/raid1/www/Hosts/bankrupt/TCRLA_Public/040705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, July 5, 2004, Vol. 5, Issue 131
Headlines
A R G E N T I N A
ABEMERC: Verification Deadline Approaches
ALBETE: Court Deems Bankruptcy Necessary
ASOCIACION MUTUAL: Initiates `Liquidacion Judicial' Proceedings
BANCO DE GALICIA: Notifies SEC of Late Filing
BIB INC: Court Orders Liquidation
CLAXSON INTERACTIVE: Notifies SEC of Late Filing
CONTAINER LEASING: Secures Court Approval to Reorganize
COOPERATIVA DE TRABAJO: Court Declares Company Bankrupt
DIAL THRU: Liquidates Assets to Pay Debts
EXPRESO ANGELICA: Reports Submission Set
FINTARIA: Court Rules Liquidation
GRUPO CONCESIONARIO: Agrees on ARS159 Mln Debt Refinancing
IMPSAT: Allocates $150M for Latin America Over the Next 5 Yrs.
IRSA: Noteholders Exercise Warrant Rights
IRSA: Signs Two-Year Integration Deal With Local Subsidiaries
JUAN MINETTI: Makes $13M Payment to Creditors
MAXON SA: Court OKs Creditor's Bankruptcy Call
MODAS Y DEPORTES: Judge Approves Bankruptcy
PETROBRAS ENERGIA: Notifies SEC of Late Filing
SUSANNA CRUZ: Reports Submission Set
TOURNET S.A.: Court Issues Bankruptcy Order
VINICIUS S.A.: Court Favors Creditor's Bankruptcy Petition
* ARGENTINA: Businessman Lodges Class Action in S.D. New York
B E R M U D A
FOSTER WHEELER: Awarded SABIC Management Services Contract
B R A Z I L
GERDAU: To Invest $27M on Unit's Expansion, Modernization
NET SERVICOS: S&P Leaves Ratings Unchanged
PARMALAT BRAZIL: Suffers $75M Net Loss for 2003
TELEMAR: Comments On Court's Decision About Tariffs
C H I L E
ENERSIS: Fitch Affirms Ratings At 'BBB-'
MADECO: Sells Remaining Shares Of Capital Increase
TELEFONICA CTC: Wants Shareholders to Accept Sale
J A M A I C A
KAISER ALUMINUM: Completes Sale of Interests in Alpart
M E X I C O
CORPORACION DURANGO: Notifies SEC of Late Filing
GRUPO TMM: Extends Consent Date for Exchange Offer to July 16
PARMALAT MEXICO: Lala To Formalize Acquisition of Assets Today
SATMEX: Misses Principal Payment on Notes, Mulls Bankruptcy
P A R A G U A Y
MILLICOM INTERNATIONAL: Launches GSM Services in Paraguay
P E R U
SHELL: Announces Portfolio Actions, Writedowns
- - - - - - - -
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A R G E N T I N A
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ABEMERC: Verification Deadline Approaches
-----------------------------------------
The verification of claims for the Abemerc S.A. bankruptcy will
end on August 27, 2004 according to Argentine news source
Infobae. Creditors with claims against the bankrupt company must
present proof of the liabilities to Mr. Jorge Daniel Alvarez,
the court-appointed trustee, before the deadline.
CONTACT: Mr. Jorge Daniel Alvarez
Bartolome Mitre 1738
Buenos Aires
ALBETE: Court Deems Bankruptcy Necessary
----------------------------------------
Albete S.A., which was undergoing reorganization, entered
bankruptcy on orders from a local court in Buenos Aires. Infobae
relates that the court appointed Ms. Liliana Maria Montoro, to
be the trustee on the case. The trustee will conduct the credit
verification process "por via incidental."
CONTACT: Mr. Liliana Maria Montoro, Trustee
Sarmiento 517
Buenos Aires
ASOCIACION MUTUAL: Initiates `Liquidacion Judicial' Proceedings
---------------------------------------------------------------
The local court of Tandil has issued a "Liquidacion Judicial"
order against Asociacion Mutual de Empleados de La Sanidad y
Afines (AMESYA).
Mr. Miguel Ibarlucia, who has been appointed as trustee, will
verify creditors' claims until August 3, 2004 and then prepare
the individual reports based on the results of the verification
process.
The individual reports will then be submitted to court on
September 17, 2004 followed by the general report on November 1,
2004.
CONTACT: Asociacion Mutual de Empleados
de La Sanidad y Afines (AMESYA)
Pasaje Raul Salceda 724
Barrio 21 de Abril
Tandil
Mr. Miguel Ibarlucia, Trustee
Lamadrid 333
Tandil
BANCO DE GALICIA: Notifies SEC of Late Filing
---------------------------------------------
Throughout all of 2003, Banco de Galicia y Buenos Aires S.A.
(the "Bank" "Registrant"), a 93.6% subsidiary of the registrant
that carries out substantially all of the registrant's operating
activities, was engaged in negotiations with members of an ad
hoc steering committee representing the Bank's principal bank
and multilateral agency creditors (together, the "bank
creditors") regarding the restructuring of the foreign debt of
the Bank's head office and Cayman Branch. The registrant had an
active role in the Bank's foreign debt restructuring,
particularly in connection with the registrant's issuance of
preferred shares, which were offered to the Bank's creditors as
one of the restructuring exchange options.
In December 2003, the Bank announced the terms of the
restructuring to its bank creditors and bondholders, and, on May
18, 2004, the Bank successfully closed the restructuring of
$1,320.9 million of its foreign debt, representing 98.2% of the
foreign debt eligible for restructuring. The complex
restructuring involved multiple loan facilities, bond indentures
and various groups of creditors.
As a result of the significant time and resources of the
registrant and the Bank that were required to be devoted to the
successful completion of the restructuring described above, the
registrant was unable to collect, process and evaluate, within
the required time period, the information required to be
disclosed in its filing on Form 20-F for the period ended
December 31, 2003 (the "annual report"), without unreasonable
effort and expense. The registrant expects that the annual
report will be filed as soon as reasonably practicable and in no
event later than the fifteenth calendar day following the
prescribed filing date.
CONTACTS: BANCO DE GALICIA Y BUENOS AIRES
Tte Gral Juan D Peron 407
Buenos Aires
Argentina
C1038AAI
Phone: +54 11 6329 0000
Fax: +54 11 6329 6100
or
Mr. Pedro Richards
+54 11434 343-7528
Web Site: http://www.bancogalicia.com.ar
BIB INC: Court Orders Liquidation
---------------------------------
Bib Inc S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by a local court in Buenos
Aires. The declaration effectively prohibits the Company from
administering its assets, control of which will be transferred
to a court-appointed trustee.
Infobae reports that the court appointed Mr. Cesar Alejandro de
Virgilis as trustee. He will be reviewing creditors' proofs of
claim until September 24, 2004. The verified claims will be the
basis for the individual reports to be presented for court
approval on November 12, 2004. Afterwards, the trustee will also
submit a general report on February 8, 2005.
CONTACT: Mr. Cesar Alejandro de Virgilis, Trustee
San Isidro Labrador 4040
Buenos Aires
CLAXSON INTERACTIVE: Notifies SEC of Late Filing
------------------------------------------------
CLAXSON INTERACTIVE GROUP INC ("Registrant") is unable to file
its Annual Report on Form 20-F for the year ended December 31,
2003 because the Registrant is experiencing delays in the
collection and compilation of certain financial information
required to be included in the Form 20-F. The Form 20-F will be
filed as soon as reasonably practicable and in no event later
than the fifteenth calendar day following the prescribed due
date.
CONTACT: Mr. Ezequiel Paz
404 Washington Ave. 8th floor
Florida, 33139, Miami Beach - USA
epaz@claxson.com
Telephone: 305-894-3574
Web Site: www.claxson.com
CONTAINER LEASING: Secures Court Approval to Reorganize
-------------------------------------------------------
The Buenos Aires civil and commercial tribunal issued a
resolution opening the reorganization of Container Leasing
S.A.C.I.I. y E. The pronouncement authorizes the Company to
begin drafting a settlement proposal with its creditors in order
to avoid liquidation.
Additionally, the reorganization allows Container Leasing to
retain control of its assets subject to certain conditions
imposed by Argentine law and the oversight of the court
appointed trustee.
Ms. Isabel Eugenia de Francesco will serve as trustee during the
course of the reorganization. She will be validating creditors'
proofs of claim until September 21, 2004. Afterwards, the result
of the verification will be presented in court as individual
reports on November 3, 2004.
The trustee is also obligated to give the court a general report
of the case on December 16, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.
The Company will present the completed settlement proposal to
its creditors during the informative assembly scheduled on June
23 next year.
CONTACT: Container Leasing S.A.C.I.I. y E.
Viamonte 1328
Buenos Aires
Mr. Isabel Eugenia de Francesco, Trustee
Pasteur 154
Buenos Aires
COOPERATIVA DE TRABAJO: Court Declares Company Bankrupt
-------------------------------------------------------
Judge Vasallo of Buenos Aires Court No. 5 declared local company
Cooperativa de Trabajo Ferrocon Ltda. "Quiebra", relates local
daily La Nacion. The court approved the bankruptcy petition
filed by Osecac, to whom the Company failed to pay debts
amounting to US$441,638.99.
The Company will undergo the bankruptcy process with Ms.
Magdalena de la Quintana as its trustee. Creditors are required
to present their proofs of claim to the trustee for verification
before September 9, 2004. Creditors who fail to have their
claims authenticated by 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. Perez Casado, Clerk No. 9, assists the court on the case.
CONTACT: Cooperativa de Trabajo Ferrocon Ltda.
Avenida Presidente Roque Saenz Pena 917
Buenos Aires
Ms. Magdalena de la Quintana, Trustee
Cerrito 1139
Buenos Aires
DIAL THRU: Liquidates Assets to Pay Debts
-----------------------------------------
Buenos Aires-based Dial Thru International de Argentina S.A.
will begin liquidating its assets following the bankruptcy
pronouncement issued by the city's civil and commercial
tribunal.
The bankruptcy ruling places the company under the supervision
of court-appointed trustee, Mr. Jorge A. Cosoli. The trustee
will verify creditors' proofs of claim until September 1, 2004.
After verifications, the validated claims will be presented in
court as individual reports on October 14,2004.
Mr. Cosoli will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on November 25, 2004.
The bankruptcy process will end with the disposal company assets
in favor of its creditors.
CONTACT: Mr. Jorge A. Cosoli, Trustee
Marcelo T de Alvear 1364
Buenos Aires
EXPRESO ANGELICA: Reports Submission Set
----------------------------------------
Mr. Hector Garcia, the trustee assigned to supervise the
reorganization of Expreso Angelica S.A., is scheduled to submit
the validated individual claims for court approval on October
22, 2004. These reports explain the basis for the accepted and
rejected claims. Likewise, the trustee is required to present a
general report on December 3, 2004.
Infobae states that the Company will present the completed
settlement proposal to its creditors during the informative
assembly on May 5, 2005.
CONTACT: Expreso Angelica S.A.
Alte F. Segui 309
Buenos Aires
Mr. Hector Garcia, Trustee
Montevideo 734
Buenos Aires
FINTARIA: Court Rules Liquidation
---------------------------------
The Buenos Aires civil and commercial tribunal ordered the
liquidation of Fintaria S.A. after the company defaulted on its
debt obligations, Infobae reveals. The liquidation pronouncement
will effectively place the company's affairs as well as its
assets under the control of Ms. Griselda Isabel Eidelstein, the
court-appointed trustee.
Ms. Eidelstein will verify creditors' proofs of claim until
August 27, 2004. The verified claims will serve as basis for the
individual reports to be submitted in court on October 13, 2004.
The submission of the general report follows on November 25,
2004.
CONTACT: Ms. Griselda Isabel Eidelstein, Trustee
Lambare 1140
Buenos Aires
GRUPO CONCESIONARIO: Agrees on ARS159 Mln Debt Refinancing
----------------------------------------------------------
Argentine toll concessionaire Grupo Concesionario del Oeste
(GCO) agreed on the refinancing of ARS159 million owed to a pool
of banks composed by Banco Rio de la Plata, BBVA Banco.
Although the debt was initially denominated in US dollars, since
the creditors were local banks, it was "pesified" at the rate of
US$1=ARS1 plus the CER adjustment coefficient.
This restructuring saved GCO from default.
The debt was due to expire in 2006, but as the Company was aware
that it would have troubles to meet the expected terms, they
decided to negotiate.
Under the new agreement, the term will be extended to 2011 and
the interest rate was changed from 8% plus CER to a fixed 12%
annual rate. No haircut will be applied.
CONTACT: Grupo Concesionario del Oeste S.A.
Autopista del Oeste Km 25,92 - (1714)
ItuzaingO - Pcia. de Bs. As. - Argentina
Tel. (54) (011) 4489-8200 (L. Rotativas)
Fax: (54) (011) 4489-8237
IMPSAT: Allocates $150M for Latin America Over the Next 5 Yrs.
--------------------------------------------------------------
A spokesperson for Impsat Fiber Networks, Inc. confirmed local
press reports that the Argentine telecoms operator will invest
US$150 million in Latin America over the next five years.
Citing Impsat chief executive Ricardo Verdaguer, Business News
Americas reports that US$50 million of the planned investments
will go to Brazil, which accounts for 15% of Impsat's revenues,
which reached US$220 million last year and is the country with
most growth potential.
There is potential in the Chile market as well, where the
company expects to make a decision late this year or early next
on whether to build a second data center, Impsat Chile country
manager Jaime Zapata told reporters Thursday. Expansion would be
financed by the parent company and Impsat already owns enough
land to build the second center, he said.
Impsat currently provides services to nearly 2,800 national and
multinational companies, financial institutions, governmental
agencies, carriers, ISPs and other service providers throughout
the region. Besides Argentina and Brazi, the Company also
operates in Colombia, Venezuela, Ecuador, Chile, Peru and the
United States.
To see latest financial statements:
http://bankrupt.com/misc/Impsat_Fiber.htm
CONTACT: Impsat Fiber Networks, Inc.
Mr. Hector Alonso
Chief Financial Officer
Mr. Facundo Castro
Investor Relations
Tel: 54.11.5170.3700
Web Site: www.impsat.com
IRSA: Noteholders Exercise Warrant Rights
-----------------------------------------
IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANONIMA announced
that on June 30, 2004, holders of the Company's Convertible
Notes that already had exercised their conversion right
exercised their warrant rights. Hence, a reduction of 300,000
warrants and an increase of 550,458 ordinary shares face value
pesos 1 (V$N 1) each was made. As a result, the amount of shares
of the Company goes from 248,252,535 to 248,802,993. The
exercised of the warrant was performed according to terms and
conditions established in the prospectus of issuance. The amount
of shares acquired is equal to the amount of shares into which
it was converted the convertible note at a price of US$ 0.6541
for each share face value pesos 1. Therefore US$ 360,054 entered
into the Company.
CONTACT: Mr. Alejandro Elsztain
Director
Tel: +011-(5411)-4344-4636
E-mail: finanzas@irsa.com.ar
Web site: http://www.irsa.com.ar
IRSA: Signs Two-Year Integration Deal With Local Subsidiaries
-------------------------------------------------------------
IRSA Inversiones y Representaciones SA (IRS), Argentina's
leading real estate development company, and two of its
subsidiaries have agreed to integrate operations and reduce
costs in a deal called "share services" agreement.
In a statement to the local stock exchange, IRSA said the two-
year agreement was signed with shopping center operator Alto
Palermo SA (APSA.BA) and agriculture unit Cresud SACIF (CRESY).
The companies didn't specify which operations would be modified
but said they are considering issues such as shareholding
structures and partial integration of their boards of directors.
However, IRSA said each company would continue to have "absolute
independence" in strategic decisions and maintain "strict
separation of assets and liabilities." IRSA, APSA and Cresud
will also keep filing their own earnings results.
JUAN MINETTI: Makes $13M Payment to Creditors
---------------------------------------------
Argentine cement producer Juan Minetti made US$13 million
principal payments to its creditors, as part of the
restructuring accords subscribed last year, the Company
announced Tuesday.
In a brief statement to the local stock exchange, Juan Minetti,
controlled by Swiss cement giant Holcim, informed it made the
payments on Monday.
The cement company closed the restructuring of US$276 million in
debt in June 2003, with the backing of creditors holding 99.3%
of its debt.
These US$13 million seem to be an advance payment, since Minetti
was not supposed to pay its restructured debt until December
2005
MAXON SA: Court OKs Creditor's Bankruptcy Call
----------------------------------------------
Maxom S.A. entered bankruptcy after Buenos Aires Court No. 18
approved a bankruptcy motion filed by Banco Rio de La Plata
S.A., reports La Nacion. The Company's failure to pay
US$30,901.48 in debt prompted the creditor to file the petition.
Working with Dr. Vivono, the city's Clerk No. 18, the court
assigned Mr. Xilef Irureta 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 claim to the trustee before September 17, 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: Maxom S.A.
Bucarelli 3032
Buenos Airos
Mr. Xilef Irureta, Trustee
Parana 145
Buenos Aires
MODAS Y DEPORTES: Judge Approves Bankruptcy
-------------------------------------------
Modas y Deportes S.R.L. was declared bankrupt after Judge di
Noto of Buenos Aires Court No. 15 endorsed the petition of Ms.
Elba Ruiz for the company's liquidation. Argentine daily La
Nacion reports that the creditor has claims totaling US$8,800
against the Company.
The court assigned Mr. Luis di Cesare to supervise the
liquidation process as trustee. He will validate creditors'
proofs of claim until September 10, 2004.
CONTACT: Modas y Deportes S.R.L.
Laprida 1259
Buenos Aires
Mr. Luis di Cesare, Trustee
Viamonte 1336
Buenos Aires
PETROBRAS ENERGIA: Notifies SEC of Late Filing
----------------------------------------------
Petrobras Energia Participaciones S.A. (the "Company") did not
file that portion of Item 18 of the annual report on Form 20-F
for the year ended December 31, 2003 (the "20-F") containing the
financial statements of Compania de Inversiones de Energia S.A.
("CIESA"), a company of which we held 50% of the share capital
as of December 31, 2003 and over which we exercised joint
control, for the fiscal years ended December 31, 2003, 2002 and
2001. CIESA's financial statements were not included in a timely
manner with the financial statements filed as part of the
Company's annual report on Form 20-F because the information
necessary could not be compiled in the form and manner required
within the prescribed time period without unreasonable effort
and expense.
Under Argentine GAAP, CIESA is reflected in the Company's
consolidated financial statements for the years ended December
31, 2003 and 2001 under the proportional consolidation method.
For purposes of the U.S. GAAP reconciliation in note 23 of the
Company's consolidated financial statements included in the 20-
F, the proportional consolidation of CIESA was reversed because
under U.S. GAAP, as compared to Argentine GAAP, CIESA had a
negative equity value during this period. This decision took
careful and lengthy analysis. When compared to our results as
reconciled to U.S. GAAP, CIESA may be deemed a significant 50
percent-or-less-owned person of the Company for the fiscal year
ended December 31, 2001 pursuant to Rule 3-09 of Regulation S-X
under the Exchange Act of 1934.
CONTACTS: Daniel E. Rennis
E-mail: drennis@petrobrasenergia.com
Alberto Jankowski
E-mail: ajankows@petrobrasenergia.com
Tel: (5411) 4344-6655
Web Site: www.petrobrasenergia.com
SUSANNA CRUZ: Reports Submission Set
------------------------------------
The individual reports pertaining to the bankruptcy of Susanna
Cruz S.R.L. will be presented for court review on September 10,
2004. Mr. Ricardo Sukiassian, the court-appointed trustee will
prepare these reports.
According to Infobae, Mr. Sukiassian is also obligated to
provide the court with a review of the Company's accounting and
business records through a general report scheduled for
submission on October 22, 2004.
CONTACT: Susanna Cruz S.R.L.
Reconquista 890
Buenos Aires
Mr. Ricardo Sukiassian, Trustee
San Martin 1009
Buenos Aires
TOURNET S.A.: Court Issues Bankruptcy Order
-------------------------------------------
Judge Favier Dubois declared Tournet S.A. bankrupt, says La
Nacion. Clerk No. 18, Dr. Tarrico Vera assists the court on the
case, which will conclude with the liquidation of the Company's
assets.
The Company's trustee, Mr. Pedro Santa Maria, will examine and
authenticate creditors' claims until August 24, 2004. This is
done to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the trustee by
the said date in order to qualify for the payments that will be
made after the Company's assets are liquidated.
CONTACT: Tournet S.A.
Florida 15
Buenos Aires
Mr. Pedro Santa Maria, Trustee
Lavalle 1430
Buenos Aires
VINICIUS S.A.: Court Favors Creditor's Bankruptcy Petition
----------------------------------------------------------
Mr. Jose Arano successfully sought for the bankruptcy of
Vinicius S.A. after Buenos Aires Court No. 18 declared the
Company bankrupt reports La Nacion.
As such, the food company will now start the bankruptcy process
under the direction of Mr. Luis Maria Guastavino. Creditors of
the Company must submit their proofs of claim to the trustee
before September 24 for authentication. Failure to do so will
mean a disqualification from the payments that will be made
after the Company's assets are liquidated.
Mr. Arano sought for the Company's bankruptcy after the latter
failed to pay debts amounting to US$10,236. Clerk No. 36 Dr.
Vivono, assists the court on the case, which will close in the
liquidation of all of its assets.
CONTACT: Vinicius S.A.
Avenida de Mayo 1245
Buenos Aires
Mr. Luis Maria Guastavino, Trustee
Nicolas Repetto 1115
Planta Baja
Buenos Aires
* ARGENTINA: Businessman Lodges Class Action in S.D. New York
-------------------------------------------------------------
Law firms Meredith Cohen Greenfogel & Skirnick, P.C. and Hagens
Berman LLP filed a class action against the Republic of
Argentina before the U.S. District Court for the Southern
District of New York.
Anchored on Rules 23(a) and 23(b)(3) of the Federal Rules of
Civil Procedure, the lawsuit defines the class as "[a]ll persons
who from the period December 23, 2001 owned bonds issued by the
Republic of Argentina who have been injured by Argentina's
default." It seeks the declaration of Ottavio Lavaggi, a
businessman, as lead plaintiff.
Filed on June 28, 2004, the complaint -- available at
http://www.researcharchives.com/bin/download?id=040702034711--
accuses the Republic of Argentina of breach of contract, breach
of duty of good faith and fair dealing, and unjust enrichment.
Accordingly, the class suffered damages "in an amount to be
ascertained at trial, but on information and belief, in excess
of US$100 billion."
Lawyers Robert A. Skirnick and Steve W. Berman have asked the
court to be appointed lead counsels for Mr. Lavaggi and all
other investors similarly situated. The complaint estimates
these investors to number at least a million and holding about
81 types of junk bonds issued between 1998 and 2001. "Roughly
9.1% of the bonds are held by U.S. citizens, 15% by Italians,
10% by Swiss citizens and 5% by German citizens," the complaint
adds.
The complaint seeks, among others, (1) an order certifying the
class as set forth and designating plaintiff as the class
representative and his counsel as class counsel; (2) a judgment
awarding plaintiff and the other members of the class
compensation for the damages, which they have sustained as a
result of the breaches of the bond agreements; (3) a judgment
awarding plaintiff's reasonable attorneys' fees, experts' fees,
interest and cost of suit; and (4) such other and further relief
as the court may deem just.
CONTACT: MEREDITH COHEN GREENFOGEL & SKIRNICK, P.C.
Robert A. Skirnick (RS 2636)
One Liberty Plaza, 35th Floor
New York, NY 10006
Phone: (212) 240-0020
- and -
HAGENS BERMAN LLP
Steve W. Berman
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101
Phone: (206) 623-7292
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FOSTER WHEELER: Awarded SABIC Management Services Contract
----------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Thursday that its
subsidiary Foster Wheeler Energy Limited has been awarded a
program management services contract by Saudi Basic Industries
Corporation (SABIC) for a new grassroots petrochemicals facility
to be built at Yanbu Industrial City, Kingdom of Saudi Arabia.
The terms of the award were not disclosed.
Foster Wheeler will perform program management contractor
services for the Yanbu Petrochemical Complex, including
preparation of front-end engineering design (FEED) and
preparation and issuance of invitations to bid for each of the
process units, including analysis and award recommendations for
engineering, procurement and construction (EPC) contractors.
Foster Wheeler will also manage all EPC contractors and provide
the overall management, coordination and control of all phases
of the program. Mechanical completion is expected at the end of
2007.
The proposed grassroots complex, which will have an annual
production capacity of 3.6 million metric tonnes, is one of the
largest petrochemical complexes to be built in the Middle East
and will include a 1.3 metric million tonnes per year ethylene
plant. The majority of the products will be exported to SABIC's
growing list of international clients.
Steve Davies, chairman and chief executive officer, Foster
Wheeler Energy Limited, said, "This is a significant win for
Foster Wheeler and reflects our competitive market position, the
quality of our engineering and our proven capacity and ability
to manage complex, world-scale projects from a single execution
center."
The booking will be included in the second quarter.
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.
CONTACT: Foster Wheeler Ltd.
Media Contact:
Maureen Bingert, 908-730-4444
or
Other Inquiries:
908-730-4000
Web site: http://www.fwc.com
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B R A Z I L
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GERDAU: To Invest $27M on Unit's Expansion, Modernization
---------------------------------------------------------
Brazilian long steelmaker Gerdau (NYSE: GGB) revealed an BRL83-
million (US$27mn) investment plan for its Gerdau Cearense unit
in the city of Maracanau in the northeastern state of Ceara,
reports Business News Americas.
Under the plan, the steel group will increase the Gerdau
Cearense plant's output by 50% to 150,000t/y over the next five
years, boost productivity by 43% and improve the quality of its
steel products earmarked for the civil construction and
industrial segments.
Already, the Gerdau group has invested BRL213 million in the
northeastern state of Ceara since late 1970s.
Meanwhile, Gerdau also announced it will supply about 30,000t of
steel products to the 452MW Peixe Angical hydroelectric project
in the central state of Tocantins.
Gerdau will sell rebars, ribbed meshes and annealed wires. The
BRL1-billion (US$317mn) Peixe Angical plant, a partnership
between federal power holding company Eletrobras, generation
subsidiary Furnas and Portuguese power group EDP, is expected to
start operations in early 2006.
Headquartered in Porto Alegre, Rio Grande do Sul, Gerdau is the
largest long steelmaker in the Americas.
CONTACT: Press Office
Tel: +55(51) 3323-2170
E-mail: imprensa@gerdau.com.br
Web Site: www.gerdau.com.br
NET SERVICOS: S&P Leaves Ratings Unchanged
------------------------------------------
Standard & Poor's Ratings Services said Thursday that its rating
on Net Servicos de Comunicacao S.A. (D/--/-) will not
immediately be affected by the company's formalization of
commitment letters with nearly 70% of its creditors agreeing to
accept Net's debt restructuring plan. To characterize the
completion of Net's debt restructuring, Standard & Poor's
expects to see a more substantial consent from creditors and a
formalization of contracts. However, Standard & Poor's
recognizes that the commitment letters are a very important move
toward resolving Net's capital structure.
The announcement that Globopar S.A. (D/-/-) has entered an
agreement with Telmex- Telefonos de Mexico S.A. de C.V. (LC-
BBB+/Stable/-; FC-BBB-/Stable/-) to sell an interest in Net will
possibly provide an incentive to resolve Net's restructuring.
Upon conclusion, Net's financial profile would improve
significantly, with its debt cut from its current R$1.4 billion
(R$1.1 billion principal plus accrued interest) to nearly R$800
million, which under the company's projections would lead to a
total debt-to-EBITDA ratio of about 2.3x and a considerably
smoother debt amortization.
CONTACT: Ms. Milena Zaniboni,
(55) 11-5501-8945
Sao Paulo, Brazil
PARMALAT BRAZIL: Suffers $75M Net Loss for 2003
-----------------------------------------------
Parmalat Brazil's 2003 corporate results released on Thursday
show the Company remains deep in the red. Associated Press
reveals that the company sustained a US$75 million net loss last
year, up 23 percent from the reported loss in 2002. 2003's net
loss, caused in part by the 3.9 percent increase in operating
expenses, is the largest ever recorded by the Company.
However, Mr. Nelson Bastos, Parmalat's head of operations in
Brazil, remains optimistic that the company will manage to
normalize cash flows this year and reclaim 65 percent of its
pre-scandal market as plants are reopened and production
resumed. Its tea and juices division is operating normally and
the production of tomato based-products and canned corn in
Aracatuba is back at full capacity.
Parmalat Brazil's operations have been adversely affected by the
accounting scandal that wrecked Italian parent company, Parmalat
Finanziaria, last year. Brazilian authorities, including the
federal police and local judges have also placed Parmalat Brazil
under scrutiny for alleged accounting irregularities.
The parent company has revealed intentions to divest more of its
holding in Latin America, particularly in Argentina and Uruguay,
following the recent sale of its Chilean unit.
TELEMAR: Comments On Court's Decision About Tariffs
---------------------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding
company of telecommunication services providers in the north,
northeastern and eastern regions of Brazil, informs that in its
opinion the High Court of Justice's (STJ) decision to apply the
IGP-DI index to adjust telecommunication tariffs, as originally
provided for in the concession agreements, strengthens both the
regulatory framework and the image of Brazil among investors
regarding contractual compliance. Additionally, this should
contribute to the success of Public-Private Partnership (PPP)
initiatives of the Brazilian Government.
Telemar reiterates its decision not to bill customers
retroactively and will not implement any action on the decision
items before fully reviewing the details. Only after the
contents of the decision are fully known and the Company has
contacted Anatel, will a final decision and timetable for
implementation be released.
CONTACT: TNE - INVESTOR RELATIONS
Email: invest@telemar.com.br
Roberto Terziani - 55 (21) 3131-1208
Carlos Lacerda - 55 (21) 3131-1314
Fax: 55 (21) 3131-1155
GLOBAL CONSULTING GROUP
Kevin Kirkeby (kkirkeby@hfgcg.com)
Tel: 1-646-284-9416 Fax: 1-646-284-9494
=========
C H I L E
=========
ENERSIS: Fitch Affirms Ratings At 'BBB-'
----------------------------------------
Fitch Ratings affirmed the international local and foreign
currency ratings of Enersis S.A. (Enersis) at 'BBB-'. The long-
term national scale corporate rating has also been affirmed at
'A(chl)'. All ratings maintain a Stable Rating Outlook.
The ratings and Outlook of Enersis reflect the success of the
company's financial strategy implemented during 2003 and early
2004, which resulted in an improved capital structure and
increased financial flexibility, consistent with Fitch Ratings'
expectations. The rating further reflects the diverse portfolio
of assets, including companies that are financially strong with
market leadership positions that benefit from generally
constructive regulatory environments, with the exception of
Argentina, and growing regional electricity demand.
The ratings also incorporate the continued exposure to the
Argentine environment and the overall weaker sovereign ratings
of Argentina, Colombia, Peru, and Brazil, which increases the
risk of the cash flows received by Enersis and Endesa-Chile from
their respective investments in these countries. Consolidated
credit protection measures are moderate to low for the rating
category but are expected to improve in the near term.
During 2003 and into early 2004, Enersis was focused on its
financial strengthening plan to reduce debt and improve
liquidity. Enersis' financing program materially reduced
consolidated debt levels to USD$6.4 billion as of March 2004
from USD$8.9 billion at December 2002 and improved the company's
debt-to-capital ratio to 39% as of March 31, 2004 from 51% at
December 2002.
The company has further reduced debt since March by repaying
USD$150 million of a syndicated bank loan and refinancing
USD$350 million under more favorable terms in April 2004. With
the financial strengthening plan behind them, both Enersis and
Endesa-Chile are now focusing on improving their core business
operations. Enersis generates the majority of its cash flow from
Chilean operations. While approximately 47% of its reported
consolidated EBITDA (adjusted by ownership) was derived from
Chilean operations in 2003, Chilean cash flow represents closer
to 70%-80%, as a percentage of total cash flow available, since
Enersis controls the cash at Chilectra and receives cash from
Endesa-Chile. Additional non-Chilean cash flow is generated in
the form of dividends, interest, and principal on intercompany
loans and management fees from subsidiaries.
With respect to Chilean operations, the Chilean power sector has
experienced a material disruption of natural gas imports from
Argentina, although such restrictions have been eased over the
past few weeks. The severity of future interruptions of natural
gas supply from Argentina is still uncertain but may worsen this
winter before seeing an improvement. Chilean generators with a
high level of supply contracts are likely to bear the brunt of
related costs as they either purchase higher priced energy on
the spot market to fulfill contracts or pay a failure cost to
distributors in the event there is insufficient energy in the
market.
Enersis and Endesa-Chile are expected to effectively manage this
crisis on both the distribution and generation sides. For
Chilectra, power purchases at node price are a pass-through to
end users, and any failure of the energy supply should be
compensated by the generators. For Endesa-Chile, the addition of
the new, uncontracted 570 MW Ralco hydroelectric plant in July
or August, its manageable supply contract levels (expected to be
approximately 60%-65% of total firm capacity with the addition
of Ralco), and higher regulated node prices, which increased
18.8% in dollar terms to USD$42.04 per MWh in April 2004, should
provide sufficient mitigants to gas interruptions, under normal
hydrological conditions. While May was a dryer than normal
month, June has brought rain that has helped replenish the
reservoirs. Hydrology during the rest of 2004 is expected to be
a normal-to-dry year and should be neutral to positive for the
company.
Also in Chile, Enersis through its distribution subsidiary,
Chilectra, will be facing its distribution tariff reset in
November 2004. During that last reset in November 2000,
Chilectra received a net 4% reduction in its tariff for its
distribution and subtransmission businesses. For 2004, another
modest downward adjustment is probable, reflecting the
efficiencies gained during the past four years and has been
factored into the ratings.
Enersis reported consolidated EBITDA to interest in 2003 and
through the first quarter of 2004 of 2.2 times (x) and 2.8x,
respectively, compared with 2.3x and 2.5x for the comparable
periods of the previous year. Enersis' consolidated credit
fundamentals are expected to be supported by the improved
liquidity and debt reduction from the financial strengthening
plan, overall growth in electricity demand throughout Latin
America, and ongoing improvements in efficiency. Continued
investment in system improvements and other operating
enhancements should further reduce energy losses and facilitate
customer growth, particularly in Brazil, and Colombia. Interest
coverages at Enersis, measured on both a consolidated basis and
by actual cash flow generated, should start to show notable
improvement in 2004 compared with 2003, reflecting lower debt
levels for a full year and as regional investments begin to
recover.
Enersis and Endesa-Chile are expected to face some seasonal and
regional volatility in cash flow due to fluctuations in natural
gas availability, hydrological conditions, energy prices, and
currencies, which is incorporated into the assigned long-term
credit ratings.
Enersis is the largest private electricity distribution group in
Latin America. The company has varying ownership interests in
electric-distribution companies in Argentina, Brazil, Chile,
Colombia, and Peru; electric-generating companies in Argentina,
Brazil, Chile, Colombia, and Peru through Endesa-Chile; and
electric utility-related service companies throughout Latin
America. Enersis is currently 60.62% owned by Endesa-Spain.
MADECO: Sells Remaining Shares Of Capital Increase
--------------------------------------------------
Madeco S.A. ("Madeco") (NYSE ticker: MAD) reported Thursday the
following information to the Superintendencia de Valores y
Seguros (Superintendency of Securities and Insurance, or "SVS"):
On Thursday [July 1, 2004], the Company sold 138,956,755 shares
in the Santiago Stock Exchange (at approximately Ch$41 per
share), resulting in proceeds to Madeco of approximately
Ch$5,697 million (equal to approximately US$9.0 million at the
Ch$636.3 to US$1.00 Observed Exchange Rate for June 30, 2004).
The 138 million shares were the last portion of the remained
unsubscribed and unpaid shares after completion of Madeco's
capital increase, therefore the 3,853,534,135 million shares of
the capital increase issued on February 7, 2003 is fully
subscribed and paid. As a result of the sale, the total
outstanding shares of Madeco on the date hereof is 4,259,045,163
shares.
Madeco, formerly Manufacturas de Cobre MADECO S.A., was
incorporated in 1944 as an open stock corporation under the laws
of the Republic of Chile and currently has operations in Chile,
Brazil, Peru and Argentina. Madeco is a leading Latin American
manufacturer of finished and semi-finished non-ferrous products
based on copper, copper alloys and aluminum. Madeco is also a
leading manufacturer of flexible packaging products for use in
the packaging of mass consumer products such as food, snacks and
cosmetics.
CONTACT: MADECO S.A.
IR Contact
Marisol Fernandez
Phone: 56-2-520-1390
Fax: 56-2-520-1545
E-mail: ir@madeco.cl
Corporate Headquarters
Ureta Cox 930
San Miguel, Santiago, Chile
Phone: 56-2-520-1000
Fax: 56-2-520-1140
Web Site: www.madeco.cl
TELEFONICA CTC: Wants Shareholders to Accept Sale
-------------------------------------------------
Telefonica CTC Chile will meet with minority shareholders on
July 7 to explain to them the advantages of selling its mobile
unit Telefonica Movil to CTC's parent, Spanish telecom
Telefonica SA (TEF), reports local daily Estrategia.
TEF, through its other unit Telefonica Moviles, offered to buy
Telefonica Movil for US$1.25 billion. Telefonica CTC hopes to
convince minority shareholders that the price is reasonable.
Also, the meeting is aimed at increasing the transparency of the
operation, which is due to be approved on an extraordinary
shareholders' meeting on July 15, 2004.
The board has already voted in favor of the deal but a two-
thirds majority vote by shareholders is needed to close the
transaction.
CONTACT: TELEFONICA CTC CHILE
Sofia Chellew
E-mail: schelle@ctc.cl
Tel.:56-2-691 3867
Veronica Gaete
E-mail: vgaete@ctc.cl
Tel.:56-2-691 3867
M.Jose Rodriguez
E-mail: mjrodri@ctc.cl
Tel.:56-2-691 3867
Florencia Acosta
E-mail: macosta@ctc.cl
Tel.:56-2-691 3867
=============
J A M A I C A
=============
KAISER ALUMINUM: Completes Sale of Interests in Alpart
------------------------------------------------------
Kaiser Aluminum has completed the previously announced sale of
its interests in and related to the Alpart alumina refinery in
Jamaica to Hydro Aluminium a.s. for a gross sales price of $315
million, subject to certain post-closing adjustments.
As previously disclosed, the company expects that proceeds from
the sale will be held in escrow pending both amendment of the
company's credit agreement and resolution of matters relating to
intercompany claims, each of which will require U.S. Bankruptcy
Court approval. The disposition of proceeds from the sale,
including any distribution to the company for its use,
ultimately will be determined by the Court. The company's Form
10-Q for the first quarter of 2004 includes a more detailed
discussion of these matters.
Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of
fabricated aluminum products, alumina and primary aluminum.
CONTACT: Kaiser Aluminum, Houston
Scott Lamb, 713-332-4751
===========
M E X I C O
===========
CORPORACION DURANGO: Notifies SEC of Late Filing
------------------------------------------------
Corporacion Durango, S.A. de C.V. ("Registrant") is unable to
file its Annual Report on Form 20-F for the year ended December
31, 2003 without unreasonable effort or expenses as Registrant
has been unable to complete its financial statements in time to
file by the filing date due to:
(i) delays in the completion of the U.S. GAAP reconciliation of
the financial statements of the Registrant and the non-
wholly owned subsidiaries that guarantee certain of its
debt
securities as a result of the change in the Registrant's
auditors during the 2003 fiscal year; and
(ii) the resolution of accounting and disclosure issues relating
to the Registrant's proposed financial restructuring and
concurso mercantil filing in Mexico.
CONTACT: Corporacion Durango SA de CV
Potasio 150, Ciudad Industrial
Durango, Mexico
Phone: (212) 815-4372
Fax: (212) 571-3050
Web Site: www.corpdgo.com
GRUPO TMM: Extends Consent Date for Exchange Offer to July 16
-------------------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A)("TMM") announced it
has extended the consent date for its exchange offer for all of
its outstanding 9 1/2 percent Notes due 2003 and its 10 1/4
percent Senior Notes due 2006. Holders whose consents are
validly received prior to the consent date will be entitled to
receive as a consent fee a pro rata portion of approximately
$21.1 million of new notes.
Grupo TMM has extended the consent date to 5 p.m. New York City
time on July 16 in light of the Independence Day holiday weekend
in the U.S. The company is extending the consent date to provide
all noteholders who wish to participate in the exchange offer
sufficient time to vote their notes and benefit from the consent
fee.
This announcement is neither an offer to purchase nor a
solicitation of an offer to sell Grupo TMM Notes. The exchange
offer and consent solicitation, when made, will not be made to,
nor will tenders be accepted from, or on behalf of, holders of
Existing Notes in any jurisdiction, in which the making of
exchange offers and consent solicitations or the acceptance
thereof would not be in compliance with the laws of such
jurisdiction. In any jurisdiction where securities, blue sky
laws or other laws require exchange offers and consent
solicitations to be made by a licensed broker or dealer, the
exchange offers and consent solicitations will be deemed to be
made on behalf of Grupo TMM by the dealer manager or one or more
registered brokers or dealers licensed under the laws of such
jurisdiction.
Headquartered in Mexico City, Grupo TMM is a Latin American
multimodal transportation company. Through its branch offices
and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in TFM, which operates
Mexico's Northeast railway and carries over 40 percent of the
country's rail cargo. Grupo TMM's web site address is
www.grupotmm.com and TFM's web site is www.tfm.com.mx.
CONTACT: Grupo TMM
Investor Relations
Mr. Brad Skinner
011-525-55-629-8725
brad.skinner@tmm.com.mx
Dresner Corporate Services
General Investors, Analysts and Media
Ms. Kristine Walczak
312-726-3600
kwalczak@dresnerco.com
Proa/StructurA
Media Relations
Mr. Marco Provencio
011-525-55-629-8708
011-525-55-442- 4948
mp@proa.structura.com.mx
Web Site: www.tmm.com.mx
PARMALAT MEXICO: Lala To Formalize Acquisition of Assets Today
--------------------------------------------------------------
Mexican milk company Grupo Industrial Lala will sign today
papers that will seal its acquisition of the assets of Parmalat
Mexico, suggests El Economista.
According to the report, Lala, Mexico's biggest milk company,
won't be paying more than US$150 million as it will only
purchase the license to manufacture and market products under
the Parmalat brand name, as well as the rights to the brand. In
fact it has been mentioned that Lala will pay out just US$70
million. Lala will not be buying Parmalat's plant in Jalisco due
to its poor location.
Grupo Lala currently has 23 pasteurizing, packing, animal feed
and chemical plants nationwide, so Parmalat production would
take place in these facilities.
SATMEX: Misses Principal Payment on Notes, Mulls Bankruptcy
-----------------------------------------------------------
Cash-strapped Mexican satellite company Satelites Mexicanos
(SatMex) missed a principal payment on US$205 million worth of
floating rate notes due Wednesday.
The Company, which is 49% owned by Loral Space & Communications
Ltd (OTC BB:LRLSQ.OB), is currently in talks with creditors and
said that talks involve the possibility of seeking bankruptcy
protection.
"During talks between shareholders and creditors, we have
analyzed the convenience of resorting to Chapter 11 proceedings
or the new (Mexican) bankruptcy law," SatMex said in a statement
published in a local newspaper.
SatMex is also facing a US$320 million Eurobond payment due
November 2004. The Company missed coupon payments on that bond
since last August. Its shareholders, Loral and the Autrey family
of Mexico, also owe US$188 million to the Mexican government,
which owns 23.5% of SatMex.
Should SatMex seek bankruptcy protection, it could make a
restructuring plan binding on all creditors by obtaining support
from a qualified majority of them under U.S. law, or a simple
majority under Mexican law. Such strategy could expedite a
restructuring agreement, according to Jim Harper, director of
corporate research with BCP Securities in Connecticut.
In addition to a debt restructuring, SatMex needs an infusion of
cash of US$35 million to US$50 million to ensure the launch of a
new satellite that would make the Company profitable.
Early last week, a group of investors calling themselves
Constellation Group offered $1 for SatMex as well as assuming
its debt. Chief Financial Officer Cynthia Pelini said the bid
offer, which expired Tuesday, came in a letter with no address
or telephone number from Constellation Group, and SatMex did not
reply.
===============
P A R A G U A Y
===============
MILLICOM INTERNATIONAL: Launches GSM Services in Paraguay
---------------------------------------------------------
Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC)
(Stockholmsborsen:MIC), announced Thursday that Telecel S.A.,
its operation in Paraguay, has launched GSM services in the
850MHz frequency, covering 95 cities, under the brand name of
Tigo.
Telecel is committed to providing the most advanced technology
and most useful services at the best price and its customers
will now benefit from service enhancements including Internet
access through the GPRS platform and MMS (Multimedia Message
Services). Telecel will continue to operate its TDMA cellular
services alongside the GSM offering.
Marc Beuls, President and Chief Executive Officer of Millicom
International Cellular commented: "This migration to GSM
services will provide Telecel with further opportunities to
strengthen its competitive position in Paraguay and will create
further operational synergies for Millicom when similar services
are launched under the Tigo brand by our operations in
Guatemala, El Salvador and Honduras in the coming months."
Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16
cellular operations and licenses in 15 countries. The Group's
cellular operations have a combined population under license of
approximately 387 million people.
CONTACT: Millicom International Cellular S.A.
75 Route de Longwy
L-8080 Bertrange
Luxembourg
Tel: +352 27 759 101
Fax: +352 27 759 359
Web Site: www.millicom.com
=======
P E R U
=======
SHELL: Announces Portfolio Actions, Writedowns
----------------------------------------------
Companies of the Royal Dutch/Shell Group of Companies ('Shell')
announced Thursday portfolio actions in the United States and
Peru and a charge to earnings for certain exploration assets.
Shell's Exploration and Production business (EP) will take a
charge to earnings of about $330 million after tax in the second
quarter on various exploration assets after drilling several
unsuccessful exploration wells and completing extensive
geological studies. The assets were acquired with Enterprise Oil
plc in 2002. Shell's proved reserves are unaffected by this
charge.
Shell Oil Products US announced Thursday the sale of Midwest
refined product pipeline system and storage assets in the United
States for $530 million. This follows the sale last week of
Texas and Great Plains product pipeline and storage assets in
the United States for $492 million.
In Peru, Shell Peru S.A. announced Thursday the proposed sale of
the Peruvian retail, commercial and marine businesses. These
sales are expected completed later this year. The proposed
Peruvian divestments follow the divestment of Oil Products
businesses in Portugal (excluding LPG and Lubricants marketing
businesses), and proposed divestment of Oil Products businesses
in Spain (excluding LPG, Lubricants, Aviation and Marine
businesses).
The combined financial effect of these announcements is expected
to be broadly neutral in terms of their combined contribution to
net income for the year, although only the exploration assets
charge will be taken in the second quarter.
To date in 2004, divestment proceeds from confirmed and
disclosed sales (excluding proposed sales) exceed $3.5 billion,
of which $1.7 billion of divestment proceeds was realised in the
first quarter. Included in the $3.5 billion are, among others,
the Delaware City refinery (partly reflected in the first
quarter results but subject to conditions and working capital
settlement), the Angolan upstream assets, and the Midwest, Texas
and Great Plains product pipelines.
EP also announced this week that Final Investment Decision has
been taken on the Pohokura field in New Zealand.
Upstream issues
EP announced Thursday that after several unsuccessful
exploration wells and essential extensive geological studies
completed in Q2 it is to take a charge to earnings of around
$330 million after tax relating to the book value of certain
exploration assets acquired in the takeover of Enterprise Oil
plc by Shell.
The charge follows drilling and detailed geological and seismic
studies including, among others, wells drilled in the UK sector
of the North Sea in late 2003, the Cong prospect offshore
Ireland in December 2003 and the Beluga wildcat well in the
Norwegian sector of the North Sea in May 2004. Around $35
million of the charge (after tax) relates to exploration costs
incurred by Shell post the acquisition; the remaining amount
relates to the allocation of the original purchase price to
exploration assets.
These assets were acquired in the takeover of Enterprise Oil plc
by Shell. Shell has already delivered synergies from the
Enterprise acquisition of $355 million at the end of 2003
against an original expectation of $300 million. In just over
two years since the acquisition, the Enterprise assets have
contributed around $3 billion to Shell's cash from operations.
In this period, Shell has benefited from production from
bringing on stream new Enterprise projects in Brazil and the
Gulf of Mexico, and has seen progress on important development
projects in the North Sea, Italy and Ireland. In addition, the
Tahiti prospect in the Gulf of Mexico has been successfully
explored and appraised.
Divestment of Midwest refined product pipeline system and
storage assets
Shell Oil Products US announced Thursday it has signed a
Purchase and Sale Agreement with Buckeye Partners, L.P., for the
sale of pipeline and storage assets located in Illinois,
Indiana, Ohio, Michigan and Wisconsin.
The ownership of these pipeline and terminal systems is no
longer of strategic interest to Shell Oil Products US, and
greater shareholder value can be generated by selling them to a
more natural owner such as Buckeye Partners, L.P.
Major assets included in the sale consist of the East Line
Pipeline, North Line Pipeline, St. Louis ATF Pipeline, St. Louis
6-inch Pipeline and the 2Rivers Pipeline. These pipeline assets,
along with associated distribution terminal assets, form an
integrated system that carries refined products from primarily
U.S. mid-continent refineries to points throughout the Midwest
region. Major markets include Chicago, St. Louis, Cleveland,
Indianapolis and Cincinnati.
The transaction is expected to close in the third quarter of
2004 after completion of due diligence and appropriate
regulatory review.
Proposed divestment of some Oil Products assets in Peru
In Peru, Shell Peru S.A. is offering for sale, as a continuing
business, its service station network and industrial and marine
fuels businesses, which have been in operation since 1994.
Shell will retain its lubricants business in Peru, where plans
include generating growth through the integration of the
acquired Pennzoil-Quaker State business.
The proposed transaction is consistent with Shell's strategy to
increase the profitability of the downstream assets through
greater focus in key countries.
Final Investment Decision on Pohokura gas field
Shell New Zealand has announced the green light for the
development of the Pohokura gas field, approving final
investment decision. Shell New Zealand anticipates that the
first gas will flow from Pohokura in mid 2006. Shell owns 48% of
the shares in the Pohokura field. OMV New Zealand and Todd
Pohokura Ltd each own 26%. The Pohokura field is being developed
on behalf of the Joint Venture by Shell Todd Oil Services. The
Pohokura field was discovered in early 2000, and Shell acquired
the majority of its interest in the field in the acquisition of
Fletcher Energy in the same year.
CONTACTS:
Investor Relations:
David Lawrence +44 20 7934 3855
Gerard Paulides +44 20 7934 6287
Bart van der Steenstraten +31 70 377 3996
Harold Hatchett +1 212 218 3112
Media Relations:
Stuart Bruseth +44 20 7934 6238
Andy Corrigan +44 20 7934 5963
Simon Buerk +44 20 7934 3453
Matt Samuel +44 20 7934 3277
Herman Kievits +31 70 377 8750
***********
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
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