/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031107.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, November 7, 2003, Vol. 4, Issue 221 Headlines A R G E N T I N A ACINDAR: Likely To Sign Debt Deal With Creditors This Month AMERICA 2: Court Approves Debt-Refinancing Offer BANCO DE GALICIA: CNV To Launch Preliminary Investigation CASA BLANCA: Court Sets Bankruptcy Process Schedule CEMEFE: Court Orders Bankruptcy COLORTEX: Court Approves "Concurso Preventivo" Motion CTG: Announces $22.3M Debenture Swap DE LA TORRE: Receiver Ends Verification Process DY TRANS: Receiver Oversees Bankruptcy Process GEMAR PLASTIC: Receiver Checks Creditors' Claims HAVANNA: Court Approves Sale of Great Brands to DyG JOYITA: Commences Reorganization Proceedings KARATEX: Credit Check in Reorganization Ends December 15 KARAVELL: Court Approves "Concurso Preventivo" Motion LA PRIMERA: Informative Assembly Scheduled for Today MAKRO: Enters Bankruptcy on Court Orders MARINA GRANDE: Bankruptcy Process Goes On as Credit Check Ends MIAMI HOUSE: To Undergo Reorganization SERVICIOS NORTE: Credit Verification in Bankruptcy Process Closes SICOMPRA: Credit Verifications in Bankruptcy Process Closes Today TELEFONICA DE ARGENTINA: Parent To Invest ARS2 Bln In Argentina VINTAGE PETROLEUM: Announces 2004 Prelim Cap Budget, Targets VINTAGE PETROLEUM: Third Quarter 2003 Operations Update B R A Z I L CERJ: Chilean Parent Takes Steps to Cut Power Theft EMBRATEL: Streamlines its Marketing Organization KLABIN: S&P Ups Ratings, Removes from CreditWatch VESPER: QUALCOMM Announces Fourth Quarter, Fiscal 2003 Results * Remarks by IMF First Deputy Managing Director Krueger in Brazil C H I L E AES GENER: To Decide Amount of Capital Increase on Nov. 21 INDUSTRIAS TEXTILES: Chilean Court Declares Bankruptcy M E X I C O ALESTRA: Announces Satisfaction of its Minimum Tender Condition P E R U SIDERPERU: Reports Results For First Nine-Months, 3Q of 2003 T R I N I D A D & T O B A G O BWIA: To Give Full Severance Payments To Ex-Employees Next Week V E N E Z U E L A SIDOR: Talks With SUTISS Now Underway - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Likely To Sign Debt Deal With Creditors This Month ----------------------------------------------------------- Argentine long steelmaker Acindar is about to reach a debt accord after two-thirds of its creditors agreed to the Company's debt proposal, Business News Americas reports, citing Carlo Panunzi, president of Brazilian long steelmaker Belgo-Mineira. Belgo-Mineira is a principal shareholder in Acindar, a Buenos Aires-based producer of some 1.2Mt/y of long steel products. "With two-thirds in the so-called 'pre-package agreement', the other third is obliged to join. We are just waiting for the signing of the papers, which we expect will happen this month," said Panunzi. Acindar officials earlier revealed that the agreement foresees repaying the outstanding debt of US$220 million over nine years with 18 semi-annual installments at a rate of 4% until 2004, then Libor plus 2% for 2005, Libor plus 2.5% for 2006 and then Libor plus 3% from 2007. According to the report, the debt restructuring is part of the process in which Belgo aims to increase its stake in the Argentine company. Belgo is injecting up to US$30 million of new money into Acindar, and capitalizing US$25 million of debt. The capital injection is conditional on a public offer to other Acindar shareholders, who will have the opportunity to inject new funds into the Company. Through the capital injection and conversion of debt into equity, Belgo could see its stake in the Company increase to up to 60% of Acindar's total capital from the current 20.5% in currently holds, said Panunzi, who added that the deadline for the acquisition is May 2005. CONTACT: Acindar Industria Argentina de Aceros SA 2739 Estanislao Zeballos Beccar Buenos Aires Argentina B1643AGY Phone: +54 11 4719 8500 Fax: +54 11 4719 8501 Home Page: http://www.acindar.ar.com Contact: Arturo Tomas Acevedo, Chairman AMERICA 2: Court Approves Debt-Refinancing Offer ------------------------------------------------ An Argentine court has approved the debt-refinancing offer of local TV channel America 2, paving the way to an end to the Company's formal restructuring proceeding. The channel initiated a formal restructuring proceeding two years ago, with a debt of US$61.87 million. At that time, the Company was losing over US$1 million a month. A few months later, Argentina's peso lost around 70% of its value and the debt was pesified (converted into US dollars at the rate of US$ 1 = Ps. 1). Unlike Canal 9, which has most of its debt obtained abroad, America 2's debt belongs to local content producers, such as Cuatro Cabezas, PPT and Ideas del Sur. After 18 months of talks with creditors, the channel obtained a 40% write-off in the amount of the debt and between 4 and 5 years to repay it. As a result of the deal, the broadcaster will pay around ARS37 million. The end of its debt restructuring proceeding will help America 2 attract a new investor that will inject it with fresh funds. BANCO DE GALICIA: CNV To Launch Preliminary Investigation --------------------------------------------------------- Argentina's securities regulator, CNV, announced Tuesday it will hold a preliminary investigation into the actions of directors and trustees at Banco de Galicia y Buenos Aires S.A., one of the country's largest private banks. The filing, which was posted on Argentina's stock exchange, said the CNV will carry out the probe because of the bank's late reporting of a legal decision affecting the Company. The details of the case weren't given. After a preliminary investigation, the CNV will decide whether to make formal charges or drop the case. Analysts said the probe was unlikely to be too problematic for the company. Galicia officials said they hadn't been notified of the probe and therefore had no comment. It is the second probe the CNV has announced into Galicia in the past two months. On September 1, the CNV announced an investigation into the bank for repeatedly late reporting of developments at its suspended sister unit Banco Galicia Uruguay. Banco de Galicia y Buenos Aires and Banco Galicia Uruguay are the two main units in financial group Grupo Financiero Galicia, the largest company on Buenos Aires' large-cap Merval Index. The probe comes as the bank finalizes a restructuring deal for its US$1.5 billion in debt. Grupo Financiero Galicia's shares were up 18% in October on investor hopes of a successful restructuring. 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 CASA BLANCA: Court Sets Bankruptcy Process Schedule --------------------------------------------------- Buenos Aires Court No. 20 sets the schedule for the bankruptcy process of Casa Blanca de Buenos Aires S.R.L., reports Infobae. The credit verification process will end on February 3, 2004, the report adds. The Company's receiver, Mr. Bernardo Mazer, will prepare the individual reports after the verifications are completed. These reports are to be submitted to the court on March 16 next year. The general report, which is prepared after the individual reports are processed at court, must be submitted on April 27 next year. The Company's assets will then be liquidated to reimburse creditors. Payments will be based on the results of the verification process. CONTACT: Bernardo Mazer Ave Corrientes 4434 Buenos Aires CEMEFE: Court Orders Bankruptcy ------------------------------- Buenos Aires Court No. 23 orders the bankruptcy of local company Ce.Me.Fe. S.A., relates Argentine news source Infobae. The city's Clerk No. 46 aids the court on the case, which will end with the liquidation of the Company's assets. To determine the nature and amount of the Company's debts, the receiver, Mr. Isabelo de Francisco, will authenticate claims until February 9 next year. The receiver will forward the results of the verification process to the court through the individual reports. After these are processed at court, the receiver will consolidate the results into a single general report. Infobae, however, did not indicate whether the court has set the deadlines for these reports. CONTACT: Isabelo De Francisco Pasteur 194 Buenos Aires COLORTEX: Court Approves "Concurso Preventivo" Motion ----------------------------------------------------- Court No. 4 of the Civil and Commercial Tribunal of the Argentine province of La Rioja approved a motion for "Concurso Preventivo" filed by local company Colortex S.A., relates local news source Infobae. This opens the Company's reorganization process. The court assigned Estudio Ortiz, Ruiz as the Company's receiver, the report adds. Creditors must have their claims authenticated by December 15 this year. This part of the reorganization determines the nature and amount of the Company's debts. The receiver will submit the individual reports to the court on March 29 next year. These reports are prepared upon completion of the credit verification process. The receiver will also prepare the general report after the individual reports are processed at court. This report must be filed on May 21 next year. The informative assembly will then be held on July 8 next year. CONTACT: Estudio Ortiz, Ruiz Velez Sarsfield 100 La Rioja CTG: Announces $22.3M Debenture Swap ------------------------------------ Argentine thermo generator Guemes (CTG) informed the Buenos Aires stock market that it has exchanged US$22.3 million debentures due in 2010 for series B papers due in 2013 at a fixed rate of 2% interest. According to a report released by Business News Americas, the move follows an approval from a commercial court in Salta province. The US$22.3 million debentures, at variable interest, were part of a US$54-million issue under Chapter 11 bankruptcy terms in 2001. Guemes claimed that since the bonds were issued before the devaluation of the Argentine peso in early 2002, it should be able to pay all its creditors according to the principle of "pari passu," which means paying interest to existing bondholders at the same rate as new bondholders. In March, the commercial court granted Guemes a preliminary injunction authorizing the Company to pay interest on the debentures at 2% a year. According to the original terms of the bond issue, the Company would have had to pay 2.5% interest on March 26 this year, which would increase by about 1% every year. CTG, which operates a 260MW thermoelectric plant in Salta province in northwest Argentina, is 60% owned by local company Powerco, 30% state-owned, and 10% owned by its employees. CONTACT: Central Termica Guemes S.A. Avenida Leandro N Alam 822 Piso 12 Ciudad Autonoma de Buenos Aires C1001AAQ ARGENTINA Tel. +54 4311-6064/6065/6066 DE LA TORRE: Receiver Ends Verification Process ----------------------------------------------- Mr. Ruben Eduardo Calcagno, receiver for bankrupt Argentine company De La Torre S.A., closes the credit verification process today. As ordered by the city's Court No. 22, which handles the Company's case, the receiver will prepare the individual reports, which are due for filing on December 22 this year. The receiver is also required to prepare a general report after the individual reports are processed at court. The Troubled Company Reporter - Latin America earlier revealed that this report is to be submitted to the court on March 8, 2004. CONTACT: Ruben Eduardo Calcagno Rodriguez Pena 431 Buenos Aires DY TRANS: Receiver Oversees Bankruptcy Process ---------------------------------------------- Mr. Mario Galante, an accountant from Buenos Aires, takes charge as receiver for the bankruptcy of local company Dy Trans S.A., according to a report by Infobae. The receiver will verify creditors' claims until March 31 next year. The city's Court No. 18 recently ordered that the Company is "Quiebra". In the meantime, Infobae did not mention whether the court, which is assisted by Clerk No. 35 on the case, has set the deadlines for the individual and general reports. CONTACT: Dy Trans S.R.L. Bladomero Fernandez Moreno 3010 Buenos Aires Mario Galante Cramer 2175 Buenos Aires GEMAR PLASTIC: Receiver Checks Creditors' Claims ------------------------------------------------ Buenos Aires Court No. 5 assigns Ms. Flora Marcela Pazos as receiver for the reorganization of local company Gemar Plastic S.A., according to a report by Argentine news portal Infobae. The receiver will be verifying creditors' claims until December 2 this year. Working with Clerk No. 9, the court ordered the receiver to submit the individual reports on February 19 next year, Infobae added. The receiver will also prepare the general reports and pass them to the court on April 5 next year. The informative assembly will be held on September 13 next year. CONTACT: Gemar Plastic S.A. Avenida Corrientes 4173 Buenos Aires Flora Marcela Pazos Montevideo 527 Buenos Aires HAVANNA: Court Approves Sale of Great Brands to DyG --------------------------------------------------- An Argentine court has approved the sale of Great Brands - controller of local confectionery producer and retailer Havanna - to private equity fund Desarrollo y Gestion (DyG). According to the agreement subscribed between The Exxel Group, who owns 70% of Havanna, and DyG, the latter will pay US$5.2 million plus the positive difference between the cash balance at the moment of the transfer and ARS13.5 million, with a maximum limit of ARS3 million. In addition, DyG will assume US$32.4 million in debt. JOYITA: Commences Reorganization Proceedings -------------------------------------------- Joyita S.A., which is domiciled in Buenos Aires, will undergo reorganization after the city's Court No. 12 approved its "Concurso Preventivo" motion. Argentine news source Infobae relates that Clerk No. 23 aids the court on the case. Creditors must present their proofs of claim to the receiver for verification before the December 15 deadline expires. The Company's receiver, Mr. Mario Degese, is an accountant from Buenos Aires. The receiver is also required to prepare the individual and general reports, which are to be submitted to the court on March 1, 2004 and April 12, 2004, respectively. These reports contain the results of the verification process and the receiver's opinions on the factors to that prompted to Company to seek reorganization. The informative assembly will be held on September 7 next year. CONTACT: Joyita S.A. Tucuman 1455 Buenos Aires Mario Degese Bouchard 468 Buenos Aires KARATEX: Credit Check in Reorganization Ends December 15 -------------------------------------------------------- Creditors of La Rioja-based company Karatex S.A. must present their claims to the receiver, Estudio Ortiz Ruiz, for verification before December 15 this year. The Company is currently undergoing reorganization after the court approved its motion for "Concurso Preventivo". The individual reports, which are prepared after the verification process is completed, must be submitted to the court on March 29 next year. The receiver will also prepare the general report, which is due for filing on May 21 next year. Court No. 4 of the Civil and Commercial Tribunal of La Rioja set the informative assembly to be held on July 8 next year. The meeting is one of the last parts of the reorganization process. CONTACT: Estudio Ortiz, Ruiz Velez Sarsfield 100 Buenos Aires KARAVELL: Court Approves "Concurso Preventivo" Motion ----------------------------------------------------- Court No. 4 of the Civil and Commercial Tribunal of the Argentine province of La Rioja approved a motion for "Concurso Preventivo" filed by local company Karavell S.A., relates local news source Infobae. The court assigned Estudio Ortiz Ruiz as the Company's receiver, says the report. Creditors must have their claims authenticated by December 15 this year. This part of the reorganization determines the nature and amount of the Company's debts. The receiver will submit the individual reports to the court on March 29 next year. These reports are prepared after upon completion of the credit verification process. The receiver will also prepare the general report after the individual reports are processed at court. This report must be filed on May 21 next year. The informative assembly will then be held on July 8 next year. CONTACT: Estudio Ortiz, Ruiz Velez Sarsfield 100 La Rioja LA PRIMERA: Informative Assembly Scheduled for Today ---------------------------------------------------- The informative assembly for the bankruptcy process of Argentine company La Primera de Grand Bourg S.A.T.C.I. is scheduled for today, the Troubled Company Reporter - Latin America said earlier, without specifying the venue and the time of the meeting. Court No. 11 of the Civil and Commercial Tribunal of the Argentine province of San Martin holds jurisdiction over the Company's case. The informative assembly is one of the last processes in reorganization proceedings. MAKRO: Enters Bankruptcy on Court Orders ---------------------------------------- Court No. 18 of Buenos Aires declares local company Makro S.R.L. "Quiebra", reports Argentine news portal Infobae. The Company will undergo the bankruptcy process with Mr. Xilef Irureta, accountant from Buenos Aires, as receiver. Creditors must have their credit claims validated by the receiver to qualify for any payments the Company would make at the end of the bankruptcy process. The deadline for verifications ends on April 2 next year, after which the receiver will prepare the individual reports. The general report, on the other hand, is to be prepared after the individual reports are processed at court. The source, however, did not mention whether the deadlines for the filing of these reports have been set. CONTACT: Makro S.R.L. Tte Gral Benjamin Matienzo 1568 Buenos Aires Xilef Irureta Parana 145 Buenos Aires MARINA GRANDE: Bankruptcy Process Goes On as Credit Check Ends -------------------------------------------------------------- The bankruptcy of Buenos Aires company Marina Grande S.R.L. proceeds with the receiver preparing the individual reports as the credit verification process is due to end today. The Troubled Company Reporter - Latin America earlier revealed that the individual reports are to be submitted to the court on December 22 this year. The Company's receiver, Ms. Alejandra Ethel Giacomini, will prepare the general report after the individual reports are processed at court. This report is due for filing on March 8 next year. The Company's assets will then be liquidated to reimburse its creditors. CONTACT: Alejandra Ethel Giacomini Carabobo 250 Buenos Aires MIAMI HOUSE: To Undergo Reorganization -------------------------------------- Buenos Aires-based Miami House S.R.L. will undergo reorganization, local news portal Infobae reports. The city's Court No. 5 approved the Company's motion for "Concurso Preventivo". Working with Clerk No. 9, the court assigned local accountant Maria del Carmen Amandule as receiver for the process. The credit verification period ends on November 14 this year, as set by the court. Verifications are done to ascertain the nature and amount of the Company's debts. The individual reports must be submitted to the court on February 3 next year, followed by the general report on March 16. The informative assembly will then be held on September 7, 2004, the report adds. CONTACT: Maria del Carmen amandule 24 de Noveimbre 1226 Buenos Aires SERVICIOS NORTE: Credit Verification in Bankruptcy Process Closes ----------------------------------------------------------------- Creditors of Servicios Norte S.R.L. must present their proofs of claim to the Company's receiver as the deadline for verifications expires today. Creditors who fail to file their claims today will be disqualified from whatever payments, which will be made to creditors after the Company's assets are liquidated. The receiver, Ms. Haydee Kravetz, will prepare the individual reports on the results of the verification process. After these are processed at court, the receiver will summarize the results into a general report. Local sources, however, did not reveal whether the court has set the deadlines for these reports. CONTACT: Servicios Norte S.R.L. Avenida de Mayo 1316 Buenos Aires Haydee Kravetz Tucuman 1484 Buenos Aires SICOMPRA: Credit Verifications in Bankruptcy Process Closes Today ----------------------------------------------------------------- The credit verification process for the bankruptcy of Argentine company Sicompra S.A. ends today, November 7, 2003. An earlier report by the Troubled Company Reporter - Latin America revealed that the Company's receiver is Ms. Elsa Tobarcias. The receiver will start preparing the individual reports on the results of the verifications. These reports are to be submitted to the court on December 22 this year, followed by the general report on March 8, 2004. The general report is a consolidation of the data in the individual reports after these are processed at the 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 TELEFONICA DE ARGENTINA: Parent To Invest ARS2 Bln In Argentina --------------------------------------------------------------- Telefonica S.A. announced Wednesday it will invest ARS2 billion in Argentina over the next four years, relates Dow Jones. The announcement follows a meeting in Government House between Telefonica Executive Chairman Cesar Alienta and Argentine President Nestor Kirchner. Telefonica said its Argentine fixed-line subsidiary, Telefonica de Argentina SA, would invest ARS900 million to install 1 million new basic fixed lines, to install 50,000 public telephone lines, to increase Internet access by 70% and to upgrade the technology the unit uses. Telefonica's cellular division, Telefonica Moviles Argentina S.A. that operates the Unifon band, will invest ARS700 million in the coming years with the aim of providing clients with the latest technology. Alienta believes these investments are worthwhile in a scenario where Argentina's economy is getting back on its feet after years of recession. The economy is expected to grow 7% this year. "I observe with satisfaction that the Argentine economy is beginning to show very strong signs of recovery. It is good news for Telefonica because we are firmly tied to Argentina's destiny and we will continue to be so. We believe in Argentina." Telefonica made the announcement while Telefonica de Argentina is trying to get back on its feet after falling heavily into debt following Argentina's 70% depreciation of the peso last year. The unit has recently restructured much of its debt, but analysts say the unit still has much work to do to regain its pre-crisis strength. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar Contacts: Carlos Fernandez-Prida Mendez Nunez, Chairman Paul Burton Savoldelli, Vice Chairman Fernando Raul Borio, Secretary VINTAGE PETROLEUM: Announces 2004 Prelim Cap Budget, Targets ------------------------------------------------------------ Vintage Petroleum, Inc. announced Wednesday its preliminary 2004 non-acquisition capital budget of $225 million, a 22 percent increase from 2003's planned capital budget of $185 million. Approximately 73 percent, or $165 million, of the total 2004 capital expenditure budget is allocated to lower-risk exploitation projects. About 50 percent of total exploitation spending, or $84 million, is allocated to drilling, workovers, seismic surveys and secondary recovery projects in Argentina. The four-rig drilling program initiated during 2003 will be continued in 2004, accounting for about 70 percent of the Argentina exploitation budget, with expectations of drilling 90 wells (88 wells in the San Jorge basin and 2 wells in the Piedras Coloradas concession), a 29 percent increase over the 70 wells planned for 2003. The remaining 30 percent of the Argentina exploitation budget is allocated for the completion of 84 workovers in the San Jorge basin, the initiation of waterflood projects and 3-D seismic surveys. Initial waterflood production response is expected during 2005. Approximately 165,000 acres of 3-D seismic will be recorded on the Tres Picos- Caleta Olivia, Cerro Wenceslao, and Cerro Overo concessions during 2004. Currently, only 39 percent of the company's operated 1.1 million gross acres in Argentina have been covered by 3-D seismic surveys. The North American exploitation budget of $55 million accounts for 33 percent of the total exploitation budget with $46 million allocated to the United States. The 2004 domestic drilling program consists of 31 wells in California, Louisiana, Oklahoma and Texas, with 63 workovers budgeted in those same states. In Canada, a total budget of $22 million has been set with nearly 60 percent allocated to exploration and 40 percent to exploitation. Fifteen exploitation wells in the Peace River Arch, West Central and Sturgeon Lake areas and 11 workovers in the Peace River Arch, East of 5 and Sturgeon Lake areas are scheduled. On October 15, 2003, the Republic of Yemen's Ministry of Oil and Minerals approved Vintage's S-1 Damis block development plan covering approximately 285,000 acres for a term of 20 years. Facilities construction and drilling in Yemen account for the remaining $26 million, or 16 percent of Vintage's 2004 exploitation budget. Approximately $17 million has been earmarked in the 2004 budget for the construction of facilities near the An Nagyah light oil discovery and a pipeline. Approximately $6 million in capital expenditures will be incurred for facilities construction during the first quarter of 2005 to complete the installation. The facilities will be designed to process up to 10,000 gross (5,200 net) barrels of oil per day and are expected to be completed by April 2005. The remaining $9 million allocated to Yemen is for the drilling of six An Nagyah development wells and one Harmel appraisal well during 2004. Vintage expects to install facilities which will allow for the early production of up to 2,500 gross (1,300 net) barrels of oil per day beginning during the first quarter of 2004. The remaining 27 percent of the 2004 capital budget, or approximately $60 million, will be directed toward exploration projects primarily targeting gas in North America. About $51 million, or 85 percent of the exploration budget, will be spent in North America and $9 million will be spent on international projects. In the United States, $38 million will be spent on exploration activities. Of this amount, $25 million has been allocated to 10 exploration wells which will be drilled on eight prospects located in West Texas, the Texas Gulf Coast and South Louisiana. The remaining $13 million has been allocated to the acquisition of seismic and leasehold required to continue to build the exploration prospect inventory in the United States. Approximately $13 million has been allocated to Canadian exploration where 12 wells are planned to be drilled in the foothills trend of Northeast British Columbia and Peace River Arch areas. Exploration outside North America has been allocated $9 million which will be spent primarily on the drilling of two wells in Italy and the continuing geological evaluation of the high impact, frontier project in Bulgaria. In early 2001, Vintage acquired a 70 percent working interest in two exploration blocks situated in the Po Valley, an industrial region of northern Italy which has a long-established production history and well- developed pipeline infrastructure serving a highly developed gas market. Using seismic attributes analysis from reprocessed 2-D seismic combined with newly acquired geochemical surveys, Vintage is targeting shallow Pliocene gas sands in structural- stratigraphic traps. The process of well permitting is underway and the company plans to begin drilling the first of two exploration wells in early 2004. If successful, Vintage believes that numerous similar prospects can be drilled using the same technology-driven exploration concept. Vintage is the operator of the Bastiglia and Cento blocks covering approximately 275,000 gross acres. Targets for 2004 The 2004 non-acquisition capital budget is aimed at stabilizing production in the short-term while devoting significant resources to projects that can provide longer-term growth opportunities. Approximately $78 million, or 35 percent of the total 2004 non-acquisition capital budget, is comprised of exploration and development expenditures that target production growth in 2005 and beyond. Vintage is targeting production of 26.9 million barrels of oil equivalent in 2004. This targeted production level takes into account the impact of the recent Simi Valley fire that shut-in approximately 3,500 barrels of oil equivalent per day of Vintage's production in California. Vintage expects the shut-in wells to be returned to production throughout the first quarter of 2004. The company has assumed a lower average NYMEX price for the year 2004 of $27.00 per barrel of oil versus its revised 2003 assumption of $30.40 per barrel. For natural gas, the company has lowered its assumed NYMEX price for the year to $5.00 per MMBtu from its revised 2003 assumption of $5.45 per MMBtu. The oil price received in 2004 as a percent of the NYMEX price is anticipated to be 84 percent compared to the 87 percent estimated for 2003. The gas price received in 2004 as a percent of the NYMEX price is anticipated to strengthen marginally to 69 percent from 68 percent assumed for 2003. Given its preliminary outlook for the 2004 capital budget, production, assumed prices and costs enumerated in the accompanying table, "Vintage Petroleum, Inc. Preliminary Targets for 2004 ", as well as other expectations, Vintage has established 2004 targets for cash flow (before all exploration expenses and working capital changes) and EBITDAX of $214 million and $315 million, respectively. The 2004 targets do not reflect the impact of the costs to be incurred to repair damage to the company's properties resulting from recent fires in California. Vintage Petroleum is an independent energy company engaged in the acquisition, exploitation, exploration and development of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the New York Stock Exchange under the symbol VPI. For additional information visit the company website at www.vintagepetroleum.com VINTAGE PETROLEUM: Third Quarter 2003 Operations Update ------------------------------------------------------- Vintage Petroleum, Inc. updated Wednesday its operational activities and plans for 2003. During the third quarter, $50 million of the company's 2003 planned non- acquisition capital budget of $185 million was spent drilling a total of 37 gross (33.0 net) wells and performing 56 workovers. The company is on track to drill approximately 130 net wells and undertake a variety of lower-risk exploitation projects with approximately 70 percent of the budget during 2003. The remaining 30 percent of the budget continues to be allocated primarily to potentially higher-impact exploration programs in the United States, Canada and Yemen. United States Exploitation During the quarter, five gross (four net) exploitation wells were drilled with an 86 percent success rate. Year to date, 23 gross (20.0 net) wells have been drilled with an 85 percent success rate and 96 workovers have been performed. Exploitation drilling in the Gilmer and Loma Blanca Fields in Texas and the Strong City Field in Oklahoma resulted in three gross (2.5 net) wells with an initial production buildup of 5.6 million cubic feet of gas and 200 barrels of oil per day net to Vintage's interest. High angle drilling of one gross (one net) well in the Pleito Ranch Field in California developed an initial net production buildup of 260 barrels of oil and 100 thousand cubic feet of gas per day. The 2003 U.S. exploitation program budgeted at $49 million is on track to drill a total of 35 gross (29 net) wells by year-end. Vintage is drilling a replacement well for its Galveston Bay State Tract 65-2 well lost due to mechanical reasons and will drill approximately five horizontal oil wells during the fourth quarter in the Darst Creek field as well as test a high-angle drilling concept in the San Miguelito field in California. Additionally, several tight gas wells are planned in the Gilmer and Terryville fields in Texas and Louisiana. Based on the results of these various exploitation drilling programs, several additional future drilling locations could be generated in these fields. Exploration Vintage has secured an interest in over 19,500 gross acres in the Permian basin encompassing three, multi-well exploration prospects targeting known tight carbonate gas reservoirs. These prospects are predicated on an established play concept which utilizes horizontal drilling and fracture stimulation technology to significantly improve production and economics over the historical results obtained utilizing vertical wellbores. The first exploration well in the Austin prospect in Lea County, New Mexico, the Hannah 17 State #2-H, targets the Mississippian formation and casing has been set at a measured depth of 16,428 feet, which includes the 3,100 foot horizontal section. The fracture stimulation of the horizontal section is scheduled for early November, and if successful, several additional wells could be drilled on this prospect. The first exploration well on the Rosehill prospect, the Wilbanks 53 #2-H, in Martin County, Texas, targets the Mississippian formation as well. The well has been drilled to a depth of 10,550 feet and casing has been set. Drilling is proceeding on a 4,000 foot horizontal section and is expected to take approximately 30 days. Vintage has a 100 percent working interest in both the Rosehill and Austin wells. Earlier this year, Vintage participated in the Muleskinner #1 well in the Leatherwood prospect with a 33 percent working interest. This well was a horizontal Devonian test in Terrell County, Texas, drilled to a total depth of 17,931 feet, which included a 2,750 foot horizontal section. Three separate fracture stimulations were performed in the horizontal section and the well currently has sustained production of 1.1 million cubic feet of gas per day gross (261 thousand cubic feet of gas per day net). Pending further technical evaluation, additional wells may be drilled in this prospect. Vintage is pursuing company-generated Oligocene and Miocene prospects in the Texas Gulf Coast based on 3-D seismic and geochemical surveys. Within these targeted play concepts Vintage has acquired five Texas state leases covering three shallow water prospects. The first exploration well to be drilled on one of the Texas Gulf Coast exploration plays is located on the Tres prospect which is based on a Miocene gas exploration target coupled with the redevelopment of additional Miocene oil and gas sands. In November, Vintage will begin drilling the first of two wells planned for the fourth quarter to an approximate depth of 8,200 feet. Vintage will operate these wells and has a 65 percent working interest in this prospect; and if successful, production could commence as early as mid-year 2004. The total net unrisked reserve potential on the Tres prospect is 15 Bcfe. Argentina Twenty-one gross (20.4 net) exploitation wells were drilled on several concessions in the San Jorge Basin and the Cuyo Basin during the third quarter with a success rate of 100 percent. In addition, 16 workovers were performed during the third quarter. Four drilling rigs and six workover rigs were running during the third quarter. Forty-six gross (44.8 net) wells have been drilled and 55 workovers have been performed year-to-date. Vintage plans to drill 70 gross (68.8 net) wells this year. 3-D seismic covering nearly 36,000 acres is scheduled during the fourth quarter on the Canadon Leon concession. Canada Vintage has drilled 25 gross (16.0 net) exploitation and exploration wells with an 81 percent success rate year-to-date. For the year, Vintage plans to drill approximately 40 gross (25.0 net) exploitation and exploration wells with activity occurring in the Sturgeon Lake, West Central and Peace River Arch areas of Alberta and the foothills trend in northeastern British Columbia. During the third quarter, exploitation drilling in the Sturgeon Lake and West Central areas added 1.5 million cubic feet of gas per day and 175 barrels of oil per day of stabilized production. Exploration activity continued in the Cypress area located in the foothills trend of northeastern British Columbia. The first well, a 5,210 foot Triassic test, has been drilled and cased with completion operations underway. One additional Triassic well is planned during the fourth quarter. Vintage will have a 40 percent, non-operated interest in this prospect. In the same prospect area, Vintage will spud an 8,940 foot Mississippian test during November. Vintage will operate this well and participate with a 60 percent working interest. Prospect size for the targeted plays range from 20 to 150 Bcfe. Vintage's net unrisked reserve potential for this program is approximately 90 Bcfe. During 2003, Vintage and its partners have acquired 9,800 net (23,800 gross) acres in the prospect area located near marketing infrastructure. During early 2003, Vintage entered an agreement to conduct exploration activities as operator on four onshore blocks in the province of Nova Scotia, Canada. Vintage drilled the Beech Hill # 1 prospect located in the Antigonish block to a total depth of 3,425 feet targeting potential oil accumulations in a Carboniferous Age reef. At this location, the well did not encounter reservoir quality formations and was subsequently abandoned. With the drilling of the well, Vintage has earned an 80 percent working interest in the Antigonish block. During the third quarter, the company acquired 46 miles of 2-D seismic and conducted a geochemical survey on the Bras d'Or, Sydney and Pictou blocks. Vintage has the opportunity to earn 75 percent working interest in the Bras d'Or, Sydney and Pictou blocks and, depending on the evaluation of the acquired geological information, may elect to acquire additional seismic data or proceed with the drilling of wells on these blocks. The Antigonish, Bras d'Or, Sydney and Pictou blocks cover approximately 1.5 million gross acres. =========== B R A Z I L =========== CERJ: Chilean Parent Takes Steps to Cut Power Theft --------------------------------------------------- Chilean power sector holding company Enersis is embarking on a measure to cut power theft at its Brazilian unit Cerj, reports Business News Americas. Citing Enersis CFO Alfredo Ergas, the report says that Enersis is in the process of installing a new system to reduce power theft at the Rio de Janeiro utility. The move came after Cerj reported a 12.6% increase in energy losses, to 2,239GWh, in the nine months from January to September this year, the highest level of power losses amongst all of Enersis' distributors. However, "in the last three months the marginal losses have improved because we are in the process of applying this project in Brazil's distribution sector," Ergas said, adding "we hope that in the next two months we will have better news from Cerj in this respect." "After all the investment and research at Cerj, we know better where we have the problem in terms of the special neighbors and special streets, and that's an important improvement," Ergas said. Cerj recorded a net loss of US$146 million as of September 30, 2003, compared to a US$182-million profit in the same period last year. CONTACT: Cia de Eletricidade do Estado do Rio de Janeiro - Cerj Sao Domingos 24210-200 Niteroi - RJ Brazil Phone: +55 21 2613-7783 Fax: +55 31 2613-7123 Home Page: http://www.cerj.com.br Contacts: Eduardo J. Bernini, Chairman Emilio Lopez Ordobas, Vice Chairman EMBRATEL: Streamlines its Marketing Organization ------------------------------------------------ Embratel, making use of its renowned experience and its scope as premium telecommunications carrier in Brazil, announced today the streamline of its Marketing organization, in order to bring it into line with the needs of its customers and with its corporate goals. The new structure of the Vice Presidency of Marketing and External Affairs will focus on the provision of a customer service based on a segmented market view. According to this strategy, the new organization will comprise four Market Directors - Major Accounts and Providers; Government Accounts; Small and Mid-sized Businesses; SOHO (Small Office/Home Office) and Residential - and two cross-functional Directors - the Solution Development Director, and the Integration, Communication and Control Director. The Market Director will be in charge of identifying and developing customized solutions for current and future communication requirements of customers from each market segment, in order to promote their business development, to improve their communications and their lives. The Solution Development Director will address the customer needs of several segments identified by the Market Directors, and enhance the utilization of Embratel products and services, with the purpose of exceeding the market prospects by introducing the best solutions ever. Finally, the Integration, Communication and Control Director will be responsible for integrating the marketing activities and using indicators to track the performance, which will bring about the implementation of immediate corrective actions if applicable. Additionally, this organization will provide integrated communication in compliance with the marketplace, making the most of synergies and maximizing results. The External Affairs Directors have not been changed, although they are expected to make some adjustments at internal level, to be in conformity with the new Marketing organization. . The new Marketing and External Affairs organization brings very good news to Embratel customers, who will benefit from its innovative solutions and advanced telecommunications services specially developed to meet their special needs, being supported by an aggressive market segmentation and strategies developed by skilled executives, implemented by the best, most dedicated sales and services team all over Brazil. Embratel is the premium telecommunications provider in Brazil, offering a wide range of telecommunication services, such as advanced voice, high-speed data transmission, internet, data communication by satellite and corporate networks. The company is national leader in data and internet services, in a privileged position to become the Latin American carrier with an all- distance network. Embratel network has national coverage with almost 17,500 miles of optic cables, representing around one million miles of fiber optics. To see latest financial statements: http://bankrupt.com/misc/EMBRATEL.htm CONTACT: Silvia M.R. Pereira, Investor Relations Phone: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br KLABIN: S&P Ups Ratings, Removes from CreditWatch ------------------------------------------------- Standard & Poor's Ratings Services raised Wednesday its global scale corporate credit ratings on Brazilian paper goods company Klabin S.A. (Klabin) to 'BB-' from 'CCC+' in the local currency and to 'B+' from 'CCC+' in the foreign currency. The ratings were removed from CreditWatch, where they were placed on June 3, 2003. The outlook is now stable. "The rating action reflects the successful conclusion of Klabin's asset sale program and the significant improvement in the company's debt structure and liquidity position, as most of the resources collected with these asset sales was used to pay off debt," said Standard & Poor's credit analyst Milena Zaniboni. The local currency rating on Klabin reflects the company's increased focus on packaging products, and consequently the stronger correlation of sales to the performance of the volatile Brazilian economy, as well as a still-fragmented market for corrugated boxes that does not allow for rational pricing policies. These risks are partially offset by Klabin's very competitive cost position, which derives from high forest yields and full integration of forests and production plants, together with its more comfortable debt profile going forward. The stable outlook on the foreign currency rating mirrors that of the Republic of Brazil. The stable outlook on the local currency rating reflects Standard & Poor's expectation that Klabin will continue to present a low debt position and strong operating margins despite uncertainties on the level of local consumption and a relatively more aggressive capital expenditure and dividends distribution programs. The outlook could be changed to positive depending on the strengthening of the local economy and confirmation that Klabin will maintain a moderate financial profile going forward. On the other hand, further analysis of the company's capital expenditure program could put negative pressure on the ratings. ANALYST: Milena Zaniboni, Sao Paulo (55) 11-5501-8945 Marcelo Costa, Sao Paulo (55) 11-5501-8955 VESPER: QUALCOMM Announces Fourth Quarter, Fiscal 2003 Results -------------------------------------------------------------- QUALCOMM Incorporated announced Wednesday its fourth quarter and fiscal 2003 results ended September 28, 2003. Revenues were $909 million in the fourth fiscal quarter, up 4 percent year-over- year. Fourth quarter net income was $291 million and earnings per share were $0.35, up 53 percent and 52 percent year-over-year, respectively. Revenues were $4.0 billion in fiscal 2003, up 31 percent compared to fiscal 2002. Fiscal 2003 earnings were $827 million and earnings per share were $1.01, both up 130 percent compared to fiscal 2002. Revenues excluding the QUALCOMM Strategic Initiatives (QSI) segment were $870 million in the fourth fiscal quarter, up 4 percent year-over-year. Fourth quarter net income excluding the QSI segment was $236 million and earnings per share were $0.29, down 5 percent and 6 percent year-over-year, respectively. In fiscal 2003, revenues excluding the QSI segment were $3.8 billion, up 32 percent compared to fiscal 2002. Fiscal 2003 net income excluding the QSI segment was $1.2 billion and earnings per share were $1.42, up 46 percent and 45 percent, respectively, compared to fiscal 2002. Detailed reconciliations between total QUALCOMM results and results excluding QSI are included at the end of this news release. Prior period reconciliations are presented on our Investor Relations web page at www.qualcomm.com . "The employees of QUALCOMM have delivered an outstanding year of exceptional performance both in financial results and in advancing wireless services and their usefulness to consumers and businesses around the world," said Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM. "Among the many accomplishments was the shipment of our billionth chip, demonstrating our continued leadership position in the development and on-time delivery of CDMA chipsets. We are reducing costs for our customers by leading the industry in integrating software and multimode, multifrequency, and multinetwork capabilities into our CDMA products. Nearly all of our chipset shipments are enabling third generation services for 61 wireless operators in 31 countries, and these 3G voice and data services are now being rapidly accepted and enjoyed by over 65 million subscribers. Introduction of very high-speed 1xEV-DO by operators in South Korea and the United States has opened new service applications for consumers and businesses and many CDMA operators around the world are considering deploying this technology. China Unicom recently concluded its first phase of the GSM1x trial which included successful testing of the world's first GSM and CDMA2000 multimode handset. We expect to see increased royalty revenue with the deployment of WCDMA beginning to ramp, and are also well positioned to win a significant share of the WCDMA chip business and further expand the BREW footprint. BREW has already been adopted by 10 wireless operators in seven countries, and consumers have completed over 50 million downloads of BREW applications developed by the BREW global developer community." "In 2004, we look forward to the world continuing its migration to the most economic wireless platform, CDMA. As additional operators launch CDMA2000 1X and 1xEV-DO and WCDMA, there will be an ever increasing need for multimode multiband handsets to enable true global roaming. In response to market demands, we plan to significantly increase our R&D spending and build on our innovations delivering the most cost effective and integrated CDMA-based products." "As a result of our performance and strong cash position, during fiscal 2003 we initiated a $1 billion stock repurchase program, paid our first quarterly dividend, and in the fourth quarter we increased the quarterly dividend. QUALCOMM remains well positioned to grow earnings and revenue with its large technology portfolio and strong balance sheet." Dr. Jacobs said. Research and development (R&D) expenses were $143 million in the fourth fiscal quarter, up 30 percent year-over-year. The increase in R&D expenses compared to the year ago quarter was primarily related to continued new product development efforts. Selling, general and administrative (SG&A) expenses were relatively flat in the fourth fiscal quarter compared to the year ago quarter, increasing 1 percent to $134 million. Our fiscal 2003 effective income tax rate was approximately 36 percent, compared to 22 percent in fiscal 2002. The lower tax rate in fiscal 2002 was primarily due to the reduction of valuation allowances in fiscal 2002 that were previously charged to tax expense. The effective income tax rate in the fourth quarter was 6% mainly as a result of tax losses relating to Brazilian investments and operations. Excluding the QSI segment, our fiscal 2003 effective tax rate was 33 percent, compared to 35 percent in fiscal 2002. The lower rate was caused by higher foreign earnings which are subject to a lower tax rate. QUALCOMM Strategic Initiatives The QUALCOMM Strategic Initiatives (QSI) segment includes our strategic investments and related income and expenses. Vesper losses before taxes were $28 million in the fourth fiscal quarter compared to $42 million in the year ago quarter. The remainder of the net loss before taxes in QSI was $14 million for the fourth fiscal quarter compared to $56 million in the year ago quarter. The net loss in the fourth quarter of fiscal 2003 included $27 million of other-than-temporary losses on investments and $16 million in equity losses, partially offset by $32 million in net realized gains on investment sales. On September 25, 2003, Embratel Participacoes S.A. (Embratel) entered into an agreement to acquire from us for nominal consideration the Vesper Operating Companies (the Embratel sale transaction) excluding the tower and rooftop antennae assets and related property leases (Tower Sites). Concurrent with the closing, Vesper will enter into a multi-year arrangement whereby it pays a monthly fee to us to use the Tower Sites. The sum of these fees, net of certain pass through expenses, is expected to exceed $77 million over the life of the arrangement. The closing of the Embratel sale transaction is contingent upon a number of events being completed prior to or concurrent with closing, including regulatory approval. Assuming the requisite government approvals are received and all conditions to close are satisfied, we anticipate providing approximately $40 million to $45 million in aggregate funding (including $6 million of interim funding) by the closing date to facilitate the Embratel sale transaction. We expect to record an approximate $35 million to $45 million loss if and when the transaction closes, including the recognition of cumulative foreign translation losses. Business Outlook The following statements are forward-looking and actual results may differ materially. Please see Note Regarding Forward-Looking Statements at the end of this news release for a description of certain risk factors and QUALCOMM's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks. First Quarter Fiscal 2004 * Based on the current business outlook, we anticipate that revenues excluding the QSI segment in the first fiscal quarter will increase sequentially by approximately 16-22 percent and decrease year-over-year by approximately 1-6 percent. We anticipate that earnings per share excluding the QSI segment will be approximately $0.37-$0.40 in the first fiscal quarter, compared to $0.42 in the year ago quarter. This estimate assumes shipments of approximately 27-28 million MSM phone chips during the quarter. We expect approximately 106 - 108 million CDMA phones to be sold in calendar 2003. * Based on the current business outlook, we anticipate that total QUALCOMM revenues in the first quarter will increase sequentially by approximately 14-20 percent and decrease year- over-year 1-5 percent. We anticipate that total QUALCOMM earnings per share will be approximately $0.25-$0.28 in the first fiscal quarter, including an estimated $0.12 loss per share attributed to the QSI segment, compared to $0.13 per share in the year ago quarter. Due to their nature, certain income and expense items such as realized gains or losses, gains or losses on derivatives, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items. Fiscal 2004 * Based on the current business outlook, we anticipate that revenues excluding the QSI segment will grow by approximately 5-9 percent year-over-year and earnings per share excluding the QSI segment to be in the range of $1.37-$1.43 for fiscal 2004, compared to $1.42 last fiscal year. We anticipate the combination of R&D and SG&A expenses to grow approximately 18-20 percent year-over-year, primarily to serve the expanding market for CDMA2000 and WCDMA chipsets. We estimate the CDMA phone market to be 131-136 million units in calendar 2004, and we estimate a decrease of approximately 8 percent in average selling prices of CDMA phones for fiscal 2004, upon which royalties are calculated, compared to an estimated decrease in fiscal 2003 of 2 percent. * Based on the current business outlook, we anticipate that total QUALCOMM revenues will grow by approximately 3-7 percent year-over-year and total QUALCOMM earnings per share to be in the range of $1.17-$1.23 for fiscal 2004, up 16-22 percent year-over- year, including an estimated $0.20 loss per share attributed to the QSI segment. Due to their nature, certain income and expense items such as realized gains or losses, gains or losses on derivatives, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items. Cash and Marketable Securities QUALCOMM's cash, cash equivalents and marketable securities totaled approximately $5.4 billion at the end of the fourth quarter of fiscal 2003, compared to $5.0 billion on June 29, 2003 and $3.2 billion on September 29, 2002. We have invested $158 million in net stock repurchases and have paid $135 million in cash dividends since the inception of these programs in February 2003. In fiscal 2003, QSI generated net cash of $634 million. Detailed reconciliations between total QUALCOMM cash and cash equivalents and cash and cash equivalents including marketable securities and excluding the QSI segment are included at the end of this news release. QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500r company traded on The Nasdaq Stock Marketr under the ticker symbol QCOM. To see financial statements: http://bankrupt.com/misc/QUALCOMM.htm CONTACT: QUALCOMM Bill Davidson, Vice President, Investor Relations Tel: +1-858-658-1818 Fax: +1-858-651-9303 Email: ir@qualcomm.com * Remarks by IMF First Deputy Managing Director Krueger in Brazil ----------------------------------------------------------------- International Monetary Fund (IMF) First Deputy Managing Director Anne Krueger issued the following statement on Wednesday during a visit to Brasilia: "The purpose of my visit to Brazil is to meet key members of President Luis Inacio Lula da Silva's administration as well as members of the business and financial community, as Brazil successfully nears the end of the Fund-supported program that has admirably stabilized its economic and financial situation and positioned the country for a strong recovery. In Brasilia, today, I have already had the pleasure of meeting with Vice President Jos� Alencar, Finance Minister Antonio Palocci, the President's Chief of Staff Jose Dirceu, and Central Bank President Henrique Meirelles. Tomorrow, in Sao Paulo, I will be meeting representatives from the private sector. "The IMF has been privileged to enjoy a close working relationship with Brazil. Over the past year, the Brazilian authorities have implemented prudent economic policies that have overachieved the fiscal targets and gained the support of the official and private international community, To consolidate the recent achievements, the authorities have indicated to me their desire to extend the current Stand-By Arrangement for about one year, with an augmentation of resources, as part of its strategy to exit from Fund support. The IMF team led by Mr. Jorge M rquez- Ruarte has worked with the authorities this past week toward this end. The process is at an advanced stage. The government has confirmed that it will maintain the sound policies that have been successfully implemented this year. In addition, the government intends to continue its program of structural reforms in areas crucial to help accelerate growth over the medium term. Key measures will enhance financial intermediation, lower the bank lending spreads, and improve the business environment. Fiscal overperformance is allowing the government to strengthen its support of the water and sanitation sector at the subnational level and enhance its institutional framework. Toward this end, the authorities will identify revenue-yielding projects of a self financing nature that will strengthen subnational governments and contribute to the welfare of the low-income population. "In my judgment, the authorities are putting together a sound program. On this basis, IMF management expects shortly to recommend the program to the Executive Board. The proposed augmentation, combined with undrawn resources available under the program after the completion of the current review in December, would make a total of about US$14 billion available to Brazil during 2004. Given the strong recovery in market confidence, the government has expressed its intention not to draw these additional amounts. The funds will, however, be available to provide important insurance against possible external shocks, as the government completes the process of fully restoring market confidence and consolidating the foundations for sustained, equitable growth. Moreover, in order to smooth Brazil's repurchases to the Fund, the authorities have requested to extend by one year repurchases of SDR 4 billion (about US$5.5 billion) arising in 2005 and 2006. "As the President and his administration celebrate the first anniversary of their election, we at the Fund would like to extend our congratulations for their first year in office. The implementation of the government's agenda has already done much to reduce Brazil's vulnerabilities. The government's program for 2004 will continue this process, and bring economic progress to all classes of Brazilian society. Over the coming year, we look forward to continuing to work with Brazil to ensure the achievement of these objectives," Ms. Krueger stated. CONTACT: INTERNATIONAL MONETARY FUND 700 19th Street, NW Washington, D.C. 20431 USA IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 ========= C H I L E ========= AES GENER: To Decide Amount of Capital Increase on Nov. 21 ---------------------------------------------------------- Chilean generator AES Gener announced Wednesday it will hold a shareholders meeting November 21 to decide on the amount of a capital increase of up to US$80 million, reports Business News Americas. Earlier, its US parent, AES Corp, said that the capital increase, as well as paying off US$300 million of AES Gener's debt and refinancing a further US$400-million debt, will be completed by December. In October, AES CEO Paul Hanrahan said the parent company will provide a "significant part" of the US$300 million capital increase, with the balance coming from investors that would take minority stakes in the company. CONTACT: AES GENER S.A. Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: (56-2) 6868900 Fax: (56-2) 6868991 Home Page: www.gener.com Contact: Robert Morgan, Chief Executive Laurence Golborne Riveros, Chief Financial Officer INDUSTRIAS TEXTILES: Chilean Court Declares Bankruptcy ------------------------------------------------------ A Chilean court has declared textile concern Industrias Textiles Norel bankrupt. Bankruptcy trustee Juan Carlos Saffie has taken charge of the Company's management. He will schedule a creditors meeting to take place on December 22. Creditors will have 30 days to justify their credits and preferences. =========== M E X I C O =========== ALESTRA: Announces Satisfaction of its Minimum Tender Condition --------------------------------------------------------------- Alestra, S. de R.L. de C.V. ("Alestra") announces the satisfaction of its minimum tender condition and the expiration of its cash tender offers, exchange offers and consent solicitation for all of its outstanding principal amount of its 12 1/8% Senior Notes due 2006 and 12 5/8% Senior Notes dues 2009 (the "offers") and its solicitation of acceptances to a U.S. prepackaged plan of reorganization last night, November 4, 2003 at 11:59 p.m. New York City time. $232,920,000 principal amount of Alestra's outstanding 12 1/8% Senior Notes Due 2006 was tendered in the offers and $254,200,000 principal amount of Alestra's outstanding 12 5/8% Senior Notes Due 2009 was tendered in the offers. These amounts in the aggregate represent 85.5% of the existing senior notes. The offers were conditioned upon receipt of valid tenders representing at least 85% in aggregate of the existing senior notes. The offers remain subject to the various conditions described in Alestra's prospectus dated August 21, 2003, as supplemented, and the settlement of the offers will occur as soon as practicable if those conditions are satisfied. Further information will follow in the near future. Alestra is a leading provider of competitive telecommunications services in Mexico that it markets under the AT&T brand name and carries on its own network. Alestra offers domestic and international long distance services, data and internet services and local services. Any questions regarding the cash tender offers, exchange offers, the consent solicitations and the solicitation of acceptances to a U.S. prepackaged plan of reorganization may be addressed to Morgan Stanley as dealer manager for this transaction at the following number: CONTACT: Morgan Stanley Simon Morgan Phone: 212-761-2219 Jason Whitt Phone: 212-761-1893 ======= P E R U ======= SIDERPERU: Reports Results For First Nine-Months, 3Q of 2003 ------------------------------------------------------------ Embattled Peruvian steelmaker Siderperu reported a net loss of PEN7.56 million in the first nine months of the year, up from a loss of PEN3.52 million in the same period last year, Business News Americas reports, citing a company filing to the country's securities regulator Conasev. In the third quarter of 2003, the filing said that Siderperu's loss in the third quarter of 2003 is PEN2 million (US$580,000), the same as the figure reported in the same year-ago period. However, revenues were up in both periods. In the first three quarters of the year, the Company reported revenues of PEN324 million, compared to PEN305 million in the same year-ago period. In the third quarter of 2003, revenue came in at PEN116 million, compared to PEN111 million in the year ago quarter. According to Business News Americas, Siderperu has had trouble this year meeting its obligations under a financial restructuring agreed with creditors in April 2002. The Company is due to meet with creditors at a yet-to-be-announced date to discuss the rescheduling of these debts. Siderperu's plant, located in Chimbote in center-west Peru's Ancash department, has installed capacity of around 400,000t. The Company is controlled by Peruvian holding company Sider Corp and recently formalized an agreement with Argentina's Siderar, part of the Techint group, to provide it with technical assistance. ================================= T R I N I D A D & T O B A G O ================================= BWIA: To Give Full Severance Payments To Ex-Employees Next Week --------------------------------------------------------------- BWIA announced Tuesday that 69 retrenched employees will get their full severance payments next week, the Trinidad Guardian reports. The announcement came after a group of 20 retrenched BWIA workers, led by Christopher Abraham, president of the Aviation Communication and Allied Workers Union, gathered outside the airline's head office on the northern side the Piarco International Airport on Tuesday to protest the non-receipt of their severance payments. If BWIA pays the 69 retrenched workers, this will mean that about 319 out of the airline's 471 former workers would have been paid their full benefits. If BWIA pays out of all the outstanding severance benefits by November 21, the airline will avoid at least one matter pending before the Industrial Court, said Abraham. CONTACT: British West Indies Airways Phone: + 868 627 2942 E-mail: mailto:mail@bwee.com Home Page: http://www.bwee.com/ ================= V E N E Z U E L A ================= SIDOR: Talks With SUTISS Now Underway ------------------------------------- Venezuelan steelmaker Siderurgica del Orinoco (Sidor) continues to negotiate with the SUTISS union. According to an unnamed Sidor spokesperson, SUTISS had planned a 24-hour stoppage for Wednesday, November 5, "which did not go ahead and negotiations are continuing." The official said a labor court decision to declare inadmissible the SUTISS submission regarding the evaluations had resulted in the union calling off the planned strike. The resolution came after more than a month of stoppages and "go-slows" by the union resulting in losses, which still have not yet been quantified Moreover, a decision to shut down some production lines, as a result of the "go-slow," to avoid damaging the plant and equipment, could not be reversed as the union opposed the measure, "of which the court has been informed," he said. 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 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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