/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031202.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, December 2, 2003, Vol. 4, Issue 238 Headlines A R G E N T I N A 059: Individual Reports Filing Deadline Today BANCO DE GALICIA: Yet To Receive Formal Notification of Plan DICAM: Bankruptcy's Credit Check Process Closes Today DON ANTE: Requests Court Permission to Reorganize ECOTEMPO: Submits "Concurso Preventivo" Petition to Court ENCASA: Court Approves Reorganization Petition ENGEBRAS ARGENTINA: Court Assigns Receiver for Bankruptcy GRAFICA MARINO: Court Orders Bankruptcy INDUSTRIAS PLASTICAS: Enters Bankruptcy INSTUTO CAIP: Verifications End Next March 1 JEANVAC: Individual Reports Due Today LAS RUEDAS: Individual Reports Filing Deadline Expires Today MANDATARIA DE SALUD: Bankruptcy Process Starts MOLFINO HERMANOS: Saputo Completes Acquisition SERVINTSA: Last Day for Individual Reports Filing SINTELAR: Receiver Closes Credit Check in Bankruptcy Today TALLERES METALURGICOS: Court Orders Bankruptcy B R A Z I L AHOLD: Fitch Affirms Ratings; Moves Off Rating Watch Negative GERDAU: Shareholders Approve Restructuring of Operations VICUNHA TEXTIL: Issues $30M Abroad To Reduce Debt C H I L E AES GENER: Exec Issues Comments on Grid Links GASATACAMA: Looks To Complete $250 Debt Restructuring Early 2004 C O L O M B I A AVIANCA: Yet To See A Solution To Labor Conflict * Colombia Announces Results of Exchange Offer E C U A D O R ANDINATEL/PACIFICTEL: Say Awarding of Cuenca License "Illegal" PETROECUADOR: Attorney General Approves Insurance Contracts J A M A I C A JUTC: Protest Action May Hamper Retroactive Payments M E X I C O CFE: Bidder Seeks Plant Relocation CORPORACION DURANGO: Debt Accord To Come Soon, Says President HYLSA: Planned Bond Issue Gets CCC(mex) Rating from Fitch NII HOLDINGS: Spectrum Auction Delay Won't Derail Nextel's Plan U R U G U A Y BANQUE SUDAMERIS: Parent Accepts Binding Offer From Agricole V E N E Z U E L A SIDOR: Has Had Good 2003, Says Chairman - - - - - - - - ================= A R G E N T I N A ================= 059: Individual Reports Filing Deadline Today --------------------------------------------- The individual reports for the bankruptcy of Argentine company 059 S.R.L. are due for filing today, as detailed earlier by the Troubled Company Reporter - Latin America. The receiver, Mr. Carlos Alberto Vicente, prepared the reports shortly after the credit verification process was completed earlier this year. After the individual reports are processed at court, the receiver will prepare a general report, which must be filed on February 18 next year. This report will include the receiver's comments on the factors that contributed to the Company's bankruptcy. The Company's assets will then be liquidated to pay its debts. CONTACT: Carlos Alberto Vicente Ave. Corrientes Buenos Aires BANCO DE GALICIA: Yet To Receive Formal Notification of Plan ------------------------------------------------------------ Argentina's Economy Ministry has yet to formally inform Banco de Galicia y Buenos Aires that it is allowing it to start clearing more than ARS4 billion in outstanding discount loans from the central bank. Dow Jones relates that the Economy Ministry made an announcement Thursday saying that a joint Economy Ministry-Central Bank agency known as the Financial System Restructuring Unit has moved the bank closer to joining in a matching program. This program will allow Banco de Galicia to use income from its government debt holdings to repay discount loans from the central bank over a period of 120 months. The government's decision also appears to signal approval of Banco de Galicia's preliminary accord to restructure about US$1.4 billion in defaulted foreign debt. The central bank will need to give the debt proposal separate approval. Banco de Galicia, which is the main unit of financial holding company Grupo Financiero Galicia (GGAL), lost ARS4 billion in deposits during the economic crisis of 2001 and 2002. To resolve its liquidity problem, the bank had to take on discount loans from the central bank. However, it has been unable to repay these loans because its operations are still struggling with enormous amounts of losses. DICAM: Bankruptcy's Credit Check Process Closes Today ----------------------------------------------------- The credit verification period for bankrupt Dicam S.A., which is based in Buenos Aires, ends today. The Company's receiver, local accountant, Mr. Claudio Jorge Haimovici will prepare the individual reports which are due on February 23 next year. The Troubled Company Reporter - Latin America earlier revealed that the Company was declared bankrupt by the city's Court No. 2. Clerk No. 3 aids the court on the case. The receiver will prepare a general report after the individual reports are processed at court. This report is to be filed on April 7, 2004. The Company's assets will be liquidated at the end of the process to pay off creditors. CONTACT: Claudio Jorge Haimovici Sarmiento 3843 Buenos Aires DON ANTE: Requests Court Permission to Reorganize ------------------------------------------------ Don Ante S.A., which is based in Buenos Aires, is seeking court permission to undergo reorganization. A report by Argentine news portal Infobae indicates that the Company has failed to make debt payments. A motion for "Concurso Preventivo" was filed at the city's Court No. 23, which is under Judge Villanueva. Clerk No. 45, Dr. Robledo, assists the court on the case. CONTACT: Don Ante S.A. 8th Floor, Room A Tte Gral Juan Domingo Peron 1549 Buenos Aires ECOTEMPO: Submits "Concurso Preventivo" Petition to Court --------------------------------------------------------- Ecotempo S.R.L. submitted a motion for "Concurso Preventivo" at Buenos Aires Court No. 8, under Judge Gonzales. Dr. Saravia, the city's Clerk No. 16 assists the court handling the reorganization petition. The Company stopped debt payments on July 10 this year. CONTACT: Ecotempo S.R.L. Department 17 Valle 1350 Buenos Aires ENCASA: Court Approves Reorganization Petition ---------------------------------------------- Buenos Aires Court No. 1 approved a motion for "Concurso Preventivo" filed by Encasa S.A., granting the Company permission to undergo reorganization. Argentine news portal Infobae relates that Clerk No. 1 assists the court on the case. The Company's receiver, Mr. Tito Gargaglione, verifies creditors' claims until February 12 next year. This is done to determine the nature and amount of the Company's debts. The receiver is also required to prepare the individual and general reports on the reorganization. CONTACT: Encasa S.A. Uruguay 651 Buenos Aires Tito Gargaglione Medrano 833 Buenos Aires ENGEBRAS ARGENTINA: Court Assigns Receiver for Bankruptcy --------------------------------------------------------- Court No. 21 of Buenos Aires designated Ms. Isabel Ana Ramirez as receiver for the bankruptcy of local company Engebras Argentina S.A., according to local news source Infobae. Assisted by Clerk No. 42, the court instructed the receiver to verify creditors' claims until July 13 next year. The receiver is also instructed to complete the individual reports on September 14, and the general report on October 29. CONTACT: Isabel Ana Ramirez Presidente Peron 2082 Buenos Aires GRAFICA MARINO: Court Orders Bankruptcy --------------------------------------- Buenos Aires Court No. 13 declared Grafica Marino S.R.L. "Quiebra", reports Infobae. The ruling puts the Company under bankruptcy protection with Ms. Maria Alejandra Barbieri as receiver who will oversee the process. Credit verifications will be done until February 6 next year. This part of the bankruptcy process determines the nature and amount of the Company's debts. The receiver will prepare the individual and general reports, whose deadlines were not indicated in the Infobae report. CONTACT: Maria Alejandra Barbieri Ave Cabildo 2040 Buenos Aires INDUSTRIAS PLASTICAS: Enters Bankruptcy --------------------------------------- Buenos Aires Court No. 18 ordered the bankruptcy of local company Industrias Plasticas Metalurgicas Tesei S.R.L., relates La Nacion. The ruling comes in approval of a petition filed by the Company's creditor for nonpayment of debt. Mr. Nestor Iribe was assigned as the Company's receiver. He will authenticate credit claims until March 18 next year. The preparation of the individual and general reports is also part of the receiver's duties. Dr. Vivono, Clerk No. 36, assists the court on the case. CONTACT: Industrias Plasticas Metalurgicas Tesei S.R.L. 11th Floor, Room E Yerbal 163 Buenos Aires Nestor Iribe 6th Floor, Room F Ave Corrientes 1250 Buenos Aires INSTUTO CAIP: Verifications End Next March 1 -------------------------------------------- The credit verification period for the reorganization of Buenos Aires company Instituto Caip S.R.L. will end March 1 next year, relates Infobae. Creditors must present their proofs of claim to the Company's receiver, Ms. Maria Mercante before the deadline. The reorganization began after the city's Court No. 20 approved the Company's motion for "Concurso Preventivo". Clerk No. 40 assists the court on the case. CONTACT: Instituto Caip S.R.L. Gurruchaga 742 Buenos Aires Maria Mercante Uruguay 772 Buenos Aires JEANVAC: Individual Reports Due Today ------------------------------------- Buenos Aires accountant Gustavo Guillermo Vignale, receiver for local company Jean Vac S.R.L., must file the individual reports for the Company's bankruptcy today. The reports were prepared after the credit verifications were closed earlier this year. The court also requires the receiver to submit the general report to Buenos Aires Court No. 1 on March 1 next year, the Troubled Company Reporter - Latin America earlier revealed. This report must be prepared after the individual reports are processed at court. The court, which works with Clerk No. 10 on the case, will likely order the liquidation of the company's assets to reimburse creditors. CONTACT: Gustavo Guillermo Vignale Vuelta de Obligado 2717 Buenos Aires LAS RUEDAS: Individual Reports Filing Deadline Expires Today ------------------------------------------------------------ Mr. Jose Luis Rodas, the receiver for bankrupt Buenos Aires company Las Ruedas S.A., must file the individual reports at the court today, the Troubled Company Reporter - Latin America said earlier in a report. The city's Court No. 11, which handles the Company's case, ordered the receiver to prepare the general report after the individual reports are processed at court. This report must be filed on February 16 next year. Clerk No. 22 works with the court on the case. CONTACT: Jose Luis Rodas L N Alem 619 Buenos Aires MANDATARIA DE SALUD: Bankruptcy Process Starts ---------------------------------------------- Mandataria de Salud S.A., which is based in Buenos Aires, started its bankruptcy process with the verification of creditors' proofs of claim. The deadline for authentication is March 5, 2004, relates Infobae. Creditors must present their claims to the receiver, Mr. Mauricio Mudric, who will prepare the individual and general reports. The city's Court No. 2 chose the receiver for the process with assistance from Clerk No. 3. The Company's assets are to be liquidated at the close of the bankruptcy process to reimburse creditors. Payment distribution will be determined from the results of the verification process. CONTACT: Mandataria de Salud S.A. Senillosa 543 Buenos Aires Mauricio Mudric Tucuman 893 Buenos Aires MOLFINO HERMANOS: Saputo Completes Acquisition ---------------------------------------------- Saputo Inc. completed Friday the transaction announced on October 2, 2003 for the acquisition of 100% of Molfino Hermanos S.A. (Molfino), the third largest dairy processor in Argentina. The purchase price is US$50.8 million on a debt-free basis and is subject to certain post-closing adjustments. Molfino operates two plants and employs 850 people. The company has sales of approximately US$ 90 million. National sales represent approximately 60% of total sales, with the remaining 40% done through exports. The company produces a wide variety of soft, semi-soft, hard and grated cheeses, as well as butter, cream, milk powder, UHT milk and dulce de leche (caramelized milk). Its main brand names are La Paulina, Molfino, Ricrem and Taluhet. Molfino counts on a third-party distribution network of more than 200 distributors. Exports sales, mostly comprised of milk powder and cheeses, are conducted in more than 30 countries. By giving the Company the opportunity to establish itself in a market where the raw material is accessible at competitive international prices, this transaction is in line with Saputo's goal of becoming a world-class cheese company. About Saputo Every day, in the Company's 47 plants and its distribution centres, Saputo's 7,850 employees proudly manufacture, market and distribute a wide range of products that find their way daily on store shelves, in restaurants and in prepared meals. Active in the dairy and grocery product sectors, the Company markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Molfino and Vachon. A dynamic world-class company, Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America and Argentina. Saputo Inc. is a public company and its shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information. CONTACT: Claude Pinard, Vice President, Communications (514) 328-3381 SERVINTSA: Last Day for Individual Reports Filing ------------------------------------------------- The individual reports for the bankruptcy of Argentine company Servintsa S.A. are due for filing at Buenos Aires Court No. 25 today. These reports were prepared by the receiver, Mr. Victor Roberto Bellaria, after the credit verifications were completed earlier this year. The receiver will also prepare a general report after the individual reports are processed at court. This must be presented to the city's Court No. 25 on February 18 next year, an earlier report from the Troubled Company Reporter - Latin America indicated. CONTACT: Victor Roberto Bellaria Uruguay 660 Buenos Aires SINTELAR: Receiver Closes Credit Check in Bankruptcy Today ---------------------------------------------------------- Estudio Canapeti y Llovera, receiver for Argentine company Sintelar S.A., will close the credit verification period for the Company's bankruptcy process today, according to an earlier report by the Troubled Company Reporter - Latin America. Buenos Aires Court No. 3 issued the bankruptcy order earlier this year. Clerk No. 5 cooperates with the court on the case, which is set the close with the liquidation of the Company's assets after due process. The receiver will now start preparing the individual reports these to the court next February 17. The general report, which is prepared after the individual reports are processed at court, is due for filing March 30. CONTACT: Sintelar S.A. Villarino 2411 Buenos Aires Estudio Canapeti y Llovera 11 de Septiembre 1503 Buenos Aires TALLERES METALURGICOS: Court Orders Bankruptcy ---------------------------------------------- Talleres Metalurgicos El Suyuque S.A. entered bankruptcy on orders from Buenos Aires Court No. 1, reports Argentine news source Infobae. Clerk No. 2 cooperates with the court on handling the case, the source adds. The Company's receiver, Mr. Hector Gustavo Caferatta, will verify creditors' claims until February 19 next year. He will also prepare the required individual and general reports. Infobae, however, did not mention the filing deadlines for these reports. CONTACT: Hector Gustavo Caferatta Laprida 1898 Buenos Aires =========== B R A Z I L =========== AHOLD: Fitch Affirms Ratings; Moves Off Rating Watch Negative ------------------------------------------------------------- Fitch Ratings, the international rating agency, on Friday assigned Netherlands-based food retailer Koninklijke Ahold NV ("Ahold") a Stable Rating Outlook while removing it from Rating Watch Negative. At the same time, the agency has affirmed Ahold's Senior Unsecured rating at 'BB-' and its Short-term rating at 'B'. The Stable Outlook reflects the benefits from the shareholder approval, granted Wednesday, for a fully underwritten EUR3billion rights issue. Ahold however continues to face financial and operational difficulties, which have been reflected in the Q303 results. Ahold announced in early November its strategy for reducing debt through its EUR3bn rights issue and EUR2.5bn of asset disposals as well as improving the trading performance of its core retail and foodservice businesses. Whilst the approved rights issue addresses immediate liquidity concerns, operationally, the news is less positive with Ahold's core Dutch and US retail operations both suffering from increased competition, mainly from discounters, resulting in operating profit margin erosion. Ahold's European flagship operation, the Albert Heijn supermarket chain in the Netherlands, recently reported both declining sales and profits, as consumers turn to discount retailers. In reaction to this, Albert Heijn, has amended its pricing structure, which in turn would suggest that it will be more challenging in the future to match historic operating margin levels. The catalyst for the group's current predicament, US Foodservice, remains loss-making as a result of both the accounting restatements, as well as the substantial margin pressure due to suppliers reducing/removing vendor allowances. It is unlikely despite management assurances that losses will be stemmed in Q403. Ahold remains exposed to further liquidity constraints as a result of the potential EUR1.8bn put against it from its partners in the Scandinavian ICA joint venture. Its is important therefore in the view of Fitch that Ahold is able to realise material cash proceeds from its planned EUR2.5bn disposal programme in the coming year, gain headroom in funding facilities, and attain an investment grade profile by FYE05, in order to tap the capital markets for the significant bulk of the bond maturities in that year. To improve the profitability of its operations the group has announced its intention to 're-engineer' its retail and food service operations through joint purchasing, rationalisation and re-organisation. Fitch views these tasks as challenging. Fitch remains concerned as to the future cash generative abilities of the group's operations especially given Q303 figures. The group derives some benefit from the new proposed three-year bank financing. The new facility will benefit from security release of the share capital held by the banks Stop&Shop as well as Giant-Landover but only once an investment grade credit rating for Ahold has been maintained for six months. Currently, dividend restrictions imposed by secured lenders upon these profitable borrowing entities will prevent the up-streaming of dividends and thus continue to place holding company lenders, such as bondholders, at a distinct disadvantage. Immediate liquidity issues should be removed following the rights issue although the ICA EUR1.8bn put exercisable April 2004 will cause concern. Net debt as at Q303 amounted to EUR11bn. Although the rights issue is a positive step, concern has been heightened as to the underlying operating capabilities of the group, which the new management has now to address. CONTACT: Jonathan Pitkanen London Phone: + 44 (0)20 7417 4201 Giulio Lombardi London Phone: +44 (0)20 7417 6314 Media Relations: Alex Clelland Phone: +44 20 7417 4222 GERDAU: Shareholders Approve Restructuring of Operations -------------------------------------------------------- Brazilian long steel group Gerdau revealed Friday that it has obtained shareholders' permission to proceed with the restructuring of its local operations under its Acominas unit, which will be called Acominas Gerdau, relates Business News Americas. The restructuring is expected to bring Porto Alegre-based Gerdau savings of US$60 million over five years from operational synergies and tax benefits. As part of the restructuring, Gerdau will increase its stake in Acominas to 92% from 79% through the capitalization of assets. Gerdau Acominas will have its activities divided into three areas: long steel; extra long steel; and semi-finished products such as slabs, billets and ingots. In the meantime, shareholders also approved the absorption of Gerdau three units: Gerdau Participacoes, CEA Participacoes and Armafer Servicos de Construcao. VICUNHA TEXTIL: Issues $30M Abroad To Reduce Debt ------------------------------------------------- The Brazilian textiles company Vicunha Textil issued US$30 million overseas, to fall due within one year, as part of a euro medium term notes program of US$100 million, says Gazeta Mercantil. The operation was led by CSFB (Credit Suisse First Boston). According to the report, Vicunha will use the resources to reduce debts, which at the end of September, stood at BRL460 million. In an effort to reduce the liability, the Company borrowed BRL60 million from the Brazilian bank Banco do Nordeste, to mature within 8 years, besides another loan of BRL106 million that is being negotiated with the Brazilian development bank BNDES (Banco Nacional de Desenvolvimento Economico e Social). ========= C H I L E ========= AES GENER: Exec Issues Comments on Grid Links --------------------------------------------- An executive from Chilean electricity generation company AES Gener suggested it is better to interconnect Chile's SIC central grid with Argentina's SADI grid than link the central grid with Chile's SING northern grid, as proposed by GasAtacama Generacion, Electroandina and Edelnor -- three electricity generators in the SING grid. That kind of interconnection, according to Juan Ricardo Inostroza, regulation director of AES Gener, is only economically feasible when the operation requires a small price differential. Local news source Estrategia reports that the interconnection between southern Chile (SIC) and Argentina (SADI), at the cost of US$50 million, would require a differential of energy and capacity price of US$3.5/MWh while the interconnection of SIC and SING would require a price differential of US$11/MWh. Meanwhile, Inostroza is also calling for the governments to provide clearer rules and that there must exist stable political, economical and financial scenarios in order to enable the companies to interconnect the region. AES Gener is owned by US energy group AES Corp. GASATACAMA: Looks To Complete $250 Debt Restructuring Early 2004 ---------------------------------------------------------------- Chilean electricity generation company GasAtacama Generacion intending to complete a US$250-million debt restructuring process by the end of the first quarter of 2004, says Estrategia. The Company has negotiated a loan with the International Finance Corporation (IFC) and a group of banks. The proceeds will be used to pay off a US$200-million debt with shareholders and a US$75- million debt raised to finance expansion projects. GasAtacama is owned by Endesa Chile and US power company CMS Energy. =============== C O L O M B I A =============== AVIANCA: Yet To See A Solution To Labor Conflict ------------------------------------------------ Sunday's negotiations between representatives from Colombia's Avianca Airlines and the pilots labor union failed to see a solution to an ongoing labor dispute, reports EFE. Avianca wants to lay off some 350 airline workers, including almost 100 pilots, to cut costs. But Capt. Alberto Padilla, the president of Colombia's pilots union, said that aviators will not accept "a retirement plan (for pilots) in the condition that the company wants to present it." According to Padilla, until late Saturday night, the pilots had "accepted what the company had asked for and (Sunday) we get here and see they are changing the rules of the game. They want to ask for more things and we won't do that." The Social Welfare Ministry granted Avianca authorization to fire 350 employees, among them 98 pilots, but the airline originally had asked permission to suspend the contracts of more than 1,350 workers in an effort to consolidate expenses. Padilla said the airline "should not have made this demand because we've had an agreement since December that gave us (job) stability." Unions have been engaged since last Saturday in what the Company calls "Operation Turtle," whereby the pilots deliberately cause delays in flight schedules. Avianca President Juan Emilio Posada earlier explained that the pilots are flying at the slowest possible legal and safe speed and choosing the longest flight paths possible in an effort to cause problems for the Company. This operation is costing the airline about US$300,000 a day, Posada had said. Avianca filed for bankruptcy protection in the United States in March seeking to restructure some US$222 million in unsecured claims by creditors. * Colombia Announces Results of Exchange Offer ---------------------------------------------- The Republic of Colombia announced Friday the results of its invitation to the owners of its U.S. $500,000,000 9.75% Puttable or Mandatorily Exchangeable Bonds due 2009 (the "Old Bonds") to submit, in a modified Dutch Auction, offers to exchange up to U.S. $250,000,000 principal amount of Old Bonds (except to the extent required for the acceptance of all noncompetitive offers) for a combination of new 9.75% Bonds due 2009 ("New Bonds") and a U.S. dollar amount of cash (the "Invitation"), which was launched on November 19, 2003 and expired on November 26, 2003. U.S. $265,302,000 principal amount of Old Bonds was submitted and accepted for exchange by Colombia with a Clearing Cash Payment of U.S. $15 per U.S. $1,000 principal amount of Old Bonds accepted for exchange. Colombia expects to issue U.S. $265,302,000 principal amount of New Bonds pursuant to the Invitation on December 5, 2003. The New Bonds will be consolidated and form a single series with, and be fully fungible with, Colombia's outstanding 9.75% Global Bonds due 2009. UBS Investment Bank acted as Dealer Manager for the Invitation. The Invitation is the third liability management transaction conducted since the beginning of the administration of President Alvaro Uribe, and is part of Colombia's ongoing external liability management program. First, on May 13, 2003, the Government redeemed the entire principal amount (approximately U.S. $153.3 million plus accrued interest) of its Quarterly Adjusted Notes due 2005. The redemption was financed by the proceeds of a U.S. $250 million reopening of Colombia's 10.75% Global Bonds due 2013 on April 16, 2003. Second, on July 11, 2003, the Government purchased the entire principal amount (U.S. $300 million plus accrued interest) of its Floating Rate Notes due 2005 at a purchase price of U.S. $1,051.25 per U.S. $1,000 principal amount of notes tendered. The purchase was financed by the proceeds of two concurrent offerings, one a reopening of Colombia's 10.375% Global Bonds due 2033 and the other an offering of Floating Rate Notes due 2009. With the conclusion of this transaction, total amortizations in 2005 have been reduced from U.S. $2,497,000,000 to U.S. $1,940,000,000. CONTACT: D.F. King & Co. for The Republic of Colombia, Tom Long Phone: +1-212-493-6920 Home page: http://www.dfking.com/ ============= E C U A D O R ============= ANDINATEL/PACIFICTEL: Say Awarding of Cuenca License "Illegal" -------------------------------------------------------------- Ecuador's state-run fixed line operators Andinatel and Pacifictel are criticizing a decision by telecoms regulator Conatel and the comptroller general to award a spectrum license to Cuenca-based operator Etapatelecom. According to Business News Americas, Andinatel and Pacifictel believe that the move was illegal, claiming that the license should have been awarded through a public auction process. In this light, Andinatel and Pacifictel are suing Conatel and the comptroller general. However, Cuenca mayor Carlos Castro dismissed the lawsuit as absurd given that former President Gustavo Noboa signed the concession contract as a witness. Castro also pointed out that Andinatel and Pacifictel themselves obtained concessions without a public auction. PETROECUADOR: Attorney General Approves Insurance Contracts ----------------------------------------------------------- The insurance contracts signed between Ecuador's state oil giant Petroecuador and its current insurer, Ecuadorian Seguros Colonial, finally obtained the approval of attorney general Jose Maria Borja. Business News Americas relates that Petroecuador's board awarded Colonial the insurance contracts for 2003-2004 at the end of October but the decision had to be approved by the attorney general. The US$19.2 million contracts will permit Petroecuador to cut its insurance expenses by US$7 million, local daily El Universo suggested. ============= J A M A I C A ============= JUTC: Protest Action May Hamper Retroactive Payments ---------------------------------------------------- The Jamaica Urban Transit Company (JUTC) is scheduled to pay out a multi-million dollar retroactive package to the state-run bus company's drivers and conductors on December 17. But according to a report by RadioJamaica, the upcoming disbursement is likely to be jeopardized by the protest action lodged by scores of employees at the JUTC. More than 300 JUTC workers have been instructed by their union not to process retroactive payments for the Company's drivers and conductors. The decision follows the reported failure of the Company to honor a 2001 agreement to award incremental increases based on employee's years of service. Speaking with RJR News Friday afternoon, Vice-President for Employee and Public Relations at the JUTC, Keith Goodison, said he was not aware of the union's directive. But he acknowledged that the Company is aware of the unions concerns and is prepared to discuss them. =========== M E X I C O =========== CFE: Bidder Seeks Plant Relocation ---------------------------------- A source from Mexico's federal energy company CFE said that at least one of the four interested bidders of the Company's Tamazunchale thermoelectric project has asked it to relocate the plant in Tamaulipas state city Altamira, where it could presumably receive a better supply of fuel, reports Business News Americas. According to CFE information, the four bidders are Germany's Siemens, Spain's Iberdrola, Japan's Mitsubishi and a consortium of Fluor Daniels (US) and ICA (Mexico). The source said however, that despite requests to change its location, the CFE expects the winner of its Tamazunchale project to build the plant in San Luis Potosi state as originally planned. The source, who works in the Tamazunchale projects office, said CFE would be able to attract enough interest in without changing location. Debates over project location have already caused delays in the bidding rules, local newspaper La Reforma suggests. Companies have until January 23, instead of an earlier October 29 date, to purchase bidding rules. The CFE will open technical proposals January 29, and economic offers will be opened March 4. The project is being offered under the independent power producer mechanism, and the CFE will buy 839-1,135MW from the plant for 25 years. CORPORACION DURANGO: Debt Accord To Come Soon, Says President ------------------------------------------------------------- Miguel Antonio Rincon Arredondo, president of Mexico's Corporacion Durango, expects the paper company to reach an agreement with creditors to restructure around US$700 million of debts soon. According to an El Financiero report, the official notice of the agreement should be made in mid-December. The Company, which is a major producer of paper products, has been negotiating the restructuring of its debts with its creditors, mostly US companies, for a year now. The Company failed to make some interest payments in respect to bonds issued in the US, and which come due in 2003, 2006, 2008 and 2009 following a sharp drop in its cash flow in the second half of 2002. HYLSA: Planned Bond Issue Gets CCC(mex) Rating from Fitch --------------------------------------------------------- Mexican steelmaker Hylsa, a unit of Monterrey-based steel company Hylsamex, obtained a CCC(mex) high-risk rating on its upcoming bond issue of up to 223 million units from ratings agency Fitch Mexico, reports Business News Americas. While it acknowledges the possibility that Hylsa will meet short- term financial obligations, Fitch Mexico said the Company's dependence on the health of the global economy and pressures on operating margins associated with high-cost supplies held the rating down. Fitch analyst Sergio Rodriguez sees Hylsa issuing the certificates by year-end, though considering Mexico's holiday season kicks off in mid-December, it is on a short timeline. Under Hylsa's financing schemes, investors can exchange existing certificates for newer ones, presumably at a better price, Rodriguez said. "Hylsa is looking to improve its dividend profile with this exchange," he said. NII HOLDINGS: Spectrum Auction Delay Won't Derail Nextel's Plan --------------------------------------------------------------- Digital trunking operator Nextel Mexico's business plan will not be affected by the delay in publishing trunking spectrum bidding rules, Business News Americas reports, citing business development vice president Gustavo Cantu. "Nextel's business plan is based the spectrum it currently has," Cantu said, adding, "The auction could open up the possibility of expanding to places where we don't have a presence." Telecoms regulator Cofetel originally planned to call an auction for a nationwide trunking concession in the 800MHz band in September, with a view to awarding the spectrum before year-end. Sources close to the matter said the draft bidding rules are now in the hands of the transport and communications ministry awaiting final approval. According to Select telecoms research director Jose Garces, the delay is due to the government's cautious approach to public auctions in order avoid allegations of wrongdoing or irregularities. He doubted the auction would end up in the courts, as have other ministry and Cofetel initiatives. "Once the spectrum is issued, trunking will be better able to compete with cellular operators, who in turn can take advantage of new technologies making it less likely they will turn to the courts [to delay the auction]," he said. Nextel Mexico is NII Holding's largest subsidiary. ============= U R U G U A Y ============= BANQUE SUDAMERIS: Parent Accepts Binding Offer From Agricole ------------------------------------------------------------ In the framework of its disengagement from Latin America, Gruppo Intesa accepted a binding offer from BANCO ACAC Credit Agricole for Banque Sudameris S.A.'s operations in Uruguay. BANCO ACAC Credit Agricole is the Uruguayan subsidiary of the French banking group Credit Agricole. According to the offer these operations will be transferred at a nominal price of US$1 - as compared to a book value of about US$30 million - mainly due to loan book write-downs, with a consequent charge of approximately US$30 million for Gruppo Intesa already accounted for in its 2003 nine-month consolidated income statement. The transaction's finalization is expected in the early months of 2004 subject to obtaining the relevant authorizations. ================= V E N E Z U E L A ================= SIDOR: Has Had Good 2003, Says Chairman --------------------------------------- Maritza Izaguirre, chairman of Venezuelan steelmaker Sidor, indicated in her speech at a metals conference held November 25- 26 in Caracas that the Company has had a good 2003, relates Business News Americas. The executive attributed positive performance to higher production levels, stable international steel prices and a slight recovery in the local market. Izaguirre projects the Venezuelan economy would grow 4-5% next year. She warned however that the sustainability of this rate depends on many factors. 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *