/raid1/www/Hosts/bankrupt/TCRLA_Public/030110.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
Friday, January 10, 2003, Vol. 4, Issue 7
Headlines
A R G E N T I N A
AT&T LATIN AMERICA: More Acquisition Offers Circulating
BANCO RIO: Sinks Deeper Into Red
DIRECTV LATAM: Takes Action to Avoid Bankruptcy
EDEMSA: To Default On Principal, Interest Payments Due Friday
PEREZ COMPANC: Proposes $101M Debt Swap Offer
* IMF Sends Team To Argentina For Negotiations
B E R M U D A
OPL: Posts $211M 3Q02 Loss
TYCO INTERNATIONAL: Buyers Opt for $750M Debenture Add On
SAGE: Delays Off Bermuda Suspension
B R A Z I L
ELETROPAULO METROPOLITANA: Judge Overturns Rate Injunction
NET SERVICOS: Creditors Expect Debt Plan By Month's End
NET SERVICOS: ADRs To Continue Trading At Nasdaq
USIMINAS: Awards Alstom Contract To Revamp Blast Furnace No. 2
E C U A D O R
FILANBANCO: Creditors Hiring Firm To Collect Bad Loans
J A M A I C A
AIR JAMAICA: Logs More Passengers in Dec 2002
T R I N I D A D & T O B A G O
CARONI LTD: Board Worried Over Union Threats To Disrupt Crop
CARONI LTD: Government May Provide Over $1B Subsidies This Year
U R U G U A Y
CAYCU: Central Bank To Auction Assets
GALICIA URUGUAY: Initiates Reimbursement Plan
V E N E Z U E L A
VENEZUELAN BANKS: Issues VEB91 Billion In New Treasury Bills
- - - - - - - - - -
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A R G E N T I N A
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AT&T LATIN AMERICA: More Acquisition Offers Circulating
-------------------------------------------------------
Southern Cross, which recently signed a letter of intent to
acquire AT&T Corp.'s 69% stake in AT&T Latin America for a mere
US$1,000, along with the assumption of just US$440 million of
ATTL's US$1.1-billion debt, is not the only one angling for the
Latin American unit, Business News Americas indicates.
In a statement Tuesday, ATTL president and CEO Patricio Northland
revealed that several qualified investors have come out and
expressed their intention in acquiring ATTL. In fact, two
companies have already delivered preliminary offers that address
both ATTL's equity and debt, the executive said without
disclosing the names of the companies.
Northland said ATTL expects to select an investment bank to
coordinate talks with those companies over the next several days,
and to manage ATTL's restructuring process.
"We are pleased that Southern Cross has expressed an interest in
acquiring a significant equity position in ATTL," he said,
adding, "We look forward to working with Southern Cross and other
potential investors."
Losses at the Latin American unit prompted AT&T to announced this
week that it will slash 3,500 jobs in its business services
division and take US$1.5 billion in fourth-quarter charges.
AT&T has said it would take a US$1.1 billion writedown on its
Latin America investments, amounting to about $1.40 per share.
AT&T said last year it would cut off its financial support of
AT&T Latin America, which provides voice and data services,
primarily to businesses.
Despite investing US$1.1 billion in the Latin unit, AT&T stands
to reap a tax benefit on its losses. The 86 million shares of
AT&T Latin America, which closed Monday at 24 cents each, would
otherwise be valued at more than US$20.6 million.
CONTACT: AT&T Latin America Corporation
Media: Lydia Rodriguez, +1-202-689-6321
Lydia.Rodriguez@attla.com
Investors: Catherine Castro, +1-202-689-6336,
catherine.castro@attla.com
URL: http://www.attla.com
BANCO RIO: Sinks Deeper Into Red
--------------------------------
Banco Rio de la Plata SA continues to reel from the effects of
Argentina's default on its public debt, a 70% devaluation of the
peso and a sharp contraction of the Latin American nation's
economy. According to reports by Dow Jones Newswires, the bank, a
wholly owned subsidiary of Spanish banking group Banco Santander
Central Hispano S.A., posted Wednesday a net loss of ARS483.5
million ($1=ARS3.295) in the third quarter of 2002 ending Sept.
30. In the second quarter, the bank posted a net loss of ARS323.9
million. In the third quarter of 2001, the bank posted a net,
profit of ARS52.71 million.
The bank said it set aside ARS197.6 million on account of bad
loans in the third quarter, as the percentage of loans in arrears
rose from 7% to 15.8%. In addition, the bank paid out ARS634
million because of interest rates in the third quarter, up from
ARS287.9 million a year earlier.
Interest rates have shot up over the past year, as banks sought
to attract back deposits that had been seeping out the financial
system since early 2001.
In November, Banco Rio announced it was seeking to restructure
$250 million in debt falling due in 2003. The bank said it hoped
to extend maturities through 2009-2012.
At the end of third quarter 2002, Banco Rio said its net worth
was ARS1.50 billion, down from ARS2.73 billion a year earlier.
The bank also reported it had deposits worth ARS5.53 billion,
down from ARS15.2 billion a year earlier.
CONTACTS: BANCO RIO
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, Exec. Vice Chairman and CEO
Pablo Caride, Corporate Finance
DIRECTV LATAM: Takes Action to Avoid Bankruptcy
-----------------------------------------------
DIRECTV Latin America, LLC, the leading direct-to-home satellite
television service in Latin America and the Caribbean, announced
on Wednesday that it has initiated discussions with certain
programmers, suppliers, lenders and business associates to
address the Company's current financial and operational
challenges. The Company also announced that it has retained
AlixPartners, LLC, a leading turnaround and management services
firm, to assist with its restructuring initiative. Michael A.
Feder, a principal at AlixPartners, has been named Chief
Restructuring Officer of DIRECTV Latin America, reporting to
Kevin N. McGrath, Chairman of DIRECTV Latin America.
DIRECTV Latin America is a Delaware limited liability company
owned by DIRECTV Latin America Holdings, a subsidiary of Hughes
Electronics Corporation; Darlene Investments, LLC, an affiliate
of the Cisneros Group of Companies; and Grupo Clarin.
"We are moving aggressively to implement a plan for DIRECTV Latin
America that is consistent with our overall objectives of
enhanced competitiveness and profitable growth," McGrath said.
"We have started discussions with certain programmers, suppliers,
lenders and business associates in an effort to resolve issues
that have affected the financial performance of DIRECTV Latin
America in recent years, including excessive fixed costs and a
substantial debt burden during a time of economic deterioration
throughout Latin America," McGrath said. "There are some
significant contracts that need to be realigned with the
realities of the marketplace. We will also continue to encourage
programmers and suppliers to share directly and appropriately the
risks of exchange rate fluctuation and currency devaluation."
McGrath continued, "Our Company's current financial condition is
unacceptable and an effective solution must be executed urgently.
Accordingly, if our discussions do not result in a reasonable
agreement in the near future, we would consider other options
available to the Company, including restructuring the Company
under Chapter 11 of the U.S. bankruptcy law."
The Company does not expect any of the actions it is currently
taking or considering to negatively impact its business
operations in Latin America and the Caribbean. There are no plans
for any of the local operating companies to seek court
protection. Even if the U.S. parent (DIRECTV Latin America, LLC)
does seek court protection, the Company expects that the local
operating companies will continue normal operations.
Over the past 18 months, in response to difficult conditions in
the markets where it operates, DIRECTV Latin America has
concentrated on improving business efficiencies and reducing its
operating costs and cash requirements. Among other actions, the
Company has significantly reduced general and administrative
expenses and headcount, and eliminated all non-essential business
activities and capital expenditures.
"We remain firmly committed to continuing normal business
operations in all of our markets across Latin America and
providing our customers with the best service and widest array of
entertainment options," McGrath said.
About AlixPartners, LLC
AlixPartners, LLC, a Delaware limited liability company
(www.alixpartners.com), is an internationally recognized leader
in providing hands-on, results-oriented consulting to solve
operational, financial, transactional and legal challenges for
Fortune 1000 companies. It provides services in performance
improvement, turnaround and restructuring, financial advisory and
information technology. It has more than 170 professionals in its
Detroit, New York, Chicago, Dallas, London and Munich offices.
About DIRECTV Latin America
DIRECTV Latin America is the leading direct-to-home satellite
television service in Latin America and the Caribbean. Currently
the service reaches more than 1.6 million customers in the
region, in a total of 28 markets. DIRECTV is currently available
in: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto
Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean
island nations.
DIRECTV Latin America, LLC is a multinational company owned by
DIRECTV Latin America Holdings, a subsidiary of Hughes
Electronics Corporation; Darlene Investments, LLC, an affiliate
of the Cisneros Group of Companies, and Grupo Clarin. DIRECTV
Latin America has offices in Buenos Aires, Argentina; Sao Paulo,
Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto
Rico; Fort Lauderdale, USA and Caracas, Venezuela. For more
information on DIRECTV Latin America please visit
www.directvla.com.
HUGHES is a leading provider of digital television entertainment,
broadband services, satellite-based private business networks,
and global video and data broadcasting. The earnings of HUGHES, a
unit of General Motors Corporation, are used to calculate the
earnings attributable to the General Motors Class H common stock
(NYSE: GMH).
EDEMSA: To Default On Principal, Interest Payments Due Friday
-------------------------------------------------------------
Argentina's Mendoza province distributor Edemsa shares the same
fate with other local companies, which have defaulted on their
dollar-denominated debts due to the country's economic recession.
In a statement to the Buenos Aires bourse, Edemsa will not pay
US$49 million of principal on the third series of debentures due
Friday, nor will it pay US$1.8 million in related interest, as it
is still suffering from the effects of the peso devaluation, as
well as the continuing uncertainty about public utility rates.
Business News Americas recalls that Edemsa also did not pay
principal and interest totaling US$11 million due in July of last
year.
Edemsa's total outstanding debt is US$120 million, half of which
is denominated in US dollars.
According to company accountant Horacio Marchessi, Edemsa's
financial woes will continue in the short term because its peso-
denominated income is insufficient to cover its dollar expenses.
The government has not helped by stalling over proposed rates
increases, Marchessi added.
France's EDF controls Edemsa through direct and indirect stakes,
and the Mendoza province government owns a small stake.
PEREZ COMPANC: Proposes $101M Debt Swap Offer
---------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE: PC) announced
Wednesday the launch through its subsidiary Pecom EnergĦa S.A.
(Buenos Aires: PECO) of an offer to exchange (the "Exchange
Offer") Floating Rate Series N Notes due 2011 (the "Series N
Notes") for up to US$101,000,000 in principal amount to be issued
under the US$2,500,000,000 Medium-Term Note Program (the
"Program") of the Company for any and all Trust Notes due June 9,
2002 (the "Trust Notes") issued under the LS Series 1999-1
Financial Trust with HSBC Bank Argentina S.A. as Trustee (the
"Trust").
The aim of the Exchange Offer is to offer an alternative for the
Holders of Trust Notes under the LS Series 1999-1 Financial
Trust, with HSBC Bank Argentina S.A. as Trustee, which underlying
asset is a promissory note governed by Argentine law under which
the Company is obliged to pay and which the Company deems was
converted to Pesos by law 25,561, Decree 214/02 and complementary
regulations.
If holders validly tender their Trust Notes on or before 3:00
P.M., Buenos Aires time, on January 15, 2003 (the "Expiration
Date"), the Company offers to exchange US$1 principal amount of
the Series N Notes plus US$0.035 in cash for each US$1 principal
amount of Trust Notes.
The Series N Notes shall be repaid in two installments, the first
one of 9.90099% of the aggregate principal amount of the Series N
Notes, at the time of issuance, and the remaining balance thereof
to be paid in June, 2011. The Series N Notes shall pay 1.6156612%
interest over the aggregate principal amount on the issuance date
of the Series N Notes and shall pay an annual rate equal to LIBOR
+ 1% over the outstanding principal amount as from December 28,
2002.
The Exchange Offer does not constitute a resignation or waiver of
any of our rights in favor of the conversion into Pesos of the
promissory note which is the underlying asset of the LS Series
1999-1 Financial Trust with HSBC Bank Argentina S.A., as trustee,
nor an acknowledgement or acceptance of any claim against such
conversion.
The Company is making the Exchange Offer, and will issue the
Series N Notes, only outside the United States in offshore
transactions in reliance on Regulation S under the U.S.
Securities Act.
The Series N Notes will not, upon issuance, be registered under
the U.S. Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an exemption from
registration.
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/
* IMF Sends Team To Argentina For Negotiations
----------------------------------------------
A team from the International Monetary Fund was sent to Buenos
Aires on Wednesday for negotiations on an aid package for
Argentina, reports Bloomberg News. The aid is primarily aimed at
helping the country avoid defaulting on US$8 billion of debt
payments this year.
This new loan will be the first Argentina will receive after
defaulting on US$95 billion of debt in December 2001. After that,
the country lost its credit line to most of its creditors except
for the IMF.
The country spent the greater part of last year negotiating for a
new IMF loan without success. Earlier reports reveal that the
country could not implement some of the requirements asked by the
IMF.
Meanwhile, the country's chances of obtaining an aid package was
increased as yesterday, the country lifted restrictions on buying
and selling dollars. The move came after the central bank noted a
recent gain the value of the local currency. The peso had gained
14 percent since end-September, after declining by about US$70
percent last year.
According to the report, the government also will require
companies to sell U.S. dollars to the central bank on exports
valued at US$1 million or more, up from US$200,000.
=============
B E R M U D A
=============
OPL: Posts $211M 3Q02 Loss
--------------------------
Bermuda-based Overseas Partners Ltd., which went into run-off in
February last year, reported a net loss of US$211 million during
third quarter of 2002, relates The Royal Gazette on Wednesday.
About US$95 million of the reported figure is comprehensive loss,
while US$171 million were from investment losses and US$55.3
million of underwriting losses.
The Company's 7% stake in troubled reinsurer Annuity and Life Re
has also contributed to the losses. Shares of Annuity and Life
dived last year after questions on its ability to provide capital
for it's underwriting went up.
CONTACT: Overseas PArtners Ltd
Bermuda
Tel: 441-295-0788
Fax: 441-292-9142
Email: opl@oplbda.co,
Contacts:
Mark R. Bridge, Pres & CEO - Overseas Partners Ltd.
Michael J. Cascio, Pres & CEO - OPUS Re
Mark Cloutier, Pres & CEO - Overseas Partners Re Ltd.
TYCO INTERNATIONAL: Buyers Opt for $750M Debenture Add On
---------------------------------------------------------
Tyco International Ltd. (NYSE - TYC, BSX - TYC, LSE - TYI)
announced Wednesday that the initial purchasers of its announced
private placement of $2.5 billion principal amount of 2.75%
Series A Convertible Senior Debentures due 2018 and $1.25 billion
principal amount of 3.125% Series B Convertible Senior Debentures
due 2023 through its wholly-owned subsidiary, Tyco International
Group S.A., have exercised their option to buy up to an
additional 20% of debentures in full, resulting in the sale of an
additional $500 million principal amount of 2.75% Series A
Convertible Senior Debentures due 2018 and $250 million principal
amount of 3.125% Series B Convertible Senior Debentures due 2023.
With the exercise of the option, the total size of the offering
rises to $4.5 billion. The placement of all of the debentures is
expected to close on January 13, 2003. Tyco intends to use the
net proceeds to repay debt and for general corporate purposes.
The debentures will be offered to qualified institutional buyers
in reliance on Rule 144A under the Securities Act of 1933. The
debentures will not be registered under the Securities Act.
Unless so registered, the debentures may not be offered or sold
in the United States except pursuant to an exemption from, or in
a transaction not subject to, the registration requirements of
the Securities Act and applicable state securities laws. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
the debentures in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
About Tyco International Ltd.
Tyco International Ltd. is a diversified manufacturing and
service company. Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.
Contact: (Media)
Gary Holmes
Tel: 212-424-1314
(Investors)
Kathy Manning
Tel: 603-778-9700
SAGE: Delays Off Bermuda Suspension
-----------------------------------
Contrary to a warning issued earlier, South African financial
services group Sage (SGG) said it would continue its Bermuda-
based activities for now. The Royal Gazette recounts that Sage
had warned it would suspend sales and marketing operations in the
United States and Bermuda on January 1 if additional sources of
capital necessary to support sales momentum and infrastructure
were not secured by the said date.
Sage implemented the warning to its international marketing and
underwriting activities in the United States from January 1. But
the suspension of the Bermuda operations has been put off for a
while.
Sage said that interest had been expressed by financial groups
regarding the acquisition or investment into one or both the
operations.
CONTACT: Sage Group Limited
Robin Marsden
Tel: +1-203-602-6510
Email: rmarsden@sageusa.com
===========
B R A Z I L
===========
ELETROPAULO METROPOLITANA: Judge Overturns Rate Injunction
----------------------------------------------------------
Eletropaulo Metropolitana SA, Brazil's biggest distributor, will
now be able to hike electricity rates to compensate for losses as
a result of nine-months of power rationing that ended in March
last year, Bloomberg reports, citing O Estado de S. Paulo
newspaper.
This, after a Regional Tribunal Judge Paulo Batista Pereira
overturned an injunction that prevented the country's biggest
distributor from implementing rates hike.
Eletropaulo, which is 74% owned by U.S.-based AES Corp., plans to
raise rates by 2.9% to residential consumers and by 7.9% to
industrial consumers.
At the end of 3Q02, Eletropaulo had total debts of BRL6.2
billion, of which 52% was in US dollars and not hedged against
exchange rate variations. Of the total debts, 69% was due within
one year, while the remaining 31% was due in the long term.
CONTACT: ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes Gonzalves Jr., VP Finance/Investor Relations
NET SERVICOS: Creditors Expect Debt Plan By Month's End
-------------------------------------------------------
Cast strapped Brazilian pay TV and broadband services provider
Net Servicos de Comunicacao will submit to creditors a debt
renegotiation plan on January 31, Business News Americas reports,
citing local news agency Agencia Estado.
The submission follows a decision by the Company to default on a
BRL23.5-million interest payment that came due December 1. The
notes were issued in 1996 by cable TV operator Multicanal, before
it was taken over by Globo Cabo, now Net Servicos de Comunicacao.
A company spokesperson recalls that the Company also failed to
honor a US$6-million December 18 coupon payment for another set
of 1996 notes. The spokesperson confirmed that the Company's next
debt parcel is US$900,000 payment for January 31.
Net Servicos has had its ratings downgraded by both Standard &
Poor's and Moody's Investors Service due to mounting liquidity
crisis. For the third quarter of 2002, the Company posted a net
loss of BRL422 million, up 56% from the third quarter in the
previous year. The Company finished the period with a total
outstanding debt of US$354 million.
To see financial statements:
http://bankrupt.com/misc/Net_Servicos.pdf
CONTACTS: Marcio Minoru Miyakava
(5511) 5186-2811
minoru@netservicos.com.br
Lu Yuan Fang
(5511) 5186-2637
lfang@netservicos.com.br
NET SERVICOS: ADRs To Continue Trading At Nasdaq
------------------------------------------------
Net Servicos de Comunicacao S.A. ("Company"), a publicly held
company, with its headquarters located in the City and State of
Sao Paulo, at Rua Verbo Divino n. 1,356, 1st floor, Chacara Santo
Antonio, enrolled under the CNPJ/MF (Tax ID)# 00.108.786/0001-65,
discloses herein, the following relevant notice: As released in
the Relevant Notice dated November 12th, 2002, the Company has
received a note from The Nasdaq Stock Market, Inc., "Nasdaq",
stating that the Company no longer complies with Listing Rule #
4450(a) (5) of The Nasdaq National Market.
According to this note, the bid price of the Company's ADRs
should remain above US$ 1.00 for at least 10 consecutive trading
days. On December 27th, 2002, Nasdaq's requirement was fulfilled
and, as a consequence, the Company received another note from
Nasdaq, dated January 2nd, 2003, informing that the Company was
in compliance and that its ADRs can continue being traded at The
Nasdaq National Market. If the Company fails to comply with that
Rule in the future, Nasdaq will notify the Company again and, if
the new requirement is not fulfilled by then, the securities will
be transferred to the Nasdaq SmallCap Market.
Sao Paulo, January 8th, 2003 Leonardo P. Gomes Pereira Investor
Relations and Chief Financial Officer Net Servicos de Comunicacao
S.A.
USIMINAS: Awards Alstom Contract To Revamp Blast Furnace No. 2
--------------------------------------------------------------
Brazilian flat steelmaker Usiminas awarded French industrial
company Alstom a contract to renew its blast furnace No. 2.
According to Business News Americas, the project, which will
require Usiminas to spend some BRL22 million (US$6.67 million),
is expected to be completed by the end of the year. The operation
will involve replacing parts that have reached the end of their
useful life.
Usiminas has been rumored to have plans of divesting its auto
parts and components unit in order to raise cash and reduce
consolidated debt, which at the end of September amounted to
BRL10.6 billion.
The Company has been suffering from the effects of the
depreciation of the real currency on its dollar-denominated debt.
For the third quarter of this year, the Company widened its
consolidated net loss to BRL684 million (currently US$185mn) from
the BRL23 million loss posted in the same-period 2001.
The Company's accounting procedures also contributed to its loss
since BRL969 million is a result of future export guarantee
contracts from the steelmaker's subsidiary, Sao Paulo-based flat
steelmaker Cosipa.
CONTACT: USIMINAS
Rua Prof. Jos, Vieira de MendonOa 3011
Engenheiro Nogueira
31310-260 Belo Horizonte
Minas Gerais, Brazil
Phone: +55-31-3499-8000
Fax: +55-31-3499-8899
Web http://www.usiminas.com.br
=============
E C U A D O R
=============
FILANBANCO: Creditors Hiring Firm To Collect Bad Loans
------------------------------------------------------
The creditors association of Filanbanco was scheduled to award on
Wednesday a contract to recover the defunct Ecuadorian bank's bad
loans, reports Business News Americas. Among those qualifying for
the contract are Prowill, Mexico's Thesis, Hunton & Williams and
Gomez Giraldo & Asociados.
Thesis has valued Filanbanco's bad loan portfolio at some US$950
million. Prowill, on the other hand, claims it would be able to
recover up to 85% of that amount if given the contract.
The process to pick a firm that will be awarded with the contract
has taken so long due to legal problems and requests for more
information by interested companies.
Creditors hope the funds recovered by the winning company will be
able to pay the US$350 million owed to them by Filanbanco.
Formerly the largest bank in the system, Filanbanco was
intervened in the 1998-1999 crisis and remained open until July
2001 under the administration of the deposit guarantee agency
(AGD). Upon resolution of a dispute with depositors, the Central
Bank ordered the bank to be liquidated on July 31, 2002.
CONTACT: FILANBANCO
Av. 9 of 203 October and Pichincha
Guayaquil, Ecuador
Phone: 322780 ext. 2885
Fax: 329451
E-mail: mailto:administrador@filanbanco.com
Home Page: http://www.filanbanco.com/
Contacts:
International Business Division
Germania Narv ez Brandon
E-mail: mailto:mgnarvaez@filanbanco.com
Legal Divison (Guayaquil)
Marks Arteaga Valenzuela, Departmental Manager
E-mail: mailto:mmarteaga@filanbanco.com
=============
J A M A I C A
=============
AIR JAMAICA: Logs More Passengers in Dec 2002
---------------------------------------------
Jamaica flag carrier Air Jamaica reports a 6% increase in its
passenger load in all its routes last month, according to report
released by The Jamaican Observer. Passengers from the UK volume
alone showed a 35% increase.
Last month, 174,720 passengers were served, compared to 164,312
in Dec 2001. Approximately 17,589 passengers were on the London
route last December, a significant increase from the recorded
volume of 13,009 a year before.
Meanwhile, the airline also claimed to have improved their
handling of the transportation and excess baggage delivery. About
10,000 pieces of excess baggage, weighing more than half a
million pounds was delivered, according to a press statement
released on Tuesday.
"An improved baggage center", which the airline said would "allow
passengers to pick up their bags in record time and in air-
conditioned comfort", had been upgraded. The state-of-art baggage
tracking system had cost the company US$15 million for the
upgrade.
The airline's chairman Gordon Butch Stewart, said that Air
Jamaica had made "tremendous effort" in ensuring flight safety
and comfort for the passengers during the Christmas season.
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
=================================
T R I N I D A D & T O B A G O
=================================
CARONI LTD: Board Worried Over Union Threats To Disrupt Crop
------------------------------------------------------------
The Board of state sugar companies is concerned about the "pace
and timing of the transformation" of Caroni as the All Trinidad
Sugar and General Workers Trade Union threatens to disrupt sugar
production this year, said Caroni chairman Dr Kusha Haracksingh.
A report by the Trinidad Guardian reveals that the union has been
asking for the resolution of issues concerning the NIS and
pension benefits. But Agriculture Minister John said the Cabinet
is not likely to approve an increase in the US$637 million the
government had allotted for the VESP, the workers' pension plan.
Rahael explained that some areas of the restructuring plan are
not negotiable, disregarding the threats issued by union
president general Rudy Indarsingh. Earlier reports indicated that
Mr. Indarsingh complained about the unions on matters concerning
plans made for the Company.
Prime Minister Patrick Manning countered Indarsingh's statement
saying, the unions involved will be consulted once the voluntary
separation plan is finalized and approved by the Cabinet.
CONTACT: All Trinidad Sugar and General Workers' Trade Union
Rienzi Complex
Exchange Village
Southern Main Road, Couva.
President: Mr. Boysie Moore-Jones
General Secretary: Mr. Rudranath Indarsingh
Tel. 868-636-2354
Fax. 868-636-3372
E-mail: atsgwtu@opus.co.tt
CARONI LTD: Government May Provide Over $1B Subsidies This Year
---------------------------------------------------------------
Trinidad and Tobago state sugar company may get more than US$1
billion this year from the government. A report by the Trinidad
Guardian reveals that the government would offer an individual
enhanced VESP totaling US$637 million to 9,000 Caroni workers.
The government would make the offer on February 15, the report
adds.
Aside from that the country's Agriculture Minister John Rahael
said Caroni may receive US$400 million in subsidies from the
government this year. That, combined with the VESP, adds up to
more than US$1 billion dollars.
However, this would not be the case next year as Rahael predicts
the subsidy next year to be US$200 million at most, with less and
less assistance for the years thereafter.
"In 2004, I would assure you that the subvention that we have
been giving Caroni would be drastically cut. I am hoping that
within two to three years, if there is any subvention to Caroni
it would tens of millions and not hundreds of millions," he said.
Rahael statements were made after meeting with the Caroni Board
and the Divestment Secretariat on Tuesday.
CONTACT: Caroni Limited
Old Southern Main Road, Caroni,
Trinidad & Tobago
Phone: (868) 663-1781 or 662-0879
Fax: (868) 663-1404
=============
U R U G U A Y
=============
CAYCU: Central Bank To Auction Assets
-------------------------------------
The Uruguayan central bank on Tuesday decided to liquidate
suspended local bank Cooperativa de Ahorro y Credito de Uruguay
(Caycu) and then sell the assets belonging to the local savings
and loan institution at the end of the month. According to the
central bank, the operation will be done through a public
auction. So far, the most potential bidder on the scene is local
bank Cofac.
Cofac CEO Gustavo Marton said his bank would make a decision on
how to return the frozen savings to former Caycu clients after
reviewing the intervened company's financial information.
However, for the upcoming auction Mr. Cofac is studying a plan to
recover Caycu's loans during a five-year period.
Caycu is one of the Uruguayan banks, which collapsed last year
due to the country's financial crisis, triggered in part by the
economic meltdown in neighboring Argentina.
CONTACT: Osvaldo Pineiro, President
Americo Cortada, Director
Roberto Barreto, Director
Juan Grana, Director
Miguel Arrillaga, Director
Tel: 506-7884
Fax: 507 7136
Email: Administrador@caycu.com.u
Web Site: http://www.caycu.com.uy
GALICIA URUGUAY: Initiates Reimbursement Plan
----------------------------------------------------
Banco Galicia Uruguay was due to start implementing on Thursday a
plan, approved by an intervening judge last month, to reimburse
close to US$947 million in deposits, reports Dow Jones.
In a communique, the bank said it would hand over the first
tranche of its clients' savings Thursday from branches in the
capital Montevideo, Punta del Este and Colonia. According to the
plan, the bank will return the first 3% of dollar deposits this
month. By the end of 2003, 15% will have been returned. In 2004,
a further 15% will be handed back. In the following seven years,
10% will be returned annually.
The bank said 82%, or more than 7,000, of its clients accepted
the proposal.
Galicia Uruguay was the country's second-largest private
financial institution in terms of deposits before it was
intervened and suspended by the central bank in mid-February
after losing US$500 million in deposits between December last
year and January 2002. It is not yet known when the bank will be
allowed to reopen. Galicia Uruguay is controlled by Argentina's
largest commercial private bank, Banco Galicia.
CONTACT: GRUPO FINANCIERO GALICIA S.A.
Teniente General Juan D. Peron 456, Piso 3
1038 Buenos Aires, Argentina
Phone: (54 11) 4343 7528 / 9475
Home Page: http://www.gfgsa.com
Contacts:
Eduardo J. Escasany, Chairman and CEO
Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires
BANCO GALICIA URUGUAY S.A.
World Trade Center
Luis A. Herrera 1248 Piso 22 Montevideo
Uruguay
Tel.:(+598-2) 628-1230
www.bancogalicia.com.uy
=================
V E N E Z U E L A
=================
VENEZUELAN BANKS: Issues VEB91 Billion In New Treasury Bills
------------------------------------------------------------
The Venezuelan government threatened private banks that it would
not pay maturing debt unless the banks roll over VEB83 billion in
treasury bills for 91 days, Dow Jones reports, citing an
executive at a local bank. The executive disclosed that the
government issued new treasury bills with a face value of VEB91
billion - a yield of 42% a year - to replace debt maturing
Wednesday. Venezuelan Treasury bills are usually issued at a
discount to face value.
The move underscores the trouble that the government is
experiencing in meeting its current obligations, despite having
adequate reserves to avoid a debt default. But according to an
analyst, the rollover doesn't suggest Venezuela could default on
its debt anytime soon.
"I can say with 98% confidence that I don't expect a credit event
in Venezuela in the first half," said Jose Cerritelli, managing
director at Bear Stearns and Co.'s emerging markets research
group.
That's because the government has already begun cutting expenses,
and "has twice the cash reserves it needs to pay amortizations,
although it may rollover local debt," he said.
Venezuela currently has some US$6 billion in local debt and about
US$22 billion internationally.
Foreign reserves stood at $11.67 billion on Jan. 7, according to
the central bank, not including $2.86 billion in an oil windfall
fund.
Meanwhile, the banks confirmed Wednesday their plans to close on
Thursday and Friday to support a 38-day-old strike seeking
President Hugo Chavez's ouster. The announcement came despite
threats by the government that it would take unspecified
"measures" against banks that shut their doors.
***********
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 2003. All rights reserved. ISSN 1529-2746.
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