/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/021003.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, October 3, 2002, Vol. 3, Issue 196 Headlines A R G E N T I N A ARGENTINE BANKS: To Return Frozen Deposits to Clients BANCO VELOX: Central Bank Extends Suspension By 30 Days CTG: Must Service $54M In Debt By Year-End Or Face Bankruptcy DINAR: Labor Ministry Fines Likely After Service Halt PAN AMERICAN: Issuing $15M in Debentures October 16 PEREZ COMPANC: Nearing Petrobras Buyout's Conclusion TELECOM ARGENTINA: Ex-Minister, Fund In Race For Control TELEFONICA DE ARGENTINA: Sale of $26M in Surplus Assets Planned *Argentina Plans to Restructure Financial System B E R M U D A GLOBAL CROSSING: Chairman Asserts Innocence TYCO INTERNATIONAL: Probe Yet To Uncover Malpractices B R A Z I L BRAZILIAN BANKS: Goldman Trims Ratings Amid Election Concerns CSN: BNDES Hires UK Law Firm To Study Corus Merger * Brazil FM: Brazil Has No Reason to Restructure its Debt M E X I C O AEROMEXICO: Wards Off Strike After Union Signs Contract CYDSA: Shakes Up Management To Improve Situation GRUPO BITAL: Consummates Takeover of Atlantico P A N A M A BLADEX: Plans Recapitalization Following Argentine Losses P E R U MINERA VOLCAN: Workers' Strike Creating More Losses V E N E Z U E L A EDC: Obtains $47.5M Syndicated Loan ================= A R G E N T I N A ================= ARGENTINE BANKS: To Return Frozen Deposits to Clients ----------------------------------------------------- Argentine President Eduardo Duhalde is easing the bank freeze to see how well banks can endure Argentines having unrestricted access to their accounts for the first time in ten months. The banking restrictions were imposed to save banks from collapse last year, reports Dow Jones Newswires Tuesday. Banks would begin returning as much as ARS1.7 billion in time deposits that have been frozen since December. This would put Argentina fragile banking system to test. "If all goes well today, it may just go to show that the financial system will recuperate quicker than anyone thought," said senior analyst Hernan Fardi of Maxinver.com. Last month, economy minister Roberto Lavagna said the government would return ARS7,000 per clien. He added that banks have the option to return up to ARS10,000 per client if they feel they are in a position to do so. Banks returning more than the ARS7,000 limit include Spain's Banco Bilbao Vizcaya Argentaria, HSBC Bank and Banca Nazionale de Lovoro SA, press reports said. The government and banks are also offering longer-dated bonds that exceed these limits for term deposits. Argentine Research senior analyst Rafael Ber projected that most clients will leave their money in the banks, while others may use their cash to purchase goods and service they wanted over the months. Early indications show some bank clients prefer to leave their funds in certificates of deposit, as analysts say the average annual yield on CDs is about 35 percent. A spokeswoman from Grupo Financiero Galicia, owner of the country's largest locally owed bank, Banco Galicia y Buenos Aires, said that so far clients weren't rushing over to withdraw the maximum amount allowed. A crime wave of kidnap-for-ransoms and burglaries in recent months has impelled Argentines to keep their money in financial institutions. The Central Bank has already decreed that depositors may open bank accounts without withdrawal restrictions, as the government seeks to revive the financial system as it tries to convince the International Monetary Fund to sign a debt-relief aid agreement. At 1515 GMT, the peso was flat at ARS3.735 to the dollar. It has lost 73 percent of its value after losing its 1-to-1 ratio to the US dollar in January. BANCO VELOX: Central Bank Extends Suspension By 30 Days ------------------------------------------------------- Argentina's central bank extended by another 30 days the suspension of Banco Velox, the local bank that was intervened and suspended on June 28, relates Business News Americas. Banco Velox actually requested the intervention from the central bank because of the country's poor economic condition and the critical financial situation in the Mercosur trade region. Under Argentine law a bank can be suspended for up to 120 days before a final decision on its fate has to be made. Like all banks in Argentina, Banco Velox suffered a drain on deposits and had difficulty returning clients' savings. However, Banco Velox's situation was aggravated by the financial woes of its parent, Uruguay-based business group Velox. As of December 2001, Banco Velox was ranked 35th among Argentine banks in terms of deposits and 36th in total assets. CONTACT: BANCO VELOX S.A Sarmiento 532 (1041) Capital Federal Buenos Aires Phone: 4321-1800 Fax: 4321-1820 E-mail: mailto:servicioalcliente@velox.com.ar Home Page: http://www.bancovelox.com.ar/ Contacts: Juan Peirano, President Carlos Peterson, Representative CTG: Must Service $54M In Debt By Year-End Or Face Bankruptcy ------------------------------------------------------------- Bankruptcy looms ahead at Argentine thermo generator Central Termica Guemes S.A (CTG), which owns and operates a 245MW thermoelectric plant in the Salta province. Quoting an unnamed company spokesperson, Business News Americas said the Argentine utility needs to renegotiate US$54 million in bonds "as soon as possible," and at the latest by year-end. Otherwise, it will have to declare bankruptcy. "We are caught in a financial sandwich because our income has been cut to a quarter of what it was last year, and our financial obligations are dollarized... if we can not service our debt we could go bankrupt," the spokesperson said. In a statement, Guemes said that come October 4, it will use cash reserves to pay US$675,000 interest on bonds due last week. The bonds are reportedly due in 2010. In September, CTG met with bond trustee, the Bank of New York, and bondholders to discuss how Argentina's financial, political, and regulatory situation affected its capacity to make payments. "There was a lot of talking, and we are still talking with our bondholders... but so far no agreement has been reached," the spokesperson said. To see latest financial statements: http://bankrupt.com/misc/CTG.doc CONTACT: Central Termica Guemes S.A. Avenida Leandro N Alam 822 Piso 12 Ciudad Autonoma de Buenos Aires C1001AAQ ARGENTINA Tel. +54 4311-6064/6065/6066 MORGAN, LEWIS AND BOCKIUS (New York, New York) 101 Park Avenue New York, NY 10178-0060 Tel: 212-309-6000 Fax: 212-309-6273 DINAR: Labor Ministry Fines Likely After Service Halt ----------------------------------------------------- Cash-strapped Argentine airline Dinar Lineas Aereas SA, which halted flights Monday after its shareholders decided to discontinue funding, could face fines of as much as ARS5,000 for each of its 300 employees. According to a report by Bloomberg, the country's Labor Ministry revealed plans to fine the airline after it failed to inform transportation authorities of its move to halt flights. The airline was required to advise Argentina's Secretary of Transport at least 180 days before suspending service. Dinar, which filed for protection from creditors on US$30 million of debt in August, said it was forced to ground flights after the government-controlled Banco de la Nacion Argentina kept money from ticket sales that was supposed to be used as a guarantee for the debt. PAN AMERICAN: Issuing $15M in Debentures October 16 --------------------------------------------------- Argentine oil group Pan American Energy, which is 60%-owned by British Petroleum and 40% by local firm Bridas, will issue a class 2 series of US$15 million in debentures October 16, relates Business News Americas. The debentures will be placed by Banco de Valores, and will be issued for a two-year period with a 50% amortization after the first year, and the remainder due at expiry. Although the debentures will be issued in US dollars, Pan American has the option to convert the amount into pesos to meet local financial obligations, Pan American finances VP Rodolfo Berisso said. The bonds, which will be guaranteed by both parent companies, will be the Company's second this year, after a US$20-million issue in April. Proceeds will be used for working capital and to finance expansion since bank credit had virtually dried up. Berisso said that the Company will not issue more debentures this year, adding that two more issues in 2003 are likely. "[The country's economic situation] is still complicated but a relatively high commodity price has allowed us to pursue a policy of aggressive investment," Berisso continued. The Company will continue to focus investment in its Cerro Dragon block in the Gulf of San Jorge field in southern Argentina where it plans to drill 150-200 wells this year, he said. CONTACT: PAN AMERICAN ENERGY LLC Maipu 942 Piso 16§ Capital Federal -( 1006 ) Buenos Aires - Argentina Phone: 011-4315-4012 Fax: 011-472128 PEREZ COMPANC: Nearing Petrobras Buyout's Conclusion ---------------------------------------------------- Argentina's Perez Companc informed the country's stock exchange that it expects to conclude its deal with Brazil's federal energy company Petrobras within the next two weeks, relates Business News Americas. In July, Perez Companc announced it had reached a preliminary agreement to sell 58.6% of its capital to Petrobras for US$1.125 billon. However, the transaction hasn't been concluded as Perez Companc's unit, Pecom Energia, is yet to refinance some US$2.2 billion in debts. Petrobras has conditioned that all debt must be restructured before it would proceed with the transaction. However, most of the refinancing has already been completed, and the two companies are finalizing the exchange of documents, before the deal can be closed, Pecom Energia president Mario Lagrosa said in a separate statement to the stock exchange. 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 TELECOM ARGENTINA: Ex-Minister, Fund In Race For Control -------------------------------------------------------- Jose Luis Manzano, who served as interior minister under former Argentine President Carlos Menem, offered to buy Telecom Argentina Stet-France Telecom SA for US$300 million from its foreign owners - France Telecom SA and Telecom Italia SpA, reports Business News Americas. Manzano submitted the offer in Rome two weeks ago on behalf of a business group that wants a stake in the telco before debt restructuring negotiations begin. Business News Americas didn't mention the name of the group but Bloomberg in its earlier report, revealed that The Dolphin Fund, a Buenos Aires-based investment fund formerly run by George Soros, would participate in the proposed purchase of Argentina's second biggest phone company. Manzano was accompanied by Argentine businessmen Damian Midlin and Rogelio Pagano. Midlin has ties to Soros through his brother, while Pagano is a former Citibank executive. Telecom Argentina is the country's largest debtor with liabilities exceeding US$3.2 billion. The Company has halted all payments on interest and principal, and restructuring talks are expected to begin as soon as they can obtain a new rates regime from the government. To see financial statements and accompanying notes: http://bankrupt.com/misc/Telecom_Argentina.doc 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 TELEFONICA DE ARGENTINA: Sale of $26M in Surplus Assets Planned --------------------------------------------------------------- Argentine phone company Telefonica de Argentina, which has been severely battered by the country's deepening recession, the impact of devaluation on its debt, the suspension of tariff adjustments and the tariff pesofication, is putting its surplus assets worth ARS100 million (US$26.5mn) on the block. According to Business News Americas, the Company hired the local division of Spanish e-marketplace solutions provider Adquira (www.adquira.com) to manage the sale. Adquira Argentina CEO Patricio Lobos revealed that the surplus materials were bought a number of years ago but never used because the original purchases were bad decisions. Bidders may register until October 4, placing their offers the following week. Telefonica will select buyers two days after bidding closes. Telefonica de Argentina, which is a wholly owned subsidiary of Spanish telecommunications holding Telefonica, has operations in Spain, Brazil, Argentina, Chile, Mexico and Peru. It provides local exchange, long distance, residential Internet access and directory publishing services. Until October 1999, the Company was the exclusive provider of telecommunications services in southern Argentina and controlled nearly two-third of the Buenos Aires metropolitan area market. Telefonica Argentina is now allowed to provide telecommunication services to northern Argentina, where Telecom Argentina Stet France Telecom S.A. is the incumbent operator. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar Contacts: Carlos Fernandez-Prida Mendez Nunez, Chairman Paul Burton Savoldelli, Vice Chairman Fernando Raul Borio, Secretary *Argentina Plans to Restructure Financial System ------------------------------------------------- The International Monetary Fund supports the Argentine government's stand that widespread closure of financial institutions is not necessary, according to Business News Americas Tuesday. Representatives of the government told the IMF that they are developing a plan to reduce the participation of public banks in the financial system, according to IMF demands. Banking analyst Fabio Rodriguez said that it is imperative that the government comes up with a plan on how to restructure the financial system, as the present situation only adds to the uncertainty of what will happen next. Argentina is seeking to negotiate an agreement with the IMF since its declaration of a partial deposit freeze last December, and the peso devaluation a month after. ============= B E R M U D A ============= GLOBAL CROSSING: Chairman Asserts Innocence ------------------------------------------- Global Crossing Chairman Gary Winnick says he had no idea that the Company's finances were deteriorating until after he sold a sizeable amount of stock last year. The Associated Press reports that Rep. Billy Tauzin, R-La., chairman of the investigative body said that Winnick's ignorance on the Company's financial condition is "a little hard for to understand." Winnick acknowledged that he had daily conversations with the Company's chief executive officer, Thomas Casey. Casey, who participates in management discussions about revenue shortfalls, did not appear at Tuesday's hearing because he was seriously ill, according to committee spokesman Ken Johnson. However, Winnick contends that he never learned of the Company's problems until the Company's lawyer, James Gorton told him in June 2001 that executives could no longer sell company stock because of the changing financial health. Winnick had sold his stock for US$123 million in late May. Winnick even promised to donate US$25 million to company employees who lost money when the stock plunged. This is to offset the losses of employees whose retirement savings were invested in company stocks. Global Crossing filed for bankruptcy protection seven months later, listing assets of US$22 billion. Its stocks collapsed, and investors including company employees lost billions of dollars. Winnick insists that there was no fraud and that the Company was forced into bankruptcy because of the decline that affected the telecommunications industry. Two Asian Companies have bought global Crossing for US$250 million. CONTACT: GLOBAL CROSSING 45 Reid Street, Wessex House Hamilton HM 12, Bermuda Phone: (441) 296-8600 Fax: (441) 296-8606 Email: investors@globalcrossing.com PRESS: Becky Yeamans, +1-974-410-5857, Email: Rebecca.Yeamans@globalcrossing.com Tisha Kresler, +1-973-410-8666 Email: Tisha.Kresler@globalcrossing.com Analysts/Investors: Ken Simril, +1-310-385-5200 Email: investors@globalcrossing.com TYCO INTERNATIONAL: Probe Yet To Uncover Malpractices ----------------------------------------------------- Tyco International Ltd. Chief Executive Edward Breen said on Monday that Forensic accountants have not yet uncovered any problems in their investigation of the Company's books. A report from Yahoo! Finance says that the accountants are almost halfway through the probe. "If there were something in there that was going to be very serious or material, I think we would have an indication of that by now," said David Boies of Boies Schiller & Flexner, the law firm leading the internal inquiry. Shareholders are relieved. Stocks have plunged after allegations of how former top executives used company funds for extravagant personal expenses were revealed. The stock was up 3 percent, at about US$14 after the first two hours of trading. Tyco's accounting is under investigation after the Company's former CEO Dennis Kozlowski, and ex-finance chief Mark Swartz were charged of enterprise corruption and grand larceny for allegedly stealing US$170 million of company funds. Some expressed fear that such large-scale fraud may have involved some accounting "magic". But Breen declared yesterday, "We're about 40 per cent through the [forensic accounting] review and we have not yet found anything that would require additional disclosure." The Company's new CEO launched a review of the conglomerate's corporate governance, liquidity position, and business operations, in a bid to restore shareholder confidence. Breen also promised to agree new credit lines for the business well ahead of a February deadline, as it might improve the group's credit rating. CONTACT: TYCO INTERNATIONAL, LTD. The Zurich Center, Second Floor Pembroke HM 08, Bermuda Phone: (441) 292-8674 =========== B R A Z I L =========== BRAZILIAN BANKS: Goldman Trims Ratings Amid Election Concerns ------------------------------------------------------------- Mounting doubts that opposition candidate Luiz Inacio Lula da Silva will win in the first round of Brazil's Oct. 6 presidential election prompted Goldman Sachs to trim the ratings of three largest locally owned private sector banks. According to Dow Jones Newswires, the investment bank downgraded the ratings of Banco Bradesco SA, Banco Itau SA and Unibanco- Uniao de Bancos Brasileiros SA to "market performer" from "market outperformer" reversing last month's decision to raise the banks to outperformer status. "A [da Silva] first-round win significantly increases the risks of banks becoming 'the main variable of adjustment' of the new administration's monetary- and debt-management policies, particularly if difficulties recently encountered by the Central Bank in rolling over US-dollar linked debt at reasonable rates intensify next year," the investment firm said in a research note. Also discouraging was a recent statement made by Mr. da Silva in which he said, if elected, he would replace Central Bank Governor Arminio Fraga, who is "regarded as one of the anchors of stability of the current administration," Goldman said. CONTACT: BANCO BRADESCO S.A. Jean Philippe Leroy Technical Director of Investor Relations Tel: (11) 3684-9229 E-mail: 4260.jean@bradesco.com.br Bernardo Garcia Executive Manager of Investor Relations Tel: (11) 3684-9302 E-mail: 4260.bernardo@bradesco.com.br BANCO ITAU, S.A. Rua Boa Vista, 176 01014-919 Sao Paulo, Brazil Phone: +55-11-3247-3000 Fax: +55-11-5582-1133 URL: http://www.itau.com.br Contacts: Olavo Egydio Setubal, Chairman Robert Egydio Setubal, President and CEO Henri Penchas, SVP Accounting & Control Area UNIBANCO Avenida Eusebio Matoso, 891, 22nd Fl. 05423-901 Sao Paulo, Brazil Phone: +55-11-3097-1313 Fax: +55-11-3813-6182 URL: http://www.unibanco.com.br Contacts: Pedro Moreira Salles, Chairman Geraldo Travaglia Filho, Executive Director and CFO CSN: BNDES Hires UK Law Firm To Study Corus Merger -------------------------------------------------- A British law firm was hired to analyze the planned merger between Rio de Janeiro-based flat steel maker CSN and Anglo-Dutch group Corus, relates Business News Americas. Brazil's state-owned development bank BNDES, which hired the law firm, believes that the move was relevant because the merger incorporates many elements of English law, said Eduardo Gentil, director of the bank's structured products. The firm will represent not only BNDES but also pension fund Previ and Brazilian bank Bradespar, both of which also lent money to Brazil's Vicunha group to acquire control of CSN. Vicunha's shares in CSN act as collateral for BNDES loans, and so the bank is one of the state entities that need to give their nod to the merger. Gentil said a decision on the operation will not be taken until next year. Meanwhile, recent reports have it that a group of CSN minority shareholders are threatening to contest the planned operation, arguing it is not at all a merger but an acquisition. And so, a public tender offer should be made for the outstanding shares on the market. As it stands, the operation involves an exchange of shares in which CSN shareholders will retain 37.6% of the merged company. The reported discontent came after CSN shareholders approved the steel maker's acquisition of steel can maker Metalic. Disgruntled shareholders say this operation could still be contested, too. "The shareholders are still going to evaluate if some measure will be taken," Waldir Correa, the president of the national association of investors in the capital market, was quoted as saying. Minority shareholders could ask stock market watchdog CVM to annul the measure approving the Metalic deal. These investors want the regulatory authority to forbid controlling shareholders from voting on cases such as Metalic's, because the Vicunha group is the controller of both the can maker and its buyer CSN. To see financial statements: http://bankrupt.com/misc/CSN.pdf CONTACT: Jose Marcos Treiger CSN - Investor Relations General Manager Tel. +55 21 2586 1442 Email: jmtreiger@csn.com.br URL: www.csn.com.br * Brazil FM: Brazil Has No Reason to Restructure its Debt. ---------------------------------------------------------- Brazil has no reason to restructure its US$335 billion public debt, as a new president will be elected this month, according to the country's finance minister, Pedro Malan. In a television interview with Bloomberg, Malan said that investors should have no reason to doubt Brazil's ability to overcome the current turbulence. Brazil's bonds and currency have plummeted since March on concern that Worker's Party condidate Luiz Inacio Lula da Silva will win the elections, triggering the country's default. Lula is ahead in opinion polls, followed by his closest rival Jose Serra. Elections will be held this Sunday. Lula probably will win the election after a second round of voting, Malan added. =========== M E X I C O =========== AEROMEXICO: Wards Off Strike After Union Signs Contract ------------------------------------------------------- Aeromexico, one of Mexico's two major airlines, skirted a potentially devastating strike this week, after a union representing 745 pilots, reached a contract moments before their scheduled walkout. Citing airline spokesman Alejandro Iberri, the Associated Press reports that pilots agreed to a 7% increase in salary and benefits shortly before midnight Monday. The pilots had planned a strike for Tuesday if a contract wasn't reached. The two-year contract includes a 5.5% salary raise and a 1.5% increase in benefits. Arturo Barahona, assistant director of the airline, told Mexican news media that the pilots "were conscious of the economic difficulties affecting the industry." Aeromexico and Mexicana are Mexico's two largest airlines. Both have been operated by a government-controlled holding company since 1995 when the government seized the companies during an economic crisis. Both are now on the auction block. In 1988, a strike forced Aeromexico to file for bankruptcy. The airline was then sold to a group of investors for US$335 million. Mexicana was sold a year later in an effort to help jump-start Mexico's sagging economy. CONTACT: AEROMEXICO Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or mweitzman@aeromexico.com CONTACT: MEXICANA DE AVIACION Adolfo Crespo, V.P. of Public Affairs Division of Mexicana Airlines, +1-210-491-9764 CYDSA: Shakes Up Management To Improve Situation ------------------------------------------------ Mexican chemicals and synthetic fibers maker Celulosa y Derivados S.A. (CYDSA) is reorganizing its management and appointed Cesareo Frias Mendoza to head up the reorganization, the Company said in a filing with the Mexican Stock Exchange. Citing the filing, Dow Jones reports that the move, aimed at improving the Company's operations and finances, includes the appointment of a director for its chemical and plastics division. The Company will soon name someone to lead its textile and packaging operations. Cydsa has been hit by the economic recession in the U.S., where 90% of overall Mexican exports are sold, a weak local currency and historically low prices for chemical, petrochemical and textile products. Last year, Cydsa decided to embark on a debt restructuring in an effort to meet financial obligations, despite having sold off several assets. Cydsa reported sales in 2001 of roughly US$69.8 million on a cash debt load of US$382 million. Its assets have a book value of around US$1 billion Based in Monterrey, Mexico, Cydsa maintains a presence in several industrial sectors, including Chemicals and Plastics, Fibers and Textile Products and Flexible Packaging. CONTACT: CYDSA, S.A. DE C.V., IN MEXICO Jesus Montemayor, Treasury Director +011-528-18-152-4585 E-mail: jmontemayor@cydsa.com GRUPO BITAL: Consummates Takeover of Atlantico ---------------------------------------------- Mexico's Bank Savings Protection Institute (IPAB) announced that Banco del Atlantico is no longer in its hands. In a Reuters report, IPAB revealed that the country's fifth- largest financial group Grupo Financiero Bital concluded its takeover of Atlantico Tuesday. "Today [Tuesday] the clean-up of Atlantico concluded and we signed the contract under which Bital assumes the operations, assets and liabilities of Atlantico," IPAB said in a news release. Atlantico, which was under a mountain of bad debt, was taken over by IPAB as part of a US$100-billion clean up of banks that collapsed after a shock devaluation of the peso in late 1994 sent interest rates soaring and defaults through the roof. The agency put about US$887 million into cleaning up Atlantico, and assumed some US$2.5 billion in the bank's debt. Bital agreed to buy Atlantico four years ago, but the sale never went through as Bital and the government disagreed over what conditions Bital should meet. Bital contributed MXN1.678 billion (about US$166 million) this year to clean up Atlantico. Most of that came out of Bital's capital reserves as of March 31 this year, and a small part will come as a charge against earnings in the third quarter this year. As part of the deal, Grupo Financiero Bital is obligated to maintain a capitalization index of 10% in its Bital banking unit as of Dec. 31, 2002. The US$166 million Bital contributed to cleaning up Atlantico, plus the estimated capital injection Bital required to maintain its capitalization index at the 10% level, add up to MXN2.634 billion (about US$260 million), IPAB said in a statement. Bital will also have to reimburse IPAB an unknown amount of money for administering Atlantico, which will be determined by an audit in the future. CONTACT: GRUPO FINANCIERO BITAL Paseo De La Reforma No. 243, Cuauhtemoc, 06500, Mexico ,D.F. Phone: 57.21.52.86 Fax: 57.21.57.83 Home Page: www.bital.com.mx Contact: Investor Relations Act. Ricardo Garza Galindo Salazar Phone: 57.21.26.40 Fax: 57.21.26.26 E-mail: ricaggs@bital.com.mx =========== P A N A M A =========== BLADEX: Plans Recapitalization Following Argentine Losses --------------------------------------------------------- Banco Latinoamerianco de Exportaciones (Bladex) will embark on a recapitalization after incurring losses of US$300 million during the first half of this year due to its exposure to Argentina. As part of the measure, the bank will issue US$100 million worth of shares, probably in October, Bladex first VP Carlos Yap told Panamanian daily La Prensa. Yap revealed that the Company has hired BNP Paribas and Deutsche Bank to advise on the capitalization and the new shares will first be offered to Bladex's main shareholders. Bladex increased its loan loss reserves from US$255 million to US$557 million this year due to the volatility of Argentina and other Latin American markets, resulting in a capital reduction from US$598 million at year-end 2001 to US$291 million at the end of June this year. Bladex specializes in foreign trade operations in Latin America and was created by the central banks of Latin America and the Caribbean. The bank has the shareholder participation of 23 countries of the region, represented by central banks and commercial banks as well as international banks and private investors. CONTACT: BLADEX Head Office Calle 50 y Aquilino de la Guardia Panama City, Panama Attention: Carlos Yap, VP - Finance & Performance Mgt. Tel. No. +1-507-210-8581 E-mail: cyap@blx.com ======= P E R U ======= MINERA VOLCAN: Workers' Strike Creating More Losses --------------------------------------------------- Already battling with losses due to weaker zinc prices, Peruvian zinc miner Minera Volcan braces for more losses. About 500 workers out of 2,500 at Volcan's Yauli mine went on strike early this week to demand a pay raise of PEN4 (US$1.10) a day, said Victor Gobitz, Volcan's operations manager. "We are failing to produce about 400 metric tons of zinc concentrates per day," Gobitz said, adding, "That would represent between US$80,000 and US$100,000 per day." Volcan reported a net loss of PEN16.2 million (US$4.5 million) in the first-half of this year, compared to PEN623,000 in net earnings a year earlier. The Company lost PEN35 million last year. The Company said last month it cut its short-term need for cash to meet debt payments after refinancing US$110 million in borrowings to extend its maturity by five years with a grace period of 18 months. The strike at the Yauli mine is the second this year at Volcan mines. In May, workers at Volcan's Paragsha mine, the Company's biggest, went on strike for 12 days in May to demand higher pay. ================= V E N E Z U E L A ================= EDC: Obtains $47.5M Worth of Syndicated Loan -------------------------------------------- Electricidad de Caracas (EDC), the Venezuela subsidiary of AES Corp., signed a syndicated bank loan agreement Friday with Morgan Chase, Dresdner Banque Nationale de Paris and ING Barings for US$47.5 million, Business News Americas reports, citing EDC investor relations director Juan Azpurua. Loan terms and conditions were not revealed. But, according to Azpurua, the funds would be used for the upgrading and maintenance of existing infrastructure. In August, EDC also obtained a seven-year, US$25-million loan from U.S. Export Import bank. The fund was allotted for the purchase of equipment and material. EDC registered a loss of VEB63.7 billion in the first-half of this year, compared to a profit of VEB32.4 billion in the same period in the previous year. CONTACT: AES VENEZUELA Avenida Rio de Janeiro Qta. Tres Pinos Chuao, VE-1061 Caracas, Venezuela Phone: +58 14 929 2552 Fax: +58 2 9937296 E-mail: venezuela@aes.org Contact: Elmar Leal, Chairman Juan Font, Vice Chairman *********** 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 * * *