/raid1/www/Hosts/bankrupt/TCRLA_Public/031113.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
Thursday, November 13, 2003, Vol. 4, Issue 225
Headlines
A R G E N T I N A
ADEBALL: Receiver To File Individual Reports Today
AOL LATIN AMERICA: Narrows Net Loss in the 3Q03
AVACA: Receiver Closes Credit Verifications in Reorganization
BANCO FRANCES: Delays Capital Payment On Bonds To Nov. 30
BANCO FRANCES: Reports $12.22M Loss in the 3Q03
BANCO FRANCES: Fitch Rates $150M of Bonds `C(arg)'
CARMAN: Voluntarily Files For Bankruptcy
COLEGIO MODELO: Deadline For Individual Reports Filing Today
CRESUD: Announces Results for the First Quarter Fiscal Year 2004
DEPOSITO COLOMBIA: Credit Check in Bankruptcy Process Ends Today
DESAROLLO DE CANALES: Court Orders Bankruptcy
EDUCATIVA PALERMO: Court Orders Bankruptcy
GEOR: Enters Bankruptcy on Court Orders
GRUPO GALICIA: Reports Lower Net Loss in the 3Q03
OBRAS Y MATERIALES: Court Assigns Receiver For Bankruptcy Process
PUB: Court Approves Creditor's Bankruptcy Petition
RANUCCI: Credit Verifications in Bankruptcy Process End Today
SANCAYET: To Undergo Reorganization
TELECOM ARGENTINA: Looks To Present New Debt Offer Within 2 Weeks
B E R M U D A
FOSTER WHEELER: Wins Waste Recycling Contract in South Africa
LORAL SPACE: Intelsat Expects To Close Purchase By Year-End
LORAL SPACE: Loral Skynet Initiates Telstar 13 Service
B R A Z I L
BNB: S&P Revises Outlook To Stable from Negative
BNDES: S&P Revises Outlook To Stable from Negative
BRAZILIAN BANKS: President Authorizes Privatization
CEMAR: Only One Bidder Merits Prequalification
EMBRATEL: Reaches One-year Service Anniversary
NET SERVICOS: Summary of 3Q03 Financial Results
C H I L E
ENDESA CHILE: Production Of Electricity Grows 5.23%
C O L O M B I A
VALORES BAVARIA: Will Simplify Operations By Splitting Holdings
J A M A I C A
JUTC: Has Resumed Normal Services Since Saturday's Protest
M E X I C O
BURLINGTON INDUSTRIES: WL Ross & Co. LLC Completes Acquisition
P U E R T O R I C O
DORAL FINANCIAL: Addresses Concerns on Mortgage Production Drop
- - - - - - - -
=================
A R G E N T I N A
=================
ADEBALL: Receiver To File Individual Reports Today
--------------------------------------------------
Mr. Horacio Fernando Crespo, receiver for Buenos Aires-based
Amoblamientos S.A., must submit the individual reports to the
court today. The reports were prepared after the credit
verification process was closed earlier this year.
The Troubled Company Reporter - Latin America earlier reported
the Company started its reorganization after Court No. 17
approved its motion for "Concurso Preventivo".
The general report must be filed at the court on December 30. The
informative assembly will follow on February 19, 2004.
CONTACT: Horacio Fernando Crespo
Maipu 464
Buenos Aires
AOL LATIN AMERICA: Narrows Net Loss in the 3Q03
-----------------------------------------------
America Online Latin America, Inc. announced Tuesday that it
reduced cash used in operating activities to $9.5 million, down
63% from $25.9 million during the prior-year period, and 33% from
$14.1 million, during the second quarter of 2003. During the
quarter, the Company also launched a family of segmented Web-
based services in Brazil.
The Company's third quarter 2003 net loss applicable to common
stockholders was $28.6 million, compared with a loss of $39.9
million, for the comparable prior-year quarter. The number of
shares outstanding, used in the per-share earnings calculation,
increased to $135.1 million from $67.1 million in the prior-year
period due to the January 2003 conversion of preferred stock to
class A common stock by the Company's principal stock holders.
The third-quarter loss compares with the Company's second quarter
2003 loss of $29.9 million, or $0.22 per share.
AOL Latin America's net loss before dividends on preferred stock
was $24.2 million in the third quarter, narrowing from a net loss
of $35.2 million on the same basis a year ago and $26.0 million
in the second quarter of 2003.
Total revenue was $16.3 million in the third quarter of 2003,
down from $17.6 million in the third quarter of 2002 and $17.7
million in the second quarter of 2003. Subscription revenue
totaled $14.8 million, down 6% compared with $15.8 million in the
year-earlier quarter and down from $15.9 million in the second
quarter of 2003. Reduced membership resulted in lower
subscription revenues. Advertising and other revenue totaled $1.5
million in the third quarter of 2003, down 16% compared with $1.8
million in the quarter ended September 30, 2002, and $1.8 million
in the second quarter of 2003.
The Company had 492,000 members as of September 30, 2003, down
from 625,000 members at June 30, 2003. The decline in membership
during the third quarter was due to lower levels of new member
registrations, as well as the previously announced termination of
members of the Banco Itau co-branded service who did not choose a
paid plan, which totaled approximately 79,000 in the quarter. The
reduction in the number of kiosks at Banco Itau branches and
strong price competition from providers of free and paid Internet
services in Brazil continue to impact member acquisition and
retention. In addition, the delay in the implementation of the
McDonald's marketing agreement impacted registration rates. As
with the Company's previous membership reports, the 492,000
member total includes members participating in free trial periods
as well as members of the co-branded Banco Itau service. AOL
Latin America expects further declines in membership during the
fourth quarter of 2003.
"AOL Latin America continued to benefit from earlier actions to
reduce the cost structure of the Company and was able to narrow
losses and improve cash usage once again in the third quarter of
2003. This reduction in losses was possible even as we rolled out
a family of new dial-up and broadband services in Brazil,
prepared to launch the newest version of the AOL software in
Puerto Rico, and saw our McInternet partnership with McDonalds
begin installing McInternet stations in restaurants in Brazil.
During the remainder of 2003, we will continue our dual focus on
operating efficiency and providing members with the highest
quality interactive experience," said Charles Herington,
President and CEO of AOL Lain America.
The new services launched in Brazil are Web-based and
specifically targeted at key user groups, including young people,
professionals and families. They are designed to help the Company
more effectively compete in the market by offering segmentation
both by audience and price. As a result of this segmentation, the
Company expects its average price and its average costs to
decline. The services allow subscribers to access e-mail, chat
and content offerings through any standard Web browser, and do
not require the use of the AOL software client installed via CD,
which we expect to contribute to lower acquisition costs. AOL
Argentina recently launched its own Web-based service, and AOL
Mexico began testing a similar offering during the third quarter.
Membership totals at September 30, 2003 include an insignificant
number of members of the Web-based interactive services and
broadband offerings, which were launched in the second half of
the quarter.
Cash used in operating activities in the third quarter of 2003
was $9.5 million, a reduction from $25.9 million, or 63%, from
the third quarter of 2002 and an improvement from $14.1 million
in the second quarter of this year. The improvement in cash used
in operating activities was achieved largely as a result of lower
costs and expenses. Cash and cash equivalents totaled $39.2
million as of September 30, 2003, benefiting from Banco Itau's
$2.7 million payment to the Company in lieu of certain marketing
activities. AOL Latin America expects to continue to receive
similar payments from Banco Itau in the future, although the
amounts of these payments are expected to decrease. AOL Latin
America now believes that based on its current operating plan,
available cash will be sufficient to fund operations into at
least mid-2004.
For the nine months ended September 30, 2003, the Company's net
loss applicable to common stockholders was $89.7 million, or
$0.68 per share of class A common stock, basic and diluted,
compared with a loss of $142.0 million, or $2.12 per share, in
the year-ago period. Shares used in the per-share earnings
computation for the nine months ended September 30, 2003
increased to 132.1 million from 67.1 million as compared with the
prior-year period as a result of the conversion of preferred
stock to common stock in January 2003.
Total revenue was $50.3 million for the first nine months of
2003, compared with $54.3 million in the year-ago period.
Subscription revenue totaled $45.6 million, compared with $47.7
million for the nine months ended September 30, 2002. Advertising
and other revenue totaled $4.7 million for the nine months ended
September 30, 2003, compared with $6.6 million in the comparable
period of 2002.
Other Highlights
Over the past several months, AOL Latin America continued to make
progress on several fronts, including:
Broadband in Brazil: In addition to the new Web-based services,
AOL Brazil recently launched its broadband offering, AOL MAXX,
which provides members with rich and compelling high-speed
content including video, music and online games that members can
enjoy through a new, user-friendly interface. AOL MAXX is
available throughout Brazil.
AOL 9.0 in Puerto Rico: AOL Puerto Rico launched the most
compelling upgrade in its history, AOL 9.0 in October 2003. The
new software includes AOL's new TopSpeed Web acceleration
technology, which enhances Web-surfing speed, as well as new
safety and security protections. AOL 9.0 includes new 3D animated
SuperBuddy Icons and a suite of new instant messaging and
personalized "expressions" features, as well as upgraded e-mail
and VIP access to exclusive content
McInternet Launch: On October 28, the Company and its existing
partners, McDonalds do Brasil and Banco Itau announced the
official launch of the McInternet project and the addition of
Hewlett Packard of Brazil to the McInternet partnership. The
group expects to rollout more than 1,200 computer access points
in almost 600 McDonald's restaurants throughout Brazil by the
second quarter of 2004. McDonald's commenced training of
McInternet hosts in October, allowing for in-store support for
users and for the AOL registration process.
About AOL Latin America
America Online Latin America, Inc. (Nasdaq:AOLA) is the exclusive
provider of AOL-branded services in Latin America and has become
one of the leading Internet and interactive services providers in
the region. AOL Latin America launched its first service, America
Online Brazil, in November 1999, and began as a joint venture of
America Online, Inc., a wholly owned subsidiary of Time Warner
Inc. (NYSE:TWX), and the Cisneros Group of Companies. Banco Itau,
a leading Brazilian bank is also a minority stockholder of AOL
Latin America. The Company combines the technology, brand name,
infrastructure and relationships of America Online, the world's
leader in branded interactive services, with the relationships,
regional experience and media assets of the Cisneros Group of
Companies, one of the leading media groups in the Americas. The
Company currently operates services in Brazil, Mexico and
Argentina and serves members of the AOL-branded service in Puerto
Rico. It also operates a regional portal accessible at
http://www.aola.com.America Online members worldwide can access
content and offerings from AOL Latin America through the
International Channels on their local AOL services.
CONTACT: America Online Latin America, Inc., Fort Lauderdale
Monique Skruzny, 954/689-3142
aolairr@aol.com
AVACA: Receiver Closes Credit Verifications in Reorganization
-------------------------------------------------------------
Mr. Mario Leizerow, receiver for Buenos Aires-based Avaca S.A.,
is due to close the credit verification process for the Company's
reorganization today. This part of the reorganization proceedings
ascertains the nature and amount of the Company's debts.
The city's Court No. 4, which handles the Company's case, ordered
the receiver to prepare the individual reports. The receiver is
also required to prepare a general report, but local sources did
not reveal the deadlines for the filing of these reports, nor the
date for the informative assembly.
CONTACT: Avaca S.A.
Ave. Gaona 1295
Buenos Aires
Mario Leizerow
Ave. Corrientes 1250
Buenos Aires
BANCO FRANCES: Delays Capital Payment On Bonds To Nov. 30
---------------------------------------------------------
BBVA Banco Frances SA informed the Buenos Aires Stock Exchange
that it has further delayed until Nov. 30 a capital payment on a
US$135-million bond series that is subject to restructuring,
relates Dow Jones.
Earlier, the Company announced that it had made interest payments
that fell due on Oct. 31 on those bonds but that capital payments
had been withheld as a restructuring agreement was expected some
time this week. At that time, payment was expected on Nov. 7.
The bank, which is controlled by Spain's Banco Bilbao Vizcaya
Argentaria SA (BBV), said in the statement to the bourse that the
additional postponement was made in accordance with its creditors
and that negotiations over the restructuring were continuing.
The target date for concluding the restructuring is now Nov. 19,
the Company said.
CONTACT: BBVA Banco Frances SA
199 Reconquista
Buenos Aires
Argentina 1003
Phone: +54 11 4346 4000
Home Page: http://www.frances.com.ar
Contacts:
Jaime Guardiola Romajaro, Chairman
BANCO FRANCES: Reports $12.22M Loss in the 3Q03
-----------------------------------------------
Banco Frances posted Tuesday a loss of ARS34.96 million (US$12.22
million) in the third quarter of this year, down from a loss of
ARS617.7 million in the same year-ago period.
Dow Jones relates that the bank, one of Argentina's biggest,
revealed its operating result showed a 98% improvement from its
year-ago figure, with the loss falling to ARS7.1 million from
ARS406 million. There was also a 95% improvement from the quarter
ended June 30, when the Company's operating loss was ARS142.6
million.
The bank said it posted a positive financial income result,
suggesting a big improvement from last year's financial crisis,
when bank earnings were hit heavily. Financial income came in at
ARS43.14 million, compared with a financial loss of ARS127.3
million a year ago and a loss of ARS48.755 in the June quarter.
The improved financial situation is a product of "the
readjustment of macro variables" and the depreciation in the peso
from its June 30 level in the third quarter.
BANCO FRANCES: Fitch Rates $150M of Bonds `C(arg)'
--------------------------------------------------
Some US$150 million worth of Banco Frances S.A.'s corporate bonds
were moved into junk territory recently. Argentine securities
regulator Comision Nacional de Valores relates that Fitch
Argentina Calificadora de Riesgo S.A. assigned `C(arg)' ratings
to the Company's bonds.
The affected bonds are described as "Serie 14 de ON por U$S 150
MM dentro del programa de ON por U$S 1000 (anteriormente era de
U$S 500 MM)". These were classified under "Series and/or Class",
the source adds without revealing the maturity date.
Fitch said that the `C(arg)' rating denotes an extremely weak
credit risk relative to other issues in Argentina. Capacity for
meeting financial commitments is solely reliant upon sustained,
favorable business or economic developments. The rating issued
was determined from the Company's financial situation as of June
30 this year.
CARMAN: Voluntarily Files For Bankruptcy
----------------------------------------
Carman S.R.L. filed for bankruptcy at Buenos Aires Court No. 26,
according local news portal Infobae. Clerk No. 51 aids the court
on the case. However, the court has not decided on the filing
yet. If the petition is approved, the Company will undergo the
bankruptcy process, with a local accountant overseeing matter as
the Company's receiver.
CONTACT: Carman S.R.L.
Cerrito 1194
Buenos Aires
COLEGIO MODELO: Deadline For Individual Reports Filing Today
------------------------------------------------------------
The deadline for the filing of the individual reports for the
bankruptcy of Argentine company Colegio Modelo de Buenos Aires
S.R.L. expires today. The Company's receiver, Mr. Juan Lewin,
prepared these reports after the credit verification process was
completed earlier in the year.
An earlier report released by the Troubled Company Reporter -
Latin America indicated that the city's Court No. 3 issued the
bankruptcy order and assigned the Company's receiver. Clerk No. 5
aids the court on the case.
The general report, which is prepared after the individual
reports are processed at court, must be filed by December 29 this
year. This contains a summary of the data in the individual
reports. The Company's assets will then be liquidated to
reimburse its creditors.
CONTACT: Colegio Modelo de Buenos Aires, S.R.L.
Cochabamba 1601
Buenos Aires
Juan Lewin
Quirno 353
Buenos Aires
CRESUD: Announces Results for the First Quarter Fiscal Year 2004
----------------------------------------------------------------
Cresud S.A.C.I.F. y A., a leading Argentine producer of
agricultural products, announced Tuesday its results for the
first quarter fiscal year 2004, ended September 30, 2003.
The company had a net loss of 2.0 million pesos for the first
quarter ended September 30, 2003, versus a 9.1 million-peso
profit a year earlier. The result can be attributed to: the
lesser amount of crops sold, the lower revaluation of cattle
compared to the previous year and the net loss derived from
Cresud's share in IRSA Inversiones y Representaciones S.A.
Summary of Operations
Crop sales for the quarter amounted to Ps. 5.6 million as
compared to Ps. 16.8 million registered during the previous year.
The volume of crops sold reached 12,202 tons at an average price
of Ps. 383 per ton, as compared to 37,268 tons sold at an average
price of Ps. 439 per ton during the same quarter of the previous
fiscal year.
As of September 30, 2003, the Company's cattle stock amounted to
83,767 head with 126,100 hectares allocated to this activity.
During the three-month period, 12,202 tons of grain and more than
3,000 tons of meat were sold.
Highlights
The clearing of 18,000 hectares for cattle raising and 2,200
hectares for agricultural use are being carried out in Cresud's
Los Pozos farm in Salta and AgroRiego farm in San Luis.
Cresud's Feed Lot, Cactus Argentina S.A., is operating at 100% of
capacity. Construction of pens for 4,000 additional head was
initiated.
The Soybean price increased 50% in the last 3 months, impacting
positively on our business.
The annual Shareholder's Meeting approved the distribution of a
cash dividend of Ps. 1.5 million or Ps. 1.2 cents per share.
Financial highlights
(In Argentine Pesos expressed in constant currency
as of 02/28/03)
IQ FY 2004 IQ FY 2003
Total Sales 12,204,693 21,712,916
Operating income
1,556,400 10,797,524
Financial results, net 159,746 (5,244,793)
Net Income (1,970,759) 9,084,594
Earning per share (0.02) 0.09
Earning per share diluted 0.01 0.09
Current Assets 55,637,018 104,289,321
Non current Assets 515,628,858 287,279,579
Total Assets 571,265,876 391,568,900
Current Liabilities 14,517,357 35,194,339
Non current Liabilities 166,087,662 24,247,274
Total Liabilities 180,605,019 59,441,613
Minority Interest 156,019 376,238
SHAREHOLDERS' EQUITY 390,504,838 331,751,049
Cresud is a leading Argentine producer of basic agricultural
products and the only such company with shares listed on the
Buenos Aires Stock Exchange and Nasdaq. We are currently involved
in various operations and activities, including crop production,
cattle raising and fattening, milk production and certain
forestry activities. Most of our farms are located in Argentina's
pampas, one of the largest temperate prairie zones in the world
and one of the richest areas of the world for agricultural
production.
CONTACT: Gustavo Mariani - Finance Manager
+54 11 4323 - 7413
gm@irsa.com.ar
URL: www.cresud.com.ar
DEPOSITO COLOMBIA: Credit Check in Bankruptcy Process Ends Today
----------------------------------------------------------------
The credit verification period for the bankruptcy of Argentine
company Deposito Colombia S.R.L. ends today, according to an
earlier report by the Troubled Company Reporter - Latin America.
The Company's receiver, Mr. Hugo Eduardo Sanguinetti, will
prepare the individual reports, which are due for filing on
December 29 this year.
The receiver will prepare the general report after the individual
reports are processed at court. This report is to be filed at the
court on February 27 next year.
The Company entered bankruptcy on orders from the Civil and
Commercial Tribunal of Rosario in Sante Fe. The Company's assets
will be liquidated at the end of the process to reimburse
creditors.
CONTACT: Deposito Colombia S.R.L.
Juan Jose Paso 6985
Santa Fe
Hugo Eduardo Sanguinetti
Gorriti 986
Rosario, Santa Fe
DESAROLLO DE CANALES: Court Orders Bankruptcy
---------------------------------------------
Court No. 13 of Buenos Aires ordered the bankruptcy of local
company Desarollo de Canales S.A., relates Argentine news portal
Infobae. Clerk No. 26 aids the court on the case.
The court assigned local accountant Miguel Adolfo Kupchik as
receiver for the process. He has instructions to validate
creditors' claims until December 3 this year. Failure to have
their claims authenticated disqualifies a creditor from payments
to be made after the liquidation of the Company's assets.
The receiver's duties cover the preparation of the individual and
general reports. However, Infobae did not reveal whether the
court has set the deadlines for the submission of these reports.
CONTACT: Miguel Adolfo Kupchik
Alsina 1360
Buenos Aires
EDUCATIVA PALERMO: Court Orders Bankruptcy
------------------------------------------
Argentine educational establishment Educativa Palermo S.R.L.
entered bankruptcy after the city's Court No. 22, under Dr. Braga
approved a bankruptcy petition filed by its creditor for
nonpayment of debt.
The credit verification process has begun and will end on
December 26 this year. The Company's receiver, Ms. Alejandra
Giacomini, will validate proofs of claim and prepare the
necessary reports.
Clerk No. 44, Dr. Julianelli, assists the court on the case,
which is expected to close with the liquidation of the Company's
assets to reimburse its creditors.
CONTACT: Educativa Palermo S.R.L.
6th Floor, Room 54
Bartolome Mitre 1371
Buenos Aires
GEOR: Enters Bankruptcy on Court Orders
---------------------------------------
Buenos Aires Court No. 21 declared Geor S.A. "Quiebra", reports
Argentine news source Infobae. The Company will undergo the
bankruptcy process with Mr. Hector Juan Kaiser as receiver.
The credit verification period closes on March 2 next year.
Creditors must present their proofs of claim to the receiver for
authentication before the date. This part of the bankruptcy
process determines the nature and amount of the Company's debts.
The individual reports on the results of the verification process
is due for submission on April 13 next year. The general report,
on the other hand, comes due on May 26, 2004. The Company's
assets will then be liquidated to pay off its creditors.
CONTACT: Geor S.A.
Migueletes 1234
Buenos Aires
Hector Juan Kaiser
Montevideo 666
Buenos Aires
GRUPO GALICIA: Reports Lower Net Loss in the 3Q03
-------------------------------------------------
Argentine financial services company, Grupo Financiero Galicia
posted Tuesday a ARS68.2-million net loss for the third quarter
of the year, down from a ARS339.3-million net loss in the same
year-ago quarter.
The Company said the net loss represents a loss per share of
ARS0.062, compared with a net loss per share of ARS0.987 in the
third quarter of 2002. Net loss per American depository receipt
was ARS0.62, compared with ARS9.87 a year earlier.
Administrative expenses during the third quarter of this year
dropped to ARS155.3 million from ARS213.5 million in the third
quarter of 2002 due to the Company's cost-cutting campaign.
Net "other" income registered a loss of ARS169.7 million for the
latest quarter, having been a positive ARS196.7 million in the
third quarter 2002 and a gain of ARS91.8 million in the second
quarter of 2003.
The Company said its results include a loss of ARS61 million from
Banco Galicia, in which it holds a 93.58% stake. Banco Galicia
suffered from a run on deposits in the banking system in late
2001.
Most Argentine banks suffered massive losses in 2002 and after a
sharp currency devaluation that followed four years of recession.
CONTACT: 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
OBRAS Y MATERIALES: Court Assigns Receiver For Bankruptcy Process
-----------------------------------------------------------------
Mr. Baldomero Gonzales, a Buenos Aires-based accountant, was
appointed receiver for the bankruptcy process of local company
Obras y Materiales S.A. is undergoing. A report by Infobae
reveals that the credit verification process will close on
February 25 next year.
Buenos Aires Court No. 18 handles the Company's case with
assistance from Clerk No. 36, Infobae adds. However, the source
did not mention whether the court has set the deadlines for the
filing of the individual and general reports.
CONTACT: Obras y Materiales S.A.
Ave Nazca 432
Buenos Aires
Baldomero Gonzalez
Ave de Mayo 1260
Buenos Aires
PUB: Court Approves Creditor's Bankruptcy Petition
--------------------------------------------------
Judge Ottolenghi of Buenos Aires Court No. 4 approved a petition
for the bankruptcy of local company Pub S.A., relates Argentine
newspaper La Nacion. The Company's creditor, Publicidad Sarmiento
S.A., filed the bankruptcy petition on grounds of the Company's
failure to meet its financial obligations.
The court assigned Mr. Omar Lares, a local accountant, as
receiver for the process. He will validate creditors' claims
until December 30 this year, after which he will be preparing the
individual reports. The receiver must also prepare a general
report on the case. However, La Nacion did not mention the
deadlines for the filing of the receiver's reports.
Dr. Juarez, the city's Clerk No. 7, assists the court on the
case.
CONTACT: Pub S.A.
Arcos 2093
Buenos Aires
Omar Lares
La Pampa 2669
Buenos Aires
RANUCCI: Credit Verifications in Bankruptcy Process End Today
-------------------------------------------------------------
Today is the last day for credit verifications in connection with
the bankruptcy of Argentine company Compania de servicios navales
Ranucci S.R.L., the Troubled Company Reporter - Latin America
earlier said.
The Company's receiver, Mr. Miguel Anghel Loustau, will start
preparing the individual reports on the results of the
verification. These reports are due at the court on February 5
next year.
The receiver is also obligated to prepare a general report after
the individual reports are processed at court. This report, which
contains a pr‚cis of the information in the individual reports,
must be turned over the to the court by March 18, 2004.
Buenos Aires Court No. 7 handles the Company's case with
assistance from Clerk No. 14.
CONTACT: Compania de Servicios Navales Ranucci S.R.L.
Ave. Pedro de Mendoza 1363
Buenos Aires
SANCAYET: To Undergo Reorganization
-----------------------------------
Sancayet S.A., which is based in Buenos Aires, will undergo
reorganization. Infobae related that the Company was undergoing
bankruptcy, but Court No. 24 ordered it to reorganize instead.
The receiver, Ernesto Carlos Borzone will check creditors' claims
until next February 3. The individual reports, which are prepared
after the verifications are closed, are due March 3 next year.
The general report should follow April 5.
In the meantime, the court, which works with Clerk No. 47 on the
case, has not set the date for the informative assembly.
CONTACT: Sancayet S.A.
Uruguay 385
Buenos Aires
Ernesto Carlos Borzone
Cuenca 1464
Buenos Aires
TELECOM ARGENTINA: Looks To Present New Debt Offer Within 2 Weeks
-----------------------------------------------------------------
Telecom Argentina executives revealed that the Argentine fixed-
line provider is likely to present a new debt restructuring offer
to creditors within two weeks.
Telecom, which has about US$3 million in debts, issued a
preliminary proposal in May but has struggled to come to an
agreement with bondholders.
CEO Carlos Felices said earlier that the Company will likely seek
an acuerdo preventivo extrajudicial, or APE, an out-of-court
settlement agreement in which two-thirds approval from creditors
will allow the company to secure legal approval for the deal.
CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
Alicia Moreau de Justo 50, 10th Floor
Capital Federal (1107) Repoblica Argentina
Phone: +54 11 4968 4000
Home Page: http://www.telecom.com.ar
Contacts:
Alberto J. Ricciardi, Chief Financial Officer
Elvira Lazzati, Finance Director
Pedro Insussarry, Investor Relations Manager
Phone: (5411) 4968-3626/3627
Fax: (5411) 4313-5842/3109
Email: inversores@intersrv.telecom.com.ar
=============
B E R M U D A
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FOSTER WHEELER: Wins Waste Recycling Contract in South Africa
-------------------------------------------------------------
Foster Wheeler Ltd. announced that its subsidiary, Foster Wheeler
South Africa (Pty) Limited, has been awarded a $45 million
engineering, procurement and construction management (EPCm)
contract by Sasol Synfuels (Pty) Limited (Sasol) for a new waste
recycling facility at Sasol's Secunda operations, South Africa.
This waste recycling facility, with a total investment value of
500 million rand ($75 million), will be the first of its kind in
Africa and is the culmination of several years of close
collaboration between Foster Wheeler and Sasol.
The new waste recycling facility will treat the waste from the
largest coal-to-liquids plant in the world.
Mark Meyer, managing director of Foster Wheeler South Africa,
commented, "This exciting and innovative project is the result of
close collaboration and positive synergy between Sasol and Foster
Wheeler. This waste management concept is new to South Africa and
this project can become a model for environmentally safe
operations for other industries throughout the country."
In 1997, Foster Wheeler worked with Sasol to deliver a successful
waste minimization study, which achieved up to 80% reduction in
some of the waste streams of the Secunda facility. Foster Wheeler
then developed with Sasol this innovative solution to managing
the remaining waste, completing a conceptual/feasibility study,
basic engineering project and a water treatment study.
The EPCm contract follows this successful collaboration. The
waste recycling facility comprises a wastewater treatment plant,
a bioremediation center and a solidification plant to recycle and
reuse materials emanating from Secunda's waste streams. What
cannot be reasonably reused will be bio-remediated or solidified
to render it environmentally safe. Some of these materials can
then be recycled as fertilizers, fill material, landfill cover
and road base. The waste treatment facility will be operational
by the end of 2004.
The booking was included in the third-quarter results.
Foster Wheeler Ltd. is a global company offering a broad range of
design engineering, construction, manufacturing, project
development and management, research and plant operation
services. Foster Wheeler serves the refining, oil and gas,
petrochemical, chemicals, power, pharmaceutical, biotechnology
and healthcare industries. Foster Wheeler Ltd. is based in
Hamilton, Bermuda, and its operational headquarters are in
Clinton, New Jersey. For more information about Foster Wheeler
Ltd. and its affiliates, visit its Web site at www.fwc.com.
CONTACT: FOSTER WHEELER LTD.
Media: Richard Tauberman, 908-730-4444
Other Inquiries: 908-730-4000
LORAL SPACE: Intelsat Expects To Close Purchase By Year-End
-----------------------------------------------------------
Intelsat, Ltd. announced Tuesday that the time for appealing the
bankruptcy court's order approving the company's pending purchase
of the North American satellite assets of Loral Space &
Communications Corporation has expired and that no appeal was
taken. This milestone sets the stage for an expedited closing of
the transaction as early as year-end.
Following closing of the transaction, the assets to be acquired
would significantly enhance Intelsat's geographic coverage and
its presence in the broadcast video market. Upon consummation of
the transaction, the Loral assets, including four satellites in
orbit and one satellite under construction that is expected to
launch in mid-2004, will give Intelsat full coverage of North
America and 50-state coverage of the United States. The new
satellites and orbital locations will complement Intelsat's
existing global, end-to-end network, which includes 23
satellites, leased capacity on two additional satellites, five
commercial teleports, strategic points of presence and fiber
connections. As part of the agreement, Intelsat will acquire
contracts with Loral customers in the cable television,
broadcasting and private data networking segments.
One condition to the closing of the transaction is the receipt of
U.S. Federal Communications Commission approval of the transfer
of Loral's FCC licenses to Intelsat. Intelsat has requested
expedited treatment from the FCC, and believes that it may be
able to close the transaction as early as year-end.
"The Loral asset purchase validates our commitment to enhancing
our geographic coverage and further diversifying our revenue
stream, and it's a clear indication of our belief that a
consolidating satellite services marketplace is going to be led
by those that can provide their customers with end-to-end
connectivity on a global basis," said Conny Kullman, chief
executive officer of Intelsat. "With the final hurdle in the
bankruptcy court process cleared, we are now able to move forward
on concluding this important transaction on an expedited basis.
We are eagerly anticipating the expansion of Intelsat's access to
the North American market and are looking forward to providing
Loral's customers with a smooth and efficient transition."
The purchase price for the assets may be up to $1.1 billion but
is subject to a number of price adjustments that will affect the
final cash payment to Loral. Specifically, Intelsat will receive
a purchase price reduction for any net insurance proceeds
received by Loral as a result of the $141 million claim filed by
Loral for the loss of the Telstar 4 satellite. In addition, the
purchase price may be adjusted downward based upon certain
revenue and backlog-related performance thresholds, as set forth
in the asset purchase agreement. The closing of the Loral
transaction remains subject to the satisfaction of other
conditions that are expected to be met within the same timeframe
as the pending FCC approval.
About Intelsat
Intelsat, Ltd. offers telephony, corporate network, video and
Internet solutions around the globe via capacity on 25
geosynchronous satellites in prime orbital locations. Customers
in approximately 200 countries rely on Intelsat satellites and
ground resources for quality connections, global reach and
reliability. For more information, visit www.intelsat.com.
LORAL SPACE: Loral Skynet Initiates Telstar 13 Service
------------------------------------------------------
Loral Skynet announced that Telstar 13 has successfully completed
its in-orbit testing and is in operation at its 121 degrees West
longitude orbital slot. Pending regulatory approval, Loral has
agreed to sell Telstar 13, along with four other North American
telecommunications satellites to Intelsat, Ltd., Hamilton,
Bermuda.
On August 8, 2003, Telstar 13 was launched from the Odyssey
Launch Platform, positioned on the Equator in the Pacific Ocean,
on a Sea Launch Zenit-3SL rocket. In a unique satellite sharing
arrangement, EchoStar Communications Corporation, Littleton,
Colo., operates the Ku- and Ka-band payloads on the satellite as
EchoStar IX; Loral Skynet owns and operates the C-band payload as
Telstar 13.
Telstar 13's 24 C-band FSS transponders operating at 36 MHz will
provide Skynet's cable programming customers with coverage
throughout North America, including Alaska, Hawaii and Puerto
Rico. Skynet's current satellite serving cable programmers,
Telstar 7, is operating nearby at 129 degrees West longitude.
Together the satellites form a very attractive platform to cable
programmers looking for the benefits of a strong neighborhood and
restoration solutions.
A pioneer in the satellite industry, Loral Skynet continues to
deliver the superior service quality and range of satellite
solutions that have made it an industry leader for more than 40
years. With its fleet of satellites and its established hybrid
VSAT/fiber global network infrastructure, Skynet offers a unique,
single source for all broadcast, data network, Internet access
and IP needs. Headquartered in Bedminster, New Jersey, Skynet is
dedicated to providing secure, high-quality connectivity and
communications. For more information, visit www.loralskynet.com.
In addition to being the parent company of Loral Skynet, Loral
Space & Communications (OTCBB: LRLSQ) is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications through its Space
Systems/Loral subsidiary. For more information, visit
www.loral.com.
PRESS CONTACT: Amy Trowbridge
(908) 470-2495
atrowbridge@loralskynet.com
INVESTOR CONTACT: John McCarthy
(212) 338-5345
===========
B R A Z I L
===========
BNB: S&P Revises Outlook To Stable from Negative
------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it revised
its outlook on the long-term rating on Banco do Nordeste do
Brasil S.A. (BNB) to stable from negative to reflect its outlook
on the Federative Republic of Brazil.
At the same time, Standard & Poor's said it affirmed its 'B+'
long-term foreign, 'BB' long-term local, and 'B' short-term
currency credit ratings on BNB.
"BNB's rating and outlook are also supported by Brazil's
ownership," said Credit Analyst Helena Ms. Hessel. "The
government holds 91% of the bank's voting shares, and is involved
in management of its operations," she concluded.
ANALYST: Helena Hessel
New York
Phone: (1) 212-438-7349
Daniel Araujo
Sao Paulo
Phone: (55) 11-5501-8939
BNDES: S&P Revises Outlook To Stable from Negative
--------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it revised
its outlook on the long-term rating on Banco Nacional de
Desenvolvimento Economico e Social (BNDES) to stable from
negative to reflect its outlook on the Federative Republic of
Brazil.
At the same time, Standard & Poor's affirmed its 'B+' long-term
foreign and 'BB' long-term local currency credit ratings on
BNDES.
"The ratings and outlook on BNDES are supported by the
demonstrated support of the government of Brazil, underpinned by
its direct ownership of 100% of BNDES' share capital," said
Credit Analyst Helena Hessel.
"Although there is no timely government guarantee on BNDES'
obligations, strong sovereign support is evidenced by government
funding and capitalization policies-including periodic capital
increases and stable, constitutionally mandated funding," she
added.
ANALYST: Helena Hessel
New York
Phone: (1) 212-438-7349
Daniel Araujo
Sao Paulo
Phone: (55) 11-5501-8939
BRAZILIAN BANKS: President Authorizes Privatization
---------------------------------------------------
Brazilian President Luiz Inacio Lula da Silva has given approval
to the privatization of four small regional banks administered by
the federal government, reports EFE.
These institutions had belonged to the regional governments of
Santa Catarina, Maranhao, Piaui and Ceara, but were taken over by
the federal government because of their financial problems.
The first to be privatized is the bank located in the northern
state of Maranhao. According to the report, the Central Bank has
scheduled an auction in January 2004 for the sale of the small
regional bank and has published in the country's official gazette
an invitation for bids on the bank.
The invitation said that the government will sell a 99.9% stake
in the regional bank - which has 76 branches and 523 employees in
the Amazonian state of Maranhao - at a public auction on the Sao
Paulo Stock Exchange.
The Central Bank said the minimum bid price would be announced at
a later date, but that participants in the auction must
demonstrate an ability to invest up to BRL85.8 million
(approximately $29.8 million).
Both foreign and Brazilian institutions have until Nov. 28 to
submit their offers.
Privatizations had been suspended in Brazil since Lula took
office in January. As a member of the opposition, the president
regularly opposed the sale of state-owned businesses under his
predecessors, especially Fernando Henrique Cardoso, who was
president from 1995-2002. Nevertheless, the former union leader
and head of the left-wing Workers' Party authorized the sale of
the four banks.
CEMAR: Only One Bidder Merits Prequalification
----------------------------------------------
The deadline for the submission of proposals for Cemar is fast
approaching, and so far, only one company has pre-qualified to
bid for the bankrupt Maranhao state power distributor, says
Business News Americas.
Brazil's power sector regulator Aneel said local firm SVM
Participacoes e Empreendimentos, controlled by local fund GP
Capital, is the only company that has made it to the pre-
qualification round. U.S.-based MT Baker Enterprise LLC sent
documentation, but according to Aneel, its proposal did not meet
the financial, judicial and tax requirements set up for Cemar's
auction.
Proposals for Cemar must be submitted by December 1.
Earlier, Brazil's federal electricity holding Centrais Eletricas
Brasileiras (Eletrobras) indicated that it could become a
shareholder in Cemar by converting part of its debt into stock in
an attempt to make Cemar more attractive. Eletrobras is Cemar's
biggest creditor.
Aneel is taking another crack at selling the bankrupt power
distributor, a unit of U.S.-based PPL Corp. (PPL). Saddled with
more than BRL800 million in debt, Cemar came under Aneel's
administration after filing the Brazilian equivalent of Chapter
11 bankruptcy in August last year.
At the time, Cemar failed to renegotiate its debt with creditors.
PPL wrote off its US$317 million investment in Brazil, but
officially still holds Cemar's concession license.
Since earlier this year, when Cemar went on the auction block for
the first time, potential investors have been calling for the
pardon of about 40% of Cemar's debt, most of which is owed to
Eletrobras, and its northeastern generating unit Eletronorte. The
remaining 60% would be rescheduled in medium-to-long-term
payments.
CONTACT: COMPANHIA ENERGETICA DO MARANHAO
Av. Colares Moreira, 477
65075-441 - Sao Luiz- MA
PHONE: (98) 217-2119
FAX: (98) 235-3024
WEBSITE: http://www.cemar.com.br/
CREDITORS: CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
Avenida Presidente Vargas 409, 13 Andar
20071-003 Rio de Janeiro Brazil
Phone: (21) 2514-5151
Fax: +55-21-2242-2697
Home Page: http://www.eletrobras.gov.br
Contacts:
Cladio da Silva avila, President
Jose Alexandre Nogueira de Resende, Director of
Financial and Market Relations
Investor Relations Division
Phone: (0XX21) 2514-6207 / 2514-6333
Av. Presidente Vargas, 409 - 9 andar
20071-003 - Rio de Janeiro - RJ
Email: arlindo@eletrobras.gov.br
CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
Av. Presidente Vargas, 489 -13 andar.
20071-003- Rio do Janeiro RJ
Phone: + (55+61) 429 5139
Fax: +(55+61) 328 1373
E-mail: elnweb@eln.gov.br
Home Page: http://www.eln.gov.br/
Contact:
Mr. Arlindo Soares Castanheira, Investor Relations
Phone: 55 21 2514.6331
55 21 2514.6333
Fax: 55 21 2242.2694
E-mail: arlindo@eletrobras.gov.br
EMBRATEL: Reaches One-year Service Anniversary
----------------------------------------------
In November Embratel will be celebrating the first anniversary of
its entrance in the Local Telephone market. The company has been
operating successfully in 74 cities all over Brazil through
VipLine, the service that connects the customers' PABX to its
digital switch. Until October Embratel's Local Telephone service
had gained 1,370 customers including major companies like
Philips, Fiat Group and Visa do Brasil.
The key benefit of adopting Embratel's Local Telephone service is
being served by a carrier that offers not only local, long
distance domestic (DDD) and international (IDD) telephone calls,
but also a complete portfolio of services for internet and data
transmission with the quality and trust of Embratel's name.
Customers of VipLine can make significant savings on their phone
call expenses and may choose among different plans and
progressive discounts. Furthermore, VipLine offers a lot of
additional advantages, including a modern system of rating per
minute (not pulse) whose main edges are transparency and the
identification of all billed items; and a CD-ROM invoice which
enables customers to generate complete reports of all local
calls, making the company's cost control easier and more
organized.
Embratel put forth a lot of effort to compete for the Local
Telephone service with other carriers, especially when it moved
ahead the deadline of its 2003 universalization goals established
by Agˆncia Nacional de Telecomunica‡oes (Anatel). After laborious
negotiations for interconnecting its network with the ones of the
local concessionaries, Embratel launched VipLine focused on the
corporate market in its Fortaleza and Recife main offices. Next
came Salvador, Belo Horizonte, Rio de Janeiro, Curitiba,
Bras¡lia, Bel‚m, Sao Paulo and five more capitals. The 74 cities
are responsible today for 51% of Brazil's Gross Domestic Product.
This year, Embratel intends to offer Local Telephone service to
22 more cities: Macap (AP); Campinas, Ribeirao Preto, Santos,
Sao Jos‚ do Rio Preto, Sao Jos‚ dos Campos and Sorocaba (SP);
Campos dos Goytacazes and Volta Redonda (RJ); Bento Gon‡alves and
Caxias do Sul (RS); Cascavel, Foz do Igua‡u, Londrina, Maring
and Ponta Grossa (PR); Feira de Santana and Vit¢ria da Conquista
(BA); Joinville (SC); and Juiz de Fora, Montes Claros and
Uberlƒndia (MG). By the second half of 2004 all the cities
located in the Brazilian major urban areas are expected to be
provided with VipLine service.
The director of Embratel Local Services, Roberto Duraes, trusts
the service performance and is certain that his unit will attain
the goals set for 2003. "In 2004 we will expand our service
coverage and our market share in the corporate market, and raise
the offer of individual telephone lines to meet the requirements
of small-sized businesses, offices, doctors'offices and
residences. We are motivated by the challenge of the second year
of Local Telephone service and ready to enter new markets", he
points out..
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
NET SERVICOS: Summary of 3Q03 Financial Results
-----------------------------------------------
Net Servicos de Comunicacao S.A., the largest Pay-TV multi-
service operator in Latin America, an important provider of bi-
directional broadband Internet access (Virtua) and multimedia and
data communication services for corporate networks, announced
Tuesday its earnings results for the third quarter of 2003
(3Q03).
-- Net revenues totaled US$110.0 million an increase of 9.8%
compared to US$100.1 million presented in 2Q03. This growth is
due to the concentration of monthly fee readjustments in the
months of June and September and the increase in broadband
subscribers base.
-- EBITDA in the quarter totaled US$28.6 million, 17.8% higher
than the result of US$24.2 million registered in 2Q03, mainly as
a consequence of higher net revenues, lower general and
administrative expenses and lower costs related to Virtua's link.
-- Operating Income (EBIT) maintained its growth trend and
reached US$ 8.4 million in 3Q03, a 5.8% increase compared to US$
8.0 million recorded in the previous quarter.
-- Net Debt reached US$293.6 million in the end of the quarter,
5.7% below 2Q03's net debt of US$311.4 million.
-- Net Loss was US$25.1 million (US$0.01 per ADS). Operating
performance and EBIT improved during the quarter, however, the
financial result - excluding the positive impact of the exchange
variation presented in the previous quarter - was the main reason
for this loss. In the year, total net loss was US$16.7 million, a
significant improvement when compared to the loss of US$622.6
million in the first nine months of 2002.
-- Pay-TV ARPU (Total gross revenues excluding sign-on and hook-
up revenues divided by the average number of active subscribers)
increased 8.5% reaching US$31.50 in 3Q03 from US$29.02 in the
previous quarter, as a consequence of readjustments in the
monthly fees.
=========
C H I L E
=========
ENDESA CHILE: Production Of Electricity Grows 5.23%
---------------------------------------------------
The operational performance of the generating facilities of
Endesa in Latin America is showing clear signs of recovery. The
gross energy generated in the region by the plants run by Endesa,
through its subsidiary Endesa Chile, between January and October
of this year, was 35,920 GWh, an increase of 5.23% over the same
period of 2002.
Currently, Endesa Chile's installed power of the companies in
Latin America amounts to 13,730 MW, distributed as follows:
Country Installed Power (in MWs)
Chile 4.568
Colombia 2.586
Brasil 658
Argentina 4.445
Peru 1.473
TOTAL 13.730
The increase in the energy generated during the first ten months
of this year is explained principally by the high level of
dispatch from the hydroelectricity plants in the region due to
the abundant water supplies and to the increase in demand from
the thermal plants in Argentina.
Chile continues to be the country that most contributes towards
the total of 35,920 GWh generated during the January - October
period of 2003 with a contribution of 39%, followed by Colombia
(25%) and Argentina (20%). The gross generated production has
shown the following evolution up to October:
ELECTRICITY PRODUCTION JANUARY - OCTOBER 2003
COUNTRY PRODUCTION VARIATION
Argentina 6.962 + 19,5%
Brasil 2.438 + 17,2%
Peru 3.752 + 7,6%
Chile (1) 13.807 + 1,1%
Colombia (2) 8.960 - 1,3%
TOTAL 35.919 + 5,23%
(1) The sale of the Canutillar Hydroelectricity Plant (172 MW)
explains the decrease in the comparative growth registered in
Chile.
(2) The decrease in Colombia is explained by the partial closure
of the Casalaco chain of plants.
The installed power of the Endesa companies in Latin America will
grow in the last quarter of this period as a result of the
forthcoming startup of the Endesa Fortaleza thermal plant in
Brazil that will have an installed capacity of 310 MW and will
contribute 2,200 GWh per annum.
===============
C O L O M B I A
===============
VALORES BAVARIA: Will Simplify Operations By Splitting Holdings
---------------------------------------------------------------
Colombian conglomerate Valores Bavaria, controlled by magnate
Julio Mario Santo Domingo, said it will simplify its operations
by splitting its holdings into six subsidiaries, relates Reuters.
Valores Bavaria owns 50% of airline Avianca, 25% of
telecommunications firm Orbitel, together with stakes in
newspaper El Espectador, Caracol Television and cable television
firm TV Cable.
The six new subsidiaries with assets of about $1.1 billion will
be divided up according to industry sectors.
Up until now, Valores Bavaria's holdings have been divided among
four divisions, which have shared control of affiliates.
Traders in Bogota see the reorganization as the conglomerate's
way of expediting the sale of loss-making airline Avianca. Up
until now, control of Avianca, had been divided among Valores
Bavaria's four old divisions.
Last month, Valores Bavaria posted a nine-month loss of COP106
billion (US$37 million), down from a loss of COP182 billion from
January to September last year. Its results suffered during
several years of sluggish economic growth in Colombia. The group
has sold off interests in insurance, banking and cellular phones.
The other five new companies will be known as PrimeIndu Ltda,
PrimeTel Ltda, PrimeMedia Ltda, PrimeValueService Ltda and
PrimeOther Ltda.
=============
J A M A I C A
=============
JUTC: Has Resumed Normal Services Since Saturday's Protest
----------------------------------------------------------
Beleaguered Jamaica Urban Transit Company resumed normal services
recently, after a workers' protest left commuters in the
corporate area stranded for several hours. RadioJamaica reported
that the strike began at 1 p.m. last Saturday.
A confrontation between one of JUTC's drivers and a policeman
triggered the protest, the report adds. Commanding Officer of the
Central Kingston Police Division, Superintendent Carlton Wilson
said that police personnel were conducting an operation in North
Parade when a JUTC bus entered the lay-by. The driver reportedly
ignored the policeman's request to search a man in the middle of
the road, but continued to blow his horn. Employees claim that
the policeman beat the driver up.
Local reports did not mention how much loss the protest caused
the cash-strapped Company.
===========
M E X I C O
===========
BURLINGTON INDUSTRIES: WL Ross & Co. LLC Completes Acquisition
--------------------------------------------------------------
WL Ross & Co. LLC announced Tuesday that it had completed the
purchase of Burlington Industries previously approved by U.S.
Bankruptcy Judge Newsome, and the simultaneous sale of Lees
Carpets to Mohawk Industries, Inc. CIT Business Credit, Inc. has
provided the new company with an $85 million asset based line of
credit to provide Burlington with the letters of credit and
working capital it needs.
Wilbur L. Ross, Chairman of both WL Ross & Co. LLC, and now of
Burlington, said, "Burlington's debt burden has been reduced from
$800 million at the time it filed bankruptcy to $85 million.
Therefore the Burlington employees who have remained loyal during
the bankruptcy to the new company no longer have to worry about
the solvency of their employer. Under the new CEO, Joe Gorga,
Burlington will combine its strong financial base with the 85th
best known brand in the world, technology, and efficient
operations to become a consolidator of the industry. The only
other ingredient we need is a sensible future trade policy on the
part of the Bush Administration and we have every expectation
that this will be forthcoming."
WL Ross & Co. LLC sponsors global private equity and hedge fund
investments on behalf of major institutional investors and has
committed more than $2 billion of equity since its founding in
April, 2000.
With operations in the United States, Mexico and India and a
global manufacturing and product development network based in
Hong Kong, Burlington Industries is one of the world's most
diversified marketers and manufacturers of softgoods for apparel
and interior furnishings.
=====================
P U E R T O R I C O
=====================
DORAL FINANCIAL: Addresses Concerns on Mortgage Production Drop
---------------------------------------------------------------
Mr. Salomon Levis, Chairman of the Board and Chief Executive
Officer of Doral Financial Corporation (NYSE: DRL), stated that
contrary to recent announcements by several large U.S. mortgage
lenders, the Company was not experiencing a drop in mortgage
production.
The demand in Puerto Rico for new housing loans and for refinance
loans for debt consolidation remained strong. Mortgage loan
applications and production for October and the beginning of
November were strong. Mr. Levis stated that he anticipated that
mortgage production for the fourth quarter of 2003 would once
again surpass prior record levels.
CONTACT: Doral Financial Corporation
Richard F. Bonini
Phone: 212/329-3728
Mario S. Levis
Phone: 787/474-6709
***********
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
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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