/raid1/www/Hosts/bankrupt/TCRLA_Public/030909.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, September 9, 2003, Vol. 4, Issue 178
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Claims Aid To Southern Winds Unfair
AT&T LATIN AMERICA: GTD, Embratel Compete In Race For Assets
BRAFIN: Court Assigns Receiver For Bankruptcy
CONSTRUCCIONES CONSA: Bankruptcy Process Starts by Court Order
COTO: Restructuring Debt With Banks
FOTOPOLIMEROS: Court Sets Deadline For Reports
FRIGORIFICO ALONSO: Tribunal Assigns Receiver For Bankruptcy
JEANVAC: Court Approves Creditor's Petition For Bankruptcy
MOTEGAY: La Rioja Tribunal Orders Bankruptcy
MYAN GROUP: Creditors Must Present Claims Before November 21
PRIVADA SALUD: Enters Bankruptcy On Court Order
RAUMSA: Court Rules "Quiebra Decretada"
TU AUXILIO: Seeks Court Permission To Reorganize
V Y F: Receiver Ends Verification For Bankruptcy
B E R M U D A
GLOBAL CROSSING: Laying Off 70 Employees at Colorado Office
B R A Z I L
CELG: Court Orders Payment for July, August Power Purchases
IMF Approves $4.1B Disbursement to Brazil
C H I L E
INVERLINK: Issis To Buy Veda Plena
D O M I N I C A N R E P U B L I C
DR BANKS: Regulator Seeks 62 Auditors For Nationwide Audit
G U Y A N A
*IMF Approves Additional Interim HIPC Assistance For Guyana
J A M A I C A
JUTC: UAWU Seeks Retroactive Pay, Resolution to Remaining Issues
M E X I C O
GRUPO IUSACELL: CFC Approves Movil Access Move to Buy
ING COMERCIAL: Declines Out-of-Court Settlement
SATMEX: Moody's Downgrades Ratings Following Unsecured Default
P A N A M A
BANCREDITO: Regulator Steps In to Salvage Deposits
P E R U
EDEGEL: PSS50M Three-Year Bonds Issue Oversubscribed
T R I N I D A D & T O B A G O
BWIA: Seeks Release of State Funds for Laid Off Workers
CARIBBEAN ISPAT: Workers Protest March Seeking Better Benefits
TRINMAR: Prime Minister Seeks Petrotrin Merger
U R U G U A Y
*Moody's Annual Report Amplifies Uruguay's Risks, Uncertainties
V E N E Z U E L A
PDVSA: Seeks $1B Expansion Loan From Japanese Bank
- - - - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Claims Aid To Southern Winds Unfair
----------------------------------------------------------
The government's aid to ailing carrier Southern Winds is giving
the troubled airline an unfair advantage over its competitors,
reports Bloomberg News citing Julio Scaramella, spokesman for
Aerolineas Argentinas.
"We agree the government needs to come in to help a social
problem, in this case saving jobs, but what we don't agree with
is the inclusion of Southern Winds in this project," said the Mr.
Scaramella.
In exchange for ARS3.2 million in funds from the government per
month, Southern Winds agreed to share its fleet and
infrastructure with state-owned Lineas Aereas Federales S.A..
Southern winds also agreed to chuck off plans of terminating 650
employees.
Southern Winds spokesperson Encarnacion Ezcurra commented to
complaints that the government is subsidizing her company.
"There was help by the government for a company that was having
problems, but by definition this isn't a subsidy. This is a
commercial agreement where there are mutual benefits," she said.
Aerolineas Argentinas is also facing financial troubles. It was
acquired by Viajes Marsans after it filed for bankruptcy
protection in 2001.
AT&T LATIN AMERICA: GTD, Embratel Compete In Race For Assets
------------------------------------------------------------
Chilean corporate services provider GTD Teleductos is one of four
firms, which presented an offer for AT&T Latin America (ATTL),
Business News Americas reports, citing GTD Telesat CEO Alberto
Dominguez. Mr. Dominguez revealed that GTD's original offer of
about US$100 million was made in partnership with Spain's
Telefonica Data.
ATTL has already accepted that an offer from Brazilian long
distance operator Embratel, another firm expected to participate
in the auction of ATTL, is the best proposal so far. The said
offer will form the basis for the US bankruptcy court in charge
of ATTL's Chapter 11 proceedings to decide on a minimum price.
However, a source close to ATTL confirmed that any interested
party could offer to beat Embratel's offer, adding that the
auction could start within days.
BRAFIN: Court Assigns Receiver For Bankruptcy
---------------------------------------------
Mendoza-based Brafin S.A., which was recently declared bankrupt
by the province's Court No. 1, is placed in the hands of Mr.
Angel Hugo Hernandez, the receiver for the bankruptcy process,
reports local news portal Infobae.
The court instructed the receiver to verify creditors' claims,
after which individual reports must be prepared. Following
submission of the individual reports to the court, the receiver
is also required to prepare a general report on the process.
CONTACT: Angel Hugo Hernandez
San Martin 322
Mendoza
CONSTRUCCIONES CONSA: Bankruptcy Process Starts by Court Order
--------------------------------------------------------------
Court No. 21 of Buenos Aires declared local company
Construcciones Consa S.A. bankrupt, relates local news portal
Infobae. Working with Clerk No. 42, the court assigned Mr.
Argmando Esteban Bozzini as the Company's receiver.
The individual reports, which are prepared after the credit
verification process is completed, must be submitted to the court
on May 4 next year. The general report must follow by June 21,
2004.
CONTACT: Construcciones Consa S.A.
Zapiola 1923
Buenos Aires
Armando Esteban Bozzini
Vidal 3375
Buenos Aires
COTO: Restructuring Debt With Banks
-----------------------------------
Argentine supermarket chain Coto is trying to restructure loans
to a group of banks, including JP Morgan-Chase, Citibank, Salomon
Smith Barney, Credit Suisse, First Boston, BBVA Frances, Galicia
and Nacion. The consortium of banks lent Coto US$175 million in
April 2001 in order to fund a three-year expansion plan.
The banks would agree to give Coto a grace period and a five-year
term to repay the debt, only if it guarantees the payment with
both assets and equity. This proposal is qualified as
'aggressive' in the market.
Alfredo Coto, head of the chain, turned this proposal down and
would be about to present a counterproposal based on the real
cashflow and the firm's repayment capacity. Mr. Coto fears that
Argentina's juridical instability might end up causing a new
crisis that may be used by banks to execute the guarantees.
The loan was granted just before the crisis in Argentina
exploded. The initial conditions established that Coto had to
cancel the debt in three years and use it to open some 35 new
outlets, increasing its billing from US$1.58 billion to US$2.5
billion in 2004. However, the sudden depreciation of the
Argentine peso against the US dollar and its devastating impact
on the supermarket business only let Coto open two outlets and
repay US$ 20 million of another US$100 million loan granted by
Lehman Brothers in July 1998.
FOTOPOLIMEROS: Court Sets Deadline For Reports
----------------------------------------------
Buenos Aires' Court No. 18, which handles the bankruptcy of local
company Fotopolimeros del Sur S.A., has set the deadlines for the
individual and general reports. Argentine news source Infobae
relates that the individual report, which must be prepared upon
completion of the credit verification process, must be filed on
March 4 next year. The general report, on the other hand, must be
presented on April 15.
Creditors have until December 19 to have their claims verified by
the court-appointed receiver, Elba Bengoechea. The receiver is
also tasked with the preparation of the mentioned reports.
CONTACT: CONTACT: Fotopolimeros del Sur S.A.
Senillosa 560
Buenos Aires
Elba Bengoechea
Uriburo 1010
Buenos Aires
FRIGORIFICO ALONSO: Tribunal Assigns Receiver For Bankruptcy
------------------------------------------------------------
The Civil and Commercial Tribunal of Mar del Plata assigns
Estudio M.C. Quintana y Asociados as the receiver for the
bankruptcy of Frigorifico Alonso S.R.L., relates Infobae. The
Company was recently declared "Quiebra Decretada" by the
province's Court No. 1.
However, the report did not mention whether the court has set the
deadline for the verification of creditor's claims or for the
individual and general report.
CONTACT: Frigorifico Alonso S.A.
Victoriano Montes 2831
Mar del Plata
Estudio M.C. Quintana y Asociados
Castelli 3153
Mar del Plata
JEANVAC: Court Approves Creditor's Petition For Bankruptcy
----------------------------------------------------------
Dr. Vasallo, the insolvency judge in Buenos Aires' Court No. 5
approved a petition for the bankruptcy of Jeanvac S.R.L. filed by
the Company's creditor, Isidora Huaquipa Calle, reports local
news portal Infobae. The Company failed to make payments on some
$10,517 of debt to Ms. Calle. Working with Dr. Polo Olivera,
Clerk No. 10, the court assigned Mr. Gustavo Guillermo Vignale as
the receiver for the process. The receiver is instructed to
verify creditors' claims until October 21 this year.
The court also requires the receiver to prepare the necessary
individual and general reports. However, the source did not
reveal whether the court has set the deadlines for these.
CONTACT: Jeanvac S.R.L
3rd Floor Room E
Ave. Cordoba 2302
Buenos Aires
Gustavo Guillermo Vignale
PB A
Vuelta de Obligado 2717
Buenos Aires
MOTEGAY: La Rioja Tribunal Orders Bankruptcy
--------------------------------------------
Motegay S.A., which is domiciled in Chilecto La Rioja, enters
bankruptcy upon an order from the province's Civil and Commercial
Tribunal. Local news portal Infobae relates that the court
assigned local accountant Juan Sanchez as the receiver for the
process.
The receiver is required to verify creditors' claims. After that,
he is required to prepare individual and general reports.
However, the report did not mention whether the court has set the
deadline for these reports.
CONTACT: Motegay S.A.
Colonia Malegasta
Chilecto, La Rioja
Juan Sanchez
Hipolito Irigiyen 200
Chilecto, La Rioja
MYAN GROUP: Creditors Must Present Claims Before November 21
------------------------------------------------------------
Creditors of Buenos Aires company Myan Group S.R.L. must present
their claims for verification before the November 21, 2003
deadline expires. Argentine news portal Infobae relates that the
receiver, Ms. Sandra Dalla, will authenticate creditors' claims
to establish the existence, nature and amount of the Company's
debt.
The city's Court No. 6 recently declared the Company bankrupt
said the report. Clerk No. 12 assists the court on the case.
Upon completion of the credit verification process, the receiver
will prepare the individual and general reports. However, the
source did not say whether the court has set the deadlines for
these reports.
CONTACT: Myan Group S.R.L.
Nazca 2175
Buenos Aires
Sandra Dalla
Tucuman 1711
Buenos Aires
PRIVADA SALUD: Enters Bankruptcy On Court Order
-----------------------------------------------
Privada Salud S.R.L., which is domiciled in Buenos Aires, enters
bankruptcy following an order from the city's Court No. 23. Local
news source Infobae relates that Clerk No. 46 works with the
court on the case.
A receiver, whom the source did not name, will verify creditors'
claims and prepare the necessary reports. However, the report did
not indicate whether the court has set the deadlines for the
individual and general reports.
RAUMSA: Court Rules "Quiebra Decretada"
---------------------------------------
Buenos Aires' Court No. 21 rules that local company Raumsa S.A.
is "Quiebra Decretada", putting the Company under bankruptcy.
Local accountant Manuel Musanta was designated as the receiver
for the process, relates Argentine news portal Infobae.
The Company's creditors must present their claims to the receiver
for verification. The court ordered the credit authentication
period will end on December 30 this year. After that, the
receiver must prepare individual and general reports on the
process. However, the source did not mention whether the court
has set the deadlines for these reports.
CONTACT: Raumsa S.A.
Scalabrini Ortiz 1061
Buenos Aires
Manuel Musanta
Tucuman 1428
Buenos Aires
TU AUXILIO: Seeks Court Permission To Reorganize
------------------------------------------------
Argentine mechanical services company Tu Auxilio S.A. has
submitted its motion for "Concurso Preventivo" to Buenos Aires'
Court No. 19, which is under Dr. Fernandez. Local newspaper La
Nacion reports that Clerk No. 38, Dr. Mazzoni, works with the
court on the case.
The Company has stopped making debt payments since August 18 this
year, said the report. However, it did not mention whether the
petition is likely to be approved or not.
CONTACT: Tu Auxilio S.A.
PB Departamento 3
Sarmiento 1230
Buenos Aires
V Y F: Receiver Ends Verification For Bankruptcy
------------------------------------------------
Buenos Aires accountant Juan Enrique Reinhardt, who is receiver
for local company V y F S.R.L., will close the credit
verification process regarding the Company's bankruptcy today,
September 9. As ordered by the court, the receiver will now
proceed with preparations for the individual reports.
The city's Court No. 22 approved the Company's motion for
"Concurso Preventivo", granting it permission to undergo
reorganization. The court instructed the receiver to file the
individual reports on November 11 followed by the general report
on December 23.
CONTACT: Juan Enrique Reinhardt
Viamonte 1348
Buenos Aires
=============
B E R M U D A
=============
GLOBAL CROSSING: Laying Off 70 Employees at Colorado Office
-----------------------------------------------------------
In light of its financial difficulties, Global Crossing plans to
shut down its Westminster, Colorado office by the end of the
year, laying off 70 customer service personnel and relocating 30
others.
In a report by the Associated Press on August 28, 2003, Global
Crossing spokeswoman Tisha Kresler relates that the Company is
offering relocation at their offices in Phoenix or Montreal.
The Company's Colorado office will continue to operate with 200
employees, mostly in the teleconferencing unit. (Global Crossing
Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
===========
B R A Z I L
===========
CELG: Court Orders Payment for July, August Power Purchases
-----------------------------------------------------------
A Brazilian court ordered Goias state distributor CELG to pay
BRL19 million to Cachoeira Dourada hydroelectric power plant for
power bought in July and August this year. The ruling comes
despite the fact that CELG was earlier awarded an injunction that
canceled its agreement to buy power from Cachoeira Dourada, a
subsidiary of generator Endesa Chile.
The injunction was awarded after the current Goias government
complained that CELG is paying too much for electric power from
Cachoeira Dourada, thus damaging the distributor's financial
health.
The price set at the privatization was BRL37.8/MWh and that has
now risen through adjustments to BRL53.9/MWh. The 10-year power
purchase agreement (PPA) was signed in 1997, before Endesa bought
92.5% of the company at a privatization auction.
CELG reportedly saves BRL8 million (about US$2.67mn) a month by
buying energy from other suppliers compared to the price charged
by Cachoeira Dourada.
IMF Approves $4.1B Disbursement to Brazil
-----------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the fourth review of Brazil's performance under the SDR
22.8 billion (about US$31.3 billion) Stand-By Arrangement
approved on September 6, 2002. Completion of the review allows
Brazil to draw the equivalent of up to SDR 3 billion (about
US$4.1 billion), half of which is under the Supplemental Reserve
Facility (SRF). A fifth and last review under the current
agreement, which would allow a final disbursement of SDR 5.6
billion (about US$7.7 billion), is expected to occur before it
expires on December 31, 2003.
Following the Executive Board review of Brazil, Anne Krueger,
First Deputy Managing Director and Acting Chair, said:
"Brazil's performance under the Stand-by Arrangement, approved on
September 6, 2002, remains strong. All performance criteria
associated with the fourth review were met, and benchmarks on the
submission of tax and pension reform proposals were achieved well
ahead of schedule. This commendable policy performance has led to
improvements in financial market variables and has set the stage
for a return to sustained and dynamic growth.
"The government's prudent fiscal and monetary policies have been
indispensable in restoring confidence. The solid fiscal outturn
clearly demonstrates the government's commitment to the primary
surplus target. The proactive response of monetary policy to
inflationary pressures in late 2002 and earlier this year has
resulted in a steady decline of monthly inflation rates and
inflation expectations, allowing the central bank to begin easing
monetary policy. As inflation indicators continue to converge to
government targets, there will be room in coming months for
further easing monetary policy. The steady relaxation of monetary
conditions should provide an important boost to growth.
"Successful implementation of the structural reform agenda will
also consolidate confidence gains and further support investment
and growth. Passage of the pension, tax and bankruptcy measures
will bring direct benefits in terms of reducing fiscal
imbalances, removing inefficiencies and reducing the cost of
capital, while also underscoring the government's commitment to
undertake the reforms necessary to restore sustainable and
equitable growth over the medium term."
CONTACT: INTERNATIONAL MONETARY FUND
700 19th Street, NW
Washington, D.C. 20431 USA
IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772
=========
C H I L E
=========
INVERLINK: Issis To Buy Veda Plena
----------------------------------
The proposal offered by Chilean investment consortium Issis for
Inverlink's former health insurer subsidiary Vida Plena was
chosen by the latter's trustees, reports Business News Americas.
The consortium, comprised of local group Larchmont and Swedish
investors, offered CLP840 million (US$1.2mn) in cash for the
health insurer, plus the promise of a CLP2-billion (US$2.9mn)
capital increase.
Issis' bid was boosted by a letter of guarantee received from a
Swiss bank backing the financial credibility of the consortium's
purchase offer. The Issis consortium was chosen over another
local group, La Perba, which had offered CLP2.5 billion
(US$3.58mn), including CLP1.5 billion paid over a 20-month period
and the non-collection of a CLP1 billion- loan.
The sale of Veda Plena is part of the liquidation process of
Inverlink, the focus of ongoing corporate theft and corruption
legal proceedings, to reimburse creditors.
===================================
D O M I N I C A N R E P U B L I C
===================================
DR BANKS: Regulator Seeks 62 Auditors For Nationwide Audit
----------------------------------------------------------
A total of 62 local and international consulting firms will be
hired to audit all state and private banks in the Dominican
Republic, reports Business News Americas, citing a statement from
the President's office.
The audit, which is aimed at reviewing the banks' solvency levels
and accounting systems, is part of the government's program to
strengthen the country's banking system. The International
Monetary Fund backs the move, said the report.
The Dominican Republic was hard hit when local bank Baninter was
intervened following the discovery of its involvement massive
fraud. The scandal induced the government to seek out financial
aid from multilateral lenders.
Supbanco, the country's banking regulator will chose the auditors
to be hired. More details can be found at its website:
www.supbanco.gov.do.
===========
G U Y A N A
===========
*IMF Approves Additional Interim HIPC Assistance For Guyana
-----------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Friday the first review of Guyana's economic
performance under its three-year SDR 54.55 million (about US$75
million) Poverty Reduction and Growth Facility (PRGF)
arrangement, which was approved on September 13, 2002 (see Press
Release No. 02/42). This decision entitles Guyana to the release
of a further SDR 5.97 million (about US$8.2 million) under the
arrangement.
The Executive Board also approved Guyana's request for waivers on
the non-observance of the end-December 2002 quantitative
performance criteria on the net foreign assets and net domestic
assets of the Bank of Guyana, and the end-December 2002
structural performance criteria.
In addition, the Board approved an extension of the program
period for six months through March 19, 2006 as well as Guyana's
request for additional interim assistance under the Heavily
Indebted Poor Country (HIPC) Initiative of SDR 5.07 million
(about US$7 million) to help the country meet its debt service
payments on its existing debt to the IMF.
Following the Executive Board's discussion of Guyana, Agustín
Carstens, Deputy Managing Director and Acting Chairman, said:
"Guyana has faced significant challenges since the start of its
reform program in September 2002, including a more difficult
political and security situation. As a result, private investment
and growth have fallen significantly short of expectations.
Implementation of key structural reforms was also delayed, with
adverse effects on fiscal performance.
"The authorities' program aims at regaining momentum for reforms.
Most 2002 structural performance criteria were implemented as
prior actions for the completion of this review, including in key
areas such as public enterprise restructuring and tax reform.
Corrective revenue and expenditure measures are now in place to
contain the 2003 fiscal deficit to a level consistent with
macroeconomic stability.
"Sustained structural reforms remain key to achieving Guyana's
poverty and growth objectives. The 2003-04 structural reform
agenda focuses on strengthening tax administration in the Guyana
Revenue Authority, improving public expenditure management,
privatizing or restructuring the loss-making state-owned bauxite
company, implementing a profitability-oriented wage and
employment policy in the sugar company, and strengthening
financial regulations and supervision.
"In concluding the first review under the Poverty Reduction and
Growth Facility, the Executive Board commended the authorities
for regaining reform momentum. Implementation of the program
should lay the basis for sustainable growth and poverty
reduction," Mr. Carstens stated.
CONTACT: IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs
Phone: 202-623-7300
Fax: 202-623-6278
Media Relations
Phone: 202-623-7100
Fax: 202-623-6772
=============
J A M A I C A
=============
JUTC: UAWU Seeks Retroactive Pay, Resolution to Remaining Issues
----------------------------------------------------------------
The Jamaica Urban Transit Company (JUTC) held a meeting with the
Allied Workers Union (UAWU) Thursday to resolve outstanding
issues, which have soured the industrial relations climate at the
ailing company, says the Jamaica Observer.
During the meeting, the UAWU submitted a proposal for retroactive
pay for almost 2,000 workers at the state-run bus company. A
human resource and development sub-committee of the JUTC will
consider the said proposal and will submit its findings this
week.
JUTC employees represented by the UAWU started a work-to-rule
more than a week ago to protest against the bus company's
decision to make reclassification payments retroactive to April
this year.
The workers want the effective date pushed back to last year.
Regarding the introduction of single-operator buses, which should
have begun on Wednesday, the UAWU President says this will be put
on hold and phased in later over a three-month period.
===========
M E X I C O
===========
GRUPO IUSACELL: CFC Approves Movil Access Move to Buy
-----------------------------------------------------
Mexico's anti-trust commission Federal Competition Commission
(CFC) approved Movil Access' acquisition of Grupo Iusacell on
Thursday. An article from South American Business Information
indicates that the commission approved the transaction as
Iusacell is in a different sector of wireless telephone service
as Unefon, Grupo Salinas' other wireless communications company.
Movil Access bought Iusacell for US$10 million in a tender offer
in July. According to the CFC, public stock purchase offer on the
Mexico and United States stock exchanges will complete the asset
transfer.
SABI indicates that the combined companies would remain smaller
than the market leader in terms of the number of users, and that
the concentration indexes are within the parameters set by the
CFC.
CONTACT: Grupo Iusacell S.A. De C.V.
Prolongacion Paseo dela Reforma
1236
Col Santa Fe Delegacion Cuajimalpa
05348 Mexico
Distrito Federal
Mexico
Phone: +52 5 109 4400
Home Page: http://www.iusacell.com.mx
Unefon Sa De CV
EdificioA
Puriferico Sur 4119 Fuentes del
Pedregal
Mexico
DF Mexico 14141
Phone: +52 8582 50000
Fax: +52 8582 5052
Home Page: http://www.unefon.com.mx
Contact:
Moises Saba Masri, Chairman
`Pedro Padilla Longoria , Vice Chairman
ING COMERCIAL: Declines Out-of-Court Settlement
------------------------------------------------------
Hans Porrias, ING communications director for Mexico and Latin
America, said that the Company, an insurance subsidiary of Dutch
financial group ING, will not seek an out of court settlement
with local fertilizer company Fertinal, relates Business News
Americas.
"We consider it to be a strategy by Fertinal to force us into
making a larger payment than what is just," Mr. Porrias said.
Fertinal filed a suit against ING Comercial America and about 13
of its past and present employees for damages relating to an
insurance claim on its fertilizer mine in Baja California, which
was damaged by Hurricane Juliette in 2001.
Local adjuster Almaraz Ajustadores put the damages at US$13
million, but Fertinal subsequently claimed the full amount of the
US$300 million policy.
SATMEX: Moody's Downgrades Ratings Following Unsecured Default
--------------------------------------------------------------
Moody's Investors Service cut the senior implied rating for
Mexican satellite services provider Satmex from Caa3 to Ca.
Outlook is negative, according to a statement from the ratings
agency released on Friday.
A report by the Business News Americas indicates that the
downgrade follows the Company's recent default on unsecured debt.
The ratings agency said the default now affects the secured debt.
The Company's senior unsecured issuer rating was cut to C from
Ca. The rating on the Company's US$320mn of unsecured was
downgraded to C from Ca and US$204mn of secured notes to Caa1
from B3.
The ratings agency said "intense competition from international
fixed satellite service providers and domestic fiber optic
networks in a slow economic environment" is a major factor in the
deterioration of the Company's operating performance.
However, secured creditors will not be heavily affected. "Loss
severity for secured creditors, however, is still expected to be
quite modest, if any losses are realized at all," said Moody's.
The recent launching of the Satmex-6 satellite could boost cash
flow, but it the satellite may be worth more as a sale candidate,
because for the current default status.
Unsecured creditors are likely to receive "little if any" from
the Company, in the event of a restructuring. Moody's believes
that the Company is likely to restructure its debt and as much as
70% of the total debt will probably be reimbursed.
CONTACT: SATELITES MEXICANOS, S.A. DE C.V.
Blvd. Manuel Avila Camacho 40
piso 24 Col. Lomas de Chapultepec
México, D.F. 11000 México
Phone: 5201-0898 (Mexico City)
01-800-800-7286 (Toll Free)
(55) 52-01-08-98 (Other Mexican States)
1-877-728-63-91 (1-877-SATMEX1) (USA Toll Free)
(52) (55) 52-01-08-98 (From USA to Mexico City)
(52) (55) 52-01-08-98 (Others)
===========
P A N A M A
===========
BANCREDITO: Regulator Steps In to Salvage Deposits
--------------------------------------------------
Panama's banking regulator intervened local bank Bancredito to
protect its clients from possible negative effects from the
scandal that rocked the bank's Dominican Republic-based parent,
Baninter. Business News Americas reports that Bancredito operated
with an international banking license and all its clients were
Dominican, either individuals living in Panama or businessmen
doing business in Panama.
Citing a banking regulator official, the report reveals that a
government-appointed liquidator will present a report in some 30
days about Bancredito's financial situation and issue
recommendations on how to best liquidate the bank. The main
objective of the banking regulator is to return the deposits to
Bancredito's clients, the official noted.
Baninter was one of Dominican Republic's largest banks prior to
its intervention earlier this year after massive fraud was
detected at the bank.
=======
P E R U
=======
EDEGEL: PSS50M Three-Year Bonds Issue Oversubscribed
----------------------------------------------------
Peruvian generator Edegel, which is owned by Endesa Chile, placed
PSS50 million in three-year bonds on Wednesday, reports Business
News Americas, citing a Company statement to the Lima stock
exchange. The bonds carry an interest rate of 4.13%per semester,
comprise the third issue of the Company's Series A bonds.
Local newspaper Gestion reports that 70% of the bonds were bought
by private pension funds (AFPs), 21% by mutual funds and 9% by
state entities. The issue was three times oversubscribed, said
the paper.
Edegel has 1,029MW installed capacity. Its main activity is the
generation of electric energy through 7 hydroelectric centers and
1 thermal center located in the provinces of Lima and Junin.
CONTACT: Edegel S.A.A.
4 Torre Real
147 Avenida Victor Andres
Belaunde
San Isidro
Lima
Peru 27
Phone: +51 1 215 6300
Fax: +51 1 215 6370
Home Page: http://www.edegel.com
Contacts:
Hector Lopez Vilaseco, Chairman
Engr. Rolando Saavedra Vargas, Vice Chairman
Endesa Empresa Nacional de Electricidad S.A.
Casilla 1392 Correo Central
76 Santa Rosa
Santiago
Chile 6510207
Phone: +56 2 630 9000
Fax: +56 2 635 4720
Telex: VTR 34 02 91 ENDESA CK
Home Page: http://www.endesa.cl
Contacts:
Engr. Luis Rivera Novo, Chairman
Antonio Pareja Molina, Vice Chairman
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Seeks Release of State Funds for Laid Off Workers
-------------------------------------------------------
BWIA was able to allocate $3 million out of its summer revenues
towards payment for its retrenched workers, the Trinidad Guardian
reports. Even so, BWIA spokesman Clint Williams said the airline
was not in a position to raise a lump sum to clear its
outstanding severance payments. As such, the airline is calling
on the Government to release the State funds necessary for the
airline to pay its debt.
Government has previously said it was not responsible for any
severance payments to BWIA employees.
In June, when Cabinet issued $30 million out of a $118 million
State to BWIA for its monthly operations, two of the unions at
the airline said it owed about $50 million in severance payments.
Cabinet then decided to keep $55 million of the loan as a
guarantee towards BWIA's monthly lease payments to its aircraft
lessors, International Leasing Finance Corporation.
Corporate general manager Nelson Tom Yew, in an internal BWIA
communiqué copy obtained by the Trinidad Guardian, he wrote that
the airline made enough money during July and August that it was
able to pay all of its monthly lease payments without State
intervention.
"The issue of outstanding severance payments and their impact on
former employees has dogged us and it is our fervent hope that
our short term successes of summer will convince the Government
to release the funds allocated under the initial $118 million for
the payment of severance benefit," Tom Yew wrote.
BWIA had negotiated with Cabinet for the allocation of $55
million out of the $118 State loan towards its outstanding
severance payments.
CONTACT: British West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
CARIBBEAN ISPAT: Workers Protest March Seeking Better Benefits
--------------------------------------------------------------
For the second time, workers at Caribbean Ispat Limited marched
in protest of the Company's alleged refusal to meet with the
Steel Workers Union of Trinidad and Tobago (SWUTT). Local
newspaper Trinidad Express reports that the workers are seeking
improvements in the benefits included in their pension plan.
SWUTT's General Secretary Wayne Roberts said, "We would take
strong action to bring about the company meeting with the union.
At our next General Council meeting on Thursday, we will review
the company's action in light of the protests and recommend
stronger action." The leader added that the stoppage of the
Company's operations is not in the union's agenda at present.
The Company claims that the union is seeking negotiations outside
of the bargaining period. However, said Mr. Roberts, The
collective agreement stipulates that discussions may be held
after either party provides the other 14 days notice in writing.
Fewer employees joined the later rally. On Tuesday last week,
About 100 employees staged the first the protest around the
Brechin Castle Roundabout in Point Lisas.
CONTACT: Ispat International N.V.
Hofplein 20, 15th Fl.
3032 Rotterdam,
The Netherlands
Phone: +31-10-282-9465
Fax: +31-10-282-9468
Home Page: http://www.ispat.com
Contact:
Lakshmi N. Mittal, Chairman and CEO
Malay Mukherjee, President, COO
Bhikam C. Agarwal, CFO
TRINMAR: Prime Minister Seeks Petrotrin Merger
----------------------------------------------
Trinidad Prime Minister Patrick Manning is calling for the merger
of Petrotrin and Trinmar, the Trinidad Express reports. When
asked during Thursday's post-Cabinet news conference if the
Government was holding to the position that there must be a
merger of the companies, Manning answered: "Yes, because it is
the Government's judgment that this is the most efficient way of
conducting the business of the petroleum sector, in which the
Government has an involvement."
Told of the perception that Petrotrin might be a liability for
Trinmar, Manning said: "It's not a question of Trinmar's
operations; the oil-producing operations are for the people of
Trinidad and Tobago. The State owns 100% of Trinmar and 100% of
Petrotrin. It will appear to us that a consolidated production
operation will be the best and most efficient way of conducting
the business of the petroleum industry."
The minister's comments come amid protest action lodged by
Trinmar workers to resist a merger of the two State-owned
companies.
=============
U R U G U A Y
=============
*Moody's Annual Report Amplifies Uruguay's Risks, Uncertainties
---------------------------------------------------------------
Moody's Investors Service released its annual report on Uruguay
entitled "Uruguay: Global Credit Research."
According to the report authored by Ernesto Martinez-Alas, the
country's speculative-grade ratings and negative outlook are due
to weakened economic activity that are the result of regional
volatility and severe external shocks from Argentina's financial
crisis, and ongoing deterioration of debt ratios.
Uruguay's foreign currency debt ceiling is B3 while its foreign
currency bank deposit ceiling is Caa1. The domestic debt rating
is B3.
On the positive side, Uruguay has adequate support from
international financial institutions, and the government is
committed to implement adequate macroeconomic policies, said the
report.
The authorities are attempting to reverse the steady erosion of
the country's economic fundamentals and several years of economic
contraction. In Moody's view, the decline in the country's
creditworthiness will endure for the foreseeable future.
While the authorities have so far complied with International
Monetary Fund agreements as reflected in the recent third review
of the IMF's stand-by arrangement, says Mr. Martinez-Alas, the
administration of President Jorge Batlle is currently facing
difficulties in getting congressional approval of a modest tax
reform that is part of the conditionality of the IMF-supported
program."
Moody's believes there is still a downside risk that the fiscal
targets will not be achieved over the coming 12 to 18 months,
especially as this will coincide with the run-up to the 2004
national election. There is also a growing social and political
reluctance to increase taxation significantly or to erode further
the social safety net.
=================
V E N E Z U E L A
=================
PDVSA: Seeks $1B Expansion Loan From Japanese Bank
--------------------------------------------------
Petroleos de Venezuela S.A. (PdVSA), Venezuela's state oil
company is negotiating a US$1 billion loan from a Japanese bank,
according to a report by South American Business Information.
The Company intends to use the loans' proceeds to fund an
increase in natural gas production at Anaco. However, said the
report, details on the projec, as well as PdVSA's level of
involvement is yet to be revealed.
The Company is also seeking funding of its Tamporo light oil
field, one of its largest finds in the recent years, said the
report. However, it is not clear whether part proceeds from the
Japanese loan would be channeled to this project.
PdVSA has just recovered from a nationwide strike that cut its
production by as much as 90% at one point. The strike shook the
world's fifth largest producer of oil, before it fizzled out
earlier this year.
The strike unsuccessfully tried to chase President Hugo Chavez
from his office. Instead, some 18,000 workers were terminated
from PdVSA.
CONTACT: Petroleos de Venezuela S.A.
Apdo 169
Avenida Libertador La
Campina
Caracas
Venezuela 1010-A
Phone: +58 212 708 4111
Fax: +58 212 708 4661
Home Page: http://www.pdvsa.com
Contacts:
Ali Rodriguez Araque, Chairman
Jorge Kamkoff, Vice Chairman
Jose Rafael Paz, Vice Chairman
***********
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-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2746.
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