/raid1/www/Hosts/bankrupt/TCRLA_Public/020718.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, July 18, 2002, Vol. 3, Issue 141
Headlines
A R G E N T I N A
ACINDAR: S&P Sees Difficulties Clouding Restructuring Efforts
TELECOM ARGENTINA: Appoints Former Repsol Top Exec. As New CEO
B E R M U D A
GLOBAL CROSSING: Offers Abound Despite Gloomy Telecom Outlook
TYCO INTERNATIONAL: Kaplan Fox Files Securities Class Action
B R A Z I L
BRAZILIAN CORPORATES: Fitch Expects Mounting Liquidity Concerns
CEMIG: Delays Annual Report Pending US$519M AR Negotiation
ESCELSA: Moody's Revises Rating Outlook To Negative
NET SERVICOS: Makes Required `Relevant Notice' of Share Issue
C H I L E
AES GENER: Moody's Reviewing Ratings Possible Downgrade
TELEFONICA CTC: To Sue Over Line, Services Sabotage
C O L O M B I A
CHIVOR SA: Gets OK to Hire Chadbourne & Parke as General Counsel
M E X I C O
AEROMEXICO: Fleet Replacement Talks Underway With Airbus, Boeing
GRUPO RADIO: Legal Issues, Uncertainty Pull Down Shares
GRUPO TMM: Completes Review For Reclassification Of Shares
PEGASO: Competitors' Objection to Telefonica Takeover Shunned
T R I N I D A D & T O B A G O
VINTAGE PETROLEUM: Updates Oil Hedge Position
U R U G U A Y
GALICIA URUGUAY: Central Bank Delays Takeover Until July 23
- - - - - - - - - -
=================
A R G E N T I N A
=================
ACINDAR: S&P Sees Difficulties Clouding Restructuring Efforts
-------------------------------------------------------------
Acindar Industria Argentina de Aceros's efforts to accelerate a
restructuring of its debt are likely to hindered by the
"prevailing uncertainties" in the country, suggests international
crediting rating agency Standard & Poor's in a report.
The Argentine steel maker, which has been hit hard by the decline
in the value of the local peso currency this year compared to the
US dollar, is trying to renegotiate its debt, most of which is in
dollars. The company has retained Credit Suisse First Boston
(CSFB) to assist in negotiating a plan.
However, according to S&P analyst Silvina Aldeco-Martinez, in
terms of exports, Acindar could benefit from Argentina being
excluded from US safeguards on steel imports.
Acindar posted a net loss for the three months ending March 31 of
ARS384 million (currently about US$107 million), compared to a
loss of ARS41.6 million in same-period last year, and negative
net worth of ARS252 million. It defaulted on a bond repayment in
February this year.
The company, controlled by the Acevedo family and Brazil's long
products steel maker Belgo-Mineira, had total debts as at the end
of last year of some US$550 million.
CONTACTS: ACINDAR S.A.
Jose I. Giraudo, Investor Relations Manager
Phone: (54 11) 4719 8674
Andrea Dala
Investor Relations Officer
Phone: (54 11) 4719 8672
URL: http://www.acindar.com/index.htm
TELECOM ARGENTINA: Appoints Former Repsol Top Exec. As New CEO
--------------------------------------------------------------
Telecom Argentina Stet France Telecom SA, named Carlos Alberto
Felices, a former top financial executive at Repsol-YPF SA, as
its new chief executive.
Felices, 57, will replace Susana Malcorra, who was ousted from
the post earlier this month after the Company defaulted on US$3.2
billion in debt in April, the largest by a company in Argentina
since the government devalued the currency in January.
"Felices is a logical choice for a company whose main problem is
financial," said Rafael Ber, an analyst at Argentine Research.
"The important thing is the market knows him well and believes he
will be able to work with Morgan Stanley on priority number one,
which is the debt restructuring."
Morgan Stanley & Co. has been hired to help the Company
restructure its debt, Telecom Argentina said in a statement.
Telecom Argentina lost ARS2.3 billion (US$650 million) in the
first quarter, the second-biggest loss since it began operating
in Argentina in 1990, after the government devalued the currency
and barred companies from raising rates in an effort to curtail
inflation.
The drop in revenue made it impossible for Telecom Argentina,
which is 54.7%-owned by Nortel Inversora SA, a partnership of
France Telecom and Telecom Italia, to pay back its debt.
In March, France Telecom said it wrote down the entire value of
its stake in Telecom Argentina, or ARS360 million ($356 million)
and was giving up control.
Telecom Argentina's local shares, which are down about 70% over
the last year, rose by 1.6% to 65 centavos in Tuesday trading.
CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA (TELECOM)
Alicia Moreau de Justo 50, 10th Floor
Capital Federal (1107) Repoblica Argentina
Phone: +54 11 4968 4000
Home Page: http://www.telecom.com.ar
Contacts:
Alberto J. Ricciardi, Chief Financial Officer
Elvira Lazzati, Finance Director
Pedro Insussarry, Investor Relations Manager
Phone: (5411) 4968-3626/3627
Fax: (5411) 4313-5842/3109
Email: inversores@intersrv.telecom.com
MORGAN STANLEY, DEAN WITTER & COMPANY
1585 Broadway
New York, New York 10036
United States
Phone: +1 212 761-4000
Fax: (212) 761-0086
Home Page http://www.msdw.com
Contacts:
Philip J. Purcell, Chairman/Chief Executive
Robert G. Scott, President & Chief Operating Officer
Investor Relations
E-mail: indivfeedback@morganstanley.com.
Phone: (212) 762-8131
=============
B E R M U D A
=============
GLOBAL CROSSING: Offers Abound Despite Gloomy Telecom Outlook
-------------------------------------------------------------
Defying an increasingly weak outlook in the telecommunications
industry, Bermuda-based Global Crossing Ltd. attracted several
offers for its assets, Associated Press reports.
Among the companies who submitted bids for the entire company or
pieces of its fiber optic network, are Gores Technology Group, a
Los Angeles-based investment firm, which filed last week a
combined offer with local financier Platinum Equity. At least
three groups have registered to bid.
John Legere, Global Crossing's chief executive officer, refused
to particularly name the number of bidders, nor the name of the
companies, which complied with the July 11 deadline. He
mentioned, though, that they included telecommunication and
financial firms.
In May, the Company's executive said there are more than 60
interested parties.
Accounting scandals in the telecom industry, particularly
Worldcom's, is expected to lower the value of Global Crossing's
network, as other telecoms may also consider selling assets, says
AP. Legere, however, considers Worldcom's woes advantageous as
they clear the Company's way for competition in the Internet
traffic market.
Global Crossing filed Chapter 11 bankruptcy case in the United
States Bankruptcy Court for the Southern District of New York in
January. The company's 100,000-mile fiber optic network connects
200 cities around the world.
To see latest financial statements:
http://bankrupt.com/misc/GlobalCrossing.htm
CONTACT: GLOBAL CROSSING
Press Contacts
Tisha Kresler
Phone: + 1 973-410-8666
E-mail: Tisha.Kresler@globalcrossing.com
Kevin Burgoyne
Latin America
Phone: + 1 305-808-5925
E-mail: Kevin.Burgoyne@globalcrossing.com
Mish Desmidt
Europe
Phone: +44 (0) 7771-668438
E-mail: Mish.Desmidt@globalcrossing.com
Analysts/Investors Contact
Ken Simril
Phone: + 1 310-385-3838
E-mail: investors@globalcrossing.com
TYCO INTERNATIONAL: Kaplan Fox Files Securities Class Action
------------------------------------------------------------
Kaplan Fox (kaplanfox.com) has filed a class action suit against
Tyco International, Ltd. ("Tyco" or the "Company") and certain of
its officers and directors, in the United States District Court
for the Southern District of Florida.
The suit is brought on behalf of all persons or entities who
purchased or otherwise acquired Tyco securities between May 1,
2002 and June 12, 2002, inclusive (the "Class Period").
The complaint alleges that Tyco and certain of its officers and
directors violated the federal securities laws. Specifically, the
complaint alleges that during the Class Period defendants failed
to disclose Tyco's practice of engaging in related-party
transactions with Tyco's own officers and directors, including
(a) interest-free loans Tyco made to employees, including
Defendant Kozlowski, for personal use; (b) Tyco's purchase of a
Florida home from its director, Defendant Ashcroft; (c) Tyco's
retaining a law firm that employs its director, Defendant Berman,
while Berman's compensation at the law firm was based on the
amount of work the law firm did for Tyco; and (d) the Company's
use of funds to pay for executives' personal items, including a
home in Utah for Defendant Belnick. Additionally, during the
Class Period defendants failed to disclose the ongoing criminal
investigation of defendant Kozlowski.
As a result of Defendants' failure to disclose Tyco's related-
party transactions, Tyco's securities traded at artificially
inflated levels during the Class Period.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. Our firm, with
offices in New York, San Francisco, Chicago and New Jersey, has
many years of experience prosecuting investor class actions and
actions involving financial fraud. For more information about
Kaplan Fox & Kilsheimer LLP, you may visit our website at
www.kaplanfox.com.
Members of the Class, may move the court no later than September
13, 2002 to serve as a lead plaintiff for the Class. In order to
serve as a lead plaintiff, members must meet certain legal
requirements.
CONTACT:
Frederic S. Fox, Esq.
Joel B. Strauss, Esq.
Shelley Thompson, Esq.
KAPLAN FOX & KILSHEIMER LLP
805 Third Avenue, 22nd Floor
New York, NY 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@kaplanfox.com
Laurence D. King, Esq.
KAPLAN FOX & KILSHEIMER LLP
601 Montgomery Street
San Francisco, CA 94111
(415) 772-4700
Fax: (415) 772-4707
E-mail address: mail@kaplanfox.com
===========
B R A Z I L
===========
BRAZILIAN CORPORATES: Fitch Expects Mounting Liquidity Concerns
---------------------------------------------------------------
Fitch Ratings is predicting local financial markets will remain
volatile through the October elections, keeping liquidity tight
for Brazilian corporates over the next 6-9 months. Tight
liquidity spells higher refinancing risks for most companies, or
at least high financing costs. Prospects for a weakening debt
maturity profile and lower credit-protection measures as long-
term debt is rolled over into higher cost, short-term debt are a
real possibility, according to a report published Tuesday by
Fitch Ratings.
"Liquidity and refinancing risks facing Brazil's corporates can
vary considerably depending not only on financial strength and
debt profile but also type of business and exposure to the local
economy," says Daniel Kastholm, managing director at Fitch
Ratings. "Clearly, exporters of natural resources (i.e., pulp and
paper, iron ore, steel and other dollar-based commodity products)
are in the best position to service dollar debt in turbulent
times, as their products are more linked to global markets than
to the local economy. These companies can also benefit from the
currency devaluation that often accompanies a sovereign crisis,
as a devaluation lowers the cost of production for exporters,"
added Kastholm.
"Companies that are more reliant on the Brazilian economy,
including public service companies (i.e., electric utilities,
telecommunication companies, etc.), are potentially more exposed
to currency mismatches to the extent their debt is in dollars and
their revenues are in local currency," says Joe Borman, senior
director at Fitch Ratings. "The greater the currency mismatch
between dollars and local currency, the greater the exposure and
effects of devaluation on a corporate's underlying financial
profile," says Borman.
CONTACT: FITCH RATINGS
Daniel Kastholm, 312/368-2070
Joe Borman, 312/368-3349
Matt Burkhard, 212/908-0540 (Media Relations)
CEMIG: Delays Annual Report Pending US$519M AR Negotiation
----------------------------------------------------------
Companhia Energetica de Minas Gerais - CEMIG announced Tuesday
that it has entered into negotiations with the Minas Gerais State
Government, which is its controlling shareholder, and the
Brazilian Federal Government regarding the payment terms of an
account receivable from the Minas Gerais State Government that
had a total outstanding balance as of December 31, 2001 of BRL1.2
billion (US$519 million). CEMIG expects that the negotiations
will involve the transfer of the payment obligation from the
Minas Gerais State Government to the Brazilian Federal Government
and the issuance of bonds to CEMIG by the Brazilian Federal
Government. However, due to the uncertainties associated with the
final outcome of these negotiations, and the related effects, if
any, on CEMIG's financial position and results of operations,
CEMIG has decided to postpone the filing of its 2001 annual
report on Form 20-F with the U.S. Securities and Exchange
Commission, which was due July 15, 2002, until these negotiations
have been concluded.
CONTACT: CEMIG
Luiz Fernando Rolla, Investor Relations
Phone: +55-31-3299-3930
Fax: +55-31-3299-3933
E-mail: lrolla@cemig.com.br
Or
Vicky Osorio of The Anne McBride Co.,
Phone: +1-212-983-1702
Fax: +1-212-983-1736,
E-mail: vicky@annemcbride.com
ESCELSA: Moody's Revises Rating Outlook To Negative
---------------------------------------------------
Brazilian utility Espirito Santo Centrais Eletricas S.A.
(ESCELSA) had the rating outlook for its B1 senior note rating
changed to negative by Moody's Investors Service. Moody's took
the action after revising the rating outlook for Brazil's B1
foreign-currency rating for bonds and notes to negative.
ESCELSA transmits and distributes electricity within Espirito
Santo, an industrialized state in southeastern Brazil. It also
indirectly owns 65% of ENERSUL, which transmits and distributes
electricity within Mato Grosso do Sul, a more agrarian inland
state.
To see financial statements: http://bankrupt.com/misc/Escelsa.pdf
CONTACT: ESPIRITO SANTO POWER PLANTS S/A - ESCELSA
Rua Sete de Setembro, 362,
Centro CEP 29015-000
VitĒria
ES Brasil
Phone: (5527) 3321-9000
E-mail: investidor@escelsa.com.br
Contact:
Fernando Noronha Leal, Chairman
Adir Pereira Keddi, Vice-Chairman
NET SERVICOS: Makes Required `Relevant Notice' of Share Issue
--------------------------------------------------------------
Net Servicos de Comunicacao S.A., a publicly held company, with
headquarters in the City and State of Sao Paulo, announced
certain disclosures contained in the "Relevant Notices" published
on April 16 and June 20, 2002, respectively. Specifically, the
formalizing stage of the debt commitments has been concluded with
certain creditors, in a satisfactory manner for the shareholders
who signed the Globo Cabo S.A. (former Company Name) Net's
Protocol of Recapitalization and fulfilled the preconditions to
proceed with the Company's capitalization of at least BRL1
billion.
The capitalization process will occur through the public offer of
shares issued by the Company. Net Servicios is preparing to carry
out the capitalization process through a public offer of shares
registered at the Brazilian Securities Commission (CVM) and will
publish the relevant "Notice to the Market" in a timely manner,
containing information regarding characteristics and procedures
of the public offer of Company's shares.
CONTACT: NET SERVICOS DE COMUNICACAO S.A.
CNPJ/MF n§ 00.108.786/0001-65
NIRE n§ 35.300.177.240
Companhia Aberta
Rua Verbo Divino n§ 1.356 - 1§a, Sao Paulo-SP
Contact:
Leonardo P. Gomes Pereira
Investor Relations and Chief Financial Officer
URL: http://globocabo.globo.com/
=========
C H I L E
=========
AES GENER: Moody's Reviewing Ratings Possible Downgrade
-------------------------------------------------------
Moody's Investors Service placed AES Gener S.A.'s Baa2 senior
unsecured foreign currency rating on review for possible
downgrade. The review was prompted by the mounting financial
pressure at AES Gener as a result of its failure to divest
Termoandes, Itabo (Dominican Republic) and Chivor (Colombia).
Deteriorating financial performance at Termoandes and Interandes
continue to be a cash drain on AES Gener, Moody's said. The
oversupply of generation assets and the resulting low market
prices where Termoandes operates are not expected to improve in
the near future. The execution risk associated with Chivor's
reorganization plan also prompted the preview.
According to Moody's, the review will evaluate AES Gener's
continuing ability to generate sufficient cash flow to shoulder a
consolidated debt load of US$1.5 billion, its near term liquidity
arrangements, the company's dividend and tax sharing payments to
The AES Corporation, and the on-going outlook for its non-Chilean
and non-power investments.
Headquartered in Santiago, Chile, AES Gener is the second largest
Chilean electric generation company with operations in Argentina,
Colombia and the Dominican Republic.
CONTACT: AES GENER S.A.
Mariano Sanchez Fontecilla 310 Piso 3
Santiago de Chile
Phone: (56-2) 6868900
Fax: (56-2) 6868991
Home Page: www.gener.com
Contact:
Robert Morgan, Chief Executive
Laurence Golborne Riveros, Chief Financial Officer
TERMOANDES S.A.
Av. Libertador 602 Piso 13
(C1001ABT), Buenos Aires.
Tel.: 4816-1502
Fax: 4816-6605
E-mail: infoandes@aesc.com
TELEFONICA CTC: To Sue Over Line, Services Sabotage
---------------------------------------------------
Telefonica CTC Chile threatened to undertake legal actions
against those responsible for sabotaging its lines, which led to
the loss of services to the Chilean telecom's clients, reports
Dow Jones Newswires.
On Friday, about 23,000 Telefonica CTC clients were left without
service after the Company's telephone lines were cut with saws
and axes. The worst attack however, occurred Monday morning when
a disruption in a fiber optic line impeded voice, data and
internet transmission for five hours in a large swath in the
south of the country.
Some 3,000 CTC workers associated with the United Front of
Telephone Workers, or FUT, union have been on strike for more
than two weeks now to pressure the Company to scrap a plan, which
would see a reduction in their wages and benefits.
FUT director Daniel Droguett denied union members were in any way
responsible for the attacks on CTC infrastructure.
CTC, meanwhile, said it is maintaining its contingency plan to
handle the impact of the strikes and the cuts to its lines.
After 15 days on strike, Chilean law permits companies to look
for replacements for striking workers. CTC announced that it has
hired about 300 workers to reinforce its contingency plan.
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 Daz, Vice President
Gisela Escobar, Head of Investor Relations
===============
C O L O M B I A
===============
CHIVOR SA: Gets OK to Hire Chadbourne & Parke as General Counsel
----------------------------------------------------------------
Chivor S.A. E.S.P. sought and obtained approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
and retain Chadbourne & Parke LLP as counsel for the Debtor.
Chadbourne will provide its expertise with respect to bankruptcy-
related issues and will act as general bankruptcy counsel for the
Debtor. Chadbourne is expected to:
a) provide legal advice with respect to the Debtor's powers
and duties as debtor in possession in the continued
operation of its business and management of its
property;
b) prepare on behalf of the Debtor, as debtor in
possession, necessary applications, motions, orders,
reports and other legal papers in connection with the
administration of its estate in this case;
c) represent the Debtor at all hearings on matters
pertaining to its affairs as debtor in possession;
d) prosecute and defend litigated matters that may arise
during this chapter 11 case;
e) counsel the Debtor with respect to various corporate and
litigation matters relating to this chapter 11 case
including, finance and tax matters; and
f) perform all other legal services that are necessary for
the efficient and economic administration of the
Debtor's chapter 11 case.
The current hourly rates for the professionals who will be
primarily involved in this engagement are:
Name Position Rate/Hour
---- -------- ---------
Howard Seife Partner $670
N. Theodore Zink, Jr. Partner $520
Charles E. Hord Partner $580
J. Allen Miller Partner $560
Francisco Vazquez Associate $360
Andrew Rosenblatt Associate $325
Damien Atkins Associate $295
Christy Rivera Associate $230
All Other Partners $425-$670
Counsel $400-$495
All Other Associates $230-$385
Paralegals $120-$185
The Debtor is a corporation (sociedad anĒnima) and public
services enterprise organized and existing under the laws of the
Republic of Colombia and is the fourth largest electric power
generator in Colombia. The Company, which owns the third largest
hydroelectric power generator station, located in east central
Colombia filed for chapter 11 protection on July 6, 2002. Howard
Seife, Esq. and N. Theodore Zink, Jr., Esq. at Chadbourne & Parke
LLP represent the Debtor in its restructuring efforts. As of May
30, 2002, the Debtor listed $588,624,000 in assets and
$349,376,000 in debts.
CONTACT: CHIVOR S.A. E.S.P.
Bogota, Distrito Capital
Cl 98 22-64 Of 518
Tel: (57) (1) 6236660 - Fax: (57) (1) 6236837
Email: chivorbo@cable.net.co
===========
M E X I C O
===========
AEROMEXICO: Fleet Replacement Talks Underway With Airbus, Boeing
----------------------------------------------------------------
Mexican airline Aeromexico is negotiating with Boeing and Airbus
over its US$510-million program aimed at replacing its fleet of
DC-9 aircraft with 15 new planes.
Aeromexico is asking both firms to present their proposals
regarding financing and delivery of the planes. The idea is to
have the first delivered by October or November this year, with
others following every two months.
The modernization of the fleet is in anticipation of the entering
into vigor in 2005 of new regulations concerning automation and
noise reduction. Aeromexico currently has a fleet of 70 aircraft.
AeroMexico, is one of the two main units of airline holding
company Cintra SA, which is 65%-owned by the Mexican government.
The airline is scheduled to be sold-off this year.
CONTACT: AEROMEXICO
Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
mweitzman@aeromexico.com
GRUPO RADIO: Legal Issues, Uncertainty Pull Down Shares
-------------------------------------------------------
Grupo Radio Centro's shares on the Mexico City Stock Exchange
have lost a third of its value on reports that the conflict
between it, InfoRed and La Red Deportiva have gone to court.
Radio Centro's CPO series shares closed at MXN5.95 in April 19.
But on May 17, days after InfoRed announced that it had taken
legal action against the Company, the stock plunged to MXN5.10.
On Friday, La Red Deportiva announced that it was suing Radio
Centro for not having paid for services for the last six months.
The announcement dragged the stock further down, ending the day
at MXN3.85 pesos.
Radio Centro stopped paying for services from La Red Deportiva
back in January, and on July 4, notified the information service
it was terminating the contract.
Grupo Radio Centro owns and/or operates 14 radio stations, 12 of
which are located in Mexico City. The Company's principal
activities are the production and broadcasting of musical and
entertainment programs, talk shows, news and special events
programs. Revenue is primarily derived from the sale of
commercial airtime. The Company also operates a radio network,
OrganizaciĒn Impulsora de Radio, which acts as the national sales
representative for, and provides programming to, Grupo Radio
Centro-affiliated radio stations.
To see financial statements:
http://bankrupt.com/misc/Grupo_Radio.pdf
CONTACT: GRUPO RADIO CENTRO, S.A. de C.V. (Mexico)
Investor Relations:
Pedro Beltran/Alfredo Azpeitia
Tel.: 5255-57-28-48-81 or
5255-57-28-49-11
I-ADVIZE CORPORATE COMMUNICATIONS, INC. (New York)
Maria Barona/Blanca Hirani
Tel. (212) 406-3690
Email: grc@i-advize.com
GRUPO TMM: Completes Review For Reclassification Of Shares
----------------------------------------------------------
Grupo TMM, S.A. de C.V. ("Grupo TMM"), owner of the controlling
interest in Grupo Transportacion Ferroviaria Mexicana, S.A. de
C.V. ("Grupo TFM"), announced that it has completed all necessary
reviews by the United States and Mexican governments for the
reclassification of its class "A" and class "L" shares of common
stock.
The merger of Grupo TMM (formerly Grupo Servia) and TMM became
effective on December 27, 2001, thereby changing the company's
ticker symbols to "TMM" ("A" shares) and TMM/L ("L" shares). The
company's A shares represent 75 percent of the equity of Grupo
TMM, and once the A and L shares are reclassified, all shares
will be traded as "TMM". A special shareholders meeting to
receive consent for the reclassification of the two classes of
stock will be held no later than August 30, 2002. The company
will announce a specific date once set.
Javier Segovia, president of Grupo TMM, commented, "We are
pleased that we have met all regulatory conditions for the share
reclassification. With only one class of stock, Grupo TMM's
capital structure will be more transparent, and the company will
have greater flexibility. In addition, the move to a one share
class standard puts the company more closely in line with
international corporate governance practice and capital market
expectations."
If the share reclassification is approved by the shareholders,
the conversion should become effective during the first few days
of September 2002. The conversion ratio is one for one.
Headquartered in Mexico City, Grupo TMM is the premier Mexican
multimodal transportation company and logistics provider. Through
its branch offices and network of subsidiary companies, Grupo TMM
provides a dynamic combination of ocean and land transportation
services within Mexico. Grupo TMM also has the controlling
interest in TransportaciĒn Ferroviaria Mexicana (TFM), which
operates Mexico's Northeast railway and carries over 40 percent
of the country's rail cargo. Visit Grupo TMM's web site at
http://www.grupotmm.com.mx,TFM's web site at
http://www.gtfm.com.mx.Both sites offer Spanish/English language
options.
CONTACT: GRUPO TMM COMPANY
Jacinto Marina
Phone: 011-525-629-8790
E-mail: jacinto.marina@tmm.com.mx
or
Brad Skinner
Phone: 011-525-629-8725 (Investor Relations)
E-mail: brad.skinner@tmm.com.mx
or
Luis Calvillo
Phone: 011-525-629-8758 (Media Relations)
E-mail: luis.calvillo@tmm.com.mx
or
AT DRESNER CORPORATE SERVICES
(general investors, analysts and media)
Kristine Walczak
Phone: 312/726-3600
E-mail: kwalczak@dresnerco.com
PEGASO: Competitors' Objection to Telefonica Takeover Shunned
-------------------------------------------------------------
The Mexican government ditched the objections filed by Vodafone
Group PLC and Verizon Communications Inc. affiliate Grupo
Iusacell SA against Telefonica Moviles SA's acquisition of local
mobile operator Pegaso PCS, reports Mexico City daily Reforma.
Iusacell had demanded that the Mexican antitrust body Comision
Federal de Competencia Mexicana (COFECO), which approved
Telefonica Moviles' acquisition of 65% of Pegaso for US$87.1
million, should block the takeover on the basis that the combined
spectrum capacity of Telefonica and Pegaso in three regions of
the North of the country would exceed ceilings imposed by law,
relates Reforma.
Refuting Iusacell's comments, a communications and transport
ministry source said that this provision does not apply in this
case because these ceilings were created at the time of the
auctions to allocate spectrum in the 1.9" band. This does not
mean that it applies under all circumstances, the source said.
The source added that Iusacell can always take legal action to
block the deal, but it remains to be seen whether a judge would
support its views. The fact that the federal competition
commission has approved the acquisition gives a strong backing to
the merger, the source said.
CONTACT: PEGASO PCS, SA OF CV
Stroll of the Tamarinds 400A,
Floor 4, Forests of Hills
Mexico, DF 05120
Phone: (55) 5806,8700
Fax: (55) 5806.9080
E-mail: atencionclientes@pegasopcs.com.mx
Home Page: http://www.pegasopcs.com.mx/
Contact:
Roberta Lopez Negrete
Manager of Strategic Communication
Phone: 261 66 38 Fax: 261 66 98
Email: rlopez@pegasopcs.com.mx
Eduardo Jimenez Urias
Phone: 261 66 34
Fax: 261 66 91
E-mail: ejimenez@pegasopcs.com.mx
TELEFONICA MOVILES, S.A.
Goya 24
28001 Madrid, Spain
Phone: +34-91-423-4004
Fax: +34-91-423-4010
E-mail: webmaster@telefonicamoviles.com
Home Page: http://www.telefonicamoviles.com
Contact:
Maria Garcia-Legaz, Head of Investor Relations
Arantxa San Rom n Wong
Raimundo de los Reyes
Paseo de Recoletos, n 7-9 2Ý Planta
28004 Madrid
Phone: +34 914 23 40 27
Fax: +34 914 23 44 12
E-mail: relaciones.inversores@telefonicamoviles.com
=================================
T R I N I D A D & T O B A G O
=================================
VINTAGE PETROLEUM: Updates Oil Hedge Position
---------------------------------------------
Vintage Petroleum, Inc. announced Tuesday that it has recently
entered into oil hedges covering the second half of 2002 and
initiated hedge positions for a portion of anticipated 2003 oil
production. The Company has entered into oil price swaps for the
second half of 2002 covering approximately 1.82 million barrels
at average NYMEX reference prices of $26.18 per barrel. This
hedged volume for the second half of 2002 is approaching 20
percent of the company's targeted oil production for the period.
Additionally, the Company has hedged 1.64 million or 4,500
barrels of oil per day for calendar 2003 using swaps at average
NYMEX reference prices of $24.56 per barrel.
In June, Vintage Petroleum signed a definitive agreement to sell
all its holdings in Trinidad and Tobago to Vermilion Resources
Ltd. for approximately US$40 million. The Company said it would
use the proceeds of the sale of its Trinidad oil and gas interest
to meet a previously announced plan to reduce its long-term debt
by US$200 million and to rebalance its portfolio toward North
America through a combination of the sale of non-strategic assets
in Trinidad and Ecuador and the
application of cash flow in excess of capital expenditures.
Vintage Petroleum is an independent energy company engaged in the
acquisition, exploitation, exploration and development of oil and
gas properties and the marketing of natural gas and crude oil.
Company headquarters are in Tulsa, Oklahoma, and its common
shares are traded on the New York Stock Exchange under the symbol
VPI.
CONTACT: VINTAGE PETROLEUM, INC.
Robert E. Phaneuf, Vice President - Corporate Dev.
Tel. +1-918-592-0101
=============
U R U G U A Y
=============
GALICIA URUGUAY: Central Bank Delays Takeover Until July 23
-----------------------------------------------------------
The Uruguayan Central Bank has decided to postpone its takeover
of Banco Galicia Uruguay from July 15 to July 23, reports EFE.
The purpose was to give the bank time to negotiate with
depositors who rejected the bank's original deposit-return
proposal early in June.
The bank's initial plan outlines a nine-year payback schedule,
under which the bank will make a direct cash payment of 3% to
each client, then pay back 30% of its obligations (deposits)
during the first two years, and finally 10% annually during the
next seven years. All installments will come with a fixed
interest rate of 2%.
Lawyer Miguel Loinaz who represented the depositors, on the other
hand, are proposing a plan that would entitle clients an initial
cash-payment of 10% and would allow them to get the rest of the
deposits in five years.
In an El Observador daily article, Loinaz, who represented 43 of
the bank's customers, is reported to foresee negotiations going
beyond the new deadline.
Banco Galicia Uruguay, country's biggest non-government bank by
deposits, is the local unit of Buenos Aires-based Grupo
Financiero Galicia, whose assets were affected by the Argentine
restriction on deposits last year.
The bank was intervened by the central bank and had its
operations subsequently suspended after losing some US$500
million between December and January. It needs negotiate some
$800 million in deposits in order to avoid takeover and
liquidation. The bank so far, had only negotiated some US$350
million worth.
The Uruguayan bank had about US$1 billion of deposits, US$1.67
billion in assets and US$231 million in shareholders equity as of
Dec. 31. It has some 13,000 clients, most of them Argentines.
CONTACT: BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
Tte. Gral Juan D. Peron 407
1038 Buenos Aires, Argentina
Phone: +54-11-6329-0000
Fax: +54-11-6329-6100
Home Page: http://www.bancogalicia.com.ar
BANCO GALICIA URUGUAY S.A.
World Trade Center
Luis A. Herrera 1248 Piso 22 Montevideo
Uruguay
Tel.:(+598-2) 628-1230
www.bancogalicia.com.uy
***********
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.
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