/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030919.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, September 19, 2003, Vol. 4, Issue 186 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: US Wants Taxes Paid in US Dollars BOTICA DEL ARCON: Receiver Ends Credit Verification Process CONSORCIO EMPRESARIO: Court Sets Deadlines For Official Reports CRESA: Receiver Wraps Up Verification Process DEPLAS: Court Authorizes Reorganization DURBIKE: Enters Bankruptcy By Court Order H Y L GERMIGNIANI: Credit Authentication Process Ends Today JAL AGROPECUARIA: Court Assigns Receiver For Bankruptcy LATIN AMERICAN FUND: Aberdeen International Winds Up Fund LEGGERA: Official Claims Processing Ends On October 10 MEDICHECK: Receiver To Prepare Individual Reports MERCO ANDINO: Accountant Takes Over As Receiver OSHIMA: Creditors Proofs of Claim Due Today * Citibank Seeks to Sell Assets for 2023 Floating Rate Bonds B A H A M A S DIRECTV LA: Motion To Approve Information Disclosure B A R B A D O S LORD'S CASTLE/CLUB ROCKLEY: Barbados Govt. Extends Helping Hand B R A Z I L ODEBRECHT OVERSEAS: S&P Assigns Notes 'B+' Rating TELEMAR: Court Injunction Costing Telecom Operators Daily VARIG/TAM: Sign Merger Agreement M E X I C O GRUPO MEXICO: Contemplates Own Power Generation Plant P A N A M A BANCO GENERAL: Moody's Withdraws All Ratings P E R U SANTA ISABEL: Cencosud's Interest Not Waning SIMSA: Mgt. Seeking Operational Financing Bids T R I N I D A D & T O B A G O UTC: Shareholders Jittery Over CEO Retirement U R U G U A Y BNL: Prepares For Uruguayan Exit V E N E Z U E L A CERRO NEGRO: Senior Secured Debt Ratings Raised to `B+' HAMACA: Debt Ratings Upgraded To `B+' PETROZUATA FINANCE: Fitch Upgrades Debt Ratings To `B+' SINCOR: Fitch Ups Debt Ratings, Removes Watch Positive Status SIDOR: Commission Created To Enhance Import Revenues - - - - - - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: US Wants Taxes Paid in US Dollars -------------------------------------------------------- The United States is calling for the Argentinean government to try to convince its flagship airline, Aerolineas Argentinas, to pay taxes in US dollars until 25 September 2003, according to a report released by South American Business Information. The US authorities complained last week that Aerolineas Argentinas pays airport taxes in pesos while the other airlines, including American Airlines, United and Delta, and the express delivery companies UPS and Fed Ex, pay their airport taxes in US dollars. The US government warned it will impose an extra tax on the airline every time one of its aircraft lands on US territory in order to make up for the higher taxes paid by US airlines in Argentina. But Aerolineas Argentinas responded, saying, it will continue to pay all airport taxes in Argentinean pesos until it is ordered by the Court of Justice to pay them in US dollars. BOTICA DEL ARCON: Receiver Ends Credit Verification Process ----------------------------------------------------------- Mr. Alberto Arango, who is receiver for Mar del Plata company Botica del Arcon, closes the credit verification process today. As ordered by the court, the receiver will now prepare the individual reports, which must be presented to the cour on October 31 this year. The Company received permission to undergo reorganization from the province's Civil and Commercial Tribunal. Court No. 7 approved its motion for "Concurso Preventivo", reported local news source Infobae. The Court instructed the receiver to prepare a general report on the process and have it filed on December 15 this year. A general assembly will be held on June 24, 2004, according to an earlier report from the Troubled Company Reporter - Latin America. CONTACT: Alberto Arango Rawson 2272 Buenos Aires CONSORCIO EMPRESARIO: Court Sets Deadlines For Official Reports --------------------------------------------------------------- Buenos Aires Court No. 8 has set the deadlines for the receiver's reports. Argentine news portal Infobae relates that the individual and general reports are due for filing at the court on February 3, and March 16, 2004, respectively. An earlier report by the Troubled Company Reporter - Latin America revealed that the Company is undergoing bankruptcy after the court announced it is "Quiebra Decretada". The receiver, Mr. Juan Carlos Rama, will verify creditors' claims until November 17 this year. The receiver will prepare the individual reports after this process is completed. CONTACT: Consorcio Empresario de Ahorro para Fines Determinados: 7th Floor, Room 17 Ave. de Mayo 953 Buenos Aires Juan Carlos Rama 8th Floor, Room 54 Viamonte St. 1453 Buenos Aires CRESA: Receiver Wraps Up Verification Process --------------------------------------------- Ms. Beatriz Laura Colucci, the court-appointed receiver of Argentine company C.R.E.S.A. S.A., closes the verification process for the Company's bankruptcy today. According to an earlier report by the Troubled Company Reporter, Buenos Aires' Court No. 2 holds jurisdiction over the case. The court ordered the receiver to prepare the individual reports. These must be presented to the court on November 3 this year. She is also asked to prepare a general report and submit it to the court on December 17. CONTACT: Beatriz Laura Colucci Eduardo Acevedo 217 Buenos Aires DEPLAS: Court Authorizes Reorganization --------------------------------------- The Civil and approved a motion for "Concurso Preventivo" filed by local company Deplas S.R.L., giving the Company the go signal for its reorganization process. Without revealing the name of the receiver, local news source Infobae relates that the deadline for the individual reports is October 10 this year. These reports are prepared after the credit verification process is completed. The report adds that an informative audience will be held on December 30 this year. DURBIKE: Enters Bankruptcy By Court Order ----------------------------------------- Buenos Aires Court No. 14 orders the bankruptcy of local company Durbike S.A., relates Argentine news portal Infobae. Working with Clerk No. 28, the court designated Mr. Alberto Jorge Rotenberg as the receiver for the process. Creditors must present their claims to the receiver for verification before the October 14 deadline expires. After that, the receiver will prepare the individual reports, which must be submitted to the court on November 25. The receiver must also make a general report, which is due for filing on February 10 next year. CONTACT: Alberto Jorge Rotenberg Ave. Cordoba 1336 Buenos Aires H Y L GERMIGNIANI: Credit Authentication Process Ends Today ----------------------------------------------------------- Creditors of Cordoba-based Hugo y Leandro Germigniani S.H. must present their proofs of claims to the receiver for verification as the process ends today. Hugo y Leandro Germigniani S.H., the receiver assigned to the process, will now prepare the individual reports, which must be passed to the court on November 7 this year. The general report must be submitted on February 27 next year. An earlier report by the Troubled Company Reporter - Latin America revealed that the Civil and Commercial Tribunal of Cordoba ordered the Company's bankruptcy. The province's Court No. 26 holds jurisdiction over the case. CONTACT: Hugo y Leandro Germigniani S.H. Lavalleja 1633 Barrio Alta Cordoba JAL AGROPECUARIA: Court Assigns Receiver For Bankruptcy ------------------------------------------------------- Court No. 4 of Buenos Aires assigns Ms. Mariana ALicia Nadales as receiver for Jal Agropecuaria S.A., reports local news source Infobae. The court recently ordered that the Company is "Quiebra Decretada". The receiver has instructions to verify credit claims until November 10 this year. After that, he is to prepare the individual reports, followed by a general report on the process. However, the source did not reveal whether the court has set the deadlines for the filing of these reports. The city's Clerk No. 7 aids the court on the case. The Court will see the liquidation of the Company's assets at the end of the process. Proceeds will be used to reimburse creditors. CONTACT: Mariana Alicia Nadales Hipolito Yrigoyen 1349 Buenos Aires LATIN AMERICAN FUND: Aberdeen International Winds Up Fund --------------------------------------------------------- The Board of Directors of the Aberdeen International Fund wish to notify shareholders of the Latin American Fund that, in accordance with Article 13.03 of the Articles of Association of the company, all outstanding shares in the Latin American Fund will be compulsorily redeemed on October 17, 2003. The Directors of the company regret the need for this decision, but it was taken because throughout the six week period commencing on July 18, 2003 and ending on August 29, 2003 the aggregate value of the Fund was less than US$15,000,000. Under Article 13.03 of the Articles of Association of the company, the Directors have the power to compulsorily redeem all participating shares when the fund value falls below US$15,000,000 for a six week period. The actual net asset value of the Fund on August 29, 2003 did not exceed $2,880,000. The size of the Fund has diminished to the point where it will be difficult to provide an appropriate level of diversification of the investment portfolio. In addition, the fixed running costs of the Fund may start to have an adverse effect on the performance of the share price and it is not anticipated that sufficient new monies will be received by the Fund to overcome this in the short term. For these reasons the Directors have determined that the shares in the Fund will be compulsorily redeemed on October 17, 2003. Shareholders may elect to reinvest the proceeds of this redemption (free of initial or conversion charge), in the Emerging Market Fund of the company. The Emerging Markets Fund was formed as a result of a name change and a change in investment objectives of the Turkish Opportunities Fund following shareholder approval on September 5, 2003. Shareholders in the Latin American Fund of the company will have the opportunity to reinvest their holdings in the Emerging Markets Fund when the Emerging Markets Fund opens on October 17, 2003. To be effective this instruction form must be received by the Administrator no later than 12 Noon (Dublin time) on October 16, 2003. Copies of the Prospectus of the company, the Key Features Documents and the latest Fund Factsheets are available upon request free of charge from the Administrators' office, BNP Paribas Security Services Limited (formerly known as Cogent Investment Operations Ireland Limited), 6 George's Dock, IFSC Dublin 1, Ireland, (Tel: 00 353 1 670 2115). Shareholders are advised to consult these documents before deciding whether to reinvest in the Emerging Markets Fund. CONTACT: ABERDEEN INTERNATIONAL FUND PLC Contact: Mr. Leon Thomas Phone: (+44 020) 7463 6321 NCB STOCKBROKERS LIMITED Contact: Ms Tara O' Grady Phone: (+3531) 611 5907 LEGGERA: Official Claims Processing Ends On October 10 ------------------------------------------------------ The credit verification process for the bankruptcy of Buenos Aires company Leggera S.A. ends on October 10 this year. According to a report by local news source Infobae, the Company was declared "Quiebra Decretada" by the city's Court NO. 5. Working Clerk No. 10, the court assigned Ms. Silvia Pirraglia as the Company's receiver, who will verify creditors' claims. This process is to investigate the existence, nature and amount of the Company's debts. The Court also requires the receiver to prepare individual and general reports on the process and pass them to the court on November 21, 2003, and February 5, 2004, respectively. CONTACT: Leggera S.A. Carlos Calvo 2907 Buenos Aires Silvia Pirraglia Talcahuano 426 Buenos Aires MEDICHECK: Receiver To Prepare Individual Reports ------------------------------------------------- Mr. Jorge Jewkes, the receiver of Argentine company Medicheck S.A. will start preparing the individual reports for the Company's bankruptcy as the credit verification process ends today. These reports must be submitted to the court on November 3. An earlier report by Infobae said that Buenos Aires Court No. 25 ordered that the Company is "Quiebra Decretada", putting the Company under bankruptcy. At the end of the process, the Company's assets will be liquidated to reimburse its creditors. The Troubled Company Reporter - Latin America earlier said that the receiver will also prepare a general report and pass it to the court on December 16 this year. This report is to be prepared after the individual reports are processed at court. CONTACT: Jorge Jewkes Viamonte 1653 Buenos Aires MERCO ANDINO: Accountant Takes Over As Receiver ----------------------------------------------- Ms. Susana Graciela Marino, as accountant from Buenos Aires, takes over Merco Andino S.A. as receiver for the Company's bankruptcy. Infobae reports that the city's Court No 14 and Clerk No. 27 are working on the case. Creditors must present their claims for verification before November 17 this year. The individual reports, which are prepared after the credit verification is completed, must be submitted to the court on February 4 next year. The general report is to be filed on March 17. CONTACT: Susana Graciela Marino Uruguay 560 Buenos Aires OSHIMA: Creditors Proofs of Claim Due Today ------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires company Oshima S.A. ends today, September 19, according to an earlier report by the Troubled Company Reporter - Latin America. The receiver, Mr. Abraham Elias Gutt, will now prepare the individual reports, which must be submitted to the court on October 29. He is also required to prepare a general report on the process. The court instructed Mr. Gutt to submit this report on December 11 this year. The Company entered bankruptcy on orders from the city's Court No. 21. Local news source Infobae said that the Company was deemed "Quiebra Decretada" by the court. CONTACT: Abraham Elias Gutt Tucuman 1484 Buenos Aires * Citibank Seeks to Sell Assets for 2023 Floating Rate Bonds ------------------------------------------------------------ Notice to the Holders of Republic of Argentina Collateralized Floating Rate Bonds Due 2023 (USD Discount Series L): Pursuant to Condition 6(b) of the Terms and Conditions of the Bonds (the "Terms and Conditions",), Citibank N.A., as Fiscal agent (the "Fiscal Agent") has, at the request of the holders of at least 25% of the principal amount outstanding of the Bonds, instructed the Federal Reserve Bank of New York, as Collateral Agent, to liquidate the necessary amount of collateral to allow the Fiscal Agent to pay the interest payment that was due on the Bonds on May 31, 2003. Pursuant to Condition 2(c) of the Bonds, the Fiscal Agent has set September 18, 2003 as the new record date (the "New Record Date") for the payment of the above interest. Payment will be made to the persons in whose name the Bonds are registered at the close of business in New York City as of the New Record Date. Pursuant to Condition 2(c), payment of the above interest will be made on September 25, 2003, five Business Days (as defined in the Terms and Conditions) after the New Record Date. Source: Citibank N.A. Fiscal Agent ============= B A H A M A S ============= DIRECTV LA: Motion To Approve Information Disclosure ---------------------------------------------------- DirecTV is a party to separate contracts with over 50 programmers through which it acquires the television channels and programming it sells to its customers. All the Contracts contain similar confidentiality provisions, which generally prohibit the disclosure of the contract terms as well as all data, summaries, reports or information of all kinds, acquired, devised or developed in any manner from the other party's personnel or files. DirecTV permits the disclosure of the Confidential Information with a written consent of a programmer or, to the extent necessary, to comply wit the law or a valid Court order. Joel A Waite, Esq., at Young Conway Stargatt & Taylor, LLP, in Wilmington, Delaware, informs the Court that the Debtor is in the process of developing and presenting to the Official Committee of Unsecured Creditors its post-emergence business plan, which will be the basis for a reorganization plan. The Committee's counsel, Pachulski, Stang, Ziehl, Young, Jones & Weintraub PC, and its financial advisor, Huron Consulting Group LLC, asked the Debtor to disclose both the historical and projected programming pricing information and other non-public data for the Committee to understand, assess and ultimately support the Debtor's business plan and reorganization plan. Mr. Waite reports that the Debtors and the Committee's professionals entered into an agreement to accommodate the disclosure request and protect the interests of the affected programmers as well as to protect the Confidential Information from being revealed to other programmers or competitors. Both parties agreed to the restricted disclosure of the Confidential Information solely to specified personnel from Pachulski and Huron. These personnel are authorized to receive the Confidential Information and are specifically instructed not to disclose any of the information to any person or entity, including the Committee members. In accordance to the terms of the Contracts and in an attempt to avoid burdening the Court with this matter, DirecTV attempted by letter to secure the written consent of each of the affected programmers to the restricted disclosure of the Requested Information. To date, not all of the programmers gave their consent. Judge Walsh believes that the limited disclosure to Pachulski and Huron in accordance with the terms of the parties' Non-Disclosure Agreement is necessary and not in violation of confidentiality provisions in the Contracts between DirecTV and its programmers. At the Debtor's request, Judge Walsh approves the disclosure of the non-public historical and projected programming pricing information and other data to Pachulski and Huron, provided that the disclosure complies with the terms of the parties' Non- Disclosure Agreement. Judge Walsh warns DirecTV from removing the designation of "Restricted Disclosure Only" or consenting to the disclosure of the Contracts and the information or data to the Committee Advisors, without the prior written consent of the affected programmers or, in the absence of the consent, entry of a Court order. Judge Walsh makes it clear that the disclosure must be made in strict compliance with the Non-Disclosure Agreement. Any breach of the Non-Disclosure Agreement may be enforced by the parties and by the affected programmers, including, without limitation by enforcing or pursuing the rights and remedies, as if the affected programmer were an express party to, or a third party beneficiary of, the Non-Disclosure Agreement. The Non-Disclosure Agreement will not be amended without the consent of the affected programmers. (DirecTV Latin America Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., 609/392-0900) =============== B A R B A D O S =============== LORD'S CASTLE/CLUB ROCKLEY: Barbados Govt. Extends Helping Hand --------------------------------------------------------------- The government of Barbados has offered to help the owners of two closed hotels, Sam Lord's Castle and Club Rockley, reopen doors to business as soon as possible, says the Barbados Nation. "We are working with our partners and with the owners of both hotels to see how fast we can get them back into operation," Minister of Tourism Noel Lynch said at Tuesday's Press conference. Barbados needs the room stock that has gone dormant with the recent closure of the two properties, which account for over 300 rooms between them. Sam Lord's, which owes the National Insurance millions of dollars, is reported to be indebted to creditors to the tune of $40 million and Rockley in excess of $16 million. =========== B R A Z I L =========== ODEBRECHT OVERSEAS: S&P Assigns Notes 'B+' Rating ------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' foreign currency rating to the up-to US$100 million guaranteed notes due 2005 issued by Odebrecht Overseas Ltd. (OOL) and unconditionally and irrevocably guaranteed by Construtora Norberto Odebrecht S.A. (CNO). Simultaneously, Standard & Poor's also affirmed its 'B+' foreign currency and 'BB-' local currency corporate credit ratings assigned to CNO. The outlook remains stable. The ratings on CNO reflect the company's long-standing operations and expertise in the engineering and construction (E&C) industry, a quality backlog that incorporates significant project and geographic diversification and growth and profitability improvement consistently reported in the past couple of years. These positives are tempered by the inherent volatility and cyclicality of the construction business, CNO's still aggressive financial profile, and some backlog concentration in public works and more volatile countries. "The stable outlook on the local currency rating reflects Standard & Poor's expectations that CNO will be able to maintain satisfactory profitability and cash flow generation, while continually improving its financial profile by reducing overall debt leverage and reducing refinancing risk concentrated in several large maturities," said Standard & Poor's credit analyst Reginaldo Takara. CNO is one of the largest E&C companies in Brazil, with net revenues of US$543 million and EBITDA of US$69 million in the first six months of 2003. The company reported a consolidated debt of US$391 million as of June 2003, which is added to by approximately US$90 million of contingent debt (debt at parent company Odebrecht S.A. and guaranteed by CNO). ANALYST: Reginaldo Takara, Sao Paulo (55) 11-5501-8932 TELEMAR: Court Injunction Costing Telecom Operators Daily --------------------------------------------------------- Telemar president Luiz Eduardo Falco said that the court injunction adjusting regulated prices using the IPCA inflation index is costing Brazilian wireline operators combined revenues of BRL10 million (US$3.4 million) a day, relates newspaper Valor Economico. According to an earlier report by Business News Americas, the telecoms operator has filed an appeal with the Federal Regional Tribunal (TRF) against the court injunction, which was put in place by a Brasilia federal court while it deliberates the merits of the case. Falco, who was speaking before a scheduled meeting with Daniel Goldberg, economic law secretary at the Brazilian justice ministry, said he was confident the court would rule in favor of IGP-DI, as laid down in the concession contracts. His stance is backed by telecom operators and regulator Anatel. The government, through the federal public ministry, argues that the IGP-DI inflation figure should be dropped because it is much higher than the IPCA index. VARIG/TAM: Sign Merger Agreement -------------------------------- Brazil's two biggest airlines Viacao Aerea Rio-Grandense SA (Varig) and TAM Linhas Aereas SA have reached an agreement to create a new carrier that combines their staff and fleets, reports Bloomberg. The deal will pave the way for Varig, which defaulted on its debts last year, to negotiate with creditors including General Electric Co., state oil company Petroleo Brasileiro SA's fuel unit, Banco do Brasil SA, airport authority Empresa Brasileira de Infra-Estrutura Aeroportuaria and Uniao de Bancos Brasileiros SA. After the transaction, Varig, which is controlled by its 18,293 employees, plans to shed 2,500 jobs. TAM will own as much as 35% of the new company and Varig will hold a 5% stake. Varig and TAM have 120 days to complete the transaction, with a grace period of another 90 days on the deadline, according to a statement sent to the Sao Paulo stock exchange from both airlines. The plan for creating a new company must be approved by Brazil's antitrust agency, Varig and TAM said. =========== M E X I C O =========== GRUPO MEXICO: Contemplates Own Power Generation Plant ----------------------------------------------------- In a bid to reduce its power bills, Mexican mining and metals company Grupo Mexico (G-Mex), the world's third largest copper producer, plans to install a power generation plant of its own, says local daily La Reforma. G-Mex international relations VP Juan Rebolledo Gout, however, admitted that the scheme is far from definite, as energy is not the Company's area of expertise. Energy represents 30-35% of the Company's operating costs, meaning the 50% hike in energy rates over the last two years has diminished its competitive edge worldwide. For example, G-Mex pays US$0.085/kWh in northern city Sonora, while the same service in Texas costs US$0.04. Furthermore, Mexico's industrial sector requires long-term contracts with state power company CFE, but the latter is not equipped to handle such needs, Rebolledo said. Grupo Mexico, burdened by the financing of its 1999 purchase of metals maker Asarco Inc., defaulted on more than US$1.3 billion of debt in the past two years after copper prices fell to record lows. The Mexico City-based company has since persuaded dozens of banks, hundreds of bondholders and the U.S. State Department to stretch out payments as it struggles to return to profit. The Company had a net loss of US$3.6 million in the second quarter, compared with a profit of US$65 million in the same period last year, according to U.S. GAAP accounting. Grupo Mexico's sales slipped 10% to US$591 million from US$654 million. CONTACT: GRUPO MEXICO S.A. DE C.V. Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F., Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 Home Page: http://www.gmexico.com Contacts: Germ n Larrea Mota-Velasco, Chairman and CEO Xavier Garca de Quevedo Topete, President and COO Alfredo Casar P,rez, COO, Ferrocarril Mexicano Daniel Ch vez Carre>n, COO, Industrial Minera M,xico Daniel Tellechea Salido, VP and Administration and Finance President =========== P A N A M A =========== BANCO GENERAL: Moody's Withdraws All Ratings -------------------------------------------- Moody's Investors Service has withdrawn all of its ratings for Banco General S.A., Panama's second largest private sector bank as of December 31, 2002. The ratings withdrawn were: - Long Term Foreign Currency Deposits: Ba2 - Short Term Foreign Currency Deposits: Not-Prime - Bank Financial Strength: D The bank has no rated foreign currency debt outstanding. ======= P E R U ======= SANTA ISABEL: Cencosud's Interest Not Waning -------------------------------------------- Chilean Cencosud supermarket chain still has its eyes on Supermercados Santa Isabel S.A., which operates the Santa Isabel, Plaza Vea and Minisol outlets in Peru, Cencosud president, Mr. Horst Paulmann. South American Business Information reports that Cencosud is not the only company eyeing for the assets belonging to Dutch Royal Ahold. Chilean Falabella and the Peruvian Corporacion Wong are also considering the purchase of Santa Isabel. Cencosud recently bought the Santa Isabel chain in Chile. The divestment of Santa Isabel is part of Ahold's strategic plan to restructure its portfolio to focus on high-performing businesses and to concentrate on its mature and most stable markets. CONTACT: Royal Ahold N.V. P.O. Box 3050 1500 HB Zaandam Netherlands Phone: +31 (0)75 659 57 20 Fax: +31 (0)75 659 83 02 Home Page: http://www.ahold.com SIMSA: Mgt. Seeking Operational Financing Bids ---------------------------------------------- The shareholders of Peruvian zinc miner San Ignacio de Morococha (Simsa) gave the Company's management approval to contact possible interested parties and analyze measures to obtain financing for its operations. Approval came at a meeting held September 12, says Business News Americas. Low zinc prices hit the Company, which mines at San Vicente in the Chanchamayo area of Junin department in central Peru, very badly, prompting it to file for bankruptcy protection in early 2002. It subsequently formed a strategic alliance with Swiss resources group Glencore providing it with a US$6-million credit, guaranteed by its Monobamba I and II electric generators for US$4.5mn and its Callao mineral deposit for US$1.5 million. CONTACT: COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA Calle Uno 795 - Urb. Corpac San Isidro - Lima 27 Phone: 224-3432 Fax: 224-1321 E-Mail: simsa@simsa.com.pe ================================= T R I N I D A D & T O B A G O ================================= UTC: Shareholders Jittery Over CEO Retirement --------------------------------------------- Clarry Benn is close to retiring as the executive director of the Unit Trust Corporation. This possible occurrence, according to the Trinidad Guardian, seemed to have created apprehension among unit holders. The Public Services Association has demanded that Clarry Benn remain as the UTC executive director. In response to the demand, Renrick Nickie, UTC executive manager marketing, operations and information technology, who is reportedly Prime Minister Patrick Manning's pick for Benn's position, said Benn's retirement shouldn't cause any concern. He said a financial institution does not fall apart only because of the retirement of its chief executive. "If both Clarry Benn and I weren't here next year, the managers would take Unit Trust to $15 billion (in assets) because of the plans we have in place and that wouldn't be a surprise to me because the (UTC) people are competent," Nickie said. "If we had a set of mediocre people then, of course, I would be very fearful about the types of numbers we are projecting." Nickie explained while a company's chief executive is ultimately accountable for its performance, it is the organization's managers that run the day-to-day affairs and its staff, which ensure the job gets done. The chief executive's job, he said, is to ensure the entire operation runs efficiently. ============= U R U G U A Y ============= BNL: Prepares For Uruguayan Exit -------------------------------- Mario Girotti, general manager of Italy's Banca Nazionale del Lavoro (BNL), told international analysts at a tele-conference Tuesday that the bank is preparing to exit the Uruguayan financial market, relates Business News Americas. BNL first spoke of the planned exit in February. Citing low profitability levels, BNL told Uruguay's central bank at that time that it will cease its operations in the country on June 30. BNL expects its departure from Uruguay to take between four to six months through a sale or acquisition operation dependent on interested parties, which have so far failed to appear, sources said. According to the sources, any potential buyer would have to be a bank with a recognized trajectory and adequate solvency levels as stipulated by Uruguay's central bank. BNL is a small institution focused on private banking operations so any buyer must be interested in either extending its own private banking portfolio or developing BNL's existing business, the sources said, adding the fate of BNL's current Uruguayan operation has yet to be determined. ================= V E N E Z U E L A ================= CERRO NEGRO: Senior Secured Debt Ratings Raised to `B+' ------------------------------------------------------- Fitch Ratings raised the senior secured debt ratings of Venezuelan heavy oil strategic association Cerro Negro Finance, Ltd. to 'B+' from 'B' and removed the Rating Watch Positive status. The rating actions apply to the following debt securities: -- US$200 million 7.33% bonds due 2009; -- US$350 million 7.90% bonds due 2020; -- US$50 million 8.03% bonds due 2028. Project Update: Cerro Negro, the second strategic association, has also been operating close to original expectations since achieving financial completion in November 2002. At the end of June 2003, Cerro Negro's production rates were averaging greater than 121,000 bpd of EHCO and approximately 106,000 BPD of SCO. Cerro Negro's economics continue to track close to original expectations as the highest annual Maya breakeven price is projected to be less than US$13.00/ bbl and projected annual DSCRs to average 15 times (x) with a minimum of 2x. Cerro Negro is owned 41.67% by an ExxonMobil subsidiary, 41.67% by a PDVSA subsidiary and 16.67% by a Veba Oel subsidiary. (See FITCH NOTES below for more info) HAMACA: Debt Ratings Upgraded To `B+' ------------------------------------- Fitch Ratings upgraded the senior secured debt ratings of Venezuelan heavy oil strategic association Petrolera Hamaca, S.A. (Hamaca) to 'B+' from 'B' and removed the Rating Watch Positive status. The rating actions apply to the following debt securities: Total senior project loans of US$1.1 billion, consisting of: -- US$627.8 million senior agency loan due 2018; -- US$470 million senior bank loan due 2015, borrowed on a several (not joint) basis 30% by Corpoguanipa, S.A., a subsidiary of PDVSA, and 70% by Hamaca Holdings L.L.C. Project Update: Hamaca, the fourth heavy oil strategic association, is currently under construction and continues to track close to original expectations. As of June 2003, overall construction was approximately 86% complete. The project has been producing and blending up to 80,000 bpd of EHCO. Hamaca's completion timeline is still in accordance with the financing arrangements, notwithstanding the forced shutdown for approximately two months earlier this year and an estimated month of cumulative labor stoppages since construction began in June 2000. Initial production of commercial syncrude is anticipated for mid-2004, followed by final completion testing to be scheduled by mid-2005. Similar to the other three strategic associations, Hamaca debt holders benefit from a completion guarantee with recourse to the sponsors until financial completion is achieved no later than October 2005. Hamaca is owned 40% by a ConocoPhillips subsidiary, 30% by a ChevronTexaco subsidiary, and 30% a PDVSA subsidiary. (See FITCH NOTES below for more info) PETROZUATA FINANCE: Fitch Upgrades Debt Ratings To `B+' ------------------------------------------------------- Fitch Ratings upgraded the senior secured debt ratings of Venezuelan heavy oil strategic association Petrozuata Finance Inc. to 'B+' from 'B' and removed the Rating Watch Positive status. The rating actions apply to the following debt securities: -- US$300 million 7.63% series A bonds due 2009; -- US$625 million 8.22% series B bonds due 2017; -- US$75 million 8.37% series C bonds due 2022. Project Update: Petrozuata, the first of the heavy oil strategic associations, has been operating close to original expectations since achieving financial completion in March 2002. In the second quarter of 2003, Petrozuata averaged approximately 130,000 barrels per day (bpd) of extra heavy crude oil (EHCO) and approximately 112,000 bpd of syncrude (SCO). Over the medium-term, Petrozuata's annual debt service coverage ratios (DSCRs) are projected to be lower than originally projected due to an estimated US$100 million in additional capital expenditures between 2002 and 2005. These supplementary investments are required to improve Petrozuata's operations at its upgrading facilities. Although anticipated DSCRs are lower than originally expected, the project's economics remain strong for the assigned rating category. Once Petrozuata has completed its mandatory capital expenditures, annual Maya breakeven prices are projected to be in the US$10.00 to $11.00 per barrel (bbl) range. Maya prices have averaged US$16.00/ bbl over the past ten years. Petrozuata is owned 50.1% by a ConocoPhillips subsidiary and 49.9% by a PDVSA subsidiary. (See FITCH NOTES below for more info) SINCOR: Fitch Ups Debt Ratings, Removes Watch Positive Status ------------------------------------------------------------- Fitch Ratings upgraded the senior secured debt ratings of Venezuelan heavy oil strategic association Sincrudos de Oriente Sincor, C.A. (Sincor) to 'B+' from 'B' and removed the Rating Watch Positive status. The rating actions apply to the following debt securities: -- US$1.2 billion senior bank loans borrowed by the sponsors of Sincor Finance Inc. Project Update: Sincor, the third and largest of the heavy oil strategic associations, recently posted operating parameters averaging greater than 160,000 bpd of SCO (an estimated 197,000 bpd of EHCO), exceeding the specified levels of the first-stage completion. Currently, Sincor is finalizing all other requirements of the first-stage completion, and expects to receive formal certification of completion before the end of September 2003. Upon achieving completion under the first-stage test, Sincor sponsors will replace the completion guarantee with a limited guaranteed debt amount. The limited guarantee will remain in place until the successful completion of the subsequent completion test. Sincor is planning a US$100 million debottlenecking program that should increase average SCO production rates up to 180,000 bpd from current levels. The incremental output capacity should be completed prior to the final completion test required by 2007. Sincor's economics continue to track original expectations, exceeding base case annual DSCRs that were projected to average 2x, with a minimum of 1.9x in the first year of commercial SCO production. Over the medium term, Sincor's highest annual West Texas Intermediate (WTI) breakeven prices are projected to be less than US$10.00/ bbl. WTI prices have averaged US$21.00 over the past ten years. Sincor is owned 47% by a TOTAL subsidiary, 38% by a PDVSA subsidiary and 15% by a Statoil subsidiary. FITCH NOTES: The rating actions reflect the normalization of the operational and financial performance at each of the heavy oil strategic associations following the national strike that virtually paralyzed Venezuela's oil industry between December 2002 and February 2003. Although the standalone credit profile of each of the four heavy oil projects suggests a rating level significantly higher than that assigned, the Venezuelan sovereign's credit profile continues to constrain their credit quality. Notwithstanding this limitation, legal and structural features of the related financings allow the projects to be rated two notches above the sovereign's assigned long-term foreign currency rating. In June 2003, Fitch upgraded the long-term foreign currency rating of the Bolivarian Republic of Venezuela to 'B-' from 'CCC+' and the long-term local currency (Venezuelan bolivar) rating to 'B-' from 'CCC'. The Rating Outlook for Venezuela is Stable. Fitch believes that the probability of a sovereign- related interruption in oil operations similar in scale to that recorded at the beginning of 2003 to be low. Given the projects' exclusive reliance on critical raw material inputs from Petroleos de Venezuela S.A. (PDVSA), any future prolonged work stoppages at state-owned PDVSA or its affiliates would likely hinder the operational and financial viability of the heavy oil strategic associations. The combination of strike-related operational interruptions at PDVSA and the temporary suspension of Venezuela's oil export flows rendered the heavy oil strategic associations unable to generate revenues during a two-month period. Despite the absence of internal cash flows, the projects were able to maintain adequate liquidity, covering ongoing operating and financial obligations during this period. The four strategic heavy oil associations resumed oil exports immediately after the strike ended in late February. By the second quarter of 2003, production volumes at all four projects had either recovered to, or exceeded, pre-strike levels. It is important to note that the national labor action did not permanently impair any of the projects' facilities, infrastructure or labor force. During the two-month forced shutdown, the projects implemented cash preservation efforts and conducted maintenance on their facilities. These efforts, coupled with the benefits afforded by the prevailing strong crude oil price environment, have helped to mitigate the strike's adverse effect on the heavy oil projects' 2003 financial performance. Hence, the strategic associations' debt service capacity for the current calendar year is projected to come in line with original expectations. Petrozuata, Cerro Negro, Sincor and Hamaca are all domiciled in Venezuela, and are involved in the development of the country's extra heavy crude oil reserves. Debt holders at each project solely rely on the ability of the project to generate sufficient cash flows from operations to meet scheduled debt service obligations. Each project's revenues are largely derived from the sale of SCO exports. SIDOR: Commission Created To Enhance Import Revenues ---------------------------------------------------- Venezuela's state foreign currency board Cadivi announced that it has agreed with Venezuelan steelmaker Sidor and federal development bank BANDES to set up a commission to study Sidor's debt owed to foreign suppliers, relates Business News Americas. The objective of the creation, according to Cadivi in its web site, is to speed up the process of importing the goods and materials that Sidor requires. "We're trying to perfect mechanisms that will allow Sidor to operate normally, as all the imports needed mean the company deserves special treatment," said Sidor chairperson Maritza Izaguirre. Puerto Ordaz-based Sidor, with capacity of some 3.5Mt/y, is Venezuela's largest steelmaker. Following a restructuring completed in June this year, 59.7% of Sidor belongs to the Amazonia consortium, made up of Mexico's Hylsamex of the Alfa group and Tamsa of the Techint group; Argentina's Siderar, also of Techint; Brazil's Usiminas and Venezuela's Sivensa. The other 40.3% belongs to the Venezuelan state. 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/ *********** 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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