/raid1/www/Hosts/bankrupt/TCRLA_Public/040617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, June 17, 2004, Vol. 5, Issue 119
Headlines
A R G E N T I N A
BAISUR: Judge Approves Creditor's Bankruptcy Demand
FINCA DORADA: Court Favors Creditor's Bankruptcy Petition
INDUSTRIAS PLASTICAS: Bankruptcy Court Rules to Liquidate
INFOREXCO: Enters Bankruptcy on Court Orders
MAKLAYR: Declared Bankrupt by Court
PACA S.R.L.: Moves Into Reorganization Phase
PALAGI HERMANOS: Proceeds With Reorganization by Court Order
PERFUMERIAS SAN REMO: Debt Payments Halted, Set To Reorganize
THE FOX GROUP: Court Issues Liquidation Order
TRANSKY: Liquidates Assets to Pay Debts
SERBAU: Court Finds In Creditor's Favor, Bankruptcy Initiated
* Argentina To Make $316M Payment to IMF
B E R M U D A
ENRON: Gets Additional Extension to Remedy Finances
FOSTER WHEELER: Awarded Two ERGMED Contracts Totalling $160M
NORTHERN OFFSHORE: Details Restructuring After Missing Payment
B R A Z I L
BRASKEM: Closes $200 Million Export Pre-Payment Facility
CESP: To Sell 600,000Mwh Friday
NET SERVICOS: President Says Debt Accord With Creditors Near
C O L O M B I A
EMCALI: Offering Amnesty, Debtor Incentives for Repayment
E C U A D O R
PETROECUADOR: ChevronTexaco Files Claim to Enforce Obligations
M E X I C O
PEMEX REFINACION: Judge's Ruling May Prove Costly
WBC: To Seek Chapter 7 Bankruptcy Liquidation
T R I N I D A D & T O B A G O
BWIA: Ground Collision Causes Costly Plane Repairs
BWIA: Gets Support From Barbados
V E N E Z U E L A
PDVSA: Special Fund Creation Spurs Apprehension Among Experts
- - - - - - - - - -
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A R G E N T I N A
=================
BAISUR: Judge Approves Creditor's Bankruptcy Demand
---------------------------------------------------
Buenos Aires-based marine transporter Baisur S.A. was declared
bankrupt after Judge Ojea Quintana of the city's Court No. 12
endorsed the petition of Mr. Fernando Martinez for the Company's
liquidation. La Nacion reports that Mr. Martinez has claims
totaling US$37,500 against the company.
The court assigned Ms. Nelia Schub to supervise the liquidation
process as trustee. She will validate creditors' proofs of claim
until August 23, 2004.
CONTACT: Baisur S.A.
Arenales 1115
Buenos Aires
Ms. Nelia Schub, Trustee
Paraguay 1307
Buenos Aires
FINCA DORADA: Court Favors Creditor's Bankruptcy Petition
---------------------------------------------------------
Laboratorios Argentinos Farmesa SAIC successfully sought for the
bankruptcy of Finca Dorada S.A. after Judge Fernandez of Buenos
Aires Court No. 19 declared the Company bankrupt, reports La
Nacion.
As such, the refrigerator supplier will now start the bankruptcy
process with Mr. Manuel Arias as trustee. Creditors of the
Company must submit their proofs of claim to the trustee before
August 10, 2004 for authentication.
Laboratorios Argentinos Farmesa SAIC asked for the Company's
liquidation after the latter failed to pay debts amounting to
US$4,835.12. Clerk No. 38, Dr. Johnson, assists the court on the
case, which will end in the liquidation of all of its assets.
CONTACT: Finca Dorada S.A.
Gascon 246
Buenos Aires
Mr. Manuel Arias, Trustee
Conesa 3518
Buenos Aires
INDUSTRIAS PLASTICAS: Bankruptcy Court Rules to Liquidate
---------------------------------------------------------
Judge Ojea Quintana of Buenos Aires Court No. 12 declared local
company Industrias Plasticas de las Des S.R.L. bankrupt, relates
La Nacion. The bankruptcy motion was filed by Union Obreros y
Empleados Plasticos for US$638.10 in unpaid debts.
The Company will undergo the bankruptcy process with Mr. Luis
Krajl as trustee. Creditors are required to present their proofs
of claims to the trustee for verification before August 30,
2994.
Creditors who fail to have their claims authenticated before the
said date will be disqualified from the payments that will be
made after the Company's assets are liquidated at the end of the
bankruptcy process.
Dr. Medici, Clerk No. 24, assists the court on the case.
CONTACT: Industrias Plásticas de las Des S.R.L.
Echeverria 1230
Buenos Aires
Mr. Luis Kralj, Trustee
Bouchard 468
Buenos Aires
INFOREXCO: Enters Bankruptcy on Court Orders
--------------------------------------------
Inforexco S.A. of Buenos Aires will enter bankruptcy protection
after a local court ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to the
court-appointed trustee who will supervise the liquidation
proceedings.
Infobae reports that the court selected Mr. Jacobo Alfredo
Shalum as trustee. He will be verifying creditors' proofs of
claim until the end of the verification phase on August 18,
2004.
Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on September 29, 2004 followed by the general report, which is
due on November 10, 2004.
CONTACT: Mr. Jacobo Alfredo Shalum, Trustee
Lavalle 1672
Buenos Aires
MAKLAYR: Declared Bankrupt by Court
-----------------------------------
Maklayr S.A. is set to begin the liquidation process after a
Buenos Aires court decreed the company bankrupt. The bankruptcy
pronouncement will transfer control of the Company to a court-
appointed trustee. However, the name of the trustee as well as
relevant dates pertaining to the bankruptcy has not been
released.
CONTACT: Maklayr S.A.
Buenos Aires
PACA S.R.L.: Moves Into Reorganization Phase
--------------------------------------------
A Civil and Commercial court in Mar del Plata issued a
resolution opening the reorganization of Paca S.R.L., states
Infobae. This pronouncement authorizes the Company to begin
drafting a settlement proposal with its creditors in order to
prevent the liquidation of the company.
The reorganization also allows the Company to retain control of
its assets subject to certain conditions imposed by Argentine
law and the oversight of the court appointed trustee.
Mr. Benjamin E. Rubio will serve as trustee during the course of
the reorganization. He will be validating creditors' proofs of
claims until August 6, 2004. The results of the verification
will be presented in court as individual reports on September
21, 2004.
The trustee is also obligated to give the court a general report
of the case on November 1, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the company's accounting and business records.
Paca S.R.L. will present the completed settlement proposal to
its creditors during the informative assembly scheduled on May
5, 2005.
CONTACT: Paca S.R.L.
Rivadavia 2527/37
Mar del Plata
Mr. Banjamin E. Rubio
25 de Mayo 2980
Mar del Plata
PALAGI HERMANOS: Proceeds With Reorganization by Court Order
------------------------------------------------------------
Judge Fernandez of Buenos Aires Court No. 19 approved the
insolvency petition filed by Palagi Hermanos Sacifi, reports
local news source La Nacion. The auto-part retailer, which
listed assets of US$1,480,040.88 and liabilities of US$
1,808,408.57, will undergo reorganization under the supervision
of Mr. Luis Kurklis, the court-appointed trustee.
Mr. Kurklis will verify creditors' proofs of claim until
September 13, 2004. Verifications are done to ascertain the
nature and amount of the Company's debts.
The verified claims will serve as the basis for the settlement
proposal to be presented by the company during the informative
assembly scheduled on June 9 next year.
Clerk No. 37, Dr. Mazzoni, assists the court on the case.
CONTACT: Palagi Hermanos Sacifi
Lavalle 1672
Buenos Aires
Mr. Luis Kurklis, Trustee
Lavalle 1819
Buenos Aires
PERFUMERIAS SAN REMO: Debt Payments Halted, Set To Reorganize
-------------------------------------------------------------
Judge Dieuzeide of Buenos Aires Court No. 1 is currently
reviewing the merits of Perfumerías San Remo Sacif's petition to
reorganize. La Nacion recalls that the Company filed the
petition following cessation of debt payments since May 2002.
Reorganizing will allow the perfume distribution company to
avoid bankruptcy by negotiating a settlement with its creditors.
Clerk No. 1, Dr. Fernandez Garello, assists the court on this
case.
CONTACT: Perfumerías San Remo Sacif
Avenida Independencia 1992
Buenos Aires
THE FOX GROUP: Court Issues Liquidation Order
---------------------------------------------
The Fox Group S.A. will begin liquidating its assets after a
local court issued a bankruptcy order on the Company, states
Infobae. Under bankruptcy protection, a trustee will assume
control of the Company to ensure the proper disposal of assets
in favor of creditors. The news report did not reveal the name
of the trustee nor the significant dates in the liquidation.
CONTACT: The Fox Group S.A.
Buenos Aires
TRANSKY: Liquidates Assets to Pay Debts
---------------------------------------
A Buenos Aires Civil and Commercial court issued a bankruptcy
ruling against Transky S.R.L. after the Company defaulted on its
debt payments, reports local news source Infobae.
With the Company's bankruptcy underway, a court-appointed
trustee will assume control of the company and direct the
liquidation process up to the eventual sale of the Company's
assets to repay its obligations.
CONTACT: Transky S.R.L.
Buenos Aires
SERBAU: Court Finds In Creditor's Favor, Bankruptcy Initiated
-------------------------------------------------------------
Serbau S.R.L. entered bankruptcy after Judge Fernandez of Buenos
Aires Court No. 19 approved a bankruptcy motion filed by Alex
Mecanismos S.A. According to La Nacion, the Company's failure to
pay US$26,297.17 in debt prompted the petition.
Working with Dr. Johnson, the city's Clerk No. 38, the court
designated Mr. Juan Poggio as trustee for the bankruptcy
process. The trustee'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 trustee before August 9, 2004.
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: Serbau S.R.L.
Avenida Gaona 3341
Buenos Aires
Mr. Juan Poggio, Trustee
San Martin 66
Buenos Aires
* Argentina To Make $316M Payment to IMF
----------------------------------------
Argentina will pay the International Monetary Fund (IMF) US$316
million on Friday, according to an ISI Emerging Markets report.
According to an expert, whose name was not disclosed, the
payment can be made using a third of the dollars that Banco
Nacion has bought under the Treasury's name since April or with
Central Bank's reserves.
The IMF has promised to return the payment once it approves the
third revision of goals. However, President Nestor Kirchner
wants the IMF to give a clear sign of its approval of the goals
before it hands over the capital as a way to avoid the political
cost of making an early payment.
IMF head, Rodrigo Ratto, is expected to travel to Argentina at
the end of the month to announce the approval of the State's
goals.
=============
B E R M U D A
=============
ENRON: Gets Additional Extension to Remedy Finances
---------------------------------------------------
Enron Re, a subsidiary of bankrupt Enron Corporation, secured
another 12-month deferment of the liquidation petition
originally issued against the Company in January 2002. Supreme
Court Judge Ian Kawaley approved Enron Re's request on Friday in
order to give the Company more time to return to solvency. The
Royal Gazette reports that the company's joint provisional
liquidator and the Supervisor of Insurance supported the
request.
Wakefield Quin lawyer Lesley Basden defended the adjournment in
court by saying that Enron Re could likely fix its financial
problems after successfully renegotiating some of its insurance
contracts. Ms. Basden adds, "Basically the Supervisor of
Insurances sees this in the best interest of creditors and has
no problem."
Enron Re's financial position stands at US$7.41 million as of
May 31. However, the amount of the company's liabilities at that
period is still unclear.
The Bermuda Monetary Authority and the Supervisor of Insurance
issued the liquidation petition in 2002 after the Company
reported assets US$9.58 million and liabilities of US$9 million,
leaving it with less than the minimum US$1 million solvency
margin.
FOSTER WHEELER: Awarded Two ERGMED Contracts Totalling $160M
------------------------------------------------------------
Foster Wheeler Ltd. (OTCBB:FWLRF) announced Tuesday that its
subsidiary Foster Wheeler Italiana has been awarded two
contracts by ERG Raffinerie Mediterranee (ERG MED) for the
expansion of the existing power station and for the realization
of a new ultra-desulfurization unit at ERGMED's owned and
operated ISAB Refinery (South Plants) at Priolo Gargallo, Italy.
Both contracts call for Foster Wheeler to provide engineering,
procurement and construction supervision services (EPC). Total
investment cost of the two projects is in excess of $160
million. The terms of the contracts were not disclosed.
The expansion of the existing power station consists of one 72
MW turbogas and one heat recovery steam generator (HRSG) with
postfiring and will bring the total capacity of the power plant
to 99 MW. The ultra-desulfurization unit will produce gasoil
with low sulfur content (less than 10 ppm) in order to meet the
new European Specifications for Auto Oil.
Both plants will be completed by the end of 2005.
"The award of these two contracts reinforces the longstanding
relationship that Foster Wheeler Italiana has with ERG and is a
recognition of our ability to deliver plants to the full
satisfaction of our clients," said Umberto della Sala, president
and chief executive officer, Foster Wheeler Continental Europe.
The contracts were booked in the fourth quarter of 2003 and the
first quarter of 2004.
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, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, 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
NORTHERN OFFSHORE: Details Restructuring After Missing Payment
--------------------------------------------------------------
Northern Offshore Ltd. announced Tuesday that it did not make
the US$7.2 million interest payment due on May 15, 2004 in
connection with its 10% senior notes due 2005, which constitutes
an event of default under the indenture governing the senior
notes. However, the Company announced that it has commenced
discussions with an unofficial committee of noteholders
regarding a potential restructuring of the Company.
As previously announced on June 1, 2004, the Company has
proposed a transaction whereby the Company's senior notes
together with its Norwegian krone-denominated floating rate
notes due 2004 would be exchanged for newly issued shares of
common stock representing 85% of the Company's fully diluted
share capital, with the remaining 15% to be retained by current
shareholders. The transaction would be consummated under
Bermuda law through a scheme of arrangement and an increase in
share capital approved by Northern Offshore's shareholders.
Additionally, the Company anticipates repaying the Company's
secured debt using a portion of its existing cash balance such
that the Company would be debt free following the transaction.
The Company believes it is in the best interests of all
stakeholders to implement a restructuring as quickly as
possible. To that end, the Company is working with a committee
of noteholders to work toward implementing a consensual
transaction. To facilitate this process, the Company hired
Houlihan Lokey Howard & Zukin (Europe) Ltd as its financial
advisor to assist in implementing the plan.
It is the Company's opinion that the implementation of such a
plan is critical to the continued operation of the Company.
Absent a consensual agreement, the Company believes it may be
forced to appoint a Bermuda-based liquidator who will be
responsible for the liquidation of the Company's assets for the
benefit of its creditors. It is, in the Company's opinion, most
likely that the Company's current equity would have no value and
its unsecured debt would be substantially impaired in such a
liquidation process.
The Board of Directors of Northern Offshore Ltd.
CONTACT: NORTHERN OFFSHORE LTD.
Tor Olav Trøim Tel: 44 77 34 97 65 75
Jon-Aksel Torgersen Tel: 47 22 93 60 00
HOULIHAN LOKEY HOWARD & ZUKIN
Joseph Swanson, Director Tel: 44 20 7747 2727
Peter Marshall, Director Tel: 44 20 7747 2724
Joseph Cleverdon, Associate Tel: 44 20 7747 2735
===========
B R A Z I L
===========
BRASKEM: Closes $200 Million Export Pre-Payment Facility
--------------------------------------------------------
BRASKEM S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), leader
in the thermoplastic resins segment in Latin America and among
the five largest Brazilian privately owned industrial companies,
announced Tuesday the closing of an Export Prepayment
transaction ("EPP") in an aggregate amount of US$200 million.
Calyon New York Branch and WestLB AG New York arranged the
transaction in the international banking market and Natexis
Banques Populaires participated in the transaction as
"syndication agent." The initial principal amount of the
financing was of US$125 million, but this amount was increased
to US$200 million due to increased demand by the banks in the
syndicate. The transaction contemplates the issuance of two
tranches: one in the amount of US$145 million that matures in
three and a half years and bears interest at the rate of LIBOR
plus 3.5% per annum; and another in the amount of US$55 million
that matures in five years and bears interest at the rate of
LIBOR plus 4.5% per annum.
This transaction is important strategically, as it is designed
to achieve the following objectives:
(1) amortize international capital market ("Bonds")
transactions in an aggregate amount of US$221 million that
mature between July and October 2004;
(2) extend the average tenor of debt to 2.7 years at
competitive costs that are less than Braskem's current
average cost of debt in US dollars, which currently
amounts to 8.5% per year;
(3) reduce Braskem's foreign exchange rate risk by
refinancing maturities with the proceeds from EPP, which
EPP transaction creates a natural (operational) hedge; and
(4) differentiate Braskem in the international bank trade
finance market, which will provide competitive alternative
financing for its import and export flows.
Paul Altit, Vice President of Finance and of Investor Relations
of Braskem, stated: "Braskem reaffirms its commitment to
prioritize the use of its cash flows for the repayment of debt,
as it continues to reduce the cost and increase the average
tenor of its debt through operations designed to reduce its
foreign exchange rate risk."
Braskem, a world-class Brazilian petrochemical company, is a
leader in the thermoplastic resins segment in Latin America, and
is among the five largest Brazilian privately-owned industrial
companies. The Company operates 13 manufacturing plants located
throughout Brazil, and it has a yearly production capacity of
5.0 million of tons of petrochemical products.
CONTACT: Vasco Barcellos
Investor Relations - Manager
Phone: (55 11) 3443 9178
E-mail: vasco.barcellos@braskem.com.br
Jose Marcos Treiger
Investor Relations - Director
Phone: (55 11) 3443 9529
E-mail: jm.treiger@braskem.com.br
Luiz Henrique Valverde
Investor Relations - Manager
Phone: (55 11) 3443 9744
E-mail: luiz.valverde@braskem.com.br
CESP: To Sell 600,000Mwh Friday
-------------------------------
Brazilian power generator Cesp will auction on Friday 600,000MWh
to be delivered between June and end-August to the country's
southern, southeastern and center-western regions. Citing an
announcement on the Company's Web site, Business News Americas
reports that the utility has already invited companies to the
said bidding.
The opening bidding price is BRL41.80 (US$13.40) a MWh, and
power will be sold in four blocks of 150,000MWh. This is one of
several Cesp power offerings to place power on the market
following the conclusion of existing contracts.
Cesp, which is controlled by the Sao Paulo state government, has
been facing declining revenue as initial contracts have been
expiring at a rate of 25% a year since 2003. Power prices in
Brazil are currently low because of an excess power supply
following the 2001-2002 rationing and an economic slump in 2003.
Cesp reported a disappointing net loss of BRL112.2 million
($1=BRL3.1) in the first quarter compared to a year-ago net
profit of BRL310 million.
CONTACT: Companhia Energetica De Sao Paulo
Rua da ConsolaO o, 1.875
CEP 01301 -100 S o Paulo, Brazil
Phone: +55-11-234-6322
Fax: +55-11-287-0871
Home Page: http://www.CESP.com.br/
Contact:
Mauro G. Jardim Arce, Chairman
Ruy M. Altenfelder Silva, Vice Chairman
Vicente Kazuhiro Okazaki, Finance Director
NET SERVICOS: President Says Debt Accord With Creditors Near
------------------------------------------------------------
Net Servicos de Comunicacao is close to wrapping up the
renegotiation of its debt, the Brazilian pay TV provider's Chief
Executive Francisco Valim was cited by Reuters Tuesday as
saying.
"The term that I set out is still relevant. I said in the first
semester, didn't I?" Mr. Valim said.
At the end of 2003, the Company's net debt amounted to BRL1.14
billion, with 59% representing dollar-indexed liabilities. An
estimated BRL1.02 billion of Net's BRL1.14 billion net debt is
included in the restructuring agreement.
Details of the proposed restructuring haven't been disclosed but
previous reports have suggested that options may include the
swapping of debt for equity in Net and the rescheduling of
payments over a longer period.
In the meantime, Valim also reaffirmed that Organizacoes Globo,
Net's parent company, was not negotiating Net's sale, nor is
there any interest in selling the Company's cable network.
Some in the market have speculated that Mexican telephone and
retail magnate Carlos Slim might be interested in buying Net
after he expressed interest in investing in Brazilian cable
television last month.
Slim declined to comment at that time on whether he was in
negotiations to buy Net, whose infrastructure would complement
the tycoon's most recent acquisition, Brazilian long-distance
company Embratel.
===============
C O L O M B I A
===============
EMCALI: Offering Amnesty, Debtor Incentives for Repayment
---------------------------------------------------------
Colombian multi-utility Emcali has offered to help its debtors
pay their obligations with the Company by putting forward an
amnesty that will be open until July 25. Business News Americas
reports that Emcali has offered to clear all interest charges
for debtors who pay their total outstanding amount.
Those that initially pay 50% with an agreement to clear their
debt within three months will receive an 80% interest discount.
Debtors that pay 30% up front and the remainder over six months
will pay only 50% of their interest.
Emcali is offering the amnesty in a bid to receive 10% of COP160
billion (US$58mn) in unpaid accounts.
=============
E C U A D O R
=============
PETROECUADOR: ChevronTexaco Files Claim to Enforce Obligations
--------------------------------------------------------------
ChevronTexaco Corp. (ChevronTexaco) and its subsidiary Texaco
Petroleum Co. (TexPet) have filed a legal action to enforce
their rights under the terms of a Joint Operating Agreement
(JOA) and to require Petroecuador to fulfill its obligation to
indemnify ChevronTexaco for any and all claims, including
environmental claims, arising from TexPet's role as operator in
a former oil production consortium with Petroecuador. In their
claim, ChevronTexaco and TexPet assert that under the terms of
the JOA, which dictates the rights and responsibilities for
members of the former oil consortium, Petroecuador is
responsible for all fees, costs and expenses incurred by
ChevronTexaco and TexPet related to the pending litigation
against the companies, including any final judgments that may be
rendered against ChevronTexaco in Ecuador.
The JOA provides that any dispute between the parties that
relates to the consortium is to be settled by arbitration in the
state of New York in the United States, in accordance with rules
established by the American Arbitration Association. The
judgment of the arbitration panel will be legally binding.
In a statement made Tuesday, Ricardo Reis Veiga, vice president
and general counsel, Latin America Products for ChevronTexaco,
said, "We are filing this claim because to date Petroecuador has
steadfastly failed to carry out its responsibilities under the
Joint Operating Agreement, which is a legally binding contract."
In the claim filed on June 11, 2004, ChevronTexaco and TexPet
are seeking enforcement of the JOA's requirement that:
The Parties shall indemnify and save the Operator harmless from
all claims and demands which may be made against Operator by
third parties due to, arising out of, or related to the
performance of the Operator of its duties under this agreement.
(TexPet was the operator of the consortium, and PetroEcuador was
majority owner.)
Following the conclusion of TexPet's participation in the
consortium in 1992, the parties agreed to divide responsibility
for remediation of the sites that the consortium had operated.
Having conducted its share of the environmental remediation,
TexPet was fully discharged from any further liability by
Petroecuador and the Republic of Ecuador, who specifically
agreed to "release, acquit and forever discharge" the company
from all further obligations and responsibilities. ChevronTexaco
and TexPet assert that the completion of the remediation
program, along with the release, fulfilled any responsibilities
of TexPet for the operations formerly conducted by the
consortium, which has been 100 percent controlled by
Petroecuador since 1990.
===========
M E X I C O
===========
PEMEX REFINACION: Judge's Ruling May Prove Costly
-------------------------------------------------
State-owned Pemex Refinacion could pay up to US$35.1 million in
compensation after a Mexican court ruled that it had reneged on
a contract with Andiclub, a key transport firm managing diesel
distribution in Mexico.
Andiclub president Mr. Jose Antonio Beltran Mata filed the case
in 1999 to protest his company's exclusion from a distribution
deal allowing transport companies and distributors to purchase
diesel from Pemex Refinacion and resell it to gasoline stations.
According to El Economista, Andiclub invested US$20 million for
special delivery trucks and a storage facility at the behest of
Pemex. However, the state company canceled the contract without
reason and Andiclub suffered damages as a consequence.
Already, Pemex Refinacion has been notified of the judge's
decision. As such, it must notify the board of Andiclub this
week of what steps to take. Otherwise, Andiclub will proceed to
seize Pemex accounts.
WBC: To Seek Chapter 7 Bankruptcy Liquidation
---------------------------------------------
The World Boxing Council, the Mexico City-based sanctioning body
that recognizes many of boxing's top champions, will file for
Chapter 7 bankruptcy liquidation proceedings. The WBC was forced
into Chapter 11 bankruptcy in 2003 after a New York jury awarded
Graciano Rocchigiani US$31 million dollars based on his
allegation that the WBC stripped him of his world title.
The WBC had hoped to persuade the Court and the jury that it was
not liable and not responsible for the harm Rocchigiani alleged.
But, despite a vigorous defense, the WBC did not prevail.
"As much as the WBC would like to satisfy the judgment, it is
simply impossible for the WBC, a not-for-profit organization, to
pay Mr. Rocchigiani the staggering US$31 million dollar award.
Still, at all times, the WBC has done everything in its power to
comply with the procedures and orders of the Federal Court in
New York and of the Bankruptcy Court in Puerto Rico," WBC
President Jose Sulaiman said in a statement.
In a last attempt to give Rocchigiani redress, the WBC recently
made a substantial monetary settlement offer to Rocchigiani.
Unfortunately, Rocchigiani rejected this generous offer, which
itself far exceeds what Rocchigiani could hope to recover in WBC
liquidation proceedings.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Ground Collision Causes Costly Plane Repairs
--------------------------------------------------
Cash-Strapped Trinidad carrier BWIA stands to lose tens of
thousand of dollars in repairs, even with insurance coverage,
after an accident severely damaged one of its Boeing 737's last
Friday. The tail part of the 737's fuselage suffered extensive
damage after a water-truck apparently rammed into it a few hours
before the aircraft was scheduled to board passengers on the
morning of June 11.
Representatives from BWIA are working with agents from Piarco
International Airport, the Civil Aviation Authority, and
Airports Authority, in investigating the accident.
A repair crew from Boeing is expected to finish repairs on the
plane in about a week.
CONTACT: BRITISH WEST INDIES AIRWAYS
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, CFO (Trinidad)
BWIA: Gets Support From Barbados
--------------------------------
Mr. Noel Lynch, Tourism Minister of Barbados, voiced his
country's support for the ailing Trinidad airline BWIA by
emphasizing the carrier's role in promoting tourism in the
Caribbean. In a speech at the annual Caribbean Hotel Industry
Conference (CHIC), the tourism minister said that Barbados
continues to encourage BWIA's restructuring efforts. He added
that the airline would have to be re-capitalized so that it can
become more sustainable and eventually rise from debt.
Asia Intelligence Wire reports that Lynch also discussed the
possibility of merging the operations of BWIA with the Antigua-
based Leeward Islands Air Transport (LIAT) once the Trinidad
carrier fixes its financial troubles.
BWIA operates at least 20 flights daily into the Grantley Adams
International Airport in Barbados.
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V E N E Z U E L A
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PDVSA: Special Fund Creation Spurs Apprehension Among Experts
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Some Venezuelan professionals are raising their eyebrows over a
move to directly transfer income from Petroleos de Venezuela
(PDVSA) to the National Executive without going through the
Venezuelan Central Bank (BCV). Teodoro Petkoff, a former
Minister of Coordination and Planning (Cordiplan), believes that
state petroleum legislation allows the establishment of an
external reinvestment fund, "but what's troublesome is not
knowing how that fund will be managed."
"The quantity that the BCV seems to have authorized so PDVSA can
maintain an outside fund is US$2 billion. The situation is
murky, because we have only been informed about the creation of
this fund, but not how it will be managed. This is obscure, so
therefore, any speculation is possible," said Mr. Petkoff.
Diego Luis Castellanos, president of the central bank, sent a
letter to Venezuela's congress to inform lawmakers that the fund
would be created with $1 billion. Castellanos said PDVSA can
legally funnel resources into the fund as long as it is used to
finance education, infrastructure, health care and agricultural
programs.
Meanwhile, a director of Venezuela's central bank said Monday
that regulations must be established for the use of the
development fund.
"There must be a manner for administrating the fund ... for
auditing it," Mr. Domingo Maza, one of five central bank
directors, told the state-run Venpres news agency.
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Copyright 2004. All rights reserved. ISSN 1529-2746.
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