/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031021.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 21, 2003, Vol. 4, Issue 208 Headlines A R G E N T I N A 059: Bankruptcy Claims Filing Deadline Ends ANAMORA: Claims Check Reorganization Ends November 19 COB: Receiver Prepares Individual Reports CORREO ARGENTINO: Govt. Seeks End to Restructuring Proceeding EDITORIAL LUMI: Seeks Court Authorization to Reorganize FADES: Court Approves Creditor's Bankruptcy Petition INSTALACIONES SERVICOM: Individual Reports Due For Filing Today JEANVAC: Receiver Closes Claims Verification Process LAS RUEDAS: Today Marks Last Day For Claims Filings LOCKBIT: Creditor's Petition For Bankruptcy Approved PARAISO: Nonpayment of Debt Results In Bankruptcy Order RESTAURANT CHOLILA: Receiver Verifies Creditors' Claims ROCAISINA: Enters Bankruptcy on Court Order SERMED: Court Approves Reorganization Motion SICOMPRRA: Court Sets Schedule For Bankruptcy Process VIA X: Court Assigns Receiver For Bankruptcy Process VITESSO: Reaches Bankruptcy Claims Filing Deadline B E R M U D A COCO REEF: End of October Set for Closure Date TYCO INTERNATIONAL: Commences Tender Period For Lyons Due 2020 C H I L E ESVAL: AWG Plc Agrees to sell 49.8% Stake for GBP55 Mln MANQUEHUE NET: Launches Wireless Broadband Access Service SCOTIASUDAMERICANO: Seeks To Resolve Conflict With Corfo C O L O M B I A AVIANCA: Completes Restructuring, Seeks New Investor E C U A D O R PETROECUADOR: Insurance Tender Loaded With Irregularities J A M A I C A C&WJ: Infuriates Customers With New System BLAISE MERCANT/CENTURY NATIONAL: FIS Sets Deadline For Claims M E X I C O BEPENSA SA: S&P Upgrades Ratings, Removes CreditWatch CALPINE CORP.: Mexican Project Leaves S&P Ratings Unchanged CORPORACION GEO: 3Q03 Earnings Ride Rising Tide of Housing P E R U EMPRESA LUCCHETTI: To Continue Operating In Peru Via Local Unit V E N E Z U E L A SIDOR: Labor Court Grants `Constitutional Injunction' Request - - - - - - - - - - ================= A R G E N T I N A ================= 059: Bankruptcy Claims Filing Deadline Ends ------------------------------------------- The deadline for the verification of claims for the bankruptcy of Argentine company 059 S.R.L. expires today, as detailed earlier in the Troubled Company Reporter - Latin America. The receiver, Mr. Carlos Alberto Vicente, will start preparations for the individual reports, which must be submitted to the court on December 2 this year. After the individual reports are processed at court, the receiver will prepare a general report, which must be filed on February 18 next year. This report will include the receiver's comments on the factors that contributed to the Company's bankruptcy. The Company's assets will then be liquidated to pay its debts. CONTACT: Carlos Alberto Vicente Ave. Corrientes Buenos Aires ANAMORA: Claims Check Reorganization Ends November 19 ----------------------------------------------------- Creditors of Anamora S.R.L. must have their claims verified by the Company's receiver, Ms. Maria Julia Frontini, before November 19 this year. The credit verification process is part of the Company's ongoing reorganization. Argentine news portal Infobae relates that Court No. 6 pf the Civil and Commercial Tribunal of Mar del Plata approved the Company's motion for "Concurso Preventivo", giving it permission to start the reorganization process. The receiver's duties include the preparation of the individual and general reports. Infobae, however, did not reveal whether the court has set the deadlines for the filing of these reports. CONTACT: Anamora S.R.L. Avenida M de Hoz 4131 Mar del Plata Maria Julia Frontini Dorrego 1318 Mar del Plata COB: Receiver Prepares Individual Reports ----------------------------------------- Creditors of Compania de Omnibus la Bahiense S.R.L. must have their claims authenticated by the Company's receiver. An earlier report by the Troubled Company Reporter - Latin America indicated that today is the last day for creditors to file claims for the Company's reorganization. The Company's receiver, Mr. Eduardo Daniel Florez will prepare the individual reports, as ordered by the province's Civil and Commercial Tribunal. The reports, which focus on the results of the verification process, must be submitted to the court on December 5 this year. The receiver will also prepare a general report after the individual reports are processed at court. This report must be presented to the court on February 25 next year. Local sources, however, did not reveal whether the court has set the date for the informative assembly. The meeting is one of the last processes in a reorganization. CONTACT: Compania de Omnibus la Bahiense S.R.L. Lavalle 348 Bahia Blanca Eduardo Daniel Florez Hopilito Yrigoyen 227 Bahia Blanca CORREO ARGENTINO: Govt. Seeks End to Restructuring Proceeding ------------------------------------------------------------- The Argentine government has asked Judge Eduardo Favier Dubois to declare Correo Argentino's formal restructuring proceeding finished, so as to cancel its concession contract and call for a tender process to select a new postal operator. Last weak, the Appeals Court agreed to consider a company request to extend the exclusivity term to make a repayment proposal. The State claims that the Nation bank and the Ministry of Economy, holders of 35.5% of Correo Argentino's debt, are not willing to accept any kind of offer made by the concessionaire and it needs approval from creditors representing at least 66% of the debt. EDITORIAL LUMI: Seeks Court Authorization to Reorganize ------------------------------------------------------- Buenos Aires Court No. 19, which is under Dr. Fernandez, received a petition for reorganization from local company Editorial Lumi S.R.L. recently. La Nacion relates that Dr. Mazzoni, the city's Clerk No. 37 works with the court on the case. However, the report did not mention whether the court is likely to approve the "Concurso Preventivo" motion. FADES: Court Approves Creditor's Bankruptcy Petition ---------------------------------------------------- Judge Vasallo of Buenos Aires court No. 5 agrees with a petition for the bankruptcy of local company Fades S.A., relates local news source La Nacion. The petition was filed by the Company's creditor, Victor Masson Transportes Cruz del Sur S.A. for nonpayment of debt, the source adds. The Company's creditors are given until December 9 to have their claims verified by the designated receiver, Mr. Carmela Ruiz Clavijo. The receiver will also prepare the individual and general reports on the process, but the source did not reveal whether the court has set the deadlines for the submission of these reports. Clerk No. 9, Dr. Perez Casado aids the court on this case, the source adds. CONTACT: Fades S.A. Agustin Alvarez 4744 Buenos Aires Carmela Ruiz Clavijo 10th Floor, Room B Ave Corboda 1540 Buenos Aires INSTALACIONES SERVICOM: Individual Reports Due For Filing Today --------------------------------------------------------------- The individual reports for the bankruptcy of Rosario-based company Instalaciones Servicom S.A. are due for filing at the court today. The Troubled Company Reporter - Latin America earlier reported that the province's Court No. 15 handles the Company's case. The reports were prepared by the Company's receiver, Monica Di Iorio, a local accountant, after the credit verification process was completed earlier this year. A general report will be submitted to the court on December 2. The receiver will prepare this report after the individual reports are processed at court. CONTACT: Monica Di Iorio San Luis 1778 Rosario, Santa Fe JEANVAC: Receiver Closes Claims Verification Process ---------------------------------------------------- Buenos Aires accountant Gustavo Guillermo Vignale, receiver for local company Jean Vac S.R.L., closes the credit verification process for the Company's bankruptcy today. Buenos Aires Court No. 4, which handles the Company's case, ordered the receiver to prepare the individual reports and submit them on December 2 this year. The court also requires the receiver to submit the general report on March 1 next year, the Troubled Company Reporter - Latin America earlier revealed. This report must be prepared after the individual reports are processed at court. The court, which works with Clerk No. 10 on the case, will likely order the liquidation of the company's assets to reimburse creditors. CONTACT: Gustavo Guillermo Vignale Vuelta de Obligado 2717 Buenos Aires LAS RUEDAS: Today Marks Last Day For Claims Filings --------------------------------------------------- Mr. Jose Luis Rodas, the receiver for bankrupt Buenos Aires company Las Ruedas S.A., will prepare the individual reports as the deadline for the authentication of creditors' claims expires today. The individual reports, according to a previous Troubled Company Reporter - Latin America report, must be submitted to the court on December 2 this year. The city's Court No. 11, which handles the Company's case, ordered the receiver to prepare the general report after the individual reports are processed at court. This report must be filed on February 16 next year. Clerk No. 22 works with the court on the case. CONTACT: Jose Luis Rodas L N Alem 619 Buenos Aires LOCKBIT: Creditor's Petition For Bankruptcy Approved ---------------------------------------------------- Argentine beverage company Lockbit S.A. is declared bankrupt by Judge del Ferrario of Buenos Aires' court No. 6. A report by local newspaper La Nacion indicates that the court approved a petition for bankruptcy filed by the company's creditor, Vinares S.A. for nonpayment of debt. Clerk No. 12, Dr. Mendez Sarmiento assists the court on the case. Buenos Aires accountant Juan Vilanova was assigned as the Company's receiver. The credit verification period is slated to end on December 12 this year. The source did not indicate whether the deadlines for the filing of the individual and general reports, which are prepared after the credit verification process is completed, have been set. CONTACT: Lockbit S.A. 10th Floor, Room B Adolfo Asinas 1433 Buenos Aires Juan Vilanova 6th floor, Room B Hipolito Yrigoyen 1249 Buenos Aires PARAISO: Nonpayment of Debt Results In Bankruptcy Order ------------------------------------------------------- Paraiso S.A., which markets fruits and vegetables in Argentina, enters bankruptcy after the court approved a petition filed by its creditor for nonpayment of debt. Dr. Ottolenghi of Buenos Aires' Court No. 4 handles the Company's case with assistance from Clerk No. 7, Dr. Juarez, relates local newspaper La Nacion. The receiver assigned to the case is Mr. Victor Tomasi, a local accountant. Creditors must present their claims to Mr. Tomasi for verification before the December 23 deadline expires. The receiver is also required to prepare the individual and general reports, whose deadlines are yet unknown. CONTACT: Paraiso S.A. 11th Floor, Room A Ave La Plata 303 Buenos Aires Victor Tomasi Ground Floor, Room D Ave Acoyte 127 Buenos Aires RESTAURANT CHOLILA: Receiver Verifies Creditors' Claims ------------------------------------------------------- Court No. 23 of Buenos Aires orders the bankruptcy of local company Restaurant Cholila S.A., according to an Infobae report. Working with Clerk No. 45, the court declared the Company "Quiebra". To determine the nature and amount of the Company's debts, the receiver, Mr. Pedro Valle, will verify creditors' claims until December 15 this year. He will then prepare the individual reports on the results of the verification process. After these reports are processed at court, he will consolidate the collected data into a single general report. However, Infobae did not mention the deadlines for the submission of the receiver's reports. CONTACT: Restaurant Cholila S.A. Ave Rivadavia 789 Buenos Aires Pedro Valle Ave de Mato 1260 Buenos Aires ROCAISINA: Enters Bankruptcy on Court Order ------------------------------------------- Rocaisina S.A., which is domiciled in Buenos Aires, enters bankruptcy on orders from Judge Vassallo of the city's Court No. 5. Local accountant Zulma Ghigliano takes over as receiver for the process. She will authenticate creditors' claims until December 10 this year. Argentine newspaper La Nacion reveals that the court approved a bankruptcy motion filed by the Company's creditor Comafi Fiduciario Financiero S.A. for nonpayment of debt. Clerk No. 9, Dr. Perez Casado assists the court on the case. In the meantime, the source did not reveal the deadlines for the filing of the receiver's reports. CONTACT: Rocaisina S.A. Ave Julio Roca 590 Buenos Aires Zulma Ghigliano Capoletti 554 Buenos Aires SERMED: Court Approves Reorganization Motion -------------------------------------------- Court No. 7 of the Civil and Commercial Tribunal of Bahia Blanca approved the motion for "Concurso Preventivo" filed by local company Sermed S.R.L., flashing the go signal for a reorganization, reports Argentine news portal Infobae. Clerk No. 6 aids the court on the case. Local accountant Raquel Angelica Morales was designated as the Company's receiver. She will authenticate creditors' claims until November 21 this year. After that, she will prepare the individual reports followed by the general report. Infobae, however, did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Sermed S.R.L. Estomba 643 Bahia Blanca Raquel Angelica Morales D Orbigny 325 Bahia Blanca SICOMPRRA: Court Sets Schedule For Bankruptcy Process ----------------------------------------------------- Buenos Aires Court No. 16 has set the schedule for the bankruptcy process of Sicompra S.A., relates Argentine news source Infobae. After Ms. Elsa Tobarcias, the receiver, closes the credit verification process on November 7 this year, she will start preparing the individual reports. The court ordered the receiver to submit these reports on December 22 this year, followed by the general report on March 8, 2004. The receiver will prepare the general report after the individual reports are processed at court. The Company's assets will be liquidated at the end of the bankruptcy process. Proceeds will be used to reimburse its creditors. CONTACT: Elsa Taborcias C Pellegrini 1063 Buenos Aires VIA X: Court Assigns Receiver For Bankruptcy Process ---------------------------------------------------- Argentine electronics and communications company Via X S.A. is placed in the care of its receiver, Mr. Norberto Markel, an accountant from Buenos Aires. He will authenticate creditors' claims for the Company's bankruptcy until December 12 this year. La Nacion reports that Judge Ferraro of the city's Court No. 6 handles the Company's case with assistance from Dr. Mendez, Clerk No. 12. The Company entered bankruptcy after the court approved a petition for its bankruptcy filed by Proman Argentina S.A.. The Company's failure to meet its financial obligations to Proman prompted the latter to file the bankruptcy petition. CONTACT: Via X S.A. 20th Floor, Room B Ave Alicia Moreau de Justo 1780 Buenos Aires Norberto Markel 4th Floor, Room A/B Tucuman 1657 Buenos Aires VITESSO: Reaches Bankruptcy Claims Filing Deadline -------------------------------------------------- The deadline for the filing of creditor's claims for the bankruptcy of Vitesso S.A. expires today. The Company's receiver, Mr. Jose Granja, who verifies creditors' claims, will start preparations for the individual reports. The Troubled Company Reporter - Latin America earlier indicated that Dr. Garibotto, the insolvency judge for Buenos Aires' Court No. 2, approved a petition for the Company's bankruptcy filed by its creditor for nonpayment of debt. Aside from verifying creditors' claims and preparing the individual reports, the receiver must also prepare a general report on the process. Local sources, however, did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Vitesso S.A. Ave. Jose Maria Moreno 362 Buenos Aires Jose Granja 7th Floor, Room E Manzares 2131 Buenos Aires ============= B E R M U D A ============= COCO REEF: End of October Set for Closure Date ---------------------------------------------- Coco Reef hotel, formerly known as Stonington Beach Hotel, will now close on October 31, not November 11 as guests and employees were originally told. Citing hotel director Andrea Jennings, the Royal Gazette reports that government insurers are pushing for the immediate closure. Ms. Jennings suggested that delays in repairs, associated with dealings with the insurer - Centurion Insurance Services - have been at the center of recent problems at the embattled hotel. The hotel had attempted to fast-track repairs to Hurricane Fabian damages, but according to the director, it was ordered to stop by the insurance company, which carries Government's collective policy for all its properties - including Coco Reef. "When we lost the seawall (Centurion) did visit," said Ms. Jennings. "We then received verbal approval to make immediate repairs." As the damage to the seawall presented some potential danger, and cost the hotel its beach access, Coco Reef went through the fast- track planning application process and received emergency planning permission to make repairs on September 25. However, the next day a meeting was held between Government (as the property landlord), the insurers, Coco Reef owner John Jefferis and Jennings. At the meeting, the insurers denied giving Coco Reef permission to proceed with the repairs, and Coco Reef was "categorically told to stop work immediately," said Ms. Jennings. Unable to make repairs on the seawall, Coco Reef attempted to blaze an alternative path down to the beach. But ended up cutting down several trees in the neighboring woodland reserve instead. EB Properties, which tends to the woodland reserve, is now suing Coco Reef for damages, and Coco Reef guests have no way of accessing the beach. The area is unsafe, said Ms. Jennings, and Coco Reef is not offering the beachfront product they advertised. "What do you do?" she said. "You have to close. "It needs to be clear in people's minds that it's not EB Properties," she continued. "It's the Government insurers that have forced the hotel to close." TYCO INTERNATIONAL: Commences Tender Period For Lyons Due 2020 -------------------------------------------------------------- Tyco International Ltd. announced Friday that holders of its Liquid Yield Option™ Notes due 2020 (Zero Coupon-Senior) (the "LYONs") have the right to surrender their LYONs for purchase during a period that begins Friday and ends on Monday, November 17, 2003. Pursuant to the indenture under which the LYONs were issued in November of 2000, each holder of the LYONs has the right to require Tyco to purchase, until 5:00 p.m. New York time on Monday, November 17, 2003, such holder's LYONs at a price equal to $775.66 per $1,000 principal amount at maturity of the LYONs. Under the terms of the LYONs, Tyco shall purchase any tendered LYONs solely with cash. The aggregate principal amount due at maturity for all outstanding LYONs is approximately $3.2 billion. If all outstanding LYONs were surrendered for purchase, the aggregate cash purchase price would be approximately $2.5 billion. Tyco intends to use available funds to repurchase the LYONs. In order to surrender LYONs for purchase, holders must deliver a purchase notice to U.S. Bank National Association (successor trustee to State Street Bank and Trust Company, N.A.), the trustee and paying agent for the LYONs, on or before 5:00 p.m., New York City time, on Monday, November 17, 2003. Holders may withdraw any LYONs previously surrendered for purchase at any time prior to 5:00 p.m., New York City time, on Monday, November 17, 2003. Tyco filed a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission Friday. Tyco will make available to LYONs holders, through the Depository Trust Company, documents specifying the terms, conditions and procedures for surrendering and withdrawing LYONs for purchase. LYONs holders are encouraged to read these documents carefully before making any decision with respect to the surrender of LYONs, because these documents contain important information regarding the details of Tyco's obligation to purchase the LYONs. The LYONs are convertible into 10.3014 Tyco Common Shares per $1,000 principal amount at maturity of LYONs, subject to certain conditions set forth in the indenture and in the LYONS, and subject to adjustment under certain circumstances. This press release does not constitute an offer to purchase the LYONs. The offer to purchase is made solely by Tyco's company notice dated October 17, 2003. ABOUT TYCO INTERNATIONAL Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in medical device products, and plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2002 revenues from continuing operations of approximately $36 billion. ========= C H I L E ========= ESVAL: AWG Plc Agrees to sell 49.8% Stake for GBP55 Mln ------------------------------------------------------- AWG Plc has agreed Friday the sale of its 49.8% shareholding in Esval for GBP55 million, subject to formal consent of the Chilean authorities. Esval owns and operates water and wastewater assets in Chile. Of AWG's 49.8% shareholding, 44.8% will be purchased by Consorcio Financiero and 5% will be purchased by the Moneda Chile Fund. Both payments will be made in cash and the proceeds will be used for general corporate purposes. AWG's balance sheet at March 2003 included Esval's net assets at GBP95 million and net debt at GBP122 million. Esval made no contribution to AWG's earnings in 2002/03. CONTACT: Mike Keohane, group director of HR and communications 01480 323280 Terry Garrett, Weber Shandwick Square Mile 0207 067 0717 Anthony Cardew, Cardew Chancery 0207 930 0777 MANQUEHUE NET: Launches Wireless Broadband Access Service --------------------------------------------------------- Chilean telco Manquehue Net initiated Thursday its wireless broadband access service, called Wi-Fi Evolution, reports Business News Americas. The service, according to Manquehue Net Chief Executive Jorge Troncoso, offers base stations or access points that plug into its existing wireline broadband service. The Company currently has 9,000 ADSL clients for this existing service, and with the new service, the Company expects to have 4,000 customers by the end of 2004. The Company is offering a residential plan for CLP6,900 (US$10) a month and a corporate plan for CLP12,900 a month. Each plan includes a single access point, but the corporate plan offers three PCI cards, while the residential package provides just one. Wi-Fi Evolution is targeted at mid-sized businesses in particular, Troncoso said, adding that services for large corporations would be provided on a case-by-case basis, rather than as part of Evolution, Troncoso said. CONTACT: MANQUEHUE NET S.A. Av. Condor 796, Enterprise City, Huechuraba Santiago Chile Phone: 00 562 243 8800 Fax: 00 562 248 7292 EMAIL: info@manquehue.netl Home Page: http://www.manquehue.net/ http://www.manquehue.cl Contact: Mr. Miller Williams, President Sr.Jos, Luis Rabat Vilaplana, Vice President SCOTIASUDAMERICANO: Seeks To Resolve Conflict With Corfo -------------------------------------------------------- Legal advisors to stockbroker ScotiaSudamericano, a unit of Canadian Scotiabank in Chile, have been holding negotiations with the legal advisors to Chilean Economic Development Corporation (Corfo) in an attempt to reach an out-of-court agreement with the government-run organization on the Inverlink case. The talks are headed by lawyer Alberto Pulido Cruz from the firm Philippi, Yrarrazaval, Pulido & Brunner- representing Scotiabank and the law firm Hinzpeter Jana & Valle advising Corfo. However, sources related to the financial company pointed out they weren't aware of the talks with Corfo and that the stockbroker trusts the legal investigations will prove it acted strictly according to law. ScotiaSudamericano has been involved in the Corfo-Inverlink scandal since the Appeal Court processed its former leader Gino Tirapegui for infraction of the Securities Law, when it was found out he had transferred to Inverlink CLP2.98 billion in fixed-term deposits that belonged to Corfo. After this prosecution, Corfo requested an embargo on US$4.6 million worth of ScotiaSudamericano's assets. The negotiations between Corfo and Scotiabank would point at reaching an economic accord, through which the stockbroker would cancel all or part of the losses (US$4.6 million) Corfo had to face as a consequence of the fraud committed by Tirapegui. In exchange, Corfo would refrain from suing the stockbroker. Inverlink Capitales was accused of numerous white-collar crimes including theft of classified information from the central bank, bribery of public officials and the stealing of government securities. Traders at several brokerages and Corfo have been accused for participating in the crimes. =============== C O L O M B I A =============== AVIANCA: Completes Restructuring, Seeks New Investor ---------------------------------------------------- Colombian Avianca airline has completed its restructuring, two weeks before the end of the second extension granted by a NY bankruptcy court, reports Portafolio. The restructuring saw Avianca reducing its fleet, defining the size of its labor force and making adjustments for the liquidation of its partner in the Allianza Summa consortium, Aces. Now, Avianca needs to speed up its search for a new investor. As part of the effort, the airline has contacted other airlines, including Lan Chile, as well as other possible investors. ============= E C U A D O R ============= PETROECUADOR: Insurance Tender Loaded With Irregularities --------------------------------------------------------- Roberto Goldbaum, CEO of local insurer La Union, is calling for the cancellation of the tender for insurance contracts at Ecuador's state oil company Petroecuador, reports Business News Americas. Colonial-AON, Panamericana, and Rocafuerte submitted final offers for the Petroecuador contract more than a week ago. Panamericana came in with the lowest bid at US$18.2 million including taxes, while Colonial bid US$19.1 million and Rocafuerte US$21.9 million. Goldbaum, who participated in the auction as head of a consortium incorporating local underwriters La Union, Ecuatoriano-Suiza and Atlas, suggested that the tender was mired with irregularities designed to favor the bid placed by Colonial, Petroecuador's current insurer. "We have been informed that of the three offers submitted, two do not comply with the percentage of reinsurance required, bringing Colonial into play with the required 40% base, although the bidding rules do not require these bases," Goldbaum said. "The rules for the auction establish coverage and deductibles with the bidder determining the price based on the cost of the reinsurance plus the over-rider. The minimum reinsurance on offer must be at least 40% of the total required. If you achieve this percentage but do not comply with the coverage you do not comply with the rules," he said. Goldbaum said that the manipulation of the auction process has been instigated by Colonial and AON, as well as the acquisitions committee of Petroecuador presided over by Edgar Jacome. ============= J A M A I C A ============= C&WJ: Infuriates Customers With New System ------------------------------------------ Some of Cable and Wireless Jamaica's (C&WJ) customers were enraged by the Company's decision to impose a toll limit facility, saying the Company has unilaterally restricted their calls. RadioJamaica.Com recalls that as of October 1, C&WJ started the phased introduction of a new toll limit facility for fixed line customers. Initially, toll limits will be set using an average of the customers last six monthly bills, the Company said. However, customers will be able to increase or decrease their limits. The initiative is designed to help customers, vice president for residential services, Patrick King, said in an attempt to soothe angry customers. In the meantime, the Office of Utilities Regulation said C&WJ has done nothing wrong in trying to protect itself. Communications Services Manager at the OUR David Geddes says the issue is not a regulatory matter. BLAISE MERCANT/CENTURY NATIONAL: FIS Sets Deadline For Claims ------------------------------------------------------------- Final efforts are now being made to make payouts to depositors of the failed Blaise Merchant Bank and Century National Financial Entities, RadioJamaica says in a report. The effort will come seven years after the two entities were taken over by the Finance Minister. Depositors will have until Friday to make claims for payouts. After that they can no longer make claims, says the Financial Institutions Services Limited (FIS), the Government-owned company, which owns all the assets and rights to Blaise Merchant and Century Financial Entities. Shortly after the two institutions collapsed, the Government made pay outs to depositors. However, some depositors did not take up the offers. =========== M E X I C O =========== BEPENSA SA: S&P Upgrades Ratings, Removes CreditWatch ----------------------------------------------------- Standard & Poor's Ratings Services said Friday that it raised its long-term corporate credit ratings on Bepensa S.A. de C.V. to 'BB+' from 'BB'. At the same time, all ratings were removed from CreditWatch, where they were placed on Dec. 16, 2002. The outlook is stable. The rating actions result from Bepensa's sustained financial strength during the past couple of years, including a considerable debt reduction. "The ratings reflect Bepensa S.A. de C.V.'s strong financial profile stemming from its operating efficiency, reinforced market position, and positive industry growth trends in the region," said Standard & Poor's credit analyst Federico Mora. These factors are partially offset by Bepensa's geographic concentration, and by the fact that Coca-Cola Co. (KO) does not participate in the company's ownership, which has been a favorable factor in the ratings on other bottlers. The company is the exclusive KO bottler of the Yucatan Peninsula in Mexico. Positive economic and demographic factors together with warm weather conditions continue to influence a relatively high per capita consumption of soft drinks in the region. A better product mix, intensive placement of coolers, and an enlarged distribution system, together with ongoing marketing and advertising campaigns by the company and KO, have been key to consolidating the company's market position, despite considerable competition from The Pepsi Bottling Group Inc. in the region. Approximately 58% of the company's revenues in 2002 were represented by KO's products, with Coke being the most important soft drink, which provides for certain volume and revenue stability and is the main contributor to cash flow generation. Income from the bottled water division has increased significantly during the past five years and is expected to continue growing as a result of an enlarged distribution network and an increased awareness by the population to drink bottled water. Bepensa's enhanced operating efficiency is provided by an important presale system, plant modernization, and high vertical integration, resulting in improved operating margins. Standard & Poor's expects continued strength in Bepensa's franchise value and financial indicators despite increased market competition. Upside rating potential is constrained by the company's limited diversification. ANALYST: Federico Mora, Mexico City (52) 55-5279-2036 CALPINE CORP.: Mexican Project Leaves S&P Ratings Unchanged ----------------------------------------------------------- Standard & Poor's Ratings Services said Friday that Calpine Corp.'s (B/Negative/--) plan to build, own, and operate a 525 MW power plant in Mexico does not materially affect the rating, but is slightly credit positive. Calpine will supply two combustion gas turbines from its inventory to the project, giving the company a 45% interest in the facility. Therefore, the project will add contractually based revenues to Calpine's portfolio without depleting cash and diminishing Calpine's liquidity. Mitsui & Co. Ltd. will be the majority owner of the combined- cycle plant at Valladolid in the Yucatan Peninsula. The facility will deliver electricity to Comision Federal de Electricidad under a 25-year power sales agreement. Construction at Valladolid III is scheduled to begin in the second quarter of 2004. Toshiba will be the engineering, procurement, and construction subcontractor. Calpine Power Services Inc. will assist Toshiba in the engineering, construction, and commissioning of this facility and will provide operations and maintenance services. The facility is expected to begin operations in mid-2006. ANALYSTS: Jeffrey Wolinsky, CFA, New York (1) 212-438-2117 Peter Rigby, New York (1) 212-438-2085 CORPORACION GEO: 3Q03 Earnings Ride Rising Tide of Housing ---------------------------------------------------------- Corporacion Geo, S.A. de C.V., the largest builder of affordable and middle-income housing in the Americas and the leading homebuilder in Mexico, reported Friday its third quarter 2003 earnings results. The solid double-digit operating gains reported in each line of the income statement, as well as the sizable reduction in net debt and the historical best in accounts receivable to sales, are the key points to notice. Luis Orvananos, Founder and President of Corporacion Geo, stated, "We are completely focused at Geo on satisfying the customer, proof of which are the recent National Housing awards won by the Company. This strategic focus has permitted us to achieve our growth and profitability targets for the ninth quarter in a row. We are very committed to the housing sector in this country, and each quarter motivates us to continue working for the benefit of our customers and investors. We are confident that 2004 will be an outstanding year for Geo, its clients, and its investors." For the ninth consecutive quarter in a row, the 3Q2003 operating results observed solid increases in all lines of the P&L and a more solid Balance Sheet. Units sold grew 9.5%, totaling 7,540 homes sold during the quarter, while Revenues grew 11.3% year- over-year, reaching $1,635.9 million pesos. In addition, Gross Profit increased by 15.4%, with a Gross Margin of 26.8%, compared to 25.8% in 3Q2002. Operating Profit presented an increase of 21.0% with an Operating Margin of 16.8%, versus 15.4% in the 3Q2002. Finally, EBITDA showed an increase of 13.6% in comparison to 3Q2002, with a margin of 22.1% for this period, compared to 21.7% in the 3Q2002. When comparing year-over-year, Net Profit grew by 17.3% totaling $132.8 million, compared to $113.3 million in the 3Q2002, with a Net Margin of 8.1% in the 3Q2003. Concerning Financial Structure, the Free Cash Flow generation presented an improvement of $1.5 million pesos over last year, having risen from $-143.4 million in 2002 to $-141.9 million in September of this year. This improvement in cash generation can be primarily attributed to the Accounts Receivable to Sales that reached an historical best of 45.9%, compared to the 57.8% for the third quarter of 2002. The level of Cash and Cash Equivalents showed an increase of 14.1% when compared to the third quarter of 2002, from $538.3 million to $614.3 million pesos. As a result of the implementation of strategies to improve the Company's management of Working Capital, the turnover Inventories plus Accounts Receivable rotation have shown a marked improvement over the past quarters ending at 288 days. However, the land purchasing during the quarter moved up the inventory turnover to 165 days. It should be noted that despite Geo's 70% larger volumes compared to its competitors, these indicators are Industry- leading. Lastly, Net Debt presented an important decrease of 23.0% standing at $1,512.6 million pesos versus $1,965.5 million pesos in the 3Q2002, while the Debt to Capitalization ratio observed a decrease over 3Q2002, moving from 41.1% to 33.7% in 3Q2003. Finally, the debt risk profile significantly improved during the quarter, especially considering the fact that US dollar debt exposure is less than 4.5% of total financial liabilities, the composition of the debt with 50.0% short-term and 50.0% long- term, and the improvement in Interest Coverage, moving from 2.4 in 3Q2002 to 2.7 in the 3Q2003. "With the solid third quarter results, we have already surpassed several of the goals that we had set for ourselves at the end of 2002, including the accounts receivable balance and EBITDA margin. Each day Geo reinforces its leadership in the industry, increasing the efficiency and improving the sales mix in order to take advantage of the very strong growth in the middle-income housing market, while still achieving growth in volumes and income, and improving profitability. Geo is better positioned than ever for the future," commented Miguel Gomez Mont, CEO. Lastly, Ivan Vela, Director of Finance and Capital Markets, added, "The consistency and predictability that Geo has demonstrated over the last nine quarters ought to be reflected in a better valuation for the Company and in greater liquidity for our shares. We believe that despite the rally in the share price so far this year, the multiples at which our shares trade are below historic levels, below those of our domestic and international peers, and low compared to the overall market. The GEOB share today offers both value and sustainable growth in an industry with high visibility." A detailed, public and complementary version of this earnings release is available WWW.CASASGEO.COM ======= P E R U ======= EMPRESA LUCCHETTI: To Continue Operating In Peru Via Local Unit --------------------------------------------------------------- Chilean pasta producer Empresa Lucchetti, which earlier this year decided to leave Peru following an eviction order, is considering plans to continue to operate in the country through a local distributor, reveals El Diario. The Company is planning to launch such operation in November 2003, through which it expects to have a 2% market share compared with the 25% market share it had before the closure of its local plant. Furthermore, the Company has also approved plans to increase its share capital by US$50 million. The proceeds will be used to reduce debt, which totals more than US$75 million in Chile and US$15 million in Peru. ================= V E N E Z U E L A ================= SIDOR: Labor Court Grants `Constitutional Injunction' Request ------------------------------------------------------------- A labor court in eastern Venezuela's Bolivar state ordered trade union Suttis not to impede normal operations at local steelmaker Sidor, reports Business News Americas. Sidor, the largest steelmaker in Venezuela, took the action in response to a 24-hour stoppage by Suttis at its plant last Sunday. The order came after Sidor asked for a "constitutional injunction" to prevent the union from interfering with the normal working of the Company after it presented a request before the labor inspectorate for the payment of workers' bonuses. The judge issued the injunction on constitutional grounds, based on the right to work and the right of free movement. 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. The group bought what was originally a 70% stake in the Company from the state for US$2.3 billion. The remaining 40% of the steelmaker is owned by state conglomerate CVG. 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2003. All rights reserved. ISSN 1529-2746. 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