/raid1/www/Hosts/bankrupt/TCRLA_Public/030718.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, July 18, 2003, Vol. 4, Issue 141
Headlines
A R G E N T I N A
ALET: Court Announces Bankruptcy
ANTON HERMANOS: Court Declares Bankruptcy Official
BANCO BISEL: S&P Assigns Default Ratings To Bonds
BANCO SUQUIA: $40M Worth of Bonds Rated `raD'
BANCO SUQUIA/BISEL/BERSA: Find Potential Buyer In Macri
BUHL: Begins Bankruptcy Process
CENTRAL PUERTO: Fitch Confirms Category 3 Equity Rating
COLORIN: Moody's Issues Default Rating on Bonds
CONSTRUCCIONES SUBITAS: Claims Verification Ends Today
IMAGEN: $80M Worth of Bonds Rated `D' by Moody's
PRIME ARGENTINA: Seeks Court Permission To Start Reorganization
SISMAR: Initiates Reorganization Process
TELEARTE: Court Opens Reorganization Case
TELEVISION ABC: Court Receives Motion For "Concurso Preventivo"
VISOR: Publishing Company Reorganizing Under Court Supervision
B E R M U D A
GLOBAL CROSSING: Wants to Pull Plug on Impsat Telehouse Pacts
LORAL SPACE: To Sell Six Satellites; Files For Bankruptcy
LORAL SPACE: Case Summary & 20 Largest Unsecured Creditors
B R A Z I L
AES CORP.: Fitch Affirms Ratings; Revises Outlook to Stable
ARACRUZ CELULOSE: Moody's Reduces Credit Outlook To Negative
ELETROPAULO METROPOLITANA: To Spend $69M on New Connections
VARIG: Court Ruling Returns Chairman Position to Martins
C H I L E
SANTA ISABEL: Cencosud Lowers Offer For Ahold's 97% Stake
C O L O M B I A
AVIANCA: Court Grants 60-Day Reprieve on Plan Filing
D O M I N I C A N R E P U B L I C
COGENTRIX: DR Government Makes $41M Payment
E C U A D O R
* Ecuador To Offer $2.75M In Seized Bank Debt
J A M A I C A
AIR JAMAICA: Adamant on Halting Negril Route
M E X I C O
GRUPO IUSACELL: Amendment, Waiver Extended Again to August
GRUPO IUSACELL: Appoints Jose Luis Riera as CFO
GRUPO IUSACELL: Creditors' Move May Block Movil@access Buy
ROHN INDUSTRIES: PWC Resigns as Independent Accountant
P A R A G U A Y
MULTIBANCO: Deficits Double Upon Further Financial Review
V E N E Z U E L A
SIDOR: Exec Reports 80% Rise In Exports This Year
* Venezuela Moves To Extend Debt Payments
- - - - - - - - - -
=================
A R G E N T I N A
=================
ALET: Court Announces Bankruptcy
--------------------------------
Court No. 10 of Buenos Aires declared local company Alet S.A.
under bankruptcy, reports local news source Infobae, adding that
the Court is assisted by Secretary No. 19 on the matter.
According to the report, Mr. Carlos Eduardo Gil is the designated
receiver. Creditors are advised to have their claims verified
before the August 4 deadline expires.
The Court expects to have the individual reports by October 17,
followed by the general report on November 28.
CONTACT: Carlos Eduardo Gil
Montevideo 734
Buenos Aires
ANTON HERMANOS: Court Declares Bankruptcy Official
--------------------------------------------------
Argentine company Anton Hermanos S.R.L. is officially bankrupt
according to Buenos Aires Court No. 3. Local news source Infobae
says that the receiver assigned to the case is Ms. Maria
Cenatiempo. The deadline for verification of credit claims is
August 28 this year. The receiver will file the individual
reports on October 9, followed by the general report on November
20.
CONTACT: Maria Cenatiempo
Avenida de Mayo 1365
Buenos Aires
BANCO BISEL: S&P Assigns Default Ratings To Bonds
-------------------------------------------------
Corporate bonds issued by Banco Bisel S.A. were given default
ratings by Standard & Poor's International Ratings, Ltd. Sucursal
Arhgentina recently. The bonds in question are US$300 million
worth of "Programa de Emisi¢n de T¡tulos de Deuda a Mediano
Plazo" and US$54 million worth of "Obligaciones Negociables
Subordinadas". The said bonds matured in July 2000.
S&P said that the `raD' rating, which is based on the company's
finances as of the end of December 2003, is assigned to issues
that are currently in payment default, or if the obligor has
filed for bankruptcy.
BANCO SUQUIA: $40M Worth of Bonds Rated `raD'
---------------------------------------------
A total of US$40 million of corporate bonds issued by Banco
Suquia S.A. received default ratings (`raD') from the Argentine
branch of Standard & Poor's International Ratings, Ltd. on
Monday. The National Securities Commission of Argentina relates
that the rating is based on the Company's financial condition as
of December 31, 2003.
The rating applies to bonds that are classified under "simple
issue". Some US$13 million of "Obligaciones Negociables
subordinadas convertibles, autorizadas por AGE de fecha 19.9.97",
due on May 25, 2005, and US$23 million of "Obligaciones
Negociables subordinadas, autorizadas por AGO de fecha 19.12.97"
due on November 7, 2005 received the ratings, which is given to
issues that are in default, or whose obligor has file for
bankruptcy.
BANCO SUQUIA/BISEL/BERSA: Find Potential Buyer In Macri
-------------------------------------------------------
Francisco Macri, head of the Argentinean group Socma, announced
plans to acquire Nuevo Banco Suquia, Nuevo Banco Bisel and Nuevo
Banco Bersa, reports South American Business Information.
The three Argentinean banks were under the control of Credit
Agricole, the French financial group, until mid 2002, when the
latter decided to withdraw from the country. They are now under
the control of Banco Nacion, the Argentinean bank, which has now
decided to put them out for sale.
Macri, who made the announcement shortly after revealing his
intention to sell all his companies in Argentina and Brazil, will
bid for the institutions through Socma's subsidiary Pago Facil.
BUHL: Begins Bankruptcy Process
-------------------------------
Court No. 17 of Buenos Aires rules that local company Buhl S.A.
be put under bankruptcy, according to a report by Argentine news
portal Infobae. The report adds the Secretary No. 14 assists the
Court on the matter.
Creditors are required to have their claims verified by Mr. Jose
Antonio Planas, the designated receiver, before the September 23,
2003 deadline expires.
CONTACT: Jose Antonio Planas
Paraguay 631
Buenos Aires
CENTRAL PUERTO: Fitch Confirms Category 3 Equity Rating
-------------------------------------------------------
Credit ratings agency Fitch Ratings revealed in a statement that
it has confirmed its Category 3 rating on the shares of Argentine
thermo generator Central Puerto, relates Business News Americas.
The rating reflects the Company's low cash generation capacity
and the shares' high liquidity.
Central Puerto is 63.9% owned by France's TotalFinaElf, and
together with its subsidiaries has 2,165MW installed capacity,
accounting for 10% of Argentina's thermo generation.
CONTACTS: CENTRAL PUERTO
Jacques Chambert Loir, CEO
2701 Avenida Tomas A Edison
Buenos Aires, Argentina
Phone +54 1 317 5074
Home Page http://www.centralpuerto.com
COLORIN: Moody's Issues Default Rating on Bonds
-----------------------------------------------
Moody' Latin America Calificadora de Riesgo S.A. rates corporate
bonds issued by Colorin Industria de Materiales Sintet. `D',
relates the National Securities Commission of Argentina.
The rating applies to bonds, which the NSC described as
"Obligaciones Negociables", worth a total of US$47 million, which
come due on March 31, 2006. These were classified under "Simple
Issue."
CONSTRUCCIONES SUBITAS: Claims Verification Ends Today
------------------------------------------------------
Creditors of Buenos Aires-based company Construcciones Subitas
S.A. were informed that the deadline for the verification of
their claims expired today, Friday July 18, according to a report
from local news portal, Infobae.
The Company, which the court officially declared bankrupt, is now
in the hands of the court-appointed receiver, Ms. Maria Silvia
Cosoli. The receiver is expected to file the individual reports
on September 15. The general report will be submitted n October
27.
CONTACT: Maria Silvia Cosoli
Uruguay 750
Buenos Aires
IMAGEN: $80M Worth of Bonds Rated `D' by Moody's
------------------------------------------------
Imagen Satelital S.A.'s corporate bonds were rated `D' by Moody's
Latin America Calificadora de Riesgo S.A., said the National
Securities Commission of Argentina.
The rating, based on the company's finances as of the end of
March 31 this year, applies to US$80 million worth of bonds
called "Obligaciones Negociables." The bonds are classified under
"Simple Issue", and matures on May 2, 2005.
PRIME ARGENTINA: Seeks Court Permission To Start Reorganization
---------------------------------------------------------------
Prime Argentina S.A. is petitioning Court No. 16 of Buenos Aires
to start its reorganization process. According to Infobae,
Secretary No. 32 assists the Court on the matter. Estudio
Giacumbo Hernandez was assigned receiver for the case. Creditors
must have their claims verified before December 22 this year.
CONTACT: Estudio Giacumbo Hernandez
Avenida Corrientes 1250
Buenos Aires
SISMAR: Initiates Reorganization Process
----------------------------------------
Buenos Aires-based company Sismar S.A. filed a motion for
"Concurso Preventivo" at the city's Court No. 19, relates local
news source Infobae. If approved, the Company may then start its
reorganization process.
The report adds that the informative assembly will be on November
4 this year. However, it did not mention whether a receiver has
been assigned to the case.
TELEARTE: Court Opens Reorganization Case
-----------------------------------------
Buenos Aires Court No. 16 announces initiation of the "Concurso
Preventivo" process for local company Telearte S.A. Empresa de
Radio y Television. Local news source Infobae says that the Court
assigned Estudio Carelli Martino as receiver for the case.
Creditors are hereby informed that the deadline for verification
of claims is December 22 this year.
CONTACT: Telearte S.A. Empresa de Radio y Television
Dorrego 1708
Buenos Aires
Estudio Carelli Martino
Esmeralda 770
Buenos Aires
TELEVISION ABC: Court Receives Motion For "Concurso Preventivo"
---------------------------------------------------------------
Court No. 16 of Buenos Aires received a motion for "concurso
preventivo" from local company Television ABC S.A., recently.
Infobae reports that the Company is seeking permission to start
its reorganization process.
Estudio Giacumbo Hernandez is assigned receiver for the case. The
deadline for verification of claims is December 22, 2003, so the
receiver can start preparing the individual reports afterwards.
CONTACT: Estudio Giacumbo Hernandez
Avenida Corrientes 1250
Buenos Aires
VISOR: Publishing Company Reorganizing Under Court Supervision
--------------------------------------------------------------
Argentine publishing company Visor Enciclopedias Audiovisuales
S.A. is seeking court permission to start reorganizing its
business. According to local news source Infobae, the Company has
submitted its motion for "Concuroso Preventivo" at Court No. 1 of
Buenos Aires. However, the report did not indicate whether a
receiver has been designated to the process.
CONTACT: Visor Enciclopedias Audiovisuales S.A.
Anibal A. Arbeleteche 1580
Buenos Aires
=============
B E R M U D A
=============
GLOBAL CROSSING: Wants to Pull Plug on Impsat Telehouse Pacts
-------------------------------------------------------------
The Global Crossing Debtors seek the Court's authority to reject:
(i) the Telehouse Agreement (Lima, Peru) among Impsat Peru
S.A., SAC Peru S.R.L. and South American Crossing Ltd.,
dated March 16, 2000; and
(ii) the Telehouse Agreement (Buenos Aires) among Impsat S.A.,
Impsat Corporation, Global Crossing SAC Argentina S.R.L.
and South American Crossing Ltd., dated December 17, 1999;
and
(iii) the Telehouse Agreement (Caracas-Venezuela) among
Telecomunicaciones Impsat S.A., Pan American Crossing
Landing B.V. and Pan American Crossing Ltd., dated February
22, 2000.
Michael F. Walsh, Esq., at Weil Gotshal & Manges LLP, in New
York, informs the Court that Impsat Fiber Networks Inc. is a
provider of private telecommunications network and Internet
services in Latin America. Aside from the Telehouse Agreements,
the GX Debtors and Impsat are parties to numerous other
agreements. On January 15, 2003, Impsat filed a request for
payment of administrative expenses and a motion to determine the
rejection of executory contracts.
On February 19, 2003, the GX Debtors objected to the Impsat
Motion. In addition to the Objection, the GX Debtors sought to
assume certain executory contracts with Impsat Fiber Networks,
Inc., effective upon the Debtors' emergence. On April 9, 2003,
Impsat objected to the proposed assumption to the extent that the
assumption would not become effective until the Emergence Date
and that the GX Debtors' retained their right to reject at
anytime prior to the Emergence Date.
At the April 14, 2003 Hearing, the GX Debtors agreed, among other
things, that they would have until May 14, 2003 to reject certain
Impsat Agreements, including the Telehouse Agreements. Following
additional discussions, the Debtors and Impsat agreed to further
extend the deadline for the Debtors to reject certain Impsat
Agreements until June 9, 2003.
The Debtors have reviewed the Telehouse Agreements and determined
to reject them.
Telehouse Agreements
According to Mr. Walsh, the Telehouse Agreements govern the
provision of space by Impsat to the Debtors in Impsat's telehouse
facilities located in Lima, Peru, Buenos Aires, Argentina and
Caracas, Venezuela. Pursuant to the Telehouse Agreements, the
Debtors lease space in Impsat's telehouses to connect their
customers' telecommunications traffic to their fiber optic cable
system in Lima, Buenos Aires, and Caracas.
(1) Lima Telehouse Agreement
The Lima Telehouse Agreement provides for a 10-year term,
starting in January 2001, costing $173 per square meter in
monthly lease cost. The Debtors' total yearly payments under the
Lima Telehouse Agreement is $1,346,824 inclusive of an 18% value
added tax. The Debtors have determined, in their business
judgment, to relocate their telecommunication fibers from the
Lima Telehouse to another location in Lima that would result in
substantial savings. The Debtors own the New Lima Location and,
therefore, they would incur no incremental costs to operate from
that site. The cost associated with relocating to the New Lima
Location is estimated to be $300,000. Despite these one-time
costs, by relocating to the New Lima Location, the Debtors will
realize savings in the millions of dollars over the life of the
Lima Telehouse Agreement.
Mr. Walsh admits that moving the Debtors' telecommunications
fibers from the Lima Telehouse to the New Lima Location will be a
lengthy process involving numerous steps. The Debtors will be
required to:
-- obtain local permits to perform construction work in the
street to connect fibers,
-- move equipment from the Lima Telehouse, and
-- obtain the delivery of additional equipment from outside
the country to the New Lima Location.
In addition, the Debtors will need time to allow for their local
loop providers to establish their presence in the New Lima
Location. All of this must be accomplished in a manner as to
ensure that there is no disruption of service to the Debtors'
customers. Moreover, because the Debtors' telecommunications
licenses in Peru require the minimization of service disruptions,
any disruptions of service would put the Debtors' Peru Licenses
at risk. The Debtors anticipate that it will take three to four
months to complete the relocation to the New Lima Location.
(2) Buenos Aires Telehouse Agreement
Mr. Walsh informs the Court the Buenos Aires Telehouse Agreement
provides for a 10-year term, commencing in December 2001, at $101
per square meter per month. The original contract price under the
Buenos Aires Telehouse Agreement, on an annual basis, is
$1,674,000, inclusive of taxes. Under Argentine law, the Debtors'
current annual obligations under the Buenos Aires Telehouse
Agreement total $847,000, inclusive of taxes.
The Debtors have determined, in their business judgment, to
relocate their telecommunication fibers from the Buenos Aires
Telehouse to a new location in Wilde, Argentina that will result
in substantial savings. The Debtors currently have a 10-year
lease for the Wilde Location and, therefore, the Debtors would
incur no incremental costs to operate from that site. The Debtors
estimate that it will cost $1,200,000 to relocate to the Wilde
Location. Despite these one-time costs, by relocating to the
Wilde Location, the Debtors will realize savings in the millions
of dollars over the term of the Buenos Aires Telehouse Agreement.
Mr. Walsh acknowledges that moving the Debtors'
telecommunications fibers from the Buenos Aires Telehouse to the
Wilde Location will be complex. Buenos Aires is a major South
American city for telecommunications traffic in general and,
specifically, for the Debtors' South American operations. Buenos
Aires is the location of some of the Debtors' most utilized
services in South America. Accordingly, there is a substantial
amount of equipment located in the Buenos Aires Telehouse, and
that equipment and service must be moved and re-established in
the Wilde Location. The space in the Wilde Location must be
prepared to receive this equipment. The relocation to the Wilde
Location requires the re-arrangement of large amounts of
equipment, some of which is already in the Wilde Location, some
arriving from other locations in Argentina, and some from
locations outside South America. As with the New Lima Location,
some construction work must be completed outside in the streets
around the Wilde Location, and the Local Loop Providers need time
to be established within the new location. All work must be
accomplished to ensure that there is no disruption of service to
the Debtors' customers. In addition, because the Debtors'
telecommunications licenses in Argentina require the minimization
of service disruptions, any disruptions of service would put the
Argentine Licenses at risk. The Debtors anticipate that it will
take between seven to eight months to complete the relocation to
the Wilde Location.
(3) Caracas Telehouse Agreement
The Caracas Telehouse Agreement runs for a 15-year term,
commencing in March 2001, at $172 per square meter per month. The
Debtors' total yearly payments under the Caracas Telehouse
Agreement is $1,319,900, inclusive of a 16% VAT.
The Debtors have determined, in their business judgment, to
relocate their telecommunication fibers from the Caracas
Telehouse to another location in Caracas that will result in
substantial savings. Mr. Walsh notes that the New Caracas
Location is not owned by the Debtors, but the monthly cost per
square meter is 90% less than their costs under the Caracas
Telehouse Agreement. The Debtors estimate that the costs
associated with relocating to the New Caracas Location is
$1,600,000. Despite these one-time costs, by relocating to the
New Caracas Location, the Debtors will realize savings in the
millions of dollars over the life of the Caracas Telehouse
Agreement.
Similar to the relocation of the Lima and Buenos Aires
Telehouses, Mr. Walsh says, moving the Debtors'
telecommunications fibers from the Caracas Telehouse to the New
Caracas Location will be a lengthy, multi-faceted process. It
will involve obtaining local permits to perform some work in the
street to connect fibers, the movement of equipment from the
Caracas Telehouse, and the delivery of additional equipment from
outside the country, to the New Caracas Location, and allowing
for the Local Loop Providers to establish their presence in the
New Caracas Location. In addition, relocating will require
construction in the streets outside the New Caracas Location. All
work must be accomplished in a manner as to ensure that there is
no disruption of service to the Debtor's customers. Moreover, as
with the Buenos Aires and Lima Telehouses, any disruption of
service will put the Debtors' Venezuelan telecommunications
licenses at risk. The Debtors anticipate that it will take eight
to nine months to properly complete the relocation to the New
Caracas Location. (Global Crossing Bankruptcy News, Issue No. 43;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
LORAL SPACE: To Sell Six Satellites; Files For Bankruptcy
---------------------------------------------------------
Loral Space & Communications Ltd. (NYSE: LOR) announced Tuesday
that it has reached a definitive agreement to sell its six North
American telecommunications satellites to Intelsat, Ltd. for up
to $1.1 billion in cash, subject to certain price adjustments
related to Loral's ability to achieve specified operating
parameters prior to the close. In conjunction with and as a
precondition to this sale, Loral and certain of its subsidiaries
filed Tuesday voluntary petitions for reorganization under
Chapter 11 of the U.S. Bankruptcy Code.
Loral intends to reorganize around its remaining fleet of five
satellites and its satellite manufacturing operations, allowing
the company to go forward as a viable enterprise with
opportunities for future growth. The Chapter 11 filing, made
Tuesday in the U.S. Bankruptcy Court for the Southern District of
New York, will enable Loral to sell the six North American
satellites free and clear of any encumbrances.
It was also announced Tuesday that Intelsat has agreed to order a
new satellite from Loral and will make a $100 million down
payment on that order upon closing of the sale of the North
American satellites.
Loral expects to use most of the proceeds from the sale of the
North American satellites to repay all $959 million of its
outstanding secured bank debt. The transaction is expected to
close within four to six months, pending Bankruptcy Court and
regulatory approval. The agreement provides for the sale of
Telstars 4, 5, 6 and 7, which are currently in orbit, as well as
Telstars 13 and 8, which are scheduled to be launched later this
year and in the first half of next year, respectively.
Through its Skynet subsidiary, Loral will continue to operate an
integrated fixed satellite and network services business using
its fleet of five telecommunications satellites and its
established VSAT/fiber global network infrastructure. The Loral
fleet will consist of the Telstar 10, 11 and 12 satellites
currently in orbit and Telstar 18/Apstar V and Telstar 14/Estrela
do Sul, which are scheduled to be launched within the next nine
months. This fleet serves markets in South America, Europe and
Asia that the company believes are currently underserved and have
potential for growth.
Loral will also continue to own and operate Space Systems/Loral
(SS/L), engaged in the design and manufacture of satellites and
satellite systems for commercial and government applications and
one of only five such manufacturers in the world.
Bernard L. Schwartz, chairman and chief executive officer of
Loral, said: "Loral's principal challenge has been to overcome
the effects of the prolonged economic downturn that led to the
lack of satellite manufacturing orders across the industry and a
slowdown in growth of fixed satellite services (FSS). We have
concluded that a sale of the North American satellites, coupled
with a Chapter 11 reorganization, represents the best way to
resolve the financial difficulties that have resulted from the
downturn. We will be able to use the substantial cash proceeds
generated by this transaction to reduce our secured debt, while
allowing Loral to reorganize around its remaining satellite fleet
and satellite manufacturing business."
Loral believes that it currently has adequate cash on hand and
cash flow from operations to continue normal operations and
customer support. Accordingly, the company has decided not to
obtain third-party debtor-in-possession (DIP) financing at this
time. Loral will continue to evaluate its liquidity needs on an
ongoing basis.
On June 30, Loral announced that it had collected $55 million in
cash from Intelsat, resulting from an acceleration of a
receivable for agreed-upon orbital performance payments.
Separately, the company also announced on June 30 that it had
reached a settlement with Alcatel resolving all outstanding
issues between them including a contract dispute that had been in
arbitration.
Tuesday's actions follow a confluence of events that have
severely affected Loral's financial performance in recent years.
These include overcapacity in the existing global satellite
universe, which created a severe drought in orders for new
satellites; the collapse of the capital markets, which hampered
the ability of many of Loral's customers to raise capital for
planned projects and also hindered the company's own plans to
raise capital; and a significant reduction in FSS demand from
telecommunications providers, particularly from Internet-related
companies.
Loral currently has approximately $2.1 billion in long-term debt
(including the $959 million of bank debt), resulting mainly from
its investments in Globalstar as well as the rapid build-up of
its FSS fleet, which has demonstrated its value over time through
its strong cash flow and EBITDA performance.
Mr. Schwartz said: "Our investment in the North American fleet
yielded an attractive return. At the same time, we are encouraged
about the prospects for the FSS fleet that will remain after the
sale is completed. In particular, we believe our markets in South
America and Asia are under-served and have growth potential.
"We also believe that Space Systems/Loral is an attractive asset
at a time when the satellite manufacturing industry worldwide is
poised for consolidation and is experiencing early indications of
an upturn in new orders. Our objective for SS/L is to allow it to
move forward as an integrated, ongoing concern with the financial
resources it needs to grow."
In addition to the satellite order from Intelsat, SS/L recently
was awarded a $113 million contract to provide batteries and
power systems for the International Space Station. Earlier this
year, WildBlue Communications Corp., Denver, Colo. ordered a
restart from SS/L of its WildBlue-1 satellite program.
The company believes that its plan to substantially reduce long-
term debt and interest expense going forward should help address
concerns customers and suppliers may have had about its financial
condition. Moreover, one of the benefits of the Chapter 11
process is that the company's obligations to customers and
suppliers made after the filing are treated more favorably under
the Bankruptcy Code than similar obligations made before the
filing.
In conjunction with the Chapter 11 filing, Loral will file
shortly a motion with the court seeking approval of procedures
for the sale of the six North American satellites. In accordance
with these procedures, the proposed transaction with Intelsat
will be subject to higher and better offers. The company has also
filed other customary "First Day Motions" to support its
employees, customers and suppliers. The company expects that
employees will continue to receive their customary salaries and
benefits. Suppliers will be paid under normal terms for goods and
services provided on or after the petition filing date of July
15, 2003. Loral Tuesday also began a similar legal proceeding in
Bermuda, where it is incorporated.
"We regret deeply the impact that a Chapter 11 filing will have
on many of our stakeholders - particularly our shareholders, who
have been so patient and loyal during these turbulent times," Mr.
Schwartz said. "Loral's senior management has worked ceaselessly
to try to avoid such a filing, but we have reluctantly concluded
that the asset sale and debt reduction could only be achieved
through the Chapter 11 reorganization process. We intend to move
through this process as quickly as possible."
Loral Space & Communications is a satellite communications
company. It owns and operates a global fleet of
telecommunications satellites used by television and cable
networks to broadcast video entertainment programming, and by
communication service providers, resellers, corporate and
government customers for broadband data transmission, Internet
services and other value-added communications services. Loral
also is a world-class leader in the design and manufacture of
satellites and satellite systems for commercial and government
applications including direct-to-home television, broadband
communications, wireless telephony, weather monitoring and air
traffic management.
LORAL SPACE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Lead Debtor: Loral Space & Communications Ltd.
c/o Loral SpaceCom Corporation
600 Third Avenue
New York, New York 10016
Bankruptcy Case No.: 03-41710
Debtor affiliates filing separate chapter 11 petitions:
Entity Case No.
------ --------
Loral SpaceCom Corporation 03-41709
Loral Space & Communications Corporation 03-41711
Loral Satellite, Inc. 03-41712
Space Systems/Loral, Inc. 03-41713
Loral Communications Services, Inc. 03-41714
Loral Ground Services, L.L.C. 03-41715
Loral Orion, Inc. 03-41716
Loral CyberStar Global Services, Inc. 03-41717
Loral CyberStar GmbH 03-41718
Loral CyberStar Japan, Inc. 03-41719
Loral CyberStar Services, Inc. 03-41720
Loral CyberStar Holdings, L.L.C. 03-41721
Loral CyberStar International, Inc. 03-41722
Loral Asia Pacific Satellite (HK) Limited 03-41723
SS/L Export Corporation 03-41724
CyberStar, L.P. 03-41725
CyberStar, L.L.C. 03-41726
Loral Skynet Network Services, Inc. 03-41727
Loral Licensing, Ltd. 03-41728
Type of Business: The Debtor, together with its affiliates, is
one of the world's leading satellite
communications companies with substantial
activities in satellite-based communications
services and satellite manufacturing.
Chapter 11 Petition Date: July 15, 2003
Court: Southern District of New York (Manhattan)
Judge: Robert D. Drain
Debtors' Counsel: Stephen Karotkin, Esq.
Lori R. Fife, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
Tel: (212) 310-8350
Fax: (212) 310-8007
Total Assets: $2,654,000,000
Total Debts: $3,061,000,000
Debtors' 20 Largest Unsecured Creditors:
Entity Nature Of Claim Claim Amount
------ --------------- ------------
Deutsche Bank Trust Co. Public Bond Debt $613,000,000
Americas Corporate Trust &
Agency Services, as trustee
for holders of 10% Sr Notes
due 2006 issued by Loral
Orion, Inc.
Susan Johnson
280 Park Avenue
MS-NYC03-0914
New York, NY 10017
Tel.: 212-454-4225
Fax: 212-454-2223
Bank of New York, as Public Bond Debt $350,000,000
trustee for holders of
9.5% Sr Notes due 2006
issued by Loral Space
& Communications Ltd.
Attn: Robert Hirsch
101 Barclay Street, 21W
New York, NY 10286
Tel.: 212-815-3192
Fax: 212-815-5704
Deutsche Bank Trust Co. Public Bond Debt $49,000,000
Americas Corporate Trust
& Agency Services, as
trustee for holders of
12.5% Sr Discount Notes
due 2007 issued by Loral
Orion, Inc.
Susan Johnson
280 Park Avenue
MS-NYC03-0914
New York, NY 10017
Tel.: 212-454-4225
Fax: 212-454-2223
Deutsche Bank Trust Co. Public Bond Debt $37,000,000
Americas Corporate Trust &
Agency Services, as trustee
for holders of 11.25% Sr
Notes due 2007 issued by
Loral Orion, Inc.
Susan Johnson
280 Park Avenue
MS-NYC03-0914
New York, NY 10017
Tel.: 212-454-4225
Fax: 212-454-2223
Alenia Spazio SpA Trade Debt $21,268,905
Carlo Alberto Penazzi
Sede Via Saccomuro 24 Rome,
Italy 00131
Tel: 06-4151-4387
Fax: 06-4151-2627
Alenia Marconi Systems
(ASI), Inc.
(U.S. Affiliate)
James Freney
11300 W. 80th Street
Overland Park, KS 66214
Tel: 913-495-2600
Fax: 913-492-0870
Alcatel Trade Debt $20,258,906
Yves De -La Serre or
Sylvia Lassery
5 rue Noel Pons, 92737
Nanterre, France
Tel: 335-3435-5247
Fax: 335-3435-5603
Alcatel Americas
(U.S. Affiliate)
Mike Quigley
3400 Plano Pkwy
Plano, TX
Tel: 972-519-3000
Fax: 972-519-4122
Sea Launch Company, LLC Trade Debt $13,010,000
Robert Stonick/James Maser
One World Trade Center
Suite 950
Long Beach, CA 90831-0950
Tel.: 562-499-4765
Fax: 562-499-4755
DASA (Astrium GmbH) Trade Debt $7,409,214
Andreas Walther
Ludwig Bolkow Allee, Tor 2
Gebaude 5.1 81663 Munich,
Germany
Tel: 4989-6072-3968
Fax: 4989-6072-5538
Astrium North America, Inc.
(U.S. Affiliate)
1020 Bay Area Blvd.
Houston, TX 77058
Tel: 281-461-8409
Fax: 281-461-9158
Lockheed Martin Corp Trade Debt $3,775,043
Marika L. Long
1111 Lockheed Martin Way
Sunnyvale, CA 94089
Tel.: 408-742-1128
Fax: 408-756-9353
Hyundai Trade Debt $2,484,917
Taek Jin Sa
c/o Hynix Semiconductor, KPO
1010 Ichon, Korea
Tel: 82-2-3459-5498
Fax: 82-2-3459-5513
Hyundai Merchant Marine
(America) Co., Ltd
(U.S. Affiliate)
879 W. 190th St., 7 Fl.
Gardena, CA 90248
Tel: 310-515-2822
Fax: 310-516-1323
Raytheon Company Trade Debt $2,004,111
Stephen Martinez
75 Coromar Drive
Goleta, CA 93317
Tel.: 805-562-7224
Fax: 805-562-7740
Boeing Electron Dynamic, Trade Debt $1,902,183
The Boeing Company
Chris Stephens
3100 West Lomita Blvd
Torrance, CA
Tel.: 310-517-5200
Fax: 310-517-5055
L-3 Communications Trade Debt $1,496,385
Holdings, Inc.
Joe Langille
107 Woodmere Road
Folsom, CA 95630
Tel.: 916-351-4500
Fax: 916-351-4550
Aeroflex Laboratories Inc. Trade Debt $1,398,148
John E. Buyko
35 South Service Road
Plainview, NY 11803
Tel.: 516-694-6700
Fax: 516694-6771
Mitsubishi Electric Trade Debt $1,274,468
Yutaka Kazekami
2-2-3 Chome Marunouchi
Chiyoda Ku, Tokyo, Japan
Tel: 81-3-3218-3496
Fax: 81-3-3218-3314
MELCO (Mitsubishi
International Corp)
(U.S. Affiliate)
Palo Alto Branch
850 Hansen Way,
Suite 100
Palo Alto, CA 94304
Tel: 650-494-1545
Fax: 650-493-0318
TRW Astro Aerospace Corp Trade Debt $1,115,000
Chris Yamada
6384 Via Real
Carpinteria, CA 93013
Tel: 805-684-6641
Intelsat LLC Trade Debt $550,000
Bette Sheid
3400 Int'l Drive NW
Washington, DC 20008-3098
Tel: 202-944-7442
Fax: 202-944-7266
Honeywell Corp Trade Debt $512,525
Dr. Deborah Bamhart
13350 US Highway 19 North
Clearwater, FL 33764
Tel: 727-539-3463
Fax: 727-539-2324
SES Americom, Trade Debt $481,028
an SES Global Company
Rick Avery/Richard Watson
4 Research Way
Princeton, NJ 08540-6684
Tel: 609-987-4575/4171
Fax: 609-987-4080/4196
Eagle Picher Technologies, Trade Debt $430,547
Inc.
Lou Lupo
P.O. Box 47
Joplin, MO 64802
Tel: 417-623-8000 x 405
Fax: 417-623-0233
(Troubled Company Reporter - July 16, 2003, Vol. 7 Issue No. 139)
===========
B R A Z I L
===========
AES CORP.: Fitch Affirms Ratings; Revises Outlook to Stable
-----------------------------------------------------------
Fitch Ratings has affirmed the existing ratings of The AES Corp.
(AES) as follows:
AES
--Senior secured bank debt 'BB';
--Senior secured notes collateralized by first priority lien
'BB';
--Senior unsecured debt 'B';
--Senior and junior subordinated debt 'B-';
AES Trust III
-- Trust preferred convertibles 'CCC+'.
AES Trust VII
-- Trust preferred convertibles 'CCC+'.
Fitch has also assigned a 'B+' rating to AES' recently raised
$1.8 billion junior secured notes collateralized by a second
priority lien. The collateral package pledged to AES' secured
debts consists of all of the capital stock of AES' material
domestic subsidiaries and 65% of the capital stock of AES'
foreign subsidiaries. In addition, Fitch revised AES' Rating
Outlook to Stable from Negative.
The newly assigned 'B+' rating of AES' junior secured debt
reflects the strong residual asset coverage available for the
holders of these instruments, after considering the structurally
senior claims of AES subsidiaries' individual debts and higher
ranking claims of AES Corp's parent-level first priority senior
secured bank debt and senior secured notes. However, Fitch notes
that the benefit of the junior secured position is offset in part
by the right AES has retained to prepay other more junior classes
of debts before repaying the new junior secured debt. AES has the
option to pay down other higher coupon senior unsecured,
subordinated, or trust preferred convertible debts ahead of the
junior secured notes.
The rating affirmation of other debt classes reflects the
expectation that AES will complete the recently announced $1
billion senior secured bank credit facilities (New Secured Bank
Facilities) by the end of this month and use the proceeds to
redeem the outstandings under the existing senior secured bank
facilities (Old Secured Bank Facilities) closed in December 2002.
The proposed new secured bank facilities will contain similar
terms and conditions compared to those governing the Old Secured
Bank Facilities, including the cash sweep mechanism from asset
sales. As a result, Fitch expects to rate the New Secured Bank
Facilities 'BB'.
The revision of the Outlook to Stable from Negative reflects the
improvement in AES' financial position since Fitch's last review
of the company in February 2003. Over the past six months, AES
has executed $990 million of planned assets sales, issued $340
million of equity and raised $1.8 billion of private placements,
and it has used proceeds from these sources to repurchase debt at
a discount and pay down bank and public market debt. As a result,
AES has reduced gross debt by over $400 million during the
financial year to June and expects this amount to grow to over $1
billion by the end of 2003. At the same time, AES has extended
its maturity schedule with no major maturities until December
2005 and with the anticipated completion of the New Bank Credit
Facility, would extend this further to 2007-2008. Interest
expense is also expected to decrease meaningfully with lower
interest rate debt refinancing and debt reduction, a key factor
given thin interest coverage at the parent level.
Offsetting the improvements in liquidity and leverage above is
potential volatility in AES parent operating cash flow (POCF).
With gradual improvement of the economic situation in Latin
America, the company expects slight and moderate improvement in
South America and the Caribbean region, respectively, in the next
two years. Fitch's ratings anticipate only modest recovery in
these areas compared to current performance.
Overall, AES' credit metrics are expected to improve as the
impact of lower interest costs and a degree of deleveraging feed
through, although they are anticipated to remain consistent with
the 'B' category. Parent Debt to POCF ratio is projected to
decline to the 6.0-7.0 times (x) range with POCF to Interest
ratio approaching 2.0x in the next year. AES is also projected to
have sufficient liquidity that is consistent with its rating
category.
The AES Corp., founded in 1981, is among the world's largest
power developers. It generates and distributes electricity and is
also a retail marketer of heat and electricity. AES owns or has
an interest in 182 plants, with more than 63,000 megawatts, in 31
countries and also distributes electricity in 11 countries
through 21 distribution companies.
CONTACT: Mona Yee, CFA +1-212-908-0557, New York
Ellen Lapson, CFA +1-212-908-0504, New York
MEDIA RELATIONS: James Jockle +1-212-908-0547, New York
ARACRUZ CELULOSE: Moody's Reduces Credit Outlook To Negative
------------------------------------------------------------
Moody's Investors Service lowered its credit outlook on Aracruz
Celulose SA, Latin America's biggest pulp exporter, to negative
from stable, reports Bloomberg. The agency is concerned that the
Company's purchase of Klabin SA's Riocell unit and other
investments could leave it short of cash.
According to Moody's, the US$610.5-million acquisition of Riocell
and its investments in Veracel Celulose SA, a joint venture with
Finland's Stora Enso Oyj, will reduce Aracruz's liquidity and
operating margin.
"Future negative rating actions could be prompted by below-
expected-levels of liquidity, or by pressure on operating margin
resulting from Aracruz's ongoing major expansion of its
production capacity through acquisitions and investments,"
Moody's said in its report.
Moody's said the Company likely will need to refinance half of
about US$300 million it borrowed to finance exports to maintain
"comfortable" liquidity after amortizing short term debt of
US$766 million as of June 30.
Bloomberg recalls that Aracruz recorded a 95% plunge in net
profit in the second quarter to US$2.2 million, after the Company
recorded tax losses on foreign exchange transactions.
Moody's confirmed its ratings for Aracruz's debt.
Aracruz Celulose S.A., with operations in the Brazilian states of
Espirito Santo, Bahia, Minas Gerais and Rio Grande do Sul, is the
world's largest producer of bleached eucalyptus kraft pulp. The
Aracruz pulp is used to manufacture a wide range of consumer and
value-added products, including premium tissue and high quality
printing, writing and specialty papers.
CONTACT: Aracruz Celulose SA
Cam. Barra do Riacho, s/n - Km 25
Barra do Riacho
29197-000 Aracruz - RJ
Brazil
Phone: +55 27 3270-2442
Fax: +55 27 3270-2590
Home Page: http://www.aracruz.com.br
Contact:
Carlos A. Lira Aguiar, Chairman
ELETROPAULO METROPOLITANA: To Spend $69M on New Connections
-----------------------------------------------------------
Sao Paulo distributor Eletropaulo is seeing increasing demand
from signing new customers this year. In this light, the Company
will invest approximately BRL200 million (US$69mn) this year to
connect these customers, Eletropaulo president Stephen Clancy
told Business News Americas.
Mr. Clancy was speaking after meeting with Sao Paulo city mayor
Marta Suplicy to unveil a BRL10-million (US$3.49mn) investment
program in public lighting.
Meanwhile, the Company president also made comments regarding the
recent price revision awarded by power regulator Aneel. According
to Mr. Clancy, the Company "still has some disagreements" over
the methodology used, which are being discussed with the
regulator directly and through the distributors' association,
Abradee.
Most of these discussions are unlikely to affect this year's
revision and would have more of an impact on future price
revisions this year, he said.
Nevertheless, this year's price revision is likely to be
"tweaked," as some of the factors were based on "conservative
estimates" by Aneel that have yet to be to be confirmed, he said.
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
VARIG: Court Ruling Returns Chairman Position to Martins
--------------------------------------------------------
Carlos Luiz Martins regained his seat Thursday as chairman of the
board of the Ruben Berta Foundation, the charity that controls
Brazil's flagship airline Viacao Aerea Riograndense (Varig).
According to Reuters, his reinstatement came after a state
appeals court in Rio de Janeiro overturned a lower court ruling
on Wednesday, effectively removing the obstacle to the Varig-TAM
merger.
Mr. Martins was forced to step down briefly earlier this month
after his predecessor Yutaka Imagawa won an injunction allowing
him and other deposed board members who had opposed Varig's plans
to merge with its rival TAM to regain their seats.
According to Reuters, the ruling, which is likely to be appealed,
comes just one day after the Ruben Berta Foundation -- still on
Imagawa's watch -- threatened to block the merger, saying it
wanted a bigger stake in the new airline.
The threat angered the head of Infraero, Brazil's airport
authority and a Varig creditor, who urged the government to step
up pressure on the carrier to merge with TAM.
Brazil's new left-leaning government has been pushing Varig to
merge with TAM as part of a broader strategy to overhaul the
country's ailing airline industry.
CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.)
Rua 18 de Novembro No. 800, Sao Joao
90240-040 Porto Alegre,
Rio Grande do Sul, Brazil
Phone: (51) 358-7039/7040
(51) 358-7010/7042
Fax: +55-51-358-7001
Home Page: www.varig.com.br/english/
Contacts:
Dorival Ramos Schultz, EVP Finance and CFO
E-mail: dorival.schultz@varig.com.br
Investor Relations:
Av. Almirante Silvio de Noronha,
n 365-Bloco "B" - s/458 / Centro
Rio de Janeiro, Brazil
TAM
Daniel Mandelli Martin, President
Buenos Aires
Tel. (54) (11) 4816-0001
URL: www.tam.com.br
=========
C H I L E
=========
SANTA ISABEL: Cencosud Lowers Offer For Ahold's 97% Stake
---------------------------------------------------------
Chilean retailer Cencosud reduced its offer to buy Royal Ahold
NV's 97% stake in the Santa Isabel supermarket chain. A Cencosud
executive said the company would pay about US$100 million for the
stake, a third less than originally estimated, Reuters relates.
"The approximate total (for the deal) will be around $100
million," Cencosud Chief Executive Laurence Golborne told
reporters, without explaining why the price suddenly dropped.
The deal was initially expected to close in April but was delayed
after Ahold revealed a devastating accounting scandal that saw
profits overstated by more than US$900 million and triggered a
legal probe that touched on Latin American assets. Santa Isabel's
2002 accounts were delayed because auditors did not approve them.
Ahold is in the process of divesting Latin American assets to cut
debt. Mr. Golborne said the deal would be closed as soon as Santa
Isabel is de-listed from the Santiago Stock Exchange.
By taking over Santa Isabel's 77 stores, which hold a 9.5% market
share, Cencosud will become the second-largest player in the
domestic market behind D&S SA (DYS), which holds 30%.
Ahold is still looking for buyers of Santa Isabel's stores in
Paraguay and Peru, as well as for larger units in other countries
of the region, including Argentine Disco.
===============
C O L O M B I A
===============
AVIANCA: Court Grants 60-Day Reprieve on Plan Filing
----------------------------------------------------
Colombian airline Avianca received a 60-day extension to file a
reorganization plan, according to Reuters News. Recently, the
airline asked for a 90-day extension beyond its original Friday
deadline, but a U.S. bankruptcy court judge ruled that only 60
days would be given.
The Company asked for the extension citing the size complexity of
the case, among other reasons. Under U.S. law, corporations are
given 120 days after a bankruptcy petition to file a
reorganization plan with the courts, said Reuters. Filing
competing plans during that time is not allowed.
Avianca and its U.S. subsidiary filed for Chapter 11 bankruptcy
protection in March after high fuel costs and low demand brought
negative results. The political and economic crisis in Venezuela
and Argentina, as well as the guerilla war in Colombia
contributed to the airline's downfall.
===================================
D O M I N I C A N R E P U B L I C
===================================
COGENTRIX: DR Government Makes $41M Payment
-------------------------------------------
The government of the Dominican Republic paid the Cogentrix power
facility in San Pedro de Macoris on Friday a sum of US$41
million, the Listin Diario reports, citing the Superintendent of
Power, George Reinoso.
The payment eliminated one of the obstacles to starting
renegotiation talks on the contract with the 300-megawatt
facility and putting it back into operation.
But while the authorities would like to get the facility back
into operation, the current contract contains several clauses
that are considered to be highly onerous to the country.
It was for this reason that the government had preferred to pay
the generating facility US$3.8 million a month while it remained
shut down, rather than pay for electricity at over-inflated
rates.
=============
E C U A D O R
=============
* Ecuador To Offer $2.75M In Seized Bank Debt
---------------------------------------------
Ecuador will auction Thursday US$2.75 million in restructured
debt from seven seized banks. The move, according to Dow Jones,
follows last week's failed attempt to auction the debt.
Ecuador last week failed to attract any takers after the base
price was suddenly increased. Thursday's auction will open with a
20% reduction in the base price, which is now set at US$2
million.
The sale of the debt is part of Ecuador's move to expedite the
fulfillment of conditions for the second disbursement under its
International Monetary Fund aid program. The Fund's board is
poised to meet in the days ahead to discuss the approval of the
US$42 million disbursement.
=============
J A M A I C A
=============
AIR JAMAICA: Adamant on Halting Negril Route
--------------------------------------------
Air Jamaica appears resolute on its decision to exit Negril by
the end of the month. According to a report by the Jamaica
Gleaner, civic groups are calling for the airline to reconsider
its decision but the airline seems to have turned a deaf ear to
the calls.
Leo Lambert, corporate communications director for the
ATL/Sandals group, of which Air Jamaica Express is a subsidiary,
said it would be unprofitable for the airline to continue its
intra-island trips to Negril, as the airline was currently
operating at only 20% - 30% of its carrying capacity. He said
continued operations on the Negril route would only compromise
the viability of the airline.
While the airline's management indicated that they were open for
discussions, they said the Company would only review its position
"if market conditions" in the travel industry improve.
===========
M E X I C O
===========
GRUPO IUSACELL: Amendment, Waiver Extended Again to August
----------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL)(the "Company")
previously publicly announced that its subsidiary, Grupo Iusacell
Celular, S.A. de C.V. ("Iusacell Celular"), received an
additional extension of the temporary Amendment and Waiver (the
"Amendment") of certain provisions and defaults under its US$266
million Amended and Restated Credit Agreement, dated as of March
29, 2001 (the "Credit Agreement").
As extended, the Amendment is now scheduled to expire on August
14, 2003. The Amendment contains covenants, expiring on August
14, 2003, which restrict Iusacell Celular from making any loans,
advances, dividends or other payments to the Company and require
a proportionate prepayment of the loan under the Credit Agreement
if Iusacell Celular makes any principal or interest payments on
any of its indebtedness for borrowed money, excluding capital and
operating leases.
Accordingly, Iusacell Celular has determined that, pending
agreement with its lenders on a restructuring plan, it will not
make the US$7.5 million interest payment due on July 15, on its
10% bonds due 2004. Iusacell Celular has a 30-day period after
July 15 within which to make the interest payment. If the
interest payment is not made within the 30-day period, an event
of default would occur under the Indenture governing the bonds,
and the bondholders would have the right to declare the principal
of and accrued interest under the bonds due and payable or take
other legal actions specified in the Indenture, as they deem
appropriate.
About Iusacell
Grupo Iusacell, S.A. de C.V. (Iusacell)(NYSE:CEL)(BMV:CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.
CONTACT: Grupo Iusacell S.A. de C.V.
Mexico City
Russell A. Olson
Phone: 011-5255-5109-5751
Email: russell.olson@iusacell.com.mx
Carlos J. Moctezuma
Phone: 011-5255-5109-5780
Email: carlos.moctezuma@iusacell.com.mx
GRUPO IUSACELL: Appoints Jose Luis Riera as CFO
-----------------------------------------------
Movil Access, S.A. de C.V., a Mexican telecommunications service
provider, subsidiary of Biper, S.A. de C.V. (BMV: MOVILAB), a
Grupo Salinas company, announced Wednesday that Gustavo Guzman
will appoint Jose Luis Riera as company CFO of Grupo Iusacell.
The appointment will become effective upon closing of the tender
offers commenced by Movil@ccess, which is currently scheduled to
occur on July 29, 2003.
Mr. Riera is currently General Director of Corporate Finance for
Grupo Salinas, overseeing several financial transactions for the
different Grupo Salinas companies.
"Jose Luis brings invaluable corporate finance experience and
negotiating skills to Grupo Iusacell," said Gustavo Guzman,
designed CEO of Grupo Iusacell. "We are building a highly
qualified financial team for the company; this will prove to be
of essence for the success of the company once we assume formal
control in less than two weeks."
Mr. Riera has been with Grupo Salinas for over five years, where
he has occupied several key financial positions. Past positions
include general director of corporate finance at Grupo Elektra,
and company CFO of Unefon, a cellular operator.
Mr. Riera holds a BA in Industrial Engineering from Universidad
Panamericana, and an MBA in Executive Management from the
Instituto Panamericano de Alta Direccion de Empresas (IPADE).
GRUPO IUSACELL: Creditors' Move May Block Movil@access Buy
----------------------------------------------------------
Fintech Advisory of New York and UBS Securities LLC on Friday
offered to buy Grupo Iusacell for US$15 million, according to the
Wall Street Journal. The offer is 50% more than what Mexican
wireless company Movil@ccess SA, a telecommunications company
controlled by Ricardo Salinas Pliego, agreed to pay for it.
Nevertheless, Verizon Communications Inc. and Vodafone Group Plc,
which together control more than 70% of Iusacell, on Monday
rejected the higher bid, says newspaper. Verizon has already
tendered its shares and doesn't intend to withdraw them, the
report says, citing spokesman Steve Marcus.
However, David Martinez an executive with Fintech Advisory
indicated that the creditors, who control about US$1 billion in
Iusacell debt, plan to increase their offer to keep the Company
out of Salinas Pliego's hands, the Journal relates.
ROHN INDUSTRIES: PWC Resigns as Independent Accountant
------------------------------------------------------
ROHN Industries, Inc., (Nasdaq: ROHNE), (the "Company") a
provider of infrastructure equipment to the telecommunications
industry, announced Wednesday that PricewaterhouseCoopers LLP
("PricewaterhouseCoopers") has resigned as the independent
accountant of the Company. At this time the Company has not
retained another independent accountant, but continues its
search. For further information on the resignation of
PricewaterhouseCoopers, please see the Form 8-K filed by the
Company with the Securities and Exchange Commission Wednesday.
On May 16, 2003, the Company announced that Alan Schwartz
resigned as Chairman of the Board of Directors, and also
indicated his intention to resign as a member of the Board of
Directors in the near future. On Wednesday, the Company has
announced that Mr. Schwartz has formally submitted his
resignation as a member of the Board of Directors of the Company.
Mr. Schwartz, a professor of law, has indicated that his academic
commitments will prevent him from acting as a director of the
Company. The Company would like to thank Mr. Schwartz for his
contributions and hard work during his term. The Company will
continue to look for a replacement for Mr. Schwartz.
The Company is a manufacturer and installer of telecommunications
infrastructure equipment for the wireless industry. Its products
are used in cellular, PCS, radio and television broadcast
markets. The Company's products include towers, poles, related
accessories and antennae mounts. The Company also provides design
and construction services. The Company has a manufacturing
location in Frankfort, IN along with offices in Peoria, IL and
Mexico City, Mexico.
===============
P A R A G U A Y
===============
MULTIBANCO: Deficits Double Upon Further Financial Review
---------------------------------------------------------
A US$21-million deficit at intervened Paraguayan bank Multibanco
was discovered by the country's central bank, Business News
Americas reports, citing a central bank spokesperson. When
Multibanco was intervened last month, the estimated deficit was
about US$10 million. However, the source said that the figure
rose when the central bank discovered that Multibanco reportedly
transferred large amounts of deposits to an offshore bank with 50
related fictitious companies.
The central bank is seeking to recover missing funds by
liquidating assets of the bank's owners, who are in prison. So
far, the government has recovered some US$5.6 million last month,
after it sold the bank's credit card portfolio to Interbanco,
Sudameris and local finance companies Atlas and Familiar.
=================
V E N E Z U E L A
=================
SIDOR: Exec Reports 80% Rise In Exports This Year
-------------------------------------------------
A spokesperson from Venezuela's largest steelmaker Sidor
announced that the Company has boosted exports by some 80% thus
far this year. That raises the total to more than 2.3Mt sold in
over 40 countries, compared to the same year-ago period, relates
Business News Americas.
The unnamed official attributed the increase to record
production, competitive personnel and information available in
real time, while protecting the environment.
Meanwhile, the official also revealed that Sidor is embarking on
a new stage of expansion following last month's financial
restructuring. According to him, the Puerto Ordaz-based company
plans to invest more than US$300 million over five years in
technology and environmental projects.
In June, Venezuela's state development bank BANDES, state heavy
industry corporation CVG, 25 private creditor banks and the
Amazonia consortium of steelmakers agreed on terms to restructure
Sidor's debts.
Business News Americas reports that the restructuring will
require an investment by the foreign companies comprising
Amazonia of US$133.5 million, plus the capitalization of part of
the debt Sidor has with the state.
The Amazonia consortium is made up of Latin American steel
companies Sivensa (Venezuela), Siderar (Argentina), Usiminas
(Brazil), Tamsa and Hylsamex (both Mexico), and acquired 70% of
Sidor from the state in 1997 for US$2.3bn. The restructuring will
bring Amazonia's stake in the Company to just 59.7% while CVG
from 30% to 40.3%.
CONTACT: SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
Edificio General, Piso 9
Avda. La Estancia
Chuao, Caracas 1060
Venezuela
Tel: (582) 902 3800/3917/3955
Fax: (582) 993 2930
Home Page: www.sidor.com.ve/
* Venezuela Moves To Extend Debt Payments
-----------------------------------------
In an effort to stretch out debt payments to cope with a loss of
about US$4 billion in revenue from a strike in December and
January, the Venezuelan government will embark on a debt swap
offer Thursday.
According to Bloomberg, Venezuela will offer investors VEB700
billion of bonds maturing after 2006 in exchange for debt coming
due in the next two months to defer payments and fund government
spending.
The government will offer bonds that mature in two-and-a- half
years to three-and-a-half years with an interest rate between
25.95 percent and 31.80 percent in exchange for bonds coming due
this month and next with rates of 25.63 percent and 26.18
percent, the central bank said on its Web site.
Results of the swap will be announced Friday, the bank said.
Venezuela has about US$22.4 billion in international debt and
US$7.4 billion in domestic debt.
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