/raid1/www/Hosts/bankrupt/TCRLA_Public/040507.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, May 7, 2004, Vol. 5, Issue 90
Headlines
A R G E N T I N A
COINTEL: Fitch Assigns `CCC(arg)' Bond Ratings
DIDESSA: Court Considers Reorganization Request
EDITORIAL PERFIL: $25M of Bonds Remain In Default
EL PORVENIR: Court Approves Reorganization
HEDWIN: Seeks Court Authorization to Reorganize
IMPSA: Local Moody's Assigns `D' Rating to $250M Bonds
MEYPACAR: Judge Grants Reorganization Motion
NAVIS: Court Declares Company Bankrupt
OBRAS DEL PILAR: Court Makes Bankruptcy Ruling Official
PEREYRA TOURS: Local Court OK's Reorganization Petition
SANCOR COOP: Local Moody's Issues Default Rating
SCP: Creditors Appeal Debt Offer
TELECOM ARGENTINA: Makes New Exec, Administrative Appointments
TELECOM ARGENTINA: Details Newly Adopted Corporate Resolutions
TELEFONICA DE ARGENTINA: Bond Issue Garners 8.05% Yield
VINTAGE PETROLEUM: Prepays Debt; 1Q04 Net Income Up
*ARGENTINA: President Forcasts Near Term Debt Restructuring
B E R M U D A
FOSTER WHEELER: Reduces Loss in the 1Q04
GLOBAL CROSSING: Schiffrin & Barroway Files Class Action Suit
B R A Z I L
AMBEV: Requests End to Interbrew Takeover Probe
EMBRATEL: Lula Supports Talks With Telmex Regarding Star One
TELEMAR: Launches Message Service for Small Businesses
USIMINAS: Net revenues Grow 12%, EBITDA Reaches R$921 Million
C H I L E
COEUR D'ALENE: Results Improve With Better Prices
COEUR D'ALENE: S&P Raises Ratings to 'B-' on Improved Liquidity
PARMALAT CHILE: Creditors Approve Sale To Bethia
TELEFONICA CTC: Shares Soar After Subtel Ruling
M E X I C O
GRUPO IUSACELL: PwC Issues `Going Concern' Opinion
P A N A M A
BLADEX: Issues 4% Preferred Dividend
V E N E Z U E L A
PDVSA: Unit Signs Aluminum Supply Deal
PDVSA: To Send "Test" Shipment of Ethanol-Ready Gasoline to U.S.
SIDOR: Strike Impacts Local Manufacturers
- - - - - - - - - -
=================
A R G E N T I N A
=================
COINTEL: Fitch Assigns `CCC(arg)' Bond Ratings
----------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a
`CCC(arg)' rating to two corporate bond issues of Compania
Internacional de Telecomunicaciones (Cointel), the Comision
Nacional de Valores (CNV), Argentina's securities regulator,
reports.
The issues affected ARS175 million worth of bonds described as
"Clase B bajo el Programa de U$S 800 millones" and US$225
million worth of bonds described as "Clase A bajo el Programa de
U$S 800 millones." It is not indicated when the bonds, which are
classified as "Series and/or Class," will mature.
A `CCC(arg)' rating is assigned to bonds which possess
significant risk of non-payment. Fitch took the action based on
Cointel's financial status as of December 31, 2003.
DIDESSA: Court Considers Reorganization Request
-----------------------------------------------
Buenoa Aires Court No. 8 is currently deliberating whether to
grant Didessa S.A. approval for its petition to reorganize.
Infobae recalls that the company filed a "Concurso Preventivo"
request after it failed to pay its liabilities. Clerk No. 15 is
assisting the court on the Company's case.
CONTACT: Didessa S.A.
V Mariano Boedo 386
Buenos Aires
EDITORIAL PERFIL: $25M of Bonds Remain In Default
-------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on US$25 million worth of corporate bonds issued by
Argentine company Editorial Perfil S.A., the CNV reveals in its
Web site. The Company's finances as of the end of December last
year dictated the action taken by Moody's.
The rating, which is given to bonds that are in payment default,
applies to bonds called "Primera serie de Obligaciones
Negociables" and were classified under "Series and/or Class."
The maturity of the bonds was not disclosed.
EL PORVENIR: Court Approves Reorganization
-------------------------------------------
Buenos Aires Court No. 19 authorized the reorganization El
Porvenir S.A. under the supervision of Mr. Jorge Arias, reports
Infobae. Clerk No. 38 assists the court on this case.
Reorganization, or "Concursos Preventivo", is a measure
available for companies under Argentine law to prevent a
straight liquidation.
Creditors have until June 02, 2004 to submit their proofs of
claim to the receiver, who will verify these claims and submit
them to court as individual reports on July 16, 2004. After
these reports are processed in court, the receiver will then
prepare the general report and submit it to court on September
14, 2004.
The informative assembly, the last stage of a reorganization
process, will be held on February 22, 2005.
CONTACT: El Porvenir S.A.
Av Callao 1046
Buenos Aires
Mr. Jorge Arias, Receiver
Av Rivadavia 1227
Buenos Aires
HEDWIN: Seeks Court Authorization to Reorganize
-----------------------------------------------
Infobae reports that Hedwin S.A. filed for a reorganization
following its failure to repay debts. The Company's case is
pending before Court No. 9, with the assistance of Clerk No. 17.
Important information pertaining to this reorganization petition
will be announced shortly.
CONTACT: Hedwin S.A.
Salta 514
Buenos Aires
IMPSA: Local Moody's Assigns `D' Rating to $250M Bonds
------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a `D'
rating to US$250 million worth of corporate bonds issued by
Industrias Metalurgicas Pescarmona S.A. (Impsa), according to
data provided by CNV in its Web site.
The bonds affected were described as "Programa de obligaciones
negociables" and were classified under `Program.' The bonds will
mature on March 15, 2006.
Moody's took the action based on Impsa's financial status as of
January 31, 2004.
MEYPACAR: Judge Grants Reorganization Motion
--------------------------------------------
Meypacar S.A.'s petition for reorganization was granted approval
by Court No. 9 in Buenos Aires. The Company will enter
reorganization under the supervision of court-appointed receiver
Estudio Lerner y Asociados, with the assistance of Clerk No. 17.
According to Infobae, the court requested creditors to submit
their proofs of claim to the receiver until June 11, 2004.
Individual reports will be submitted on August 10, 2004 while
the general report will be presented to court on September 22,
2004. The informative assembly is scheduled on March 4, 2005.
CONTACT: Estudio Lerner y Asociados, Receivers
Leandro N Alem 790
Buenos Aires
NAVIS: Court Declares Company Bankrupt
--------------------------------------
Navis S.R.L. entered bankruptcy on orders from Buenos Aires
Court No. 1, reveals Infobae. Working with Clerk No. 2, the
court assigned Mr. Ruben H. Faure as receiver. He is to verify
creditors' claims until June 30, 2004.
Creditors who fail to have their claims validated before the
deadline will be disqualified from receiving any payments to be
made after the Company's assets are liquidated. Schedules for
the presentation of the individual reports and the general
report will be announced shortly.
CONTACT: Mr. Ruben H. Faure
Av Rivadavia 1227
Buenos Aires
OBRAS DEL PILAR: Court Makes Bankruptcy Ruling Official
-------------------------------------------------------
Buenos Aires Court No. 16 decreed the bankruptcy of Obras del
Pilar S.A., reports Infobae. The Company will kick off the
process with Ms. Griselda Isabel Eidelstein as receiver, who
will verify creditors' claims until June 21, 2004. Clerk No. 31
assists the court in handling the proceedings.
The Company's case will conclude with the liquidation of its
assets to repay creditors.
CONTACT: Ms. Griselda Isabel Eidelstein, Receiver
Lambare 1140
Buenos Aires
PEREYRA TOURS: Local Court OK's Reorganization Petition
-------------------------------------------------------
Roberto Pereyra Tours S.A., a Buenos Aires-based tourism
company, will undergo a reorganization process following the
approval of its petition by Buenos Aires Court No. 18, reports
Infobae. Clerk No. 36 will assist the court during the course of
the reorganization.
The court appointed Mr. Xilef Irureta as receiver. Mr. Irureta
will authenticate the creditor's proofs of claim until July 02,
2004. Other important dates to take note are the submission of
the individual reports on August 31, 2004, the presentation of
the general report on October 14, 2004 and the informative
assembly on April 14, 2005.
CONTACT: Mr. Xilef Irureta
Parana 145
Buenos Aires
SANCOR COOP: Local Moody's Issues Default Rating
------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on US$300 million worth of corporate bonds issued by
Sancor Coop. Unidas Ltda. under `Program.' The bonds affected
were described as "Titulos de Deuda de Mediano Plazo", the CNV
reports, without revealing the maturity date of the issue.
SCP: Creditors Appeal Debt Offer
--------------------------------
In a statement to the Buenos Aires stock exchange released
Wednesday, Argentine holding company Sociedad Comercial del
Plata SA (SCP) said three creditors have formally appealed the
debt restructuring offer of SCP and its oil and gas unit
Compania General de Combustibles (CGC), reports Dow Jones.
SCP's and CGC's debt offer, which was approved by its creditors
in October 2003, proposes an 80% reduction on about US$110
million of debt - one of the harshest repayment plans among
Argentine companies with ongoing debt restructurings. On March
1, SCP and its unit have received legal approval for their debt
restructurings as part of wider clearance for their bankruptcy
proceedings.
The case of the three creditors, which the SCP statement did not
name, still has to be brought before a higher commercial court
judge.
SCP owns a 19% stake in CGC. Last year, the holding company sold
its controlling stake in the subsidiary to private equity fund
Southern Cross. SCP's main assets now include tourism-related
ventures and a high-speed wireless data service provider.
TELECOM ARGENTINA: Makes New Exec, Administrative Appointments
--------------------------------------------------------------
APPOINTMENT OF DIRECTORS AND
MEMBERS OF SUPERVISORY COMMITTEE
INDEPENDENT AUDITORS
AND MEMBERS OF AUDIT COMMITTEE
Resolutions adopted by the Regular Meeting of Shareholders held
on April 29, 2004 and by the Board of Directors at its meeting
of the same date, in connection with the appointment of the
members of the Board of Directors and of the Supervisory
Committee, the Independent Auditors and the members of the Audit
Committee of TELECOM ARGENTINA S.A. who shall hold office during
the 16 th fiscal year (January 1, 2004 through December 31,
2004):
BOARD OF DIRECTORS: Chairman: Amadeo Ramon Vazquez. Vice
Chairman: Gerardo Werthein. Regular Directors: Oscar Carlos
Cristianci, Alberto Yamandu Messano, Raul Antonio Miranda and
Julio Pedro Naveyra. Alternate Directors: Guillermo Alberto
Brizuela, Osvaldo Hector Canova, Luis Maria Gomez Iza, Ignacio
Abel Gonzalez Garcia, Franco Alfredo Livini and Adrian Werthein.
SUPERVISORY COMMITTEE: Regular Members: Enrique Garrido
(Chairman), Maria Rosa Villegas Arevalo and Gerardo Prieto.
Alternate Members: Rafael La Porta Drago, German A. Ferrarazzo
and Guillermo Feldberg.
INDEPENDENT AUDITORS: Price Waterhouse & Co.
MEMBERS OF AUDIT COMMITTEE: Raul Antonio Miranda (independent
director), Julio Pedro Naveyra (independent director) and
Alberto Yamandu Messano.
Maria Delia Carrera Sala
Attorney-at-law and in-fact
TELECOM ARGENTINA: Details Newly Adopted Corporate Resolutions
--------------------------------------------------------------
Summary of Resolutions Adopted by the Regular General Meeting of
Shareholders Held on April 29, 2004. The meeting in first call
was attended by 10 shareholders, 6 per se and 4 by proxy, who
hold an aggregate of 632,415,602 shares entitled to the same
number of votes and representing 64.24 % of capital and shares.
The resolutions passed on consideration of each of the items of
the Agenda were the following:
1) Appointment of two shareholders to approve and sign the
Minutes
Mr. Jose Gustavo Pozzi, a representative of Nortel Inversora
S.A. and Mr. Fernando Ledesma Padilla, a representative of
Morgan Guaranty Trust, the Depository of the Company's ADRs,
were appointed.
2) Consideration of documents provided for in section 234,
subsection 1 of Law 19,550, the Rules of Comision Nacional de
Valores and the Buenos Aires Stock Exchange Listing Rules and of
accounting documents in English required by the Rules of the
U.S. Securities & Exchange Commission for the fifteenth fiscal
year ended on December 31, 2003.
All the documents submitted to the consideration of the
shareholders were approved without changes as submitted by the
Board of Directors and the Supervisory Committee, except for the
proposal included in the Annual Report concerning the use to be
made of the Company's Retained Earnings, an issue that was dealt
with specifically under another item of the Agenda.
3) Consideration of fiscal year results and Board of Directors'
proposal to carry over to the new fiscal year the retained
earnings negative balance as of December 31, 2003.
The carryover to the new fiscal year of the aggregate of
negative retained earnings as of December 31, 2003 was approved.
4) Consideration of performance by members of the Board of
Directors and of the Supervisory Committee acting during the
fifteenth fiscal year.
The performance of the members of the Board of Directors and of
the Supervisory Committee who acted throughout the fifteenth
fiscal year was approved.
5) Consideration of compensation payable to the Board of
Directors ($ 1,325,950 allocated amount) for the fiscal year
ended on December 31, 2003, which rendered a loss result
assessable under the terms of the Rules of Comision Nacional de
Valores.
An aggregate compensation of $1,325,950 was assigned to the
Board of Directors serving during the fifteenth fiscal year.
6) Authorization to Board of Directors to make advance payments
on account of fees, in the amount set by the Meeting of
Shareholders, to those directors who during the sixteenth fiscal
year qualify as "independent directors", or perform technical-
administrative tasks or special tasks, conditional upon the
decision made by the Meeting of Sharehoders that considers the
documents for such fiscal year.
The Board of Directors was authorized, contingent upon the
decision of the meeting of shareholders, to make advance
payments of the fees of directors who during the sixteenth
fiscal year qualify as "independent directors", or perform
administrative technical tasks or special tasks, in the amount
of up to $ 1,800,000 The Board of Directors was empowered to
increase such maximum amount on a reasonable basis in the event
the Argentine economy experiences an inflationary process.
7) Fees payable to Supervisory Committee
The Supervisory Committee that served during the fifteenth
fiscal year was allocated a compensation of $ 170,000 in the
aggregate.
8) Determination of the number of regular and alternate
directors who shall serve during the sixteenth fiscal year.
The number of regular directors was set in six (6) and of
alternate directors, in six (6) to serve during the sixteenth
fiscal year.
9) Appointment of regular and alternate directors for the
sixteenth fiscal year.
Messrs. Oscar Carlos Cristianci, Raul Antonio Miranda, Alberto
Yamandu Messano, Julio Pedro Naveyra, Amadeo Ramon Vazquez and
Gerardo Werthein were appointed regular directors and Messrs.
Guillermo Alberto Brizuela, Luis Marˇa Gomez Iza and Franco
Alfredo Livini were designated alternate directors (the
substitutes, indistinctly, for Messrs. Cristianci, Messano and
Vazquez), Mr. Osvaldo Hector Canova (the substitute for Mr.
Miranda), Ignacio Abel Gonzalez Garcˇa (the substitute for Mr.
Naveyra) and Mr. Adrian Werthein (the substitute for Mr. Gerardo
Werthein).
Regular directors Messrs. Raul Antonio Miranda, Julio Pedro
Naveyra and Amadeo Ramon Vazquez and alternate directors Messrs.
Osvaldo Hector Canova and Ignacio Abel Gonzalez Garcˇa are
"independent" directors while the other directors appointed are
"non-independent".
10) Appointment of regular and alternate members of Supervisory
Committee for the sixteenth fiscal year.
Enrique Garrido, Marˇa Rosa Villegas Arevalo and Gerardo Prieto
were appointed regular members of the Supervisory Committee, and
Rafael La Porta Drago and German A. Ferrarazzo were designated
alternate members (the substitutes, indistinctly, for Mr.
Garrido y Mrs. Villegas Arevalo) and Guillermo Feldberg (the
substitute for Mr. Prieto).
11) Appointment of independent auditors under the financial
statements for the sixteenth fiscal year and determination of
their compensation as well as that of those who performed during
the fiscal year ended on December 31, 2003.
The Accounting Firm "Price Waterhouse & Co" was appointed
Independent Auditor under the financial statements for the
sixteenth fiscal year and it was decided that its compensation
be fixed by the Meeting of Shareholders analyzing such financial
statement and the Audit Committee was empowered to determine the
manner in which the Independend Auditor shall perform its
services and to make advance payments on account of fees.
As to the compensation for the two companies that jointly acted
as Independent Auditors during fiscal year ended December 31,
2003, the same was fixed in the aggregate amount of $730,000,
without VAT.
12) Analysis of Audit Committee's budget for fiscal year 2004 .
The Audit Committee's budget for the fiscal year to be ended on
December 2004 was set in the amount of $500,000,-
All decisions passed at the Meeting were adopted by a majority
of the computable votes, without considering voluntary
abstentions.
Nora Lavorante attended the Meeting on behalf of the Buenos
Aires Stock Exchange.
Maria Delia Carrera Sala
Attorney-at-law and in-fact
TELEFONICA DE ARGENTINA: Bond Issue Garners 8.05% Yield
-------------------------------------------------------
The demand for the latest bond offering by Argentine fixed-line
provider Telefonica de Argentina has proven healthy, with its
ARS163.3 million one-year, zero-coupon bond getting a yield of
8.05%, according to Dow Jones. The company said 38% of the
buyers were financial institutions, local pension funds
accounted for 36% and insurance companies another 21%.
The issuance, Telefonica de Argentina's first peso-denominated
issuance in local capital markets, was handled by Deutsche Bank
SA and Banco Rio de la Plata SA. It is also the company's first
placement under a US$1.5 billion bond program approved last
year,
VINTAGE PETROLEUM: Prepays Debt; 1Q04 Net Income Up
---------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Wednesday net
income of $19.1 million, or $0.29 per diluted share, in the
first quarter of 2004 compared to income from continuing
operations before cumulative effect of change in accounting
principle of $22.7 million, or $0.35 per diluted share, in the
same quarter last year. Last year's first quarter net income of
$40.7 million, or $0.63 per diluted share, included income from
discontinued operations of $10.8 million, or $0.17 per diluted
share, related primarily to the gain on the sale of the
company's operations in Ecuador and a gain of $7.1 million, or
$0.11 per diluted share, related to the cumulative effect of a
mandated change in accounting principle regarding asset
retirement obligations.
Net income for the first quarter of 2004 included charges for
the early extinguishment of debt of $6.0 million after tax, or
$0.09 per diluted share, related to the retirement of the entire
$150 million balance of the company's outstanding 9 3/4% senior
subordinated notes and $2.4 million after tax, or $0.04 per
diluted share, for the impairment of a certain producing oil and
gas property in the United States. Partially offsetting these
charges was a $6.0 million gain after tax, or $0.09 per diluted
share, for the settlement of a certain contract claim by the
company against a third party.
Cash flow (before all exploration costs, working capital changes
and current taxes associated with property sales), a non-GAAP
measure, was $77.0 million for the first quarter of 2004,
exceeding the "First Call Mean" expectation for the quarter of
$68.3 million (based on 65.0 million diluted shares) by 13
percent. This compares to cash flow of $85.0 million in the
first quarter of 2003. See the attached table for a
reconciliation of these non-GAAP financial measures to cash
provided by operating activities of $84.5 million for the first
quarter of 2004 and $80.8 million for the same period in 2003,
the corresponding GAAP amounts.
Production
First quarter production volume of 6.5 million barrels of oil
equivalent (BOE) was seven percent below the prior year's first
quarter volume from continuing operations of 7.0 million BOE but
was three percent ahead of the company's expectations for the
quarter based on its annual production target for 2004.
Production in the U.S. is significantly ahead of expectations to
date as a result of exploration success on selected gas
properties in Texas and the earlier than expected return to
production of oil properties shut in by the California fires in
October 2003. Canadian and Bolivian production are on track
toward 2004 targeted volumes of 3.2 million BOE and 1.0 million
BOE, respectively. Argentine production volumes, after
experiencing a rise to a peak rate of 29,500 net barrels of oil
per day early in the first quarter, reflecting the increased
capital spending and drilling activity which began in the latter
half of 2003, were adversely impacted by a labor strike by
contract oil field workers late in the first quarter. As a
result of the strike, a portion of the company's first and
second quarter 2004 Argentine production was temporarily shut in
and drilling and workover operations were temporarily suspended.
During the first quarter of 2004, this temporary shut-in period
is estimated to have reduced Argentine volumes by approximately
165 MBbls of oil and 135 MMcf of gas, or 188 MBOE. The impact on
production for the second quarter of 2004 is estimated to be a
reduction of 200 MBbls of oil and 165 MMcf of gas or 228 MBOE
due to the temporary shut-ins. The labor strike has now been
resolved with production and work activities returning to pre-
strike levels.
Prices
Including the impact of hedges, the company's realized price for
oil increased one percent to average $28.50 per barrel in the
first quarter of 2004, compared with last year's first quarter
average price of $28.20 per barrel. The company's realized price
for gas declined one percent to $3.84 per Mcf, compared to $3.88
per Mcf in the first quarter of 2003. As a result of the
expected production decrease due to asset sales and natural
declines, oil and gas revenues declined seven percent to $173.4
million for the first quarter of 2004 from $185.7 million in the
same period of 2003.
Costs and Expenses
Production costs of $45.7 million in 2004 were up from $37.3
million for the previous year's quarter. This increase is
primarily due to costs incurred to repair damage resulting from
the October 2003 fires in California, increased power costs in
the U.S. and higher costs (expressed in U.S. dollars) in
Argentina and Canada resulting from the strengthening of the
Argentine peso and Canadian dollar. Export taxes in Argentina
decreased from $10.2 million in 2003 to $6.2 million in 2004
primarily as a result of a shift in sales volumes from the
export market to the domestic market versus the year-earlier
quarter.
Total general and administrative costs of $16.9 million
increased from $13.5 million in the year-earlier quarter
primarily due to expenses related to employee cash bonuses and a
separation agreement with a former executive included in this
year's first quarter with no comparable amounts in the year-
earlier quarter. Stock compensation costs in 2004 of $3.8
million also increased from $1.0 million in 2003 primarily as a
result of the separation agreement with a former executive.
Exploration expense of $4.4 million for the first quarter of
2004 consisted of $1.8 million of seismic, geological and
geophysical costs, $1.3 million of dry hole costs and $1.3
million of leasehold impairments. This compares to exploration
expense for the first quarter of 2003 of $14.1 million,
consisting of $2.3 million of seismic, geological and
geophysical costs, $9.7 million of dry hole costs and $2.1
million of leasehold impairments.
Interest expense declined 24 percent to $14.0 million in 2004 as
a result of the company's reduction in its average debt
outstanding and a change in the mixture of fixed rate versus
floating rate debt. At March 31, 2004, the company had total
outstanding debt of $687.8 million including $549.9 million in
fixed rate debt and $137.9 million in floating rate debt under
the company's revolving credit facility.
2004 Targets for Production, Cash Flow and EBITDAX Increased
Vintage's targeted annual production for 2004 has been increased
slightly to 27.0 million BOE as a result of U.S. production
running ahead of previous expectations, more than offsetting the
lower production target in Argentina due to the labor strike's
impact on production and work activities (see the accompanying
table for country targets). Due to the strong first quarter
actual prices and the strength of the forward price curve, the
company has also increased its average NYMEX price assumptions
for 2004 to $32.00 per barrel for oil from $29.00 per barrel and
to $5.25 per MMBtu for gas versus the previous assumption of
$5.00 per MMBtu. For the remainder of 2004, the company has
hedged approximately 3.9 million barrels of oil through oil
price swaps at an average NYMEX reference price of $29.48 per
barrel and 3.7 Bcf of gas at an average price of $5.92 per MMBtu
(see the accompanying table).
Given its outlook for the 2004 capital budget and production
levels, plus its revised assumed prices and costs enumerated in
the accompanying table, "Vintage Petroleum, Inc., Revised 2004
Targets" as well as other expectations, Vintage has increased
its target for 2004 cash flow (as defined in the attached table)
to $283 million, which is $41 million higher than the previous
target of $242 million. Similarly, the revised target for
EBITDAX in 2004 has been increased to $385 million from the
previous target of $337 million.
To see financial statements:
http://bankrupt.com/misc/Vintage_Petroleum.txt
CONTACT: Vintage Petroleum, Inc., Tulsa
Robert E. Phaneuf, 918-592-0101
*ARGENTINA: President Forcasts Near Term Debt Restructuring
-----------------------------------------------------------
Despite widespread creditor displeasure with Argentina's
September proposal to restructure its roughly US$100 billion in
defaulted debt, President Nestor Kirchner expressed Wednesday
his confidence that his administration can restructure that debt
shortly, Dow Jones relates.
Creditors have complained that Argentina can afford to pay more
than the 25 cents on the dollar repayment terms stated in its
September offer. President Kirchner, however, insinuated there
will be no modifications to its proposal, which he regarded as
"reasonable" and "serious, responsible and in good faith." He
said the government is less focused on improving the debt-
restructuring terms and more concerned that it won't default
again on its debt in the future.
On Tuesday, the Global Committee of Argentina Bondholders
(GCAB), which claims to represent more than US$37 billion in
defaulted bonds, complained that Argentina has failed to
organize a second round of talks after an initial meeting in
April 16 in Buenos Aires, where it was agreed that technical
meetings focusing on Argentina's debt repayment capacity will be
held in another 15 days.
The president, however, said, "We don't think there will be a
second round in negotiations." He also reiterated that the
government plans to deliver the final terms of its restructuring
offer by mid-June.
Bondholders have been demanding that Argentina should at least
sweeten its repayment terms as the country's economy rebounds
from a four-year recession. President Kirchner did not deny that
things are indeed looking up for the Argentinean economy, but he
added that the country still has a long way to go before
ensuring that economic growth is sustainable.
=============
B E R M U D A
=============
FOSTER WHEELER: Reduces Loss in the 1Q04
----------------------------------------
Foster Wheeler Ltd. (OTCBB:FWLRF) reported Wednesday a net loss
of $4.3 million for the first quarter of 2004, or $0.10 per
diluted share. This compares with a net loss for the same
quarter of last year of $19.8 million, or $0.48 per diluted
share. Revenues for the first quarter of 2004 totaled $702.3
million compared with $810.9 million in the first quarter of
last year. Consolidated earnings before income taxes, interest
expense, depreciation and amortization (EBITDA) for the first
quarter of 2004 were $42.6 million compared with $19.2 million
in the first quarter of 2003.
The quarter's results included a pre-tax, non-cash asbestos gain
of $11.7 million, pre-tax charges of $24.6 million for the re-
evaluation of the profit estimate on one contract, and pre-tax
charges of $9.7 million for professional service expenses and
severance benefits driven by the company's balance sheet and
operational restructuring process. The quarter's results also
included a pre-tax gain of $10.5 million on the sale of certain
power project development rights. While the sale of the power
project development rights is recorded as a one-time gain, the
business in Italy has historically developed and sold such
project rights, and is continuing to actively develop other
project rights that are expected to be offered for sale in the
future. Last year's quarter included a pre-tax gain of $15.3
million on the sale of the assets of the environmental business,
pre-tax charges of $16.6 million for professional services and
severance benefits, and pre-tax charges of $17.9 million for re-
evaluation of contract cost estimates and other provisions.
Assuming the successful close of the equity for debt exchange
offer, the company anticipates balance sheet and operational
restructuring expenses will decline significantly in the second
half of the year.
"Overall, I am very pleased with our accomplishments so far this
year," said Raymond J. Milchovich, chairman, president and chief
executive officer. "We previously announced the structure of our
proposed equity for debt exchange and expect that we will begin
soliciting security holders within the next two weeks.
Completing this recapitalization is essential to provide the
balance sheet needed to support our operating companies and to
enhance client confidence. Our objective is to close the
exchange offer by mid-June."
"With the exception of one contract being managed by our
European power unit that resulted in the charge highlighted
above, I am very pleased with the operating performance and
EBITDA delivered by our operating companies during the quarter,
which generally met our expectations and our business plan,"
continued Mr. Milchovich.
Worldwide Cash and Domestic Liquidity
Worldwide, total cash and short-term investments at the end of
the quarter were $453.8 million, compared with $430.2 million at
year-end 2003, and $472.9 million at the end of the first
quarter of 2003. The quarter-end cash and short-term investments
included $355.8 million held by non-U.S. subsidiaries. As of
March 26, 2004, the company's indebtedness was $1.0 billion,
essentially flat with year-end 2003 and down $83 million from
the end of the first quarter of 2003.
"Our domestic liquidity, which includes cash and unused credit
line availability, strengthened in the quarter and is forecast
to remain sufficient throughout 2004," commented Mr. Milchovich.
"A major contributor has been the Oak Ridge waste processing
facility we constructed and currently operate for the U.S.
Department of Energy. Operations are exceeding our expectations
and we have already collected the full capital recovery that was
forecast to be received during the first nine months of this
year."
Bookings and Segment Performance
New orders booked during the first quarter of 2004 were $629.9
million, compared with $476.3 million in the first quarter of
last year. The company's backlog at the end of the first quarter
of 2004 was $2.1 billion, compared with $2.3 billion at year-end
2003 and $3.5 billion at the end of the first quarter of 2003.
First-quarter new bookings for the Engineering and Construction
(E&C) Group were $473.5 million, up substantially from $262.8
million during the year-ago quarter and at the highest level for
our current E&C businesses in over two years. The Group's
quarter-end backlog was $1.3 billion, flat with year-end 2003
and down $0.9 billion compared with $2.2 billion at the end of
the first quarter of 2003. Revenues for the E&C Group in the
first quarter of 2004 were $420.4 million, compared with $482.8
million in the first quarter of 2003. The Group's EBITDA was
$33.1 million this quarter, up substantially compared with $12.1
million for the same period last year. Last year's EBITDA
included the $15.3 million gain on the sale of the assets of the
environmental business, severance costs of $2.8 million and
charges of $21.1 million for revisions to the estimates on the
environmental contracts that were retained. Included in EBITDA
for this quarter was the gain of $10.5 million on the sale of
the development rights on a project in Italy.
New bookings in the first quarter for the Energy Group were
$156.3 million, compared with $210.1 million in first quarter
2003. Backlog at quarter-end was $813 million, compared with
$946 million at year-end 2003 and $1.3 billion at the end of the
first quarter of 2003. Energy Group revenues for the quarter
were $269.8 million, compared with $326.4 million in the same
quarter of 2003. The Group's EBITDA for the quarter was $17.0
million compared with $30.5 million last year. Included in
EBITDA for this quarter was a charge of $24.6 million for the
re-evaluation of the profit estimate on a fixed price power
contract in Europe. The impact of lower revenues was essentially
offset by the favorable impact of cost reductions and better
execution on existing projects in North America.
Non-Cash Amounts Related to Asbestos
The company settled with additional asbestos insurance carriers
during the first quarter of 2004 reversing $11.7 million of a
$68.1 million non-cash charge recorded in the fourth quarter of
2003. The company expects to settle with an additional insurance
carrier during the second quarter, bringing the total amount of
the 2003 charge to be reversed to $15 million, as anticipated.
The company plans to continue its strategy of settling with
insurance carriers by monetizing policies or arranging coverage
in place agreements. This strategy is designed to reduce future
cash payments from the company to cover asbestos liabilities.
The company continues to project that it will not be required to
fund any asbestos liabilities from its cash flow for at least
six years.
Calculation of EBITDA
Management uses several financial metrics to measure the
performance of the company's business segments. EBITDA is a
supplemental, non-generally accepted accounting principle (GAAP)
financial measure. EBITDA is defined as earnings (loss) before
taxes, interest expense, depreciation and amortization. The
company presents EBITDA because it believes it is an important
supplemental measure of operating performance. A reconciliation
of EBITDA, a non-GAAP financial measure, to net earnings/(loss),
a GAAP measure, is shown in this link
http://bankrupt.com/misc/Reconciliation.txt
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.
Web site: http://www.fwc.com
To see financial statements:
http://bankrupt.com/misc/Foster_Wheeler.txt
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
GLOBAL CROSSING: Schiffrin & Barroway Files Class Action Suit
-------------------------------------------------------------
The law firm of Schiffrin & Barroway, LLP issued Wednesday the
following statement:
Notice is hereby given that a class action lawsuit was filed in
the United States District Court for the Southern District of
New York on behalf of all purchasers of the publicly traded
securities of Global Crossing Ltd. (Nasdaq: GLBCE) ("Global
Crossing" or the "Company") from December 9, 2003 through April
26, 2004, inclusive (the "Class Period").
The complaint charges that Global Crossing, John Legere, and
Daniel O'Brien violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations
to the market between December 9, 2003 and April 26, 2004. More
specifically, the Complaint alleges that the Company failed to
disclose and misrepresented the following material adverse facts
which were known to defendants or recklessly disregarded by
them: (1) that the Company had materially understated its
accrued cost-of-access liability by $50-$80 million; (2) that
the Company had insufficient internal controls; and (3) that as
a result, the Company's financial results were materially
inflated at all relevant times.
On April 27, 2004 Global Crossing announced that it is
conducting a review of its previously reported financial
statements for the years ended December 31, 2003 and 2002,
including respective interim periods. News of this shocked the
market. Shares of Global Crossing stock price dropped $5.00 per
share, or 27.7 percent on April 27, 2004 on unusually large
trading volumes to close at $13.20 per share.
Plaintiff seeks to recover damages on behalf of class members
and is represented by the law firm of Schiffrin & Barroway,
which prosecutes class actions in both state and federal courts
throughout the country. Schiffrin & Barroway is a driving force
behind corporate governance reform, and has recovered in excess
of a billion dollars on behalf of institutional and high net
worth individual investors. For more information about Schiffrin
& Barroway, or to sign up to participate in this action online,
please visit http://www.sbclasslaw.com.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004
Toll free: 1-888-299-7706
1-610-667-7706
E-mail: info@sbclasslaw.com
===========
B R A Z I L
===========
AMBEV: Requests End to Interbrew Takeover Probe
-----------------------------------------------
Brazilian brewer Cia. de Bebidas das Americas (AmBev) has asked
securities regulators to put a stop to its investigation of the
brewer's upcoming US$11.2 billion merger with Belgian brewing
giant Interbrew SA, according to a report by Bloomberg.
In a 32-page filing with Brazil's securities and exchange
commission CVM, AmBev said that contrary to claims that the
transaction enriches controlling stockholders at the expense of
non-voting shareholders, the proposed sale of control would add
value for all shareholders. The sale, AmBev said, would boost
profits by 48% with the addition of Interbrew's Labatt business
in Canada. AmBev also denied the claims in a complaint by Previ,
the largest holder of the brewer's non-voting stock, which says
the value of minority shareholders would be diluted by the
transaction.
"It's being done in the best interest of AmBev," the filing
said.
Since the two companies announced their merger plans in March,
non-voting shares have dropped 27%, while AmBev ordinary, or
voting shares have enjoyed a 22.9% increase. This is the reason
why Previ and other investors are questioning the deal, which
they say would force them to accept dilution of their stock
while the controlling group will net US$4 billion in Interbrew
stock.
EMBRATEL: Lula Supports Talks With Telmex Regarding Star One
------------------------------------------------------------
The president of Brazil, Luiz Inacio Lula da Silva, has given
the green light to the Minister of Communications, Eunicio
Oliveira, to proceed with the talks with Telmex regarding a
golden share accord in the management of Star One, Embratel's
satellite unit, which would give the government power of veto on
all the key decisions made by the unit.
Mr. Oliveira showed president Lula a golden share draft with the
conditions under which the government would take part in the
decisions related to the operation of satellites in the country.
The main concerns of the government have to do with the
operation of the X band -for military use- and the C band -for
TV signals-. The government will have to use the terms of a
golden share (special share with veto right) accord with Embraer
as an example to write the contract that will be signed with
Telmex. The accord will allow the government to have influence
in Star One, an Embratel unit that operates the satellites used
by the army to send information.
According to a spokesperson from the Ministry of Communications,
apart from the power of veto in the shareholders meetings, the
government would also have a representative in Star One's
administration council, composed by 12 members.
The source said the Minister will convoke Telmex to discuss the
proposal, but no certain date has been set for this meeting yet.
CONTACT: Silvia M.R. Pereira, Investor Relations
Tel: (55 21) 2121-9662
Fax: (55 21) 2121-6388
E-mail: silvia.pereira@embratel.com.br
invest@embratel.com.br
TELEMAR: Launches Message Service for Small Businesses
------------------------------------------------------
In a statement, Brazilian fixed-line operator Telemar said its
new message product called Volto Ja (I'll be right back), which
allows clients to record five different messages that can be
activated for different hours of the day, will be offered for
free to new small business clients, its target market,
BNamericas reports.
The service, which also allows users to store up to 20 messages
for 20 days, costs between BRL3.82 and BRL4.11 (US$1.29-US$1.39)
a month depending on state taxes.
The Telemar statement said that according to Brazil's
development, industry and commerce ministry, the country's small
business segment grew 25% between 1995 and 2000, while large
businesses grew just 2.2%.
USIMINAS: Net revenues Grow 12%, EBITDA Reaches R$921 Million
-------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais S/A - USIMINAS (BOVESPA:
USIM3, USIM5, USIM6; OTC: USNZY) announced Wednesday its first
quarter 2004 results. Operational and financial information of
the Company, except where otherwise indicated, is presented
based on consolidated data in Brazilian reais in accordance with
Corporate Law. All comparisons made in this release take into
consideration the same period in 2003, except when specified
differently.
HIGHLIGHTS
Sales and Revenues
Sales volume of the Usiminas System reached 1.9 million tonnes
in 1Q04, a growth of 4%. Domestic sales remained at the 1.4
million-tonne level achieved in 1Q03, while exports grew 15%,
totaling 531 thousand tonnes. Net revenues grew 12% and totaled
R$ 2.4 billion in the quarter, reflecting the increase in the
average price of products.
EBITDA
EBITDA reached R$ 921 million, 4% above that obtained in the
same period last year. This evidenced both recovery in cash
generation, as well as EBITDA margin relative to the last three
quarters. In relation to 4Q03, the gain was 8 percentage points,
increasing from 31% to 39%.
Net Income
Consolidated net income reached R$ 358 million in 1Q04, 1% above
that verified in 1Q03, recalling that the latter period was
positively impacted by exchange variations of R$ 79 million.
Subsequent Events
Usiminas signed three important operational agreements in April
and May 2004 in keeping with its strategic long-range vision.
The signing of the sixth technology transfer agreement with
Nippon Steel Corporation, valid until 2009, will assure the
continuity of Usiminas' leadership in state-of-the-art steel
production. The agreement signed with CVRD will guarantee supply
of 5 million tonnes annually of iron ore over the next five
years. Lastly, the agreement between Usiminas/Cosipa and Cemig
will assure the supply of electrical power over the same five-
year period and marks the migration of the Usiminas System from
the captive energy market to the free market for electrical
energy.
Outlook
Usiminas maintains an expectation of a 7% expansion in the
domestic flat steel market in 2004, based on data from IBS
(Brazilian Steel Institute). Analyses point to export sector
growth, with GDP increasing 3%. The Usiminas System's domestic
market share should not change significantly in spite of growth
in supply. In 2Q04, average prices will remain at high levels in
the international market for steel products. For the second
half, international business performance remains favorable, even
with potential decline in Chinese demand, thanks to the economic
recovery in the United States. In the domestic market, the
behavior of interest rates and the political environment will
set the rhythm of economic activity, with reflexes on steel
product demand.
CONTACTS: Bruno Seno Fusaro
E-mail: brunofusaro@usiminas.com.br
Tel: +55 (31) 3499-8710
Paulo Esteves
E-mail: paulo.esteves@thomsonir.com.br
Tel: +55 (11) 3897-6466/6857
=========
C H I L E
=========
COEUR D'ALENE: Results Improve With Better Prices
-------------------------------------------------
Highlights
- Significantly improved results compared to last year's first
quarter.
- Silver production of 3.4 million ounces during the first
quarter.
- First quarter gold production of 22,000 ounces.
- Consolidated cash costs of $4.25 per ounce/silver during the
first quarter, expected to average approximately $3.00 for the
full year 2004.
- Projected 2004 annual production of 14.5 million ounces of
silver and 133,000 ounces of gold.
- Strong balance sheet with $235 million in cash and short-term
investments at March 31, 2004.
- Accelerated exploration in South America returns early
positive results.
- San Bartolome and Kensington feasibility studies on track for
second quarter completion.
- No silver or gold hedge positions in place.
- Standard and Poor's rating agency upgrades Coeur's rating to
B-.
"With stronger metals prices and our strengthened capital
structure, our results in this most recent quarter improved
significantly from last year's period. We look forward to much
improved cash flow and earnings throughout 2004 with sustained
metals prices," said Dennis E. Wheeler, Chairman and Chief
Executive Officer. "Our balance sheet and cash position remain
very strong, with approximately $235 million in cash and short
term investments at March 31, giving us the financial strength
to aggressively move forward with our growth projects. This
growth profile was noted in Standard and Poor's recent upgrade
of Coeur's credit rating," Mr. Wheeler added.
"Coeur remains on target for 2004 production growth, with
expectations of achieving full-year silver production of 14.5
million ounces, a 2% increase over 2003, and 133,000 ounces of
gold production, an 11% increase over last year's level. Full
year 2004 cash costs are expected to be approximately $3.00 per
ounce, a 9% reduction from the previous year's level," said
Robert Martinez, President and Chief Operating Officer.
"At the San Bartolome silver project and the Kensington gold
project, work continues on the final updated feasibility
studies, which are scheduled to be completed during the second
quarter of this year. Both of these major projects -- designed
to increase silver production by approximately 41% and gold
production by approximately 75% over current levels -- are
expected to begin contributing to production in 2006, assuming
the successful completion of updated feasibility studies and the
permitting process at both projects," Mr. Martinez said.
"Meanwhile, our aggressive exploration program is on plan to add
low-cost ounces to our operating properties in Chile and
Argentina, further extending mine life at these important
producing mines," Mr. Wheeler added.
Financial Summary
Coeur d'Alene Mines Corporation (NYSE: CDE - News), the world's
largest primary silver producer, reported first quarter 2004
revenue of $27.6 million, compared to revenue of $29.3 million
in the first quarter of 2003. Company-wide production was 3.4
million ounces of silver and 22,000 ounces of gold in the first
quarter, compared to 3.6 million ounces of silver and 33,000
ounces of gold in the same period last year. Gold production was
impacted by transition of mining at Cerro Bayo from the Furioso
deposit to other vein systems, and the normal, cyclical nature
of production at Rochester, as well as normal delay in
recovering higher grade gold ores through the pad. For the full
year, Rochester is expected to realize approximately 50% more
gold production compared to the previous year. Silver production
was slightly lower in the first quarter compared to a year ago
due to the development project at Silver Valley, which has
stepped up exploration for future production growth.
For the first quarter of 2004, the Company reported a
significant improvement in its bottom line, with a reported net
loss of $3.0 million, or $0.01 per share, compared to a net loss
of $31.2 million, or $0.23 per share, for the same period in the
prior year. The recent first quarter was impacted by increased
exploration expense totaling $1.9 million related to the
Company's accelerated exploration program in addition to $1.0
million related to the completion of updated feasibility studies
at the San Bartolome and Kensington projects. In addition, the
Company eliminated its gold forward contracts to zero during the
quarter, which increased the net loss by $0.9 million. Interest
expense was reduced by more than half in the recent first
quarter compared to a year ago, a result of the Company's
restructuring and significantly strengthened balance sheet.
During the first quarter, the Company redeemed its remaining
$9.6 million of 7 1/4 % Convertible Subordinated Debentures. In
January 2004, Coeur raised $180 million through the sale of 1
1/4% Convertible Senior Notes due January 2024. As a result,
cash and short-term investments at March 31, 2004 totaled $234.8
million.
For the first quarter, Coeur realized an average silver price of
$6.85 per ounce compared to an average realized price during
last year's first quarter of $4.77 per ounce. For its gold
sales, Coeur realized an average price of $395 per ounce during
the first quarter of 2004 compared to an average gold price of
$341 per ounce during the same period last year.
Overview of Operations
South America
Cerro Bayo (Chile)/Martha (Argentina)
- 1,217,816 ounces of silver and 10,536 ounces of gold produced
during the first quarter
- Cash costs of $2.31 per ounce of silver, giving effect to the
gold by- product credit as a reduction of operating costs
- Completion of 11,000 feet of drilling in the quarter pursuant
to an accelerated exploration program
Costs and production at Cerro Bayo/Martha were impacted in the
first quarter due to the completion of mining in 2003 of the
Furioso area at Cerro Bayo, a major gold producer for the mine
in the past year. During 2004, production will focus on the
high-grade vein systems in the main Cerro Bayo area, including
Javiera Sur, the Luz Eliana, and Raul veins, as well as veins in
the Laguna Verde area just west of the Cerro Bayo mine.
Extensions of the high-grade Javiera Sur vein were mined in the
first quarter. For the full year 2004, Cerro Bayo is expected to
produce 4.9 million ounces of silver and 54,000 ounces of gold
at an estimated average cash cost of approximately $2.05 per
ounce of silver.
The Company's exploration program near existing infrastructure
at Cerro Bayo and Martha, and in select areas in the Santa Cruz
province, had its first full quarter of accelerated drilling,
building on positive results from 2003. In the first quarter,
over 4,300 meters of definition and 6,700 meters of drilling
were completed around Cerro Bayo and Martha. Encouraging results
were obtained, especially at the R4/Del Medio area of Martha,
where recent results indicate economic high-grade mineralization
exists below the 260-meter level where ramp construction is in
progress.
Coeur has also commenced reconnaissance and target generation
exploration at its land holdings in Patagonia which will
continue throughout the year. The exploration budget for Chile
and Argentina in 2004 totals approximately $5.7 million, more
than double last year's budget.
North America
Rochester Mine (Nevada)
- 1,310,295 million ounces of silver and 11,475 ounces of gold
produced during the first quarter
- Silver production increased by 20% and gold production up 7%
as a result of the completion of the crusher relocation project
- Cash costs of $5.58 per ounce of silver during the first
quarter, expected to decline to approximately $2.65 per ounce
for the full year
- Higher gold ore grades placed on the pad in first quarter will
result in higher gold production and lower operating costs
though the remainder of 2004
In the first quarter, Rochester produced 1.3 million ounces of
silver and 11,000 ounces of gold, slightly higher than last
year's first quarter in both metals. Production in the first
quarter of the year was impacted by weather conditions as is
typical in the first quarter of the year. The crusher expansion,
which was completed during the fourth quarter of 2003, deferred
the mining of high-grade gold ore until the first quarter of
2004. During the recent quarter, higher grade gold ores were
placed on the pad, which are expected to increase gold
production and lower operating costs during the rest of the
year. With the installation of the new crusher now complete,
mining, crushing and leaching operations are now operating
according to plan.
During 2004, the Company expects Rochester production to total
approximately 78,500 ounces of gold and 5.8 million ounces of
silver at an average cash cost of approximately $2.65 per ounce.
Coeur Silver Valley -- Galena Mine (Idaho)
- First quarter silver production -- 906,980 ounces
- Cash operating costs of $4.93 per ounce
- Promising early results from expanded exploration drilling and
development program
The Company's 100 percent owned Coeur Silver Valley produced 0.9
million ounces of silver in the first quarter of 2004, compared
to 1.2 million ounces in the first quarter of 2003. As
previously announced, the decrease in production is the result
of the Company's decision in the third quarter of last year to
increase exploration and decrease mine production during the
2004 to 2005 time frame, with the focus on increasing reserves
to allow the mine to increase production to seven million ounces
in 2007.
In the first quarter 2004, cash costs totaled $4.93 per ounce of
silver versus $4.22 in the same period a year ago, due in part
to the development plan, which has an early emphasis on the
adding of new reserves through exploration drilling. So far,
drilling and drifting have taken place in the upper area of the
Galena mine, returning promising results with drifting now
underway to provide drill access to targets in the Coeur mine
area.
During 2004, Coeur Silver Valley is expected to produce 3.7
million ounces of silver at an average cash cost of
approximately $4.80 per ounce. Production is expected to
increase to seven million ounces by 2007, with costs declining
to $4.00 per ounce of silver.
Development Projects
San Bartolome (Bolivia)
The final updated feasibility study at the San Bartolome silver
project near Potosi, Bolivia is scheduled for completion at the
end of the second quarter of 2004.
Based on the Company's assessment of the updated feasibility
study, the Company is revising several of the key benchmarks of
the property. The initial expected mine life is fifteen years,
with proven and probable reserves of 123 million ounces of
silver. The Company expects plant throughput to increase from
4,700 tons per day to 5,200 tons per day and changes in the
metallurgical circuit are expected to increase silver recovery
from 71% to 78%. The addition of the tin circuit will allow for
the recovery of this significant by-product metal. Based upon
these modifications, it is now estimated that annual mine
production would be as high as eight million ounces of silver
and two million pounds of tin annually. Annual production the
first three full years of operation was initially expected to
average six million ounces of silver per year. It is now
estimated that 95 million ounces of silver and 30 million pounds
of tin will be produced over the life of the project from
established ore reserves and mineralized material. Based on the
work performed by the independent consultant, the Company
believes there is an opportunity to expand the mineralized
material.
Initial capital costs are now estimated at $130 million,
including a contingency of 12%, and per ounce operating costs,
net of by-product credits, are now estimated at approximately
$3.75 per ounce of silver. The revised project is based upon a
silver price of $6.00 and a tin price of $2.90. The updated
feasibility study is addressing these project modifications
along with optimization opportunities.
The final environmental study was filed with the Bolivian
government on April 27, 2004. Pending the review of the final
updated feasibility study and receipt of final permits,
construction of the project could commence during 2004 with
production commencing in 2006.
Kensington (Alaska)
At the Kensington gold project, located 45 miles north of Juneau
in southeast Alaska, the final updated feasibility results to
date indicate a project of approximately $85 million to be spent
during 2004-2005, with annual production of approximately
100,000 ounces of gold when the proposed mine reaches full
production. In addition, 7.3 million tons of mineralized
material averaging .12 ounces of gold per ton exist on the
property. The cash cost of production is expected to be
approximately $195 per ounce. The expected mine life is
approximately ten years.
During the first quarter of 2004, the draft supplemental
environmental impact statement was released for public comment.
The comment period closed and the U.S. Forest Service is
currently developing responses to the comments. The
Environmental Protection Agency has released the preliminary
draft National Pollutant Discharge Elimination System permit to
affected governmental agencies for review and comment. The draft
permit is currently being reviewed by the Army Corp of Engineers
for completeness. The Company expects the project will have all
required permits in the third quarter of 2004. Upon successful
completion of the final updated feasibility and receipt of final
permits, construction of the project could still commence during
2004 with production beginning in 2006.
Recently, the Alaska Industrial Development and Export Authority
(AIDEA) introduced a bill to the Alaska House (HB 556) seeking
legislative approval to issue bonds of up to $20 million to
finance the acquisition, development, improvement and
construction of port and related facilities located at Slate
Creek Cove and Cascade Point in Berners Bay in southeast Alaska.
These proposed facilities would facilitate the operation at
Kensington. On April 30, 2004, the House passed the bill by a 38
to 0 margin. The bill is now in Senate Finance with final action
expected in May, 2004.
2004 Outlook
During 2004, the Company expects to produce 14.5 million ounces
of silver and 133,000 ounces of gold. Cash costs of silver
production (net of gold by-product credits) are expected to
average approximately $3.00 per ounce. The company expects to
spend $9.5 million in sustaining capital during 2004.
Recent Credit Upgrade by Standard & Poor's Rating Services
In late April, Standard & Poor's Ratings Services announced it
raised its corporate credit and senior unsecured debt ratings on
Coeur to 'B-' from 'CCC.' The outlook on Coeur is stable. S&P
noted that the upgrade "reflects the improvement in industry
conditions and in the company's liquidity and financial profile,
which have provided Coeur with the capital necessary to fund
development of its low-cost mining projects so that it may
develop its reserve base and improve profitability and
diversity."
Hedging
Coeur does not currently have any of its silver or gold
production hedged.
Coeur d'Alene Mines Corporation is the country's largest silver
producer, as well as a significant, low-cost producer of gold.
The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.
To see financial statements: http://bankrupt.com/misc/Coeur.txt
CONTACT: Coeur d'Alene Mines Corporation
Tony Ebersole, Investor Relations
800-523-1535
COEUR D'ALENE: S&P Raises Ratings to 'B-' on Improved Liquidity
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured debt ratings on Coeur D'Alene Mines Corp.
to 'B-' from 'CCC'. The outlook is stable. The Coeur D'Alene,
Idaho-based silver and gold mining company currently has about
$180 million in total debt.
"The ratings upgrade reflects the improvement in industry
conditions and in the company's liquidity and financial profile,
which have provided Coeur with the capital necessary to develop
its low-cost mining projects so that it can increase its limited
reserve base and improve profitability and diversity," said
Standard & Poor's credit analyst Paul Vastola.
The ratings on Coeur reflect its high business risk as a
cyclical, capital-intensive commodity-based company with a
modest scope of operations, limited reserve base (averaging
about 3.5 years) and its very weak financial performance.
Ratings also incorporate the challenges and uncertainties
regarding the company's ability to successfully develop new
lower-cost mining operations. Challenges include volatile
prices, governmental regulation, environmental issues,
permitting, and adverse geological conditions. These factors are
somewhat mitigated by Coeur's good liquidity levels.
Coeur's comparatively small position as a precious metals
company has resulted in volatile earnings and cash flows. Given
its high cost position and relatively low gold and silver prices
in the past few years, the company has consistently incurred net
losses. Indeed, with an average realized silver and gold price
of $4.87 and $344 per ounce, respectively, in 2003, and low
production of 14.2 million ounces of silver and 119,500 ounces
of gold, Coeur generated relatively modest revenues of
approximately $108 million and incurred a loss on an adjusted
EBIT basis of $3.6 million.
The significant rise in silver and gold prices in the first
quarter of 2004 should enable the company to generate positive
net earnings. Although silver and gold prices have recently
retreated from their first-quarter highs, using Standard &
Poor's base case prices for silver and gold of $5 and $350 per
ounce, respectively, the company is expected to remain
profitable in 2004.
ANALYST: Paul Vastola, New York (1) 212-438-7816
PARMALAT CHILE: Creditors Approve Sale To Bethia
------------------------------------------------
Parmalat Chile's creditors approved Monday the sale of the unit
to local investment holding Bethia Inversiones for US$15.5
million plus the assumption of the unit's US$51 million in debt.
Banco do Brasil was the only creditor that objected to the deal,
according to Jose Luiz Navarrete, a Bethia spokesman.
Parmalat's scandal, the largest ever to affect Europe, erupted
December 19, when it acknowledged that Bonlat, Parmalat's Cayman
Islands subsidiary, didn't have the EUR3.95 billion it had
claimed was in a Bank of America account. The bank said the
letter guaranteeing the money was fake.
Parmalat SpA has filed for bankruptcy protection from its
creditors and has been declared insolvent.
Parmalat Chile filed for protection from creditors in March, in
an attempt to avoid bankruptcy and reach a debt restructuring
accord with its creditors.
Bethia is run by the Solari and Del Rio families, who among
other assets own the department store retailer Falabella SA.
TELEFONICA CTC: Shares Soar After Subtel Ruling
-----------------------------------------------
Following the issuance of telecommunications regulator Subtel of
its final five-year rates ruling Wednesday, the shares of
leading Chilean telecommunications firm Telefonica CTC Chile
surged 5.8% at CLP2010.10 after jumping 7% at the open, relates
Reuters.
CTC's A series shares also rose 7.37% to CLP2,040 each before
easing slightly. Its B series was unchanged from Tuesday's close
of CLP1,625. On the New York Stock Exchange, CTC's shares rose
7.66% to US$12.93.
Subtel's ruling raises the fees CTC can charge clients on a
monthly basis and the rate competing telephone companies pay to
access its network. The ruling is relatively easier on CTC than
the preliminary report the regulator issued two months ago, when
it sought a 23% cut in fixed-line tariffs, hitting 46% of CTC's
sales and 50% of earnings before interest, taxes, depreciation,
and amortization.
CTC, however, said it was unhappy with the Subtel ruling. "While
the final tariff decree corrected the regulatory authority's
irrational original proposal - which in itself had grave
consequences for the market in general - the truth is the
tariffs set result in being absolutely insufficient for a
harmonic development of the sector," the company said in a
statement. It added that the regulator's ruling maintains "for
the future the delicate situation in which the fixed-line
industry has found itself during the past five years,
characterized by paralysis in investments and the sector's
development."
===========
M E X I C O
===========
GRUPO IUSACELL: PwC Issues `Going Concern' Opinion
--------------------------------------------------
With the failure of Mexican wireless company Iusacell to
refinance its debt of around US$800 billion for several months,
in addition to posting a US$31 million loss in the first
quarter, auditors PricewaterhouseCoopers expressed doubt
Wednesday on the company's ability to keep its operations
running, Reuters reveals.
"These circumstances, among others, generate substantial doubts
about the ability of the company to continue operating as a
running business," PricewaterhouseCoopers said in an external
audit report released by the Mexican stock exchange. The report
also said, "The company's operating results have deteriorated
and also the company has accumulated losses of MXN8.24 billion
(US$721 million), which represents more than two-thirds of its
capital."
Creditors who hold around a third of the debt of an Iusacell
unit have asked the New York state Supreme Court to stop the
company from selling assets as they seek to recover sums
involving $150 million worth of debt in default.
===========
P A N A M A
===========
BLADEX: Issues 4% Preferred Dividend
------------------------------------
Banco Latinoamericano de Exportaciones, S. A. (BLADEX) (NYSE:
BLX), a multinational bank established to finance trade in the
Latin American and Caribbean region, announced that its Board of
Directors, at a meeting held on April 13, 2004, declared a cash
dividend of US$0.40 per share (par value of US$10.00 each),
payable on May 17, 2004 to the registered holders of preferred
shares as of April 30, 2004.
As of April 30, 2004, BLADEX's preferred shares had an aggregate
par value of US$9,139,180.
For further information concerning the payment of dividends,
CONTACT:
Luisa Lin de Polo
Assistant Manager
Shareholder Relations
BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
Calle 50 y Aquilino de la Guardia
P.O. Box 6-1497 El Dorado
Panama, Republic of Panama
Phone: (507) 210-8667
Fax: (507) 210-8666
E-mail: lpolo@blx.com
or
Carlos Yap S.
Senior Vice President
Finance and Performance Management
BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
Calle 50 y Aquilino de la Guardia
P.O. Box 6-1497 El Dorado
Panama, Republic of Panama
Phone: (507) 210-8581
Fax: (507) 215-7385
E-mail: cyap@blx.com
=================
V E N E Z U E L A
=================
PDVSA: Unit Signs Aluminum Supply Deal
--------------------------------------
Bariven, a procurement subsidiary of Venezuelean state oil
company Petroleos de Venezuela, has signed with Venezuelan
aluminum reducer Alcasa a US$20 million rolled products deal for
use in boat building, BNamericas reports. According to Alcasa, a
subsidiary of state-owned heavy industry holding company CVG,
the deal will reduce Venezuela's aluminum imports and strengthen
the aluminum processing industry. It will also cover Venezuelan
market demand for aluminum hard-rolled products, especially for
the shipbuilding and dockyard industry.
The contract was arrived at under a trade accord signed by PDVSA
and CVG in 2003. The accord encompasses the supply of rolled
products, profiles and structures for construction and other
aluminum products that can be produced and/or supplied by
Alcasa.
PDVSA: To Send "Test" Shipment of Ethanol-Ready Gasoline to U.S.
----------------------------------------------------------------
In line with new U.S. environmental guidelines, Venezuelan state
oil company Petroleos de Venezuela S.A. (PDV.YY) will send this
month its first "test" shipment of summer-grade, ethanol-ready
gasoline for sale in New York and Connecticut, Dow Jones says.
The shipments come after New York and Connecticut have banned
the use of methyl tertiary butyl ether (MTBE) as a gasoline
additive and shifted to ethanol.
Venezuela's shipment of a zero-MTBE gasoline called RBOB, or
reformulated gasoline for oxygenate blending, will then be mixed
by PDVSA subsidiary CITGO with ethanol at its terminals on the
U.S. East Coast, said PdVSA Vice President Ivan Hernandez. This,
he adds, will allow the company's product to meet the new
requirements.
Venezuela, a major exporter of gasoline to the U.S., is exerting
all efforts to come up with gasoline that would meet the
environmental guidelines.
SIDOR: Strike Impacts Local Manufacturers
-----------------------------------------
More than a thousand Venezuelan industries are affected by the
ongoing strike at steel maker Siderurgica del Orinoco (Sidor),
suffering production losses of some US$11 million a day, says
Reuters. Sidor suspended its deliveries last week due to the
strike which began April 22, when roughly 11,000 steel workers
picketed the company's installations over demands for back pay
and 20% of Sidor's stock. As a result, supplies to local
industries, including metal processors, food industry packagers
and auto part manufacturers, have been disrupted.
"Due to the halt in deliveries ... many companies have been
forced to either close or substantially cut their output,"
Alfredo Gibbs, president of Venezuela's Mining and Metallurgical
Industries Association, said. Some 30,000 local manufacturing
jobs could be at risk if the strike went on, he added.
The stoppage at Sidor, jointly owned by a group of South
American companies and the Venezuelan government, has already
cost the steelworks at least US$30 million so far in lost
production and sales, officials said.
***********
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
Lucilo Junior M. Pinili, 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
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Information contained herein is obtained from sources believed
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