/raid1/www/Hosts/bankrupt/TCRLA_Public/031031.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, October 31, 2003, Vol. 4, Issue 216
Headlines
A R G E N T I N A
ACINDAR: Argentine S&P Rates $100M of Bonds `raD'
ANNUIT COEPTIS: Receiver Closes Verification Process Today
AT MARKETING: Court Approves Creditor's Petition For Bankruptcy
BANCO DE GALICIA: Working On Alternative Debt Proposal
BANCO DE GALICIA: Fitch Rates $412M of Bonds `D(arg)'
BANCO RIO: $250M of Bonds Get Default Ratings From Fitch
BAUTISTA: Individual Reports Due Today
CABLEVISION: Extends Debt Restructuring Offer for the 3rd Time
CABLEVISION: Appellate Court Rules in its Favor
CHAMPIGNONES ARGENTINOS: Court Approves Bankruptcy Petition
DIRECTV LA: Compensation Applications Approved
DISCO: Enormous Losses Cause Concern Among Interested Buyers
ECIPSA: Moody's Assigns Default Ratings To Bonds
EGYDA: Court Assigns Receiver For Bankruptcy Process
GATIC: Argentine Govt. Analyzes Possibility of Expropriation
GLASS PARFUM: Court Orders Bankruptcy
GROUP WISE: Verifications in Bankruptcy Process End
INDUSTRIAS METALURGICAS: Bonds Get `D' From Moody's
MASTELLONE HERMANOS: Concludes $2.5M Headquarters Sale
MELINAO: Enters Bankruptcy on Court Orders
MOTORFUEL: Receiver Oversees Bankruptcy Proceedings
PETROBRAS ENERGIA: Standard & Poor's Rates $100M Bonds 'B-'
TRANSENER: Canadian Firm Confirms Interest in Acquiring A Stake
VEYKA MATERIALES: Court Orders Bankruptcy
B R A Z I L
BCP: Anatel Approves America Movil Purchase
ROYAL AHOLD: Carrefour Likely To Balk At Plans to Acquire Assets
TCP: Reports 3Q03 Consolidated Results
E C U A D O R
FILANBANCO: Group of Creditors Steps Up Pressure to Recover Debt
M E X I C O
EMPRESAS ICA: Reports Third Quarter 2003 Results
HYLSAMEX: EBITDA Down 32% in the 3Q03
MAXCOM TELECOMUNICACIONES: Announces 3Q03 Results
MEXICANA DE AVIACION: Reaches $400M Deal With Airbus
NII HOLDINGS: Announces Strong Performance for the 3Q03
PEMEX: S&P Releases Credit FAQ
SATMEX: Fails to Obtain EximBank Loan
V E N E Z U E L A
SIDOR: Halts Production Amid Industrial Relations Dispute
- - - - - - - -
=================
A R G E N T I N A
=================
ACINDAR: Argentine S&P Rates $100M of Bonds `raD'
-------------------------------------------------
Some US$100 million worth of corporate bonds issued by Acindar
Industria Argentina de Aceros received default ratings from
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
on Monday. The rating was based on the Company's finances as of
June 30, 2003, the ratings agency said.
The Comision Nacional de Valores, Argentina's securities
regulator, described the affected bonds as "Obligaciones
Negociables simples, no convertibles en acciones, autorizadas por
AGOyE de fecha 5.8.96". These are classified under "simple
issue", and maturity date is given as February 16 next year.
S&P said that bonds are rated `raD' when they are in default, or
their obligor has filed for bankruptcy.
ANNUIT COEPTIS: Receiver Closes Verification Process Today
----------------------------------------------------------
Mr. Andres Landro, receiver for Buenos Aires' Annuit Coeptis,
closes the credit verification process for the bankruptcy
proceedings today. The receiver will now prepare the individual
reports on the results of the verifications.
Buenos Aires Court No. 19, which handles the Company's case,
ordered the receiver to submit the individual reports on December
15 this year. The receiver must also submit a general report on
February 27 next year. This report is prepared after the
individual reports are processed at court.
The Company's assets will be liquidated at the end of the process
to reimburse creditors. Payments will be based on the results of
the verification process.
CONTACT: Annuit Coeptis S.A.
Vicente Lopez 1031
Buenos Aires
Andres Landro
Scalabrini Ortiz 215
Buenos Aires
AT MARKETING: Court Approves Creditor's Petition For Bankruptcy
---------------------------------------------------------------
Judge Braga of Buenos Aires Court No. 22 approves a motion
seeking the bankruptcy of local television producer A T Marketing
y Comunicacion S.A.. Argentine newspaper La Nacion reports that
the Company's creditor, ATC S.A., filed the petition for
nonpayment of debt.
Mr. Angel Mantero, a local accountant, was assigned as the
receiver for the process. He will verify creditors' claims until
November 28 this year. This part of the bankruptcy process
determines the nature and amount of the Company's debts.
The receiver is also required to prepare the individual and
general reports on the process. However, the source did not
indicate whether the court has set the deadlines for the filing
of these reports.
CONTACT: A T Marketing y Comunicacion S.A.
6th Floor, Room A
Ayacuho 1584
Buenos Aires
Angel Mantero
8th Floor
Lavalle 1125
Buenos Aires
BANCO DE GALICIA: Working On Alternative Debt Proposal
------------------------------------------------------
Argentine bank Banco de Galicia y Buenos Aires SA is consulting
its creditors regarding alternative debt exchange scenarios, in
the aim of outlining a refinancing proposal that is well received
in the market.
The proposal would contemplate honoring the original currency (US
dollars) without write-offs and recognizing accrued and unpaid
interests.
The bank wants to move forward with the restructuring of US$1.49
billion in liabilities, which must be regularized before December
5. Banco Galicia would be willing to publicly announce its final
proposal before November 15.
In the end of September, its shareholders approved the creation
of a global program for the issuance and re-issuance of simple
bonds for a total nominal amount in circulation at any moment of
up to US$2 billion that will be used to restructure the debt to
foreign creditors.
Seventy percent of Galicia's debt belongs to banks and
multilateral organizations and only thirty percent is in bonds.
Market analysts pointed out Galicia executives are optimistic
about the result of the proposal they would officially announce
in the first half of November.
The model they are working on is similar to the one presented by
Banco Hipotecario in mid August, said an analyst. There is no
write-off but the terms are extended, the source added.
CONTACT: Banco de Galicia Y Buenos Aires
Tte Gral Juan D Peron 407
Buenos Aires
Argentina
C1038AAI
Phone: +54 11 6329 0000
Fax: +54 11 6329 6100
Home Page: http://www.bancogalicia.com.ar
Contact:
Juan Martin Etchegoyhen, Chairman
Antonio R. Garces, Vice Chairman
Grupo Financiero Galicia SA
2nd Floor
No 456 Tte Gral Juan D Peron
Buenos Aires
Argentina 1038
Phone: +54 11 4343 7528/9475
Home Page: http://www.gfgsa.com
Contact:
Atty. Abel Ayerza, Chairman
BANCO DE GALICIA: Fitch Rates $412M of Bonds `D(arg)'
-----------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. rates a total of
US$412 million worth of Banco de Galicia y Buenos Aires'
corporate bonds `D(arg)', relates the Comision Nacional de
Valores, Argentina's securities regulator.
Some US$62 million of the affected bonds are called "Obligaciones
Negociables (con garantˇa MIGA)", with undisclosed maturity date.
Another US$200 million worth are called "Obligaciones Negociables
a Largo Plazo", while the remaining US$150 million are simply
described as "obligaciones negociables". The bonds were all
classified under "Simple Issue.
Fitch said that the rating, based on the Company's finances as of
the end of June this year, is assigned to financial commitments
that are currently in default.
BANCO RIO: $250M of Bonds Get Default Ratings From Fitch
--------------------------------------------------------
Fitch Argentine Calificadora de Riesgo S.A. rates US$250 million
of corporate bonds issued by Banco Rio de la Plata S.A. `D(arg)',
according to the Comision Nacional de Valores, Argentina's
securities regulator.
The rating, issued last Friday, was based on the Company's
finances as of June 30 this year. This is assigned to financial
commitments that are in default. The rating applies to bonds
called "obligaciones negociables" with unknown maturity date. The
bonds were classified under "simple issue".
BAUTISTA: Individual Reports Due Today
--------------------------------------
The individual reports for the bankruptcy of Argentine company
Bautista S.A. must be submitted to the court today, October 31,
2003. These reports were prepared after the completion of the
verification process, which were done "por via incidental"
The Company's receiver, Mr. Osvaldo Nicolini, an accountant from
Buenos Aires, will prepare the general reports after the
individual reports are processed at court. Local sources,
however, did not indicate the deadlines for the filing of these
reports.
The Troubled Company Reporter - Latin America earlier indicated
that the city's Court No. 18 handles the Company's case.
CONTACT: Osvaldo Nicolini
Alvarez Thomas 3036
Buenos Aires
CABLEVISION: Extends Debt Restructuring Offer for the 3rd Time
--------------------------------------------------------------
Argentine cable TV operator Cablevision has extended its
restructuring offer on US$797 million in defaulted debt for the
third time, the operator said Tuesday.
In a statement to the Buenos Aires stock exchange, Cablevision
said bondholders will now have until November 3 to approve the
proposal. The previous deadline was October 27, which was already
a weeklong extension from a previous 10-day extension.
The Company said that as of its previous expiry date of October
27, creditors representing US$268.8 million of the potential
US$725 worth of eligible bonds had agreed to the Company's offer.
This is a decrease in bondholder approval from the US$270.4
million worth Cablevision had secured earlier this month. The
offering needs two-thirds approval from creditors to proceed.
Cablevision has offered to buy back up to US$270 million of the
debts at 37% of their original value. The Company is using
US$54.9 million of its own cash for the buyback. Another US$45
million will be contributed by Cablevision's two main
shareholders, Hicks, Muse, Tate & Furst and Liberty Media Corp.
CABLEVISION: Appellate Court Rules in its Favor
-----------------------------------------------
Argentine appellate court has completely annulled all actions
relating to a lawsuit against the majority shareholders of
Argentine cable operator Cablevision SA, the Company said
Wednesday.
In a filing to the Buenos Aires stock exchange, Cablevision said
the court has thrown out everything but the original claim and
ordered an investigation of the judges involved. The court made
its decision after finding major constitutional and ethical
problems with the proceedings, according to excerpts from the
court ruling reprinted in the filing.
In November, ELP Investments, a Cayman Islands fund owned by
former Argentine banker Raul Moneta, sued Texas buyout firm
Hicks, Muse, Tate & Furst, which owns Cablevision along with
Liberty Media Corp. The lawsuit alleged fraudulent
administration, claiming Hicks Muse violated an agreement on how
it was to use Moneta's money after the two firms ended a
partnership in CEI Citicorp Holdings. In particular, the lawsuit
says Hicks Muse wrongly used Moneta's funds to buy its stake in
Cablevision.
In May, the original complaint was expanded to include
Cablevision, alleging the Company twice purchased its trademark
from a firm called Pramer while failing to make debt payments.
The next month, the court assigned an "informant inspector" to
gather documents on the trademark transaction. The papers
produced from that investigation, as well as all other evidences
and documentation gathered since the lawsuit was filed, have now
been annulled. According to the court ruling reproduced in the
filing, the appellate court determined that the presiding
magistrates in the case had conflicts of interest as a result of
"forum shopping."
The filing quoted the ruling as saying that in the Cablevision
case, "rationality, impartiality and equity...have been
absolutely forced upon and broken, scorning the institutional
quality that corresponds to personalized jurisdictional activity
and is embodied in the judges that sustain it."
In addition to throwing out all action that has been taken since
the lawsuit was filed, the appellate court has also asked the
judges to turn over all files related to the case to be
investigated for possible criminal activity.
Cablevision has faced legal battles in the last year. The Company
is also facing a separate lawsuit from a Cayman Islands fund
seeking US$249,000 in defaulted Cablevision bonds. That claim was
filed in July in New York.
CHAMPIGNONES ARGENTINOS: Court Approves Bankruptcy Petition
-----------------------------------------------------------
A petition for the bankruptcy of Argentine company Champignones
Argentinos S.A. has received court approval. A report by local
newspaper La Nacion indicates that the Judge Villanueva of Buenos
Aires Court No. 23 approved the petition filed by the Company's
creditor, Sanlu Film S.A. for nonpayment of debt.
Creditors are given until December 9 this year to have their
claims verified by the court-appointed receiver, Ms. Laura
Marletta. The receiver is instructed to prepare the individual
and general reports on the process. La Nacion, however, did not
indicate whether the court, which is assisted by Clerk No. 45,
Dr. Timpanelli, has set the deadlines for the filing of the
receiver's reports.
CONTACT: Champignones Argentinos S.A.
Maure 1560
Buenos Aires
Laura Marletta
7th Floor Room A
San Jose de Calazans
Buenos Aires
DIRECTV LA: Compensation Applications Approved
----------------------------------------------
Judge Walsh approves the interim compensation of these
professionals and the reimbursement of their expenses incurred
for the period between March 18, 2003 through June 30, 2003:
Professional Compensation Expenses
------------ ------------ --------
Huron Consulting Group, LLC $495,000 $27,904
Young Conway Stargatt & Taylor, LLP 61,870 12,440
Mayer Brown Rowe & Maw, LLP 792,795 73,587
Protiviti, Inc. 517,626 71,008
Accordingly, the Court authorizes DIRECTV LATIN AMERICA to pay
the approved compensation, except the agreed withheld portion,
and to reimburse the expenses to these professionals. (DirecTV
Latin America Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
DISCO: Enormous Losses Cause Concern Among Interested Buyers
------------------------------------------------------------
The big losses reported by Disco SA, the troubled Argentine unit
of Dutch supermarket retailer Royal Ahold NV, have raised concern
among the investors that are participating in the race to
purchase the firm.
As a result, the sale of the Company will be delayed until the
end of the year or the beginning of 2004, as the most important
candidates announced they would examine Disco's 2002 balance
sheet more deeply.
It was said that Casino, Cencosud and businessman Francisco de
Narvaez, and some of the investors interested in acquiring Disco,
would initiate sort of new due diligence process in order to
check whether the reasons Disco gave to justify its ARS2.6
billion losses are true.
According to the supermarket group, ARS1.98 billion of the
liabilities have to do with the impact of the devaluation of the
Argentine peso, the inflation and the inflation adjustment
altogether.
The big losses came as a shock, taking into account that a loss
of between ARS700 million and ARS1 billion had been expected.
CONTACT: DISCO S.A.
Larrea 847, Piso 1
1117 Buenos Aires, Argentina
Phone: +54-11-4964-8000
Fax: +54-11-4964-8076
Home Page: http://www.disco.com.ar
ECIPSA: Moody's Assigns Default Ratings To Bonds
------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. rates corporate
bonds issued by Argentine company Emprendimientos Inmob. y
Financieros SA(Ex ECIPSA) `D', relates the country's securities
regulator, the Comision Nacional de Valores.
The bonds were described as "Obligaciones Negociables Clase B",
with undisclosed maturity date. The bonds were classified under
"Simple Issue".
The rating, which is assigned to financial obligations that are
in default, was based on the Company's finances as of July 31
this year. The rating was issued last Friday.
EGYDA: Court Assigns Receiver For Bankruptcy Process
----------------------------------------------------
Buenos Aires Court No. 10 assigned Mr. Nestor Rodolfo Del Potro
as receiver for local company Egyda S.R.L., relates local news
portal Infobae. Clerk No. 20 aids the court on the case.
In order to determine the nature and amount of the Company's
debts, the receiver will verify creditors' claims. The court set
the verification period to end on May 27 next year.
The receiver will submit the individual reports on the results of
the verifications on June 28, followed by the general report on
August 25. The Company's assets will then be liquidated to
reimburse its creditors.
CONTACT: Nestor Rodolfo Del Potro
Ave Corrientes 1291
Buenos Aires
GATIC: Argentine Govt. Analyzes Possibility of Expropriation
------------------------------------------------------------
The Argentine government will be analyzing the possibility of
expropriating troubled textile firm Gatic and transferring the
Company to a new investor. The strategy could be to wait for the
court in charge of Gatic's formal restructuring proceeding to
declare the Company bankrupt.
The State is Gatic's major creditor, through the tax bureau,
AFIP, and the government-run banks Nacion, Provincia de Buenos
Aires and Ciudad de Buenos Aires. Other creditors are UK's
Standard Chartered and a group of suppliers such as Adidas.
Gatic's plants are shuttered, 4,500 workers have been suspended
and there is US$350 million in debt to restructure. It is unable
to get credit and has severe supply issues.
Gatic's current owners, the Bakchellians, would be negotiating
with possible investors in an attempt to avoid the expropriation.
GLASS PARFUM: Court Orders Bankruptcy
-------------------------------------
Glass Parfum S.R.L., which is based in Buenos Aires, enters
bankruptcy on orders from the city's Court No. 10. Argentine news
portal Infobae relates that Clerk No. 20 aids the court on the
case.
The receiver, Mr. Nestor Rodolfo Potro, will verify creditors'
claims until February 11 next year. The individual reports, which
are prepared upon completion of the verifications, must be
submitted to the court on March 24.
The general report, which is prepared after the individual
reports are processed at court, must be filed on May 10, 2004.
The Company's assets will then be liquidated to repay its
creditors.
CONTACT: Nestor Rodolfo Del Potro
Ave Corrientes 1291
Buenos Aires
GROUP WISE: Verifications in Bankruptcy Process End
---------------------------------------------------
The credit verification process for the bankruptcy of Argentine
company Grupo Wise S.R.L. ends today. The Company's receiver, Mr.
Carlos Alberto Ortiz, who verified the claims, will prepare the
individual reports.
Court No. 3 of the Civil and Commercial Tribunal of the Argentine
province of Cordoba, which handles the Company's case, also
requires the receiver to prepare a general report on the case.
Local sources, however, did not mention the deadlines for the
receiver's reports.
CONTACT: Group Wise S.R.L.
Punilla 2066
Cordoba
Carlos Alberto Ortiz
Arturo M Bas 60
Buenos Aires
INDUSTRIAS METALURGICAS: Bonds Get `D' From Moody's
---------------------------------------------------
Corporate bonds issued by Industrias Metalurgicas Pescarmona
received default ratings from Moody's Latin America Calificadora
de Riesgo S.A. last Friday. The `D' rating was based on the
Company's finances as of the end of July this year.
Bonds described as "Programa de obligaciones negociables", worth
a total of US$250 million, are affected. These are classified
under "program" and mature on March 15, 2006. Moody's said that
the ratings are given to bonds that are currently in default.
MASTELLONE HERMANOS: Concludes $2.5M Headquarters Sale
------------------------------------------------------
Argentinean dairy products company Mastellone Hermanos SA
concluded the US$2.5-million sale of its central headquarters in
Leandro N. Alem Avenue, in Buenos Aires, local news source La
Nacion reported. The buyer's name was not released.
MELINAO: Enters Bankruptcy on Court Orders
------------------------------------------
Buenos Aires Court No. 15 declared local company Melinao
S.A.C.I.F. "Quiebra", effectively placing the Company under
bankruptcy. Working with Clerk No. 29, the court assigned Mr.
Luis Di Cesare as the Company's receiver.
Creditors must have their claims authenticated by the receiver
before December 19 this year, relates local news source Infobae.
The verification process clarifies the nature and amount of the
Company's debts.
In the meantime, the source did not mention whether the court has
set the deadlines for the filing of the receiver's reports.
CONTACT: Melinao S.A.C.I.F.
Ave del Linertador 3014
Buenos Aires
Luis Di Cesare
Viamonte 1336
Buenos Aires
MOTORFUEL: Receiver Oversees Bankruptcy Proceedings
---------------------------------------------------
Ms. Elba Bongochea, an accountant from Buenos Aires, will oversee
the bankruptcy process of local company Motorfuel S.A., relates
Argentine newspaper La Nacion. Verifications of creditors' claims
will run until March 26 next year.
The Company entered bankruptcy on orders from the city's Court
No. 18. The ruling came after the Company's creditor filed a
bankruptcy petition for nonpayment of debt.
CONTACT: Motorfuel S.A.
J.P. Varela 5275
Buenos Aires
Elba Bengochea
6th Floor
Uriburu 1010
PETROBRAS ENERGIA: Standard & Poor's Rates $100M Bonds 'B-'
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned Wednesday its 'B-'
rating to Argentina-based oil and gas company Petrobras Energˇa
S.A.'s (PESA) upcoming issuance of 9.35% 10-year $100 million
bonds. The company's 'B-' foreign currency corporate credit
rating is affirmed. The outlook is stable.
"The issuance of this new instrument reflects an improved
financial flexibility for the company based on Petrobras'
ownership. Given that the proceeds will be applied to repayment
of short-term financial debt, the maturity schedule of the
company will improve," said Standard & Poor's credit analyst
Pablo Lutereau.
The ratings also incorporate the potential support from its main
shareholder, Petroleo Brasileiro S.A. - Petrobras, the company's
strong export profile, geographic diversification, low cost
structure, and geological knowledge of the region.
With sales of more than $1.4 billion in 2002 and consolidated
assets of approximately $4 billion, PESA is one of the most
important power companies in Argentina and the Southern Cone.
PESA's financial flexibility is limited by current market
conditions and the company's financial profile. Although no
capital infusions or financial aid by the shareholder are
expected in the near term, the existence of cross-default clauses
between Petrobras' indebtedness and PESA's debt results in an
incentive for the former to support its subsidiary. According to
Standard & Poor's criteria, the mere existence of such clauses
does not merit equalization of the ratings. Nevertheless, in the
current case, Standard & Poor's factors into the ratings some
potential support to PESA from its parent, Petrobras.
PESA's liquidity is somewhat adequate. As of June 2003, PESA's
total debt amounted to $2.2 billion, including approximately $540
million in the short term. Although the company's funding ability
is diminished by current market conditions, the restructuring of
all its obligations significantly reduces PESA's refinancing
risk. The company also had approximately $250 million in cash and
short-term investments as of the same date. As is common practice
in most Latin American countries, the company does not have
committed credit lines.
The stable outlook reflects the reduction of immediate
refinancing risk for oil-producing companies in Argentina after
the release of Decree 2703/2002 coupled with PESA's debt profile
restructuring. In addition, the existence of certain cross-
default clauses between Petrobras' and PESA's indebtedness
provides some incentives for the parent to support its Argentine
subsidiary. Both the rating and outlook assume no significant
changes in the regulation affecting the sector. Should any such
change take place, the ratings will be adjusted to reflect either
the improvement or deterioration in PESA's repayment ability.
ANALYST: Pablo Lutereau
Buenos Aires
Phone: (54) 114-891-2125
Reginaldo Takara
Sao Paulo
Phone: (55) 11-5501-8932
TRANSENER: Canadian Firm Confirms Interest in Acquiring A Stake
---------------------------------------------------------------
Canadian electricity holding Hydro-Quebec has officially
confirmed it is interested in acquiring Argentina's electric
power transporter Transener S.A.
Jacques Regis, president at Hydro-Quebec's Chilean unit HQI Chile
Holding, said the Company might make an offer for a part or the
entire 32.5% stake in Transener that belongs to Brazil's
Petrobras Energia Participaciones (formerly Perez Companc).
We know there will be an opportunity to evaluate the acquisition
of Transener seriously, said Regis in Montreal to Bloomberg. If
the conditions are suitable, we would definitively be interested.
It would be logical for us to be in Argentina, he added.
Regis went on to say that they would probably partner with a
local investor for the deal. The partners could be Impsa or
Cartellone.
Nevertheless, the executive pointed out there's uncertainty
regarding Transener. There is a new government in Argentina. We
will be keeping an eye on its development, Regis stated.
Hydro-Quebec has presence in Chile, where it controls 100% of the
power transporter Transelec, and Peru, where it owns a 56.66%
stake in TransMantario, another transporter.
A few weeks ago, Petroleo Brasileiro S.A.'s Argentine unit
Petrobras Energia Participaciones S.A. said it didn't expect to
be in a position to sell Transener S.A. until 2005.
Petrobras Energia Director Oscar Vicente said the government's
freeze on utility rates had meant a sale was unviable for the
power unit, which Petrobras promised to sell as a condition for
government approval of its purchase of the Argentine unit,
formerly known as Perez Companc S.A.
"Right now, with the rates that the industry has, and with
Transener being in default, the company doesn't have business
viability," Vicente had said. Asked whether that meant there
could be a sale before the end of 2004, the government's self-
imposed deadline for a complete renegotiation of public service
contracts with private utilities, Vicente said, "no, certainly
not." Transener has to renegotiate its US$470 million debt in
default since April 2002.
Transener is the biggest high-voltage power provider in
Argentina. That status led former President Eduardo Duhalde to
raise concerns about a concentration of ownership in the power
transportation business in the hands of a foreign government-
controlled company - Petrobras' biggest shareholder is the
Brazilian government. As a condition for approval of its
Petrobras takeover of Perez Companc then, the Brazilian energy
giant agreed to sell Transener. No fixed timetable was given,
however.
VEYKA MATERIALES: Court Orders Bankruptcy
-----------------------------------------
Buenos Aires' Court No. 7 ordered the bankruptcy of local company
Veyka Materiales S.A., relates local news portal Infobae. Clerk
No. 13 assists the court on the case, the report adds.
Creditors are instructed to present their proofs of claim to the
appointed receiver, Mr. Guillermo Alberto Ickowicz before
February 6 next year. This part of the bankruptcy process
determines the nature and amount of the Company's debts.
The receiver is also required to prepare the individual and
general reports. However, the local source did not mention the
filing deadlines for these.
CONTACT: Guillermo Alberto Ickowicz
Talcahuano 768
Buenos Aires
===========
B R A Z I L
===========
BCP: Anatel Approves America Movil Purchase
-------------------------------------------
Mexico's America Movil, Latin America's largest wireless
operator, finally gained the go-ahead signal from Anatel,
Brazil's National Telecommunications Agency, to proceed with its
planned purchase of local telephone company BCP, according to a
report released by Notimex.
In order to close the US$650-million transaction announced last
month, America Movil, which is part of the empire of tycoon
Carlos Slim, and BCP, must present all documents needed within 30
days.
America Movil already operates in Brazil through its affiliate
Claro, the second largest cellular operator in the market. With
the purchase of BCP, America Movil must return the license it
acquired last year to operate cellular services independently in
Sao Paolo.
CONTACT: BCP S.A.
Rua Fl>rida, 1970 4o andar
Sao Paulo - SP
Tel: 55 11 5509-6428
Fax: 55 11 5509-6257
Home Page: http://www.bcp.com.br
ROYAL AHOLD: Carrefour Likely To Balk At Plans to Acquire Assets
----------------------------------------------------------------
Speculation is growing that French retailer Carrefour SA is
backing out of a contest to buy the Brazilian assets of Dutch
retailer Ahold NV, after Carrefour's top Brazil executive
reiterated this week his commitment to a slow and steady growth
here.
"We prefer to grow organically rather than buy other companies,"
Eric Uzan, the head of Carrefour's Brazil operations, told
reporters in Sao Paulo Wednesday.
Uzan's comments come as markets wait to see whether Carrefour,
U.S. retail giant Wal-Mart Stores Inc., or Brazil's Companhia
Brasileira de Distribuicao SA (CBD), will win a contest to buy
the Brazilian assets put on the auction block by Ahold in the
wake of an accounting scandal earlier this year.
Ahold is selling the Bompreco supermarket chain as well as its
Hipercard consumer credit business and the smaller G. Barbosa
chain, all in Northeastern Brazil. Bompreco, with 120 stores and
BRL3.34 billion (US$1.17 billion) in sales, was Brazil's third
biggest retailer last year.
Market sources say Wal-Mart, CBD and Carrefour all submitted bids
for the assets last month, but Carrefour discouraged speculation
from the start that it might bid aggressively.
Uzan, who took the reins in Brazil early this year, has
repeatedly said Carrefour is focused on cutting costs and
improving profitability rather than making fresh acquisitions
here. Carrefour is tripling investment to BRL 600 million (US$
210.52 million) and opening 12 new stores in Brazil this year,
after losing its title as the nation's biggest retailer to rival
CBD three years back.
Unlike Carrefour, CBD has openly expressed interest in buying
Bompreco, although analysts worry that such a large purchase
could push debt to uncomfortable levels. Deep-pocketed Wal-Mart,
too, is seen as an aggressive contender.
The assets are expected to sell for more than BRL1 billion (US$
350.9 million).
Uzan told reporters that Carrefour will have opened 11 of its 12
new supermarkets and hypermarkets by the end of December, with
the final store slated to open in January. The Company will
increase profits in Brazil this year, he added, after trimming
losses at stores by half since January.
TCP: Reports 3Q03 Consolidated Results
--------------------------------------
Telesp Celular Participacoes S.A. (TCP) announced Wednesday
consolidated results for the third quarter 2003. TCP is the
holding company that owns: (i) 100% of Telesp Celular S.A.
("TC"); (ii) 100% of Global Telecom S.A. ("GT"); and (iii) 61.1%
of the voting capital (20.4% of the total capital) of Tele Centro
Oeste Celular Participacoes S.A. ("TCO").
HIGHLIGHTS:
-- According to ANATEL's data, TCP was responsible for a 54.9%
participation in the total number of additions in its areas
during 3Q03.
-- The EBITDA margin reached 41.0%.
-- EBITDA reached R$ 709.0 million, a 17.6% increase compared
with 2Q03.
-- Net Revenue from Services was R$ 1,449.4 million, 3.7% higher
than in 2Q03.
-- A 20.9% growth in cash flow, compared to 2Q03, shows that the
Company has enough generation of operating cash to maintain its
investments. The consolidation of TCO added R$ 164.3 million to
TCP's Operating Cash Flow.
-- TCP reduced its loss by 68.5% compared to 2Q03.
-- TCP achieved 11.675 million lines in service. The client base
of TCP's operators reached growth rates of 7.2% and 21.2%
compared with 2Q03 and 3Q02, respectively.
-- TCP's post-paid base increased 1.4% compared to 2Q03 and 7.7%
compared to 3Q02.
-- Revenues from Data grew by 26% compared to 2Q03.
-- 10.3% reduction in net debt compared to 2Q03.
The full release is available at
http://www.mzconsult.com.br/vivo/TCP3T03_eng.pdf.
=============
E C U A D O R
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FILANBANCO: Group of Creditors Steps Up Pressure to Recover Debt
----------------------------------------------------------------
A group of Filanbanco creditors, which consists of the defunct
Ecuadorian bank's former clients, conducted a heated
demonstration Monday outside the local banking regulator's office
in the regional city of Guayaquil.
Business News Americas reports that the demonstration was
intended to force the regulator to establish a definitive
timetable for the recovery of the US$180 million in funds owed to
these creditors by Filanbanco.
Filanbanco, one of Ecuador's largest banks, was intervened by
authorities during the 1998-1999 financial crisis. Authorities
ran the loss-making operation until the bank's closure on July
17, 2001. Three firms - Thesis Antares, Gomez Giraldo y
Asociados, and Hunton & William American Services - have been
awarded a contract to recover US$392 million in bad loans. But
the contract process was drawn out for several months because of
legal problems and requests for more information by interested
companies.
===========
M E X I C O
===========
EMPRESAS ICA: Reports Third Quarter 2003 Results
------------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V., the largest
engineering, construction, and procurement company in Mexico,
announced Tuesday its unaudited consolidated results for the
third quarter of 2003.
ICA noted the following highlights:
- Total debt at the end of the third quarter was Ps. 5,133
million, 6.8 percent or Ps. 373 million less than the Ps. 5,505
million recorded at the end of the same period of 2002.
- ICA recorded third quarter revenues of Ps. 2,474 million and an
operating loss of Ps. 113 million.
- Divestments were Ps. 362 million during the third quarter,
resulting in aggregate divestments of Ps. 478 million during the
first nine months of 2003.
- Operating expenses fell 19 percent in the third quarter,
compared to the same period of 2002.
- Accounts receivable fell by 18 percent during the third quarter
compared to the third quarter of 2002, primarily as a result of
more efficient estimating and billing processes.
- The current ratio at the end of the quarter was 0.91, compared
to 0.96 registered during the same quarter of last year.
- During the quarter, ICA refinanced a US$ 10.9 million financial
lease over four years. The Company also closed a US$ 40 million
equipment lease for the El Cajon hydroelectric project, as well
as a US$ 10 million loan secured by equipment.
- Standard & Poors' and Moody's awarded credit ratings of BBB-
and Baa3, respectively, for the proposed US$ 682.38 million long
term financing being arranged for the El Cajon project.
- On October 24th, ICA announced that, as part of its
restructuring efforts and refinancing strategy, it is analyzing
different financial restructuring options, including a capital
increase.
- ICA recorded a net loss of majority interest of Ps. 563 million
in the third quarter of 2003, compared to a loss of Ps. 541
million in the same period of 2002.
CONSOLIDATED RESULTS
ICA recorded third quarter revenues of Ps. 2,474 million, an 11
percent increase from third quarter 2002 levels. During the third
quarter, revenues from projects in Mexico represented 74 percent
of total revenues, while revenues in foreign currency,
principally in dollars, accounted for 66 percent of the total.
Third quarter operating costs include extraordinary charges of
Ps. 214 million related to these projects, including a Ps. 110
million reserve for the Puerto Rico Coliseum project, which
included a 100 percent reserve for all accounts receivable and
for estimated completion costs. In addition, there were Ps. 104
million of additional costs related to the start-up of the Andr‚s
power project in the Dominican Republic that ICA Fluor is
developing for AES.
General and administrative expenses in the third quarter of 2003
decreased 19 percent to Ps. 243 million, from Ps. 300 million in
the same period of 2002, primarily as a result of ICA's expense
reduction policy that was initiated in 1999.
The operating loss in the third quarter of 2003 was Ps. 113
million, compared to operating income of Ps. 47 million during
the same quarter of 2002. The loss primarily reflects the
establishment of reserves for the Puerto Rico Coliseum and the
additional costs for the AES Andr‚s project.
EBITDA generated in the third quarter of 2003 was a negative Ps.
26 million. The change from positive EBITDA in the third quarter
of 2002 to negative EBITDA in the third quarter of 2003 primarily
resulted from operating losses in the third quarter.
The integral financing cost in the third quarter of 2003 was Ps.
145 million, compared to Ps. 117 million recorded in the third
quarter of 2002.
Interest income and expense were practically unchanged from the
year ago period. Increases in the integral financing cost reflect
a larger foreign exchange loss. The weighted average interest
rate was 9.9 percent during the third quarter of 2003, compared
to 9.2 percent registered during the same quarter of 2002.
During the third quarter, there was a loss on Other Income of Ps.
99 million, primarily reflecting losses on the sale of
investments and assets, as well as Ps. 5.8 million in employee
severance payments.
The tax provision in the third quarter of 2003 was Ps. 116
million, which was comprised of Ps. 112 million for cancellation
of deferred tax credits and Ps. 4 million for income taxes.
During the third quarter, the arbitration tribunal of the
International Center for the Settlement of Investment Disputes
(ICSID) made a judgment in favor of ICA that authorizes, in
accordance with the arbitration award, a payment in bolivares of
Bs. 2,055.3 million plus interest, in constant Bolivares of
September 1995, for the Caracas-La Guaira tollroad concession.
ICA recognized a loss of Ps. 114 million from its investments in
unconsolidated affiliates in the quarter. This primarily reflects
the recognition of a loss on the investment in the Caracas-La
Guaira tollroad, as the arbitration award did not fully
compensate ICA for its legal expenses or its investment in the
concession. This account also includes the results of ICA's
investments in the Caruachi hydroelectric project in Venezuela;
the Central North Airport Group (through its operating company
SETA); and the environmental services company CIMA.
ICA recorded a net loss of majority interest of Ps. 563 million
in the third quarter of 2003, equivalent to a loss of Ps. 0.91
per share (US$ 0.49 per ADS) based on 621.56 million weighted
average shares outstanding. This compares with a net loss of
majority interest of Ps. 541 million, or Ps. 0.87 per share (US$
0.47 per ADS) recorded in the third quarter of 2002, based on a
weighted average of 621.56 million shares outstanding.
SEGMENT RESULTS
The projects that contributed most to revenues were: the El Caj˘n
hydroelectric project and the Chiapas Bridge (Civil
Construction); the Reynosa Cryogenic plant for Pemex and the La
Laguna thermoelectric plant for Iberdrola (Industrial
Construction); and Rodio's projects in Portugal and Spain (CPC-
Rodio).
Civil Construction revenues rose as a result of the El Caj˘n
hydroelectric project and the Chiapas Bridge project. Segment
operating results also include Ps. 110 million in reserves for
the Puerto Rico Coliseum project.
Industrial Construction revenue increased as a result of the
completion of certain projects, the commencement of work on the
May "A" and May "B" platforms for Pemex; work done on the
Chicontepec oil field project and on the Iberdrola La Laguna
thermoelectric plant. Operating results included additional costs
incurred from the start-up of the AES Andr‚s project in the
Dominican Republic. As a result, there was an operating loss of
Ps. 39 million during the third quarter. These additional costs
and expenses and lower profitability on other projects are
expected to reduce this segment's results for the year.
CPC-Rodio's results, with revenue of Ps. 493 million and an
operating margin of 3.4 percent, reflected the performance of
foundation and subsoil projects for various clients in Spain and
Portugal.
Other Segments accounted for 16 percent of total revenues during
the quarter.
Real Estate and Housing revenues increased as a result of land
sales in Quer‚taro and Cancun. Housing revenue fell to Ps. 152
million, with total sales of 627 units (including 83 lots),
compared to the 609 units sold during the third quarter of 2002.
The operating results reflects the product mix, a smaller number
of houses with higher value, the sale of lots, and the gains
generated by the Real Estate. It is also worth noting that
mortgage financing approvals by Infonavit has been delayed, as a
result of a shortfall in resources in that institution.
Infrastructure Operations results reflect better performance from
the Acapulco Tunnel and the Corredor Sur. Both produced higher
revenues and toll collections, reflecting higher toll rates.
Segment results also include the sale of land in Panama, revenues
from the operation of the parking garages - including the sale of
the Bellas Artes parking garage - and the sale of the concession
for the water treatment plant in Ciudad Obregon.
Alsur registered a decrease in activity due to the sale of the
Veracruz grain terminal. The process of selling the Miguel Alem n
grain silos in Tlalnepantla and the La Libertad warehouse in
Puebla also reduced revenue.
CONSTRUCTION BACKLOG
Compared to the second quarter of 2003, ICA's backlog decreased
Ps. 390 million. The new projects included in the backlog are the
May "A" and May "B" platforms for Pemex and new Rodio projects in
Spain and Portugal.
At the end of the third quarter, projects in Mexico represented
97 percent of the total backlog, and public sector clients
represented 84 percent of the total.
NINE MONTHS CONSOLIDATED RESULTS
During the first nine months of 2003, revenues were Ps. 6,553
million, an 8% increase compared to Ps. 6,064 million registered
during the first nine months of 2002. The operating margin was
(0.6) percent, compared to 2.1 percent in the same period of last
year.
ICA recorded a net loss of majority interest of Ps. 913 million
in the first nine months of 2003, equivalent to a loss of Ps.
1.47 per share (US$ 0.80 per ADS) based on 621.56 million
weighted average shares outstanding. This compares with a net
loss of majority interest of Ps. 1,050 million, or Ps. 1.69 per
share (US$ 0.92 per ADS) recorded in the first nine months of
2002, based on a weighted average of 621.56 million shares
outstanding.
BALANCE SHEET
As of September 30, 2003, ICA had cash and equivalents of Ps.
1,661 million, a reduction of Ps. 975 million compared to Ps.
2,636 million as of September 30, 2002. Of this amount, 71
percent is in ICA's joint venture subsidiaries, ICA Fluor and
Rodio; payment of dividends by these subsidiaries requires the
approval of ICA's joint-venture partners. The remaining 29
percent of cash is largely held in other operating subsidiaries.
Client advances represent 36 percent of total cash.
During the quarter, the SCT agreed to and paid Ps. 132.1 million
in past due accounts, which settles the litigation between the
parties.
Accounts receivable were Ps. 1,880 million at the end of the
third quarter of 2003, 18 percent below the Ps. 2,297 million of
the same period of 2002, as a result of improvements in the
processes of estimating, billing, and collections, as well as the
recovery of past due accounts including some that resulted from
settlements with clients, principally the SCT.
The 17 percent reduction in long term assets resulted from the
divestment of subsidiaries and non-strategic assets, including
the sale of shares, investments in concessions and machinery.
Divestments
During the third quarter of 2003, ICA carried out divestments of
Ps. 362 million, including the sale of 60 percent of its
shareholding in SETA (discussed in more detail below); the waste
water treatment plant in Ciudad Obregon, commercial land in
Quer‚taro; and machinery and equipment.
Debt
Total debt at the end of the third quarter was Ps. 5,133 million,
a reduction of Ps. 373 million, or 6.8 percent, compared to the
same period of 2002. The debt reduction includes the effect of
exchange rate movements and the inclusion of new debt for the El
Cajon hydroelectric project. Of total debt, 43 percent is owed by
ICA operating subsidiaries or is project finance, while the
balance is holding company debt.
As of September 30, 2003, 40 percent of ICA's total debt matures
in less than one year; 24 percent is securities debt; and 54
percent is denominated in foreign currency, principally dollars.
Liquidity and Financial Ratios
The current ratio as of the end of the third quarter of 2003 was
0.91, compared to 0.96 in the same period of 2002. The reduction
was the result, principally, of the reduction in cash, which
reflects a lower proportion of projects with client advances
(reflecting a change in market conditions) as well as the
reclassification of the convertible bond to short term debt.
The interest coverage ratio (EBITDA/interest expense) was (0.26),
reflecting the impact of the charges for the Puerto Rico Coliseum
and the AES Andr‚s project in Dominican Republic. The leverage
ratio (total debt/equity) was 1.64 in the third quarter, compared
to 1.31 in the same period of 2002.
WORKING CAPITAL AND DEBT RESTRUCTURING
ICA had a working capital deficit at the end of the third quarter
of Ps. 606 million, compared to a deficit of Ps. 283 million
registered as of the end of the third quarter of 2002. This
change reflected a 37 percent reduction in cash and cash
equivalents, compared to a 12 percent decrease in current
liabilities.
ICA and its subsidiaries refinanced a US $10.9 million financial
lease with Caterpillar over four years during the third quarter.
Constructora Internacional de Infraestructura, S.A. de C.V.
(CIISA), signed long-term equipment leases of US$ 40 million with
Caterpillar and AMECO for the El Cajon hydroelectric project.
Additionally, ICA contracted a US$10 million, 5-year term loan,
secured by equipment.
LONG TERM FINANCING FOR THE EL CAJON HYDROELECTRIC PROJECT
As of September 30, 2003, CIISA, the construction consortium for
the El Cajon hydroelectric project, had drawn US$ 52 million of
the US$ 90 million bridge loan provided by WestLB; to date, the
amount has increased to US$ 67.3 million. The El Cajon project is
advancing according to schedule. Negotiations continue for the
long-term financing of US$ 682.38 million, which is expected to
be comprised of a bond placement of up to US$ 225 million and a
syndicated loan of US$ 458 million. The proposed financings have
received BBB- and Baa3 ratings from Standard & Poor's and
Moody's, respectively. The ratings are based principally on the
creditworthiness of CFE and its support on the project, as well
as the mitigation of construction and financial risks for the
duration of the construction period. ICA expects the long-term
financing to be completed by the end of November.
RELATED PARTY TRANSACTIONS
During the third quarter of 2003, ICA sold 60 percent of its
stake in Servicios de Transportaci˘n Aeroportuaria, S.A. de C.V.
(SETA), the company that operates the Central North Airports
Group in Mexico, for US$ 14.46 million to a company belonging to
Bernardo Quintana, President of ICA, and members of his family.
This operation enabled ICA to replace the temporary guarantees
that were provided by the Quintana family in March 2003 for the
El Cajon project.
This transaction was reviewed by the Audit Committee and approved
by ICA's Board of Directors, based on a fairness opinion issued
by Banco Santander Mexicano. The sale was also approved by ICA's
partners in SETA (A‚roports de Paris and VINCI) and the SCT, with
notice to the Federal Competition Commission.
SUBSEQUENT EVENT
On October 24th, ICA announced that, as part of its restructuring
efforts and refinancing strategy, it is analyzing different
financial restructuring options, including a capital increase.
This analysis has recently involved preliminary discussions with
certain shareholders, including parties related to Grupo
Financiero Inbursa, S.A. de C.V. ("Inbursa"), regarding various
alternatives, including the possibility of subscribing for a
significant number of newly issued shares at a per share
subscription price not greater than the market price for ICA
shares prior to this announcement.
To date, no agreements, contracts, arrangements or understandings
have been reached with any party regarding a capital increase or
any other possible transaction. There can be no assurance that
any capital increase, or any other transaction between ICA and
any other party, will be agreed to or consummated or as to the
terms and conditions or timing of any such transaction.
Founded in 1947, ICA has completed construction and engineering
projects in 21 countries. ICA's principal business units include
Civil Construction and Industrial Construction. Through its
subsidiaries, ICA also develops housing, manages airports and
operates tunnels, highways, and municipal services under
government concession contracts and/or partial sale of long-term
contract rights. www.ica.com.mx
CONTACT: Dr. Jose Luis Guerrero
(5255) 5272-9991 x2060
jose.guerrero@ica.com.mx
Lic. Paloma Grediaga
(5255) 5272-9991 x3470
paloma.grediaga@ica.com.mx
In the United States:
Zemi Communications
Daniel Wilson
(212) 689-9560
d.b.m.wilson@zemi.com
HYLSAMEX: EBITDA Down 32% in the 3Q03
-------------------------------------
Mexican steelmaker Hylsamex saw its EBITDA decrease by 32% in the
third quarter of the year, to US$44 million, compared to the same
period last year.
The Company, according to a statement sent to the Mexico City's
stock exchange, attributed the decrease to a drop in sales
volumes and higher materials costs.
The Company reported US$254 million in sales during the third
quarter, with exports and domestic sales accounting for 23% and
77% respectively of that figure.
Hylsamex reported a consolidated net loss of US$24 million,
compared to a US$3-million loss in the same quarter last year.
The Company closed the third quarter of 2003 with a net debt of
US$1.05 billion, a US$13-million drop from the second-quarter
this year.
Hylsamex, which is based in Nuevo Leon, is 92% owned by Mexican
conglomerate Alfa.
It was reported recently by the Troubled Company Reporter - Latin
America, that Alfa is mulling its options on how to keep its
ownership of Hylsamex in accordance with Mexican securities
regulations.
Earlier, Juan Carlos Maussan, a Merrill Lynch analyst, said that
Alfa's 92% stake in Hylsamex violates stock exchange rules that
stipulate a 12% minimum free-float requirement.
Alfa's options include selling, delisting or spinning off steel
subsidiary Hylsamex. But according to Maussan, Hylsamex's
independent listing on the stock exchange gives analysts and
investors a clearer understanding of Alfa's total value, making
the option to delist the steel company "unattractive."
A spin-off would likely involve paying a special dividend to
existing shareholders, meaning such a move would not provide Alfa
with resources.
Alfa is expected to decide on the matter in the first half of
next year.
CONTACT: Hylsamex S.A. de C.V.
101 Ave Munich Cuauhtemoc
66452 San Nicolas de los Garza
Nuevo Leon
Mexico
Phone: +52 81 8865 2828
Fax: +52 81 8865 1210
Home Page: http://www.hylsamex.com.mx
Contact:
Engr. Dionisio Garza Medina, Chairman
Alejandro Elizondo Barragan, Chief Executive Engr
MAXCOM TELECOMUNICACIONES: Announces 3Q03 Results
-------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based
telecommunications provider (CLEC) using a "smart- build"
approach to focus on small- and mid-sized businesses and
residential customers in the Mexican territory, announced on
Wednesday its unaudited results for the third quarter of 2003.
LINES:
The number of lines in service at the end of 3Q03 increased 25%
to 137,222 lines, from 109,903 lines at the end of 3Q02, and 2%
when compared to 134,659 lines in service at the end of 2Q03. Out
of the total outstanding lines at the end of 3Q03, 6,920 lines,
or 5.0%, were from Wholesale customers, which compares to 5,190
lines, or 4.7%, at the end of 3Q02, and 6,020 lines, or 4.5%, at
the end of 2Q03.
During 3Q03, line construction was lower by 90% at 3,513 lines,
from 34,129 constructed lines in the same period of last year;
and higher by 28% when compared to 2,749 constructed lines during
2Q03. Inventory of constructed lines for sale at the end of the
quarter was 47,406 lines.
During 3Q03, 11,650 new lines were installed, 51% below the
23,567 lines installed during 3Q02. When compared to 2Q03, the
number of installations decreased 16% from 13,930 lines.
During 3Q03, the monthly churn rate was 2.6%, which compares
unfavorably to 2.1% monthly average churn in 3Q02. When compared
to 2Q03, churn rate decreased from 2.7%. Voluntary churn in 3Q03
resulted in the disconnection of 3,112 lines, a rate of 0.8%,
slightly higher than 0.7% registered in 2Q03 with 2,658
disconnected lines. Involuntary churn resulted in the
disconnection of 6,875 lines, a rate of 1.8%, which compares
favorably to 7,525 disconnected lines, or 2.0% during 2Q03.
During 3Q03, net additions for Wholesale customers were 900
lines, which compares to 1,260 net additions during 3Q02, and 930
net additions during 2Q03.
CUSTOMERS:
As of the second quarter of 2003, we reported incorrect numbers
for customers (See "Maxcom Telecomunicaciones 2nd Quarter 2003
Results", released on July 30, 2003). The corrected numbers as
well as the previously reported numbers are shown in the
following table. All numbers, references and comparisons in this
report and future reports will be based on the corrected numbers
for the second quarter of 2003:
CUSTOMERS 2Q03 As Reported Corrected
Business 3,774 3,738
Residential 91,636 94,569
TOTAL 95,410 98,307
Mexico 44,730 46,148
Puebla 48,137 49,570
Queretaro 2,543 2,589
Total customers grew 35% to 100,432 at the end of 3Q03, from
74,127 at the end of 3Q02, and 2% when compared to 98,307
customers as of the end of 2Q03.
The growth in number of customers by region was distributed as
follows: (i) in Mexico City customers increased by 31% from 3Q02
and 1% when compared to 2Q03; (ii) in Puebla customers grew 33%
from 3Q02 and 4% when compared to 2Q03; and (iii) in Queretaro,
the number of customers increased 1% from 2Q03; we did not have
operations in Queretaro in 3Q02.
The change in the number of customers by category was the
following: (i) business customers decreased by 6% from 3Q02 and
were flat when compared to 2Q03; and (ii) residential customers
increased by 38% from 3Q02 and by 2% from 2Q03.
Revenues
Revenues for 3Q03 increased 34% to Ps$189.8 million, from
Ps$141.9 million reported in 3Q02. Voice revenues for 3Q03
increased 24% to Ps$160.8 million, from Ps$129.2 million during
3Q02, driven by a 24% increase in voice lines. Data revenues for
3Q03 were Ps$5.8 million and contributed 3% of total revenues;
during 3Q02 data revenues were Ps$3.1 million. Wholesale revenues
for 3Q03 were Ps$23.3 million, a 144% increase from Ps$9.6
million in 3Q02.
Revenues for 3Q03 increased 4% to Ps$189.8 million, from Ps$182.5
million reported in 2Q03. Voice revenues for 3Q03 slightly
decreased to Ps$160.8 million, from Ps$161.3 million during 2Q03.
Data revenues in 3Q03 increased 13% to Ps$5.8 million, from
Ps$5.1 million during 2Q03. During 3Q03, revenues from Wholesale
customers increased 45% to Ps$23.3 million, from Ps$16.1 million
in 2Q03.
COST OF NETWORK OPERATION:
Cost of Network Operation in 3Q03 was Ps$64.4 million, a 20%
increase when compared to Ps$53.7 million in 3Q02. Over the same
period, outbound traffic grew 71%, showing a sensitive
improvement on a cost-per-minute basis. The Ps$10.7 million
increase in Cost of Network Operation was generated by: (i)
Ps$9.4 million, or 26%, increase in network operating services,
mainly driven by higher calling party pays charges and long
distance reselling costs as traffic increased and a higher number
of lines were in service; and (ii) Ps$4.9 million, or 48%
increase in technical expenses as a consequence of Ps$3.5 million
higher maintenance costs; partially offset by: (i) a Ps$3.2
million, or 54%, decrease in installation expenses; and (ii) a
decrease in the cost of disconnection of lines in the amount of
Ps$0.4 million.
Cost of Network Operation declined 2% quarter-over-quarter when
compared to Ps$65.7 million in 2Q03. While network operating
services decreased Ps$1.1 million, or 2%, and installation
expenses and cost of disconnected lines decreased Ps$1.2 million,
or 27%, technical expenses increased Ps$1.0 million, or 7%. On
cost-per-minute basis, there was also an improvement when
compared to the previous quarter, as outbound traffic grew 9%
while Cost of Network Operation declined 2%.
SG&A:
SG&A expenses were Ps$90.5 million in 3Q03, which compares
favorably to Ps$105.3 million in 3Q02. The 14% decrease was
mainly driven by: (i) lower salaries, wages and benefits of
Ps$10.8 million; (ii) lower advertising expenses of Ps$5.5
million; (iii) lower leasing and maintenance costs of Ps$3.7
million; (iv) lower external sales commissions of Ps$2.2 million;
and, (v) lower consulting fees of Ps$ 1.6 million. Lower expenses
were partially offset by: (i) higher bad debt provisioning of
Ps$8.0 million; and (ii) higher general, administrative expenses
and insurance costs of Ps$1.1 million.
SG&A expenses in 3Q03 decreased 1% from Ps$91.8 million in 2Q03.
This variation was mainly driven by: (i) lower consulting fees of
Ps$5.3 million; (ii) lower bad debt provisioning of Ps$2.0
million; (iii) lower salaries, wages and benefits of Ps$1.1
million; and (iv) lower external sales commissions of Ps$0.6
million. Lower expenses were partially offset by: (i) higher
leasing and maintenance costs of Ps$6.1 million; and (ii) higher
general, administrative expenses and insurance costs of Ps$1.4
million.
EBITDA:
EBITDA for 3Q03 was positive Ps$35.0 million compared to negative
Ps$17.0 million reported in 3Q02, and positive Ps$25.0 million
registered in 2Q03. EBITDA margin improved from a negative 12% in
3Q02 to positive 14% in 2Q03, and to positive 18% in 3Q03.
This is the second consecutive quarter that Maxcom reported
positive EBITDA. Besides improving its EBITDA margin by 4
percentage points, in monetary terms, EBITDA grew 40% on a
quarter over quarter basis. Cumulative EBITDA for the last two
quarters was Ps$60.0 million, and Ps$55.6 million year-to-date.
CAPITAL EXPENDITURES:
Capital Expenditures for 3Q03 were Ps$26.4 million, a 91%
decrease when compared to Ps$298.0 million in 3Q02, and a 13%
decrease when compared to Ps$30.1 million in 2Q03.
CASH POSITION:
Maxcom's Cash position at the end of 3Q03 was Ps$37.6 million in
Cash and Cash Equivalents, compared to Ps$199.7 million at the
end of 3Q02. Cash and Cash Equivalents at the end of 2Q03 were
Ps$59.8 million.
Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering Local, Long
Distance and Internet & Data services in greater metropolitan
Mexico City, Puebla and Queretaro.
CONTACT: Maxcom Telecomunicaciones
Mexico City, Mexico
Jose-Antonio Solbes
Phone: (52 55) 5147 1125
Phone: investor.relations@maxcom.com
Citigate Financial Intelligence
Hoboken, NJ
Lucia Domville
Phone: (201) 499-3548
Phone: lucia.domville@citigatefi.com
MEXICANA DE AVIACION: Reaches $400M Deal With Airbus
----------------------------------------------------
Commercial aircraft manufacturer Airbus SAS and Mexican carrier
Mexicana de Aviacion SA struck an agreement under which Mexicana
will order 10 planes from Airbus worth US$400 million, reports
Bloomberg.
Under the contract, Mexicana will lease 10 Airbus A318s from GE
Capital Aviation Services, which is buying the aircraft, Mexicana
said in an e-mailed statement. The jet --a medium-range plane
that seats 104 passengers -- has a list price of US$40 million.
Mexicana struck the deal as part of its strategy to replace old
jets and fire workers to return to profit after posting two years
of losses.
Mexicana said it will use the new planes to retire 10 Fokker 100s
that are now used on domestic routes, creating an Airbus fleet.
A newer, uniform fleet would help reduce Mexicana's costs for
fuel, parts and training, the Company has said.
NII HOLDINGS: Announces Strong Performance for the 3Q03
-------------------------------------------------------
NII Holdings, Inc. announced Wednesday its consolidated financial
results for the third quarter of 2003, including consolidated net
income of $38 million, or $1.81 per basic share, compared to a
net loss of $36 million in the third quarter of 2002.
Consolidated operating revenues were $246 million, a 31% increase
over the same period last year. The Company also reported
consolidated operating income before depreciation and
amortization of $66 million during the third quarter, a 66%
increase from the third quarter of 2002, and consolidated
operating income of $43 million, a 119% increase from the third
quarter of 2002. As of September 30, 2003, NII Holdings reported
approximately 1.39 million subscribers and consolidated cash
balances of $410 million.
"We are continuing to execute our profitable growth strategy
resulting in solid results for the quarter," said Steve Shindler,
NII Holdings' Chairman and CEO. "We successfully launched service
in Baja California, which includes cross-border Direct Connectr
capability between the U.S. and select regions in Mexico. We
continued to add high quality subscribers to our network across
our markets and posted operating income before depreciation and
amortization of $66 million."
"As we look forward to the balance of 2003, we are maintaining
our full year guidance at $240 million in operating income before
depreciation and amortization due to the expected impact related
to the recent depreciation of the Mexican peso, the increased
emphasis we're placing on growing our base of high quality post-
paid subscribers, and the increased investment we plan to make in
the fourth quarter in proven customer retention programs,
including beginning to populate our subscriber base with higher
capacity 6:1 vocoder handsets. We believe these investments will
strengthen our customer base and lead to further reductions in
our churn rate as we move into 2004," Shindler added.
"Additionally, given our recent accelerated profitable subscriber
growth, there is a strong possibility that we will exceed our
guidance of 180,000 net subscriber additions for the year."
NII Holdings' average monthly revenue per subscriber (ARPU) was
approximately $55 for the third quarter compared to $48 in the
same period last year. The Company also announced its seventh
consecutive quarter of churn reduction, reporting average
consolidated churn of 2.4% in the third quarter down from 2.5% in
the second quarter of 2003.
Nextel Mexico, NII's largest subsidiary, reported $56 million in
third quarter 2003 operating income before depreciation and
amortization and $37 million of operating income. These amounts
represent significant improvements over third quarter 2002
operating income before depreciation and amortization of $33
million and operating income of $19 million. In addition, Nextel
Mexico reported about 35,200 net subscriber additions during the
third quarter of 2003, increasing its total subscriber base to
about 615,900 handsets as of September 30, 2003. Each of NII's
operating companies in Brazil, Argentina and Peru also reported
positive operating income before depreciation and amortization
and were profitable during the third quarter of 2003.
During the third quarter of 2003, NII raised about $288 million
in net proceeds through the sale of 2 million common shares and
$180 million principal amount of 3.5% convertible notes due 2033.
The Company used the proceeds to repay $203 million principal
amount of its long-term credit facilities plus $6 million of
accrued interest at a cost of $186 million.
The Company closed on several communication tower sale-leasebacks
in Mexico and Brazil in the third quarter of 2003 under its
previously announced agreement with American Tower Corporation,
raising $22 million in local currency-based proceeds. These
transactions are classified as long-term debt on the Company's
balance sheet. The Company's total long-term debt as of September
30, 2003 was $514 million, including $87 million in tower
financing obligations.
"During the quarter we successfully completed concurrent
offerings of convertible debt and equity," said Byron Siliezar,
NII's Vice President and Chief Financial Officer. "As a result of
this transaction, we reduced our net debt from $201 million at
the beginning of the year to $104 million, reduced our cost of
borrowing and reduced our exposure to foreign exchange risk by
repaying, at a discount, a U.S. dollar debt obligation held by
our Brazilian operating company. We also strengthened our
liquidity position to $410 million in available cash balances.
Operationally, the Company continued to deliver solid performance
in its markets, including strong growth in revenues as well as
operating income before depreciation and amortization. All of our
operating companies were profitable for the first nine months of
2003."
Consolidated capital expenditures, including capitalized
interest, were $39 million during the third quarter of 2003.
In addition to the results prepared in accordance with accounting
principles generally accepted in the United States (GAAP)
provided throughout this press release, NII has presented
consolidated operating income before depreciation and
amortization, ARPU and cost per gross add (CPGA), which are non-
GAAP financial measures and should be considered in addition to,
but not as substitutes for, the information prepared in
accordance with GAAP. Reconciliations from GAAP results to these
non-GAAP financial measures are provided in the notes to the
attached financial table. To view these and other reconciliations
of non-GAAP financial measures that the Company uses and
information about how to access the conference call discussing
NII's third quarter results, visit the investor relations link at
http://www.nii.com.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va.,
is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connectr, a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD. Visit the
Company's website at http://www.nii.com.
To see financial statements:
http://bankrupt.com/misc/NII_HOLDINGS.htm
CONTACT: Investor Relations: Tim Perrott
(703) 390-5113
tim.perrott@nii.com
Media Relations: Claudia E. Restrepo
(786) 251-7020
claudia.restrepo@nii.com
PEMEX: S&P Releases Credit FAQ
------------------------------
In a report published Wednesday, Standard & Poor's Ratings
Services addresses some of the frequently asked questions about
Petroleos Mexicanos (PEMEX), including Standard & Poor's
analytical approach toward PEMEX and its outlook on the company.
PEMEX (LC: A-/Stable/--; FC: BBB-/Stable/--) and its four
subsidiary entities, PEMEX Exploration and Production, Pemex
Refining, Pemex Gas and Basic Petrochemicals, and Pemex
Petrochemicals, are decentralized public entities of the Mexican
Government that together constitute Mexico's national oil
company. Since 1938, PEMEX Mexican federal laws and regulations
have entrusted PEMEX with the central planning of Mexico's
petroleum industry. PEMEX is the largest company in Mexico and
one the largest oil companies in the world.
"In Standard & Poor's opinion, PEMEX has the capacity to serve
its debt," said Standard & Poor's credit analyst Jose Coballasi.
"Despite the strong volatility in oil prices, the company is
expected to maintain, before taxes, financial indicators that are
adequate for the rating."
Although some modifications to the company's tax regime are
possible, Standard & Poor's does not expect a significant change
in PEMEX's relationship with the Mexican's government or any
material reduction in the government's heavy involvement in the
sector and in the company.
"Credit FAQ: Petroleos Mexicanos" can be found on RatingsDirect,
Standard & Poor's Web-based credit analysis system, at
www.ratingsdirect.com. Members of the media may obtain copies of
the full report by contacting Gregg Stein at (1) 212-438-1730 or
by e-mail at gregg_stein@standardandpoors.com.
ANALYST: Jose Coballasi, Mexico City (52) 55-5279-2014
SATMEX: Fails to Obtain EximBank Loan
-------------------------------------
Satellite communications provider Satelites Mexicanos (Satmex) is
likely to launch the satellite Satmex 6 early 2004, instead of by
the end of this year as planned, local news source El Universal
suggests.
The delay is expected after the Company failed to seal a
financing deal with the U.S. bank EximBank by the September 30
deadline.
Satmex has been trying to gain access to the EximBank loan to pay
the US$50-million insurance of the device. But EximBank has said
that it will not liberate the funds until Satmex reaches an
agreement with creditors.
Satmex is negotiating with bondholders to extend the term on
US$320 million in high-yield bonds due November 2004. A
successful restructuring of the 2004 bonds is one of the
conditions for Satmex to access US$230 million in loans pledged
by the EximBank and French export financer Cofase to build and
insure Satmex 6 and pay down debts.
Satmex is 75% controlled by the Mexican consortium of Principia
and Loral. The remaining 25% is controlled by the government.
=================
V E N E Z U E L A
=================
SIDOR: Halts Production Amid Industrial Relations Dispute
---------------------------------------------------------
The current industrial relations conflict between Venezuelan
steelmaker Sidor and its workers prompted the Company to shut
down the production lines at its billet-making and cold-rolling
plants on October 25, reported Business News Americas.
The shutdown occurred in order to protect equipment from possible
damages the ongoing conflict may cause.
Unionized workers at the plant carried on a so-called "Operation
Morrocoy" or go-slow at the plant after a conflict over bonus
payments heated up.
"Operation Morrocoy" is a pressure tactic used to disrupt
operations, which the Company says is in breach of a court
directive issued October 14 by a Bolivar state labor tribunal.
The ruling obliges workers to refrain from actions that interrupt
the normal Company operations.
The rest of the cold-rolling and coated product lines, where most
of the added value products are made, are working at 50% capacity
due to the conflict.
Argentina's Siderar, Mexico's Hylsamex, Tubos de Acero de Mexico
SA, Brazil's Usinas Siderurgica de Minas Gerais and Venezuela's
Siderurgica Venezolana Sivensa SA own 60% of the Company while
the Venezuelan government owns the rest.
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
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Copyright 2003. All rights reserved. ISSN 1529-2746.
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