913, and is a prominent worldwide manufacturer and marketer of decorative surfacing materials, including high pressure laminate, Ligna(R), DecoMetal(R), Surell(R) and Fountainhead(R) solid surfacing materials, and laminate flooring. CONTACTS: Sitrick And Company Ann Julsen Maya Pogoda 310/788-2850 Richard Wool 908/647-8719 TELESYSTEM INT'L: Loses $1.21/Sh; Brazilian Ops Discontinued ------------------------------------------------------------ In an official company press release, Telesystem International Wireless Inc. (TSE:TIW) (Nasdaq:TIWI) reported Tuesday its results for the fourth quarter and year ended December 31, 2001. Consolidated operating income before depreciation and amortization (EBITDA) was $37.7 million for the fourth quarter of 2001 compared to negative EBITDA of $14.0 million for the same 2000 period. For 2001, EBITDA was $121.6 million compared to $5.4 million for 2000. The healthy EBITDA improvement in 2001 was driven by the strong performance of the Company's cellular operations in Romania - which achieved record subscriber growth and positive operating income for both the fourth quarter and 2001 - and the narrowing start-up losses of its fast growing cellular operations in the Czech Republic. With 566,200 net additions for the fourth quarter, TIW's total cellular subscribers increased 95% to 2,936,000 as of December 31, 2001 compared to 1,508,900 subscribers at the end of 2000. The Company's proportionate subscribers nearly doubled to 673,200 in 2001 - after taking into account the issuance of Units during the year which reduced TIW's economic interest in ClearWave from 100% to 45.5% - compared to 344,000 subscribers at the end of 2000 on a comparable basis. On a pro-forma basis, after giving effect to the February 2002 recapitalization by which TIW increased its economic interest in ClearWave to 85.6%, TIW's proportionate subscribers at year-end 2001 totalled 1,261,000. "Our 2001 results in Romania are truly exceptional with a strong financial performance and the net addition of over 831,800 subscribers for 2001, including a quarterly record of 380,900 net new subscribers for the fourth quarter. In the Czech Republic, we are rapidly growing market share and approaching EBITDA break- even on a quarterly basis less than two years after commercial launch," said Bruno Ducharme, President and Chief Executive Officer of TIW. "During the past year, we have also taken the necessary steps to significantly de-leverage our balance sheet and thereby protect the value of TIW's assets for the benefit of all stakeholders." Results of operations and other operating data for 2001 and 2000 exclude those of the Company's Brazilian minority-owned affiliates, which are now accounted for as discontinued operations. Impact of Recapitalization on Balance Sheet and Income Statement On February 28, 2002, TIW successfully completed a comprehensive financial restructuring and recapitalization which began in 2001. This recapitalization resulted in a reduction in the amount of senior debt and convertible debentures of nearly $700 million and in a significant increase in TIW's economic ownership in ClearWave N.V., through which the Company controls cellular operations in Romania and the Czech Republic. The Company also raised gross proceeds of $66.7 million from the issuance of new equity. As a result of this recapitalization, TIW has strengthened its financial position and asset base. On a pro-forma basis, after giving retroactive effect to the increase of the Company's equity ownership in ClearWave from 45.5% to 85.6% as if it had occurred at the beginning of 2001, TIW's proportionate revenues from continuing operations would have been $237.3 million which is more than 80% higher than actual proportionate results for 2001. On the same pro-forma basis, proportionate EBITDA for the year would have been $73.1 million as compared to actual proportionate results of $27.9 million and proportionate net debt would have amounted to $445.9 million as of December 31, 2002. ---------------------------------------------------------------- Proportionate (1) Consolidated ---------------------------------------------------------------- Pro-forma 2001 2001 2001 ---------------------------------------------------------------- (Unaudited) (Unaudited) (Unaudited) ---------------------------------------------------------------- Subscribers 1,261,000 673,200 2,936,000 ---------------------------------------------------------------- Revenues $237.3 million $130.6 million $526.2 million ---------------------------------------------------------------- EBITDA $73.1 million $27.9 million $121.6 million ---------------------------------------------------------------- Net Debt $445.9 million $358.8 million $826.7 million ---------------------------------------------------------------- (1) Proportionate data reflects the Company's ultimate equity ownership in its operations. See explanatory notes on EBITDA and proportionate figures in the accompanying selected consolidated financial and operating data. APPOINTMENTS TO THE BOARD OF DIRECTORS The Company also announces changes to its Board of Directors, which comprises eight members effective Tuesday. The directors are Daniel Cyr, Jacques A. Drouin, Martin Fafard, Michael R. Hannon, C. Kent Jespersen, Eva Lee Kwok, Jonathan Meggs and Charles Sirois, who continues as Chairman of the Board. Results of Operations Consolidated service revenues for the fourth quarter of 2001 increased 50.0% to $144.7 million compared to $96.5 million for the same 2000 period. EBITDA improved to $37.7 million compared to negative EBITDA of $14.0 million for the fourth quarter last year. This improvement reflects higher EBITDA in Romania, reduced negative EBITDA in the Czech Republic and a reduction in unallocated corporate overhead. Operating income was $2.7 million compared to an operating loss of $39.7 million for the fourth quarter of 2000, while loss from continuing operations was $15.9 million or $1.12 per share compared to a loss of $28.2 million or $2.25 per share. Net loss for the fourth quarter was $68.1 million or $3.66 per share, with most of such loss attributable to loss from discontinued operations in Brazil and Western Europe amounting to $52.2 million. Net loss for the corresponding quarter in 2000 was 68% higher at $114.2 million or $7.70 per share and included a loss of $86.0 million from discontinued operations. For 2001, consolidated service revenues increased 48.9% to $495.2 million compared to $332.5 million for 2000. EBITDA improved to $121.6 million compared to $5.4 million for last year, reflecting the strong performance in Romania and lower negative EBITDA in the Czech Republic. Operating loss was $0.4 million compared to an operating loss of $85.0 million for 2000, while income from continuing operations was $162.4 million or $7.71 per share compared to a loss from continuing operations of $19.7 million or $2.83 per share in 2000. Income from continuing operations for 2001 includes a $238.9 million gain arising from the Company's successful exchange offer to holders of its 13.25% and 10.5% senior discount notes due 2007. Income for 2001 also includes a loss on investment of $10.7 million as compared to a gain of $85.7 million in 2000. The loss on investment for 2001 excludes the $106.1 million gain on the sale of the Company's B-Band affiliates reported earlier in 2001 as the amount has been reclassified to loss from discontinued operations. Total loss from discontinued operations was $416.1 million for 2001 as compared to $335.7 million for 2000 and accounted for most of the Company's net loss for both periods. Net loss for 2001 amounted to $253.7 million or $16.29 per share as compared to $355.4 million or $24.41 per share in 2000. SEGMENTED RESULTS MobiFon S.A. - Romania MobiFon added 380,900 net subscribers for the fourth quarter to surpass the two-million milestone, ending 2001 with 2,003,600 customers. This compares to the net addition of 171,700 subscribers for the fourth quarter of 2000 to reach 1,171,800 subscribers at the end of the year. The pre-paid/post-paid mix at the end of 2001 was 63/37 and the average monthly churn rate for the year was 1.7%. At the end of 2001, the Company estimates MobiFon held a 53% share of the wireless market in Romania. Service revenues increased 21% for the fourth quarter to $99.2 million compared to $81.8 million for the same period last year. SG&A expenses were stable at $27.9 million compared to $27.6 million but declined to 28% of service revenues compared to 34% in the fourth quarter of 2000. EBITDA was $47.5 million, up 40% compared to $33.8 million for the same quarter last year. Operating income rose 31% to $24.7 million compared to $18.8 million for the fourth quarter of 2000. For 2001, service revenues totaled $359.9 million, or 20% higher than $299.5 million for the previous year. SG&A expenses decreased to $88.8 million, or 25% of service revenues, from $96.7 million, or 32% of service revenues for 2000. EBITDA increased 43% to $186.4 million compared to $130.1 million, and EBITDA margin improved to 52%. Operating income was up 69% to $108.6 million compared to $64.2 million for the previous year. Cesky Mobil a.s. - Czech Republic Cesky Mobil added 178,100 net subscribers in the fourth quarter of 2001 to end the year with 858,400 customers, a 185% increase compared to 301,700 subscribers at the end of 2000. The company gained momentum throughout 2001, reflecting the strong awareness achieved by its Oskar brand, launched less than two years ago. Cesky Mobil estimates it accounted for approximately 21% of net additions in the Czech Republic for the year and the company estimates it held a 12% share of the national cellular market at the end of 2001, compared to 7% for 2000. Strong growth was achieved in post-paid subscribers and they accounted for 28.5% of the total customer base at the end of the year. Service revenues increased to $43.3 million compared to $11.9 million for the fourth quarter of last year. Negative EBITDA was reduced to $5.5 million for the quarter compared to negative $28.6 million for the corresponding period in 2000. This strong improvement reflects the revenue impact of rapid subscriber growth and lower SG&A expenses which declined to $19.0 million, or 44% of service revenues, compared to $21.8 million, or 183% of service revenues, in the fourth quarter of 2000. Operating loss declined to $17.6 million compared to $38.5 million a year ago. For 2001, service revenues increased to $125.9 million compared to $21.5 million for 2000, reflecting rapid subscriber growth and the fact that the commercial service roll-out occurred in March 2000. SG&A expenses of $65.9 million represented 52% of 2001 service revenues compared to $63.4 million or 295% of 2000 service revenues. Negative EBITDA was reduced by 49% to $41.6 million compared to $82.0 million last year. Brazil The sale of the Company's two Brazilian B-Band operations in the first quarter of 2001, the abandonment of its Western European SMR and ESMR operations in the second quarter and the recently completed issuer bid for ClearWave Units has emphasized the relative strategic value for TIW of its Central and Eastern European operations (CEE). Pro-forma for the recent increase in ownership of ClearWave fourth quarter 2001 proportionate net subscriber additions in CEE represented 94.6% of total proportionate net additions of all of the Company's cellular affiliates in the fourth quarter 2001. As it relates to its two remaining minority investments in Brazilian A-Band operations, Telemig Celular and Tele Norte Celular, TIW has been reviewing its strategic alternatives for several months. On March 5, 2002, TIW has formally adopted a plan to dispose of its Brazilian operations by way of a sale of its equity interests within the next twelve months. As a result of the adoption of the plan, assets, liabilities and results of operations of the Brazilian cellular joint venture operations have been reported in the Company's consolidated financial statements prepared under Canadian GAAP as discontinued operations for all periods presented. Corporate and Other The Company's wireless operations in India and Mexico, and corporate activities recorded negative EBITDA of $4.2 million for the fourth quarter and $23.3 million for 2001, compared to negative EBITDA of $19.2 million and $42.8 million, respectively, for the corresponding 2000 periods. Unallocated corporate overhead accounted for most of the EBITDA loss for both 2001 and 2000. Liquidity and Capital Resources As of December 31, 2001, the Company held cash and cash equivalents of $85.5 million, including $30.1 million held at the corporate level. Total consolidated indebtedness as of December 31, 2001 was $ 912.2 million, including $ 290.7 million at the corporate level, $261.2 million at MobiFon and $360.3 million at Cesky Mobil. As of December 31, 2001, corporate level indebtedness included $83.5 million due under the Company's bank facility and $203.1 million in 14% senior guaranteed notes and accrued interest thereon. Investing activities for the fourth quarter used cash of $141.8 million, mainly related to the acquisitions of capital assets in Romania and the Czech Republic. For 2001, investing activities used cash of $303.7 million, reflecting investments in the Company's cellular networks in Central/Eastern Europe. Financing activities for the fourth quarter provided cash of $ 119.3 million, including $91.6 million in reversal to cash of amounts which were reported as restricted cash at the end of the third quarter and net proceeds of $14.5 million from a private placement of 24.5 million Special Warrants each convertible into one Subordinate Voting Share or one non-voting preferred share. The private placement was made pursuant to the terms of an agreement between the Company and certain stakeholders entered into during the fourth quarter of 2001 and which led to the successful recapitalization of the Company in February 2002 (the "Agreement"). For 2001, financing activities provided cash of $332.6 million, which includes the net proceeds of $248.6 million from the issue of Units in the first quarter of the year. In February 2002, the Company completed an issuer bid for its CDN $150 million 7% Equity Subordinated Debentures ("ESD"), converted all of its $300 million 7.75% Convertible Debentures ("CD") into shares, raised $51.7 million in gross proceeds and acquired 33.7 million Units from the issuance of equity securities and converted all of its outstanding Multiple Voting Shares into Subordinate Voting Shares. The Company was successful in retiring CDN $145 million in principal amount of ESDs with the issuance of 37.7 million Subordinate Voting Shares, 3.7 million warrants to purchase Subordinate Voting Shares at a price of CDN $1.61 on or before September 30, 2002, 2.5 million warrants to purchase Subordinate Voting Shares at a price of CDN $1.61 on or before March 31, 2003 and the payment of CDN $6.8 million ($4.2 million). Terms of the remaining ESDs were amended to extend their maturity to December 2006, reduce their conversion price to CDN $4.40 per share and reduce the amount of principal to CDN $1.25 million ($0.8 million). The Company converted all of the $300 million CDs and the accrued and unpaid interest thereon into 154.5 million Subordinate Voting Shares and has undertaken to issue to certain holders warrants to purchase up to 15 million shares at a price of $1.00 on or before September 30, 2002. In connection with the Company's exchange offer to the holders of Units and the financing commitments under the Agreement, the Company acquired 33.7 million Units each including one subordinate voting share of ClearWave N.V. and raised $51.7 million in gross proceeds from the issuance of an aggregate of 269.2 million Subordinate Voting Shares and Special Warrants, 4.8 million warrants to purchase Subordinate Voting Shares at a price of $1.00 on or before March 31, 2003 and 8.5 million warrants to purchase Subordinate Voting Shares at a price of CDN $1.59 on or before March 31, 2003. The acquisition of Units resulted in an increase in TIW equity and voting interest in ClearWave to 85.6% and 94.9% respectively. As of February 28, 2002 and following the recapitalization, the number of shares and share equivalents outstanding was 502.2 million. With all options and warrants exercised and all convertible securities converted, total number of shares issued would be 539.8 million. Also in February 2002 and as part of its recapitalization plan, the Company reduced the amount owing under its corporate credit facility by $8.5 million to $75.0 million and amended the terms of the facility to allow for extensions of its maturity to up to December 15, 2002. Considering the short term maturity of the corporate credit facility, committed cash obligations of the Company for the upcoming 12 months exceed its committed sources of funds and cash on hand. ABOUT TIW TIW is a global mobile communications operator with over 2.9 million total subscribers worldwide. The Company's shares are listed on the Toronto Stock Exchange ("TIW") and NASDAQ ("TIWI"). CONTACTS: TELESYSTEM INTERNATIONAL WIRELESS INC. Mark Boutet, Vice-President, Communications TEL: (514) 673-8406 Email: mboutet@tiw.ca Andre Gauthier, Vice-President, CFO TEL: (514) 673-8493 Email: agauthier@tiw.ca Internet: www.tiw.ca VARIG: Shareholders To Determine Company's Fate ----------------------------------------------- Shareholders of the Brazilian group Varig are to decide the group's future in a meeting, which is yet to be scheduled, reports O Estado de Sao Paulo. Varig group is grappling with its accumulated liabilities of nearly BRL2 billion. The group's chairman, Ozires Silva, already has three proposals aimed at getting the group back to its financial health. These proposals will be studied by the chairmen of each of the companies - airlines Varig, Rio Sul, Nordeste and others -- which comprise the Varig group. VARIG CONTACTS: VARIG Brazilian Airlines, Miami Jeff Kriendler, 305/866-2115 email: jkriendler@aol.com Legal Department: Rua 18 de Novembro nr. 800 Navegantes Zip : 90240-040 City : Porto Alegre / RS - Brazil Telephone numbers: (51) 358-7039/7040 (51) 358-7010/7042 INDEPENDENT ACCOUNTANTS Arthur Andersen S/C Rua Alexandre Dumas 1981 Cep: 04.717-906 - Centro / Sao Paulo / S P- Brazil Tels.: (11) 5504-8200 Fax: (11) 5504-8373 INVESTOR RELATIONS MANAGER/STOCKHOLDER SERVICES Leir s Stortti E-mail: leir.stortti@varig.com.br Av. Almte. Silvio de Noronha, n 365 - Bloco "A" - s/416 Centro - Rio de Janeiro - RJ Cep.: 20021-010 Tels.: (21) 3814-5401/5402/5403/5415 Fax: (21) 3814-5543 ========= C H I L E ========= DISPUTADA: Codelco May Still Be In The Race For Control ------------------------------------------------------- Chilean state owned copper major Codelco is still in the running to win control of Exxon Mobil's copper company Disputada de las Condes. The news comes in contrast to an announcement last week that it was pulling out of the contest, reports El Diario. Codelco's alternatives to win the asset, worth an estimated US$1 billion, continue since fellow state owned Enami has a refusal right on Disputada won in 1978 as it sold to it a copper reserve in the Metropolitan Region in a US$93-million deal. Enami has the option to acquire 49 percent in the Company in the event Exxon puts it up for sale. Codelco pulled out from the race last week, saying Exxon Mobil had rejected its latest offer for the company's two Chilean copper mines and smelter. Codelco would not disclose the amount of its offer but Chilean newspapers have quoted unnamed market sources in recent weeks as saying it had offered up to $1.2 billion. Disputada runs the Los Bronces and El Soldado copper mines and a smelter called Chagres in central Chile. Codelco was especially interested in the Los Bronces deposit, which at 43 miles (70 km) northeast of Santiago is next door to its Andina mine. CONTACTS: CODELCO - CORPORACION NACIONAL DEL COBRE Hu�rfanos 1270 Santiago, Chile Phone: 56(2) 690 3000 Fax: 56(2) 690 3059 www.codelco.cl ENAMI - Empresa Nacional de Miner�a MacIver 459 Santiago, Chile Phone: 56(2) 6375278 Fax: 56(2) 6375452 www.enami.cl =============== C O L O M B I A =============== COLTEJER: Regains Financial Health ---------------------------------- Colombian textile group Compania Colombiana de Tejidos (Coltejer) managed to reverse its COP65.505-billion loss of 2000 by posting a profit of COP8.714 billion in 2001. According to a South American Business Information report, the money will be used to offset losses posted in the previous years. Coltejer was able get back in the black after it benefited from a plunge in international textile purchasing and successful anti- contraband campaigns. The firm's debt restructuring program has already led creditors such as Magnun Logistics, Intergrupo Limitada, Industria del Maiz and Trenzados Medellin, to recharacterize certain amounts owed. In December 1999, in view of its incapacity to meet the volume of debt, interest rates, and other conditions of remuneration, a Reorganization Agreement was executed in favor of Coltejer for the purpose of maintaining it as a source of payment of its debt and avoid its liquidation, under the provisions of Ley 550. Economic Intervention Law (Ley 550) is a Colombian regulation allowing indebted firms to seek out debt restructuring. Colombiana de Tejidos S.A. (Coltejer) CRA. 42 # 54A - 161 Autopista Sur Itagui, Colombia Tel. (57) 3731133 Website: http://www.coltejer.com.co LICORERA NARINO: Debt Overdose Paves Way To Liquidation ------------------------------------------------------- Colombian liquor firm Licorera Narino will be liquidated due to bad management, reports South American Business Information. The 54-year old firm racked up debts totaling COP13.7 billion. Before its demise, the firm could produce 600,000 bottles per month, but now, it will end its existence after running at only 27 percent of capacity. A sales contract with Consorcio Galeras, formed by La Cigarra (a carbonated drinks producer) and Metalicas Modernas (an 'electrodomestics' manufacturer) yielded the company bad results. Company executive Dora Lucia Chamorro had to spent a year in jail over the deal. The firm's COP4.2-billion investment in a plant, which didn't function for ten years, also added up to the Company's troubles. The Company also reportedly gave away an estimated COP11.32 billion in drinks at public events. =========== M E X I C O =========== BANCA QUADRUM: IPAB Lacks Funds To Cover Contingencies ------------------------------------------------------ Bank Savings Protection Institute (IPAB), which is responsible for the liquidation of Banca Quadrum, doesn't have enough funds to cover financial contingencies, according to an article released by Apro Newswire. Julio Cesar Mendez, executive secretary of the Institute, said that IPAB has just MXN3.5 billion (US$385 million) in reserve -- barely sufficient to cover the needs of a financial emergency due to the growth in the banking system. M�ndez said that the IPAB fund would be used for the payment of depositors as a result of the bank's liquidation, adding that deposits were assured by IPAB. Banca Quadrum currently has 1,000 clients. IPAB has designated the consultancy KPMG as representative to liquidate Banca Quadrum. IPAB was tasked to liquidate Banca Quadrum after the bank's shareholders failed to find a new partner, nor inject the much- needed MXN850 million (US$93.5 million) into the ailing bank. To see Banca Quadrum's financial statements: http://bankrupt.com/misc/Bancaquadrum.doc CONTACTS: BANCA QUADRUM Ernesto Rodriguez, Investor Relations Tel. +011-52-55-5284-5693 Email: erodrigu@quadrum.com.mx KPMG - Ciudad de M�xico Bosque de Duraznos N�m. 55 Bosques de las Lomas 11700 M�xico, D.F. Tel.: +(55) 5246 83 00 Fax.: +(55) 5596 80 60 Contacts: Guillermo Garc�a-Naranjo, General Director Phone: +(55) 52 46 8320 Email: garcia.guillermo@kpmg.com.mx CINTRA: IPAB Confirms Sale Will Happen This Year ------------------------------------------------ Mexican Bank Savings Protection Institute (IPAB) confirmed that Cintra, controlling company of airlines Aeromexico and Mexicana, will probably be sold this year, Mexico City daily el Economista reports. However, the agency is calling on the federal Competition Commission to revise the sale once again, because conditions in the air industry have changed drastically. Julio Cesar Mendez, executive secretary of IPAB, said that the process should be carried out "as soon as possible, to diminish the costs that IPAB has in terms of liabilities." IPAB is looking to sell its 51-percent owned Cintra in a bid to recover MXN18 billion (US$1.98 billion) this year from sales of assets. Should the institution fail to sell Cintra, its present debt of more than MXN174 billion (US$19.16 billion) will continue to grow. CONTACTS: CINTRA Jaime Corredor Esnaola, Chairman Juan Dez-Canedo Ruiz, CEO Rodrigo Ocejo Rojo, CFO Xola 535, Piso 16, Col. del Valle 03100 M,xico, D.F., Mexico Phone: +52-5-448-8050 Fax: +52-5-448-8055 OR C.P. Francisco Cuevas Feliu, Investor Relations Xola 535, Piso 16 Col. del Valle 03100 M,xico, D.F. Tel. (52) 5 448 80 50 Fax (52) 5 448 80 55 infocintra@cintra.com.mx AEROMEXICO Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or mweitzman@aeromexico.com MEXICANA DE AVIACION Jenny Jenks, Marketing Director, International Division of Mexicana Airlines, +1-210-491-9764, or ennyjenks@mexicana.com GUILFORD MILLS: Mexican Collateral Used In Restructuring -------------------------------------------------------- Guilford Mills, Inc. (OTC Bulletin Board: GFDM) announced Tuesday that it has reached an agreement in principle with its senior lenders on a restructuring of the Company's approximately $270 million senior indebtedness. Under the restructuring, the Company's outstanding senior debt will be reduced to approximately $145 million. Under the plan, the Company's unsecured trade creditors will be paid in full. John A. Emrich, the Company's President and Chief Executive Officer, said "We are extremely pleased to reach an agreement in principle with our senior lenders which will significantly de- leverage the Company's balance sheet. Our substantially completed operational restructuring, together with the financial restructuring announced Tuesday, will help to ensure the financial stability of the Company and allow the Company to focus on growing its core operations - the worldwide automotive business which is a critical supplier to the OEMs, an industrial fabric business which has a portfolio of exciting new products, and a strategic apparel operation in Mexico." Mr. Emrich added "The agreement in principle with our senior lenders will allow the Company to reduce its debt to acceptable levels and positions the Company for success and continued growth in its core operations. We are gratified that our senior lenders have confidence in our business plan and have agreed to support the Company in effecting a successful recapitalization." To conclude the restructuring as quickly as possible, the Company will file a pre-arranged reorganization proceeding under Chapter 11 of the Bankruptcy Code. Certain of the Company's senior lenders will provide to the Company an approximately $30 million debtor-in-possession revolving credit facility, subject to their borrowing base due diligence. Under the reorganization plan, all of the Company's currently outstanding common stock will be cancelled, and the Company will then immediately issue to its current senior lenders and to its existing stockholders shares of Company common stock representing 90% and 10%, respectively, of the Company's total outstanding common stock. The Company's Board of Directors will be reconstituted to reflect the new equity ownership. For the one year period commencing on the date of the plan's confirmation, the Company will not sell all or any substantial part of its assets or enter into any other business combination transaction without the unanimous approval of the Board of Directors. Upon confirmation of the Company's restructuring plan by the Bankruptcy Court, the Company's debt structure will consist of a three-year revolving credit facility and a three-year term loan totaling $145 million. Both the revolver and term loan, like the Company's current senior debt facilities, will be secured by substantially all of the Company's domestic assets and certain shares of stock the Company holds in its foreign subsidiaries. The Company will transfer the assets of its discontinued operations to a trust or similar vehicle from which the senior lenders will receive the liquidation proceeds. Up to $10 million of a deficiency, if any, between the amount realized and $70 million will be guaranteed by the Company. In addition, the Company has agreed to transfer certain stock the Company holds in a Mexican subsidiary in order to further secure the obligations of the trust. The agreement in principle remains subject to, among other conditions, the formal credit approval of the senior lenders and the execution of definitive documentation. The Company expects to file its pre-arranged Chapter 11 case within the next few weeks and to emerge with a confirmed Chapter 11 plan by early Summer. Mr. Emrich noted that, "The reorganization will preserve a portion of the Company's equity for our current shareholders and protect our unsecured trade creditors. With a successful operational restructuring completed and the Company on the verge of concluding a recapitalization, Guilford and its associates can look forward to a bright future." Rothschild Inc. is serving as a financial advisor to the Company in connection with the reorganization. Guilford Mills is an integrated designer and producer of value- added fabrics using a broad range of technologies. The Company is one of the largest warp knitters in the world and is a leader in technological advances in textiles, including microdenier warp knits and wide width circular knits of cotton blended with LYCRA(R). Guilford Mills serves a diversified customer base in the apparel, automotive and industrial markets. CONTACT: GUILFORD MILLS INC. John A. Emrich, Chief Executive Officer, Tel. +1-336-316-4000 GUILFORD MILLS: Company Profile ------------------------------- NAME: Guilford Mills, Inc. 4925 West Market Street Greensboro, NC 27407 PHONE: (336)316-4000 Fax: (336)316-4059 WEBSITE: http://www.guilfordmills.com EXECUTIVE MANAGEMENT TEAM: Charles A. Hayes, Chairman John A. Emrich, CEO Kim Thompson, Vice President & CFO Mark E. Cook, Treasurer Robert A. Emken, Jr., Gen. Counsel & Secretary INVESTOR RELATIONS: Kim Thompson, Vice President & CFO Guilford Mills, Inc. 4925 West Market Street Greensboro, NC 27407 Phone: (336)316-4000 TYPE OF BUSINESS: Guilford Mills (OTC BB:GFDM.OB) is an integrated designer and producer of value-added fabrics using a broad range of technologies. The Company is one of the largest warp knitters in the world and is a leader in technological advances in textiles, including microdenier warp knits and wide width circular knits of cotton blended with LYCRA(R). Guilford Mills serves a diversified customer base in the apparel, automotive and industrial markets. SIC: Knitting Mills [2250] EMPLOYEES: 4454 REVENUE: US$137.6 Mln (as of 12/30/01) TOTAL CURRENT ASSETS: US$214.4 Mln (as of 12/30/01) TOTAL CURRENT LIABILITIES: US$360.6 Mln (as of 12/30/01) PUBLIC SECURITIES: 18,658,204 shares of common stock outstanding LATEST FINANCIAL STATEMENTS: http://bankrupt.com/misc/Guilford_Mills.txt FINANCIAL ADVISOR: Rothschild Inc. 1251 Avenue of the Americas 51st floor New York, NY 10020, USA Phone: (212) 403 3500 Fax: (212) 403 3501 http://www.nmrothschild.com AUDITOR: Arthur Andersen LLP 33 W. Monroe Chicago, IL 60603 Phone: (312) 580 0033 Fax: (312) 507 6748 ADMINISTRATIVE AGENT: Wachovia Bank, N.A. 301 South College St. Charlotte, NC 28288-0206 Phone: (704) 374-2137 SYNDICATION AGENT: First Union National Bank 301 South College St. Charlotte, NC 28288-0206 Phone: (704) 374-2137 Contacts: Colleen McCullum, Senior VP DOCUMENTATION AGENT: BANK ONE, N.A. 1 Bank One Plaza Chicago, IL 60670-0738 Phone: (312) 732-4812 Contacts: C. Dianne Wooley, First VP SEVENTH AMENDMENT TO AND LIMITED WAIVER UNDER CREDIT AGREEMENT: View here - http://bankrupt.com/misc/SEVENTHAMENDMENT.txt *********** 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. 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. 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