/raid1/www/Hosts/bankrupt/TCRLA_Public/020321.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 21, 2002, Vol. 3, Issue 57
Headlines
A R G E N T I N A
TELECOM ARGENTINA: More Action Required to Avoid Bankruptcy
B R A Z I L
ANDERSEN: In Talks With KPMG To Merge In Brazil
ANDERSEN: Merger Attempts With KPMG Likely To Hit Snags
EMBRATEL: To Tap Corporate Market in Search of Better Results
GLOBO CABO: Shares Slip Further as New Equity Seen Insufficient
C H I L E
DISPUTADA: Enami Forfeits Right To Buy Control
TELEFONICA CTC: Specific Details of US$274 Suit Revealed
C O L O M B I A
ACES-AVIANCA: Merger Requires US$90 Mln In Fresh Capital
SEVEN SEAS: Provides Production, Drilling Operations Update
M E X I C O
ALESTRA: On S&P's `Special Revision' List; Outlook Negative
BANCO ATLANTICO: IPAB Likely To Assume US$48-Bln Debt
CINTRA: Shareholders Authorize Corporate Restructuring
GRUPO MEXICO: Workers, Management Predict End To Dispute Soon
STANDARD AUTOMOTIVE: Files Chapter 11 To Facilitate Sale
STANDARD AUTOMOTIVE: Company Profile
TELECOMM: Technical Bankruptcy Looms After US$55M Deficit
T R I N I D A D & T O B A G O
BWIA: Union Bucks Company's Announced Layoffs
- - - - - - - - - -
=================
A R G E N T I N A
=================
TELECOM ARGENTINA: More Action Required to Avoid Bankruptcy
-----------------------------------------------------------
Analysts are urging Telecom Argentina to show some deft financial
footwork to avoid bankruptcy this year. The Company, controlled
by France Telecom and Telecom Italia, is struggling to avoid its
financial demise, according to an article released by the
Financial Times.
Telecom Argentina, the country's largest corporate debtor, has
been hard hit by the currency devaluation after being pegged to
the dollar for a decade and is now in a precarious financial
position.
The Company's depositary receipts trade on the New York Stock
Exchange and it also has bonds outstanding, making it a highly
visible victim of the Argentine collapse. Last month, the Company
quietly engaged Morgan Stanley as a restructuring adviser.
Telecom Argentina must make about US$1.2 billion in debt payments
this year - virtually all of it denominated in foreign currencies
and owned by foreign banks or bond investors.
Last year, the Company managed to postpone payment on a chunk of
its US$3.3 billion in outstanding debt. But since January's
default and devaluation, analysts say foreign banks are less
willing to roll over debt, even for well-regarded companies such
as Telecom Argentina. Bond investors seem even less likely to
refinance payments of US$345 million this year.
In Telecom Argentina's case, the bonds are not guaranteed by the
parent companies, and analysts do not expect Telecom Italia or
France Telecom to rescue their troubled unit.
Among the most important issues determining the fate of Telecom
Argentina will be the renegotiation of its charges with the
government.
Regulators must let it raise rates by enough to prevent
bankruptcy, but avoid inflicting large price increases,
especially as it fears fueling already-rising inflation.
The government kicked off that process this week but a deal could
be at least six months away. Worse for the Company, the cash-
strapped government is considering slapping a "windfall tax" on
the privatized utilities to pay for new social programs.
CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
Alicia Moreau de Justo 50
Buenos Aires 1107
Argentina
Phone: +54 11 4968 4000
Home Page: http://www.telecom.com.ar
Contact:
Juan Carlos Masjoan, Chairman
MORGAN STANLEY, DEAN WITTER & COMPANY
1585 Broadway
New York, New York 10036
United States
Phone: +1 212 761-4000
Home Page http://www.msdw.com
Contacts:
Philip J. Purcell, Chairman & Chief Executive
Robert G. Scott, President & Chief Operating Officer
===========
B R A Z I L
===========
ANDERSEN: In Talks With KPMG To Merge In Brazil
-----------------------------------------------
Auditing and consulting firm Andersen, which is currently facing
charges it obstructed justice by shredding papers relating to its
audit of collapsed energy trader Enron Corp., confirmed it is
negotiating to merge with KPMG in Brazil.
If concluded, Andersen will create the largest auditing firm in
Brazil, with 37 percent market share. The deal would topple
PriceWaterhouseCoopers from the current number one position in
the market, with 33 percent share or 147 publicly-held companies
as clients.
Andersen currently ranks second with 27 percent market share or
126 companies. KPMG is the fifth largest in the Brazilian market
with 10 percent or 48 publicly-held companies. Ernst & Young and
Deloitte Touche, third and fourth respectively, have 16 percent
and 14 percent of the Brazilian market.
CONTACTS: (Brazil)
E-mail:
brazil@andersen.com
brazil.careers@andersen.com
Belo Horizonte
Av. Alvares Cabral, 1741 - 9§ andar
Belo Horizonte - MG Brasil
CEP: 30170-001
Phone: 55 31 3330 1300
Fax: 55 31 3330 1400
Curitiba
R. Marechal Deodoro, 717 - 7§ andar
Curitiba - PR Brasil
CEP: 80020-912
Phone: 55 41 223 9511
Fax: 55 41 232 6714
Porto Alegre
Av. Carlos Gomes, 403 - 10§, 11§ e 12§ andares
Porto Alegre - RS Brasil
CEP: 90480-003
Phone: 55 51 3327 8800
Fax: 55 51 3328 3031
Rio de Janeiro
Praia de Botafogo, 300 - 7§ andar
Rio de Janeiro - RJ Brasil
CEP: 22250-040
Phone: 55 21 2559 4141
Fax: 55 21 2552 3253
Sao Paulo
R. Alexandre Dumas, 1981 - Chacar de Santo Antnio
Sao Paulo - SP Brasil
CEP: 04717-906
Phone: 55 11 5185 2444
Fax: 55 11 5181 2911
ANDERSEN: Merger Attempts With KPMG Likely To Hit Snags
-------------------------------------------------------
Chicago-based Andersen's attempt to salvage non-U.S. operations
via a merger with rival KPMG could face major setbacks due to
defections and regulations.
The proposed deal aims to rescue Andersen's businesses outside
the U.S. but, according to accounting industry experts, the firm
could struggle to keep partners on board and get regulators on
their side.
A merger of Andersen and KPMG would create a powerful force, with
about 140,000 staff and US$12.2 billion in revenues outside the
United States. Andersen, the smallest of the Big Five, currently
has 85,000 employees and US$9.3 billion in annual revenues
worldwide, while KPMG has 100,000 staff and revenues of US$11.7
billion globally.
A merger would add about US$5 billion in Andersen non-U.S.
revenues -- just over half its total -- to KPMG, which has US$7.4
billion in non-U.S. revenues. It would add 57,000 Andersen staff
to KPMG's 82,500 outside the U.S.
Andersen has already begun negotiations in various parts of the
world to combine the two firms' operations in Europe, Africa,
Middle East, Canada, Asia and Latin America.
But some partnerships have already been trying to wriggle free.
John Ormerod, a managing partner of the UK business, said the
proposal was backed by the Andersen Worldwide board and had the
support of Andersen people around the world.
"Other options remain and we have considered them, but this is
the best option," Ormerod said.
Nevertheless, accounting industry experts raised questions over
whether Enron-related liabilities could cross the Atlantic to
affect Andersen's partnerships overseas.
"There are questions over the extent to which anything can be
firewalled against stuff coming out of the United States," said
an executive at one of the major accounting firms.
EMBRATEL: To Tap Corporate Market in Search of Better Results
-------------------------------------------------------------
Embratel Participacoes, a leading Brazilian long-distance phone
company, revealed plans to expand in the corporate market. The
move is designed to improve its performance after losing more
than BRL550 million in 2001, reports Gazeta Mercantil. The
company expects to grow between 30 percent and 50 percent in the
sector.
Earlier, Embratel said it was considering the sale of non-
strategic assets in order to raise between BRL100 million and
BRL200 million (US$42 million - US$83 million).
The Company is plans to spend BRL100 million on local telephony
in 2002 following regulatory approval from the government to
operate local services.
Embratel ended 2001 with a BRL554-million loss due to nonpayment
of bills, currency depreciation, and structural changes amid a
slowdown in Latin America's biggest economy.
The Company plans to maintain its debt level at BRL3.7 billion in
2002 and reduce investments by 27 percent to BRL1.1 billion with
cuts in infrastructure spending. Internet spending would remain
on par with 2001 levels.
Furthermore, the Company aims to increase revenue from data
transmission by between 5 and 15 percent in 2002 and combat the
nonpayment of bills, which hit the Company in 2001 by issuing
bills with regional operators.
To see Embratel's financial statements:
http://bankrupt.com/misc/Embratel.doc
CONTACT: Embratel Participacoes S.A.
Silvia M.R. Pereira
Investor Relations
tel: (55 21) 2519-9662
fax: (55 21) 2519-6388
email: silvia.pereira@embratel.com.br
or invest@embratel.com.br
or
Helena Duncan/Mariana Palmeira
Press Relations
tel: (55 21) 2519-3653/3654
fax: (55 21) 2519-8010
email: hduncan@embratel.com.br
or mpalm@embratel.com.br
GLOBO CABO: Shares Slip Further as New Equity Seen Insufficient
---------------------------------------------------------------
Shares of pay television operator Globo Cabo continued on its
sharp downward trend, falling 8.6 percent to BRL0.53, off 25
percent since the Company unveiled a BRL1-billion capital
increase last week.
The company, saddled with about BRL1.6 billion in debt, will
issue new shares that most of its controlling shareholders have
promised to buy. However, investors are nonetheless worried the
Company will still have problems, even if gets the new funds. The
Company's client base shrank nearly 4 percent last year.
Early this week, the Senate said it would call the president of
Brazil's National Development Bank (BNDES) to explain its role in
the Globo Cabo deal. The BNDES, a Globo Cabo shareholder, has
guaranteed up to BRL284 million in the deal, prompting some to
question the ethics of a state-owned bank participating in a deal
to bail out a media company ahead of elections.
Investors are also wondering why Globo Cabo shareholder Microsoft
has opted to stay out of the deal.
"The big question is why Microsoft hasn't taken a position?
Conclusion is that the issue is suffering," said Celso Senise,
director at Banval brokerage. "The issue has plenty of selling
pressure. ... It has room to fall more."
To see financial statements:
http://bankrupt.com/misc/globo_cabo.pdf
CONTACT: GLOBO CABO
Investor Relations:
Luis Henrique Martinez, +5511-5186-2684,
lmartinez@globocabo.com.br
Marcio Minoru, +5511-5186-2811,
minoru@globocabo.com.br
BNDES
Main Office
Av. Republica do Chile,
100 Rio de Janeiro - RJ
Phone: (021) 2277-7447/6978
Home Page: http://www.bndes.gov.br/english/welcome.htm
Contacts: Enterprise Information Center
Main Office
Av. Republica do Chile,
100 - 13 andar - Sala 1301
Tel.: (21)2277-8888
Fax: (21) 2220-2615
Email: contact@bndes.gov.br
=========
C H I L E
=========
DISPUTADA: Enami Forfeits Right To Buy Control
----------------------------------------------
Enami, a Chilean government owned copper company, relinquished
its first refusal right to acquire a 49-percent stake in the
mining major Disputada de Las Condes, controlled by Exxon Mobil.
According to an El Diario report, Enami will offer its rights
instead to Exxon Minerals. Now, the sole potential bidder for
Disputada is Anglo American.
Chilean state owned copper major Codelco had earlier expressed
its intention to bid for Disputada, which is worth an estimated
US$1 billion. However, subsequently, it dropped out of the race,
saying Exxon Mobil had rejected its latest offer. Codelco did not
disclose the amount of its offer but, according to reports, 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 Minera
MacIver 459
Santiago, Chile
Phone: 56(2) 6375278
Fax: 56(2) 6375452
www.enami.cl
TELEFONICA CTC: Specific Details of US$274 Suit Revealed
--------------------------------------------------------
Market observers believe that from the US$274 million
indemnification asked by Telefonica CTC in a case filed against
the Chilean government, US$75 million refers to the publishing
and distribution of the telephone directory Guias Telefonicas,
says El Diario.
Furthermore, Telefonica CTC Chile, the country's largest
telephone company, is also asking US$71 million to cover
technical investment costs as the government obliged it to
relocate switching centers.
Last week, Telefonica CTC Chile sued the government for US$274
million in damages, alleging a government tariff caused it unfair
financial harm.
The move came after two years of unsuccessful requests by CTC to
get the authorities to overturn what it called a faulty pricing
structure.
CTC, which controls 85 percent of the fixed line
telecommunications market in Chile, said a government decree
setting tariffs for the 1999-2004 period resulted in lower prices
for the Company and unfairly damaged its financial health.
CTC's competitors in Chile have criticized the firm for trying to
alter the tariffs, saying it has created uncertainty that is
discouraging investment in the industry.
CONTACT: Telefonica CTC (Corporacion Telefonica Chilena S.A.)
V. Providencia 111
Providencia - Santiago
(56)-Chile
Phone: (2) 2320511
(2) 6912020
Home Page: http://www.telefonicadechile.cl/
Contacts:
Mr. Bruno Philippi, President
Mr. Jacinto DĦaz, Vice President
Gisela Escobar, Head of Investor Relations
===============
C O L O M B I A
===============
ACES-AVIANCA: Merger Requires US$90 Mln In Fresh Capital
--------------------------------------------------------
Colombia's two largest airlines, Avianca and Aces, will need
US$90 million in fresh capital over the next two years to carry
out their merger plans, reports Reuters.
According to Avianca, Colombia's flagship airline, half of the
amount would be raised through a previously-announced preferred
share issue, while the rest of the capital would come from loans.
"Once the integration of the companies is formalized, the capital
requirements for the merged enterprise will reach US$70 million
in 2002 and US$20 million in 2003," Avianca said in a statement.
Avianca and Aces obtained approval to merge from the Colombian
anti-trust regulators on December 12. The decision threw the
airlines a much-needed lifeline that analysts say will help them
cut costs and compete against encroaching international carriers.
The merged company will have a fleet of 56 aircraft, combined
assets of US$700 million and a near-monopoly on domestic routes.
Savings gained from the merger were forecast at between US$60
million and US$100 million annually, Avianca said.
Avianca trimmed its net losses by 32.8 percent in 2001 to
COP278.5 billion, compared with the previous year, in a result
that disappointed local analysts.
Mckinsey & Company designed the merged operation's new
organization. Korn Ferry was hired to work on the merged
operation's employment line-up. At the end of 2001, Avianca
employed 3,500 workers, while Aces employed 2,043.
CONTACTS: Mckinsey & Company
Maipo 1210 - piso 4
1006 Buenos Aires, Argentina
Voice: 54 (11) 4 318 3900
Fax: 54 (11) 4 318 3973
www.mckinsey.com
Korn Ferry International
Contact: Spencer Davis, VP Investor Relations
1800 Century Park East, Suite 900
Los Angeles, CA 90067
Tel. (310) 556-8553
www.kornferry.com
SEVEN SEAS: Provides Production, Drilling Operations Update
-----------------------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced that the Tres
Pasos 6-E well, the fifth Guaduas Oil Field development well, has
been completed and is currently producing approximately 1,000
barrels of oil per day. With the addition of this well, the
Guaduas Oil Field is presently producing approximately 10,400
barrels per day (4,800 barrels per day net to Seven Seas). As
previously reported, gross production from the field is
temporarily curtailed due to high gas-oil ratios on several of
the wells. Gross production from existing wells is expected to
increase by approximately 2,500 to 3,500 barrels per day (1,100
and 1,600 barrels per day net to Seven Seas) in April 2002 when
gas re-injection facilities are installed. Cumulative production
from the Guaduas Oil Field recently surpassed 4 million barrels
of oil.
The Company will commence drilling of the sixth development well,
the Tres Pasos 7-W well, within the next two weeks. This well
will be drilled from the El Segundo 1 surface location to a total
measured depth of approximately 6,700 feet.
The Escuela 2 exploration well to test the Subthrust Dindal
Prospect is currently drilling at a depth of 13,840 feet. Some
of the formations recently encountered have been harder than
expected, slowing the overall penetration rate. This well is
programmed to be drilled to a total measured depth of 18,000
feet.
Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America. The Company's primary emphasis is on the development
and production of the Guaduas Oil Field and exploration of the
Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.
CONTACT: SEVEN SEAS PETROLEUM INC.
Bryan Sanchez, Investor Relations
Tel. +1-713-622-8218
===========
M E X I C O
===========
ALESTRA: On S&P's `Special Revision' List; Outlook Negative
-----------------------------------------------------------
Standard & Poor's (S&P) has reduced the rating of ALESTRA, an
AT&T subsidiary and one of Mexico's leading telecommunications
service providers, in the face of a drop in long distance rates.
S&P placed the Company on the 'special revision' list with a
negative outlook.
ALESTRA has been negotiating to obtain a syndicated loan to pay
its debts, but the uncertainty in the markets regarding the
telecommunications sector in general and the liquidity problems
shown by the Company have affected the firm's ability to obtain
the loan.
ALESTRA is a leading Mexican telecommunications company, offering
broadband and value added services, and the highest standards of
telecommunications technologies. ALESTRA's network provides
seamless access to AT&T's Worldwide Intelligent Network, which
delivers over 250 million data and voice messages daily, to more
than 280 countries and territories.
BANCO ATLANTICO: IPAB Likely To Assume US$48-Bln Debt
-----------------------------------------------------
Representatives of Celia Reyes, who sued Banco Del Atlantico for
MXN440 billion (US$48 billion), confirmed that the Bank Savings
Protection Institute (IPAB) will have to assume the debt if the
bank is declared insolvent.
However, Reyes' legal representatives said that IPAB was not
being sued and this would only happen if Banco del Atlantico were
to be declared bankrupt.
Banco del Atlantico had assets of MXN42.85 billion (US$4.72
billion) and liabilities of MXN40.16 billion (US$4.43 billion) up
to the third quarter of 1997, so it was technically not bankrupt
before Bital took over its administration.
The conflict arose when in 1997 Reyes tried to withdraw two
investments of nearly MXN60 million pesos made at interest rates
of 124.35 percent and 149.35 percent, compounded monthly. The
investments were made in 1988. The bank refused to return the
money saying that the investments were old and the compound
interest had generated huge sums.
A Mexican court has already rejected an appeal by Banco del
Atlantico that it could not pay the US$48 billion, a sum bigger
than Mexico's entire reserves.
CINTRA: Shareholders Authorize Corporate Restructuring
------------------------------------------------------
Shareholders of Cintra, the holding company that controls
Aeromexico and Mexicana airlines, approved a corporate
restructuring paving the way for the holding company's sale,
reports Reuters.
"The aim is to reorganize Cintra subsidiaries to permit the
formation, within the same structure, of two units, and
facilitate the orderly sale of the economic group headed by
Cintra," the Company said in a news release.
The strategy will see the reorganization of Cintra's subsidiaries
into two sub-holdings, Grupo Aeromexico S.A. and Grupo Mexicana
de Aviacion, S..A., which will each have control of operating and
service businesses for the airlines.
The move "does not mean the immediate start of work toward
offering for sale (the two airlines), which remains subject to
approval by corresponding authorities and analysis of market
conditions among other factors," Cintra said.
Aeromexico and Mexicana, with 80 percent of the local market,
were brought under government control during a severe economic
crisis sparked by the botched peso devaluation in late 1994.
In 2000, the Federal Competition Commission (CFC), an anti-
monopoly regulator, said Cintra's assets should be sold to spur
competition in the local market. But the sale was delayed by the
Congress and industry unions for fear of job losses.
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
GRUPO MEXICO: Workers, Management Predict End To Dispute Soon
-------------------------------------------------------------
A strike at Grupo Mexico over pay increase entered its 15th day
Tuesday but, according to a union spokeswoman, the striking union
workers and the executives of the world's No. 3 copper producer
are about to reach a pay deal. Both sides are currently in
negotiations with the government arbitrator, the Labor Ministry,
said the spokeswoman.
"It seems the union might give a little on its salary demands in
return for higher benefits," the union spokeswoman said.
More than 4,000 workers at four units of Grupo Mexico in four
different states walked out more than two weeks ago, demanding
that Grupo Mexico up its offer of a 5-percent salary increase to
between 8 percent and 10 percent.
But Grupo Mexico released a brief statement last week, defending
its 5 percent wage increase offer.
"The proposal would enable the workers to obtain a real increase
in their earnings, which would be slightly above the level of
inflation recorded last year, and of the level expected for this
year," Grupo Mexico said.
Union officials revealed that the strike has shut down operations
at the four units, including a copper mining, smelting and
refining facility at La Caridad, Sonora, and zinc operations in
Zacatecas, Coahuila and San Luis Potosi, among others.
At the San Luis Potosi plant, the impact on production was
limited to zinc, lead and silver, but not copper, Grupo Mexico's
top income producer, according to union sources.
Struggling with a debt load of US$2.5 billion and a decline in
its earnings, Grupo Mexico has adopted strict cost-cutting
measures in recent months, including mine closures and extensive
layoffs.
The Company's operating earnings in the fourth quarter of 2001
were down 125 percent compared to the same period a year ago, and
down 64 percent for the last fiscal year.
The Grupo Mexico workers on strike are from the National Mining
and Metallurgical Union, which represents 200,000 workers in 120
different mines and metal industries in 22 states.
CONTACTS: GRUPO MEXICO S.A. DE C.V
Avenida Baja California 200,
Colonia Roma Sur
06760 Mexico, D.F.
Mexico
Phone: +52-55-5264-7775
Fax: +52-55-5264-7769
http://www.gmexico.com
Contacts:
German Larrea Mota-Velasco, Chairman & CEO
Xavier Garcia de Quevedo Topete, President & COO
STANDARD AUTOMOTIVE: Files Chapter 11 To Facilitate Sale
--------------------------------------------------------
Standard Automotive Corporation (the "Company") (AMEX:AJX)
announced Tuesday that, to facilitate the sale or restructuring
of some or all of its subsidiaries, it, Ajax Manufacturing
Company and certain of its subsidiary holding companies -- CPS
Enterprises, Inc., Barclay Investments, Inc. and Critical
Components Corporation -- have filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York.
Ajax Manufacturing Company was the only operating company
included in the filing. The Company noted that its primary
objective is to minimize the impact of the restructuring process
on its operating companies.
Concurrently, Standard Automotive said it received a proposal for
a commitment for up to $5 million in debtor-in-possession (DIP)
financing from Raymond International, W.L.L. to fund operations
during the process. The proposal and financing provided for
therein would be subject to Court approval. The Company is
optimistic this facility will provide sufficient financial
resources to operate its business as usual during the Chapter 11
process.
"This restructuring process allows time for prospective buyers to
evaluate the Company and its operations while day-to-day business
activities continue without interruption," said John E. Elliott,
II, chairman and chief restructuring officer, who joined the
Company on February 11. "A sale of some or all of the Company's
subsidiaries is in the best interests of all constituents because
it will create greater access to the financial resources
necessary for such subsidiaries to prosper and grow, and have the
least impact on the jobs of their employees." Mr. Elliott noted
over the past few months the Company has held the line on costs
while preliminary discussions have been held with prospective
buyers for all or parts of the Company. He added that the Company
intends to retain, subject to Court approval, Baltimore-based
investment-banking firm Legg Mason Wood Walker, Inc. to help
facilitate the sale.
Mr. Elliott emphasized that daily operations will continue as
usual while the restructuring is completed and expects that
neither employees nor customers of Standard Automotive should
notice any difference in operations as a result of the filing.
"Our facilities will remain open and all aspects of the business
will go on as before the Chapter 11 filing," Mr. Elliott said.
"Our employees will continue to be paid as they always have and
transactions that occur in the ordinary course of business will
proceed as usual."
Standard Automotive is a diversified company with production
facilities located throughout the United States, Canada and
Mexico. Standard Automotive manufactures precision products for
aerospace, nuclear, industrial and defense markets, and it builds
a broad line of specialized dump truck bodies, dump trailers, and
related products.
CONTACT: Sitrick And Company
Maya Pogoda, 310/788-2850
Richard Wool, 212/573-6100
STANDARD AUTOMOTIVE: Company Profile
------------------------------------
NAME: STANDARD AUTOMOTIVE CORPORATION
280 Park Avenue,
21st Floor West
New York, NY 10017
PHONE: (908) 874-7778
EMAIL: jsilane@standardauto.com
WEBSITE: http://www.standardauto.com/
EXECUTIVE MANAGEMENT TEAM:
John Elliott, II, Chairman and Chief Restructuring Officer
Matthew Burris, Chief Financial Officer
James Reindl, Pres., Critical Components Division
INVESTOR RELATIONS: Matt Burris
Phone: 908/874-7778
TYPE OF BUSINESS: Standard Automotive Corporation is a
diversified company with production facilities located throughout
the United States, Canada and Mexico. Standard manufactures
precision products for aerospace, nuclear, industrial and defense
markets; it designs and builds remotely operated systems used in
contaminated waste cleanup; it designs and manufactures trailer
chassis used in transporting maritime and railroad shipping
containers; and it builds a broad line of specialized dump truck
bodies, dump trailers, and related products.
SUBSIDIARIES:
Truck Body/Trailer Division
(Ajax, R/S Truck Body, Co., Inc. and CPS Trailer Co.)
Critical Components Division
(Ranor, Inc., Arell Machining, Ltd., Airborne Gear &
Machining, Ltd., and The Providence Group, Inc.)
SIC: Automotive and Transport - Rail and Trucking Equipment
Manufacturing - Metal Fabrication
EMPLOYEES: 1,002 (last reported count)
SALES: $104.9 million (as of December 31, 2001)
TOTAL ASSETS: $112,584,000 (as of December 31, 2001)
TOTAL LIABILITIES: $129,149,000 (as of Dec. 31, 2001)
REVENUES: $18,232,000 (as of December 31, 2001)
TELECOMM: Technical Bankruptcy Looms After US$55M Deficit
---------------------------------------------------------
Telecomunicaciones de Mexico (Telecomm) is on the verge of
technical bankruptcy following last year's deficit of MXN500
million (US$55 million).
As a result, Undersecretary of Communications Jorge Alvarez Hotch
informed Telecomm's employees that the Secretariat would
eliminate the subsidy that it grants on money orders and Procampo
and Progresa program funds.
According to Manuel Alvarez Arana, the head of the Mexican
Telecommunications Workers Union, the Company's financial
problems were due to the creation of more management positions,
which had resulted in larger salaries for directors. However,
according to Alvarez Hotch, the problems are caused by the
subsidies granted to users.
CONTACT: TELECOMUNICACIONES DE MEXICO
Eje. Central Lazaro Cardenas #567,
Ala Norte, Col. Narvarte
Mexico D.F. 03020
Mexico
Phone: (52)5-629-1100
Fax: (52)5-709-3415
Home Page: http://www.telecomm.net.mx
Contact:
Mr. Carlos Mier Y Teran Ordiales, Director General
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T R I N I D A D & T O B A G O
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BWIA: Union Bucks Company's Announced Layoffs
---------------------------------------------
The Aviation Communication and Allied Workers Union (ACAWU) was
scheduled to hold a meeting early this week to discuss what its
counter measures will be to the retrenchment exercise implemented
by the Trinidad national airline BWIA. ACAWU remains opposed to
the retrenchment plan which sacked 44 workers over the weekend.
BWIA has been reviewing and reorganizing its operations to
deal with the new economic realities of the aviation industry in
the wake of the September 11, 2001 terrorist attacks against the
United States.
The restructuring originally identified 181 surplus positions
company-wide, 150 of which were in the local operations. BWIA
intends to lay off 75 workers in the first phase of the program.
CONTACTS: BWIA West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, Chief Financial Officer (Trinidad)
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Copyright 2002. All rights reserved. ISSN 1529-2746.
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