/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020516.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, May 16, 2002, Vol. 3, Issue 96 Headlines A R G E N T I N A BANCO FRANCES: Sells 60% Stake In Uruguayan Bank To BBVA CABLEVISION: Net Loss Widens In 1Q02 On Peso Devaluation PECOM ENERGIA: Gets Approval From IFC On $310-Mln Loan B R A Z I L CESP: S&P Upgrades Currency Ratings On Improved Credit Profile EMBRAER: Anticipates Better Sales Ahead C H I L E COEUR D'ALENE: Cashing Out Debentures With 13.375% Notes COEUR D' ALENE: Jump Starts Cerro Bayo; Reports 1Q02 Results WACKENHUT CHILE: Initiates Liquidation With Sale Of Two Units C O L O M B I A SEVEN SEAS: Reporting Moderately Better Financial Results M E X I C O AHMSA: Creditors Question Ongoing Viability AHMSA: Plant Workers Accept 5.5% Salary Hike DESC: Shares Eclipse 52 Week High Of MXN6.8 GRUPO SIDEK: April Assets Sales Report Shows No Activity SHELDAHL INC.: Investor Group LOI Indicates Asset Purchase - - - - - - - - - - ================= A R G E N T I N A ================= BANCO FRANCES: Sells 60% Stake In Uruguayan Bank To BBVA -------------------------------------------------------- Banco Bilbao Vizcaya Argentaria SA BBVA, the second-largest bank in Latin America, now has 100-percent ownership in Uruguayan bank known as BBVA Banco de Uruguay. According to a report released by Bloomberg, BBVA agreed to pay BBVA Banco Frances of Argentina US$55 million for its 60-percent stake in the Uruguayan bank. BBVA owns 68 percent of Frances, Argentina's No. 5 bank by assets. Frances and other Argentine banks are under pressure to conserve cash from increased withdrawals by depositors until the Argentine government safeguards against a run on banks. BBVA agreed to the purchase because it wanted to include all of Banco de Uruguay in its Latin American consumer banking network, the spokesman said. CONTACT: BANCO FRANCES Maria Elena Siburu de Lopez Oliva Investor Relations Manager, in Argentina Tel. 5411-4341-5035 E-mail: mesiburu@bancofrances.com.ar Maria Adriana Arbelbide Investor Relations Tel. 5411-4341-5036 E-mail: marbelbide@bancofrances.com.ar CABLEVISION: Net Loss Widens In 1Q02 On Peso Devaluation -------------------------------------------------------- Argentina's largest cable television operator CableVision saw its net loss swell to US$555 million (ARS1.774 billion) in the first quarter of the year, compared to a net loss of US$22.7 million in the same period just one year ago. The Company, which now ranks second to YPF with the biggest loss during the period, blamed the devaluation of the peso for its dismal results. Net income in the first quarter shrank to US$59.4 million from US$120.3 million in the same period last year. The country's weakening currency also led Liberty Media Corporation to write off its investment in CableVision early this month. Liberty Media, which co-owns CableVision with Dallas buyout fund, Hicks, Muse, Tate & Furst, at that time said it recorded a US$195-million charge related to its investment in CableVision and reduced the carrying value of its investment to zero. "Our share loss in 2001, when combined with foreign currency translation losses recorded in other comprehensive losses at December 31, 2001, reduced the carrying value of our investment to zero," Liberty Media said in a filing with the SEC. Liberty referred to the decline in value as "nontemporary." Liberty said Cablevision recorded foreign currency translation losses of US$393 million in the fourth quarter of 2001. Standard & Poor's ratings agency recently lowered Cablevision to "default" after it missed a US$36.1 million payment. CONTACT: CABLEVISION Bondpland 1773 1414 Buenos Aires Argentina Tel: 54 11 47786060 Fax: 54 11 47741016 Home Page: www.cablevision.com.ar Contacts: Fabian To de Paul, President Investor relations E-mail: spena@cablevision.com.ar mpigretti@cablevision.com.ar LIBERTY MEDIA CORPORATION 12300 Liberty Blvd. Englewood, CO 80112 Phone: 720-875-5400 Fax: 720-875-7469 Home Page: http://www.libertymedia.com Contacts: John C. Malone, Chairman Robert R. Bennett, President, CEO, and Director Gary S. Howard, EVP, COO, and Director David J. A. Flowers, SVP and Treasurer HICKS, MUSE, TATE & FURST INCORPORATED 200 Crescent Ct., Ste. 1600 Dallas, TX 75201 Phone: 214-740-7300 Fax: 214-720-7888 Home Page: none Contacts: Thomas O. Hicks, Chairman and Chief Executive Officer Charles W. Tate, President John R. Muse, Chief Operating Officer Darron Ash, Chief Financial Officer PECOM ENERGIA: Gets Approval From IFC On $310-Mln Loan ------------------------------------------------------ Argentine energy company Pecom Energia obtained technical approval from the International Finance Corporation (IFC) on its request of a loan worth US$310 million, says Business News Americas, citing an El Cronista report. The loan is expected to be finalized in June. "The loan would ensure that the business plan we planned to implement in Venezuela with resources from Argentina can be covered," a Pecom source said, adding that Pecom would receive the money four to five months after the IFC officially grants the loan. Pecom has invested some US$1.7 billion in Venezuela since 1994, and in 2001, the country made up 13 percent of Pecom's US$1.65 billion receipts and 27 percent of the US$687 million cash flow. Pecom has four producing fields - Oritupano Leona, Acema, La Concepcion and Mata - and one exploration block - San Carlos - in Venezuela, where daily production is some 48,000 barrels of oil equivalent (93 percent oil and 7 percent natural gas). Pecom Energia is the primary asset of Argentine company Perez Companc, and operates in the oil and gas and electric power sectors. The energy company posted a ARS656-million net loss in 1Q02, compared to a net profit of ARS154 million in 1Q01. CONTACT: PECOM ENERGIA S.A. DE PEREZ COMPANC S.A. Maipo 1 - Piso 22 - C1084ABA Buenos Aires, Argentina Phone: (54-11) 4344-6000 Fax: (54-11) 4344-6315 URL: http://www.pecom.com.ar =========== B R A Z I L =========== CESP: S&P Upgrades Currency Ratings On Improved Credit Profile -------------------------------------------------------------- Brazil's Sao Paulo state-based generator Cesp Parana had its local and foreign currency ratings upgraded by international credit ratings agency Standard & Poor's (S&P) to 'BB-' from 'B+'. The ratings were also removed from CreditWatch. S&P said the rating actions mirror an improvement in Cesp's credit profile and the financial agreement following the rationing crisis in Brazil. The foreign currency outlook is negative while the local currency outlook is stable, S&P said. "The outlook for the local currency rating reflects Standard & Poor's expectation that Cesp's good quality assets and strategic location should result in somewhat predictable cash flow, that will be used to amortize debt. The foreign currency outlook reflects that of the sovereign rating of Brazil," S&P said. Concurrently, S&P assigned a 'BB-' rating to the recent US$150- million three-year notes issued under Cesp's US$800-million Euronote program. Cesp, which is Brazil and Latin America's third-largest generator, ended 2001 with net losses of BRL813.3 million, up by 196 percent from the BRL414.3 million recorded in the previous year. Operating cost also widened to BRL1.49 billion from BRL739.5 million. Results were hurt by the energy-rationing program introduced in June last year to help replenish depleted reservoir levels, and by its dollar-denominated debt, which totaled BRL6.53 billion at the end of 2001. CONTACT: CESP-COMPANHIA ENERGETICA DE SAO PAULO Rua da Consolacao, 1.875 CEP 01301 -100 Sao Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.cesp.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director EMBRAER: Anticipates Better Sales Ahead --------------------------------------- Brazilian plane manufacturer Empresa Brasileira de Aeronautica SA (Embraer), which has seen its earnings in the previous quarter hurt by a slumping demand from customers, hopes sales will pick up in the coming months, suggests a report by Dow Jones. Embraer posted a 19-percent decline in its first quarter 2002 net income to BRL176.4 million (US$70 million), or 25 centavos a share, from BRL218.7 million, or 40 centavos, in the same period a year earlier. Interest among Embraer's regional jet clients is reviving, but banks remain wary about extending financing to a troubled global aviation sector. That's holding up potential sales and keeping receivables high for Embraer. The market, though, is hopeful that credit markets will start to open their doors again in coming months, a factor that will give Embraer the chance to start selling again and help fuel gains in its top line in 2003. "Investors know that 2002 is going to be tough, but now the market is focusing on 2003 and hopes it will be better," said Rodrigo Pereira of Banco Pactual in Rio de Janeiro. Embraer preferred shares were up 2 percent at BRL14.12 ($1=BRL2.50) Tuesday afternoon in Sao Paulo, as investors expressed relief that the Company backed its latest delivery targets of 135 planes in 2002 and 145 planes in 2003. CONTACTS: EMBRAER Press office: Phone +55 12 3927 1311 Fax + 55 12 3927 2411 Press office mgr. Bob Sharp Email: bob.sharp@embraer.com.br OR Press officer Wagner Gonzalez Email: wagner.gonzalez@embraer.com.br ========= C H I L E ========= COEUR D'ALENE: Cashing Out Debentures With 13.375% Notes -------------------------------------------------------- Coeur d'Alene Mines Corporation announced Tuesday that it plans to retire the remaining $9.4 million of its outstanding 6% Convertible Subordinated Debentures (the "6% Debentures") on June 10, 2002 with cash. The Company, among other things, has entered into a purchase agreement to issue $21.5 million of new 13.375% Senior Convertible Notes ("New Notes") for $16.0 million in proceeds. The New Notes will be convertible into common stock at a conversion price of $1.35 per share and will be issued on similar terms, subject to certain contingent provisions, as the Company's currently outstanding 13.375% Convertible Senior Subordinated Notes due December 31, 2003. This financing is subject to final documentation and customary closing conditions. Houlihan Lokey Howard & Zukin Capital has served as the Company's financial advisor on this transaction. Since the beginning of 2002, the Company has entered into a series of individually negotiated exchanges under Section 3(a)(9) of the Securities Act, in which an aggregate of $13.7 million principal amount of 6% Debentures have been exchanged for 14.3 million shares of the Company's common stock. As a result of these individual exchange transactions, the Company reduced the outstanding principal amount of 6% Debentures to $9.4 million. Dennis E. Wheeler, Coeur's Chairman, President and Chief Executive Officer stated, "This financing will allow us to retire the Company's outstanding short-term indebtedness, add to our existing cash resources, and put our short-term liquidity concerns behind us." Commenting on Coeur's operating performance, Mr. Wheeler added, "Thanks to our people's tireless work over the past several months, we have substantially reduced our cash operating costs at our Silver Valley and Rochester mines and have commenced production at our low-cost Cerro Bayo mine in Chile one month ahead of schedule. This new mine, combined with our recently acquired high-grade Martha Mine in Argentina, is expected to dramatically increase our silver production this year and achieve our prime objective of developing new low-cost ounces of production." Coeur is a leading low-cost international silver producer, as well as a significant producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Chile, Argentina and Bolivia. CONTACT: COEUR D'ALENE MINES CORPORATION Investor Relations: Michael A. Steeves, 208/769-8155 CONTACT: HOULIHAN LOKEY HOWARD $ ZUKIN CAPITAL, INC. 1930 Century Park West Los Angeles, CA 90067 Phone: 310-553-8871 Fax: 310-553-2173 Home Page: http://www.hlhz.com/rd.asp Contact: Alan Fragen, Managing Director Phone: + 1 310 553 8871 COEUR D' ALENE: Jump Starts Cerro Bayo; Reports 1Q02 Results ------------------------------------------------------------ First Quarter Highlights: -- Produced a total of 2.9 million ounces of silver at cash cost of $4.02 per ounce, which represents a 10 percent increase in production over the first quarter of 2001. -- Completed development of the high-grade Cerro Bayo gold and silver mine that officially commenced production on April 17, 2002 and will boost Coeur's planned 2002 silver production by 33 percent. -- Acquired the high-grade Martha silver mine and 145,000 acres of prime exploration ground in southern Argentina. -- Achieved record silver production at Coeur Silver Valley of 1.5 million ounces at a cash cost of $3.97 per ounce, a decline of nine percent from the first quarter of the previous year. -- Successfully cured the $1.00 per share deficiency to maintain the Company's continued listing on the NYSE. Coeur d'Alene Mines Corporation reported a net loss of $11.8 million or $0.23 per share for the first quarter of 2002 compared to a net loss of $8.1 million or $0.22 per share in the first quarter of 2001. First quarter 2001 results included an extraordinary gain of $3.2 million on the early retirement of $5.0 million principal amount of Coeur's 7 1/4% Convertible Subordinated Debentures. Results for the first quarter of 2002 were positively impacted by increased silver production, reduced depreciation and depletion charges and lower exploration expenses. However, this was offset by increased non-cash interest charges, due to the make whole interest expense associated with the early conversion of a portion of the Company's 13-3/8% Notes, planned increased spending on the San Bartolome feasibility study and an adjustment for the drawdown of the Rochester mine heap inventory. The Company's cost cutting programs reduced overhead expenses by eight percent compared to the first quarter of 2001. Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur commented, "At the beginning of this year, Coeur's prime objectives were to continue to reduce cash costs at our operating silver mines, continue to restructure Coeur's convertible debt and to develop a new generation of high-grade low-cost mining properties to enhance future cash flows and the Company's leading position as a primary silver producer. We are pleased to report significant progress on each of these objectives." First Quarter Results: For the first quarter of 2002, production of silver and gold contained in concentrates and dore was 2.9 million ounces of silver and 16,423 ounces of gold. In the previous year's first quarter, Coeur produced 2.6 million ounces of silver and 26,678 ounces of gold. The increase in silver production was the result of record silver output from Coeur Silver Valley. The decline in gold production was due primarily to the shutdown of the Petorca mine in Chile last year, and lower gold production at the Rochester mine. Total cash costs, including smelter charges, for the first three months of 2002, were $4.02 per silver equivalent ounce, the same as for the first quarter of 2001. Cash costs at Coeur Silver Valley declined from $4.36 per ounce to $3.97 per ounce due to an accelerated underground development program and the successful implementation of the Company's mechanized mining initiative late last year. Cash costs for the latest quarter at Rochester temporarily rose to $4.06 per silver equivalent ounce from $3.88 per ounce in the previous year's first quarter. Revenues from the sale of concentrates and dore declined to $17.0 million in the first quarter of 2002 compared to $18.0 million for the first three months of 2001. The decrease in revenue was attributable to lower gold production, and to a lesser extent, lower realized silver prices. These factors were in turn partially offset by higher realized gold prices and an increase in silver production. During the latest quarter Coeur sold 2.9 million ounces of silver at an average price of $4.45 per ounce and 17,000 ounces of gold at an average price of $291 per ounce. This compares to the sale of 2.6 million ounces of silver and 23,000 ounces of gold at prices of $4.52 and $270 per ounce, respectively, during the first quarter of 2001. At the end of the first quarter of 2002, Coeur had cash and unrestricted short-term investments of $10.7 million compared to $18.2 million at year-end 2001. Operating Highlights: Cerro Bayo Mine (Chile ) Coeur's new Cerro Bayo high-grade gold and silver mine officially commenced production on April 17, approximately one month ahead of schedule. During the start-up phase, the milling facility is processing development ore averaging approximately 0.29 ounces per ton gold equivalent until previously delineated high-grade zones are accessed in late June or early July. At least initially, the bulk of the tonnage mined and processed will be from the Lucero vein. Total production in 2002, including the Martha mine, is forecast at 52,000 ounces of gold and 3.6 million ounces of silver at a cash cost of less than $150 per gold equivalent ounce. The Company is actively drilling previously delineated high-grade zones to increase reserves and discover new mineralized vein structures. Martha Mine (Argentina) Coeur plans to begin transporting high-grade silver ore in late May from the Martha mine to the Cerro Bayo facility for processing. The high-grade Martha mine is expected to contribute 2.3 million ounces of silver to Cerro Bayo in 2002. Preparation of a detailed exploration program for areas in and around the Martha mine is currently under way. Rochester Mine (Nevada) -- World's 7th largest silver mine Coeur's Rochester mine reached a major milestone in the third week of January 2002 when it officially poured over one million ounces of gold and 88 million ounces of silver since commencing production in 1986. The Rochester mine produced 1.4 million ounces of silver and 16,423 ounces of gold in the first quarter of 2002 compared to 1.5 million ounces of silver and 19,457 ounces of gold in the first three months of 2001. In 2001 operations were largely confined to gold-rich sections of the pit, which accounted for the high gold output last year. In January and February of 2002, the Company decided to mine lower grade stockpiled ore while completing a review of the life-of-mine plan. As a result, cash costs for the three month period rose to $4.06 per silver equivalent ounce compared to $3.88 per silver equivalent ounce in the prior year. After completion of this analysis, production has increased and cash costs per silver equivalent ounce decreased sharply to $3.66 in March with further declines realized in April. Coeur Silver Valley (Idaho ) -- World's 11th largest silver mine Silver production at Coeur Silver Valley rose to a record 1.5 million ounces in the latest quarter, up 33 percent from the 1.1 million ounces produced in the first quarter of 2001. Total cash costs during the quarter decreased to $3.97 per ounce, nine percent lower than the $4.36 per ounce recorded in the previous year. The increase in silver output and reduction in cash costs is due to the extensive underground development program carried out last year and the successful implementation of mechanized mining in selected areas of the mine. The accelerated underground development program has provided greater mining flexibility and much better access to the wider, higher-grade vein structures, especially the 72 vein which is currently one of the major sources of silver production. Mine exploration has significantly extended the prominent 117 vein to the 3,100 foot level where subsequent development could significantly lower mining costs. In addition, Coeur is drifting toward the Silver vein on the 2,400 level where reserves of four million ounces of silver have previously been delineated. These recent developments confirm the considerable exploration potential at Coeur Silver Valley both at depth and in areas much closer to the surface. Projects: San Bartolome (Bolivia) The final feasibility study at Coeur's San Bartolome silver property in Bolivia is progressing. Recent results indicate that total cash costs can be reduced to $3.25 per ounce. In addition, exploration and confirmation drilling is under way in conjunction with the implementation of recent process flow sheet improvements. Test results on a portion of the resource base has produced a saleable tin concentrate and a more comprehensive resource-wide review has been commissioned. To date, a total resource of 126.6 million contained ounces of silver has been defined, 93 percent of which is measured and indicated. To see financial statements: http://bankrupt.com/misc/Coeur_d::Alene.txt WACKENHUT CHILE: Initiates Liquidation With Sale Of Two Units ------------------------------------------------------------- Liquidation of Wackenhut Chile's operations is now underway. According to a report by Estrategia, the Company's creditor banks have approved the sale of the Company's subsidiary, Wackenhut Mantenimiento Integral to Central de Restaurantes, for ARS400 million. Additionally, the creditor banks authorized the sale of Wackenhut Servicios Postales to Sinco for ARS300 million. The moves will preserve 4,500 job positions in both subsidiaries, and bring funds to Wackenhut Chile that has 5,000 employees. Other subsidiaries heading for the auction block are GATX APL (logistics) that received an offer from a Wackenhut partner, and Wackenhut Servicios Temporales (temporary labor). Wackenhut Valcorp Servicios (security services) has been acquired by Ingeseg. CONTACT: WACKENHUT CHILE S.A. Av. Berlin 843 Santiago Chile Phone: 562 361 5000 Fax: 562 361 5110 Home Page: www.wackenhut.cl/ Contact: Alfredo Leontic, President =============== C O L O M B I A =============== SEVEN SEAS: Reporting Moderately Better Financial Results --------------------------------------------------------- Seven Seas Petroleum Inc. reported net income of $229,000 or $0.01 per share on a fully diluted basis during the first quarter of 2002, as compared with a net loss of $66,000 or $0.01 per share in the first quarter of 2001. "Record first quarter revenues of $7.8 million continue to demonstrate our financial stability," stated Robert A. Hefner III, Chairman and Chief Executive Officer of Seven Seas. Operations Update The Tres Pasos 7-W, the sixth development of the Guaduas Oil Field, has been completed and is currently producing approximately 600 barrels of oil per day. The Company is planning to stimulate the well to enhance its productive capacity. The Company also announced that it has set 9-5/8-inch casing to a depth of 15,800 feet in the Escuela 2 exploration well. "After successfully running casing, we are anxious to begin drilling the final phase of the Escuela 2 well," concluded Mr. Hefner. 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 Oil and Gas Basin. To see financial statements: http://bankrupt.com/misc/Seven_Seas.txt CONTACT: Bryan Sanchez, Investor Relations of Seven Seas Petroleum Inc., Phone: +1-713-622-8218 =========== M E X I C O =========== AHMSA: Creditors Question Ongoing Viability ------------------------------------------- A steering committee of the creditor banks of Altos Hornos de Mexico SA, which last month broke off talks with the Mexican iron and steel company, is now questioning the ongoing viability of Ahmsa, as the Company is also known. "There were indications that Ahmsa can't meet its business obligations and that its current financial situation has seriously deteriorated and is suffering from liquidity problems," committee spokesperson Ronald Dickens said. Indications include Ahmsa's failure to provide adequate or timely statements on its financial state to the creditor banks and the Mexican and US stock exchanges, and the revelation that the Company owes some US$80 million in back taxes to Mexico's government on top of the US$1.85 billion it owes the banks. The banks have said they would not return to the negotiating table unless Ahmsa makes serious moves to lift the suspension of payments order that has delayed debt restructuring solutions. The banks also expect the company to commit to sorting out its financial situation and replacing its board, Dickens said. According to the spokesperson, the ongoing uncertainty over Ahmsa's future is harming its business and narrowing its options. Ahmsa's coal mining subsidy, Micare, has been unable to close a multimillion-dollar coal supply contract with state electricity company CFE because of the suspension of payments order hanging over both it and Ahmsa. But, while questions have been raised over Ahmsa's ongoing viability, Dickens insisted that liquidation is not in anyone's best interest. "We [the creditor banks] want a restructuring at Ahmsa so that the company is able to continue operating," he said. "The last thing we want to see is mass layoffs and liquidation of the company." Some suppliers and service companies, to which Ahmsa owes millions of dollars, are not so patient. US machinery firm Caterpillar has been pushing for some time for Ahmsa to declare bankruptcy so it can see some compensation. 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 CREDITOR BANKS: BANK OF AMERICA CORPORATION Bank of America Corporate Ctr. 100 North Tryon St., 18th Fl. Charlotte, NC 28255 Phone: (800) 299-2265 Fax: (704) 386-8486 Home Page: http://www.bankofamerica.com Contact: Hugh L. McColl Jr., Chairman Emeritus Kenneth D. Lewis, Chairman, President, and CEO James H. Hance Jr., Vice Chairman and CFO CITIGROUP INC. 399 Park Ave. New York, NY 10043 Phone: 212-559-1000 Fax: 212-793-3946 Email: investorrelations@citi.com Home Page: http://www.citigroup.com Contact: Sanford I. (Sandy) Weill, Chairman and CEO Todd S. Thomson, EVP-Finance and Investments/CFO CITIGROUP IN MEXICO: Banamex Avenida Paseo De La Reforma No. 390, Col. Juarez Mexico City 6695 Mexico Contact: Jose Ortiz-Izquierdo Phone: 52-5225-5136 E-mail: jortiz@banamex.com GRUPO FINANCIERO BANORTE, S.A. DE C.V. Zaragoza 920 Sur 64000 Monterrey, Mexico Phone: +52-81-8831-9720 Fax: +52-81-8831-9727 Home Page: http://www.gfnorte.com.mx Contact: Roberto Gonzalez Barrera, Chairman Othon Ruiz Montemayor, Chief Executive Officer Federico Valenzuela Ochoa, General Dir. Finances AHMSA: Plant Workers Accept 5.5% Salary Hike -------------------------------------------- Workers at Altos Hornos de Mexico SA's (Ahmsa) Planta II have accepted the Company's offer of a 5.5 salary increase. The workers belong to the Mining and Metallurgical Workers Union (STMMSRM). STMMSRM head Raul Hernandez Vega claimed that the 5.5 percent increase does not satisfy the needs of the workers' families, but the union had accepted the offer in the face of the acute financial crisis Ahmsa is going through. DESC: Shares Eclipse 52 Week High Of MXN6.8 ------------------------------------------- Shares of Desc SA, a leading industrial manufacturer with businesses in auto parts and petrochemicals, rose 16 centavos, or 2.5 percent, to MXN6.66 pesos, after reaching a 52-week high of MXN6.8 earlier, says Bloomberg. Early this week, Fitch ratings service upgraded Desc's foreign debt rating to `BBB-'' from ``BB+.'' The rating action was taken due to company "management's ability to preserve credit protection measures during a prolonged period of revenue contraction through a debt repayment program, strict cost-reduction efforts and cash conservation policies," Fitch wrote in a report explaining the upgrade. Despite the extremely challenging economic environment, management was able to reduce net debt by US$164 million during 2001 using a portion of the proceeds from the divestiture of non- strategic assets. At March 31, 2002, the Company's debt totaled US$1.1 billion, representing a reduction from US$1.27 billion at Dec. 31, 2000. In the second quarter of 2002, Desc is seeking to complete the refinancing of approximately US$400 million of short-term debt, which would allow the company to lengthen the debt maturity profile and achieve a reduction in the average cost of debt. At March 31, 2002, Desc had approximately US$160 million in cash and marketable securities. Desc is a diversified holding company and one of Mexico's largest industrial conglomerates, with operations in the automotive parts, chemical, food, and real state businesses. Desc is controlled by the Senderos family. CONTACTS: DESC, S. A. DE C. V. Paseo de los Tamarindos # 400-B Mexico, D.F. 05120 Phone: (5255) 261-80-00 Fax: (5255) 261-80-96 desc@mail.desc.com.mx Arturo D'Acosta Ruz, Chief Financial Officer Tel: (5255) 261 8000 Alejandro de la Barreda, Investor Relations Tel: (5255) 261 8000 ext 2806 abarredag@mail.desc.com.mx Adriana Estrada Vergara, Investor Relations Tel: (5255) 261 8000 ext 2846 aestradav@mail.desc.com.mx GRUPO SIDEK: April Assets Sales Report Shows No Activity -------------------------------------------------------- Grupo Sidek, S.A. de C.V. announced Tuesday a report regarding assets sales from April 1, 2002 to April 30, 2002, pursuant to its obligations under the restructuring agreements entered into with Sidek Creditor Trust: ASSETS SALES REPORT FROM APRIL 1, 2002 TO APRIL 30, 2002 (Figures in US$ thousands) Assets with Reorganization Value higher than USD$ 5,000 Sales Value Reorganization Value I. Hotels 0 0 II. Real Estate 0 0 III. Marinas and Golfs 0 0 IV. Other 0 0 Subtotal 0 0 Assets with Reorganization Value less than USD$ 5,000 Subtotal (transactions) 122 N.A. Total 122 N.A. NA / Not available. CONTACT: Grupo Sidek, S.A. de C.V. Alejandro Giordano Trejo Tel. +52-55-5726-1211 Web site: http://www.sidek.com.mx SHELDAHL INC.: Investor Group LOI Indicates Asset Purchase ---------------------------------------------------------- Sheldahl, Inc. announced Tuesday it has received a letter of intent from Ampersand Ventures, Molex Inc. and Morgenthaler Partners, Sheldahl's three largest shareholders, for the purchase of a substantial portion of its assets under Section 363 sale procedures pursuant to the U.S. Bankruptcy Code. Sheldahl announced earlier this month it had filed a voluntary petition for Chapter 11 reorganization with the U.S. Bankruptcy Court for the District of Minnesota. "This offer would provide Sheldahl the ability to emerge from this process with a strong balance sheet and the financial resources to remain a leader in the interconnect and materials business," said Benoit Pouliquen, President and Chief Executive Officer. "In the coming weeks, we will solicit additional offers from other potential buyers." Sheldahl said the letter of intent is non-binding. The offer includes a majority of the Company's operating assets, contracts and certain obligations necessary to maintaining its operations. Sheldahl said it would retain an investment banking firm to solicit additional offers from other interested parties. The Company said it is expected to complete the bidding process in the next 2 months under guidelines set forth by the bankruptcy court. "During this period of transition, we have continued to meet all customer requirements. We have appreciated the support of our customers and vendors since the filing," said Mr. Pouliquen. About Sheldahl Sheldahl, Inc. is a leading producer of high-density substrates, high-quality flexible printed circuitry, and flexible laminates primarily for sale to the automotive, electronics and data communications markets. The Company, which is headquartered in Northfield Minnesota, has operations and contract assembly operation in Northfield; Longmont, Colorado; Endicott, NY; Toronto, Ontario, Canada; Chihuahua, Chih., Mexico; and Manilla, Phillipines. Sheldahl's Common Stock trades on the NASDAQ National Market tier of the NASDAQ Stock Market under the Symbol: SHELQ. CONTACT: COLTRIN & ASSOCIATES (FOR SHELDAHL, INC.) Matt West, 630/852-6468 Troy McCombs, 212/221-1616 *********** 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 Ma. Cristina Canson, 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *