/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031216.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 16, 2003, Vol. 4, Issue 248 Headlines A R G E N T I N A CABLEVISION: Extends Debt Offer Expiry Once Again CARDIOVAS: Court Declares Company Bankrupt CARPINTERIA NAVAL: Credit Verifications End Today DEMIS: Credit Validation Closes February 4, 2004 DIRECTV LA: Files Plan Of Reorganization DISCO: Cencosud Proceeds With Purchase Talks Amid Challenges EDESUR: Yet To Resolve Conflict With Govt. Over Frozen Rates FARMACIA ITALO ARGENTINA: To Undergo Reorganization FREDDO: Upcoming Sale Attracts Two Bidders GRUPO EDITORIAL SHALOM: Court Declares Company Bankrupt HANKE CULCUY: Individual Reports Due at Court Today INDUSBYL: Machine Maker Declared Bankrupt by Local Court IRMAR: Enters Bankruptcy on Court Orders LACOSTE/PAULO: Creditors Agree to Debt Restructuring Deal LATINA SUR: Enters Bankruptcy on Court Orders MADERFLOOR: Credit Check in Bankruptcy Ends Today MULTICANAL: Gets Necessary Creditor Approval To Execute APE NICASIO: Court Approves Creditor's Motion for Bankruptcy PLASTICO CASTELAR: Deadline for Claims Validation Expires PROSALUD AUSTRAL: Individual Reports Due Today SIDECO AMERICANA: Awaits Court Approval To Execute APE TRANSIMPORTEX: Receiver Verifies Creditors' Claims in Bankruptcy B E R M U D A SEA CONTAINERS: S&P Revises Outlook to Stable From Negative B R A Z I L AES CORP.: Announces Partial Redemption of Notes Due 2005 TELEMAR: Authorizes Unit To Enter New BRL520 Mln Loan with BNDES VARIG/TAM: Looking At Other Ways to Cooperate Besides Merger P E R U NEWMONT MINING: Faces Potential Liabilities in Mining Ops T R I N I D A D & T O B A G O BWIA: Braces For New Rival - - - - - - - - ================= A R G E N T I N A ================= CABLEVISION: Extends Debt Offer Expiry Once Again ------------------------------------------------- Argentine cable TV company Cablevision SA extended its debt- restructuring offer for the seventh time, as formal approval from its creditors has failed to come through again. The new expiry date for the offer is December 19. Cablevision, which has US$797 million in defaulted debt, set an original deadline of October 10, but has repeatedly extended its offer, as creditor approval remained below the two-thirds rate needed to move forward with the Company's out-of-court agreement, known by its Spanish acronym as an APE. While bondholder approval had risen slightly between November 10 and December 1, the latest offer period saw agreement slide back. As of the last deadline, December 11, creditors holding about US$234.6 million of the potential US$725 million in eligible bonds had approved Cablevision's offer. This is lower than the US$244.4 million reported as of the last expiry date, December 1. Sources close to the deal have said the low approval rates are not a big concern for Cablevision because the Company is conducting behind-the-scenes negotiations with a select group of large bondholders and will launch a new offer once those talks are completed. Until then, the Company will continue extending the deadline on its current offer, sources say. Cablevision is offering to buy back up to US$270 million of the debts at 37% of their original value. The Company will put up US$54.9 million and its two main shareholders, Hicks, Muse, Tate & Furst and Liberty Media Corp., will contribute US$ 45 million. CARDIOVAS: Court Declares Company Bankrupt ------------------------------------------ Court No. 23 of Buenos Aires declared local company Cardiovas S.A. "Quiebra", reports Argentine news portal Infobae. Clerk No. 45 assists the court on the case, Infobae added, without revealing whether the court has appointed a receiver. CARPINTERIA NAVAL: Credit Verifications End Today ------------------------------------------------- The deadline for credit verifications in connection with the bankruptcy of Buenos Aires company Carpinteria Naval A.E. Ernesto Weise S.A.C.I.F. expires today. This part of the bankruptcy process determines the nature and amount of the Company's debts, and its results will be used as basis for payments to be made after the Company's assets are liquidated. The Company's receiver, Mr. Antonio Garguilo, who verified creditors' claims, will now prepare the individual reports. He will also prepare the general report. The Troubled Company Reporter - Latin America earlier indicated that Insolvency judge Garibotto of Buenos Aires' Court No. 2 issued the bankruptcy order in approval of a petition filed by the Company's creditor for nonpayment of debt. Clerk No. 3, Dr. Vasallo, assists the court on the case. CONTACT: Carpinteria Naval A.E. Ernesto Weise S.A.C.I.F. Olavarria 180 Buenos Aires DEMIS: Credit Validation Closes February 4, 2004 ------------------------------------------------ Creditors of Argentina's Demis S.A. must file their claims before February 4 next year. The Company's receiver, Mr. Jose Luis Abuchdid, will authenticate claims. Infobae related that Court No. 11, which handles the Company's case, requires the receiver to hand in the individual reports on March 17 next year. The general report is due on April 28. The Company's assets will be liquidated at the end of the process to repay creditors. Payments will be based on the results of the credit verifications. CONTACT: Jose Luis Abuchdid Tacuari 1179 Buenos Aires DIRECTV LA: Files Plan Of Reorganization ---------------------------------------- DIRECTV Latin America, LLC ("the Company") announced Thursday the filing of its proposed Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court in Wilmington, Delaware. This action represents an important milestone in the Company's reorganization as it remains on schedule to emerge from the Chapter 11 process in early 2004. As previously reported, the Company filed for Chapter 11 in March 2003 in order to aggressively address its financial and operational challenges. The filing applied only to the U.S. entity and did not include any of the operating companies in Latin America and the Caribbean, which have continued regular operations. DIRECTV(TM) is a leading pay television service in Latin America and the Caribbean with approximately 1.5 million subscribers in 28 countries. The proposed Plan of Reorganization reflects an agreement reached between the Company, its majority owner, Hughes Electronics Corporation ("HUGHES"), and the official committee of unsecured creditors (the "Creditors' Committee"). The Creditors' Committee has informed the Company that it has concluded that confirmation of the Plan is in the best interest of creditors and is substantially better than any potential alternatives to the Plan. Accordingly, the Creditors' Committee has endorsed the Plan and recommends that creditors vote to accept it. "We are very pleased to have reached this important stage of the reorganization process with the support of our Creditors' Committee and to be on track to emerge from Chapter 11 as planned in early 2004," said Larry N. Chapman, President and Chief Operating Officer of the Company. "The actions we have taken during the course of the Chapter 11 reorganization, together with other profit-enhancing initiatives that are underway, will strengthen DIRECTV Latin America and ensure we are able to continue to offer our customers outstanding programming and entertainment." In broad terms, the proposed Plan contemplates that the Company will continue to exist as a Delaware limited liability company whose members will be HUGHES and Darlene Investments LLC ("Darlene"), an affiliate of the Cisneros Group of Companies. Holders of allowed general unsecured claims will receive cash distributions equal to 20 percent of their allowed claims. These distributions will be funded from the Company's operating cash flow and a new credit facility to be provided by HUGHES. The reorganized Company will also use this exit funding to help fund its ongoing business expenses upon emergence from the reorganization process. Final details of the new credit facility are subject to agreement by the Company, HUGHES and the Creditor's Committee. Under the proposed Plan, HUGHES will receive more than 80 percent of the reorganized Company's equity upon its emergence from Chapter 11 in consideration of its allowed claim for debtor-in- possession financing, as well as for assets to be contributed to the reorganized Company and certain other claims. Darlene will receive a minority share of the equity in consideration of assets to be contributed to the reorganized Company. Hughes and Darlene's contributions to the reorganized Company will include their respective ownership interests in certain operating companies and related entities and certain debts owed to them by such entities. This "roll- up," which will occur upon the Company's emergence from Chapter 11, will consolidate the Company's ownership of the largest operating companies and is expected to simplify its corporate structure considerably. In late November 2003, the Company filed a motion to assume restructured contracts with six of its most critical suppliers of programming: HBO Ole, Distribution I, A.V.V.; MTV Networks Latin America, LLC; LAPTV Atlanta Partners; Turner Broadcasting System Latin America, Inc.; ESPN, Inc; and Discovery Latin America, LLC. In addition, as part of an overall settlement of claims arising from the rejection of certain previous programming agreements, the Company has signed new license agreements with INFRONT WM (formerly known as Kirch Media WM GmbH) for rights to broadcast the 2006 World Cup Soccer tournament and with Buena Vista International, Inc. to resume broadcast of the Disney Channel as part of its "basic" programming package. These programming agreements will result in substantial reductions to the Company's ongoing programming costs and are important components of its reorganization. The Disclosure Statement filed Thursday includes an overview of the Company's five-year business plan, in which its region-wide subscriber base is projected to increase from approximately 1.5 million subscribers at the end of 2003 to 3 million at the end of 2008. The business plan also projects that the Company will begin to generate positive cash flow in 2005. A court hearing to review the adequacy of the Disclosure Statement is expected to occur on January 9, 2004. Bankruptcy law does not permit solicitation of acceptances of the Plan of Reorganization until the Court approves the Disclosure Statement. Accordingly, this announcement is not intended to be, nor should it be construed as, a solicitation for a vote on the Plan of Reorganization. About DIRECTV Latin America DIRECTV is a leading direct-to-home satellite television service in Latin America and the Caribbean. Currently, the service reaches approximately 1.5 million customers in the region, in a total of 28 markets. DIRECTV is currently available in: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean island nations. DIRECTV Latin America, LLC is a multinational company owned by DIRECTV Latin America Holdings, a subsidiary of Hughes Electronics Corporation, Darlene Investments, LLC, an affiliate of the Cisneros Group of Companies, and an affiliate of Grupo Clarin. DIRECTV Latin America and its principal operating companies have offices in Buenos Aires, Argentina; Sao Paulo, Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto Rico; Fort Lauderdale, USA; and Caracas, Venezuela. For more information on DIRECTV Latin America please visit www.directvla.com. Hughes Electronics Corporation, a unit of General Motors Corporation, is a world-leading provider of digital television entertainment, broadband satellite networks and services, and global video and data broadcasting. The earnings of HUGHES are used to calculate the earnings attributable to the General Motors Class H common stock (NYSE: GMH - News). DISCO: Cencosud Proceeds With Purchase Talks Amid Challenges ------------------------------------------------------------ Chilean retailer Cencosud is negotiating to buy Dutch Ahold's Argentine Disco unit, local newspaper La Segunda reported, citing company sources. Cencosud is forging ahead with the negotiations despite several legal challenges mounted against Ahold's ownership of Disco, added the report. "Talks are going ahead and all elements in question are being analyzed," a source was quoted by La Segunda as saying. Cencosud CEO Laurence Golborne has been working on the deal since the beginning of last week in Buenos Aires, said the paper. EDESUR: Yet To Resolve Conflict With Govt. Over Frozen Rates ------------------------------------------------------------ Argentine electricity distributor Edesur SA continues to face certain risks, as it has not been able to reach an agreement with the Government over the issue on the elimination of the freeze of the public rates. The measures, which were taken on January 2002, have brought serious trouble to Edesur, mainly due to its financial commitment that are registered in dollars. Nevertheless, Edesur has been able to extend gradually its capital's dues, though it is still concentrating on the short term one. During the period January 2003 - September 2003, the volume managed by Edesur increased in a 4%, because of a rise within the electrical demand. Nevertheless, its EBITDA was reduced to 22% on October 2003, as a result of recent losses in energy (11.87%), associated with a vast number of irregular connections. CONTACT: EDESUR S.A. Gte. Gral.: Ing. Rafael Fernandez Morande San Jos, 140, 3o P Capital Federal 1076 Argentina Phone: 4370-3700/4370-3370 Fax: 4381-0708 Home Page: www.edesur.com.ar FARMACIA ITALO ARGENTINA: To Undergo Reorganization --------------------------------------------------- Farmacia Italo Argentina S.C.S. will undergo reorganization after Court No. 7 of the Civil and Commercial Tribunal of Bahia Blanca approved its motion for "Concurso Preventivo". Mr. Ricardo Javier Fichman will oversee the process as receiver, reports Infobae. Creditors are required to file their claims before February 20 next year. The receiver will examine and authenticate claims to determine the nature and amount of the Company's debts. However, Infobae did not mention whether the court has set the deadlines for the individual and general reports. CONTACT: Farmacia Italo Argentina S.C.S. Brown 340 Bahia Blanca Ricardo Javier Fichman Belgrano 158 Bahia Blanca FREDDO: Upcoming Sale Attracts Two Bidders ------------------------------------------ Argentine bank Banco Galicia is about to close the sale of its ice-cream parlor chain Freddo and there are only two bidders competing for it: investment fund Pegasus and local magnate Gregorio Perez Companc, the richest businessman in Argentina. It is thought Pegasus intends to capitalize and raise the company's value, then sell it. Mr. Companc is likely to make use of his know-how to add value to his controlled company Munchis. Munchis has 15 ice-cream parlors and with the acquisition of Freddo, would expand the chain to 34 stores, leaving the second player, El Piave, far behind, with 15 branches. In the late 90s, The Exxel Group purchased Freddo from its founders for US$82.5 million. In October 2001, a group of banks headed by Galicia took over Freddo in exchange for a US$30- million loan they had granted The Exxel. Galicia started to look for a purchaser right away. Freddo's price currently ranges from US$15 - US$20 million. Dolphin Fund, D&G and Talemtun have been knocked from the competition. GRUPO EDITORIAL SHALOM: Court Declares Company Bankrupt ------------------------------------------------------- Buenos Aires Court No. 18 declared Grupo Editorial Shalom S.R.L. bankrupt, reports Argentine news portal Infobae. Working with Clerk No. 36, the court assigned Ms. Alicia Kurlat as the Company's receiver. The credit verification period ends on February 16 next year. Creditors must have their claims authenticated by the receiver before the said date in order to qualify for payments to be made after the Company's assets are liquidated. CONTACT: Grupo Editorial Shalom S.R.L. Tucuman 1585 Buenos Aires Alicia Kurlat Carlos Pellegrini 1079 Buenos Aires HANKE CULCUY: Individual Reports Due at Court Today --------------------------------------------------- The individual reports for the reorganization of Argentina-based Hanke Culcuy y Compania S.A. are due for filing today. The Company's receiver, Mr. Daniel Francisco Puimetti, prepared the reports after the credit verification process was closed earlier this year. The receiver will prepare the general report after the individual reports are processed at court. These must be submitted to the court on February 27 next year. An earlier report from the Troubled Company Reporter - Latin America indicated that the Company started reorganization after Buenos Aires Court No. 3 approved its motion for "Concurso Preventivo". The court has also called for an informational assembly to be held on August 13 next year. CONTACT: Hanke Culcuy y Compania S.A. Km 14 Ruta Nacional 19 San Agustin, Santa Fe Daniel Francisco Piumetti San Martin 2347 Buenos Aires INDUSBYL: Machine Maker Declared Bankrupt by Local Court -------------------------------------------------------- Buenos Aires Court No. 20, under Judge Taillade declared machine maker Indusbyl S.A. bankrupt, reported La Nacion. The ruling comes in approval of a petition filed by the Company's creditor for nonpayment of debt. The Court assigned Mr. Bernardo Mazer as the Company's receiver. He will authenticate creditors' claims until March 15 next year, and prepare the individual and general reports. The source, however, did not mention whether the court has set the filing deadlines for these reports. CONTACT: Indusbyl S.A. 2nd Floor, Office 56 Lavalle 1459 Buenos Aires Bernardo Mazer 8th Floor, Office 24 Ave Corrientes 4434 Buenos Aires IRMAR: Enters Bankruptcy on Court Orders ---------------------------------------- Irmar S.A. entered bankruptcy after Buenos Aires Court No. 1 approved a petition for bankruptcy filed by its creditor, Ferry Lineas Argentinas S.A., for nonpayment of debt. The Company sells and imports cars in Argentina. A report from local newspaper La Nacion indicates that Mr. Barg Lajbisz will oversee the case as appointed receiver. He will examine and authenticate creditors' claims until March 1 next year. He will also prepare the individual and general reports on the case. Judge Dieuzeide handles the Company's case with assistance from Clerk No. 2, Dr. Pasina, the report added. CONTACT: Irmar S.A. 9th Floor Ave de Mayo 953 Buenos Aires Barg Lajbisz 10th Floor, Office B Paraguay 2630 Buenos Aires LACOSTE/PAULO: Creditors Agree to Debt Restructuring Deal --------------------------------------------------------- Vesubio, licensee of the brand Lacoste and owner of the brand Paula Cahen DAnvers in Argentina, is about to rescue its clothing brands from default. The company, controlled by The Exxel Group, has reached the necessary percentage of acceptance by creditors to subscribe a debt restructuring deal, which is now waiting for court approval. Vesubio offered to pay its debt of ARS80 million (US$27.11 million) at 50% of face value within 15 years and a 3- year grace period. LATINA SUR: Enters Bankruptcy on Court Orders --------------------------------------------- Latina Sur S.R.L. entered bankruptcy on orders from Buenos Aires Court No. 18. Argentine news portal Infobae reported Clerk No. 35 assists the court on the case, which will close with the liquidation of the Company's assets. The credit verification process ends on April 6 next year. The Company's receiver, Mr. Juan Carlos Sanguinetti, will prepare the individual reports, which are due at the court on May 20, after the validation process is completed. The court also requires the receiver to hand in the general report on July 2 next year. This report is to be prepared by the receiver after the individual reports are processed at court. CONTACT: Juan Carlos Sanguinetti Lavalle 1569 Buenos Aires MADERFLOOR: Credit Check in Bankruptcy Ends Today ------------------------------------------------- The credit verification period for the bankruptcy of Buenos Aires-based Maderfloor S.A. ends today. An earlier report by the Troubled Company Reporter - Latin America indicated that the Company's receiver, Mr. Julio Ramon Coy, authenticated creditors claims. The receiver will now prepare the individual reports, which are due for filing on March 2 next year. The general report, which is a summary of the information in the individual reports after processing at court, must be submitted on April 16. Buenos Aires Court No. 20, handles the case with assistance from Clerk No. 40. The Company's assets will be liquidated at the end of the process to reimburse its creditors. Payment distribution will be determined from the results of the verification process. CONTACT: Julio Ramon Coy Piedras 181 Buenos Aires MULTICANAL: Gets Necessary Creditor Approval To Execute APE ----------------------------------------------------------- In a meeting that took place last Wednesday, over 66% of the bondholders of Multicanal agreed to the Company's proposal. That means Multicanal obtained the necessary majorities to restructure its US$508-million debt under an acuerdo preventivo extrajudicial, or APE. An APE is an out-of-court agreement that needs two-thirds creditor approval to proceed. Once the APE has legal approval, it applies to all creditors. Already, holders of US$20 million worth of Multicanal's bank debt had already accepted the proposal. The APE is now waiting for court approval. The proposal is directed to holders of its 9.25% notes due 2004, 10.5% notes due 2007, 13.125% Series E notes due 2009, Series C 10.5% notes due 2018 and Series J floating rate notes due 2003, and other financial indebtedness. Multicanal offered to purchase for cash US$100 million of its debt at a price of US$300 per US$1,000 aggregate principal amount of debt tendered for purchase. Another alternative is a 10-year par bond with a step-up interest rate. The third option is a 7-year, 7% interest rate note combined with 35% of Multicanal's stock capital. NICASIO: Court Approves Creditor's Motion for Bankruptcy -------------------------------------------------------- Judge Gutierrez Cabello of Buenos Aires Court No. 7 approved a motion for the bankruptcy of local restaurant Nicasio S.A., a report from Argentine newspaper La Nacion indicates. The Company's creditor filed petition on the Company's failure to pay its debts. Working with Clerk No. 13, Dr. O'Reilly, the Court assigned Mr. Carlos Llorca as receiver. He will authenticate creditors' claims until March 22 next year. The receiver is also required to prepare the individual and general reports. La Nacion, however, did not reveal whether the court has set the filing deadlines for these reports. CONTACT: Nicasio S.A. 5th Floor, Office 5 Tte Grl Juan Domingo Peron 1558 Buenos Aires Carlos Llorca 2nd Floor Ave Pres. Roque Saenz Pena 852 Buenos Aires PLASTICO CASTELAR: Deadline for Claims Validation Expires --------------------------------------------------------- Ms. Andrea Cetlinas, receiver for Buenos Aires' Plasticos Castelar S.R.L., will prepare the individual reports for the Company's bankruptcy. An earlier report by the Troubled Company Reporter - Latin America indicates that the credit validation period ends today. The city's Court No. 2 handles the Company's case with assistance from Clerk No. 3. The court also requires the receiver to prepare the individual and general reports. Local sources, however, did not reveal the deadlines for the submission of these reports. CONTACT: Plasticos Castelar S.R.L. Castellar 368 Buenos Aires Andrea Cetlinas Lavalle 1678 Buenos Aires PROSALUD AUSTRAL: Individual Reports Due Today ----------------------------------------------- Court No. 2 of the Civil and Commercial Tribunal of Chubut requires the receiver for local company Prosalud Austral S.A. to submit the individual reports on the Company's reorganization. These reports contain results of the credit verification process completed earlier this year. After the individual reports are processed at court, the receiver is required to prepare the general report and pass this to the court on March 2 next year. The informative assembly will be held on August 18, 2004. CONTACT: Marcela Alejandra Andrade Alem 267 Comodoro Rivadavia Chubut SIDECO AMERICANA: Awaits Court Approval To Execute APE ------------------------------------------------------ Bondholders representing 91.11% of Sideco Americana's debt have accepted the Argentine holding's offer to restructure US$125 million in debt through an out-of-court agreement, or APE. Creditors representing around US$105 million of Sideco's debt chose the cash tender option, in which Sideco is offering to buy back its debt at 35% of face value. Some US$5.6 million opted for the guaranteed alternative, which involves the exchange of the securities for a new 5-year par bond guaranteed by Sideco Brazil, and US$2.5 million chose the 10-year non-guaranteed par bond. Sideco is now awaiting court approval to execute the APE. Sideco ended the first semester of the year with a ARS10.7- million (US$3.74mn) net loss, down from the ARS385 million net loss in the first semester of 2002. The results were impacted by a stronger peso versus the US dollar and lower inflation in 1H03, the Company said, adding that this year it plans to continue its Latin American expansion and consolidation process, particularly in Brazil. TRANSIMPORTEX: Receiver Verifies Creditors' Claims in Bankruptcy ---------------------------------------------------------------- Mr. Donato Antonio Sakurno, an accountant from Buenos Aires, is assigned to oversee the bankruptcy of local company Transimportex S.R.L., reports Argentine newspaper La Nacion. The Company's creditors are required to present their proofs of claim for verification before February 24 next year. Judge Villar of the city's Court No. 13 issued the bankruptcy order in approval of a creditors' petition. Clerk No. 26, Dr. Cardama, assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Transimportex S.R.L. 4th Floor, Office 3 Peru 727 Buenos Aires Donato Antonio Sakurno 2nd Floor, Office 36 Bernardo de Irigoyen 330 Buenos Aires ============= B E R M U D A ============= SEA CONTAINERS: S&P Revises Outlook to Stable From Negative ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Sea Containers Ltd. to stable from negative, citing the company's improving earnings and diminished near-term refinancing risk. At the same time, Standard & Poor's ratings on Sea Containers, including the 'BB-' corporate credit rating, were affirmed. "In the first nine months of 2003, Sea Containers' earnings have increased, due to improving profitability at its passenger rail and marine cargo container leasing operations, as well as reduced interest expense," said Standard & Poor's credit analyst Betsy Snyder. "In addition, the company committed to sell $80 million of its stake in Orient Express Hotels to redeem $80 million of debt maturities in December 2004, after the redemption of $158 million in July 2003, both of which have alleviated major refinancing risk," the analyst continued. The ratings on Bermuda-based Sea Containers Ltd. reflect a relatively weak financial profile and financial flexibility, partially offset by fairly strong competitive positions in its major businesses. Sea Containers is involved in passenger transport operations and marine cargo container leasing. It also has a 47% stake in Orient-Express Hotels Ltd. (OEH). Passenger transport is the largest operation, accounting for approximately 79% of total revenues. This business includes passenger and vehicle ferry services in the English Channel, the Irish Sea, and the Northern Baltic Sea; and passenger rail service between London and Scotland, GNER (Great North Eastern Railway). While Sea Containers is one of the larger ferry participants on routes it serves, this is a highly competitive business, with several participants. GNER operates under a U.K. government franchise that expires in 2005. Marine cargo container leasing primarily includes Sea Containers' share of its joint venture with General Electric Capital Corp., GESeaCo SRL, one of the largest marine cargo container lessors in the world. Leisure investments include the company's 47% stake in OEH, which owns and/or manages deluxe hotels, tourist trains, river cruise ships, and restaurants located around the world. Sea Containers had previously owned 100%, but has been selling its stake over the past few years, using proceeds to reduce debt. Sea Containers also owns a variety of smaller businesses. Earnings from several of Sea Containers businesses have begun to improve, which has aided its credit ratios. The company was successful in redeeming $158 million of debt securities that matured on July 1, 2003. Although the company has another $80 million of debt securities maturing in December 2004, it has committed to use proceeds from the sale of a portion of its Orient Express stake, if necessary, to redeem this debt. As a result, concerns regarding refinancing risk have been alleviated. ANALYST: Betsy R Snyder, CFA New York Phone: (1) 212-438-7811 =========== B R A Z I L =========== AES CORP.: Announces Partial Redemption of Notes Due 2005 --------------------------------------------------------- The AES Corporation (NYSE:AES) announced Friday that it had called for redemption $21,814,000 aggregate principal amount of its outstanding 10% Senior Secured Notes due 2005. The notes will be redeemed on a pro rata basis on January 12, 2004 at a redemption price equal to 100% of the principal amount thereof to be redeemed plus accrued and unpaid interest to the redemption date. The redemption is being made out of "excess asset sale proceeds" and reflects the portion of asset sale proceeds allocable to the notes from AES's sale of 100% of its ownership in two generation businesses in Bangladesh. AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 116 facilities totaling over 45 gigawatts of capacity, in 27 countries. AES's electricity distribution network sells 89,614 gigawatt hours per year to over 11 million end-use customers. CONTACT: The AES Corporation Kenneth R. Woodcock Phone: 703-522-1315 TELEMAR: Authorizes Unit To Enter New BRL520 Mln Loan with BNDES ---------------------------------------------------------------- The Board of Directors of Tele Norte Leste (NYSE:TNE;BOVESPA:TNLP), in a meeting held December 08, authorized its operating subsidiary Telemar Norte Leste (TMAR), to enter into a new loan agreement with the Brazilian long- term development bank, BNDES. The loan amount is R$520 million, with a seven year maturity and an interest rate based on the long term lending rate of BNDES, the TJLP (currently at 11% pa, revised quarterly) plus 4.5% for 80% of the loan value, and a rate based on a currency basket plus 4.5% for the balance. Telemar Norte Leste plans to use the proceeds to continue funding its 2002-2004 Capex program, which was designed to grow the Company's fixed line voice and data platforms and enhance network quality. CONTACT: TNE - INVESTOR RELATIONS Roberto Terziani Email: terziani@telemar.com.br Tel: 55 21 3131 1208 Carlos Lacerda Email: carlosl@telemar.com.br Tel: 55 21 3131 1314 Fax: 55 21 3131 1155 GLOBAL CONSULTING GROUP Kevin Kirkeby kkirkeby@hfgcg.com Mariana Crespo Email: mcrespo@hfgcg.com Tel: 1 646.284.9416 Fax: 1 646.284.9494 VARIG/TAM: Looking At Other Ways to Cooperate Besides Merger ------------------------------------------------------------ The possibility of a merger between Brazil's two biggest airlines, Viacao Aerea Rio-Grandense SA and TAM Linhas Aereas SA, is becoming unlikely, following a recovery in the demand for air travel in South America's largest market. Bloomberg News reports that Varig and TAM are considering other ways to cooperate. But according to Ruy Amparo, TAM's technical and operational vice-president, the proposed merger is "still a strong possibility." "We see other solutions than the merger," Amparo said in an interview with Bloomberg News. "We are reviewing every concept of the company conceived in the first agreement signed at the beginning of 2003, as the expectations for demand, fleet and shareholders' stake have changed." In February this year, Varig and Tam agreed to combine assets and staff. But now the airlines are reconsidering plans as demand for air travel in Brazil recovers after falling as much as 18% in the first quarter from the same period last year, Amparo said. Domestic air traffic rose 4.7% in October over the same month a year ago and 2.7% in November, following nine months of declines, according to the country's civil aviation authority. CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil TAM Daniel Mandelli Martin, President Buenos Aires Tel. (54) (11) 4816-0001 URL: www.tam.com.br ======= P E R U ======= NEWMONT MINING: Faces Potential Liabilities in Mining Ops --------------------------------------------------------- Last week, investment company Boston Common Asset Management filed a shareholder resolution with Newmont Mining Corporation, the world's largest gold-mining firm, calling on the company to prepare a report on the risk to the company's operations, profitability and reputation from its social and environmental liabilities. The company, which has mining operations in Latin America, Africa, Asia, Central Asia and the US, has been dogged by allegations that its mines in these countries are polluting local waterways and harming the health of nearby communities. Some local communities have protested the company's planned operations in environmentally and culturally sensitive areas. The firm is currently under investigation by the US Department of Justice over accusations that it bribed officials in Peru to gain ownership of its highly-profitable Yanacocha mine. To address the problems that underlie these potential liabilities, Boston Common is also requesting that Newmont Mining develop policies on operating in protected areas, provide sufficient funds for long-term environmental clean-up, and provide full disclosure of the company's impact on the environment, labor and human rights. Boston Common filed the resolution on behalf of its client, The Brethren Benefit Trust, Inc. (BBT), which is the financial arm of the Church of the Brethren. BBT holds approximately 3,100 shares of Newmont Mining Corporation common stock. With its recent acquisitions and global expansion, Newmont Mining has become increasingly exposed to risk to the company's operations, profitability and reputation from its social and environmental liabilities. These liabilities, including environmental clean-up costs, compensation to displaced or otherwise aggrieved local communities and related legal expenses, may total hundreds of millions of dollars, thus representing a significant cost to the company. Lauren Compere of Boston Common Asset Management remarked, "Newmont Mining senior executives purport to be committed to sustainable development and but we continue to have concerns as investors that the company is not fully disclosing its social and environmental liabilities. We feel that Newmont Mining needs to disclose not only its potential liabilities but also what policies the company will put in place to avoid those costs in the future." Keith Slack, senior policy advisor for Oxfam America said, "Newmont has made a commitment to obtaining a 'social license to operate' for all its projects. The company should demonstrate this commitment by fully disclosing all relevant social and environmental impact information and by committing itself to not mining in protected areas or in places where local communities are opposed to their operations." Stephen D'Esposito, President of Mineral Policy Center remarked, "Our research shows that mining companies operating in the U.S. have consistently underestimated their environmental reclamation liabilities. Full disclosure and an independent review of potential environmental liabilities are in the interest of Newmont, investors and the public." "Newmont continues to invest in risky projects as shown by the current plans for developing the Phoenix project in Nevada," said Tom Myers, executive director of Nevada-based Great Basin Mine Watch. "Newmont risks its shareholders' money by planning to treat acid runoff from the site for 20,000 years." Human rights and environmental organizations such as Project Underground, JATAM, Friends of the Earth-US, Mineral Policy Center, Oxfam America and Great Basin Minewatch have raised concerns for a number of years about Newmont's social and environmental practices. ================================= T R I N I D A D & T O B A G O ================================= BWIA: Braces For New Rival -------------------------- As if BWIA's problems were not enough to clip its wings to keep it from flying, a rival airline began to compete with its Trinidad/New York route last week. The Trinidad Guardian relates that on Thursday night, Continental Airlines held a grand dinner celebration for the inaugural flight. During the celebration, Continental's regional director Frank Galan declared the carrier intends to take no prisoners on the route. "We expect to compete to be profitable. And we're here to stay," said Galan. He denied, however, that Continental waited for BWIA to be at a weak point before applying to the Air Transport Licensing authority to operate the Newark/Trinidad route. Continental had originally planned to begin its flights to Trinidad in June but Gal n said global economic factors caused the delay. In the meantime, BWIA insisted it is ready for the challenge. CONTACT: British West Indies Airways Phone: + 868 627 2942 E-mail: mailto:mail@bwee.com Home Page: http://www.bwee.com/ *********** 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 * * *