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/raid1/www/Hosts/bankrupt/TCRLA_Public/030319.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, March 19, 2003, Vol. 4, Issue 55 Headlines A R G E N T I N A CAPEX: Pesofication Prompts ARS15 Million Loss; Debt Deal Looms OIL PRODUCERS: Prices Stick at US$28.5 bbl Despite Volatility YPF SOCIEDAD ANONIMA: Pays Portion of $350M 7.25% Notes B A R B A D O S C&W: Future Unclear, Workers' Employment Not Guaranteed B E R M U D A ANNUITY & LIFE: Appoints New CEO to Head Up Turn Around GLOBAL CROSSING: Committee Reports On Olofson Allegations TYCO INTERNATIONAL: Declares Regular Quarterly Dividend TYCO INTERNATIONAL: Restructuring Includes Closuring 300 Units B R A Z I L CESP: Seeks To Restructure US$150M Worth of CP Due 2005 AES CORP: CBLC May Auction Off Eletropaulo Preferred Stock LIGHT SERVICOS: Sees Solution To Conflict VARIG: S&P Lowers RG Receivables' Notes To `CCC-' VESPER: Threatens To Withdraw GSM Technology on Anatel Ruling C H I L E ENERSIS/ENDESA CHILE: Kicks Off Road Show In Search of Financing ENERSIS: Expects Bids For 2 Chilean Assets March 24-27 C O L O M B I A GILAT: Announces Closing of Debt Restructuring Plan * IDB Approves $1.25 Billion Emergency Loan For Colombia G U Y A N A GNCB: Welcomes New Owner M E X I C O EMPRESAS ICA: El Cajon Contract Does Not Impact Ratings PEMEX: Calls for Seismic Bids, Extends EPC Bid Deadline U R U G U A Y BANCO SANTANDER: Fitch Downgrades, Affirms Ratings BANCO SUDAMERIS: LTFC Downgraded To `CCC-` by Fitch Ratings CACDU: Fitch Reduces, Affirms Ratings COFAC: Ratings Downgraded, Affirmed On Planned Restructuring FAE: Fitch Cuts Ratings on Govt.'s Planned Debt Restructuring FUCAC: Fitch Slashes Ratings On Uruguay's Planned Restructuring FUCEREP: Fitch Cuts Ratings Following Sovereign Downgrade HSBC BANK: Fitch Lowers LTFC To `CCC-` * IMF Provides Uruguay $303M Loan Installment V E N E Z U E L A PDVSA: Renewed Production Tops 3 Million Bbl Per Day PDVSA: Analysts Perceive Permanent Production Loss From Strike - - - - - - - - - - ================= A R G E N T I N A ================= CAPEX: Pesofication Prompts ARS15 Million Loss; Debt Deal Looms --------------------------------------------------------------- Argentine energy company Capex recorded a nine-month net loss of ARS15 million (US$4.9 million) for the period ending January 31, 2003, compared to ARS37 million in profits during the same period in the previous year, reports Business News Americas. In a statement to the Buenos Aires stock market, the Company said that the loss was caused by the devaluation of the peso on the financial obligation, and the pesofication of energy tariffs. Presently, the company is seeking to renegotiate its US$280 million debt due to Deutsche bank, Boston bank, and others. The report relates that the Company is optimistic on its chances to restructure existing debts, and build the necessary cash flow to continue meeting interest payments. Although the Company's total sales fell to ARS132 million pesos, the lower energy sales were partly compensated by higher oil & gas sales. The Company's statement also indicated that the 5.3 percent fall in administration costs also added in compensating for lower sales. Capex' total liabilities were also reduced by 28 percent to ARS984 million, during the said period, mainly attributed to the peso's signs of recovery. The Company, which produces natural gas and generates electricity in southwest Argentina, ended the period with ARS247 million in net equity, down 59 percent on the same yearly comparison. CONTACT: CAPEX, S.A. 5/F DepartmentC 948/950 Av Cordoba Buenos Aires Argentina Phone: +54 11 4322 4884 Home Page: http://www.capex.com.ar Contacts: Enrique Gotz, Chairman Dr. Alejandro Enrique Gotz, Vice Chairman OIL PRODUCERS: Prices Stick at US$28.5 bbl Despite Volatility ------------------------------------------------------------- Oil producers in Argentina will keep an agreement with the government to hold local crude prices at US$28.5 per barrel until March 31 despitethe West Texas Intermediate (WTI) price exceeding US$35/b, Business News Americas cited Repsol YPF spokesperson Lucas Mendez as saying. Earlier reports said that the government threatened to raise tax on export revenues to 100 percent if the companies sell their products at above US$30. Business News Americas said that the move is aimed at keeping local prices at their current levels after most oil companies in the country raised downstream gasoline and diesel prices last year to offset losses from the currency devaluation. Mr. Mendez added that a price increase would be very unpopular in the country, and may have a negative impact of demands in the country. "We don't know what will happen with the international oil price, we have to wait and see what Bush says [about war in Iraq," said Mr. Mendez. YPF SOCIEDAD ANONIMA: Pays Portion of $350M 7.25% Notes ------------------------------------------------------- As expected by Standard & Poor's Ratings Services, YPF Sociedad Anonima (YPF, local currency: BB+/Developing/--; foreign currency: B+/Developing/--) paid Monday the outstanding portion of the US$350 million 7.25% notes due March 17, 2003. The company has been reducing financial obligations since 2001, thus strengthening its financial profile. However, in the current Argentine scenario and despite the healthy credit quality of the company, the ratings are driven by Standard & Poor's perception of potential sovereign intervention risk, particularly considering the upcoming presidential election, that could hurt YPF's operations and ability to service its debt, and the potential incentives that Repsol-YPF S.A. may have to financially support its Argentine operation in such a case. ANALYSTS: Pablo Lutereau, Buenos Aires (54) 114-891-2125 Luciano Gremone, Buenos Aires (54) 11-4891-2143 Emmanuel Dubois-Pelerin, Paris (33) 1-4420-6673 =============== B A R B A D O S =============== C&W: Future Unclear, Workers' Employment Not Guaranteed ------------------------------------------------------- Cable and Wireless is not ruling out job losses even though it is expanding services to confront competition, the Barbados Advocate reports. In an interview with Business Monday over the weekend, C&W CEO Don Austin revealed that the Company is in the process of extending its TDMA network and that "more importantly our new mobile GSM switches are in place and tested." "We are also in the process of setting up for the launch of our GSM service in the not too distant future. That GSM system will offer new services including high speed connections to the internet through your mobile," Mr. Austin said. The CEO reiterated the other value added services Cable and Wireless will be bringing to the market, including the reduction of rates, going from mobile to mobile calling party pays, and per second billing. But with all these value added services, the CEO said the Company cannot guarantee there will be no more job losses. "So what we are saying specifically is that in this environment we cannot guarantee anything. I don't know of any company, even government, who can guarantee that someone will have a job for life," the CEO said. Earlier this month, some of Cable and Wireless' operations were halted when employees took industrial action in protest to the Company's restructuring program, and failure by Cable and Wireless and the Barbados Workers' Union (BWU) to further discuss that program. Mr. Austin told Business Monday that Cable and Wireless had signed an agreement with the BWU where it is recognized that further rationalization and restructuring was required at the Company. "Both C&W and the BWU recognized that with three new companies coming into the market and the changing environment, that C&W's cost structure would have to change. We have agreed on that process going forward." He went on, "you cannot say in a globalized environment where there are changes that you will not continue to change and to restructure." CONTACT: Cable & Wireless PLC Head Office 124 Theobalds Road London England WC1X 8RX Tel +44 (0)20 7315 4000 Fax +44 (0)20 7315 5000 Web http://www.cw.com Contacts: Sir Ralph Robins, Non Executive Chairman Sir Winfried W. Bischoff, Non Executive Deputy Chairman Graham M. Wallace, Chief Executive Robert E. Lerwill, Executive Director Finance ============= B E R M U D A ============= ANNUITY & LIFE: Appoints New CEO to Head Up Turn Around --------------------------------------------------------- Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) announced Monday that John F. Burke has been appointed Chief Executive Officer of the Company, effective as of February 28, 2003. Mr. Burke has served as the Company's Chief Financial Officer since September 2001 and will continue in that role in addition to assuming the responsibilities of Chief Executive Officer of the Company. Mr. Burke will also be joining the Company's Board of Directors. Frederick S. Hammer, the non-executive Chairman of the Company's Board of Directors, said "Jay has been an invaluable member of our management team since joining the Company. We are pleased to announce that he has agreed to serve as CEO and expect that his leadership will help the Company face the challenges ahead." The Company also announced that Brian M. O'Hara, who had been serving on the Company's Board of Directors as a designee of XL Capital Ltd ("XL"), had resigned from the Board and would be replaced by Henry C.V. Keeling at the request of XL. Mr. Keeling currently serves as the Chief Executive of XL's global Reinsurance Operations, "XL Re." The Company also announced that Walter A. Scott had retired from the Company's Board of Directors in December 2002. Annuity and Life Re (Holdings), Ltd. provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd. and Annuity and Life Reassurance America, Inc. CONTACT: John F. Burke, Annuity and Life Re (Holdings), Ltd. Cumberland House 1 Victoria Street Hamilton HM 11 P.O. Box HM 98 Hamilton HM AX Bermuda Tel: (441) 296-7667 Fax: (441) 296-7665 GLOBAL CROSSING: Committee Reports On Olofson Allegations ---------------------------------------------------------- The Special Committee on Accounting Matters of the Board of Directors of Global Crossing Ltd. delivered a report to the Board regarding the allegations of Roy Olofson. The Special Committee consists of three independent Directors of the Company, Jeremiah D. Lambert (Chairman), Alice T. Kane, and Myron E. Ullman, III, none of whom was involved in the matters under investigation or has any prior affiliation with, or interests in, Global Crossing. The Board established the Special Committee on February 11, 2002, and directed it to conduct an investigation into the timeliness and efficacy of the Company's response to allegations made by Roy Olofson, a former employee, with respect to accounting improprieties and misleading financial disclosures for which he believes the Company and its management to be responsible. The Special Committee conducted the Investigation through counsel. To fulfill its mandate, the Special Committee instructed counsel to: -- determine the facts and circumstances relevant to the Company's response to Olofson's Allegations; -- determine whether the Company or its outside law firm, Simpson Thacher & Bartlett, intentionally suppressed or concealed Olofson's Allegations or any matters implicated; -- determine the adequacy of the Company's response to Olofson's Allegations; -- determine whether Company management and Simpson Thacher fulfilled their fiduciary duties to the Company, its shareholders, and its creditors in responding to Olofson's Allegations; and -- determine whether and to what extent the Company suffered damages as a result of Simpson Thacher's representation. Because the Special Committee did not have authority to compel the production of documents, the information it reviewed was generally limited to that made available by the Company or otherwise voluntarily provided. The Special Committee had only limited access to records and personnel of Simpson Thacher and Arthur Andersen LLP, the Company's auditor. Nonetheless, the Investigation accomplished its purpose and was disinterested and thorough. The summary of the Special Committee's findings are: A. Relevant Facts and Circumstances: The Company first learned of Olofson's Allegations as set forth in his letter delivered to the Company on August 6, 2001. To address the allegations it contained, the Company commenced an investigation, conducted by Simpson Thacher but supervised by the Company's Acting General Counsel, Rhett Brandon, who remained a partner in Simpson Thacher while serving in that capacity. Olofson's Allegations eventually became a matter of public record as the subject of an article in the Los Angeles Times on January 30, 2002. The Company then issued public statements confirming that it had conducted an investigation and that Olofson's Allegations were without merit. Notwithstanding those statements, during the nearly six-month period between the Company's receipt of the Olofson Letter and its bankruptcy filing on January 28, 2002, neither the Company nor Simpson Thacher had in fact completed a substantive investigation of Olofson's Allegations, made timely disclosure of the results of that investigation to Arthur Andersen, or taken other appropriate remedial action. B. Absence of any Intentional Effort to Conceal or Suppress the Allegations: The Special Committee's Investigation has not yielded information suggesting intentional concealment or suppression of Olofson's Allegations. Through its Office of the General Counsel, the Company initially responded to Olofson's Allegations by: -- immediately informing senior management; -- briefing the Chairman of the Company's Audit Committee; -- consulting with Simpson Thacher; and -- engaging Simpson Thacher to conduct an investigation. Simpson Thacher's investigation nonetheless proved to be flawed and incomplete, as were its advice and assistance to its client. C. The Company's Response to Olofson's Allegations Was Inadequate: Olofson's Allegations implicated potentially serious issues of liability. The Company should have investigated whether Olofson's Allegations were material and relevant and, if so, taken timely remedial action. Simpson Thacher's investigation, directed by its partner Brandon as the Company's Acting General Counsel, did not meet that standard. Simpson Thacher failed to pursue the investigation it had undertaken diligently and to conclusion. Simpson Thacher completed one interview, that of Joseph Perrone, Sr., the Company's Chief Accounting Officer and Olofson's supervisor, to whom the Olofson Letter attributed principal responsibility for the Company's accounting and financial reporting. Thereafter, however, Simpson Thacher: -- failed to obtain critical supporting documents identified by Perrone; -- did not interview other Company officers; -- did not consult with or disclose the Olofson Letter to Arthur Andersen; and -- sought to minimize its responsibility by denying that it had been engaged to conduct an investigation. D. Simpson Thacher and the Acting General Counsel Violated Their Duties to the Company in Responding to Olofson's Allegations: Primary responsibility for mounting the Company's response to Olofson's Allegations rested with its Office of the General Counsel. Commencing on September 1, 2001, Brandon headed that office as Acting General Counsel. On September 20, 2001, Brandon hired Simpson Thacher to conduct an investigation on Olofson's Allegations under his direction and supervision. As this report concludes, neither Brandon nor Simpson Thacher fulfilled their fiduciary obligations to the Company, which suffered significant damages as a result. -- As the Company's principal legal officer, Brandon was obligated by his duties of care and loyalty to ensure that Olofson's Allegations were properly addressed. Similarly, as the Company's outside counsel, Simpson Thacher was required to exercise competence and due diligence in discharging its professional obligations. Although Brandon retained oversight and control over the investigation entrusted to Simpson Thacher, Brandon failed to supervise Simpson Thacher's work and even impeded it through neglect because: * he offered Simpson Thacher no assistance in obtaining necessary Company documents; * did not respond to Simpson Thacher's requests for instructions and guidance; and * failed to take appropriate remedial action when it became clear that Simpson Thacher's investigation had not gone forward. Simpson Thacher, for its part, treated its engagement as a "direct report" to Brandon and took no further action when the requested instructions were not forthcoming. By failing to treat its responsibilities proactively, Simpson Thacher allowed the investigation of a critically important matter to languish. -- Brandon's concurrent roles, as Simpson Thacher partner and the Company's Acting General Counsel: * compromised the Company's relationship with Simpson Thacher; * led to misunderstandings; and * ultimately gave rise to a conflict of interest on the failure of Simpson Thacher to adequately investigate Olofson's Allegations. When the conflict became apparent, Simpson Thacher should have recused itself from further representation of the Company on the Olofson matter or obtained the Company's knowing consent to its continuation as counsel. Simpson Thacher did neither. -- Neither Brandon nor Simpson Thacher took the immediately obvious and indispensable step of disclosing the Olofson Letter to Arthur Andersen, which received a copy only the day after the Company's bankruptcy filing. Once informed of the Olofson Letter, Arthur Andersen believed it had no choice but to meet its obligations under federal securities law by demanding that the Company disclose the results of its internal investigations of the Olofson matter, if any. Brandon rejected Arthur Andersen's request citing attorney-client privilege. In response, Arthur Andersen suspended its audit of the Company's 2001 financial statements, an audit that has not been completed to the present day. According to information provided to the Special Committee by the Arthur Andersen engagement partner responsible for the Company's account, if either Brandon or Simpson Thacher had completed the investigation and disclosed the results to Arthur Andersen, it could promptly have addressed outstanding issues and completed its audit on schedule. E. Damages: The Company's inability to obtain audited 2001 financial statements has subjected it to otherwise avoidable costs, losses, regulatory burdens, and reputational damage. The Special Committee concludes that, but for Simpson Thacher's and Brandon's failure to manage the Company's response to Olofson's Allegations in a timely, transparent, and appropriate manner, the Company could have obtained audited 2001 financial statements; addressed Olofson's Allegations with the support of its outside auditor; and as a result minimized or avoided the related adverse consequences it thereafter encountered. For these reasons, the Special Committee submits these recommendations to the Board of Directors for its review and consideration: -- Seek Appropriate Redress From Simpson Thacher: The Special Committee concludes that Simpson Thacher failed to satisfy its professional responsibilities to Global Crossing, which suffered significant injuries as a result. The Special Committee believes that causes of action may be asserted against Simpson Thacher for malpractice and breach of fiduciary duty. The Special Committee therefore recommends that the Company seek appropriate redress from Simpson Thacher. -- Compliance with the Sarbanes-Oxley Act of 2002: The Sarbanes-Oxley Act of 2002, which became law on July 30, 2002, changes the way public corporations are governed and their relationships with outside auditors. Its provisions require, inter alia, (i) enhanced corporate disclosures; (ii) increased officer and director accountability; (iii) strengthened corporate governance; and (iv) increased auditor independence and professional oversight. If the Company had been subject to and observed Sarbanes- Oxley's requirements in August 2001, it would have treated Olofson's Allegations differently. The Special Committee takes special note of these prescriptions contained in Sarbanes-Oxley: (i) Adopt and Maintain Audit Committee Compliance Procedures, Including Procedures for Receiving and Responding to Allegations Relating to Accounting, Internal Control, and Auditing Matters: Sarbanes- Oxley requires audit committees of public companies to establish procedures for receiving and responding to allegations relating to accounting, internal control, and auditing matters. The Audit Committee is preparing draft procedures for these matters but also recommends adoption of a broader program to address allegations of impropriety or illegal conduct. (ii) Maintain Effective Written Internal Financial Controls: Effective written internal financial controls are essential to effective corporate governance and compliance with applicable law. (iii) A Direct and Unwavering Reporting Relationship with the Company's Outside Auditor: Subject to the oversight and directions of the United States Trustee, the Audit Committee expects to appoint a successor auditor, with which the Audit Committee will maintain a direct reporting relationship. -- Adopt Proper Policies and Procedures for Addressing Concerns and Allegations of Impropriety or Illegal Conduct: The Global Crossing Ethics Policy prescribes general principles and provides a clear statement of the conduct the Company expects from its officers, directors and employees. Although otherwise appropriate, the Policy does not contain formal guidance for responding to allegations of impropriety or illegality. The Special Committee recommends that the Policy be supplemented with guidelines for addressing any future allegations of impropriety or illegal conduct. At a minimum, that policy should encompass: (i) respect for the confidentiality of those raising concerns; (ii) an opportunity to raise concerns outside the line management structure and even directly to outside counsel; (iii) meaningful sanctions, up to and including termination of employment, for preventing employees from raising legitimate concerns or retaliating once such concerns have been raised; (iv) meaningful sanctions, up to and including termination of employment, for making false or malicious allegations; and (v) a requirement that management act promptly and transparently when allegations of impropriety are made. (Global Crossing Bankruptcy News, Issue No. 36, Bankruptcy Creditors' Service, Inc., 609/392-0900) TYCO INTERNATIONAL: Declares Regular Quarterly Dividend ------------------------------------------------------- The Board of Directors of Tyco International Ltd. (NYSE: TYC, LSE: TYI, BSX: TYC) has declared a regular quarterly cash dividend of one and one quarter cents per common share. The dividend is payable on May 1, 2003 to shareholders of record on April 1, 2003. About Tyco International Ltd., Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in medical device products, and plastics and adhesives. Tyco operates in more than 100 countries and had reported fiscal 2002 revenues from continuing operations of approximately $36 billion. CONTACT: Gary Holmes Phone: 212-424-1314 TYCO INTERNATIONAL: Restructuring Includes Closuring 300 Units -------------------------------------------------------------- Tyco International Ltd. plans to reduce its facilities to 1,700 from 2,000, according to a report by EBN Online. The move is part of the Company's cost-cutting and reorganization measure, in order to regain investor confidence. The report indicated that Tyco's electronic division is expected feel the brunt of the re-organization process soon. At least two PC-board plans are slated for closure this year, after five component plants were closed last year. An executive from Tyco electronics said that the restructuring will have shaved off 46 percent of the workforce by the end of September. The division aims to improve its operating margin to 16-17 percent by the end of the fiscal year from about 14 percent in the previous fiscal year. During a presentation to institutional investors last week, Tyco chief Edward Breen said, "You've seen a lot of restructuring going on recently through our businesses, and Tyco Electronics is an example of this. They have been able to reduce costs sharply. It's our goal to churn this into profit. We're going through a portfolio assessment here and my goal this first year [of the new reorganization drive] is to stabilize the company." =========== B R A Z I L =========== CESP: Seeks To Restructure US$150M Worth of CP Due 2005 ------------------------------------------------------- Struggling to meet its financial obligations, Brazilian power generator Companhia Energetica de Sao Paulo (Cesp) has proposed changes to the terms and conditions on US$150 million in commercial papers due 2005, reports Business News Americas, citing a statement published in Brazilian newspapers Monday. The power generator seeks to eliminate a put option that allows investors to sell the papers back to the issuer on May 9, 2003, and would allow holders to redeem the commercial papers Jan 30, 2004. However, the option will be only given to investors on the condition that the Company literally fails to refinance 80% of the principal of the commercial papers. Cesp aims at refinancing "at least 80% of its total foreign commercial paper obligations" by the deadline of Nov 28, 2003. The Company has two series of commercial papers: one for EUR200 million and another for US$300 million, due February 2004. The Company must also pay BRL700 million (US$200mn) owed to the federal government within the next year. Last year, Cesp's losses quadrupled as the cost of financing its foreign currency bonds soared. Cesp shares have lost 17% this year, compared with a 5.8% decline in Brazil's benchmark Bovespa stock index. Cesp stock fell 10 centavos, or 1.6%, to BRL6 in Sao Paulo. CONTACT: Companhia Energetica De Sao Paulo (CESP) Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.cesp.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director AES CORP: CBLC May Auction Off Eletropaulo Preferred Stock ---------------------------------------------------------- The stalled talks between Brazil's BNDES National Development Bank and struggling U.S. power firm AES Corp. over the latter's non-payment of debt is likely to send AES' top local asset to the auction block, Reuters indicates. Last month, AES failed to make a US$330-million debt installment with AES and, as such, the Brazilian Clearing House (CBLC) should auction off the preferred stock in Eletropaulo, BNDES President Carlos Lessa said. "There's going to be an auction of these preferred shares. The deadline is over; now it depends on CBLC," Mr. Lessa told reporters. However, he indicated that that government-run BNDES was still hoping to resolve the situation through talks. "It is in our interests to resolve the two cases (involving AES) via talks... We remain in talks," the president added. The other case involves ordinary shares in Eletropaulo, which, along with the preferred shares, serve as guarantee behind BNDES' loan to AES extended after Eletropaulo's 1998 privatization. AES missed US$85- million debt installment at end-January. In that case, however, a contractual clause calls for a minimum negotiation period of 90 days, says Reuters. Ordinary voting shares would give BNDES control over Eletropaulo. But Lessa said AES had not sent any new proposals to settle the debt in the past few days. "The channels are open, but they haven't sent any proposals," he said, adding that the bank's projects were being affected by the non-payments. 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 LIGHT SERVICOS: Sees Solution To Conflict ----------------------------------------- Rio de Janeiro power company Light is beginning to see a solution to a conflict with employees, who opposed plans for significant layoffs, Business News Americas indicates. According to the Rio state energy workers union, Sintergia, over 450 employees, or more than 10% of Light's total work force, accepted the Company's voluntary redundancy plan. The figure is even more than what the Company's management has expected. Sintergia spokesperson Urbano del Valle said the union is not agreeable to the program. But given the choice between straightforward layoffs or voluntary redundancies with some incentives, it is clear that the latter is preferable. The spokesperson related that Light has said it is willing to restart talks with the unions Wednesday. Given the new circumstances, the spokesperson expects that the two sides are likely to reach an agreement. The union has reverted to its original claims for full job stability and an annual adjustment of 10.22%, retroactive from November, del Valle said. The union had lowered its wage adjustment demands to 6% prior to the redundancy program, but the new scenario means the union will call for a full adjustment for the remaining workers, he said. CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A. Avenida Marechal Floriano, 168 20080-002 Rio de Janeiro, Brazil Phone: +55-21-2211-2794 Fax: +55-21-2211-2993 Home Page: http://www.lightrio.com.br Contact: Bo Gosta Kallstrand, Chairman Michel Gaillard, President and CEO Joel Nicolas, Executive Director, Operation Paulo Roberto Ribeiro Pinto, Executive Director, Investor Relations and CFO VARIG: S&P Lowers RG Receivables' Notes To `CCC-' ------------------------------------------------- Standard & Poor's Ratings Services lowered Monday its rating on the notes issued by RG Receivables Co. Ltd., a special-purpose entity associated with Varig S.A., to 'CCC-' from 'CCC+'. The rating remains on CreditWatch, where it was placed Nov. 29, 2001. The downgrade reflects adverse developments in Varig's ongoing financial restructuring efforts as well as the increasingly difficult operating environment for the airline industry generally. Recent developments specific to Varig that have negatively impacted the credit quality of the RG Receivables transaction include the seizure of two long-haul aircraft (both subsequently released to Varig), the scheduled return to lessors of several other aircraft used on the airline's international routes, the failure of the airline to provide timely disclosure of certain financial results last year (and a subsequent suspension of its listing on the Brazilian stock exchange), and uncertainty surrounding the proposed merger with competitor Taxi Aereo Marilia (TAM). The expected return of long-haul aircraft is of particular concern, as the viability of Varig's transaction- critical international routes relies heavily on its ability to fly economically sized aircraft with flight frequencies and amenities that are similar to, or better than, those of its foreign competitors. Varig's challenges are compounded by the poor operating environment for many airlines stemming from high fuel costs, soft economic conditions, and continuing geopolitical risks. Financial pressures on Varig have increased markedly in recent weeks, with the seizure of the two aircraft and pressures from its fuel supplier and the Brazilian airport authority to repay significant past-due amounts. These developments, along with the airline's inability to conclude a viable long-term debt restructuring, are symptomatic of severe financial stress. Moreover, the prospects for the proposed merger with TAM appear increasingly uncertain. Even a successful completion of the merger could leave the performance of the RG Receivables transaction in doubt if a restructuring of the newly merged airline involves a significant reduction in international flights amid a poor air travel environment. The lowered rating and CreditWatch placement reflect Standard & Poor's belief that the airline's financial difficulties, if not quickly resolved, could soon put in jeopardy Varig's ability to continue its operations at the level necessary for continued timely payment on the RG Receivables notes. Standard & Poor's will continue to monitor carefully all developments involving Varig, particularly those involving its international business and its ongoing financial restructuring efforts. ANALYSTS: Kevin Kime, New York (1) 212-438-6223 Reginaldo Takara, Sao Paulo (55) 11-5501-8932 VESPER: Threatens To Withdraw GSM Technology on Anatel Ruling ------------------------------------------------------------- Qualcomm Brasil chairman Marco Rodrigues said that Brazilian local exchange carrier Vesper will not use GSM technology if the country's telecoms regulator will not approve Vesper's application for permission to operate its 1900MHz licences on CDMA technology. US-based CDMA chipset developer Qualcomm is the majority owner of Vesper, relates Business News Americas. Vesper is confined to using GSM in the 1800MHz band, although it qualifies as a mobile operator. The company spent US$84.4 million on three licenses on the said band last year. The licenses cover Sao Paulo state (Region 2), Minas Gerais state (Region 4) and the six northeastern states that make up Region 10. Business News Americas said that the Company is already providing CDMA-based fixed wireless service in those areas, as well as northwestern Brazil, via its fixed wireless concession to the 1900MHz band. However, the Company seems to have misinterpreted the approval it received to use its 1900MHz network for "secondary" mobile operations as approval to put PCS operations on its fixed wireless network. Market observers in the country feel that Vesper may be adversely affected financially if Anatel sticks to its decision of not allowing the operator to use the 1900MHz for "primary" operations. CONTACT: Qualcomm Inc 5775 Morehouse Dr. San Diego, CA 92121-1714 Phone: 858-587-1121 Fax: 858-658-2100 Web: http://www.qualcomm.com Contact: Dr. Irwin M. Jacobs, Chairman & Chief Executive ========= C H I L E ========= ENERSIS/ENDESA CHILE: Kicks Off Road Show In Search of Financing ---------------------------------------------------------------- Following an agreement reached with four banks on March 12, Chilean power sector holding Enersis and its generation subsidiary Endesa Chile will start a road show on March 19 to discuss plans to refinance US$2.3 billion of debts, reports Business News Americas, citing an Enersis statement. Through April 25, Enersis and Endesa Chile's CEOs, Enrique Garcia and Hector Lopez, will hold meetings with 30 banks in New York, Madrid and Chile's capital city Santiago. Enersis and Endesa are looking to restructure US$1.6 billion and US$700 million of debts, respectively. The Companies seek to put back repayment of principal until 2008. Thirty months after the agreement is signed, the two companies will begin paying interest and other financial expenses twice a year. Enersis revealed that a clause enabling the banks to recall debts in the event of deteriorating credit ratings at Enersis and Endesa has been replaced by a series of new covenants and financial obligations. The restructuring forms part of Enersis' plan to reduce consolidated debt by some US$2.2 billion, Enersis added. Also, in a shareholders meeting scheduled for March 31, a capital increase of US$2 billion will be taken up. Enersis will ask shareholders to approve a proposal to eliminate a 65% limit on the amount of shares its parent company Endesa Spain can own, allowing Enersis to capitalize a US$1.3 billion loan from Endesa Spain. CONTACT: ENERSIS Investor Relations: Ricardo Alvial Chief Investments & Risks Officer of Enersis Email: ram@e.enersis.cl Phone: (562) 353-4682 Contacts: Susana Rey, srm@e.enersis.cl Ximena Rivas, mxra@e.enersis.cl Pablo Lanyi-Grunfeldt, pll@e.enersis.cl ENERSIS: Expects Bids For 2 Chilean Assets March 24-27 ------------------------------------------------------ In an effort to complete the sale of Chilean assets in the first semester, Chilean power sector holding Enersis will receive bids for its Canutillar hydro plant and distributor Rio Maipo from March 24-27, says Business News Americas. There are "high levels of interest" from potential buyers, the Company revealed in an update of its divestment plan submitted to Chile's securities regulator SVS. Enersis had expected to sell its Infraestructura 2000 holding this month. However, the sale of certain real estate properties in Santiago will probably be shifted to the long term because of the oversupply in the market. Enersis expects to raise US$550 million from the divestments this year, and reduce consolidated debt by US$250 million. =============== C O L O M B I A =============== GILAT: Announces Closing of Debt Restructuring Plan --------------------------------------------------- Gilat Satellite Networks Ltd. announced Monday the closing of its plan of arrangement with its bank lenders, holders of its 4.25% Convertible Subordinated Notes due 2005 (the "Old Notes"), and certain other creditors. At the closing, Gilat's Old Notes were cancelled and the holders of the Old Notes were issued a combination of 4.00% Convertible Notes due 2012 (the "New Notes") and ordinary shares of the Company. Additional New Notes and ordinary shares were also issued in exchange for a portion of the Company's bank debt and debt to another financing creditor. The ordinary shares issued at the closing are available for trading as of Monday, March 17, 2003. "Our debt restructuring plan has reached a successful conclusion and the process is now behind us," said Yoel Gat, Gilat's Chairman and CEO. "With a much improved balance sheet and cost structure, Gilat can now move forward and execute its plan for future growth," he added. As of March 17, 2003, a total of 259,757,196 ordinary shares of the Company are outstanding. The completed transaction reduces the Company's principal debt by approximately US$300 million, secures new agreements with its banking creditors, and significantly reduces overall financing costs. The Company intends to distribute shortly a proxy statement relating to a shareholders meeting that it expects to hold in April of this year, to approve, among other things (i) the implementation of a 1-for-20 reverse stock split, (ii) an increase of the Company's share capital, and (iii) the election of a slate of directors. The expected reverse stock split will reduce the number of outstanding shares of the Company to approximately 12,987,860 shares, based on the amount of outstanding shares as of March 17, 2003. Gilat operates in Latin America through subsidiary Gilat Latin America. The company recently won social telephony contracts in Colombia and Brazil, money from which Gilat expects to significantly aid its cash position this year. CONTACT: Tim Perrott, VP, Investor Relations (USA) Tel: +703-848-1515 tim.perrott@spacenet.com * IDB Approves $1.25 Billion Emergency Loan For Colombia -------------------------------------------------------- The Inter-American Development Bank announced Monday the approval of a $1.25 billion emergency loan to Colombia designed to assist the government in maintaining marcoeconomic and fiscal stability while protecting social investments and reforms. The pledged resources are set to protect social reforms and investments. The resources will enable the government to protect the poorest sectors of the population through social investments in education, health, and poverty alleviation and to continue its ongoing social reform projects. The program will cushion the effects of fiscal discipline that accompany Colombia's implementation of a macroeconomic stabilization agreement with the International Monetary Fund. Among the poverty alleviation programs that are being supported by the loan are the Social Support Network, which provides temporary employment to persons in extreme poverty, youth job training, and subsidies that provide incentives for low-income families to keep children in school and protect them through preventive health. The resources will also support the Social Solidarity Network, which provides assistance to populations that have been displaced and affected by violence, as well as to indigent elderly and ethnic minorities; the Beneficiary Identification System (SISBEN), which is an important preparatory administrative procedure in distributing social benefits to the poor; and the Colombian Family Welfare Institute, which provides day care and feeding programs for poor children. Support for ongoing social reforms will allow for greater access and quality in education, higher vaccination rates against childhood illness - consistent with the Millennium Development Goals - and greater quality and efficiency in the national health insurance scheme. The program reflects the IDB strategy for Colombia of promoting social development, protecting the most vulnerable groups and investing in human capital to raise the potential for economic growth. The IDB is committed to provide Colombia with financing to support a broad range of development projects, with special attention to financing fiscal needs for 2003. The loan is for a five-year term, with a three-year grace period, at an interest rate based on the six-month U.S. dollar LIBOR rate plus 400 basis points. =========== G U Y A N A =========== GNCB: Welcomes New Owner ------------------------ The Guyanese National Bank of Industry and Commerce (NBIC), which is 51%-owned by the Republic Bank, reached an agreement to acquire the loss-making Guyana National Cooperative Bank (GNCB), the Stabroek News reports. The deal, worth G$2.76 billion (about US$15 million), was a good one in the sense that GNCB would cease losing money and a draining the treasury, according to Winston Brassington, head of Guyana's Privatisation Unit (PU). According to a press released from PU, NBIC had paid GNCB G$2.72B for a guaranteed net asset position of G$2B. The net asset position is yet to be confirmed by the audit firm Deloitte & Touche and the Office of the Auditor General in Guyana. Mr. Brassington said that all outstanding legal issues surrounding the sale of GNCB had been cleared up, and that the deal had been completely signed off and all monies paid up. This, said Mr. Brassington, would result in considerable savings to government, which would consequently have achieved a structural benchmark as part of its HIPC arrangements. He further said that the bank was already in operation looking at arrangements for its day-to-day operations. GNCB had been experiencing losses for years due mainly to a large non-functioning loan portfolio. The privatization agreements exclude the loan portfolio and some real estate "not related to the branch network," the release said. =========== M E X I C O =========== EMPRESAS ICA: El Cajon Contract Does Not Impact Ratings ------------------------------------------------------- Consortium Led by ICA Awarded the El Cajon Hydroelectric Project Standard & Poor's Ratings Services said Monday that the announcement made by Empresas ICA Sociedad Controladora S.A. de C.V. (ICA; CCC/Negative/--) that the Comision Federal De Electricidad (CFE; local currency: BBB+/Stable/--; foreign currency: BBB-/Stable/--) has awarded the El Cajon hydroelectric project to Constructora Internacional de Infraestructura S.A. de C.V. has no immediate impact on the ratings or outlook assigned to ICA. Constructora Internacional de Infraestructura is a consortium formed by two 100% owned ICA subsidiaries, Promotora e Inversora Adisa S.A. de C.V., as the project leader, with a 40% stake, and Ingenieros Civiles Asociados, with 25% stake, and Energomachexport Power Machines and Peninsular Compa�ia de Constructora S.A. de C.V., which have a 20% and a 15% stake in the consortium, respectively. Constructora Internacional de Infraestructura's bid was for approximately US$750 million, with a term of completion of 1,620 days. Standard & Poor's will wait to hear further details on the project, which should be revealed over the next couple of weeks. Nevertheless, the project is an important addition to ICA's consolidated backlog, particularly for the company's civil construction business. The negative rating outlook assigned to ICA reflects Standard & Poor's concerns regarding the company's liquidity, which is still considered very tight, and its financial and operating performance. A healthier backlog, which should stand at over 1.5 years of work by the end of the first quarter (versus five months as of Sept. 30, 2002), coupled with the company's financial restructuring could lead to an improvement in its liquidity, particularly ICA's ability to generate funds from operations, and financial performance and thus a positive action on the rating. ANALYSTS: Jose Coballasi, Mexico City (52) 55-5279-2014 Manuel Guerena, Mexico City (52) 55-5279-2011 PEMEX: Calls for Seismic Bids, Extends EPC Bid Deadline ------------------------------------------------------- Mexico's state oil company, Pemex, called for bids for 3D seismic studies on its offshore Sihil 3D-4C prospect in the Campeche sound, reports Business News Americas. The same source also reported that Pemex extended the bidding deadline for an EPC contract to install a 10,500b/d pentane hexane isomerization unit at its Francisco Madero refinery at Ciudad Madero in Tamaulipas state. Bidding rules for the seismic studies are available through April 16. Deadline for bids is April 22, when Pemex's PEP upstream unit opens technical bids. Economic bids will be opened on May 6. In related news, the deadline for the EPC contract was extended to April 8, from the original date of March 20. In line with the adjustments, Pemex will open economic bids on May 6, instead of April 10. Furthermore, the unit is now scheduled to start operations in May 2005 instead of April that year, and work is programmed to start June 23, 2003 instead of June 2. ============= U R U G U A Y ============= BANCO SANTANDER: Fitch Downgrades, Affirms Ratings -------------------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Banco Santander S. A. (Santander). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support rating: '4T', affirmed; --National rating 'A+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) BANCO SUDAMERIS: LTFC Downgraded To `CCC-` by Fitch Ratings ----------------------------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Banco Sudameris - Uruguay Branch (Sudameris). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --National Ratings 'A+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) CACDU: Fitch Reduces, Affirms Ratings ------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Primera Cooperativa de Ahorro y Credito de Paysandu (CACDU). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support rating: '5T' affirmed; --National ratings 'BB+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) COFAC: Ratings Downgraded, Affirmed On Planned Restructuring ------------------------------------------------------------ In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Cooperativa Nacional de Ahorro y Credito (COFAC). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- '; Rating Outlook Negative; --Support Rating: '5T' affirmed; --National Ratings 'BB+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) FAE: Fitch Cuts Ratings on Govt.'s Planned Debt Restructuring ------------------------------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Cooperativa de Ahorro y Credito FAE. The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support rating: '5T' affirmed; --National ratings 'BB+' (ury) affirmed; Rating Outlook Negative. (See Fitch's notes below.) FUCAC: Fitch Slashes Ratings On Uruguay's Planned Restructuring --------------------------------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Federacion Uruguaya de Cooperativas de Ahorro y Credito (FUCAC). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support rating: '5T' affirmed; --National ratings 'BBB-' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) FUCEREP: Fitch Cuts Ratings Following Sovereign Downgrade --------------------------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of Cooperativo de Ahorro y Credito (FUCEREP). The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support rating: '5T' affirmed; --National ratings 'BB+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) HSBC BANK: Fitch Lowers LTFC To `CCC-` -------------------------------------- In a series of related announcements, Fitch Ratings initiated various actions on the ratings of HSBC Bank (Uruguay) S.A.. The ratings affected are: --Long-term foreign currency rating downgraded to 'CCC-' from 'B- ', Rating Outlook Negative; --Support Rating: '4T' affirmed; --National Ratings 'A+' (ury) affirmed, Rating Outlook Negative. (See Fitch's notes below.) FITCH's NOTES: The actions follow a similar action taken on Uruguay's sovereign ratings, following the government's announcement of a planned debt restructuring on debt with maturities greater than one year. In addition, the Rating Outlook on the long-term foreign currency rating remains Negative in line with that of the sovereign ratings. While the outlook for the Uruguayan financial system remains very challenging, we do not believe that the planned debt restructuring will have a significant impact on the banks. In general, holdings of government debt among Uruguayan financial institutions is low, with the system holding roughly 4.3% of total assets in government securities at end-2002. In the case of the foreign banks and FUCEREP, this exposure is significantly lower (less than 1% of total assets). Moreover, short-term Letras are included in the figures for government debt, and according to the government announcement, the restructuring will only affect debt with maturities greater than one year. The most pressing challenge for the financial system will be to restore depositor confidence, which is key to stability in the financial system. The system has faced severe stresses over the past year, most recently with renewed deposit flight following rumors of the pesofication of deposits earlier in the year, which authorities have informed us had stabilized by the end of February. Moreover, the institutions under our coverage have maintained adequate liquidity levels, halting all new lending activities, to affront the crisis. Fitch will continue to monitor the liquidity position of these institutions in coming weeks as details of the debt restructuring unfold. CONTACT: Peter Shaw 1-212-908-0553, New York Ricardo Chaves 1-212-908-0606, New York Linda Hammel 1-212-908-0303, New York Ana Gavuzzo +5411 4327-2444, Buenos Aires Maria Fernanda Lopez +5411 4327-2444, Buenos Aires MEDIA RELATIONS: Matt Burkhard 1-212-908-0540, New York * IMF Provides Uruguay $303M Loan Installment --------------------------------------------- Uruguay, which is struggling to make debt payments amid a tough economic environment, got a shot in the arm from the International Monetary Fund, according to a report by Bloomberg. The report reveals that the IMF extended Uruguay a US$303-million loan installment and lengthened the period over which it will provide installments on its US$2.9 billion aid package, to the end of March 2005 instead of March 2004 in the original plan. Uruguay is facing US$1.6 billion in debt payments this year. Analysts said the credit is intended to revive investor confidence in Uruguay as the government tries to persuade bondholders to exchange their holdings for new securities with longer maturities. Uruguay, whose economy contracted 10% in 2002, last Friday started meetings with investors on a debt swap that some analysts said will amount to a default. "There is no alternative to a restructuring," given the magnitude of Uruguay's debt compared with GDP, said Michael Mussa, IMF chief economist from 1991 until 2001, and now with the Institute for International Economics in Washington. "The trick is to be able to pull that off in a way that doesn't blow up the banking system and devastate the economy." With Uruguay's banks holding much of the nation's debt, the government's challenge is to arrange a swap "without forcing a lot of banks into insolvency or creating bank runs," he said. ================= V E N E Z U E L A ================= PDVSA: Renewed Production Tops 3 Million Bbl Per Day ---------------------------------------------------- Petroleos de Venezuela S.A. (PdVSA) chairman Ali Rodriguez said that production at Venezuela's state oil company topped 3 million barrels of crude for the past few days. In addition, government new service reported that the 950,000b/d capacity Paraguan complex of the Amuay and Card�n refineries will be back to full production "soon". However, analysts believe that Venezuelan mines and energy minister Rafael Ramirez statement that the country will recover production lost in the strike, means that the country intends to produce more than its Opec quota, said the report. Mr. Ramirez clarified the issue saying Venezuela would simply produce now what it did not produce before. In the meantime, PdVSA has imported about 12 million barrels of gasoline to meet domestic demands. An earlier report from the Troubled Company Reporter-Latin America indicates that figures on the amount the company spends on imports did not agree with those given by the company. Mr. Ramirez said that some US$600 million has been spent on imports, but PdVSA said that only US$540 million was spent on imports. Recently, Mr. Ramirez said that the imports will soon be stopped as the company now has enough inventory to satisfy domestic demands. PDVSA: Analysts Perceive Permanent Production Loss From Strike -------------------------------------------------------------- Analysts believe that Petroleos de Venezuela has permanently lost 350,000-400,000 barrels per day in its average production after the two-month long national strike hit the country and almost crippled Venezuela's oil industry, according to a report from Business News Americas on Monday. The report indicated that older fields that require secondary pumping may be too expensive to bring back on line, causing the anticipation of a decline in production. The strike resulted in the dismissal of at least 15,000 oil workers, adding to the company's restart woes. This month, a number of refineries had to postpone restart procedures due to problems with their catalytic crackers. Earlier reports indicated that there is a shortage of manpower and skills to restart some refineries safely and effectively. Local news source El Universal said that PdVSA's El Palito refinery may have to postpone gasoline production until may due to its catalytic cracker problems. However, the country's mines and energy minister Ali Rodriguez downplayed the dismissals. ". . . for every worker there was a manager, and that is an unjustifiable relationship. There was an oversupply of managers and bureaucracy, and moreover there were 30,000 workers contracted by PDVSA and contractors," he said. "Now we have seen that with the personnel we have at the moment, it is possible to operate the industry." In a television interview, however, Mr. Ramirez assured workers that there will be no more dismissals as the labor and operating situation is returning to normal, and most strikers have returned to work. *********** 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *