/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040713.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, July 13, 2004, Vol. 5, Issue 137 Headlines A R G E N T I N A ADSUM: Trustee Readies for Close of Verification Phase BANCO HIPOTECARIO: Looking to Snap Up BNL's Argentine Subsidiary EXPRESO NOR SUR: Trustee Submits General Report FINCA EL MOLINO: Trustee Wraps-Up Verification Period IMPROTADORA CAMFER: Verification Deadline Approaches RUTA PUBLICIDAD: Claims Verification Ends SIDECO AMERICANA: Debt Accord Meets Resistance TECNOMOVIL: Individual, General Report Due * Argentina's SEC Filing Reveals Hurdles To Debt Repayment B E R M U D A FOSTER WHEELER: Foster Wheeler Extends Exchange Offer B R A Z I L ELETROPAULO METROPOLITANA: To Spend $90M to Boost Power Quality C H I L E TELEFONICA CTC: Parent Buys Three Million ADRs C O L O M B I A AVIANCA: Submits Debt Plan Under Chap. 11 U.S. Bankruptcy Law C U B A CLUB MED: Ownership of Cuban Property Questioned H O N D U R A S * Statement by IMF Managing Director on Visit to Honduras M E X I C O BANCOMEXT: Needs To Find Way Out of Slump GRUPO MEXICO: Makes Early $50M Debt Payment to Citibank Unit LUZ Y FUERZA: Losses Escalate During Jan-May Period P E R U AERO CONTINENTE: Govt. Steps In to Ensure Continued Operations T R I N I D A D & T O B A G O CDC: Workers Will Remain Locked-Out for Three Weeks V E N E Z U E L A SIDOR: Acquisition of Posven Completed - - - - - - - - ================= A R G E N T I N A ================= ADSUM: Trustee Readies for Close of Verification Phase ------------------------------------------------------ The Validation of claims for the Adsum S.R.L. reorganization case will end on July 14, 2004. All parties with claims against the Buenos Aires-based Company must present proofs of the indebtedness to the court-appointed trustee, Mr. Santiago Manuel Quiben, before the said deadline. The city's court no. 3 has scheduled the informative assembly, where the settlement plan will be presented to creditors, on April 25, 2004. CONTACT: Adsum S.R.L. Malabia 2174 Buenos Aires BANCO HIPOTECARIO: Looking to Snap Up BNL's Argentine Subsidiary ---------------------------------------------------------------- Banco Hipotecario, one of Argentina's largest banks, is reportedly in advanced talks with Italian banking group Banca Nazionale del Lavoro (BNL) over plans to buy BNL's subsidiary in Argentina. Both camps however, have remained mum about the issue, although BNL's director general, Mario Girotti, said in March that BNL had received expressions of interest for its Argentinean unit. Citing Rafael Ber, managing director at local consultancy Argentine Research, Business News Americas reports that Banco Hipotecario is a likely contender for BNL Argentina because it fits well into the former's new retail strategy. BNL Argentina, with its distribution network of some 100 branches, is a "logical buy" for Hipotecario with "clear synergy advantages," Ber pointed out. Ber also added that Hipotecario could get BNL's local unit for an attractive price tag since the parent is bent on leaving Argentina to reduce its emerging market exposure. As part of its strategic exit plan from Latin America, BNL has already sold its operations in Brazil and Uruguay. EXPRESO NOR SUR: Trustee Submits General Report ----------------------------------------------- Ms. Maria Cenatiempo, court-appointed trustee for the Expreso Nor Sur S.A. bankruptcy, is scheduled to submit the case's general report in court on July 14, 2004. The general report provides an audit of the company's accounting and business records and summarizes relevant events pertaining to the bankruptcy. Buenos Aires Court No. 8, assisted by Clerk No. 16, has jurisdiction over this case. CONTACT: Ms. Maria Cenatiempo, Trustee Avenida de Mayo 1365 Buenos Aires FINCA EL MOLINO: Trustee Wraps-Up Verification Period ----------------------------------------------------- Mr. Juan Ignacio Estevez, the trustee assigned to the Finca el Molino S.A. bankruptcy, will review claims forwarded by the Company's creditors until July 14, 2004. After claims verification, the trustee will submit the individual reports for court approval on September 09, 2004. The presentation of the general report will also follow on October 22, 2004. CONTACT: Mr. Juan Ignacio Estevez, Trustee Uruguay 750 Buenos Aires IMPROTADORA CAMFER: Verification Deadline Approaches ---------------------------------------------------- Creditors of bankrupt Importadora Camfer S.A. must present proof of their claims before the verification period closes on July 14, 2004. Ms. Raqel Poliak, the court-appointed trustee, will receive and validate these claims. TCR-LA reports that Judge Gutierrez Cabello issued the bankruptcy ruling against the Company after it defaulted on a US$3,885 debt to Importadora y Exportadora Irmaos Leffa Ltda. CONTACT: Importadora Camfer S.A. Viamonte 1328, piso 5 Buenos Aires Ms. Raquel Poliak, Trustee Lavalle 1527, piso 4 "16" Buenos Aires RUTA PUBLICIDAD: Claims Verification Ends ----------------------------------------- Ruta Publicidad S.A. nears the completion of its bankruptcy after the claims verification period ends on July 14, 2004. Mr. Jorge Feito, the trustee, will accept the claims and submit them in court as individual reports. TCR-LA earlier reported that Judge Garibotto of Buenos Aries Court No. 2 ordered the Company's liquidation upon the request of HSBC Bank of Argentina. Court records show that the Company has outstanding debts worth US$16,717.32 from HSBC. CONTACT: Ruta Publicidad S.A. Iparraguirre 740 Buenos Aires Mr. Jorge Fieto, Trustee Avenida Medrano 537 Buenos Aires SIDECO AMERICANA: Debt Accord Meets Resistance ---------------------------------------------- A group of creditors holding an important part of Sideco Americana filed complaints against the Argentine company's US$125-million debt restructuring agreement signed two months ago. Argentina's tax bureau AFIP, Aseguradora de Creditos y Garantias, LG&E International and Mr. Juan Agustin Foglia submitted a series of objections to commercial court 18, secretariat 36, which is in charge of Sideco's bankruptcy proceedings. These creditors intend to make some amendments to the Company's debt restructuring offer, which takes the form of an out-of- court settlement, or APE. Sideco is offering to repurchase debt for cash at 35% of face value, a 5-year par guaranteed bond in which the Company keeps the right to repurchase it for 40% of its value during the first year or 45% in the second year, and a 10-year par bond with a US$15 million subscription limit. Sideco spokespersons said these complaints will not hamper the restructuring process. TECNOMOVIL: Individual, General Report Due ------------------------------------------ The general and individual reports pertaining to the Tecnomovil S.A. bankruptcy case will be submitted in court on July 14, 2004. The court-appointed trustee, Ms. Ana Maria Varela, will base these reports from the proofs of claims submitted by the Company's creditors. Buenos Aires Court No. 3, with the assistance of Clerk No. 5, handles this case, which will end with the liquidation of assets in order to satisfy creditor's claims. CONTACT: Ms. Ana Maria Varela, Trustee Talcahuano 768 Buenos Aires * Argentina's SEC Filing Reveals Hurdles To Debt Repayment ---------------------------------------------------------- Economic instability, lawsuits from foreign creditors, and the energy crises will play dominant roles in Argentina's continuing struggle to settle its US$100 billion debt. The Daily Times says that a report filed by the country's Economic Ministry with the U.S. Securities and Exchange Commission pointed that a significant decline in prices for main Argentine commodity exports could affect the country's debt servicing capability. The government also said that contingent liabilities arising from lawsuits filed by its creditors could limit future debt repayments. A proposed class action suit pending in the U.S. court would cover more than five hundred thousand investors in Italy, Germany, France and the United States. If the court finds that the Argentine government illegally defaulted on the bonds, its commercial assets in the United States, including bank accounts and state-owned companies, could be seized and used to compensate class members. Natural gas shortages early this year coupled with the slump in hydroelectric power production due to draught has also fueled speculations of an economic slowdown. The S.E.C. filing is part of the conditions for issuing new bonds to be swapped for its defaulted public debt. Argentina's recent debt restructuring proposal has not gained much support from creditors. ============= B E R M U D A ============= FOSTER WHEELER: Foster Wheeler Extends Exchange Offer ----------------------------------------------------- Foster Wheeler Ltd.(OTCBB:FWLRF) announced Friday that it is extending, until 5 p.m. New York City time on Friday, July 30, 2004, its offer to exchange: (1) its Common Shares and its Series B Convertible Preferred Shares (the "Preferred Shares") for any and all outstanding 9.00% Preferred Securities, Series I issued by FW Preferred Capital Trust I (liquidation amount $25 per trust security) and guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC, including accrued dividends; (2) its Common Shares and Preferred Shares for any and all outstanding 6.50% Convertible Subordinated Notes due 2007 issued by Foster Wheeler Ltd. and guaranteed by Foster Wheeler LLC; (3) its Common Shares and Preferred Shares for any and all outstanding Series 1999 C Bonds and Series 1999 D Bonds (as defined in the Second Amended and Restated Mortgage, Security Agreement, and Indenture of Trust dated as of October 15, 1999 from Village of Robbins, Cook County, Illinois, and to SunTrust Bank, Central Florida, National Association, as Trustee); and (4) its Common Shares and Preferred Shares and up to $150,000,000 of Fixed Rate Senior Secured Notes due 2011 of Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain Subsidiary Guarantors for any and all outstanding 6 3/4% Senior Notes due 2005 of Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain Subsidiary Guarantors; and solicitation of consents to proposed amendments to the indenture relating to the 9.00% Junior Subordinated Deferrable Interest Debentures, Series I of Foster Wheeler LLC, the indenture relating to the 6.50% Convertible Subordinated Notes due 2007 and the indenture relating to the 6 3/4% Notes due 2005. As of the close of business on July 8, 2004, holders have tendered the following amounts of the following securities: (1) 9.00% Preferred Securities, $2,513,675; (2) 6.50% Convertible Subordinated Notes, $23,000; (3) Robbins Series C Bonds due 2024, $21,000, Robbins Series C Bonds due 2009, $7,000, and Robbins Series D Bonds, $2,000; and (4) 6 3/4% Senior Notes, $7,093,000. As previously announced, Foster Wheeler intends to modify the terms of the exchange offer. The modified terms and conditions of the exchange offer are set forth in Foster Wheeler's registration statements on Form S-4 (File Nos. 333-107054 and 333-117244) filed on July 8, 2004. The amended exchange offer is subject to review by the Securities and Exchange Commission and other regulatory agencies, and revised offering materials will be distributed as soon as practicable. The dealer manager for the exchange offer and consent solicitation is Rothschild Inc., 1251 Avenue of the Americas, 51st floor, New York, New York 10020. Contact Rothschild at 212- 403-3784 with any questions on the exchange offer. The exchange agent for the exchange offer is the Bank of New York, London Branch. The foregoing reference to the proposed registered exchange offer and any other related transactions shall not constitute an offer to buy or exchange securities or constitute the solicitation of an offer to sell or exchange any securities in Foster Wheeler Ltd. or any of its subsidiaries. Investors and security holders are urged to read the following documents filed with the SEC, as amended from time to time, relating to the proposed exchange offer because they contain important information: (1) the registration statements on Form S-4 (File Nos. 333- 107054 and 333-117244); and (2) the Schedule TO (File No. 005-79124). These and any other documents relating to the proposed exchange offer, when they are filed with the SEC, may be obtained free at the SEC's Web site at www.sec.gov. You may also obtain these documents for free (when available) from Foster Wheeler by directing your request to: John A. Doyle; email john_doyle@fwc.com; telephone 908-730-4270; and address Foster Wheeler Inc., Perryville Corporate Park, Clinton, NJ 08809-4000. 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. CONTACT: Foster Wheeler Ltd. Media Contact Ms. Maureen Bingert 908-730-4444 Investor Contact Mr. John Doyle, 908-730-4270 Other Inquiries 908-730-4000 Web Site: www.fwc.com =========== B R A Z I L =========== ELETROPAULO METROPOLITANA: To Spend $90M to Boost Power Quality --------------------------------------------------------------- Brazil's biggest power distributor Eletropaulo Metropolitana SA revealed a five-year, BRL257-million (US$90 million) investment plan to improve the power supply quality of its sub-transmission network. According to Business News Americas, most of the investment projects will be planned together with state-owned transmission company CTEEP. For 2004 alone, the Company plans to invest BRL43 million in 50 projects to reduce the frequency of power cuts and meet quality targets set by power regulator Aneel. Eletropaulo is controlled by US power company AES Corp (NYSE: AES) and operates in the city of Sao Paulo and surrounding region. CTEEP covers the whole of Sao Paulo state. CONTACT: ELETROPAULO METROPOLITANA Avenida Alfredo Egidio de Souza Aranha 100-B, 13 andar 04726-270 San Paulo Brazil Phone: +55-11-548-9461, +55 11 5696 3595 Fax: +55-11-546-1933 URL: http://www.eletropaulo.com.br Contacts: Luiz D. Travesso, Chairman and President Orestes Gonzalves Jr., VP Finance/Investor Relations ========= C H I L E ========= TELEFONICA CTC: Parent Buys Three Million ADRs ---------------------------------------------- The Santiago bourse revealed Friday that Spain's Telefonica SA bought 3 million American Depositary Receipts in its Chilean unit Compania Telefonica de Chile SA (CTC), equivalent to 12 million shares and 1.3% of CTC's outstanding shares, the AP reports. While the purchase brings Telefonica closer to a majority in the Company, it still only holds 44.9% of CTC, meaning it continues to need approval from minority shareholders for the planned spinoff of its mobile unit. An extraordinary shareholders' meeting is scheduled for July 15 to approve CTC's plan to group its mobile unit under the wing of Telefonica's Telefonica Moviles (TEM) unit. Telefonica will pay CTC US$1.01 billion and assume a debt of US$243 million for the mobile unit, which it plans to merge with the Bell South (BLS) Latin American mobile assets it agreed to buy in March. 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 =============== C O L O M B I A =============== AVIANCA: Submits Debt Plan Under Chap. 11 U.S. Bankruptcy Law ------------------------------------------------------------- Colombian troubled flagship carrier Aerovias Nacionales de Colombia S.A. (Avianca) has submitted a debt restructuring plan under Chapter 11 of the US Bankruptcy Law. The proposal is based on a US$63-million investment proposal from Brazil's Grupo Sinergy and Colombia's National Federation of Coffee Growers, one of Avianca's owners. The plan, submitted on July 1st with no corporate public announcement, would offer general non-secured creditors 10% of new seven-year notes, a percentage of the reorganized airline's cash flow and any remaining cash after the repayment of administrative, priority and secured debts. Avianca's lawyers said the Company expects to release the details of the plan on July 16, when the new audience on the investment pact is to take place. On June 1, Avianca said its board of directors prefers a takeover bid from Grupo Sinergy over a rival one involving U.S.- based Continental Airlines Inc. "The initial Sinergy/OceanAir offer accomplishes the necessary requirements that will allow the company to emerge from the Chapter 11 bankruptcy filing," Avianca stated in a press release. Sinergy, led by Brazilian entrepreneur German Efromovich, offered in March to inject US$63 million of capital into Avianca and assume its debt of nearly US$300 million in return for a 75% stake in Colombia's largest airline. In April, Continental's chief executive, Gordon Bethune, said its Latin American partner, Copa Airlines, also was bidding on Avianca's assets. The Colombian airline filed for Chapter 11 protection in the U.S. in March 2003. Avianca is currently owned by Colombia's National Federation of Coffee Growers and Valores Bavaria, a leading Colombian conglomerate. Avianca, one of the world's oldest airlines, operates 290 national and international flights a day. It has fallen on hard times recently due to lagging demand and heightened fuel costs. Sinergy owns OceanAir, an air taxi company that serves Brazil's oil industry but also operates regional routes serving more than 30 cities. ======= C U B A ======= CLUB MED: Ownership of Cuban Property Questioned ------------------------------------------------ A suit claiming that Club Med built on confiscated land has been filed in the U.S. by Elvira de la Vega Glen, a Cuban immigrant. Ms. de la Vega Glen, now 95, claims that the Varadero Beach property where Club Med built a 337-room hotel in 1997 belonged to her family before Fidel Castro came to power in Cuba. She says that she inherited the property from her mother in 1943 and lost it in 1959 when she fled Castro's Cuba for the United States. Ms. de la Vega Glen's son, who inherited half of the property from her sister, is also a plaintiff. The de la Vega Glen's counsel, Mr. Stuart Newberger, states that Club Mediterranee Group may also face charges under the Trading with the Enemy Act because of the company's substantial holdings in Florida. The Trading with the Enemy Act regulates and prescribes penalties to American entities engaging in trade with identified U.S. enemies in times of war. The current blacklist includes Cuba. Club Med sold its Varadero Beach property to Grupo Pinero last year. =============== H O N D U R A S =============== * Statement by IMF Managing Director on Visit to Honduras --------------------------------------------------------- The Managing Director of the International Monetary Fund, Rodrigo de Rato, made Friday the following statement in San Pedro Sula: "It is a great pleasure for me to visit Honduras and also to participate in the Third Regional Conference on Central America, held jointly by the IMF and the Central American Monetary Council. This is my first visit to Latin America as Managing Director, and it indicates our strong commitment to supporting and working with the region. I have had the privilege of meeting with President Ricardo Maduro and, earlier today, had valuable discussions with ministers of finance and central bank presidents from the region. I was impressed by the commitment of the ministers and governors to outward-oriented growth and continued regional and global integration-and by their determination to address the challenges that come with this process, especially assuring that the benefits of globalization are more equitably shared. "Central America can be proud of its achievements over the past decade. Recent smooth elections in many countries demonstrate the political maturity of the region, which has entered the new millennium with an improved potential to achieve sustained growth and poverty reduction. Macroeconomic policies and reforms in the 1990s have raised growth rates, brought down inflation, and strengthened external positions. This has put the region in a better position to share in the ongoing global recovery, and resist future shocks, while also providing the favorable setting to intensify the reforms needed to sustain economic and social development. "Thus, fiscal consolidation strategies are key elements of the economic programs in all countries in the region, and finance ministers underscored to me their determination to seek the necessary domestic political consensus for these programs. Central Bank governors also emphasized their commitment to prudent monetary management, and I was particularly reassured by the priority that is being given throughout the region to building sound and efficient financial systems. "I have asked the senior leaders I met what more the IMF can do to assist the region in achieving its objectives of rapid growth and social development. I assured them that the Fund will continue to be a strong partner in the region's progress. In particular, we intend to further strengthen our close policy dialogue by increasing the regional perspective of our work on Latin America, fostering the exchange of cross-country experiences, and assisting regional policy coordination efforts in core areas such as financial sector supervision, tax policy and administration, and economic statistics. As part of this effort, we intend to increase further our technical assistance to Central America in the coming years. Also, in response to concerns about the declining trend in public investment in Latin America and elsewhere, we have launched a number of pilot studies to assess the scope for accommodating increased public investment within sustainable and macro-economically sound fiscal frameworks. The results of these studies are expected to be discussed by the Fund Executive Board and with member countries' experts early next year, and to be reflected in the future approach of the Fund to policy advice and program design in this area. "In conclusion, I am optimistic that strong policies and strengthened regional cooperation will allow the region to seize this potential. The IMF is ready to lend its support, and we look forward to continuing our close policy dialogue and collaboration in the years ahead." =========== M E X I C O =========== BANCOMEXT: Needs To Find Way Out of Slump ----------------------------------------- Mexico's National Foreign Trade Bank (Bancomext) needs more than just a restructuring program to escape from the financial slump that could send it into bankruptcy. Mr. Hector Reyes Retana, the bank's general director, admitted in an El Economista article, "It is not an alternative to apply a program of restructure, because we need a fundamental solution." Bancomext has sustained one of the highest losses in the development- banking sector over the last three years. Its level of arrears is at 10 percent, or five times the average in the banking system, while its financial margin has slid 42.05% in real terms since 2000. In addition the bank's past-due portfolio has increased, half of which comes from a US$400 million Cuban loan whose payment has been frozen since 2002. Bancomext has adopted painful measures to reverse its fortunes. Since 2001, it has closed 14 branches, reduced staff by 33 percent and cut expenses by 21 percent. GRUPO MEXICO: Makes Early $50M Debt Payment to Citibank Unit ------------------------------------------------------------ Grupo Mexico, a mining, metals and railroad company, made an early US$50-million debt payment to a unit of Citigroup, reports Business News Americas. Added to other debt prepayments, Grupo Mexico has reduced its debt by 80%. With regards to the remaining US$30 million in corporate level debt, which is not due in the short term, international relations VP Juan Rebolledo told Business News Americas that the Company currently as resources to pay off the said debt. Lcal financial group Monex said high metal prices are bolstering the Company's financials. Monex is projecting a 36.9% increase in the Company's net sales this year to MXN39.3 billion (US$3.42 billion) over 2003 and a 118% increase in EBITDA to MXN18.7 billion. CONTACT: GRUPO MEXICO S.A. DE C.V. Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F., Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 Home Page: http://www.gmexico.com Contacts: Germ n Larrea Mota-Velasco, Chairman and CEO Xavier Garca de Quevedo Topete, President and COO Alfredo Casar Perez, COO, Ferrocarril Mexicano Daniel Chavez Carren, COO, Industrial Minera Mexico Daniel Tellechea Salido, VP and Administration and Finance President LUZ Y FUERZA: Losses Escalate During Jan-May Period --------------------------------------------------- Losses at Mexico City's power distributor Luz y Fuerza del Centro (LFC) swelled 63.4% to MXN2.6 billion in the January-May 2004 period, compared to losses reported in the same period last year, reports Business News Americas. Without the government's injection of MXN7.5 billion to cover operating costs during the period, the Company would have registered a MXN10.1-billion loss. Total debt at the end of the Jan-May 2003 period was MXN93.4 billion pesos, while negative equity stood at MXN6.1 billion. The Company earlier indicated that theft and fraud, which includes tampering with meters, illegal hook-ups and altered billing, have been the primary causes of the burgeoning losses at the Company. ======= P E R U ======= AERO CONTINENTE: Govt. Steps In to Ensure Continued Operations -------------------------------------------------------------- Peru's leading airline Aero Continente will continue flying even though its insurance policy officially expired Saturday, the AP Online reports. Aero Continente was on the verge of being grounded after Global Aerospace, the world's largest airline insurer, withdrew its contract with the airline. It is illegal under Peruvian law and international regulations for airlines to fly without insurance policies that cover the planes and the passengers and cargo they carry. The government, however, took an unusual step of extending public coverage to Aero Continente to avoid a disruption of tourism during the international soccer matches being played around the country. In an emergency presidential decree published Saturday in Peru's official gazette, El Peruano, the Finance Ministry said it would act as a financial guarantor for Aero Continente for "a period not to exceed 30 days." ================================= T R I N I D A D & T O B A G O ================================= CDC: Workers to Remain Locked-Out for Three Weeks ---------------------------------------------- The Trinidad Industrial Court threw out an injunction filed by the National Union of Government and Federated Workers Union (NUGFW) against Caribbean Development Company (CDC), The Trinidad Express reports. The injunction was filed to allow the locked-out workers to return to work. With the latest ruling, the workers are expected to remain locked out for another three weeks. CDC's management decided to lock workers out on May 24 after learning that on the previous day, workers voted to go on strike. The lockout action took place to protect the equipment and the plant. NUGFW members voted to go on strike demanding a 17% increase in salary, which is more than the Company's offer of a 12% hike. In addition, the workers demand a special bonus plan whereby workers will receive 50 cents on each saleable carton. Aside from the demands, the union is also objecting to CDC's proposal to include random drug testing in the collective agreement, as well as reduce the number of union officers at the plant. ================= V E N E Z U E L A ================= SIDOR: Acquisition of Posven Completed -------------------------------------- Tenaris S.A. (NYSE:TS) (Buenos Aires:TS) (BMV:TS) (MTA Italy:TEN) further to its announcement on April 27, 2004, confirmed Friday that, together with Sidor, a Venezuelan steel producer in which it has an indirect investment, it has completed the acquisition from Posven, of an industrial facility for the production of pre-reduced hot briquetted iron, or HBI, located in Ciudad Guayana, Venezuela. The acquisition was made through Materiales Siderurgicos MASISA S.A., a company constituted in Venezuela and currently held 50.2% by Tenaris and 49.8% by Sidor, for the price of US$120 million. The facility, which has a nominal annual design capacity of 1.5 million tons of HBI and was constructed by Raytheon Engineers & Constructors using technology developed by Hylsamex, a Mexican steel producer, has been shut down since shortly after commencing operations in 2000. Tenaris is a leading global manufacturer of seamless steel pipe products and provider of pipe handling, stocking and distribution services to the oil and gas, energy and mechanical industries and a leading regional supplier of welded steel pipes for gas pipelines in South America. Domiciled in Luxembourg, it has pipe manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico and Venezuela and a network of customer service centers present in over 20 countries worldwide. *********** 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 prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *