/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031007.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, October 7, 2003, Vol. 4, Issue 198 Headlines A R G E N T I N A AGROPECUARIA: Receiver Ends Credit Verification Process AHOLD: Fitch Maintains Rating Watch Negative ALICIA PERRONE: Court Approves Bankruptcy Motion AXESOR: Court Assigns Receiver For Reorganization BACK SWING: Submits Reorganization Petition To Court BANCO RIO: Shareholders Approve Authorized Capital Boost CAISSA: Court Approves Official Reorganization CASINOS: Seeks Court's OK For Reorganization CENTRAL COSTANERA: Cuts New Debt Accord With Mitsubishi CORREDORES VIALES: Reorganization Converted to Bankruptcy CTI MOVIL: Slim To Invest $150M In Technology Upgrades DEMAN: Court Approves Petition For Reorganization IMPRESSION: Court Orders Bankruptcy INFORMATION: Credit Verification For Bankruptcy Ends Today INSTITUTO DON JAIME: Court Expects Individual Reports Today LINEA 543: Claims Filing Period Ends December 3 PETROBRAS ENERGIA: To Make $8M Interest Payment SOINCO: Individual Reports Due Today TEXTIL IMPERIO: Reorganization Ends in Bankruptcy TRANSPORTADORA PATAGONICA: Receiver Prepares Individual Reports VISION ARGENTINA: Court Sets Schedule for Bankruptcy Process B R A Z I L AES TIETE: Fitch Lowers Certificates Grantor Trust to 'B-' MRS LOGISTICA: Nears 86Mt Moved Cargo Target SKY BRASIL: Moody's Downgrades Ratings on $200M Of Notes USIMINAS: S&P Assigns BBB+ Rating, Affirms Positive Outlook C O L O M B I A BANCAFE: Three Groups Contemplating Privatization Move BAVARIA: Moody's Assigns Ba3 Rating to $400M Bonds SEVEN SEAS: Updates Reorganization Details, Contract Termination E C U A D O R PETROECUADOR: Upstream Unit To Counter Sue Drillfor J A M A I C A JPSCO: Unions Signal Willingness to Negotiate Further M E X I C O GRUPO TMM: Tax Attorney Files For Review on VAT Ruling NEGT: Bankruptcy Court Authorizes New Company Name P E R U SIDERPERU: Equilibrium Downgrades Rating to Default V E N E Z U E L A SIDOR: Expects Boost in DIR After Completing $13.5M Upgrade - - - - - - - - - - ================= A R G E N T I N A ================= AGROPECUARIA: Receiver Ends Credit Verification Process ------------------------------------------------------- Creditors of Buenos Aires-based Agropecuaria Holambra S.R.L. must have their claims authenticated by the Company's receiver as the deadline for the verification process expires today. As ordered by the court, the receiver, Mr. Jorge Gomez, will prepare the individual reports on the results of the credit check. The Troubled Company Reporter - Latin America earlier reported that judge Dr. Garibotto of Buenos Aires' Court No. 2 approved a petition for bankruptcy filed by the Company's creditor for nonpayment of debt. CONTACT: Agropecuaria Holambra S.R.L. 5th Floor A Ave. Cordoba 1304 Buenos Aires Jorge Gomez 5th Floor Tte. Gral. Juan D. Peron 1558 Buenos Aires AHOLD: Fitch Maintains Rating Watch Negative -------------------------------------------- Fitch Ratings, the international rating agency, said on Friday it was maintaining its Rating Watch Negative status on both the 'BB- ' (BB minus) Senior Unsecured debt and 'B' Short-term ratings of Koninklijke Ahold N.V. ("Ahold"), the Netherlands-based international food retailer. The company's news conference on 02 October clarified the group's level of profitability, up until its FY02 "lost year", but did little to address the issues facing the group and its ratings. Fitch's 'BB-' (BB minus) rating for Ahold reflects the view that the company remains a viable operating entity. However, many of the reasons for Fitch's Rating Watch Negative remain, particularly the amount of recent interim secured funding within the group, together with the control and structural subordination mechanisms this may afford, the reliance on continued support from core banks for available credit facilities, and near-term (including 2005's bulk) debt maturities. It is questionable if the US Foodservice profit margin can increase from FY02's 1.7% level. The company has to maximise cash, either from operational cashflow, sale of activities, or a rights issue. The company does not expect to report on these issues, or H103's results, until mid-October. The company also published its accounts yesterday, clarifying the level of profitability within the US Foodservice activities for FY02 and presented (Dutch GAAP) accounting methodologies as to the value and contingent liabilities of the Ahold group. Presentation of the audited accounts was one requirement for bank lines continuing. The market has yet to see figures on H103's performance and the on-going effect on sales and profits from a potential working capital squeeze (due to a loss of confidence), and the distraction of management from running the business in a competitive and economic environment that even peers' operationally fully-focused management has found challenging. To date, after the reported repayment of the September 2003 EUR0.7 billion convertible, Ahold reports continued use of the USD1.3bn plus EUR0.6bn secured tranches but no immediate need for the additional USD0.9bn unsecured facility. YE02 net debt of EUR11.9bn (not an operating lease-adjusted figure) has reportedly decreased by a net EUR0.8bn. CONTACT: John Hatton London Phone: +44 (0)20 7417 4283 Jonathan Pitkanen London Phone: + 44 (0)20 7417 4201 Media Relations: Alex Clelland London Phone: +44 20 7417 4222 ALICIA PERRONE: Court Approves Bankruptcy Motion ------------------------------------------------ Judge Ojea Quintana of Buenos Aires Court No. 12, approved a petition for the bankruptcy of local company Alicia Perrone Equipamientos S.R.L., reports Argentine newspaper La Nacion. The Company's creditor, Saul Moises Kleiman, filed the petition on grounds of the Company's failure to pay its debts to him. Working with Clerk No. 23, Dr. Perea, the court assigned Mr. Salvador Militello, as the Company's receiver. He will verify creditors' claims until November 26 this year. The receiver is also required to prepare the individual and general reports on the process. However, the source did not reveal whether the court has set the deadlines for the submission of these reports. CONTACT: Alicia Perrone Equipamientos S.R.L. Ave. Cordoba 744 Buenos Aires Salvador Militello 4th Floor, Room 402 Tucuman 1506 Buenos Aires AXESOR: Court Assigns Receiver For Reorganization ------------------------------------------------- A petition for reorganization filed by Buenos Aires-based company Axesor, earned court approval earlier, reports Argentine news portal Infobae. The city's Court No. 20, which works with Clerk No. 40, approved the Company's "Concurso Preventivo" motion. A local accountant, Estudio Cardero, Rojas, Munoz, was assigned as the Company's receiver. Its tasks include the verification of credit claims until November 21, and the preparation of the individual and general reports. The source, however, did not mention whether the court has chosen the deadlines for the receiver's reports and the date for the informative assembly. CONTACT: Axesor S.A. Bernardo de Irigoyen 722 Buenos Aires Estudio Cardero, Rojas, Munoz Doblas 674 Buenos Aires BACK SWING: Submits Reorganization Petition To Court ---------------------------------------------------- Argentine tricot maker Back Swing S.A. filed a motion for "Concurso Preventivo" at Buenos Aires' Court No. 16. Judge Kolliker Frers handles the Company's case with assistance from Clerk No. 32, Dr. Yacante, reports local newspaper La Nacion. If the Company's motion is approved, the Company will undergo reorganization. A receiver will be assigned to verify creditors' claims and prepare the required reports. In the meantime, the source did not mention whether the court is likely to approve the petition or not. CONTACT: Back Swing S.A. 1st Floor, Room 2 Nazarre 2953 Buenos Aires BANCO RIO: Shareholders Approve Authorized Capital Boost -------------------------------------------------------- Argentina's Banco Rio de la Plata, a wholly owned subsidiary of Spanish banking group Banco Santander Central Hispano S.A., informed the Buenos Aires Stock Exchange Thursday that it has gained shareholders' approval to increase its authorized capital by ARS100 million, relates Dow Jones. The approval, which came at a shareholder meeting Sept. 30, will pave the way for the cancellation of its debts with parent Banco Santander. Banco Rio will use the additional authorized capital to issue new shares, which Banco Santander and its subsidiaries are expected to take as payment on the US$161 million the Argentine unit owes them. Minority shareholders, who only have a 1% stake in the Company, will also be able to buy the shares, Banco Rio said in its filing. The move is the final stage in the Company's efforts to complete the refinancing of US$1.5 billion in debt to 45 creditors, says Dow Jones. CONTACT: BANCO RIO DE LA PLATA S.A. Bartolome Mitre 480 1036 Buenos Aires, Argentina Phone: +54-14-341-1081-1580 Fax: +54-14-341-1074-1084 Home Page: http://www.bancorio.com.ar Contacts: Ana Patricia B. S. de Sautuola y O'Shea, Chairman Jose L. E. Cristofani, Executive Vice Chairman and CEO Pablo Caride, Corporate Finance CAISSA: Court Approves Official Reorganization ---------------------------------------------- Buenos Aires' Court No. 12 approves the petition for reorganization filed by local company Caissa S.A., according to a report by Argentine news source Infobae. Clerk No 24 assists the court on the case. The Company's creditors are given until November 28 to have their claims authenticated by the receiver, Mr. Hugo Pantaleo. The receiver will then prepare the individual reports once the credit check is through. He is also to prepare a general report after that, but the source did not reveal whether the court has set the deadlines for the submission of these reports. The court has not set the date for the informative assembly, which is one of the last steps in reorganization. CONTACT: Caissa S.A. San Martin 201 Buenos Aires Hugo Pantaleo Ave Corrientes 1450 Buenos Aires CASINOS: Seeks Court's OK For Reorganization -------------------------------------------- Casinos S.A., based in Mar del Plata, seeks to undergo reorganization. According to a report by Argentine newspaper La Nacion, the Company has presented its "Concurso Preventivo" motion to Court No. 16, under Judge Kolliker Frers. In its filing, the Company, which operates the Casino Central in Mar del Plata revealed that it has stopped making debt payments since April this year. The province's Clerk No. 31, Dr. Ibarzabal, assists the court on the case. The source did not mention whether the court is likely to approve the Company's petition. CONTACT: Casinos S.A. Boulevard Maritimo 2282 Mar del Plata CENTRAL COSTANERA: Cuts New Debt Accord With Mitsubishi ------------------------------------------------------- Argentine thermo generator Central Costanera, a subsidiary of Endesa Chile, reached a new restructuring deal with Japan's Mitsubishi Corp., says Dow Jones. The deal, according to Costanera in a filing with the stock exchange, allows it to reschedule to a later date the US$16.4 million it was due to repay Mitsubishi in 2003. As a result of this new accord, Costanera will face extra payments of US$4.92 million in December 2006, US$6.54 million in June 2007 and $4.94 million in December 2007. Earlier this year, the two sides also reached an accord giving the Argentine firm until 2006 to pay back some US$18.9 million in debt it was due to pay in 2002. In 1996, the Japanese bank lent Costanera US$192.5 million to build a turnkey 851.2 MW electricity plant at an interest rate of 7.42% per year. The credit was to be repaid over 12 years. However, after Argentina's peso lost around 70% of its value in 2002, the Company was unable to settle its debts on time. Apart from the rescheduled debts of 2002 and 2003, the Argentine utility said it will keep to the original terms of its credit. CORREDORES VIALES: Reorganization Converted to Bankruptcy --------------------------------------------------------- Corredores Viales S.A., which is domiciled in the Argentine province of Quilmes, enters bankruptcy on orders from the province's Civil and Commercial Tribunal. Local news portal Infobae relates that the Company was undergoing reorganization. The province's Court No. 7, which handles the Company's case, ordered that the credit verifications will be done 'por via incidental'. The source, however, did not reveal the name of the receiver assigned nor the deadlines for the filing of the receiver's reports. CONTACT: Corredores Viales S.A. Jujuy 807 Quilmes CTI MOVIL: Slim To Invest $150M In Technology Upgrades ------------------------------------------------------ Mexican telecom magnate Carlos Slim Helu said he is willing to invest up to US$150 million in Argentine unit CTI Movil S.A. to upgrade the Company's technology, Dow Jones reports. Mr. Slim, in an interview published Friday in local daily Clarin, said he will use part of the money to give CTI "the most modern plant in the world, with the most complete services." In July, Slim's America Movil announced it had secured an option to acquire Argentina's CTI Movil if creditors write off more than 75% of the Argentine unit's US$1.1 billion debt. Slim told Clarin that deal is now completed. DEMAN: Court Approves Petition For Reorganization ------------------------------------------------- Deman S.R.L., which is based in the Argentine province of Mendoza, will undergo reorganization after the province's Civil and Commercial Tribunal approved its motion for "Concurso Preventivo". Local news source Infobae reports that the province's Court No. 2 handles the Company's case. The receiver assigned to the case is Mr. Pedro Ricardo Martinez, the report adds. He will verify creditors' claims until October 31 this year. After that, he will prepare the individual reports on the results of the verification process to be passed on March 3 next year. The court also requires the receiver to prepare a general report after the individual reports are processed at court. This report must be submitted on May 26 next year. The court has also set September 22 next year as the date for the informative assembly, Infobae adds, without indicating the venue for the meeting. CONTACT: Deman S.R.L. Concordia 249 Guaymallen, Mendoza Pedro Ricardo Martinez San Juan 1412 Mendoza IMPRESSION: Court Orders Bankruptcy ----------------------------------- Impression S.A., which is domiciled in Buenos Aires, enters bankruptcy on orders from the city's Court No. 25. Argentine news source Infobae adds that the city's Clerk No. 50 works with the court on the case. A local accountant, Mr. Marcos Gonzales, was assigned as the Company's receiver, the source adds. Creditors must present their claims to Mr. Gonzales for verification before the November 20 deadline expires. The court also requires the receiver to prepare the individual and general reports on the bankruptcy process. However, the source did not mention whether the court has set the deadlines for the submission of these reports. It is expected that the Company's assets will be liquidated at the end of the bankruptcy process to reimburse its creditors. CONTACT: Impression S.A. M Cervantes 1354 Buenos Aires Marcos Gonzales Lavalle 1537 Buenos Aires INFORMATION: Credit Verification For Bankruptcy Ends Today ---------------------------------------------------------- The bankruptcy of Buenos Aires-based company Information S.A. proceeds with the Company's receiver preparing the individual reports. The credit verification process, which establishes the amount and nature of the Company's debts, is due to end today. The Company's receiver, Mr. Jorge Vilarino, will prepare the general report after the individual reports are processed at court. Local sources, however, did not reveal the deadlines for the filing of the receiver's reports. Buenos Aires' Court No. 24 ordered the Company's bankruptcy, the Troubled Company Reporter - Latin America reported earlier. The city's Clerk No. 47 works with the court on the case. CONTACT: Information S.A. Maipu 812 Buenos Aires Jorge Vilarino Fonrouge 1246 Buenos Aires INSTITUTO DON JAIME: Court Expects Individual Reports Today ----------------------------------------------------------- The individual reports for the reorganization of Instituto Don Jaime S.R.L. are due for filing at San Martin's Court No. 9 today, according to an earlier report by the Troubled Company Reporter - Latin America. Ms. Norma Alicia Balmes, receiver assigned to the case prepared the reports after the credit verification process was completed. She is also required to prepare a general report, which is to be submitted on November 19, after the individual reports are processed at court. CONTACT: Norma Alicia Balmes Mitre 3885 San Martin LINEA 543: Claims Filing Period Ends December 3 ----------------------------------------------- Creditors of Argentine company Linea S.R.L. have until December 3 this year to have present their proofs of claim for verification, according to a report by local news source Infobae. The Company's receiver, Mr. Bernardino Margolis, will authenticate the claims. The source adds that Buenos Aires Court No. 15 ruled that the Company is "Quiebra Decretada". Clerk No. 30 works with the court on the case. In the meantime, Infobae did not reveal whether the court has set the deadlines for the submission of the receiver's reports. CONTACT: Linea 543 S.R.L. Ave de Mayo 1370 Buenos Aires Bernardino Margolis Parana 426 Buenos Aires PETROBRAS ENERGIA: To Make $8M Interest Payment ----------------------------------------------- Argentina's Petrobras Energia told the Buenos Aires stock market earlier that it was going to pay on Friday [October 3] the US$8- million interest for the four series of debentures totaling US$599 million. According to a report released by Business News Americas, the interest corresponds to the period July 7 to October 3. The four series of debentures were issued when Petrobras Energia was known as Pecom Energia, as part of US$848.6 million refinancing that extended short-term debt by up to five years. The refinancing paved the way for Brazil's federal oil company Petrobras to complete the purchase of Pecom's parent, Perez Companc. CONTACT: Petrobras Energia Participaciones S.A. Piso 22 Maipu1 Buenos Aires Argentina C1084ABA Phone: +54 11 4344 6000 Fax: +54 11 4344 6315 Home Page: http://www.pecom.com.ar Contact: Jose Eduardo de Barros Dutra, Chairman Nestor Cunat Cervero, Vice Chairman SOINCO: Individual Reports Due Today ------------------------------------ Ms. Alejandra Aureli, the receiver for Argentine company Soinco S.A.C.I., must submit the individual reports for the Company's reorganization today. The reports will focus on the results of the credit verifications, which ended last August 25. The Civil and Commercial Tribunal of Cordoba in Argentina earlier declared the Company bankrupt. The province's Court NO. 7 handles the case with assistance from Clerk NO. 28. The receiver will also prepare a general report after the individual reports are processed at court. The court expects this report to be filed on November 28 this year. CONTACT: Soinco S.A. Avenida Estrada 230 Cordoba Alejandra Aureli Colon 172 Cordoba TEXTIL IMPERIO: Reorganization Ends in Bankruptcy ------------------------------------------------- Textil Imperio S.R.L., which was undergoing reorganization enters bankruptcy, reports Argentine news source Infobae. The Civil and Commercial Tribunal of Rio Cuarto in Cordoba, which issued the bankruptcy ruling, ordered the credit verification be done "por via incidental". The receiver, Mr. Eduardo Pereyra, who will verify creditors' claims, will also prepare the individual and general reports on the process. The source, however, did not reveal whether the court has set the deadlines for the filing of these reports. Rio Cuarto's Court No. 5 handles the Company' case, Infobae adds. CONTACT: Textil Imperio S.R.L. Suipacha 151 Rio Cuarto, Cordoba Edgardo Pereyra Dean Funes 663 Rio Cuarto, Cordoba TRANSPORTADORA PATAGONICA: Receiver Prepares Individual Reports --------------------------------------------------------------- The credit verification process for the reorganization of Trelew- based company Transportadora Patagonica S.A. ends today, according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver, Mr. Daniel Julio, who authenticated the claims, will prepare the individual reports, which would focus on the results of the verification process. The receiver is also required to prepare a general report after the individual reports are processed at court. However, local sources did not reveal whether the court has set the deadlines for the submission of these reports. The Civil and Commercial Tribunal of Trelew in the Argentine province of Chubut approved the Company's motion for "Concurso Preventivo", the TCR-LA earlier said. The province's Court No. 1 and Clerk No. 2 are handling the case. CONTACT: Transportadora Patagonica S.A. La Rioja 287 Trelew, Chubut Daniel Julio Belgrano 581 Trelew, Chubut VISION ARGENTINA: Court Sets Schedule for Bankruptcy Process ------------------------------------------------------------ Buenos Aires's Court No. 14, which handles the bankruptcy case of local company Vision Argentina S.A., has set the deadlines for the submission of the receiver's reports. Local online news source Infobae relates that the individual reports are to be submitted on December 30 this year followed by the general report on March 12, 2004. The receiver, Ms. Amelia Marta Iglesias, will prepare the individual reports after the credit verification process is completed on November 14 this year. Creditors are required to present their proofs of claim to the receiver before the said date. CONTACT: Amelia Marta Iglesias Pareja 4152 Buenos Aires =========== B R A Z I L =========== AES TIETE: Fitch Lowers Certificates Grantor Trust to 'B-' ---------------------------------------------------------- Fitch Ratings has downgraded the AES Tiete Certificates Grantor Trust (certificates) to 'B-' from 'BB-' and has maintained the Rating Watch Negative status. The downgrade reflects near term concerns that expected negotiations between the issuer and bondholders regarding debt service payments in December 2003 and possibly, June 2004, hold the potential to result in a distressed debt exchange and may lead to a further downgrade of the certificates. Fitch remains concerned regarding AES IHB Cayman, Ltd.'s (IHB, the issuer of the certificates) ability to meet all of its financial obligations scheduled in December 2003, which include the replenishment of the debt service reserve account (DSRA) of approximately US$22 million, the repayment of approximately BRL70 million of intercompany debt with AES Tiete S.A. (Tiete), the operating company, and scheduled interest and principal of US$22 million due under the certificates. Tiete reported cash balances of BRL212 million (US$73 million) as of June 2003. After paying approximately BRL88 million (US$30 million) to the Brazilian wholesale electricity market (MAE) in July 2003, and generating approximately BRL20 million of cash flow monthly, Tiete should hold estimated cash balances of more than BRL 180 million. Tiete continues to generate positive cash flow sufficient to service all of its debt. Despite having cash on hand at the operating company, Tiete appears unlikely to be able to upstream sufficient funds via either a new intercompany loan, as was the case in the past, or through dividends. The Brazilian sector regulator, Aneel, which had approved the previous intercompany loan, is not expected to allow additional loans this time. Until recently, AES and the Brazilian government had been at odds over the resolution of past due debt with the state-owned Banco Nacional de Desenvolvimento Economico (BNDES), which had limited government support for AES' Brazilian entities. Further, while recent monthly inflation has returned to manageable levels, the accounting impact on Tiete's income statement is still likely to affect reported net income and limit the amount of dividends that can be paid. IHB is therefore unlikely to receive sufficient funds to meet all of its financial obligations coming due December. To resolve this situation, the company is expected to negotiate with the bondholders prior to the December debt service payment due date. Fitch believes that Tiete's net income levels and IHB's liquidity situation should improve in 2004 and thereafter as it receives greater dividends due to the growth in net earnings as the new purchase power agreement (PPA) with Eletropaulo at higher prices ramps up through 2006. The PPA provides additional cushion in the out years, while the minimum coverage was projected to be in the early years. CONTACT: Fitch Ratings Jason Todd Chicago Phone: 312-368-3217 Daniel Kastholm, CFA Chicago Phone: 312-368-2070 Jayme Bartling Sao Paulo Phone: +55 11-287-3177 James Jockle(Media Relations) Phone: 212-908-0547 MRS LOGISTICA: Nears 86Mt Moved Cargo Target -------------------------------------------- Brazilian railroad concessionaire MRS Logistica is moving closer to its goal of moving a total of 86 million tons of cargo this year. A report by Business News America cited a statement from the country's transport ministry saying the Company has moved a total of 63.4 million tons of cargo for the first nine months of 2003. The increased load from local steelmaker CSN has helped the Company improve shipping figures. The Company reported a total of 7.72 million tons moved last month and expects to move at least 8 million tons more this month. The Company has added 32 new locomotives and expects 10 more GE C30-7 locomotives next week to meet increased demands, BNAmericas noted. CSN controls 32.2% of MRS, while Mineracoes Brasileiras Reunidas has a 32.7% stake, iron ore miner Mineracao 10.4%, steelmaker Usiminas 10.2% and others 14.5%, the report adds. SKY BRASIL: Moody's Downgrades Ratings on $200M Of Notes -------------------------------------------------------- Concluding a review initiated on February 26, 2003, Moody's Investors Service lowered the rating on US$200 million of senior secured notes issued by Sky Brasil Servicos Ltda. to Caa2 from Caa1. At the same time, the ratings agency confirmed the Caa2 and Ca ratings for Sky Brasil's senior implied and senior unsecured ratings, respectively. The rating outlook remains negative. The downgrade of Sky Brasil's senior secured debt rating reflects mainly on Moody's reduced expectations with regard to the Company's ability to service its debt as a stand-alone entity after the recent conclusion of Sky Brasil's negotiations with its programming providers. The ratings continue to principally reflect Moody's expectation that the Company's balance sheet may need to be restructured, that current and likely projected operations are inadequate in terms of supporting the present capitalization structure, and that credit losses may subsequently ensue over the forward rating horizon. More specifically, the ratings incorporate the Company's continuing negative free cash flow and its dependence on uncommitted equity sponsor capital contributions from News Corp and Liberty to fund debt service and transponder lease payments, in addition to near term refinancing risk associated with the maturity of its senior secured debt in August 2004. The ratings also reflect the likely continued lack of capital contributions from Globopar, and an expected recovery rate for all existing obligations of less than full value in an event of default scenario, particularly if further support from equity sponsors is not forthcoming. The negative outlook reflects Moody's concerns regarding the Company's unclear strategy for the August 5, 2004 maturity date on its Senior Secured Notes. As of June 30, 2003, SKY Brasil had US$441 million in total debt, with US$209 million related to the senior secured notes due 2004 and US$232 million related to PanAmSat lease annuity financing for satellite transponders. Headquartered in Sao Paulo, SKY Brasil Servicos Ltda. is the leading direct-to-home pay television service provider in Brazil serving approximately 760,000 subscribers. USIMINAS: S&P Assigns BBB+ Rating, Affirms Positive Outlook ----------------------------------------------------------- Standard and Poor's took various rating actions on Brazilian flat steelmaker Usiminas, reports Business News Americas. The ratings agency assigned a BBB+ rating to the BRL240 million (US$83mn) in debentures issued by the Belo Horizonte-based steelmaker's subsidiary Sao Paulo-based Cosipa. The debentures mature September 2007. S&P also changed Usiminas' outlook to positive from negative. At the same time, S&P reaffirmed Usiminas' BBB+ corporate credit rating and the BBB rating for Usiminas' BRL100-million real debenture issue maturing in November 2003. The rating actions, according to S&P, reflect Usiminas' strong market position in Brazil's steel industry, competitive cash structure, solid operational profitability and strong cashflow. However, the steelmaker's high debt position and short-term debt repayment profile could push the ratings downward, the ratings agency indicated. CONTACT: Breno Julio de Melo Milton bmilton@usiminas.com.br Tel: (55 31) 3499-8710 Paulo Esteves paulo.esteves@thomsonir.com.br Tel: (55 11) 3897-6466 =============== C O L O M B I A =============== BANCAFE: Three Groups Contemplating Privatization Move ------------------------------------------------------ Three groups have expressed their interests in the upcoming privatization of Colombian state bank Bancafe. The interested groups, according to local news service La Nota, are the local Gilinski family and fellow Colombian group Sarmiento. The third one is an international group, which has no direct presence in Colombia. Business News Americas recalls that Bancafe was intervened in 1999 due to severe financial deterioration and Colombia's deposit insurance agency Fogafin took over the bank that same year. The insurance agency currently holds 99.99% of the bank's equity and has spent a lot of money cleaning up and streamlining Bancafe since its take-over. Now, the Colombian government is bent on selling Bancafe in the short-term, and the International Finance Corporation has announced it is considering investing up to US$20 million in a minority stake to help attract interest in the sale. IFC's board is slated to make a final decision on whether to invest in Bancafe later this month. The Colombian government has hired CSFB and local investment bank Inverlink to handle the upcoming sale of Bancafe. Baker & McKenzie Bogota was also hired as legal advisor. CONTACT: BANCAFE Street 28 Not 13 To 15 Bogota District of Colombia Phone: 5600999 EXT. 4338 E-mail: ma.pulido@bancafe.com.co Fax: 336 76 77 Home Page: www.bancafe.com Contact: Pedro Nel Ospina Santamaria, Legal Representative BAVARIA: Moody's Assigns Ba3 Rating to $400M Bonds -------------------------------------------------- Moody's assigned a first-time rating of Ba3 to Colombian beer producer Bavaria S.A.'s proposed seven-year, US$400-million senior unsecured bonds. The rating outlook is stable. The Ba3 rating, said Moody's, is based on the Company's solid market leadership positions in all of its countries of operation: Colombia (98% share), Peru (99% share), Ecuador (95% share), and Panama (80% share). These dominant positions translate into price leadership and result in generally strong and stable cash flows. However, Bavaria has incurred a significant amount of debt while pursuing its growth strategy, much of which is relatively short- tenured, said Moody's Total debt to EBITDA was about three times in 2002 or 3.5 times when adjusted for guarantees. Debt represented more than 100% of 2002 pro-forma revenues. A key goal of the proposed financing is to lengthen the firm's debt maturity profile. While Moody's does not see significant integration risk arising from the acquisition of well-established operations in other countries, the growth strategy reflects a deviation from the historic organic growth pattern of the Company, and represents new challenges for the management team, including those of managing its more levered financial profile. The stable rating outlook assumes that the Company will continue to generate solid cash flows from its markets and that it will reduce debt and improve its debt protection measures, notwithstanding certain planned purchases of minority interests. Bogota-based Bavaria is the second largest beer producer in Latin America. It also produces and sells soft drinks, malt beverages, bottled water and juices. SEVEN SEAS: Updates Reorganization Details, Contract Termination ---------------------------------------------------------------- Seven Seas Petroleum Inc. announced Friday that the Company has received notice from Ecopetrol confirming termination of the Deep Dindal Association Contract. The Company must meet statutory obligations with the Ministry of Mines and Environment of Colombia before plugging and abandoning the well. The Company has escrowed the necessary funds to cover budgeted plugging and abandonment costs. As previously announced, the Company has no source of cash flow and is working to create value from several contingent assets for the benefit of its creditors, whom the Company owes over $150,000,000. Pursuant to the Plan of Reorganization approved by the bankruptcy court, effective August 14, 2003, all secured, unsecured and administrative claims will be paid before the Company's shareholders. The contingent assets consist of potential recoveries from litigation against the Company's former directors and officers, historical net operating losses in the Company's Colombian subsidiaries, and the Company's estimated 2003 Colombian tax refund. Value of the contingent assets is highly speculative and it is uncertain whether any of the contingent assets will result in recoveries for the Company's creditors. Even if Seven Seas is successful in obtaining maximum value for each of the contingent assets, it currently appears unlikely that there will be any recovery for the Company's shareholders. CONTACT: Seven Seas Petroleum Inc. Daniel Drum, Investor Relations Phone: +1-713-622-8218 Home Page: http://www.sevenseaspetro.com/ ============= E C U A D O R ============= PETROECUADOR: Upstream Unit To Counter Sue Drillfor --------------------------------------------------- Just days after Ecuadorian oil field services company Drillfor started legal proceedings against state-owned upstream company Petroproduccion for suspending a US$50-million contract, Petroproduccion revealed plans to counter sue Drillfor. Petroproduccion, state oil company Petroecuador's production subsidiary, awarded the contract to Drillfor in August. The contract involved hiring two rigs from Drillfor to renew drilling activities in the Shushufindi and Lago Agrio oil fields. However, Petroproduccion annulled the contract, claiming that the Drillfor rigs did not pass its technical inspections. This angered Drillfor, which subsequently filed a suit against Petroproduccion. Drillfor CEO Pablo Olaciregui called Petroproduccion's reason as just a "pretext" not to sign the contract. Now, Petroproduccion is planning to counter sue Drillfor for loss of income during the first six months of 2003. The Company said it was unable to drill any wells during this period because a legal dispute with Drillfor prevented it from hiring another company. ============= J A M A I C A ============= JPSCO: Unions Signal Willingness to Negotiate Further ----------------------------------------------------- Unions at Jamaica Public Service Company (JPSCo) maintained their diplomacy despite their disappointment to the Company's decision to appeal a ruling by the Industrial Disputes Tribunal on retroactive payments. RadioJamaica relates that the unions have indicated in a letter to JPSCo that they are willing to resume wage negotiations with the management on behalf of the Company's employees. The meeting, scheduled for Thursday, October 9, will be held despite differences involving JPSCo's management and unions over a reclassification exercise at the company. The unions representing the JPSCo's more than one thousand employees announced that they are disappointed with the management's decision to contest the IDT ruling. They believe that the Company's decision to take the matter to court was in an effort to avoid paying the workers money, which the IDT said they were due. Even so, the unions agreed not to resort to industrial action. =========== M E X I C O =========== GRUPO TMM: Tax Attorney Files For Review on VAT Ruling ------------------------------------------------------ Grupo TMM, S.A. announced that, in connection with the reimbursement of TFM, S.A. de C.V. (TFM)'s Value Added Tax ordered by the Mexican Fiscal Court on August 13, a ruling which was issued to comply with the judgment (ejecutoria de amparo) of the Federal Court of the First Circuit dated June 11, 2003, the Tax Attorney of the Mexican Government (Procuraduria Fiscal de la Federacion) has filed for a review of the ruling. TMM's legal advisors will evaluate the contents of this review request and its legal basis. The company will provide additional information when it is available. Headquartered in Mexico City, Grupo TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. CONTACT: Grupo TMM Brad Skinner, Senior Vice President Investor Relations Phone: 011-525-55-629-8725 203-247-2420 Email: brad.skinner@tmm.com.mx Marco Provencio Media Relations, Proa/StructurA Phone: 011-525-55-629-8708 011-525-55-442- 4948 Email: mp@proa.structura.com.mx Dresner Corporate Services (general investors, analysts and media) Kristine Walczak Phone: 312-726-3600 Email: kwalczak@dresnerco.com NEGT: Bankruptcy Court Authorizes New Company Name -------------------------------------------------- National Energy & Gas Transmission, Inc. (NEGT) announced Friday that the U.S. Bankruptcy Court for the District of Maryland has authorized this new company name. Formerly known as PG&E National Energy Group, the change reflects NEGT's pending separation from its parent, PG&E Corporation (NYSE: PCG). While the change is immediate and the company is now phasing in the new name, NEGT will not become legally separated from PG&E Corporation until NEGT emerges from bankruptcy and its Plan of Reorganization (POR) is effective. If implemented, PG&E Corporation's equity interest in NEGT would be eliminated. The company's subsidiaries also have changed their names to delete references to PG&E. The new names include Gas Transmission Northwest Corporation (formerly PG&E Gas Transmission, Northwest Corporation), which is not in bankruptcy. The company's other major subsidiary, USGen New England, Inc. did not change its name. USGenNE filed Chapter 11 in July and its case is being separately administered. Headquartered in Bethesda, Md, NEGT voluntarily filed for Chapter 11 on July 8, 2003, as part of its ongoing restructuring efforts. The company has more than 7,300 megawatts of generation including a mix of natural gas, coal/oil, hydroelectric, waste coal and wind power at numerous facilities across the country. With more than 1,350 miles of gas pipelines, the company's Pacific Northwest system has the ability to transport 2.9 million cubic feet of natural gas per day from cost-competitive abundant supplies in Western Canada to markets in California, Nevada and the Pacific Northwest. The company also owns the 80-mile North Baja pipeline in Southern California, which has capacity to ship 500 million cubic feet of natural gas from U.S. producing regions to markets in Northern Mexico and Southern California. CONTACT: National Energy & Gas Transmission, Inc. Natalie Wymer, +1-301-280-5654 ======= P E R U ======= SIDERPERU: Equilibrium Downgrades Rating to Default --------------------------------------------------- Peruvian credit rating agency Equilibrium downgraded financially troubled steel company Siderperu to D from CC, relates Business News Americas. The rating agency attributed the action to Siderperu's failure to make a principal payment on a bond issue by the September 28 deadline. On Wednesday, Siderperu told the Conasev regulator that it was paying or making available to its creditors US$1.57 million, including US$72,323 for interest payments on the bonds for the three months ending September 30. But according to Equilibrium analysts, Siderperu had 90 days from June 30 to make a principal payment on the bonds and it has failed to do so. The good news for Siderperu is that competition regulator Indecopi has agreed to allow a creditors' meeting to go ahead to discuss rescheduling debts that had already been restructured once under an agreement reached with lenders in April last year. But according to an analyst, who asked not to be named, no date has yet been set for the meeting. In July this year, Indecopi turned down the request from Siderperu, but "on further reflection" the regulator has changed its stance, the analyst told Business News Americas. The Company's proposal included postponing payments to creditors due on June 30, September 30 and December 30, Siderperu said previously. ================= V E N E Z U E L A ================= SIDOR: Expects Boost in DIR After Completing $13.5M Upgrade ----------------------------------------------------------- Sidor is forecasting its direct reduced iron (DRI) capacity to reach 4.2Mt/y of iron for use in steelmaking after the Company did some technology upgrades on module C at its Midrex II plant, Business News Americas reports. According to a company spokesperson, Sidor invested US$13.5 million in the upgrades. Puerto Ordaz-based Sidor is 60% owned by the Amazonia consortium, made up of Mexico's Hylsamex of the Alfa group and Tamsa of the Techint Group; Argentina's Siderar, also of the Techint group; Usiminas of Brazil and Venezuela's Sivensa. State conglomerate CVG owns the remaining 40% *********** 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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