/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040209.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 Monday, February 9, 2004, Vol. 5, Issue 27 Headlines A R G E N T I N A ALPROAR: Court Orders Clains Verification Wrap Up ARGONAUTAS: Bankruptcy Initiated on Court Orders CEMEFE: Receiver Prepares Individual Reports in Bankruptcy CERAMICA TREMARA: Court Approves Preventative Reorganization CHACRAS: Court Approves Creditor's Involuntary Bankruptcy Motion CINCO HERMANOS: Moves Court for Reorganization Approval COMPANIA ARGENTINA: Court Declares Company Bankrupt ELIDO PALMERO: Creditor Claims Verification Ends Today ENTRE RIOS: Individual Reports Due at Court Today EXPOFOT: Court Reviewing Reorganization Petition FERMODYL: General Report Filing Deadline Today INCOTYE: Court Antipates Receiver's General Report Today INSTITUTO RADIOLOGICO: General Report Due at Court Today MULTIMEDICAL: Receiver Prepares Individual Reports OSTRILLION: Receiver Ends Claims Review in Reorganization PARMALAT: Arla Foods Eyes LatAm Businesses PIHUE: Receiver Closes Credit Authentication Process Today TEXTIL SARMIENTO: Individual Reports Due at Court Today TRANS BEEF: General Report Filing Deadline Today TRANSGRU: Court Approves Bankruptcy Petition ULTIMATE SYSTEM: Credit Verification Period Ends Today B E R M U D A FOSTER WHEELER: Secures $120M New Financing Commitment B R A Z I L AES CORP.: S&P Revises Outlook To Stable AES CORP.: Reports Greater Continuing Operations EPS for 2003 AES TIETE: Posts Positive Results in 2003 PARMALAT BRASIL: Needs Immediate Cash Injection to Avoid Closure C H I L E AES GENER: Parent Considers Equity Stake Sale D O M I N I C A N R E P U B L I C AES CORP.: Rules out Sale of Local Ops Despite Ongoing Crisis J A M A I C A AIR JAMAICA: Takes Air Jamaica Express Under Its Wing KAISER ALUMINUM: Termination Motion Hearing Set for February 23 * S&P Lowers Jamaica's LTLC Rating to 'B'; Outlook Negative M E X I C O HYLSAMEX: ALFA's Shareholders Approve Spin Off ISPAT INTERNATIONAL: Reports Lower Income in 4Q03 V E N E Z U E L A FERTINITRO FINANCE: Fitch Upgrades to 'B-', Off Watch Negative - - - - - - - - - - ================= A R G E N T I N A ================= ALPROAR: Court Orders Clains Verification Wrap Up ------------------------------------------------- Buenos Aires Court No. 21 ordered the receiver for Alproar S.A. to close the credit authentication process for the Company's bankruptcy today. The receiver, Mr. Armando Esteban Bozzini, will prepare the individual reports, which are due at the court on March 22. The receiver will prepare the general report after the individual reports are processed at court. This report is to be submitted on May 3, according to an earlier article by the Troubled Company Reporter - Latin America. The Company's assets will then be liquidated to reimburse creditors. CONTACT: Alproar S.A. Uruguay 390 Buenos Aires Armando Esteban Bozzini Vidal 3375 Buenos Aires ARGONAUTAS: Bankruptcy Initiated on Court Orders ------------------------------------------------ Argentine construction company Argonautas S.R.L. enters bankruptcy after Judge Gonzalez of Buenos Aires Court No. 8 approved a bankruptcy motion field by the Company's creditor, Acersa S.R.L., reports La Nacion. The Company's failure to meet its obligations prompted its creditor to file the petition. Working with Dr. Saravia, the city's Clerk No. 16, the Company assigned Maria Rey de Lavolpe as the receiver for the bankruptcy process. The receiver's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the receiver before March 26. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Argonauts S.R.L. Reconquista 671 Buenos Aires Maria Rey de Lavolpe 9th Floor Cerrito 1136 Buenos Aires CEMEFE: Receiver Prepares Individual Reports in Bankruptcy ---------------------------------------------------------- Creditors of Buenos Aires-based company Cemefe S.A. must have their claims authenticated by its receiver, Ms. Isabel de Francesco, as the deadline for verifications expires today. The receiver will now prepare the individual reports on the verification results. The Company entered bankruptcy on orders from the city's Court No. 23, the Troubled Company Reporter - Latin America said in an earlier report. Clerk No 46 works with the court on the case, which would close with the liquidation of the Company's assets. Aside from preparing the individual reports, which are due at the court on March 22, the receiver is also required to prepare a general report and present it to the court on May 6. CONTACT: Cemefe S.A. Rodriguez Pena 2067 Buenos Aires CERAMICA TREMARA: Court Approves Preventative Reorganization ------------------------------------------------------------ Court No. 2 of the Civil and Commercial Tribunal of Trelew approved a motion for "Concurso Preventivo" filed by local company Ceramica Tremara S.A. reports Argentine news portal Infobae. Argentine accountant Elena Mabel Iralde, the appointed receiver, will oversee the reorganization process. The credit verification period ends on February 27 this year. The receiver will prepare the individual reports, which are due at the court on April 14, after verifications are closed. The general report, to be prepared after the individual reports are processed at court, must be filed on May 27. The informative assembly will be held on November 4. This is one of the last parts of the reorganization process. CONTACT: Ceramica Tremara S.A. Pecoraro 275 Trelew, Chubut Elena Mabel Iralde Belgrano 581 Trelew, Chubut CHACRAS: Court Approves Creditor's Involuntary Bankruptcy Motion ---------------------------------------------------------------- Insolvency Judge Gonzalez of Buenos Aires Court No. 8 declared local real estate company Chacras S.A. bankrupt, reports Argentine newspaper La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Aeromar S.A. for nonpayment of debt. Clerk No. 16, Dr. Saravia, assists the court on the case, the source adds. The Company's receiver, Mr. Hector Martinez, will examine and authenticate creditors' claims until May 26. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the receiver by the said date in order to qualify for payments to be made after the Company's assets are liquidated. CONTACT: CHACRAS S.A. 11 de Septiembre 924 Buenos Aires Hector Martinez 40th Floor Ave Independencia 2251 Buenos Aires CINCO HERMANOS: Moves Court for Reorganization Approval ------------------------------------------------------- Cinco Hermanos S.A., which is based in Buenos Aires, seeks court permission to undergo reorganization. A report by Argentine news portal Infobae indicates that the Company has submitted its motion for "Concurso Preventivo" at the city's Court No. 13. Clerk No. 26 assists the court on the case. CONTACT: Cinco Hermanos S.A. 25 de Mayo 1316 Buenos Aires COMPANIA ARGENTINA: Court Declares Company Bankrupt --------------------------------------------------- Ink cartridge recycling company Compania Argentina de Tintas S.A. was declared bankrupt by Buenos Aires Court No. 18. A report by Argentine newspaper La Nacion indicates that Clerk No. 36, Dr. Vivono, assists the court on the case. The paper revealed that the ruling comes in favor of a bankruptcy petition filed by the Company's creditor, Sector de Informatico S.R.L., on grounds of the Company's failure to pay its debts. Creditors must present their claims to the Company's receiver, Mr. Baldomero Gonzalez Herrera, before March 25 in order to qualify for payments to be made after the Company's assets are liquidated at the end of the bankruptcy process. CONTACT: Compania de Argentina de Tintas S.A. 3rd Floor, Room C Alsina 492 Baldomero Gonzalez Herrera 5th Floor, Room N Ave de Mayo 1260 Buenos Aires ELIDO PALMERO: Creditor Claims Verification Ends Today ------------------------------------------------------ The credit verification process for the reorganization of Argentine company Elido Palmero S.A. ends today. The Company's receiver, Mr. Alfredo Bozzi, who examined the claims, will prepare the individual reports. Rosario Court No. 15 requires the receiver to file the individual reports on March 22. The general report, prepared after the individual reports are processed at court, is due for filing on May 4. The informative assembly will be held on September 7, said the Troubled Company Reporter - Latin America in an earlier report. This is one of the last parts in a reorganization process. CONTACT: Elido Palmero S.A. Curapaligue 5949 Rosario, Santa Fe Alfredo Bozzi Cordoba 797 Rosario, Santa Fe ENTRE RIOS: Individual Reports Due at Court Today ------------------------------------------------- The individual reports for the bankruptcy of Entre Rios Cristales S.R.L. are due at Buenos Aires Court No. 20 today. The Company's receiver, Rocardo Felix Fernandez, prepared the reports, which contain the results of the credit verification process completed late last year. After the individual reports are processed at court, the receiver will prepare a general report to be filed at the court on March 22, according to the Troubled Company Reporter - Latin America in an earlier report. The Company's assets would then be liquidated to reimburse creditors. CONTACT: Ricardo Felix Fernandez Tucuman 1567 Buenos Aires EXPOFOT: Court Reviewing Reorganization Petition ------------------------------------------------ Buenos Aires Court No. 26 studies a reorganization petition from local company Expofot S.A. according to Argentine news source Infobae. The Company will undergo reorganization in the event the court approved its "Concurso Preventivo" motion. CONTACT: Expofot S.A. Montevideo 536 Buenos Aires FERMODYL: General Report Filing Deadline Today ---------------------------------------------- The general report for the bankruptcy of Fermodyl S.A.A.C.I.E.I. is due at the court today. The Company's receiver, Mr. Jose Luis Abuchidid, prepared the report after the individual reports, which contain the results of the credit verification process, were processed at court. The Company's assets will face liquidation shortly. The funds will be used to repay creditors after expenses for the bankruptcy process are paid. The Troubled Company Reporter - Latin America earlier reported that the Company entered bankruptcy on orders from Buenos Aires' Court No. 11. CONTACT: Jose Luis Abuchidid Tacuari 119 Buenos Aires INCOTYE: Court Antipates Receiver's General Report Today -------------------------------------------------------- Buenos Aires Court No. 5 expects the receiver for Incotye S.A. to file the general report for the Company's reorganization today. The next step for the Company would be the informative assembly on August 4. The Company's receiver, Mr. Jose Andres Sabuqui, prepared the general report after the individual reports, which contain the results of the credit verification process, were processed at court. In an earlier report, the Troubled Company Reporter related that the Company's reorganization began after the court approved its motion for "Concurso Preventivo". CONTACT: Jose Andress Sabuqui Bdo de Irigoyen 330 Buenos Aires INSTITUTO RADIOLOGICO: General Report Due at Court Today -------------------------------------------------------- The Civil and Commercial Tribunal of Cordoba requires the receiver for Instiuto Radiologico Privado Dr. Di Rienzo S.R.L. to file the general report on the Company's reorganization today. The receiver prepared the report after the individual reports were processed at the province's Court No. 52. The Company began its reorganization process after the court approved its motion for "Concurso Preventivo" last year, said the Troubled Company Reporter - Latin America. CONTACT: Instituto Radiologico Privado Dr. Di Rienzo S.R.L. Ave. General Paz 147 Cordoba MULTIMEDICAL: Receiver Prepares Individual Reports -------------------------------------------------- Ms. Edit Ghiglione, receiver for Multimedical S.A., will prepare the individual reports for the Company's reorganization as the credit verification period ends today. The individual reports, which contain the results of the authentication process, are due at the court on March 22. Buenos Aires Court No. 5 approved the Company's motion for "Concurso Preventivo", said the Troubled Company Reporter - Latin America in an earlier report. The city's Clerk No. 10 assists the court on the case. The general report, which the receiver will prepare after the individual reports are processed at court, must be submitted on May 6. This report is a summary of the information in the individual reports. The court set the informative assembly to be held on November 3 next year. This signals the close of the reorganization process. CONTACT: Edit Ghiglione Paraguay 1225 Buenos Aires OSTRILLION: Receiver Ends Claims Review in Reorganization --------------------------------------------------------- Estudio Kogan Stupnik y otro, receiver for Ostrillion S.A.C.E.I., ends the credit authentication process for the Company's reorganization today. As ordered by Buenos Aires Court No. 10, which handles the Company's case, the receiver will prepare the individual reports, which are to be filed on March 22. In an earlier report, the Troubled Company Reporter - Latin America said that the receiver will prepare a general report, due May 6, after the individual reports are processed at court. The general report is a summary of the individual reports, which contain the results of the credit verification process. Working with Clerk No. 19, the court set October 28 as the date for the informative assembly, which is one of the last parts of a reorganization process. CONTACT: Estudio Kogan Stupnik y otro Sarmiento 1462 Buenos Aires PARMALAT: Arla Foods Eyes LatAm Businesses ------------------------------------------ Swedish/Danish farm cooperative Arla Foods is looking to Italian dairy company Parmalat's business in Latin America, Reuters reports, citing an Arla executive. "We have signalled an interest and we have notified Parmalat about this," the head of Arla Foods, Ake Modig, told Reuters. Mr. Modig said Arla Foods, Europe's biggest dairy company, would look through Parmalat's Latin America portfolio but declined to name any specific countries. However, Mexico and Brazil were not on the cards, he said. "Those operations are too big for us," Mr. Modig said. Parmalat also has businesses in Argentina, Chile, Colombia, Ecuador, Paraguay, Uruguay and Venezuela. Parmalat in Latin America has been a customer of Arla Food milk powder and Modig said businesses with which Arla Foods already had a relationship with could be the most interesting. "We are more interested in what we already know about," he said. PIHUE: Receiver Closes Credit Authentication Process Today ---------------------------------------------------------- Nestor Agustin Iribe, receiver for Argentine company Pihue S.A., closes the credit verification process in connection with the Company's reorganization today. Verifications were done to confirm the existence, nature and amount of the Company's debts. The reorganization started after Buenos Aires Court No. 18 approved the Company's motion for "Concurso Preventivo", an earlier report by the Troubled Company Reporter - Latin America indicated. Clerk No. 36 assists the court on the case. The receiver will prepare the individual reports on the verification results. He is also required to prepare a general report after the individual reports are processed at court. CONTACT: Nestor Agustin Iribe Ave Corrientes 1250 Buenos Aires TEXTIL SARMIENTO: Individual Reports Due at Court Today ------------------------------------------------------- The individual reports for the bankruptcy of Buenos Aires-based company Textil Sarmiento S.R.L. must be submitted to the court today, February 9, 2004. These reports were prepared by the Company's receiver, Mr. Hugo Adriano Zaragoza, after the credit verification process was completed in November last year. The Troubled Company Reporter - Latin America related in an earlier report that the city's Court NO. 11, which holds jurisdiction over the case, requires the receiver to file the general report on March 22. This report is prepared after the individual reports are processed at court. Clerk No. 21 assists the court on the case. CONTACT: Hugo Adriano Zaragoza 25 de Mayo 596 Buenos Aires TRANS BEEF: General Report Filing Deadline Today ------------------------------------------------ Today, February 9, 2004 is the filing deadline for the general report on the bankruptcy of Argentine company Trans Beef S.R.L., according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver, Mr. Hector Juan Kaiser, prepared the report after the individual reports containing the results of the credit verifications were processed at Argentine Capital Federal Court No. 21. The Company's assets will be liquidation soon to repay its creditors. Payment distribution will be based on the credit verification results. CONTACT: TRANS BEEF S.R.L. No. 2078 Terrada Street Buenos Aires TRANSGRU: Court Approves Bankruptcy Petition -------------------------------------------- Organizacion de Servicios Directores Empresarios successfully sought for the bankruptcy of Argentine cargo transport company Transgru S.A., relates local daily Infobae. Judge Ballerini of Buenos Aires Court No. 24 approved the creditors' petition recently. The Company's receiver, Mr. Ernesto Borzone, will verify creditors' claims until April 12 this year. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the said date in order to qualify for payments to be made after the Company's assets are liquidated. The receiver is also required to prepare the individual and general reports on the case. The source, however, did not mention whether the court has set the filing deadlines for these reports. CONTACT: Transgru S.A. San Blas 2656 Buenos Aires Ernesto Borzone Cuenca 1464 Buenos Aires ULTIMATE SYSTEM: Credit Verification Period Ends Today ------------------------------------------------------ The credit verification period for the reorganization of Buenos Aires company Ultimate System S.A. ends today, the Troubled Company Reporter - Latin America said in an earlier report. The Company's receiver, Mr. Raul Horacio Trejo, who examined creditors' claims, will prepare the individual reports on the verification results. Court No. 2 of Buenos Aires, which handles the Company's case, requires the receiver to submit the individual reports o March 22. The receiver will prepare a general report, due May 3, after the individual reports are processed at court. The informative assembly, which is one of the last processes in a reorganization process, will be held on October 11. CONTACT: Ultimate System S.A. Tucuman 1441 Buenos Aires Raul Horacio Trejo Montevideo 205 Buenos Aires ============= B E R M U D A ============= FOSTER WHEELER: Secures $120M New Financing Commitment ------------------------------------------------------ Foster Wheeler Ltd. (OTCBB: FWLRF) announced Thursday actions in support of its goal to restructure the company's balance sheet. A number of institutional investors have committed to provide $120 million in new financing to the company to replace its current term loan and revolving credit facility. In addition, the company has discontinued its previously announced plans to divest one of its European operating units. The new financing will be in the form of senior secured notes due 2011, replacing the funded bank debt that is due in 2005. The institutional investors that have committed to participate in the new financing are also members of the ad hoc bondholders committee that is currently negotiating with the company on the terms of its proposed equity for debt exchange offer and that the company expects to participate in the exchange offer, pending finalization of terms and clearance by the Securities and Exchange Commission (SEC) and state securities commissions. The commitment for new financing is contingent upon the company completing such proposed equity for debt exchange and other customary conditions being met, in each case on terms satisfactory to the investors. "We appreciate the interest that these investors are showing in Foster Wheeler through the commitment of this new capital and their willingness to consider exchanging existing debt for equity in the newly capitalized company," said Raymond J. Milchovich, chairman, president and chief executive officer. "This commitment represents the critical first step toward the completion of our balance sheet restructuring and is expected to provide important financial flexibility as we move ahead. We now look forward to the successful completion of our equity for debt exchange and the significant balance sheet improvement that is anticipated." "During the past year we have seen a significant operational and financial turnaround of our North American operations," continued Mr. Milchovich. "This improvement combined with the anticipated financial benefits of the equity for debt exchange enables us to officially discontinue previously announced plans to divest one of our European operating units. Even though we received several attractive offers, we believe that the future Foster Wheeler portfolio is much stronger if we retain all of our existing businesses. Also, we no longer anticipate the need for the sale of a major asset in order to provide adequate domestic liquidity and complete our balance sheet restructuring. I am very pleased by these positive developments that have been enabled by the improvement in the company's operating performance." The company has filed a registration statement with the SEC, which outlines certain proposed terms of the equity for debt exchange offer for certain of its securities. The closing of the exchange offer is subject to, among other things, clearance of the registration statement by the SEC and state securities commissions, and attaining certain minimum participation thresholds. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, 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, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com. CONTACT: FOSTER WHEELER LTD. Media Contact: Richard Tauberman, 908-730-4444 or Investor Contact: John Doyle, 908-730-4270 or Other Inquiries: 908-730-4000 =========== B R A Z I L =========== AES CORP.: S&P Revises Outlook To Stable ---------------------------------------- Standard & Poor's Ratings Services said Thursday that it changed its outlook on The AES Corp. to stable from negative. At the same time Standard & Poor's affirmed its 'B+' corporate credit rating on AES, its 'BB' rating on AES' senior secured exchange notes, its 'B-' rating on AES' senior unsecured and subordinated debt, and its 'CCC+' rating on AES' preferred stock. "The outlook revision reflects AES' success in addressing several of Standard & Poor's credit concerns over the past year, including execution of its asset sale program and related debt reduction, strengthening liquidity, reduction of near-term maturities, restructuring of its Brazilian businesses, and renewed access to the capital markets," said credit analyst Scott Taylor. AES' corporate credit rating incorporates its planned further debt reduction in 2004. The corporate credit rating on AES is based on the creditworthiness of the AES parent company, which receives dividend streams from its equity investments in a diverse portfolio of energy assets. The rating is not based on the consolidated creditworthiness of the AES family of companies, as is typical of most other Standard & Poor's ratings. Standard & Poor's has made this analytical judgment based on AES' extensive use of nonrecourse project financing, limited interdependency between the individual business units, and AES' history of abandoning its equity investments when the economics of the stand-alone business unit dictate that abandonment is the best decision. Standard & Poor's remains concerned about the negative trend in subsidiary distributions, especially given that projections for this year include fairly sizable distributions from Venezuela ($60 million), Nigeria ($45 million) and Argentina ($35 million), and nonrecurring cash flow from AES Gener S.A. In addition, 2003 distributions included non-recurring distributions from Hawaii and Chigen. However, this is mitigated at the rating level by AES' planned continued debt reduction and the expectation of larger dividends from IPALCO Enterprises Inc. AES' corporate credit rating continues to reflect the risks of its reliance on jurisdictions where considerable regulatory and operating uncertainties exist for substantial cash flows to support its parent level debt and its history of aggressive development and continued weak credit measures. These risks are tempered by the diversification of AES' portfolio, a stable base of cash flow coming from its contractual generation businesses and a regulated utility, and a history of strong operations at its generation and distribution businesses. AES' revamped management team has demonstrated a commitment to restoring AES' credit quality, navigated the company through a liquidity crisis, and voiced a desire to be more disciplined in its investment decisions. AES CORP.: Reports Greater Continuing Operations EPS for 2003 ------------------------------------------------------------- The AES Corporation (NYSE: AES) reported Thursday 2003 income from continuing operations of $336 million, or diluted earnings per share of $0.56. These results compare to a 2002 loss from continuing operations of $(1.609) billion, or $(2.99) per diluted share. Sales for the full year were $8.415 billion, an increase of 14% over 2002 sales of $7.380 billion. Consolidated net cash provided by operating activities increased 9% to $1.576 billion, with subsidiary distributions to parent and qualified holding companies of $1.054 billion for the year, in line with the Company's 2003 target. For the fourth quarter of 2003, the Company reported income from continuing operations of $4 million, or $0.01 per diluted share, compared to a loss from continuing operations of $(1.407) billion or $(2.58) per diluted share in the fourth quarter of 2002. Fourth quarter sales increased 22% to $2.281 billion compared to the year-ago period. For the quarter, consolidated net cash provided by operating activities was $490 million, substantially above last year's result. Subsidiary distributions to parent and qualified holding companies were $255 million, slightly lower than distributions in the fourth quarter of 2002. Results from continuing operations for the 2003 fourth quarter and full year reflect the Company' intention to dispose of two gas-fired merchant generation facilities in the U.S., a gas-fired generation facility in Colombia, and a distribution business in the Dominican Republic, having determined they no longer fit with the Company's business strategy. As a result, these operations have been recorded as discontinued operations in the fourth quarter and full year 2003 results. Comparisons with prior periods have been adjusted to exclude results from those operations. Including the costs for discontinued operations and an accounting change, the company reported sharply narrower losses. For 2003, the company had a net loss of $(403) million, or $(0.67) per diluted share, compared to a net loss of $(3.509) billion or $(6.51) per diluted share in 2002. The company reported a fourth quarter net loss of $(444) million or $(0.71) per diluted share, compared to a net loss of $(2.766) billion or $(5.08) per diluted share in the fourth quarter of 2002. Commenting on the results, President and Chief Executive Officer Paul Hanrahan said, "We have met our financial restructuring and performance goals for 2003. We enter 2004 a stronger company with increased financial flexibility, and we look to further strengthen our credit quality in the future. With the planned asset disposals announced Thursday and the recently completed Brazil restructuring, we have repositioned the AES business portfolio to improve earnings stability through reduced exposure to the U.S. merchant market and to exchange rate fluctuations in Brazil. Combined with our focus on improving the operating performance of our businesses, this sets the stage to leverage our strengths for disciplined growth in attractive markets going forward." Added Chief Financial Officer Barry Sharp, "In 2003 we generated strong cash flow and improved our business performance in a challenging operating environment in many parts of the world. We demonstrated our ability to improve parent company liquidity, strengthen the balance sheet, and refinance significant portions of our debt portfolio at attractive rates and for longer tenors. We are in an excellent position to use our operating cash flow to support further debt reduction and our capital spending program." Forward-Looking Guidance for 2004 AES expects its 2004 diluted earnings per share from continuing operations to be $0.62, under generally accepted accounting principles. Net consolidated cash flow from operating activities is expected to be between $1.6 and $1.7 billion. The company noted that discontinued operations are included, pending disposal, in net cash flow from operating activities, but not in diluted earnings per share, under generally accepted accounting principles. This is expected to result in greater diluted earnings per share from continuing operations growth than cash flow growth in 2004. The operating scenario underlying this guidance assumes a number of market factors, including foreign exchange rates, commodity prices, interest rates, asset impairments or disposals, as well as other significant factors could make actual results vary from this guidance. Additional guidance elements are presented in the company's 2003 Financial Review and 2004 Outlook presentation. AES is a leading global power company, with 2003 sales of $8.4 billion. AES delivers 45,000 megawatts of electricity to customers in 27 countries through 116 power facilities and 17 distribution companies. Our 32,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES investor relations at investing@aes.com. To see financial statements: http://bankrupt.com/misc/AES.txt CONTACT: The AES Corporation Scott Cunningham, 703-558-4875 AES TIETE: Posts Positive Results in 2003 ----------------------------------------- AES Tiete, a Brazilian hydro generation subsidiary of US power company AES Corp., returned to profit last year, reports Business News Americas. The Company posted earnings of BRL195.4 million (US$66.3mn) in 2003, reversing a BRL2.5 million loss the previous year. Net operating revenues rose to BRL779 million in 2003 from BRL570 million in 2002. Financial expenses fell to BRL251 million in 2003 from BRL380 million in the previous year. A slowdown in inflation in 2003 helped reduce expenses since the Company's main debt with federal power holding company Eletrobras is linked to the IGP-M inflation index. Investment in the in the maintenance of its hydro plants in 2003 reached BRL9 million, says the report. Although the Company obtained authorization in December 2002 to build the 21.6MW Carrapatos dam by October last year, Tiete said it is still waiting for an environmental license. Tiete is carrying out feasibility studies for the modernization of its plants and generation expansion through the construction of small hydro and thermo projects. PARMALAT BRASIL: Needs Immediate Cash Injection to Avoid Closure ---------------------------------------------------------------- Parmalat Brasil Industria de Alimentos is in dire need of cash injection of nearly US$26 million to buy raw materials and maintain production, Reuters reports, citing the head of the Brazilian unit of Parmalat. According to Parmalat Brasil president, Ricardo Goncalves, the Company could shut down within days without emergency help from the government, putting tens of thousands out of work, and will probably be sold eventually. Goncalves said he had buyers for the Company and appealed to the government to change bankruptcy laws to allow a sale or rescue of Brazil's No. 2 milk buyer. "The solution should be through the negotiation of a purchase of the company, a part of it," Goncalves told reporters after speaking before a special congressional commission investigating Parmalat's activities in Brazil. "The survival of Parmalat is a matter of days. We're talking about days, not weeks," he said. Parmalat Brasil announced Wednesday that production has plummeted to 40% capacity in South America's largest country. Production by Parmalat Brasil has fallen off so steeply because the division can't afford to pay suppliers like milk producers, said Afonso Champi, a company spokesman. Two of the Company's eight plants across Brazil have stopped production completely, and the others are operating at reduced capacity or are shutting down temporarily only to restart later, Champi said. Brazilian production was close to capacity in December - when Parmalat's Italian parent company filed for bankruptcy protection amid an accounting scandal - and slipped to 70% in January before falling further, he said. ========= C H I L E ========= AES GENER: Parent Considers Equity Stake Sale --------------------------------------------- AES Corp. president and CEO Paul Hanrahan said that the US energy company could sell US$100 million - US$200 million worth of its shares in Chilean subsidiary AES Gener in March, relates Business News Americas. The measure is part of the energy company's effort to recover some of its planned US$300-million cash injection into the Chilean generator in February, which will pay down 100% of an inter-company loan, known as the mercantile account. At present, AES owns 98.65%, or 5.56 billion shares of Gener through its Chilean Inversiones Cachagua holding company. AES's COO for integrated utilities and chief restructuring officer, Joseph Brandt, told analysts that the Company would sell its shares on Chilean and US capital markets. AES expects to sell about US$100 million - US$200 million worth of outstanding shares, which would reduce its participation in Gener, but how much it sells "will depend on the market price, since Gener's business is an important part of our portfolio," Brandt said. "To the extent that AES looks to, and we would like to, recover some of our US$300mn investment, we can do that by increasing the equity offering and then bringing some of that cash back," AES spokesperson Scott Cunningham was quoted by Business News Americas as saying. AES's US$300-million cash injection combined with up to US$100 million of additional capital, that Gener plans to raise in March by issuing new shares, will give Gener the US$400 million it needs to complete its financial restructuring, Cunningham said. Gener's share offering would mean a "minor dilution of the existing share base" for AES and minority shareholders, he added. The funds will be used to finance part of Gener's offers to buy back some US$700 million in US convertible notes, Yankee bonds, and Chilean convertible bonds due 2005-2006. Gener will finance the rest of the offers by issuing US$400 million in new bonds on international markets. Gener has extended the expiry date of the offers until February 20. Gener posted consolidated profits of CLP53.7 billion (US$93.1 million) in 2003, a 64% increase from the previous year's profits of CLP32.7 billion, Business News Americas reported earlier. The increase was due mainly to lower financial costs. CONTACT: AES GENER S.A. Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: (56-2) 6868900 Fax: (56-2) 6868991 Home Page: www.gener.com Contact: Robert Morgan, Chief Executive Laurence Golborne Riveros, Chief Financial Officer =================================== D O M I N I C A N R E P U B L I C =================================== AES CORP.: Rules out Sale of Local Ops Despite Ongoing Crisis ------------------------------------------------------------- AES Corp. (NYSE: AES) vowed to keep its businesses in the Dominican Republic despite the country's worsening energy sector crisis, Business News Americas reports, citing AES president and CEO Paul Hanrahan. AES owns the 210MW oil-fired Los Mina plant and the 310MW gas-fired combined-cycle Andres plant in the Dominican Republic. "We intend to keep these businesses because we feel there is a reasonable probability of them being sustainable and having some potential equity upside," Mr. Hanrahan said. Last year, AES discontinued operations of its Dominican distributor Ede-Este because the "the distribution business under the current industry structure was not an economically attractive business for us," Mr. Hanrahan said. Ede-Este was involved in legal proceedings against state power company CDEEE for freezing its accounts in a dispute over debt payments. Hanrahan also admitted that the country's energy sector crisis could go from bad to worse and that there is "some risk" that AES's generation businesses will not remain economically attractive going forward. ============= J A M A I C A ============= AIR JAMAICA: Takes Air Jamaica Express Under Its Wing ----------------------------------------------------- Jamaica's national airline Air Jamaica took operational control of domestic carrier Air Jamaica Express, making 25 Air Jamaica Express employees redundant last Wednesday. According to the Jamaica Gleaner, Air Jamaica Express is substantially owned by a company chaired by Gordon 'Butch' Stewart, but is not a subsidiary of Air Jamaica, of which Stewart is also the chairman. Stewart is a shareholder in the consortium Air Jamaica Hol-dings, which itself is the majority owner of Air Jamaica. Air Ja. Holdings and the Government have negotiated a debt-for-equity swap that will see the Government increasing its stake in the airline from 25% to 45% in exchange for writing off debts owed to it by Air Jamaica. Under the new commercial arrangement, Air Jamaica has assumed responsibility for the marketing, public relations, ground handling and reservation functions for the smaller carrier. Air Jamaica Express retains management of its pilots, who will continue to fly the small fleet, and remains a distinct corporate entity, with different stakeholders and a separate board. Air Jamaica's Chief Operations Officer (COO), David Banmiller, said the move was made to improve the operating efficiency of both carriers. "The objective is to rationalize the routes with proper equipment and to save on infrastructural cost." He said the ultimate aim was to set up a seamless operation. KAISER ALUMINUM: Termination Motion Hearing Set for February 23 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will hear Feb. 23 a motion filed by Kaiser Aluminium Corporation seeking premature termination of four supply agreements involving its Jamaican and other international operations, says Reuters. The Kaiser companies, which are operating under bankruptcy protection, filed the motion before the court on Jan. 30 seeking to reject the five-year alumina supply agreement between Kaiser and Alcan subsidiary Pechiney Trading Company. The Montreal-based Alcan vows to contest the attempt. CONTACT: Kaiser Aluminum Corporation 5847 San Filipe, Ste, 2500 Houston, TX 77057-3268 Phone: 713-267-3777 Fax: 713-267-3701 Home page: http://www.kaiseral.com Contact: Scott Lamb Phone: 713-332-4751 George T. Haymaker Jr., Chairman Jack A. Hockema, President & CEO John T. La Duc, EVP & CFO * S&P Lowers Jamaica's LTLC Rating to 'B'; Outlook Negative ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term local currency sovereign credit rating on Jamaica to 'B' from 'B+' and revised its outlook on Jamaica's long-term ratings to negative from stable. Standard & Poor's also affirmed its 'B' long-term foreign and 'B' short-term sovereign credit ratings on Jamaica. According to credit analyst Olga Kalinina, the local currency downgrade reflects Jamaica's growing debt burden, the result of continuing high fiscal deficits, and the deterioration of its liquidity position. "The ratings on Jamaica are constrained by its high government debt, which is vulnerable to exchange- and interest-rate movements, as well by its external vulnerability and limited fiscal flexibility," said Mrs. Kalinina. "Interest payments on the debt are extremely high (66% of revenue and 20% of GDP), and the rising uncertainty over a looser fiscal stance could lead to new pressures on Jamaican currency. This, in turn, could ignite another round of new interest-rate hikes, foreign- reserve depletion, and interest-burden increases," she noted. Mrs. Kalinina said that a general government deficit of 7.6% of GDP (excluding central bank operating results) is expected for fiscal 2003, above the planned 5%-6%, and will be achieved by dramatic cuts in capital expenditure (45% in the first half of fiscal 2003) rather than by expected rationalization of the wage bill. Jamaica's ratings could be lowered if the government is unable to reduce the fiscal deficit in the upcoming 2004 fiscal year (starting April 2004) to the level consistent with debt stabilization. "At 145% of GDP in fiscal 2003 (122% on a net basis), Jamaica's general government debt is one of the highest among rated sovereigns, surpassed only by that of Lebanon in the speculative-grade category," Mrs. Kalinina said. "Conversely, if tax reform and wage controls prove to be increasingly efficient, allowing the government to successfully reduce the deficit to levels adequate for a sustainable reversal of the debt trajectory, an outlook change would be considered," she concluded. ANALYST: Olga Kalinina, CFA New York Phone: (1) 212-438-7350 Jane Eddy New York Phone: (1) 212-438-7996 =========== M E X I C O =========== HYLSAMEX: ALFA's Shareholders Approve Spin Off ---------------------------------------------- ALFA, S.A. de C.V. (ALFA) celebrated Feb. 4 the Extraordinary Shareholders' Meeting it had called for on January 19, 2004. During the Meeting, shareholders unanimously approved all of the proposals presented by the Board, which aimed to spin Hylsamex out of ALFA's business portfolio. Speaking to the audience, Mr. Dionisio Garza, ALFA's Chairman of the Board and CEO, explained, "the actions we have proposed are consistent with the strategy of reconfiguring our portfolio, a strategy we have been following since late 2000." The Extraordinary Shareholders' Meeting approved the Board's proposals in exactly the same way they were announced when the meeting was called, terms, which were broadly publicized among shareholders, investors and the general public. In summary, ALFA will reduce its equity, and reimburse it in kind to the shareholders through the prorated delivery of securities known as CPOs, which represent approximately the 90% ownership ALFA has in Hylsamex. The equity reduction will take place in two steps. The first, approved Feb. 4, will be a reimbursement through delivery of CPOs representing approximately 39% of the ownership in Hylsamex. The second, to be approved by a new Shareholders' Meeting to be called early in 2005, will be likewise, through delivery of CPOs of the remaining 51% ownership stake. At the end of the Meeting, Mr. Garza thanked the shareholders for their vote, adding: "I am sure the implementation of this transaction will allow ALFA to continue its strategy and create value for all of you." CONTACT: ALFA Enrique Flores Vice-president of Corporate Communications Tel: 011 52 81 8748 1207 Email: eflores@alfa.com.mx ISPAT INTERNATIONAL: Reports Lower Income in 4Q03 ------------------------------------------------- Ispat International N.V., (NYSE: IST US; AEX: IST NA), reported Thursday a net income of $11 million or 9 cents per share for the fourth quarter of 2003 as compared to net income of $51 million or 42 cents per share for the fourth quarter of 2002. Consolidated sales and operating income for the fourth quarter were $1.4 billion and $22 million, respectively, as compared to $1.3 billion and $29 million, respectively, for the fourth quarter of 2002. Total steel shipments increased by 1% to 3.8 million tons. Debt at the end of the fourth quarter was $2.3 billion. Capital expenditure for the fourth quarter of 2003 was $29 million. At December 31, 2003 the Company's consolidated cash, cash equivalents and short-term liquid investments totaled $80 million. The Company also has approximately $337 million available to it under various undrawn lines of credit and bank credit arrangements1. Ispat International N.V. is one of the world's largest and most global steel producers, with major steelmaking operations in the United States, Canada, Mexico, Trinidad, Germany and France. The Company produces a broad range of flat and long products sold mainly in the North American Free Trade Agreement (NAFTA) participating countries and the European Union (EU) countries. Ispat International N.V. is a member of the LNM Group. To see financial statements: http://bankrupt.com/misc/Ispat_International.pdf CONTACT: ISPAT INTERNATIONAL LIMITED T.N. Ramaswamy Director, Finance + 44 20 7543 1174 CITIGATE FINANCIAL INTELLIGENCE John McInerney / Jessica Wolpert Investor Relations +1 201 499 3535 / +1 201 499 3533 ================= V E N E Z U E L A ================= FERTINITRO FINANCE: Fitch Upgrades to 'B-', Off Watch Negative -------------------------------------------------------------- Fitch Ratings upgraded the debt rating of FertiNitro Finance Inc.'s (FertiNitro) US$250 million 8.29% secured bonds due 2020 to 'B-' from 'CC'. The rating has been removed from Rating Watch Negative. The rating action reflects gradual improvements in FertiNitro's operational capacity and liquidity position that was particularly attributed to the combination of higher production output and relatively high fertilizer prices. As a result, FertiNitro has been generating sufficient cash flow to meet its ongoing operating expenses and a scheduled debt service payment of US$25 million due in October 2003 as well as maintain, as of year-end 2003, cash on-hand of over US$56 million. Although FertiNitro has yet to demonstrate the capacity to operate at nameplate levels on a sustained basis, the project has been operating at more consistent levels with ammonia production averaging around 88% utilization rates following the completion of repairs on the ammonia trains in June 2003. However, Fitch believes two key operational concerns remain: (1) Due to the lingering effect of PDVSA's labor strike in early 2003, gas supply delivered to FertiNitro has not consistently achieved the full levels required since June 2003. Uncertainty remains in the timing of PDVSA's capacity to increase the availability of gas supplied to the project. (2) Operational issues related to the urea train arose at the end of August 2003. As a result, FertiNitro's urea production averaged approximately 77% of nameplate in the second half of 2003. The project detected defects on the urea strippers that are expected to require periodic inspections and repairs every four to six months, which will directly hinder the project's capacity to produce urea at higher utilization levels. Over the coming months, FertiNitro will decide whether to proceed with critical repairs in the full replacement of the urea strippers. The second of two performance reliability tests must be undertaken by November 2006. This test is a subsequent 180-day performance test to demonstrate FertiNitro's capacity to operate at above nameplate levels. In order to remain on track, FertiNitro will need to conclude all critical repairs by May 2006. For 2004, FertiNitro has budgeted scheduled downtime for periodic inspections and repairs on the urea strippers, making forecast average utilization rates consistent with performance during the second half of 2003. FertiNitro expects its finances to improve due to the combination of relatively high product output and continued stable fertilizer prices averaging approximately US$181 per metric tonne (mt) and US$155/ mt, respectively for FertiNitro's ammonia and urea exports. Thus, the project has forecast generating export revenues of over US$272 million for 2004, which would be an improvement of 38% from 2003. FertiNitro should be able to generate sufficient cash flow (including amounts necessary to replenish the senior debt service reserve account) and to meet ongoing operating expenses and scheduled debt obligations. FertiNitro's current financial profile and prospective near-term operating performance are consistent with the 'B-' credit rating. The project remains vulnerable to a variety of risks, principally including the reliability of PDVSA's gas supply, Pequiven's ability to continue to honor contractual offtake obligations, and the challenging Venezuelan sovereign and operating environment. FertiNitro is owned 35% by a Koch Industries, Inc. subsidiary, 35% by Petroquimica de Venezuela, S.A. (Pequiven), a wholly owned subsidiary of Petroleos de Venezuela S.A. (PDVSA), 20% by a Snamprogetti S.p.A. subsidiary, and 10% by a Cerveceria Polar, C.A. (Polar) subsidiary. CONTACT: Caren Y. Chang Phone: +1-312-368-3151 Joy Guttschow Chicago Phone: +1-312-368-3140 Gersan Zurita New York Phone: +1-212-908-0318 Media Relations: James Jockle New York Phone: +1-212-908-0547 *********** 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 2004. 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 * * *