/raid1/www/Hosts/bankrupt/TCRLA_Public/030417.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, April 17, 2003, Vol. 4, Issue 76
Headlines
A N T I G U A & B A R B U D A
LIAT/BWIA: Various Carriers' Route Changes Result from Merger
A R G E N T I N A
BANCO DE SANTA FE: Four Firms Eyeing For Control
BANCO GALICIA: Billions Worth of Bonds Rated `raD' By Local S&P
CTG: Court Ordered Installments Mandated to be Paid
DISCO: Bourse Rejects Earnings Release Extension
DISCO: $350M Worth of Bonds rated `raB' by Argentine S&P
IRSA: Local Fitch Rates Bonds `B(arg)-', Equity `2'
B E R M U D A
TRENWICK GROUP: To Cease Reinsurance Underwriting in U.S.
B R A Z I L
AES ELPA: Expects To Miss $200M Payment To BNDES
CELESC: Losses Balloon On Rising Dollar, Power Rationing
C H I L E
ENDESA CHILE: Local Investor Demands Payout to Seal Deal
MANQUEHUE NET: SVS Ruling To Reduce Parent's 2002 Net Profit
TELEFONICA CTC: Expects 20% Boost In Online Sales This Year
C O L O M B I A
GILAT SATELLITE: Announces 2002 Results
E C U A D O R
BANCO DEL PACIFICO: Reports $1.8M Net Profit In 1Q03
ECUADORIAN BANKS: State To Auction $114M In Restructured Loans
PETROECUADOR: March Exports 5.7% Lower Than February Figure
J A M A I C A
AIR JAMAICA: Executive Denies Interest In LIAT/BWIA Merger
JUTC: Swede Consultant Larson Appointed to Top Post
M E X I C O
ALESTRA: Extends Deadline for Outstanding Exchange Offers
AZTECA HOLDINGS: Extends $150M Debt Swap Offer Anew
CORPORACION DURANGO: Inks Debt Deal With Creditors
PEMEX: Projects Production Increases Will Rebuild Reserves
VITRO: Moody's Reduces Bonds Five Notches Below Investment Grade
V E N E Z U E L A
PDVSA: Signs Accord With Petroecuador, Aims For Regional Company
- - - - - - - - - -
=================================
A N T I G U A & B A R B U D A
=================================
LIAT/BWIA: Various Carriers' Route Changes Result from Merger
-------------------------------------------------------------
A merger between BWIA and LIAT may lead to route changes for
other regional airlines. LIAT Chairman Wilbur Harrigan said that
cutting down on duplicating destination schedules is one area
being looked leading up to the airlines merge. According to
RJRNews.Com, regional airlines Air Jamaica and Air Tobago might
be affected.
The LIAT/BWIA merger is expected to take place this June.
Regional leaders agreed upon the move after a weekend meeting at
Barbados.
The group has established a technical advisory committee to
report to examine how the merger will work and file a report by
June, the report reveals.
Both LIAT and BWIA are having financial troubles since the
September 11 attacks. The effects of the war in the Middle East
exacerbated their problems.
CONTACT: LIAT Corporate Headquarters
V.C. Bird International Airport,
P.O. Box 819,
St. John's, Antigua West Indies
Phone: 1 (268) 480-5600/1/2/3/4/5/6
Fax: 1 (268) 480-5625
Home Page: http://www.liatairline.com/
Contacts:
Garry Cullen, Chief Executive Officer
David Stuart, Vice President of Marketing
British West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, CFO (Trinidad)
=================
A R G E N T I N A
=================
BANCO DE SANTA FE: Four Firms Eyeing For Control
------------------------------------------------
Argentine bank El Nuevo Banco de Santa Fe, which is currently in
receivership and under the administration of ABN Amro, received
purchase offers from four companies. La Caja offered ARS78
million for control of the bank, Banex ARS57 million and
Bansud/Comafi ARS55.6 million. The fourth bank, Banco de San
Juan, topped all bids with a ARS133-million offer.
According to a Business News Americas report, the central bank
and local authorities will now conduct an official technical
evaluation of each bid with the announcement of the winner
expected to take place after the presidential election on April
27.
BANCO GALICIA: Billions Worth of Bonds Rated `raD' By Local S&P
---------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rated number corporate bonds issued by Argentine bank, Banco de
Galicia y Buenos Aires `raD' on Thursday. According to the
National Securities Commission of Argentina, the rating applies
to the following bonds:
-- US$150 million worth of "Obligaciones Negociables autorizadas
por AGO de fecha 3.3.93", classified under "Simple Issue" and due
in Aug 2002.
-- US$500 million of "Programa Global de Obligaciones Negociables
de corto plazo", under "Program", with undisclosed maturity date.
-- US$1 billion of "Programa Global de ONs autorizado por AGO de
fecha 30.9.97-Series de Corto Plazo", also under "Program", and
expires on May 2 this year.
-- US$1 billion of "Programa Global de ONs autorizado por AGO de
fecha 30.9.97-Series Senior", under "Program", due on May 2,
2003.
-- US$1 billion of "Programa Global de ONs autorizado por AGO de
fecha 30.9.97-Series Subordinadas", under "Program" and comes due
on May 02.
-- US$200 million of "Obligaciones Negociables autorizadas por
AGO de fecha 18.3.93", under simple issue, and expires on
November 3 this year.
According to S&P, obligations are rated `raD' when it is payment
default or if the Company has filed for bankruptcy. The rating,
based on the Company's financial health as of the end of December
2002, is also used when interest of principal payments are not
made on their due dates, even if the applicable grace period has
not expired, unless the ratings agency believes that payment will
be made during such a grace period.
CTG: Court Ordered Installments Mandated to be Paid
---------------------------------------------------
Victor Daniel Ibanez, Judge of the Insolvency and Commercial
Court of First Instance, First Nomination of the Central Judicial
District, located at General Guemes Street No. 1060, in the city
of Salta, province of Salta, Republic of Argentina, Clerk's
office of Attorney Isabel Lopez Figueroa de Canonica notifies -
for three days - that in the court proceeding captioned: "CENTRAL
TERMICA GUEMES S.A. on/ COURT SUPERVISED REORGANIZATION"
(concurso preventivo) File No. 2C 45,698/99, dated March 21,
2003, the following request has been granted:
"AND IT APPEARING BEFORE THE COURT...CONSIDERING...I DECIDE: TO
GRANT the preliminary injunction (Media Cautelar de prohibicion e
Innovar e Innovativa) requested by CENTRAL TERMICA GUEMES S.A.
and to SUSPEND, with respect to Holders of 41.35 percent of the
Debt Securities (Obligaciones Negociables), the accrual, receipt
and payment of the court ordered installments (coutas
concordatas) due from and including March 26, 2003, in accordance
with the terms of the Creditors' Agreement and subsequent related
legal acts;
I. ORDERING CENTRAL TERMICA GUEMES S.A. to pay the court ordered
installments (coutas concordatas) due under the Creditors'
Agreement from and including March 26, 2003, I accordance with
the terms of the Request for Judicial Revision of the Creditors'
Agreement (Propuesta de Adecuacion Judicial de Acuerdo
Concursal), establishing that the provisiona payment will not
constitute nor will it be considered as an event of default that
would authorize a collective and/or individual claim of any sort
based on the shortfall resulting from the provisional payment
being made in accordance with the terms of the Request for
Judicial Revision (Propuesta de Adecuacion Judicial). All that,
until there exists a final and firm judgment on the merits of the
request for Incidental Revision A(Incidente de Revision).
II. NOTIFY the Bank of New York, Banco Rio de la Plata, the
Buenos Aires Stock Exchange (Bolsa de Comersio de Buenos Aires),
the Argentine national Securities Commission (Comision National
de Valores) and the Argentine Electric Power Market (Mercado
Electrico Argentino), by means of a notice of official
communication (law 22,172) as applicable.
III. TO BE PUBLISHED by summons in the Official Gazette in the
Province of Salta and in the National Official Gazette, in the
newspaper "El Tribuno" in this city, in the newspaper "La Nacion"
in Buenos Aires, in "The Wall Street Journal" in the state of New
York and in the newspapers "La Voix du Luxembourg" and
"Luxemburger Wort" in Luxembourg, for a period of three days.
IV. CONSIDER ACCEPTED as surety the sworn statements made by
Central Termica Guemes S.A. and Doctor Washington Alvarez on his
own behalf."
Signed:
Victor Daniel Ibanez, Judge
Isabel Lopez Figueroa de Canonica, Clerk
DISCO: Bourse Rejects Earnings Release Extension
------------------------------------------------
Argentine supermarket chain Disco SA suffered a blow after its
request to delay the release of its fourth-quarter 2002 earnings
by two months was denied by the country's securities authorities.
Dow Jones recalls that Disco, a unit of troubled Dutch retail
giant Ahold NV, requested permission in mid-March to release the
numbers by May 12 - or 60 days late - amid accounting scandals at
both Ahold and Disco.
However, on Friday, the Buenos Aires Stock Exchange ordered Disco
to release the earnings within five working days.
A spokesman for Disco couldn't confirm when Disco would make
public the earnings, but said: "The company is making its best
efforts" to complete the figures as soon as possible.
Ahold gained complete control over Disco last July, after former
partner Velox Retail Holdings defaulted on debts to banks. Since
then, the Dutch company has repeatedly injected additional
capital into Disco.
In the first nine months of 2002, the Argentine business posted a
loss of ARS1.76 billion.
CONTACT: DISCO S.A.
Larrea 847, Piso 1
1117 Buenos Aires, Argentina
Phone: +54-11-4964-8000
Fax: +54-11-4964-8076
Home Page: http://www.disco.com.ar
DISCO: $350M Worth of Bonds rated `raB' by Argentine S&P
--------------------------------------------------------
Standard & Poor's International ratings, Ltd. Sucursal Argentina
rated Disco S.A.'s corporate bonds `raB' on April 3, the National
Securities Commission of Argentina said.
The rating, based on the Company's financial strength as of the
end of September 30, 2002, applies to US$100 million of bonds
described as "Obligaciones Negociables de Mediano Plazo,
autorizadas por AGO de fecha 24.10.97", which expires on May 15
this year.
The rating also applies to another US$250 million worth of bonds
with the same description, but matures on May 15, 2008. Both set
of bonds were classified under "simple issue."
According to S&P, an obligation rated `raB' denotes weak
protection parameters relative to other obligations in the
country. The Company has the capacity to meet its financial
commitments on the obligation, but adverse business, financial,
or economic conditions likely impair that capacity or willingness
to pay.
CONTACT: Ahold
Corporate Communications
Phone: +31.75.659.5720
IRSA: Local Fitch Rates Bonds `B(arg)-', Equity `2'
----------------------------------------------------
Corporate bonds issued by IRSA Inversiones y Representaciones
Sociedad AnĒnima, one of the Argentina's largest real estate
developers, were rated `B (arg)-' by Fitch Argentina Calificadora
de Riesgo S.A. on Wednesday.
The said rating denotes a significantly weak credit risk relative
to other issues in Argentina. Financial commitments are currently
being met but a limited margin of safety remains and capacity for
continued timely payments is contingent upon a sustained,
favorable business and economic development, said the rating
agency.
An announcement from the National Securities Commission of
Argentina said that the rating affects US$250 million of
"Programa Global de Obligaciones Negociables", classified under
"Program." The bond's maturity date was not disclosed.
At the same time, Fitch rated the Company's stocks `2'. The
ratings were based on the Company's finances as of the end of
December 2002.
IRSA, with its subsidiaries and joint ventures, manages an
expanding portfolio of shopping centers and office buildings,
primarily in Buenos Aires. The company also develops residential
subdivisions and apartments (specializing in high-rises and loft-
style conversions) and owns shares in three Argentine hotels.
Subsidiary Home Financing originates mortgages to home buyers.
IRSA has a partnership in Brazil with Cyrela, a leading developer
in Sao Paulo, and is teaming with Banco Hipotecario to sell
mortgage-backed securities on the secondary market.
CONTACT: IRSA Inversiones y Representaciones Sociedad AnĒnima
C/ Bolivar No. 108
C1066AAD Buenos Aires, Argentina
Phone: +54-11-4323-7555
Fax: +54-11-4323-7597
Home Page: http://www.irsa.com.ar
=============
B E R M U D A
=============
TRENWICK GROUP: To Cease Reinsurance Underwriting in U.S.
---------------------------------------------------------
Trenwick Group Ltd. ("Trenwick")(OTC: TWKGF) announced Tuesday
that it would cease underwriting reinsurance business under its
previously announced underwriting facility with Chubb Re, Inc.
("Chubb Re") a subsidiary of The Chubb Corporation.
The underwriting facility, which began in November 2002, permits
Trenwick to write up to $400 million of U.S. Reinsurance business
on behalf of Chubb Re through January 31, 2004. Since inception
in November 2002, Trenwick has underwritten approximately $128
million of reinsurance in this facility. Trenwick will continue
to be entitled to the economic benefits of existing business
under the facility subject to the terms and conditions of the
facility.
Trenwick's ability to write reinsurance business under the
facility has been severely constrained by its financial condition
and concerns arising with respect to its on going stability. As a
result, Trenwick will cease its future underwriting activities
under the facility in order to reduce Trenwick's costs. The
effect of this cessation is that Trenwick America Reinsurance
Corporation will now be primarily in runoff. Trenwick will
continue to service and pay claims for all business previously
written through Trenwick America Reinsurance Corporation outside
of the Chubb facility and shall jointly adjust and settle with
Chubb Re any claim arising under the business written pursuant to
the Chubb facility subject to Chubb Re's final authority.
Background Information
Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with subsidiaries located in the United
States, the United Kingdom and Bermuda. Trenwick's operations at
Lloyd's of London underwrites specialty insurance as well as
treaty and facultative reinsurance on a worldwide basis.
Trenwick's U.S. specialty program business, specialty London
market insurance company, Trenwick International Limited and its
U.S. reinsurance business through Trenwick America Reinsurance
Corporation are now in runoff. In 2002, Trenwick sold the in-
force business of LaSalle Re Limited, its Bermuda based
subsidiary.
===========
B R A Z I L
===========
AES ELPA: Expects To Miss $200M Payment To BNDES
------------------------------------------------
AES Elpa, the Brazilian arm of U.S.-based AES Corporation,
announced that it would miss a US$200 million payment to BNDES
due April 15, reports Bloomberg News.
"AES Elpa will not be making the payment," announced AES
spokesman Ahmed Pasha, adding, "We are in negotiations with BNDES
and we'd like to wrap up all these debt maturities in a package
deal."
AES Elpa, along with Transgas Empreemdimentos borrowed US$1.2
billion from BNDES to buy Eletropaulo Metropolitana, the region's
biggest power distributor.
However, AES was not able to keep up with the payments on the
loans. Bloomberg said that AES had missed paying the US$85
million in January, and another US$330 million in March.
CELESC: Losses Balloon On Rising Dollar, Power Rationing
--------------------------------------------------------
Celesc posted losses of BRL290.6 million last year, reports
Business News Americas. That's 227% bigger than the losses posted
in the previous year. Losses widened due to a rising U.S. dollar
rate in 2002 as well as power rationing for the losses, Celesc
said. The Company posted a 21.2% increase in revenues last year
to BRL1.747 billion, against the previous year's revenues. As of
Dec. 31, the Company's net worth was R$ 637.6 million.
=========
C H I L E
=========
ENDESA CHILE: Local Investor Demands Payout to Seal Deal
--------------------------------------------------------
Endesa Spain was forced to pay a minority shareholder three times
the book value of the shareholder's stake in Chilean generator
Panque in order to gain approval on a refinancing deal, Business
News Americas indicates.
The Spanish firm owns Panque through its local subsidiary Endesa
Chile. Chilean businessman Sebastian Pinera, a former senator and
is president of the National Renovation (RN) opposition party,
holds 2.39% interest in Panque. Two other businessmen, Ignacio
Guerrero and Jose Cox, owned 0.48% and 0.98%, respectively.
Last week, Pangue shareholders agreed last week to offer the
company as a guarantee for a loan of up to US$743 million for
Endesa Chile. Shareholders who disagreed with the proposal had
the right to sell their stock at a price of CLP258.57 (US$0.04) a
share. But, according to El Diario newspaper, Pinera, Guerrero
and Cox held out for CLP904.3 a share. The three are estimated to
have received US$13.9 million for their shares, compared to the
US$4 million that was initially on offer.
CONTACT: Endesa SA
Principe de Vergara 187
28002 Madrid
Spain
Phone: +34 91 213 10 00
Fax: +34 91 563 81 81
Telex: 22917 ENE
Home Page: http://www.endesa.es
Contacts:
Rodolfo M. Villa, Chairman
Rafael Miranda Robredo, Managing Director
MANQUEHUE NET: SVS Ruling To Reduce Parent's 2002 Net Profit
------------------------------------------------------------
The lower-than-expected earnings of Chilean telecom operator
Manquehue Net is expected to reduce its parent natural gas
distributor Metrogas' net profits last year by 2.5% or CLP249
million (US$346,300), reports Business News Americas.
Previously, Metrogas posted profits of CLP10.2 billion (US$14
million) in 2002, up 1.1% from CLP10.1 billion in 2001. However,
Metrogas is expected to lower the figures after the SVS objected
to Manquehue Net's inclusion of an outstanding bill from fellow
Chilean telecom company Telefonica CTC in its 2002 results.
Metrogas, Chile's largest natural gas distributor and serves the
Metropolitan Region, will post the revised figures with its first
quarter results, the Company said in a statement.
Manquehue Net is owned by local gas company Metrogas (25.54%),
US-based Williams Communications (23.52%), Capital Trust
(19.14%), Chile's Rabat Group (19.13%) and Xycom (12.67%). It
provides local telephony, corporate telephony, broadband and
dial-up Internet services.
CONTACT: MANQUEHUE NET S.A.
Av. Condor 796, Enterprise City,
Huechuraba Santiago Chile
Phone: 00 562 243 8800
Fax: 00 562 248 7292
EMAIL: info@manquehue.netl
Home Page: http://www.manquehue.net/
http://www.manquehue.cl
Contact:
Mr. Miller Williams, President
Sr.Jos, Luis Rabat Vilaplana, Vice President
TELEFONICA CTC: Expects 20% Boost In Online Sales This Year
-----------------------------------------------------------
Telefonica CTC Chile, Chile's largest fixed line operator,
expects to increase online sales by 20% this year from that of
2002, Business News Americas reports, citing CTC spokesperson
Edith Flores. Due to CTC's privacy policy, Flores declined to
provide detailed growth figures.
CTC's B2C portal Tienda Virtual, which sells a series of products
and services online, currently has 16,000 subscribed clients who
receive free service benefits based on the level of e-purchases
they perform.
The portal, which came into operation in May 2000, operates via
mixed technology incorporating systems for risk validity, clients
and online billing.
TCR-LA recalls that CTC's chief executive Claudio Munoz revealed
plans at a recent annual shareholders meeting to invest US$50
million in broadband services and US$30-40 million in data
transmission services.
In addition, Munoz disclosed plans to reduce debt by US$100-150
million by the end of this year. The Company closed 2002 with a
US$1.55 billion debt. About 80% of the said figure is long-term.
Excess cash flow will be channeled to debt reduction, the
executive said.
CTC has restructured itself to achieve an efficiency ratio of
1,058 lines per employee. The Company is the principal fixed line
operator in Chile, with 2.68 million fixed lines in service and
1.85 million mobile subscribers.
CONTACT: TELEFONICA CTC
Avenida Providencia 111, Piso 2
Santiago, Chile
Phone: +56-2-691-2020
Fax: +56-2-691-2392
Home Page: http://www.ctc.cl
Contacts:
Mr. Bruno Philippi, President
Mr. Jacinto Daz, Vice President
Gisela Escobar, Head of Investor Relations
===============
C O L O M B I A
===============
GILAT SATELLITE: Announces 2002 Results
---------------------------------------
Gilat Satellite Networks Ltd. (Nasdaq: GILTF), a worldwide market
leader in satellite networking technology and services, reported
its results for the year ending December 31, 2002. The Company
also announced the election of a new Board of Directors, the
appointment of two key management positions, and significant new
business awards.
Revenues for the year ending December 31, 2002, were US$209
million. Revenues for the year were impacted by the exclusion of
Gilat's European business unit revenues related to its joint
venture agreement with SES GLOBAL, the Company's restructuring
process, and a sluggish economy. The Company recorded several
charges throughout the year largely relating to the restructuring
process, the adoption of a new accounting policy, the impairment
of certain assets, and other charges. The Company primarily took
the following charges in the year: US$69.7 million charge
related to goodwill in accordance with the adoption of a new
accounting policy under the Statement of Accounting Standards
(SFAS) No. 142; US$51.4 million related to impairment of
investments in companies, primarily GVT and long-term notes,
US$8.3 million impairment of intangible assets, US$42.4 million
charge for impairment of other long lived assets, all relating to
SFAS No. 144; US$20.1 million related to an impairment of
inventory, and approximately US$34.7 million for bad debt.
Including these and other charges, the Company reported a net
loss of US$348.2 million, or US$14.77 per share for the year
ended December 31, 2002. Restructuring plan completed reducing
debt, financing costs and improving shareholders equity.
The Company also announced on March 17, 2003, that it had
completed 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, removing uncertainty
related to the Company's debt position and improving viability.
The successful completion of its debt restructuring plan reduces
the Company's principal debt by approximately US$305 million,
secures new agreements with its banking creditors, and
significantly reduces overall financing costs. As a result of the
agreement, the Company expects to increase its shareholder's
equity by approximately US$230 million.
The Company secured long-term, 10-year agreements with both its
existing bank group and holders of the 4.00% convertible notes
("New Notes"). The Company's primary obligations as of March 31,
2003, will now consist of US$118.3 million in long-term bank debt
over a term ending in 2012 and US$88.3 million in 4.00%
convertible notes due 2012. The Company's near-term financing
costs will be reduced by approximately 60% over the year 2002.
The Company ended the year December 31, 2002, with approximately
US$71 million of cash, including restricted cash, and
equivalents. Also at yearend, current assets were higher than
current liabilities by approximately US$128 million.
The Company also announced that its shareholders and Board of
Directors approved a 1-for-20 reverse stock split. This reverse
stock split will reduce the number of outstanding shares of the
Company to approximately 12,987,860 shares, effective on April
16, 2003.
The Company also announced today that its new Board of Directors
has elected two key management positions. After the resignations
of Chairman and CEO Yoel Gat, and President Amiram Levinberg, the
Board elected Shlomo Rodav as Chairman and Oren Most as President
and CEO. Shlomo Rodav joins Gilat as Chairman and is the
successful owner and manager of numerous companies in the high-
tech, infrastructure, environment, food and holdings areas. Oren
Most joins Gilat from Cellcom (Israel), the county's largest and
most successful cellular phone company, where he was one of the
company's founders and served as Deputy CEO and Head of the
Customers Division.
Improving deal funnel and backlog, Gilat recently announced
several new deals in the United States, Latin America, and
Africa, including expanded support for GTECH lottery operations
in the US
During the fourth quarter and in the recent months, Gilat has
continued it market leading position in the industry by
continuing to win significant new business in the United States,
Latin America, and Africa. The recent wins led to an increase in
backlog, totaling approximately US$250 million at year-end 2002
and comparably higher than the same period in 2001. From this
backlog amount, the Company expects that approximately over
US$120 million will turn into revenue during 2003, thus providing
a stable base on which to grow revenue from new project wins
during the upcoming year. Major new business wins recently
announced include the following:
- The Company announced in January that its US subsidiary,
Spacenet, has received multiple purchase orders with global
lottery services leader GTECH Corporation for nearly 10,000 Gilat
Skystar Advantage(R) broadband satellite communications terminals
for lottery networks in California, Minnesota, Kansas and New
York. The Company also received purchase orders for an
additional 1,250 VSATs for lottery networks in Idaho and
California.
- Diebold, Incorporated has contracted with Spacenet to become an
authorized channel partner of Spacenet's Connexstar(SM) business-
grade satellite broadband service.
- Spacenet has also been selected by International Dairy Queen,
Inc. (IDQ) as its exclusive provider of satellite-based broadband
connectivity for its restaurant brands, including Dairy Queen
Brazier(R) stores, throughout the United States.
- The Colombian government selected Gilat for two Compartel
projects including the installation and operation of 500
telecenters that will provide Internet connectivity and telephony
services in cities and towns throughout Colombia and a 3,000-site
fixed rural satellite telephony network. Together, the total
value of the contracts is approximately US$65 million.
- In a contract worth US$22 million, Brazil's Communications
Ministry selected Gilat to provide Skystar 360E, two-way,
satellite Internet service to 3,200 sites nationwide, as part of
the country's new GESAC program.
- Gilat was selected by Telkom South Africa Limited, the largest
telco in Africa, to provide a Skystar 360E satellite hub station
and thousands of VSAT terminals, establishing Gilat's satellite-
based technology as Telkom SA's broadband VSAT offering. The
agreement spans a five-year period reaching a cumulative amount
of more than 26,000 units. Gilat expects to generate
approximately US$10 million in revenue by the end of 2003.
- The Company announced it is providing broadband satellite
communications equipment and services to support an important new
joint venture in Mexico between GlobalSat and Intelsat Global
Services Corporation.
GlobalSat is teaming with Intelsat to introduce two-way satellite
broadband Internet service throughout Mexico. The service will
target the small office/home office (SOHO) market, small to
medium enterprises (SMEs) and remote offices of multinational
corporations.
About Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd., with its global subsidiaries
Spacenet Inc., Gilat Latin America, Inc. and rStar Corporation
(RTRCE), is a leading provider of telecommunications solutions
based on Very Small Aperture Terminal (VSAT) satellite network
technology -- with nearly 400,000 VSATs shipped worldwide.
Gilat markets the Skystar Advantage, DialAw@y IP, FaraWay,
Skystar 360E and SkyBlaster* 360 VSAT products in more than 70
countries around the world. The Company provides satellite-
based, end-to-end enterprise networking and rural telephony
solutions to customers across six continents, and markets
interactive broadband data services. The Company is a joint
venture partner in SATLYNX, a provider of two-way satellite
broadband services in Europe with SES GLOBAL. Skystar
Advantage(R), DialAw@y IP(TM) and FaraWay(TM) are trademarks or
registered trademarks of Gilat Satellite Networks Ltd. or its
subsidiaries. Visit Gilat at http://www.gilat.com. (*SkyBlaster
is marketed in the United States by StarBand Communications Inc.
under its own brand name.)
To see financial statements: http://bankrupt.com/misc/Gilat.htm
=============
E C U A D O R
=============
BANCO DEL PACIFICO: Reports $1.8M Net Profit In 1Q03
----------------------------------------------------
Ecuadorian state-run bank Banco del Pacifico reported a net
profit of US$1.8 million and assets totaling US$632 million in
the first quarter of 2003. Citing a company press release issued
Monday, Dow Jones says the bank ended March with US$332 million
in deposits and reduced its past-due loan portfolio by US$3
million, to US$34 million.
The central bank was expected to announce Wednesday the name of
the investment bank that will manage the sale of Pacifico. The
candidates competing for the contract are ABN Amro Bank,
Providet, Paribas and Ecofin International LLC.
Pacifico was taken into government receivership during the
country's 1998-1999 financial crisis. Under the original
timeframe established in the letter of intent between the
government and the International Monetary Fund (IMF), a contract
for a valuation study of Pacifico should have been awarded on
March 31 this year, and the bank sold by the end of July.
The auction is part of the government's US$210-million standby
loan program with the International Monetary Fund.
ECUADORIAN BANKS: State To Auction $114M In Restructured Loans
--------------------------------------------------------------
Ecuador plans to auction up to US$114 million in restructured
loan portfolios from 10 failed banks. Citing Fernando Buendia, a
board member of the Andean nation's Deposit Guarantee Agency, or
AGD, U.S., Mexican and domestic Ecuadorian financial firms are
interested in participating in the auction.
The state was expected to set this week the date for the sale of
US$34 million in restructured assets from nine of the banks now
under its control, Buendia said. It will also decide whether to
include some US$80 million in restructured assets from the failed
Filanbanco bank.
Buendia said the base price was already fixed by the AGD and
another financial agency, although he didn't reveal the base
price. If the base price isn't reached, the auction will be
suspended, and a new one will be declared. The auction process,
he said, should conclude before the end of the month.
Auction proceeds will be transferred to the closed banks to
facilitate the return of deposits and other payments due to their
respective clients. In return, the re-programmed certificates of
deposits and other securities of the banks will also be used to
help clear accounts they have with the central bank.
PETROECUADOR: March Exports 5.7% Lower Than February Figure
-----------------------------------------------------------
Petroecuador, Ecuador's state oil company posted 5.7 percent
decline in the amount of products exported in March, Business
News Americas disclosed. From exports of 3.65 million barrels in
February this year, the figure went down to 3.45 last month.
Meanwhile, the March 2003 export figures are better than those in
the same month a year ago. From 3.16 million barrels in March
2002, the Company managed to export 3.44 million barrels in March
this year. However, according to the report, the Company's
revenue fell by 12 percent to only US$101 million in March from
US$114 million in February.
Petroecuador's crude exports were 111,043 barrels/day in March
2003 compared with 101,894b/d in March 2002, said the report. The
report did not indicate the possible reasons for the export
decline.
=============
J A M A I C A
=============
AIR JAMAICA: Executive Denies Interest In LIAT/BWIA Merger
----------------------------------------------------------
Air Jamaica President Christopher Zacca indicated that his
Company is not interested in taking part of the merger between
BWIA and LIAT at this time, reports Jamaican news source
RJRNews.Com.
Although Mr. Zacca commented that it would be advantageous to
have a stronger carrier to service the South and Eastern
Caribbean routes, he emphasized that Air Jamaica has little
competitive overlap with BWIA and LIAT in those routes.
The executive added that Air Jamaica can achieve the same
synergies without necessarily joining the merger through
functional cooperation.
However, he noted that Air Jamaica will be able to feed LIAT more
passengers once the Jamaican airline gets onto some of LIAT's
gateways. On the other hand, Air Jamaica would also coordinate
its schedules, and even have a code sharing with BWIA, if
necessary.
The report notes that Mr. Zacca refused to comment on the
viability of the BWIA/LIAT merger, saying that he only wishes the
best for both cash-strapped airlines.
He sought to explain that Air Jamaica had very little competitive
overlap with either BWIA or LIAT, adding that it was strongly
felt that the national airline can achieve the same synergies
through functional cooperation rather than an ownership merger.
CONTACT: Air Jamaica
4 St. Lucia Avenue
Kingston 5,
Jamaica
Phone: 876/922-3460
Fax: 929-5643
Email: webinfo@airjamaica.com
Contact:
Gordon Stewart, Chairman
Allen Chastanet, Vice President for Marketing and Sales
JUTC: Swede Consultant Larson Appointed to Top Post
---------------------------------------------------
Swedish Consultant Tore Larson was appointed managing director of
ailing Jamaica Urban Transit Company (JUTC), the Jamaica Observer
reports. Mr. Larson takes the place of Sterling Soares, who
recently resigned saying he needs to concentrate on his sporting
goods business.
JUTC public relations manager, Errol Lee, announced, "Tore
Larsson of the Swedish consultants will act as managing director
of JUTC, assuming the responsibilities of Mr Soares. (Mr.)
Larsson will be the top executive."
Mr. Larsson is part of a team of Swedish transport consultants
contracted last year to oversee the reorganisation of the company
and to bring it back to viability, the report recalls.
Local reports say the Company is losing about $4 million
everyday, due to illegal taxi operators. The 90 percent bus fare
hike Mr. Larsson and his colleagues recommended in the hopes of
helping the airline regain losses has not been implemented yet.
The consultants also recommended a redundancy exercise, and so
far, 64 employees, including the resignation of top executives
John Campbell and Alton Fletcher. Mr. Campbell was vice-president
of engineering, while Mr. Fletcher acted as human resources
chief.
===========
M E X I C O
===========
ALESTRA: Extends Deadline for Outstanding Exchange Offers
---------------------------------------------------------
Alestra, S. de R.L. de C.V. ("Alestra") announced Tuesday that
the deadline for its outstanding exchange offers, cash tender
offers and consent solicitations has been extended. The offers
will remain open until the new expiration date of May 7, 2003,
unless further extended by Alestra. Alestra also announced that
it was continuing to negotiate with an ad hoc committee of
noteholders regarding the offers. The extension does not affect
the terms of the offers. In addition, Alestra announced that
approximately $143 million principal amount of its outstanding 12
1/8% Senior Notes due 2006 had tendered in the offers and that
approximately $95 million principal amount of its outstanding 12
5/8% Senior Notes due 2009 had tendered in the offers.
You may obtain copies of Alestra's prospectus and transmittal
documents for the offers from the Information Agent: D.F. King &
Co., Inc., 48 Wall Street, New York, New York, 10005. Banks and
brokers call collect: (212) 269-5550. All others call toll free:
(800) 549-6697.
This announcement and the cash tender offers, exchange offers,
and consent solicitations which are the subject hereof are not
being made in any jurisdiction in which, or to any person to
whom, it is unlawful to make such announcement and/or cash tender
offers, exchange offers and consent solicitations under
applicable securities laws. The new senior notes may not be sold
nor may offers to buy be accepted prior to the time Alestra has
obtained the necessary authorizations from the Comision Nacional
Bancaria y de Valores de Mexico. This release shall not
constitute an offer to sell or the solicitation of an offer to
buy nor shall any sale of these securities in Mexico or in any
U.S. state or territory in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under
the securities laws of Mexico and any such U.S. state or
territory.
This announcement shall not under any circumstances create any
implication that the information contained herein is correct as
of any time subsequent to the date hereof, or that there has been
no change in the information set forth herein or in the affairs
of Alestra or any of its affiliates since the date hereof. No
indications of interest in the offers are sought by this press
release.
Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a
leading provider of competitive telecommunications services in
Mexico that it markets under the AT&T brand name and carries on
its own network. Alestra offers domestic and international long
distance services, data and internet services and local services.
AZTECA HOLDINGS: Extends $150M Debt Swap Offer Anew
---------------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca, S.A. de C.V., one of the two largest producers of Spanish
language television programming in the world, announced Tuesday
that it is extending the expiration date of the offer to
exchange, subject to market and other conditions, its new 10 3/4%
Senior Secured Amortizing Notes due 2008 for its existing 10 1/2%
Senior Secured Notes due 2003. As of the prior expiration date,
April 14, 2003, US$63,498,000 in aggregate principal amount of
the 10 1/2% notes were tendered for exchange. The exchange offer
also includes a consent solicitation for amendments to the terms
and conditions of the indenture governing the 10 1/2% notes. The
completion of the exchange offer will also include the approval
of these amendments.
The new expiration date for the exchange offer and the consent
solicitation is 5:00 p.m., New York City time, on April 24, 2003.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the new 10 3/4% notes, nor shall
there be any sale of the new 10 3/4% notes 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.
The exchange offer and consent solicitation are being made
pursuant to an Offering Memorandum and Consent Solicitation
Statement dated March 3, 2003 and the related Letter of
Transmittal and Consent, which more fully set forth the terms and
conditions of the exchange offer and consent solicitation. The
exchange offer and consent solicitation may be terminated or
amended at any time prior to the new expiration date, and the new
expiration date may be extended at the option of Azteca Holdings.
Company Profile
Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 55.5% of the capital stock of TV Azteca, S.A.
de C.V.
TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca's affiliates include Azteca America Network, a broadcast
television network focused on the rapidly growing United States
Hispanic market; Unefon, a Mexican mobile telephony operator
focused on the mass market; and Todito.com, an Internet portal
for North American Spanish speakers.
CONTACT: Azteca Holdings, S.A. de C.V.
Bruno Rangel
Phone: +5255-30-999167/
Home Page: http://www.tvazteca.com.mx
CORPORACION DURANGO: Inks Debt Deal With Creditors
--------------------------------------------------
Mexican paper company Corporacion Durango (Codusa) gained
approval from creditors to restructure bonds totaling more than
US$500 million after it promised to pay creditors 2% on the
bonds, according to a report by Reuters.
The approval came from The Steering Group, which holds 52% of
principal on US$301 million in bonds coming due in 2006, and 36%
of principal on US$175 million in bonds due in 2009.
In a press release, Codusa said it "signed with its main debt
bond holders an agreement to continue friendly negotiations
toward the integral restructuring of the company's liabilities."
The agreement gave the Company "the time and support to complete
the consensual financial restructuring," it said. It provided no
details on any restructuring plan or proposal.
The Company also made the offer to remaining creditors holding
US$18 million in bonds due in 2003 and US$10 million in bonds due
in 2008.
The agreement follows Codusa's failure to pay interest of
12.625%, 13.125%, 13.5% and 13.75% on bonds due in 2003, 2006,
2008 and 2009, respectively. Standard & Poor's (S&P) credit
rating agency lowered its rating for Codusa's bonds to "D," to
reflect that the Company was in default.
CONTACTS: CORPORACION DURANGO, S.A. DE C.V.
Mayela R. Velasco
+52 (1) 829 1008
mrinconv@corpdgo.com.mx
Arturo Diaz Medina
+52 (1) 829 1015
adiaz@corpdgo.com.mx
PEMEX: Projects Production Increases Will Rebuild Reserves
----------------------------------------------------------
Pemex chief executive Raul Munoz relates that Mexico's state oil
company could reach its target of replacing 75 percent of oil and
gas annual production with new reserves a year ahead of schedule
due to higher spending on explorations, according to Business
News Americas. The Company, which now expects to reach its goal
in 2005, instead of 2006, hopes to boost production to 4.3
million barrels a day by 2008.
Mr. Munoz said that that the average annual spending on
explorations has increased to US$1.5 billion, from US$350 million
in the 1990's. He added that reserve replacement was 41 percent
in 2002, up from a total of 26% during the six-year period
between 1995 and 2000.
Since 2001, major Pemex discoveries have included Lankahuasa,
Chukua, Playuela, Akpul and Enlace (natural gas) and Mision
(crude), Business News Americas recalls.
VITRO: Moody's Reduces Bonds Five Notches Below Investment Grade
----------------------------------------------------------------
Moody's Investors Service lowered the bond ratings of Mexico's
largest glassmaker Vitro SA to B2, or five steps below investment
grade, from B1, reports Bloomberg. The downgrade, which affects
US$250 million of bonds, reflects the declines in the Mexican
peso and weak demand from U.S. markets.
The 16 percent decline in the Mexican peso in the past 12 months
has swelled the value of Vitro's dollar-denominated debt when
measured in local currency. The Company's high debt levels
increase its sensitivity to the U.S. economy, Moody's said.
"Moody's expects continued pressure on Vitro's financial profile
throughout fiscal 2003 primarily due to the challenging local and
global business environments, notably throughout the Flat Glass
segment which accounts for approximately 47% of consolidated
revenue," the rating company said in its statement.
Falling demand from the U.S. contributed to a US$6-million loss
in the fourth quarter as Vitro's flat glass division, which sells
to the auto and construction industries, had a 67% drop in
operating profits from a year earlier.
In February, Vitro received a US$201 million loan from an
international syndicate of banks led by Comerica Inc. and
Citigroup Inc. It has a US$250 million bond due in 2007 and about
MXN3.2 billion (US$301 million) of notes outstanding in the
Mexican domestic market.
CONTACT: Vitro S.A. de C.V.
Monterrey
Albert Chico Smith
Phone: +52-81-8863-1335
E-mail: achico@vitro.com
Mexico D.F.
Eduardo Cruz
Phone: +52-55-5089-6904
E-mail: ecruz@vitro.com
Financial Community
Beatriz Martinez
Phone: +52-81-8863-1258
E-mail: bemartinez@vitro.com
United States of America
Luca Biondolillo
Phone: +1-646-536-7012
E-mail: Lbiondolillo@breakstoneruth.com
or
Susan Borinelli
Phone: +1-646-536-7018
E-mail: sborinelli@breakstoneruth.com
=================
V E N E Z U E L A
=================
PDVSA: Signs Accord With Petroecuador, Aims For Regional Company
----------------------------------------------------------------
Petroleos de Venezuela, S.A. (PdVSA) agreed to a marketing and
technical assistance accord with Ecuador's state oil Company,
Petroecuador, Bloomberg relates, citing a statement from
Venezuela's state oil Company. The move is seen as part of
PdVSA's efforts to create a regional oil company among South
America's oil producers. In line with this, the Company has also
contacted its counterparts in Colombia and Brazil.
According to the report, the PdVSA and Petroecuador will be
selling crude oil and products together. Under the terms of the
agreement, PdVSA will help its Ecuadorian counterpart overhaul
its refineries, and provide liquefied petroleum gas as well.
PdVSA will also help refine Ecuadorian crude, the report says.
Venezuela's state oil company was adversely affected by the two-
month strike that hit the country earlier. The strike
unsuccessfully tried to oust President Hugo Chavez, resulting in
the retrenchment of more than 18,000 workers, and almost totally
cripples PdVSA production.
***********
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
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Information contained herein is obtained from sources believed to
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