/raid1/www/Hosts/bankrupt/TCRLA_Public/030819.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
Tuesday, August 19, 2003, Vol. 4, Issue 163
Headlines
A R G E N T I N A
AMPRI: Claims Deadline Set to Expire
AUTOPISTAS DEL SOL: Seeks Court Approval of APE
BERKELIA: To Hold Organizational Meeting Today
CENTRO GRAFICA: Last Day of Claims Check Today
COMUNICACIONES GRADOX: Receiver Ends Verifications Today
EASA: ICSID Accepts Case Against Government
EL CORRALON: Informative Assembly Slated for Today
FARMACIA NUEVA: Informational Meeting Scheuled for Today
INDUSTRIAS NAKOS: Credit Verifications Ends Today
LM COMUNICACIONES: Credit Verification Process Ends Today
MANTRA: Credit Authentication Deadline Looms
MULTICANAL: Board Approves Start of APE Judicial Proceedings
NICOLAS SAPONARA: Proof of Claims Due Today
N.S.C.: Files "Concurso Preventivo" Motion
SOUTHERN WINDS: Board Admits Serious Financial Trouble
B E R M U D A
LORAL SPACE: Sells Satellite Rights to Intelsat
LORAL SPACE: Reports Second Quarter 2003 Results
MUTUAL RISK MANAGEMENT: Bar Date Set for Reorganization Plan
TYCO INTERNATIONAL: Dept of Labor Initiates Own Probe
B O L I V I A
ANDINA: Repsol To Cut Oil, Gas Supplies To Domestic Market
B R A Z I L
CPFL: Losses Widen in 1H03
C O L O M B I A
COMESA: Ends July with Sales of $590,000
J A M A I C A
AIR JAMAICA: Reaches Shareholders Agreement With Government
T R I N I D A D & T O B A G O
BWIA: Shareholders Choose Three New Board Members at AGM
V E N E Z U E L A
PDVSA: President Mulls Splitting Company Into Two Divisions
- - - - - - - - - -
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A R G E N T I N A
=================
AMPRI: Claims Deadline Set to Expire
------------------------------------
Today, August 19 is the last day for the verification of credit
claims for the bankruptcy of Argentine medical services company
Ampri S.A.. The receiver, Mr. Hugo Trejo, will now prepare the
required individual reports.
Dr. Bavastro, the insolvency judge in Buenos Aires' Court No. 17,
handles the case. Dr. Vanoli, clerk No. 34 aids the court on the
process. The Troubled Company Reporter - Latin America earlier
reported that the court granted a request for the Company's
bankruptcy filed by Universal Asistense S.A., to whom the Company
owes $28,184.
CONTACT: AMPRI S.A.
Azcnuenaga No. 1507
Buenos Aires
Mr. Hugo Trejo
2nd Floor
No. 744 Cordoba Avenue
Buenos Aires
AUTOPISTAS DEL SOL: Seeks Court Approval of APE
-----------------------------------------------
On August 8, 2003, Argentine toll concessionaire Autopistas del
Sol (Ausol) requested the court approval of the out-of-court
agreement (APE) subscribed to by the majority of its creditors.
The Company managed to obtain the required percentage of
acceptances: absolute majority (50% plus one) of creditors
representing at least two thirds of the principal amount of debt.
Now judge Rafael Trebino Figueroa will verify these majorities
have in fact been obtained and that assets or liabilities have
not been overrated. Approval in a term of 90 days is currently
predicted by Ausols financial director, Guillermo Diaz.
An APE is an insolvency remedy available to debtors under the
Argentine Bankruptcy Law, consisting of an out-of-court agreement
between a debtor and a certain percentage of its unsecured
creditors that is submitted to court approval. In order to obtain
judicial approval of an APE, a debtor must have the support of a
majority of its unsecured creditors accounting for at least two
thirds of its total outstanding unsecured indebtedness. Once an
APE receives court approval, it rules for all unsecured creditors
of the relevant debtor, whether or not they have participated in
the negotiation or execution of the agreement. So far, no APE has
obtained court approval, which means there is still no
jurisprudence on this mechanism.
Autopistas del Sol is a company that has been awarded the
concession for the enhancement, extension, remodeling,
maintenance and administration of the Northern Access Highway
System, main access highway to the City of Buenos Aires, and of
the General Paz Beltway, a 24-km stretch free of toll which has 6
lanes corresponding to the beltway surrounding the Federal
Capital City from Rio de la Plata up to Riachuelo.
In May 2003, the Company presented a proposal to restructure its
US$ 490 million debt through an APE. On the one hand, it launched
an offer to apply up to US$ 18 million to repurchase its 9.35%
Series A Senior Notes due 2004 and 10.25% Series B Notes due 2009
and other unsecured financial indebtedness for cash, through a
modified Dutch auction. The cash tender offer expired on July 24
and Ausol accepted for purchase US$ 8.12 million principal amount
of debt at a purchase price of US$ 380 per US$ 1,000 principal
amount of debt. The cash payment required to complete the cash
tender offer was around US$ 3.08 million.
On the other hand, the proposal included a bond swap with two
alternatives: a par-bond (with no write-off) with a 10-year term
and a step-up interest rate; and a 5-year discount-bond with a
40% cut and a 7% interest rate. The final results of this part
have not been announced yet.
BERKELIA: To Hold Organizational Meeting Today
----------------------------------------------
The informative assembly for the reorganization of Berkelia S.A.
will be held today, according to an earlier report by local news
portal Infobae. Court No. 9 of Buenos Aires has jurisdiction of
the case.
Berkelia is undergoing reorganization after its motion for
"Concurso Preventivo" was approved by the court. Infobae,
however, did not reveal who was the designated receiver for the
case.
CENTRO GRAFICA: Last Day of Claims Check Today
----------------------------------------------
The bankruptcy of Centro Grafica S.R.L. enters a new phase today.
The receiver, Mr. Reynaldo A. Casagrande, will end the credit
verification process today. He will now prepare the required
individual reports, which are due for submission on September 30
this year. The court requires the general report to be filed on
November 12.
The Company was declared bankrupt by Buenos Aires' Court No. 8,
according to an earlier report from local news source Infobae.
The city's Clerk No. aids the court.
CONTACT: Centro Grafica S.R.L.
Reconquista 629
Buenos Aires
Reynaldo A Casagrande
Lavalle 1528
Buenos Aires
COMUNICACIONES GRADOX: Receiver Ends Verifications Today
--------------------------------------------------------
Ms. Linda Elsa Albite, receiver for the bankruptcy of Buenos
Aires-based Comunicaciones Gradox S.A., will end the credit
verification process today. The Troubled Company Reporter - Latin
America earlier reported that the Company was declared bankrupt
by the city's Court No. 1. A representative from the city's Clerk
No. 1 aids the court on the matter.
CONTACT: Ms. Linda Elsa Albite
Tacuari 119
Buenos Aires
EASA: ICSID Accepts Case Against Government
-------------------------------------------
Argentine energy holding company Easa announced that the World
Bank's International Center for the Settlement of Investment
Disputes (ICSID) accepted on August 12 the case it and its parent
French power company EDF lodged against the Argentine government,
relates Business News Americas. In a statement to the Buenos
Aires stock market, Easa said the Company and its parent sued the
government for freezing public utility rates and devaluating the
local currency.
According to the report, EDF and Easa joined about 20 companies
that have presented their complaints to ICSID seeking about US$3
billion compensation for the impact of the rates freeze and the
devaluation of the peso on US dollar-denominated debts. Despite
government announcements that rates could be increased as early
as October, President Nestor Kirchner has said that rates will
not be increased until the end of 2004.
A report released earlier by the Troubled Company Reporter -
Latin America suggested that Easa is struggling to meet debt
obligations. Local distributor Edenor, upon which Easa derives
its sole income, has seen its ability to generate funds
deteriorate due to regulatory changes. Both Easa and Edenor are
currently negotiating with creditors to restructure their
respective debts.
Easa owns 51% of Edenor, which has over 2.2 million clients in
the northern part of capital city Buenos Aires.
EL CORRALON: Informative Assembly Slated for Today
--------------------------------------------------
The informative assembly for the reorganization of El Corralon
S.R.L. will be held today, August 19. Court No. 9 of Cutral Co
handles the Company's case, according to a local source, without
revealing the receiver assigned to the case. The source did not
mention the time and venue of the assembly.
The reorganization started when the Company's motion for
"Concurso Preventivo" received court approval. A receiver was
assigned to verify creditors' claims and file the necessary
reports.
FARMACIA NUEVA: Informational Meeting Scheuled for Today
--------------------------------------------------------
The reorganization of Buenos Aires-based company Farmacia Nueva
Vernet S.A. proceeds with an informative assembly today. Local
news source Infobae indicated that Court No. 9 of Buenos Aires
handles the Company's case. The reorganization started with the
approval of the Company's "Concurso Preventivo" motion. However,
Infobae did not reveal the name of the receiver assigned to the
case.
INDUSTRIAS NAKOS: Credit Verifications Ends Today
-------------------------------------------------
The credit verification process for the bankruptcy of Industrias
Nakos ends today, August 19, 2003. The receiver will now make the
individual reports, as required by the court.
Dr. Gonzales, insolvency judge of Buenos Aires' Court No. 8 ruled
that the Company is bankrupt upon the request of its creditor,
Caja de Credito Cuenca Cooperativa Limitada. An earlier report
from the Troubled Company Reporter - Latin America indicates that
the Company owed some ARS38,064 to Caja.
CONTACT: Industrias Nakos S.R.L.
Ground Floor
Bahia Blanca Street No. 26
Buenos Aires
Mr. Alberto Francisco Romeo
5th Floor
Parana Street No. 275
Buenos Aires
LM COMUNICACIONES: Credit Verification Process Ends Today
---------------------------------------------------------
The credit verification process concerning the reorganization of
LM Comunicaciones S.A. ends today, August 19, 2003. Roberto
Munoz, the court designated receiver, will now start preparations
for the individual reports. The informative assembly will be on
November 11 this year.
The Company's motion for "Concurso Preventivo" was approved by
the Civil and Commercial Tribunal of Rosario. The Company's case
is under the jurisdiction of the province's Court No. 7.
CONTACT: Mr. Roberto Munoz
Rioja 4735, Rosario
Provincia de Santa Fe
MANTRA: Credit Authentication Deadline Looms
--------------------------------------------
The credit verification process for the bankruptcy of Argentine
company Mantra S.A. ends today, August 19. Court No. 23 of Buenos
Aires declared the Company bankrupt upon a request filed by its
creditor, Marsans Internacional Argentina.
The receiver, Ms. Liliana Castineira, will proceed with the
preparations for the individual reports. The court also requires
the receiver to file a general after that.
CONTACT: Mantra S.A.
8th Floor
San Martin 663
Buenos Aires
Liliana Castineira
1st Floor
No. 983 Tucuman St.
Buenos Aires
MULTICANAL: Board Approves Start of APE Judicial Proceedings
------------------------------------------------------------
Argentine cable TV operator Multicanal -a unit of local media
holding Clarin- announced last Tuesday that its board of
directors had approved the initiation of the judicial proceedings
for the approval of the out-of-court agreement (APE) subscribed
with some of its creditors in accordance with the terms of the
Bankruptcy Law and also requested the court to call for a
bondholders meeting to determine whether the APE enjoys the
support of the required majority of the existing notes issued by
the Company.
In February 2003, the Company announced a proposal to refinance a
US$ 524 million debt through an APE. The proposal is directed to
holders of its 9.25% notes due 2002, 10.5% notes due 2007,
13.125% Series E notes due 2009, Series C 10.5% notes due 2018
and Series J floating rate notes due 2003, and other financial
indebtedness, and consists of three alternatives.
Firstly, a cash tender offer in which the Company offered to
purchase for cash US$100 million (and later US$ 131 million) of
its debt at a price of US$300 per US$ 1,000 aggregate principal
amount of debt tendered for purchase. As of July 24,
approximately US$90.4 million principal amount of debt has been
tendered in the cash tender offer.
Secondly, a new 10-year step-up par-bond. In its latest
amendment, Multicanal offered to pay US$1,050 per US$1,000
principal amount of debt tendered for purchase. The maximum
amount allocated for this option is US$76.5 million.
Thirdly, Multicanal offered to exchange notes for a mix of new
bonds with a certain write-off and lower interest rates, and
shares of the firm. It offered to pay a price of US$440 per
US$1,000 aggregate principal amount of debt plus 641 of the
Company's class C shares of common stock. It is disposed to
transfer up to 35% of the Company's shares to those creditors
that choose this alternative and set a capital of US$ 324.9
million on the aggregate amount of debt that may elect the
combined option.
The firm made it clear it will not pay any accrued and unpaid
interest (including default interest and additional amounts, if
any) on the debt that is tendered for purchase.
Up to July 25, Multicanal's proposal had been accepted by
approximately 45% of its creditors, percentage that is not enough
to obtain court approval.
The Company wants to reduce its current indebtedness from some
US$ 525 million to US$ 202 million, with repayment terms that
range from seven to ten years.
The information agent for both the cash tender offer and the APE
solicitation is D.F. King & Co., Inc. and its telephone number is
(212) 493-6920. The depositary for the cash tender offer and the
exchange agent for the APE solicitation is JP Morgan Chase Bank
and its telephone number is (212) 623-5162.
NICOLAS SAPONARA: Proof of Claims Due Today
-------------------------------------------
Maria Fernanda Tynik, the receiver for the reorganization of
Nicolas Saponara e Hijos S.A., will close the credit verification
process today, August 19. She will now proceed with preparations
for the individual reports, which are due for submission on
October 20 this year.
The Troubled Company Reporter - Latin America earlier reported
that the Company's motion for "Concurso Preventivo" was approved
by Court No. 17 of Buenos Aires. The court instructed the
receiver to submit the general report on November 18. An
informative assembly will held on April 5 next year.
N.S.C.: Files "Concurso Preventivo" Motion
------------------------------------------
Argentine company N.S.C. S.A. filed a motion for "Concurso
Preventivo", according to local news source La Nacion. The
Company stopped making debt payments at the end of May this year.
The report adds that the Company's case is under the jurisdiction
of Court No. 26 of Buenos Aires. The insolvency judge, Dr. Uzal,
is assisted by Dr. Gros, the city's Clerk No. 52
CONTACT: N.S.C. S.A.
Ciudad de La Paz 3082
SOUTHERN WINDS: Board Admits Serious Financial Trouble
------------------------------------------------------
The board of directors of Southern Winds has indicated that the
airline is undergoing serious financial problems. The board has
already announced the need of fresh funding in order to help its
financial situation.
Owners of Southern Winds consist of Mr. Juan Maggio, controller
of the 70 %; Mr. Christian Maggio, director; and Mr. Jos, Chalen,
one of the men who knows most about the aero commerce sector. All
of them are looking for a solution in order to help the Company
undergo the financial crisis.
The Company, which is not in 'Concurso', counts with three
planes, one of which remains without flying. The Company had to
leave from the IATA Clearing House, when it failed to pay
obligations with the entity.
Market rumors suggest that the airline could stop from flying at
any time.
CONTACT: SOUTHERN WINDS
Mr. Juan Maggio, President
Santa F, 784, PB. Te: (005411)4515-8600
URL: www.sw.com.ar
=============
B E R M U D A
=============
LORAL SPACE: Sells Satellite Rights to Intelsat
-----------------------------------------------
Intelsat, Ltd., a global satellite communications company
providing services in over 200 countries and territories, on
Friday reported that its shareholders approved its proposed
acquisition of six satellites and orbital location rights from
Loral Space & Communications Corporation at a shareholders'
meeting held earlier on Friday in Amsterdam, The Netherlands.
Shareholder approval of the transaction was required under
Intelsat's By-laws.
The proposed acquisition of the Loral assets would complement
Intelsat's global network, which includes capacity on 26
satellites, by adding complete coverage of the important North
American market and by increasing Intelsat's customer base in the
cable television and broadcasting segments.
Intelsat's shareholders approved and adopted the asset purchase
agreement relating to the proposed acquisition, which is expected
to occur at the conclusion of an auction process under Section
363(b) of the U.S. Bankruptcy Code. If approved by the bankruptcy
court, the transaction will be subject to the receipt of
regulatory approvals and the satisfaction of other conditions.
"We thank our shareholders for their overwhelming support of the
Loral asset purchase," said Intelsat chief executive officer
Conny Kullman. "These assets would enable Intelsat to enhance its
global network to include a North American franchise and to offer
customers a global end-to-end solution. The acquisition would
also result in an increase in Intelsat's revenues from
broadcasting, cable television, private data network and other
point-to-multipoint traffic. With the shareholder vote
successfully concluded, we now look forward to the next milestone
in this process -- the successful conclusion of the bankruptcy
court auction process."
About Intelsat
Intelsat, Ltd. offers telephony, corporate network, video and
Internet solutions around the globe via capacity on 26
geosynchronous satellites in prime orbital locations. Customers
in approximately 200 countries rely on Intelsat satellites and
ground resources for quality connections, global reach and
reliability. For more information, visit www.intelsat.com.
LORAL SPACE: Reports Second Quarter 2003 Results
------------------------------------------------
Loral Space & Communications (OTCBB: LRLSQ) yesterday filed its
quarterly report on Form 10Q with the Securities and Exchange
Commission in which it reported financial results for the periods
ended June 30, 2003. The results reflect the adverse economic
conditions that continue to negatively affect the satellite
industry, in particular the satellite manufacturing sector. For
the three months ended June 30, 2003, revenues as reported were
$143 million, compared with $316 million for the same period in
2002. Sales at Loral's satellite manufacturing business before
eliminations were $81 million in the second quarter versus $250
million a year earlier. Fixed satellite services (FSS) revenues
for the quarter were $73 million, compared to $103 million in the
year earlier quarter.
For the second quarter 2003, Loral reported a net loss applicable
to common shareholders of $99 million, compared with a net loss
applicable to common shareholders of $69 million in last year's
quarter.
Loral ended the quarter with $128 million in cash. Net cash
provided by operating activities in the second quarter was $78
million.
In the second quarter, FSS had operating income before
depreciation and amortization of $44 million, compared with $60
million in the year ago quarter. Depreciation and amortization in
the second quarter was $37 million, compared with $38 million in
the quarter last year. As a result, FSS operating income was $7
million, compared with $22 million in the second quarter of 2002.
FSS second quarter 2003 results include a $9 million gain on an
insurance settlement.
Space Systems/Loral (SS/L) had an operating loss before
depreciation and amortization in the second quarter of $89
million, compared with operating income before depreciation and
amortization of $10 million in the second quarter of 2002.
Depreciation and amortization in the quarter was $7 million,
compared with $10 million in the year ago quarter. As a result,
SS/L had an operating loss of $96 million in the second quarter,
compared to breakeven operating income in the year ago quarter.
SS/L's results for the second quarter 2003 include $72 million of
charges, which are primarily due to the absence of new orders at
SS/L.
On July 15, 2003, Loral reached an agreement to sell its six
North American telecommunications satellites to Intelsat for up
to $1.1 billion in cash. Also on July 15, 2003, in conjunction
with this sale and to facilitate the transfer of these assets
without encumbrances, Loral and certain of its subsidiaries filed
voluntary petitions under Chapter 11 of the United States
Bankruptcy Code.
Further details on the company's financial results for the second
quarter and first half of 2003 are available in Loral's 10Q
statement available via the company's web site at www.loral.com.
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
communications service providers, resellers corporate and
government customers for broadband data transmission, Internet
services and other value-added communications services. Loral is
also 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.
CONTACT: Jeanette Clonan or John McCarthy
212/697-1105
MUTUAL RISK MANAGEMENT: Bar Date Set for Reorganization Plan
------------------------------------------------------------
Notice is hereby given that the Scheme of Arrangement ("the
Scheme") between Mutual Risk Management, Ltd. (the "Company")
became effective on Monday, July 21, 2003. In accordance with the
terms of the Scheme, each Class B and Class C Scheme Creditor is
now required to file a Distribution Claim Form so as to reach the
Company on or before the Bar Date which is Thursday, September 4,
2003 (Being 45 days following the effective date). Distribution
Claim Forms must be completed and filed even if a Proxy/Voting
Claim form has been filed.
Distribution Claim Forms are being forwarded to all Class B and
Class C Scheme Creditors by post, Class B and Class C Scheme
Creditors who have not received a Distribution Claim Form may
obtain one from the offices of the Company at:
44 Church Street
Hamilton HM12
Bermuda
Attn:
Angus H. Ayliffe
Fax: (441) 292 1867
or at the offices of Dewey Ballantine LLP at:
1301 Avenue of the Americas
New York, New York 10019-6092
U.S.A.
Attn:
Carey B. Schreiber
Fax: (212) 259 6333.
Scheme Creditors must return the completed Distribution Claim
Forns so as to reach the Company at its offices on or before 5:00
p.m. (Bermuda time) on Thursday, September 4, 2003. Faxed
Distribution Claim Forms will not be accepted. Failure by the
Company to receive Distribution Claim Forms by the said time will
result in that Class B and Class C Scheme Creditor not being
entitled to participate in Distributions under the Scheme.
CONTACT: Mutual Risk Management. Ltd.
David Ezekiel, Chairman
TYCO INTERNATIONAL: Dept of Labor Initiates Own Probe
-----------------------------------------------------
Tyco International Ltd. revealed Thursday that it is the target
of yet another government investigation - a probe by the US
Department of Labor into the Bermuda-based conglomerate's
retirement savings plans, reports The Boston Globe.
"The Department of Labor is investigating us and the
administrators of certain of our benefit plans," Tyco said in a
quarterly report filed with the Securities and Exchange
Commission Thursday.
The subpoena focuses on losses "allegedly experienced by the
plans due to investments in our stock," the Company said,
according to a Bloomberg News report.
At the same time, Fidelity Management Trust Co., a division of
Boston mutual fund giant Fidelity Investments, which performed
oversight and record keeping roles for Tyco's 401(k) plans,
revealed that federal investigators are also seeking information
from them.
Fidelity spokeswoman Anne Crowley said the Company received the
government inquiry Aug. 1.
"We're going to respond to it this week," she said.
The Labor Department probe comes on top of investigations by the
SEC, Manhattan District Attorney Robert Morgenthau, the Internal
Revenue Service, and the US attorney for New Hampshire.
=============
B O L I V I A
=============
ANDINA: Repsol To Cut Oil, Gas Supplies To Domestic Market
----------------------------------------------------------
The Bolivian government's decision to extend the 3% financial
transactions tax (IT) to all oil and gas products angered Spanish
oil company Repsol-YPF. According to Business News Americas,
Repsol warned it would cut oil supplies to Bolivia's domestic
market and just export production following the decision.
Repsol-YPF general manager Jose Maria Moreno was quoted by El
Diario as saying that there is no legislation that obliges oil
companies to supply the local market, so local oil producers
could choose to send all their oil abroad.
"We're not losing money, we're just not earning as much money,"
said Miguel Cirbian, president of Repsol subsidiary Andina,
quoted in the same article. "We have lost the advantage of
selling this product here at an intermediate cost."
In response to the threats, Bolivia's mines and hydrocarbons
minister Jorge Berindoague said the government would pass
legislation if it needs to force oil companies to deliver to the
local market.
"There is no evidence that they will not supply the national
market," Berindoague said. "I think it is not yet necessary to
issue any legislation, but if the need arises, the government
will issue legislation that prohibits [exporting all production]
so that the national market is supplied first, and then [oil] can
be exported," he said.
===========
B R A Z I L
===========
CPFL: Losses Widen in 1H03
--------------------------
Brazilian energy provider Cia. Paulista de Forca e Luz (CPFL)
reported Thursday a first-half 2003 net loss of BRL326.88 million
(US$109 million). The figure is 94% higher than that of the loss
in the same period last year, local daily Agencia Estado reports,
without providing a figure for last year.
In a statement, CPFL said operating costs jumped 95% to BRL326.88
million, while net financial expenses climbed 40% to BRL191
million. As of the end of June, CPFL's net equity amounted to
BRL1.82 billion.
CPFL serves about 2.9 million customers in more than 230
municipalities in the state of Sao Paulo and distributes one-
fifth of electricity consumed in the state.
CONTACT: Rodovia Campinas Mogi-Mirim, Km 2.5, Jardim Santana
CEP 13088-900 Campinas, Sao Paulo, Brazil
Phone: +55-19-3756-8198
Fax: +55-19-3756-8392
Officers: Carlos Ermirio de Moraes, Chairman
Wilson Pinto Ferreira Jr., President and CEO
Otavio Carneiro de Rezende, Director Finance
and Administration
===============
C O L O M B I A
===============
COMESA: Ends July with Sales of $590,000
----------------------------------------
Comesa, the bankrupt Colombian metal fabricator, which is part of
the former Distral engineering group, posted sales of COP1.7
billion (nearly US$590,000) in July, Portafolio business daily
reports. The plant, which makes boilers and other equipment,
halted activities last year, but workers were able to return to
work in October after receiving machinery ownership in return for
unpaid wages.
At the moment, Comesa is looking at US$4 million worth of deals
as it seeks new markets in Central America, Portafolio said. The
Company is also in talks with a vehicle assembler in Ecuador to
supply equipment and is making a 1000HP boiler for a customer in
Peru.
Meanwhile, the Company is asking the Colombian government to
reduce import duties, as it has to bring in specialty steel from
the US.
=============
J A M A I C A
=============
AIR JAMAICA: Reaches Shareholders Agreement With Government
-----------------------------------------------------------
Jamaica's Finance Ministry expects to finalize a `shareholder's
agreement' with the country's cash-strapped flag carrier Air
Jamaica, reports RJRNews.
"It is expected that the shareholders agreement will be finalised
and agreed in Cabinet after resumption in September," said deputy
financial secretary for Public enterprises Carol Jones as quoted
by the report.
Last year, Air Jamaica deputy chairman Christopher Zacca revealed
that the airline has asked the government to increase its equity
stake to 45 percent from the present 25 percent. The increase
would be facilitated by a debt equity swap, which would clear the
airline of its liabilities to the government.
The ministry did not comment on whether the initial deal has been
amended.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Shareholders Choose Three New Board Members at AGM
--------------------------------------------------------
BWIA was scheduled to hold its annual general meeting August 15,
whereby shareholders, including the State, were expected to
choose their replacements for the three members of the board of
directors, who quit their posts just recently.
The Trinidad Guardian reports that Gordon Deane, who was
appointed the new chairman of the Integrity Commission by
President Maxwell Richards on Wednesday, tendered his resignation
as a BWIA board director on June 6. Former BWIA board members
Rajveer Ranawat and Michael Stanfield tendered their resignations
on May 30 and May 27, respectively.
Trade and Industry Minister Ken Valley, the Junior Finance
Minister who is the line Minister for the restructuring of BWIA,
refused to say whether Government will use the AGM as an
opportunity to gain full control of the airline.
BWIA's acting chairman Anthony Jacelon is one of three Government
representatives on the Board who will retire his position but,
being eligible to serve another term, will offer himself for re-
election by the Government.
BWIA's unions have been urging the Government to regain control
of the BWIA on behalf of the State. The State owns 49.5% of
BWIA's shares and has a golden share, which means the Minister of
Finance or his representative must be involved in key decisions
at the airline. Of that, 15.5% is held on behalf of unions.
=================
V E N E Z U E L A
=================
PDVSA: President Mulls Splitting Company Into Two Divisions
-----------------------------------------------------------
Ali Rodriguez, the president of Venezuela's state oil company
PDVSA, is considering dividing PDVSA into east and west divisions
following an order by Venezuelan President Hugo Chavez in an
attempt to decentralize the Company and eliminate bureaucracy.
"There will be changes" in the current set-up of the company and
"the eastern and western division won't stay as they are,"
Rodriguez said, as quoted by newspaper El Universal.
However, industry sources say Rodriguez could be planning to
eliminate the divisions and return to a single state oil company
because of falling oil production and poor communication between
the divisions, according to a report by the Associated Press.
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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 America is a daily newsletter co-
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Copyright 2003. All rights reserved. ISSN 1529-2746.
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