/raid1/www/Hosts/bankrupt/TCRLA_Public/021113.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
Wednesday, November 13, 2002, Vol. 3, Issue 225
Headlines
A R G E N T I N A
ACINDAR: Reports ARS501.8 Mln Loss First 9 Months 2002
BANCO RIO: To Resume Auto Lending Next Week
CAMUZZI GAS: S&P Withdraws 'CCC-' Corporate Credit Rating
EDESUR: First 3Q02 Show Heavy Losses, Reverse Previous Trend
METROGAS: Registers ARS543.7 Mln In Net Losses
REPSOL YPF: To Report 31% Decline In Third-Quarter Earnings
SIDERAR: Strong Exports Push Company Into Black Through 3Q02
* Argentina Contemplates World Bank's 60-Day Grace Period
* S&P Releases Industry Report Card on LatAm Electric Utilities
B E R M U D A
TRENWICK GROUP: Ratings Lowered, CreditWatch Negative Remains
TRENWICK GROUP: 3Q02 Results Suffer Under Loss, Tax Provisions
B R A Z I L
AES CORP: Extends Expiration; Changes Certain Exchange Terms
AES CORP.: S&P Views Extension As Negative; CreditWatch Remains
CSN: Still Working on Planned Merger With Corus
INTELIG: Alcatel Must Decide On Buyer Now To Avoid Bankruptcy
* IMF Team in Brazil May Recommend $80B Loan
C H I L E
DISPUTADA: Plans Copper Smelter Expansion
E C U A D O R
PACIFICTEL: Court Rules In Company's Favor on Uniplex Suit
J A M A I C A
AIR JAMAICA: New US-Jamaica Pact Opens Opportunities
M E X I C O
AHMSA: CEO Talking to Industry Groups Over Payment Suspensions
EMPRESAS ICA: Wins Mxn179.7 Mln In Construction Contracts
P E R U
MINERA VOLCAN: Pan American Acquires Peruvian Silver Assets
T R I N I D A D & T O B A G O
BWIA: FAA Status Upgrade Necessary Part of Turnaround
BWIA: Unions Fear Loan Conditions Include Job Cuts
U R U G U A Y
UTE: Hikes Prices Once Again To Offset Increasing Costs
- - - - - - - - - -
=================
A R G E N T I N A
=================
ACINDAR: Reports ARS501.8 Mln Loss First 9 Months 2002
------------------------------------------------------
Argentina's Acindar Industrias de Aceros SA experienced
significant swelling in the loss column. The company posted red
ink of ARS501.8 million ($1=ARS3.545) for the first nine months
of 2002, over twice the loss of ARS207 million a year ago,
reports Dow Jones.
Acindar has suffered from Argentina's deep economic recession,
which led it to default on its bank loans and bonds in December.
However, the Company is confident that the currency's 70% decline
against the dollar this year would buoy its exports.
The Company, unlike other steel producers in Argentina, relies
heavily on the local market where it sells steel rods used in the
auto industry and construction.
CONTACTS: ACINDAR SA
Jose I. Giraudo, Investor Relations Manager
Phone: (5411) 4719 8674
Andrea Dala, Investor Relations Officer
Phone: (5411) 4719 8672
BANCO RIO: To Resume Auto Lending Next Week
-------------------------------------------
Banco Rio, one of Argentina's three largest private banks, will
begin offering credits for Argentines to buy new and used cars
next week. Rio is the first bank to do so since a freeze was
implemented early this year due to peso devaluation and
"pesofication" of dollar-denominated assets and liabilities.
Rio's auto credit lines are peso-denominated, carry 12- to 24-
month maturities and have annual interest rates of 14-28%.
"This announcement implies the gradual reestablishment of
lending, which is an essential element and a dynamic force of the
economy," Rio chairman Enrique Cristofani said.
Bank officials said the fresh credit could help lift sales of new
cars by 9% and purchases of used vehicles by 3% in the next four
months, a significant amount in Argentina's depressed auto
industry. Thousands of car dealers from across Argentina will be
able to participate in the offer.
Banco Rio is part of Spanish financial group SCH's Latin American
banking franchise.
CONTACT: BANCO RIO DE LA PLATA S.A.
Bartolome Mitre 480
1036 Buenos Aires, Argentina
Phone: +54-14-341-1081-1580
Fax: +54-14-341-1074-1084
Home Page: http://www.bancorio.com.ar
Contacts:
Ana Patricia B. S. de Sautuola y O'Shea, Chairman
Jose L. E. Cristofani, Executive Vice Chairman and CEO
Pablo Caride, Corporate Finance
CAMUZZI GAS: S&P Withdraws 'CCC-' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services withdrew Monday its triple-
'C'-minus corporate credit ratings on the Argentine gas
distribution company Camuzzi Gas Pampeana S.A., at the company's
request.
Camuzzi Gas Pampeana is a subsidiary of Camuzzi Argentina S.A., a
holding company devoted to public services, with investments in 7
operating companies, which are focused on natural gas
distribution, electric power transportation and distribution, and
supply of drinking water and sewage services.
ANALYSTS: Pablo Lutereau, Buenos Aires (54) 114-891-2125
Luciano Gremone, Buenos Aires (54) 11-4891-2143
CONTACT: CAMUZZI ARGENTINA S.A.
Av. Alicia Moreau de Justo 270 Piso 4o
(C1107AAF) Buenos Aires - Argentina
Phone: (54-11) 4891-2270
Mobile: (54-11) 15-5329-4876
Fax: (54-11) 4891-2237
E-Mail: hugo.krajnc@camuzzi.com.ar
Home Page: http://www.camuzzi.com.ar/
Contact:
Hugo Krajnc, Institutional Relations Director
Fabrizio Garilli, Chairman:
Martn Juan Blaquier, Vice-Chairman & C.E.O.
EDESUR: First 3Q02 Show Heavy Losses, Reverse Previous Trend
------------------------------------------------------------
Edesur, which distributes electricity to southern Buenos Aires
and the industrial belt around the capital, plunged into red in
the first nine months of 2002. After posting a profit of ARS72.7
million pesos in the first nine months of 2001, Edesur reported a
loss of ARS175.8 million (US$49.2mn) in the same period this
year. The Company also reported an operating loss of ARS8.1
million for the first nine months of this year, compared to a
profit of ARS444.2 million in 2001.
Edesur said that results for the nine-month period this year were
hit by the devaluation of the peso, the power rate freeze, a
reduction in sales volume due to lower demand, and an increase in
power thefts.
Edesur is controlled by Chile's energy holding company Enersis,
which in turn is controlled by Spain's Endesa.
CONTACT: EDESUR S.A.
Gte. Gral.: Ing. Rafael Fernandez Morande
San Jos, 140, 3o P
Capital Federal 1076
Argentina
Home Page: www.edesur.com.ar
Tel.: 4370-3700/4370-3370
Fax:4381-0708
METROGAS: Registers ARS543.7 Mln In Net Losses
----------------------------------------------
Metrogas S.A., an Argentine natural gas distribution company,
registered net losses of ARS543.7 million (US$152.7 million) in
the first nine months of 2002, reports Business News Americas.
In its announcement, the Company didn't give any comparative
figures.
Exchange rate differences accounted for a ARS576.2-million charge
in the accounts. At the end of the third quarter of this year,
Metrogas' equity stood at ARS744.8 million.
In late October, an anonymous source from Metrogas revealed that
the Company could default on a US$100-million loan coming due in
May 2003 if the government fails to increase energy rates by the
end of this year.
However, the Company is confident that rates will be increased
despite the postponement of the public hearing on gas rates. The
hearing will be held on November 18.
Metrogas defaulted on a loan worth EU110 million due Sept 27 this
year. However, unlike most other Argentine companies, the Company
had been able to make interest payments after the currency
devaluation last January.
Metrogas is 70% owned by the Gas Argentino consortium of the UK's
British Gas (55%), and Spain's Repsol-YPF (45%).
Click link to see summary of financial statements:
http://bankrupt.com/misc/Summary_Financial_Statements.htm
CONTACT: METROGAS
Alberto Alfredo Alvarez, President
William Harvey Adamson, First VP
Gen. Director Enrique Barruti, HR Director
Fernando Aceiro New Bus. Director
Luis Domenech Admin. and Fin. Director
Their Address:
G. Araoz de Lamadrid 1360
1267 Buenos Aires, Argentina
Phone: (800) 422-2066
Fax: (201) 262-2541
Email: info@metrogas.com.ar
URL: http://www.metrogas.com.ar
REPSOL YPF: To Report 31% Decline In Third-Quarter Earnings
-----------------------------------------------------------
Repsol YPF SA, the biggest oil company in Spain and Argentina,
was scheduled to report third-quarter earnings before the start
of trading in Madrid on Tuesday, reports Bloomberg. According to
the median forecast of seven analysts polled by Bloomberg News,
Repsol is expected to report a 31%-decrease in third-quarter net
income to EUR299 million ($304 million) from EUR432 million a
year earlier. Estimates ranged from EUR281 million to EUR375
million.
The estimate for third-quarter earnings before interest and taxes
is for a 43% decline, to EUR701 million from EUR1.23 billion a
year earlier. Estimates from four analysts ranged from EUR675
million to EUR747 million. The median estimate of six for nine-
month net income was EUR1.61 billion, compared with EUR1.68
billion a year earlier.
Earnings fell because of the January currency devaluation in
Argentina, where Repsol bought driller YPF for US$15 billion in
1999, and because of government-imposed measures to shore up the
country's banks.
CONTACT: Repsol YPF SA
Head Office
Paseo de la Castellana 278
28046 Madrid
Spain
Tel +34 91 348 81 00
Fax +34 91 348 28 21
Telex 48162 RESOLE
Web http://www.repsol.com/
Contacts:
Alfonso Cortina de Alcocer, Chairman
Jose Vilarasu Salat, Vice Chairman
Antonio Hernandez, Vice Chairman
SIDERAR: Strong Exports Push Company Into Black Through 3Q02
------------------------------------------------------------
Argentine flat steelmaker Siderar, part of the Techint group,
found new profits this year after posting losses last year.
According to Business News Americas, for the first nine months of
this year, Siderar registered profits of ARS17.6 million
(currently US$5mn). That compares to a loss of ARS92.1 million
(around US$26mn at today's exchange rate) for the same period in
the previous financial year.
"These results are due fundamentally to higher international
prices, reflecting a trend that occurred in the second quarter of
the year; reversing an unfavorable situation in the first
quarter. This was very important because exports increased in
both price and volume terms," Guillermo Etchepareborda, investor
relations manager at Siderar, said.
Sales volumes on the internal market remained depressed, totaling
185,000t in the first nine months, down 8% on 201,000t for the
same year-ago period.
Exports totaled over 1Mt, up 26% on 819,000t on the first nine
months of last year, he said.
Net revenues from sales for the first nine months reached 1.86bn
pesos, 34% more than 1.39bn for same-period last year.
A significant portion of the increase comes from converting
foreign sales revenues into pesos, since the devaluation of the
local currency was greater than wholesale inflation. Exports also
rose by volume, offsetting a fall in domestic sales revenues.
According to a previous edition of the TCR-LA, Techint is asking
for more time in paying the Company's US$550-million debt.
Siderar needs the extension to avoid being forced into bankruptcy
as it tries to recuperate from four years of recession.
The devaluation makes it harder for the Company to pay debts that
are in dollars.
CONTACT: Leonardo Stazi
Siderar S.A.I.C.
Phone: 54 (11) 4018-2308/2249
Home Page: www.siderar.com
* Argentina Contemplates World Bank's 60-Day Grace Period
---------------------------------------------------------
Argentina may have to use the 60-day extension to make debt
payments to the World Bank, reports local daily Clarin. A payment
of $805 million comes due this Thursday, after the original
deadline of November 9 was extended.
According to the report, the government may use some $280 million
of central bank reserves on Thursday, then pay the remainder in
60 days before a higher interest rate on the loan takes effect.
Argentine Finance Secretary Guillermo Neilsen is on his way to
continue talks for a new aid package from the International
Monetary Fund. Negotiations have failed to produce a loan for
Argentina after the country refused to impose some of the changes
the IMF requires before granting the requested loan.
Earlier, the country had made it clear that it will not be using
its reserves to pay the World Bank. Reports say that it is in the
interest of protecting the stability of the currency, which has
plunged since Argentina defaulted on its debt last December.
* S&P Releases Industry Report Card on LatAm Electric Utilities
---------------------------------------------------------------
The outlook for Argentine electric companies continues to be
uncertain, and the deep crisis is reflected in new defaults,
according to a report released today by Standard & Poor's Ratings
Services.
Argentine electric generators are being affected by extremely low
electricity prices, which have greatly weakened their cash flows
and the repayment capacity of their high levels of U.S. dollar-
denominated debt.
The price for electricity decreased to approximately US$7 per
megawatt-hour (MWh) from approximately US$22 per MWh in 2001,
mainly as a result of the pesification of the natural gas supply
contracts between natural gas producers and power generators,
combined with the strong devaluation of the Argentine peso (260%
during 2002).
In October 2002, Standard & Poor's lowered many of its ratings on
Brazilian utilities and assigned them negative outlooks. The
rating actions were due to these companies' reduced financial
flexibility to cover maturities coming due in 2002 and 2003, as
well as the increasing uncertainties about the regulatory
framework. Significant uncertainties also arise on the regulatory
front, as important issues will need to be addressed by a new
administration at the federal government level.
The Chilean electric industry faces higher regulatory risks
stemming from the introduction of certain changes in 1999 that
oblige power generators to comply with sale contracts even during
drought periods. As a result, hydro generators are reluctant to
sign new contracts in order to reduce their exposure to droughts,
an unpredictable event.
The Mexican electric industry is driven by the expectations of a
new regulatory framework. Discussions in Congress are taking
place in order to analyze and implement the "Reforma Electrica."
"Industry Report Card: Latin American Electric Utilities" is
available on RatingsDirect, Standard & Poor's web-based credit
analysis system, at www.ratingsdirect.com. Media copies of the
full report may be obtained by contacting Gregg Stein at (1) 212-
438-1730, or by e-mail at
gregg_stein@standardandpoors.com.
ANALYST: Sergio Fuentes, Buenos Aires (54) 114-891-2131
=============
B E R M U D A
=============
TRENWICK GROUP: Ratings Lowered, CreditWatch Negative Remains
-------------------------------------------------------------
Standard & Poor's Monday said it lowered its counterparty credit
rating on Trenwick Group Ltd. to 'CCC+' from 'B'. It also said
it lowered its ratings on the company's various operating
subsidiaries and that the ratings remain on CreditWatch negative
following the group's third-quarter net loss of $136.9 million,
with $90.7 million of reserve additions and $54.5 million of
deferred tax writedowns.
"With the reserve additions there is a diminished likelihood of
sufficient dividends from the operating companies and, as a
result, more uncertainty surrounding Trenwick's ability to meet
its 2003 debt repayment and debt service requirements," noted
credit analyst Karole Dill Barkley.
"Considerable uncertainty remains about whether banks will renew
letters of credit that allow continued underwriting at Lloyds, as
well as the potential for additional reserve development from the
fourth-quarter 2002 reserve study."
The creditors under Trenwick's credit agreement are expected to
decide by Nov. 22, 2002 whether to renew and extend the group's
$230 million letters of credit. If the banks elect not to renew,
or to demand cash collateral, there is substantial doubt as to
Trenwick's ability to continue underwriting at Lloyds or continue
as an ongoing concern. Management has disclosed that Trenwick
and/or one or more of its subsidiaries may be forced to seek
protection from creditors.
The ratings were originally placed on CreditWatch with negative
implications on Oct. 21, 2002.
Standard & Poor's will continue to monitor developments at
Trenwick in the next few weeks, and will review the ratings
following the bank decision whether to extend its letters of
credit at Lloyds, following the completion and Standard & Poor's
review of a third-party reserve study currently underway for all
key operating platforms, and after any other material
developments. At that time, ratings on the entitities could be
affirmed or lowered.
ANALYSTS: Karole Dill Barkley, New York (1) 212-438-7167
Robert G Partridge, New York (1) 212-438-7231
Jason A Jones, New York (1) 212-438-7174
TRENWICK GROUP: 3Q02 Results Suffer Under Loss, Tax Provisions
--------------------------------------------------------------
Trenwick Group Ltd. ("Trenwick") reported an operating loss of
$135.0 million, or $3.67 per share, for the third quarter of 2002
and an operating loss of $142.6 million, or $3.88 per share for
the first nine months of 2002. Trenwick's operating loss for the
third quarter of 2002 resulted principally from $90.7 million of
loss reserve increases recorded in Trenwick's United States
operating subsidiaries and Trenwick International Limited and a
$54.5 million loss related to the establishment of a deferred tax
valuation reserve in connection with Trenwick's U.S. operations.
The loss reserve increases emanate from reported loss activity
with related increases in incurred but not reported reserves,
predominantly for accident years 1997 through 2000, as well as a
reassessment of appropriate reserve levels. Trenwick's operating
results for the first nine months of 2002 were adversely affected
by the third quarter loss reserve increase, deferred tax
valuation reserve and approximately $23 million of loss
development related to the September 11th terrorist attacks
recorded in the first quarter of 2002.
W. Marston Becker, Acting Chairman and Acting Chief Executive
Officer, stated, "The increase in Trenwick's loss reserves and
the introduction of a deferred tax valuation reserve in the third
quarter reflects Trenwick's commitment to improving the quality
of its balance sheet. These actions, along with any appropriate
adjustments to loss reserves following completion of the current
review by independent actuarial consultants, will provide
Trenwick with an appropriate base upon which it can rebuild
credibility with policyholders, rating agencies, creditors and
investors."
Trenwick's gross and net premium writings totaled $389.8 million
and $182.3 million, respectively, for the quarter ended September
30, 2002 and $367.5 million and $242.8 million, respectively, for
the quarter ended September 30, 2001. For the first nine months
of 2002, gross and net premium writings totaled $1,305.3 million
and $763.2 million, respectively, compared to gross and net
premiums writings for the first nine months of 2001 of $1,060.7
million and $748.4 million, respectively.
As previously announced, on September 19, 2002 Berkshire Hathaway
agreed to provide additional Lloyd's funding and a qualifying
quota share reinsurance facility to Trenwick's Lloyd's Syndicate
839. The reduction in Trenwick's net premium writings for the
third quarter and the first nine months of 2002 compared to 2001
was due to $93.8 million of cessions made to Berkshire Hathaway
under its agreements with Trenwick's Lloyd's Syndicate 839.
The combined loss and expense ratio for Trenwick for the third
quarter of 2002 was 145.1% compared to a combined loss and
expense ratio of 150.4% for the third quarter of 2001. The 2002
third quarter results include 46.5 percentage points related to
adverse loss reserve development for 2000 and prior accident
years. The 2001 third quarter results include 43.4 percentage
points of unusual losses, principally related to the September
11th terrorist attacks. Trenwick's combined loss and expense
ratio for the first nine months of 2002 was 118.7% compared to a
combined loss and expense ratio of 133.8% for the first nine
months of 2001. The 2002 year to date results include 22.2
percentage points related to adverse loss reserve development of
2000 and prior accident years and 3.2 percentage points related
to adverse loss reserve development related to the September 11th
terrorist attacks. The results for the first nine months of 2001
include 17.7 percentage points for abnormal catastrophe losses
and 11.5 percentage points relating primarily to loss reserve
strengthening reported in the second quarter of 2001.
Net Income
Trenwick reported a net loss available to common shareholders of
$137.2 million or $3.73 per share for the third quarter of 2002,
compared to a net loss of $96.1 million or $2.61 per share for
the third quarter of 2001. The largest contributor to the net
loss in the third quarter of 2002 was the increase in loss
reserves related to adverse development of 2000 and prior
accident years at Trenwick's United States subsidiaries and
Trenwick International Limited. The third quarter of 2002 also
included a non-cash charge of $54.5 million or $1.48 per share
primarily resulting from the establishment of a 100% valuation
allowance against its U.S. deferred tax asset due to a
determination in the third quarter that Trenwick's cumulative
financial accounting losses do not currently support a position
that it would be able to realize the tax benefits of past losses
in the future. Also included in the results of the third quarter
of 2002 is a reduction in operating earnings of $5.5 million
related to underwriting income ceded to Berkshire Hathaway in
connection with its agreements with Trenwick's Lloyd's Syndicate
839. The 2001 third quarter net loss resulted primarily from the
$99.0 million, or $2.69 per share of catastrophe losses,
principally from the September 11, 2001 terrorist attacks.
For the first nine months of 2002, Trenwick reported a net loss
available to common shareholders of $188.0 million or $5.11 per
share, compared to a net loss of $128.0 million or $3.48 per
share for the first nine months of 2001. In addition to the third
quarter loss reserve strengthening, the establishment of a
reserve against Trenwick's deferred tax asset in the U.S. and the
reduction in earnings from the Berkshire Hathaway transaction,
the results for the first nine months of 2002 included a charge
of $41.7 million, or $1.13 per share, for the cumulative effect
of the change in accounting for goodwill, which resulted from
Trenwick's adoption of a new accounting standard effective
January 1, 2002. Also included in the results of the first nine
months of 2002 is a charge of $4.2 million (net of commission
income of $2.8 million) related to the previously reported sale
of the property catastrophe business of Trenwick's Bermuda
subsidiary, LaSalle Re Limited.
Investment Income
Trenwick's net investment income was $24.4 million in the quarter
ended September 30, 2002 compared to $30.8 million for the
quarter ended September 30, 2001. For the first nine months of
2002, net investment income was $81.5 million compared to $96.1
million for the first nine months of 2001. These decreases are
attributable to the reduction in invested assets in 2002 as a
result of the repayment of Trenwick's term loan facility during
the second quarter of 2002 combined with a decrease in market
yields over the course of 2002.
Trenwick posted net realized investment losses of $3.1 million
and net realized investment gains of $2.3 million in the quarter
and nine months ended September 30, 2002, compared to net
realized investment losses of $3.3 million and net realized
investment gains of $7.8 million for the same periods in 2001.
The losses recorded during the third quarter of 2002 were a
result of actions taken to reposition the investment portfolio
into higher quality fixed income securities. The realized losses
recorded during the 2001 quarter were a result of losses on the
sale of equity securities and on the write-down of certain
investments.
Shareholders' Equity
As of September 30, 2002, Trenwick's consolidated common
shareholders' equity totaled $321.9 million, or $8.75 per share,
compared to $498.3 million or $13.52 per share at December 31,
2001. The decrease in consolidated shareholders' equity resulted
mainly from the increase in loss reserves and the establishment
of a deferred tax valuation reserve in the third quarter of 2002
and the write down of all of Trenwick's goodwill from the
Trenwick-LaSalle business combination completed in 2000 as a
result of the adoption of a new accounting standard. As of
September 30, 2002, Trenwick has no goodwill on its balance sheet
and its GAAP and tangible book values are the same.
Cash Flow
During the third quarter and first nine months of 2002, Trenwick
reported positive cash flow from underwriting of $15.5 million
and $23.5 million, respectively, and positive cash flow from
operations of $34.9 million and $92.7 million, respectively. This
positive cash flow is a result of increased premium writings
combined with the decrease in interest expenses paid, a result of
repayment of Trenwick's term loan during the second quarter of
2002. During the third quarter of 2001, Trenwick had positive
cash flow from underwriting of $33.9 million, and positive cash
flow from operations of $49.3 million, which resulted principally
from an increase in premium writings combined with a decrease in
paid losses on run-off business acquired in previous business
combinations. Cash flow from financing activities for the quarter
ended September 30, 2002 included $40.0 million in proceeds from
the issuance of Trenwick's Series B Cumulative Convertible
Perpetual Preferred Shares to European Reinsurance Company of
Zurich, a subsidiary of Swiss Reinsurance Company.
Accounting Standard
Effective January 1, 2002, Trenwick adopted a new standard which
suspended systematic goodwill amortization and instead uses
periodic tests for goodwill recoverability. Trenwick's Bermuda
holding company, LaSalle Re Holdings Limited, has credited the
negative goodwill balance of $11.6 million and based upon the
results of a combination of market value and cash flow tests,
Trenwick recorded a write down of all $53.2 million of the
remaining goodwill. Both actions were recorded as a cumulative
effect of an accounting change as of January 1, 2002.
Recent Developments
On October 18, 2002, A.M. Best Company lowered the ratings of the
operating subsidiaries of Trenwick. The downgrade in Trenwick's
A.M. Best ratings constituted an event of default under
Trenwick's bank credit facility, under which banks had issued
$226 million of letters of credit to support Trenwick's
underwriting at Lloyd's. Trenwick is currently in discussion with
the letter of credit providers regarding the current event of
default and letter of credit financing for Trenwick's
participation at Lloyd's for the 2003 underwriting year.
In response to the recent A.M. Best Company downgrades, on
October 25, 2002 Trenwick entered into an underwriting facility
with Chubb Re, Inc. The underwriting facility permits Trenwick to
underwrite up to $400 million of U.S. reinsurance business on
behalf of Chubb Re in the remainder of 2002 and 2003. Chubb Re
retains final underwriting authority and claims authority with
respect to all business generated through the underwriting
facility.
Trenwick also announced on October 25, 2002 that it had engaged
independent actuaries to conduct a review of Trenwick's reserves
for loss and loss adjustment expenses at each of its operating
subsidiaries. Trenwick expects that the reserve study will take
between 60 and 90 days to complete. Trenwick will record any
appropriate adjustments to its reserves based upon the
information provided by the reserve study in its reported results
for the fourth quarter of 2002.
In addition, Trenwick announced on October 30, 2002 that it would
cease underwriting its U.S. specialty program insurance business
effective immediately. Trenwick will continue to administer and
pay claims in connection with its previously underwritten
specialty program insurance policies.
Lastly, on November 4, 2002, National Indemnity Company, a member
of the Berkshire Hathaway group of insurance companies, agreed to
provide to Trenwick's Lloyd's Syndicate 839 (pound)100 million
for the 2003 year of account, an increase from (pound)62.5
million provided to Syndicate 839 for the 2002 year of account.
In addition, Berkshire Hathaway agreed to provide a qualifying
quota share reinsurance facility of (pound)30 million to
Syndicate 839 for the 2003 year of account.
Common Share Dividends
In concert with other actions being taken, Trenwick's Board of
Directors has elected to suspend, with immediate effect and for
an indefinite period, dividends payable on Trenwick's outstanding
common shares. Trenwick's Board of Directors will continue to
review Trenwick's common share dividend policy each quarter.
Among the factors that were and will be considered by Trenwick's
Board of Directors in determining whether to pay a common share
dividend and the amount of each dividend are the results of
operations and the capital requirements, growth and other
characteristics of Trenwick's businesses.
Background Information
Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with two principal businesses operating
through its subsidiaries located in the United States, the United
Kingdom and Bermuda. Trenwick's reinsurance business provides
treaty reinsurance to insurers of property and casualty risks
from offices in the United States and Bermuda. Trenwick's
international operations underwrite specialty insurance as well
as treaty and facultative reinsurance on a worldwide basis
through its London-based insurer and at Lloyd's.
Safe Harbor for Forward-Looking Statements
Certain statements made in this press release that are not based
on current or historical fact are forward-looking in nature
including, without limitation, statements containing words
"believes," "anticipates," "plans," "projects," "intends,"
"expects," "estimates," "predicts," and words of similar import.
Such forward-looking statements, including in particular
Trenwick's forecast of future earnings, involve known and unknown
risks, assumptions, uncertainties, and other factors that may
cause actual results, performance, or achievements of Trenwick or
its industry to differ materially from any future results,
performance, or achievements expressed or implied by such
forward-looking statements.
Trenwick has identified certain risk factors which could cause
actual plans or results to differ substantially from those
included in any forward-looking statements. These risk factors
are discussed in Trenwick's Securities and Exchange Commission
filings, including but not limited to its most recent Form 10-K,
Form 10-Q and Form 8-K filed with the Securities and Exchange
Commission, and such discussions regarding risk factors are
hereby incorporated by reference into this press release. Copies
of such Securities and Exchange Commission filings are available
from Trenwick or directly from the Securities and Exchange
Commission.
To see financial statements:
http://bankrupt.com/misc/Trenwick_Group.htm
CONTACT: TRENWICK GROUP LTD.
Alan L. Hunte, 441/292-4985
Executive Vice President and Chief Financial Officer
===========
B R A Z I L
===========
AES CORP: Extends Expiration; Changes Certain Exchange Terms
------------------------------------------------------------
The AES Corporation (NYSE: AES) announced Monday that it extended
the expiration date of the exchange offer and it had changed
certain terms of the exchange offer relating to its outstanding
$300,000,000 8.75% Senior Notes due 2002 ("2002 Notes") and
$200,000,000 7.375% Remarketable or Redeemable Securities due
2013, which are puttable in 2003 ("ROARs").
Such extension of the expiration date and certain changes are set
forth below:
(1) extension of the exchange offer expiration date from 5:00p.m.
New York City time on November 8, 2002, to 5:00p.m. New York City
time on December 3, 2002.
(2) for each $1,000 principal amount of its 2002 Notes, the
holders will receive $650 in cash and $350 principal amount of a
new issue of its 10% senior secured notes due 2005;
(3) the deadline by which holders of the 2002 Notes and ROARs
must tender in order to be eligible to receive the early tender
bonus payment is 5:00 p.m., New York City time, on November 18,
2002;
(4) holders that tender on or prior to 5:00 p.m., New York City
time, on November 18, 2002 and do not withdraw such securities
will, if the exchange offer is consummated, be entitled to an
early tender bonus payment in the amount of $15 for each $1,000
principal amount of 2002 Notes tendered and $5 for each $1,000
principal amount of ROARs tendered;
(5) holders that tender on or prior to the expiration date and do
not withdraw such securities will receive an incremental cash
payment in the amount of $5 for each $1,000 principal amount 2002
Notes tendered and $5 for each $1,000 principal amount of ROARs
tendered;
(6) the consummation of the exchange offer is subject to the
condition that 80% of the aggregate principal amount of the 2002
Notes and 80% of the aggregate principal amount of the ROARs are
received and not withdrawn;
(7) the tenders of the 2002 Notes and the ROARs may be withdrawn
at any time prior to 5:00pm, New York City time, on November 18,
2002;
(8) the new senior secured notes will be subject to a certain
amount of mandatory redemption on the second anniversary of the
issuance of the new notes, and mandatory redemption with a
portion of the net cash proceeds received from certain asset
sales by AES and with a portion of adjusted excess cash flow of
AES; and
(9) a holder of ROARs will receive a contingent value right that
will entitle such holder to receive, within thirty days of the
closing of the sale of CILCORP, a cash payment of $20 for each
$1,000 principal amount of ROARS validly tendered by such holder.
Certain other changes in the terms of the new senior secured
notes are reflected in the offering memorandum, which will be
distributed to all holders who are eligible to participate in the
exchange offer.
The AES Corporation has been informed by the exchange agent that,
as of 5:00 p.m., New York City time, on November 8, 2002,
approximately $16,863,000 in aggregate principal amount of its
2002 Notes and $44,494,000 in aggregate principal amount of its
ROARs had been tendered in the exchange offer. This amount
represents approximately 5.6% and 22.2% of outstanding 2002 Notes
and ROARs, respectively. Consummation of the exchange offer is
subject to a number of significant conditions.
The offering of the new senior secured notes in the exchange
offer is being made only to "qualified institutional buyers" and
"persons other than a U.S. person" located outside the United
States, as such terms are defined in accordance with Rule 144A
and Regulation S of the Securities Act of 1933, as amended, and
two individuals affiliated with AES who are accredited investors.
The new senior secured notes will not be registered under the
Securities Act of 1933, or any state securities laws. Therefore,
the new senior secured notes may not be offered or sold in the
United States absent an exemption from the registration
requirements of the Securities Act of 1933 and any applicable
state securities laws. This announcement is neither an offer to
sell nor a solicitation of an offer to buy the new notes.
CONTACT: The AES Corporation
Kenneth R. Woodcock, 703/522-1315
AES CORP.: S&P Views Extension As Negative; CreditWatch Remains
---------------------------------------------------------------
Standard & Poor's Ratings Services will not change the corporate
credit rating of AES Corp. (B+/Watch Neg/--) following AES'
announcement of the extension until Dec. 3, 2002, of the tender
offer for its December 2002 notes and June 2003 ROARS, with
changes in the terms of the offer. Standard & Poor's believes
that the extension reflects the difficulty in reaching an
agreement given the multitude of parties involved, the
circumstances of the exchange offer, and the time until the Dec.
15 maturity date is reached.
Standard & Poor's does reiterate that if the transaction is not
consummated, the rating would fall substantially given that
liquidity to pay the Dec. 15 maturity would be tight, and the
likelihood of rolling the bank debt in 2003 would be lower given
that this is currently contingent on the exchange offer. As such,
if the tender is unsuccessful, a default or bankruptcy filing is
possible.
ANALYST: Scott Taylor, New York (1) 212-438-2057
CSN: Still Working on Planned Merger With Corus
-----------------------------------------------
Brazilian flat steelmaker CSN and Anglo-Dutch steel group Corus,
which are looking to complete a merger in the first quarter of
2003, are currently undertaking due diligence on each other's
operations. The process is expected to complete November 17.
The stock-swap deal, which was announced in July, would create a
company with installed capacity of 24Mt/y of crude steel and
annual revenues of US$14 billion. Corus shareholders would hold
62.4% of the enlarged group and CSN shareholders the rest, via a
new Brazilian-listed holding company.
Rumors have surfaced that Corus was considering abandoning the
merger, seen by some as an acquisition of CSN, but as always, CSN
denies the rumors, saying that the operation is proceeding as
planned.
Brazil's state development bank BNDES, one of CSN's major
creditors, and regulatory authorities must approve the merger.
Rio de Janeiro-based CSN must also wait for creditor and
regulator approval before initiating a new round of investments.
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
INTELIG: Alcatel Must Decide On Buyer Now To Avoid Bankruptcy
-------------------------------------------------------------
Alcatel must approve an Intelig buyer in order to avert an
impending bankruptcy of the second-largest long distance
operator, Business News Americas indicates. Shareholders of
Intelig -- National Grid, Sprint and France Telecom -- have been
seeking a strategic investor since November 2001.
To date, five parties have submitted proposals, which have been
approved by the board. These parties include local fixed line
operator Brasil Telecom; Intelig executives; fixed line operator
Global Village Telecom (GVT); US-based private equity funds
FondElec/ Southern Cross; and local businessman Nelson Tanure of
Brazil's Cia. Docas de Investimentos.
Alcatel has a say in any change of control at the long distance
operator, as stated in a contract suppliers have with the
Company. According to Intelig's shareholders, if Alcatel fails to
approve a buyer, then they will declare the Company bankrupt.
Reports have it that Alcatel's number one choice is Brasil
Telecom because it is a major client. BES Securites analyst
Carolina Gava and BBVA analyst Roger Oey also share the same view
due to synergies with Intelig.
However, Brasil Telecom is likely not to be picked because of its
inability to take more than a 19.9% stake. Brasil Telecom is
barred from acquiring more than 19.9% stake of any company before
it completes build-out goals, forecast to occur in 2003.
Meanwhile, an Intelig spokesperson told Business News Americas on
October 31 that GVT was in the final stages of acquiring Intelig,
confirming an announcement made by GVT president Amos Genish the
same week during Brazil's annual Telexpo telecoms conference in
Florianopolis.
Gava and Oey also agreed that an Intelig bankruptcy is unlikely
to happen because it would be very negative for both Intelig
shareholders and suppliers.
"Bankruptcies take a long time to file, and these shareholders
want out now," Gava said.
Intelig, which owes US$140 million to Alcatel and US$30 million
to Canadian vendor Nortel Networks, was earlier valued at US$200
million, excluding its debt, by local papers.
* IMF Team in Brazil May Recommend $80B Loan
--------------------------------------------
The International Monetary Fund sent to review Brazil's
compliance with spending, reserves and debt level targets is
contemplating a US$3 billion loan payment by the end of this
year.
Both the IMF and the government agree that Brazil needs the loan
in order to improve investor confidence in the country's ability
to avoid defaulting on some US$300 billion of debt. At least
US$80 billion of this comes due in 2003.
A recent plunge in the nation's bond prices and currency resulted
from investor's concerns that the new president may trigger a
default on the nation's debts. Brazil's real rose 1.8 percent to
3.4790 per dollar at 8:40 a.m. New York time while the benchmark
8 percent bond due in 2014 fell 0.19 cent on the dollar to 58.50,
raising the yield to 21.03 percent, according to J.P. Morgan
Chase & Co.
Bloomberg reports that the IMF team will likely be headed by
Jorge Marquez-Ruarte and Loenzo Perez, while Brazil's
representatives at the meetings will include Amaury Bier, the
former executive secretary of Brazil's Finance Ministry, Treasury
Secretary Eduardo Guardia, Caramuru, and central bank economic
policy director Ilan Goldfajn. Talks are expected to last for a
week.
The IMF team is also interested in meeting the transition team
formed by the country's new president, Inacio Lula da Silva.
However, the head of Lula's transition team Antonio Palocci said
no meeting had been scheduled.
The country's ability to keep a primary budget surplus would play
a very big role in its capacity to pay future payments to the
IMF. Lula will have to secure the country gets at least 3.4
percent of the gross domestic product. The next review on the
loan accord is set for February next year.
Lula promised to keep that target, but added that the country
must lessen its dependency on international loans and try to use
domestic investments to improve the economy.
Investors say Brazil has the potential to meet all targets,
except the year-end public debt goal - set at BRL830 billion
(US$234 billion). The government disclosed the net public debt
was BRL885.2 billion, as of September.
=========
C H I L E
=========
DISPUTADA: Plans Copper Smelter Expansion
-----------------------------------------
Exxon Mobil Corp.'s mining unit in Chile is planning a US$34
million expansion and technical upgrade of its Chagres smelter,
reports Reuters. Disputada de las Condes submitted an
environmental impact statement, which stipulates an upgrade of
the smelter for increased capacity and poutput, for the project
last Oct 25.
The statement also includes plans on equipment changes to reduce
gas emissions during the copper treatment process. According to
the report, Chagres receives copper concentrates from Disputada's
two mines, Los Bronces and El Soldado.
The project proposes to boost output of copper concentrates from
Los Bronces to 220,000 tons next year. It also aims to double
copper cathodes to about 24,000 tons.
Exxon Mobil is close to finalizing the sale of Disputada to South
Africa's Anglo American AAL.L AGJL.J for about US$1.3 billion.
CONTACT: Cia. Minera Disputada de las Condes S.A.
Av. Pedro de Valdivia 291
Providencia
Santiago
Chile
Phone: (56 2) 230 6000
Fax: (56 2) 230 6280
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, Texas 75039-2298
http://www2.exxonmobil.com/
Contacts:
For all inquiries, call:
ExxonMobil Shareholder Services
Phone: 1 800 252 1800 (within the Continental U.S.)
781 575 2058 (outside the Continental U.S.)
In Chile:
Mobil Cono Sur Ltda.,
Av. Nva Tajamar N. 555 Dpto. 301
Las Condes, Santiago, Chile
Phone: 56 2 364 6000
Home Page: http://www.esso.com/eaff/essocca/
=============
E C U A D O R
=============
PACIFICTEL: Court Rules In Company's Favor on Uniplex Suit
----------------------------------------------------------
Ecuadorian fixed line operator Pacifictel won in a case lodged
against it by Miami-based international carrier Uniplex Telecom
Technologies. Uniplex had filed a US$7-million suit against
Pacifictel after the operator terminated its relationship with
the carrier in June 2001, citing breach of contract on Uniplex's
part.
But according to a Business News Americas report, Paris-based
International Court of Arbitration ruled in favor of Pacifictel
and freed it from its obligation towards Uniplex. In fact, the
court ordered Uniplex to pay Pacifictel US$670,973 corresponding
to unpaid interconnection fees.
In related news, Pacifictel chairman Juan Ramon Jimenez sued
former chairmen Raul Cordovez and Wilson Correa for committing
"administrative irregularities" that might have prevented the
Company from recovering US$2 million from Uniplex.
Pacifictel, which has 575,000 lines in service, is currently
struggling to stay afloat. TCR-LA earlier reported that the
Company is at risk of being intervened by telecom council,
Conatel, for not fulfilling expansion plans and improving service
quality.
The Company's sole shareholder, Ecudorian fund Fondo de
Solidariedad, recently received approval from Conatel to complete
its search for a foreign administrator to run the Company.
Interested parties include Spain's Telefonica, Mexico's America
Movil; Bell Canada; Swedtel and Andrade Gutierrez (AG) Telecom,
consultancies linked to Swedish operator Telia and Brazilian
operator Telemar, respectively; and a consortium between US
carrier Sprint and Washington-based telecoms management and
technical consulting firm Taylor McKenzie.
=============
J A M A I C A
=============
AIR JAMAICA: New US-Jamaica Pact Opens Opportunities
----------------------------------------------------
A new bilateral air pact was signed by Jamaica and the United
States, which gives Air Jamaica access to all international
gateways in the US. The agreement, signed on Wednesday in
Washington, supersedes an earlier agreement that limited entry
points to 10. An article from The Jamaica Gleaner described the
agreement as "open skies", and "all-cargo".
The agreement, a liberal edition of the original 1978 air pact,
included the term `unnamed', which allows Air Jamaica to switch
entry points on six months notice. Air Jamaica is also given
operational freedom to decide on capacity, flight frequency and
aircraft type. The airline will also remain answerable to local
aviation authorities, and is required to practice fair
competition.
Air Jamaica's new president and chief operating officer Bruce
Nobles said they are very pleased with the results. The reports
disclosed that the new pact also gives the island what aviation
experts refer to as '7th freedom', which allows for the
transshipment of air cargo directly to a third country, expanding
previous provisions that had limited 'all-cargo' movement.
The `Community of Interest' principle allowed Air Jamaica to
assume the post of official airline of Barbados and St. Lucia.
This helps the airline compete with the numerous commercial
players in the US.
The pact applies equally to both countries, based on reciprocity.
It does not require either country to provide airport space for
the newcomer. Home carriers are not obliged to accommodate
operational space for the new entrants.
Any complaints on the deal will be resolved by a government-to-
government consultation, which could result to arbitration in the
event of a failure of negotiations. A third option would be to
appeal to trade regulators.
CONTACT: Air Jamaica
4 St. Lucia Avenue
Kingston 5,
Jamaica
Tel No. 876/922-3460
Fax /929-5643
Email: webinfo@airjamaica.com
Contact:
Gordon Stewart, Chairman
Allen Chastanet, Vice President for Marketing and Sales
===========
M E X I C O
===========
AHMSA: CEO Talking to Industry Groups Over Payment Suspensions
--------------------------------------------------------------
Mexican steelmaker Ahmsa CEO Alonso Ancira arranged to meet with
private sector industry associations and local business people in
Monclova on November 18, according to a report by Business News
Americas. The goal of the meeting is to inform them of the
Company's position regarding suspension of payments and the
situation with the creditor banks.
Roberto Elizondo, president of the National Chamber of Industry,
expects that the business community will seek to impose
conditions to benefit suppliers and contractors depending on the
firm.
Also next week, AHMSA's legal representatives are scheduled to
meet with their counterparts from creditor banks to continue
negotiations on restructuring the firm, the banks' spokesperson,
Ronald Dickins, said. Mr. Dickins also said the meeting would
seek to define strategies to pursue on the issue.
The measure follows an unsuccessful attempt by the banks to hold
an extraordinary general meeting of shareholders on November 7,
the same day that Ahmsa held its own official shareholders'
meeting.
AHMSA discredited the banks' meeting claiming that Manuel
Gutierrez, who called the meeting at the behest of the banks, had
resigned from his post as external auditor the day before he
convoked the meeting. Monclova-based AHMSA published his letter
of resignation on the Mexico City stock exchange website.
The banks broke off negotiations with the present board early
this year, accusing it of not being prepared to implement the
modifications necessary to have a bankruptcy protection order, in
place since May 1999, lifted. The parties had arrived at a
preliminary agreement on Ahmsa's US$1.8 billion in debt, but the
board never ratified the plan.
The agreement required the conversion US$540 million of debt to
equity and the sell-off of non-essential assets worth US$120
million. This would leave AHMSA with debts of US$1.14 billion,
which would be rescheduled with a final installment payable
September 2009.
Under the plan, the GAN industrial group would have maintained
control of AHMSA with 50.1% of the firm, the banks would have
40%, and minority shareholders the rest.
CONTACT: AHMSA
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
Contacts:
Alonso Ancira Elizondo, CEO, Vice Chairman, Pres./CEO
Jorge Ancira Elizondo, Chief Financial Officer
Manuel Ancira Elizondo, Chief Operating Officer
EMPRESAS ICA: Wins Mxn179.7 Mln In Construction Contracts
---------------------------------------------------------
Mexico City, November 11, 2002 - Empresas ICA Sociedad
Controladora, S.A. de C.V. (BMV and NYSE: ICA), the largest
engineering, construction, and procurement company in Mexico,
announced today that it signed Civil Construction contracts worth
Ps. 179.7 million. The contracts, which are included in ICA's
backlog as of October 2002, include:
- The construction of the multiple purpose annex buildings; the
construction of security booths and their interior and exterior
infrastructure; as well as complementary work and road access for
the Santa Martha Acatitla Prison, in Mexico City's Iztapalapa
municipality. The contract is an enlargement of an earlier
contract signed in September 2002, and work is to be completed in
15 months at a cost of Ps. 157.4 million.
- The restoration of the 05R-23L runway and complementary work
for the Mexico City International Airport. The work is to be
completed in two months at a cost of Ps. 22.3 million.
"These projects were awarded under the traditional public works
procurement process. They represent a step forward in the pace of
contracting for new works and show ICA's ability to win new
projects in an environment of heavy competition," said Jorge
Aguirre, Vice President of ICA's Civil Construction segment.
"These contracts show the confidence our clients have in ICA's
ability to successfully complete key security and communications
projects for our country."
Founded in 1947, ICA has completed construction and engineering
projects in 21 countries. ICA's principal business units include
Civil Construction, which builds highways, bridges, dams,
tunnels, ports, pipelines, and other large-scale civil
engineering works, as well as office buildings, commercial
centers, urban and tourism developments, and housing; Industrial
Construction, which constructs refineries, electrical generation,
petrochemical and industrial plants for the public and private
sectors. Through its subsidiaries, ICA also manages airports and
operates specialized port terminals, tunnels, highways, and
municipal services under government concession contracts and/or
partial sale of long term contract rights.
This release may contain projections or other forward-looking
statements related to ICA that involve risks and uncertainties.
Readers are cautioned that these statements are only predictions
and may differ materially from actual future results or events.
Factors that could cause actual results to differ materially and
adversely include, but are not limited to: changes in general
economic, business or political or other conditions in Mexico or
changes in general economic or business conditions in Latin
America, changes in capital markets in general that may affect
policies or attitudes towards lending to Mexico or Mexican
companies, increased costs, unanticipated increases in financing
and other costs or the inability to obtain additional debt or
equity financing on attractive terms. Readers are referred to the
documents filed by ICA with the United States Securities and
Exchange Commission, specifically the most recent filing on Form
20-F which identifies important risk factors that could cause
actual results to differ from those contained in the forward-
looking statements. All forward-looking statements are based on
information available to ICA on the date hereof, and ICA assumes
no obligation to update such statements.
=======
P E R U
=======
MINERA VOLCAN: Pan American Acquires Peruvian Silver Assets
-----------------------------------------------------------
Pan American Silver Corp. (NASDAQ: PAAS; TSE: PAA) announced that
it has entered into two agreements with Volcan Compania Minera, a
major Peruvian mining company regarding two large silver-bearing
stockpiles located adjacent to Volcan's Cerro de Pasco operation
in central Peru, about 36 km from Pan American's Huaron mine.
The first agreement grants Pan American the right to acquire a 60
percent interest in the stockpiles by spending $2 million on the
project over a three- year period. In the twelve months following
this period, Pan American can increase its interest to 100
percent by paying Volcan $3 million and granting Volcan a seven
percent royalty on commercial production from the stockpiles. The
first phase of Pan American's work will be a detailed definition
drilling program to confirm historic resources estimated by
Volcan to be 26 million tonnes of stockpiles grading 227 g/t
silver (a contained silver resource of more than 180 million
ounces). The second phase will comprise detailed metallurgical
studies and economic evaluation designed to determine the
economics of commercial extraction. Historic studies indicate
that a silver price in excess of $6.50 would be required to
profitably recover the contained silver. Pan American's work will
investigate this in detail and seek to improve project economics.
The second agreement grants Pan American the right to mine and
sell 600,000 tonnes of the richest silver stockpiles to a nearby
smelter, which will use them as flux in its smelting operation. A
ten-year contract has been negotiated with the smelter and
stockpile sales are expected to average approximately 46,000
tonnes per year resulting in annual silver production of
approximately 500,000 ounces at an estimated total production
cost of less than $2 per ounce. The purchase price will be $4.0
million, payable in Pan American common shares valued at current
prices, plus a one-third production bonus to Volcan after Pan
American has recovered its acquisition costs, operating costs,
deemed taxes and interest on the acquisition cost.
Ross Beaty, Pan American's Chairman and CEO, said, "This set of
agreements will give Pan American an excellent return from
increased very low cost silver production over an estimated ten-
year period. In addition, Pan American will hold a low-cost right
to acquire what is probably the largest aboveground stockpile of
silver-bearing mineralized material in the world, and time to
conduct a thorough evaluation of the potential for commercial
production from this material. These deals satisfy both of our
corporate objectives: they will increase our immediate low-cost
silver production, and they will give our shareholders great
leverage to the silver price by materially increasing our silver
resource holdings that can be produced from if silver prices
increase in the future."
CONTACT: Pan American Silver Corp.
Ross J. Beaty, Chairman and C.E.O.
Anthony Hawkshaw, C.F.O.
Tel: 604-684-1175
VOLCAN COMPANIA MINERA S.A.
Av Gregorio Escobedo
710 Jesus Mara
Lima, Peru
Tel: +51 1 219-4000
Fax: +51 1 261-9716
Contact:
Mr. FMG Sayan (Francisco), Chairperson
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: FAA Status Upgrade Necessary Part of Turnaround
-----------------------------------------------------
The Trinidad and Tobago Civil Aviation Authority (TTCAA) have
been trying to regain the country's Category One status after
being downgraded by the US federal Aviation Administration last
year. TTCAA chairman Captain Ian Brunton said BWIA would have had
fewer losses after the September 11 attacks if the country was
not downgraded. The downgrade prevents the airline from getting
more routes into the US, a major tourist market.
According to Mr. Brunton, the failure of the government to
implement civil aviation regulations had hindered the possibility
of an upgrade, adding that it is up to the parliament to pass the
regulations.
The TTCAA cannot invite the FAA and the International Civil
Aviation Organization to conduct another inspection unless the
regulations are empowered by the government.
Mr. Brunton is confident that the nation will regain Category One
status, once the government attends to the regulations. During
the downgrade, the FAA concluded the nation was not strictly
adhering to certain international aviation regulations. Airlines
that are headquartered in a nation that has been downgraded are
also penalized, reported The Trinidad Guardian.
Mr. Brunton clarified that the new Piarco International Airport
was not downgraded, as some parties claim. It was the nation that
was downgraded for failing to meet certain criteria with regards
to three ICAO annexes governing civil aviation:
ICAO Annex 1: Personnel Licensing
ICAO Annex 6: Operation of Aircraft
ICAO Annex 8: Airworthiness of Aircraft
He added the nation was governing its civil aviation in a
"substantive" but "unorthodox way. That is, until the enactment
of the Civil Aviation Act No 11 of 2001, which established the
TTCAA."
He also explained that BWIA is prevented from changing aircrafts
on its US routes, unless it obtains permission from the FAA.
CONTACT: British West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, CFO (Trinidad)
BWIA: Unions Fear Loan Conditions Include Job Cuts
--------------------------------------------------
Trinidad and Tobago's government requires BWIA to increase its
cost-reduction target to US$1.4 million from US$1 million, as one
of the conditions of the US$13 bail out loan the airline needed.
The official mandate increases anxiety on the part of BWIA
employees, fearing the additional savings would be taken from job
cuts.
Christopher Abraham, president of ACAWU, which represents the
airline's general workers failed to deliver the promised
proposals to BWIA's management. Instead, he asked for details of
the cost-cutting measures and a guarantee that none of the
employees lose their jobs.
Jagdeo Jagoo, head of CATTU, another BWIA union, also expressed
fears of a job cut, despite being grateful of the government's
assisstance. Earlier, CATTU had agrees to a number of concessions
to help the airline meet the target savings.
In answer to the union's fears, BWIA corporate communication
director Clint Williams would only say that BWIA would be looking
at all measures available. But he added that job cutting had
always been treated as the last resort by the airline.
Williams said that despite looking at job cuts as a last option,
BWIA would do everything within its power to secure the loan from
the government.
=============
U R U G U A Y
=============
UTE: Hikes Prices Once Again To Offset Increasing Costs
-------------------------------------------------------
For the third time this year, Uruguayan federal power company UTE
hiked regulated tariffs by an average of 8%, effective
immediately, reports Business News Americas. The idea, UTE
commercial manager Luis Margenat indicated, is to offset
increasing costs due to inflation and devaluation of the
Uruguayan currency.
But even with the price hike, Mr. Margenat admitted that the
Company hardly recovered all the extra cost burdens. Between 50%
and 55% of the Company's costs are in US dollars, and the
Uruguayan peso's value has fallen by half in recent months, he
said.
UTE, after the annual, planned hike in February, the
extraordinary 8% hike in August and the latest 8% hike, is
unlikely to raise prices again until January or February. But
that would depend on how the economy evolves, Margenat said.
***********
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 Oona G. Oyangoren, 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,
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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.
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