/raid1/www/Hosts/bankrupt/TCRLA_Public/040811.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
Wednesday, August 11, 2004, Vol. 5, Issue 158
Headlines
A R G E N T I N A
ACEROS ZAPLA: Yet to End Strike
CLAXSON INTERACTIVE: Fitch Upgrades $44M of Bonds to B(arg)
DISTRIBUIDORA MAYORISTA: Court Commutes Bankruptcy Order
ENVAPACK: Court Orders Liquidation
HEROMA S.A.: Begins Bankruptcy Proceedings
H.R. CONSTRUCCIONES: General Report Due Tomorrow
MELEAM: Verification Deadline Approaches
MENSAJET S.R.L.: Liquidating Assets to Pay Debts
MULTIMUSICA: Trustee To Submit General Report
PAULETTE S.A.: Plans to Liquidate Assets
SIDERAR: Posts ARP568.6M Net Income for 1H04
TRANS SERVIS: Readies Individual Reports for Submission
TELECOM ARGENTINA: 87% of Creditors OK Debt Offer
* IMF to Move Ahead With Third Review in December or January
B E R M U D A
FOSTER WHEELER: Amended Exchange Offer in Process
FOSTER WHEELER: Resolves Subsidiary Performance Bonding Issue
GLOBAL CROSSING: Selected as Authorized Quilt Vendor
B R A Z I L
EMBRATEL: Exchange Offer Expires
INTELIG: Management Balks At Buyout Plans
C H I L E
COEUR D'ALENE: Posts Positive Cash Flow From Operations in 2QQ4
ENERSIS: Increases Market of Bonds
C O L O M B I A
AVIANCA: Resolves Conflict With Pilots
E C U A D O R
PETROECUADOR: Forges Supply Deal With Pemex, Petrojam
M E X I C O
DESC: Inks IT Contract With EDS
ELAMEX: Appoints Richard Harshman as New CEO
HYLSAMEX: Unit Prepays $75M in Bank Debt
T R I N I D A D & T O B A G O
NWRHA: Oppositions Ask Police Commissioner to Probe NWRHA
V E N E Z U E L A
PDVSA: Congress Delays Fund Inquisition
PDVSA: To Beef Up Security at Oil Installations
- - - - - - - -
=================
A R G E N T I N A
=================
ACEROS ZAPLA: Yet to End Strike
-------------------------------
Steel company Aceros Zapla's management has not offered a
solution to end the strike that has brought the Company to a
complete halt.
Business News Americas indicated that the employees, who are now
in their second week of striking, expected the Company to make a
proposal at a meeting held Friday (August 6). It did not.
Workers are demanding an implementation of the shared property
program in the Company and a salary hike.
Investigations carried out by Business News Americas indicated
that the Company had offered a one-time bonus of ARS100 (US$33),
but the employees rejected this, demanding a minimum of ARS150
or a definite ARS100 salary raise.
CLAXSON INTERACTIVE: Fitch Upgrades $44M of Bonds to B(arg)
-----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. upgraded to `B(arg)'
its rating on US$44.4 million worth of "Obligaciones
negociables" bonds issued by Claxson Interactive Group Inc. The
action was based on the Company's financial status as of March
31 this year.
Argentina's securities regulator, the Comision Nacional de
Valores noted that the bonds were classified under "Simple
Issue" with undisclosed maturity date.
Fitch said that the `B(arg)' rating indicates significant credit
risk although a limited margin of safety remains. Capacity for
payment at this juncture is dependent on a sustained, favorable
business climate.
CONTACT: Mr. Ezequiel Paz
Claxson Interactive Group, Inc.
404 Washington Ave. 8th floor
Florida, 33139, Miami Beach
USA
E-Mail: epaz@claxson.com
Phone: 305-894-3574
Web Site:www.claxson.com
DISTRIBUIDORA MAYORISTA: Court Commutes Bankruptcy Order
--------------------------------------------------------
"Distribuidora Mayorista Don Matias o Distribuidora Don Matias
de Farchetto Mauro, Farchetto Diego, Hernandez Carlos S.H."
proceeds with reorganization after Cordoba Court No. 3 converted
the Company's ongoing bankruptcy case into a "concurso
preventivo", states Infobae.
Under Insolvency Protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.
Mr. Raul Rosso, the court-appointed trustee, will serve as
trustee during the reorganization.
CONTACT: Mr. Raul Rosso, Trustee
Libertad 2077
San Francisco (Cordoba)
ENVAPACK: Court Orders Liquidation
----------------------------------
Envapack S.R.L. is preparing to wind-up its operations following
the bankruptcy pronouncement issued by Court No. 26 of Buenos
Aires' Civil and Commercial Tribunal. 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. Enrique Luis
Cabello as trustee. He will be reviewing creditors' proofs of
claims until September 2, 2004. The verified claims will serve
as basis for the individual reports to be presented for court
approval on October 15, 2004. Afterwards, the trustee will also
submit a general report on November 26, 2004.
Clerk No. 51 assists the court on this case, which will end with
the disposal of the company's assets to repay its liabilities.
CONTACT: Envapack S.R.L.
Juan B Justo 2351
Buenos Aires
Mr. Enrique Luis Cabello, Trustee
Aguaribay 6736
Buenos Aires
HEROMA S.A.: Begins Bankruptcy Proceedings
------------------------------------------
Court No. 10 of Buenos Aires' Civil and Commercial Tribunal
declared local company Heroma S.A. "Quiebra," reports Infobae.
Mr. Nestor Rodolfo del Potro, who has been appointed as trustee,
will verify creditors' claims until September 23, 2004 and then
prepare the individual reports based on the results of the
verification. The individual reports will then be submitted in
court on November 5, 2004, followed by the general report on
December 20, 2004.
Clerk No. 19 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.
CONTACT: Mr. Nestor Rodolfo del Potro, Trustee
Avenida Corrientes 1291
Buenos Aires
H.R. CONSTRUCCIONES: General Report Due Tomorrow
------------------------------------------------
A general report on the H.R. Construcciones Navales S.R.L.
insolvency is due for court submission on Thursday, August 12,
2004. Court-appointed trustee Mr. Walter Arturo Calleja will
prepare this report from the Company's accounting and business
records.
Court No. 18 of Buenos Aires' Civil and Commercial Tribunal
handles this case with the assistance of Clerk No. 35.
CONTACT: Mr. Walter Arturo Calleja, Trustee
Lambare 1140
Buenos Aires
MELEAM: Verification Deadline Approaches
----------------------------------------
Creditors of bankrupt footwear company Meleam S.R.L. must
present proofs of their claim to Ms. Irma Aguilera, court-
appointed trustee, before the verification period closes
tomorrow, August 12, 2004. Failure to do so will mean
disqualification from the payments that will be made after the
Company's assets are liquidated.
The Company's liquidation was requested by Obra Social de los
Empleados de Comercio y Actividades Civiles after the former
failed to pay debts amounting to US$9,515.55.
Judge Fernandez of Buenos Aires' Court No. 11 handles this case
with the assistance of Clerk No. 37, Dr. Mazzoni.
CONTACT: Meleam S.R.L.
Florida 834
Buenos Aires
Ms. Irma Aguilera, Receiver
Luis Saenz Pena 1690
Buenos Aires
MENSAJET S.R.L.: Liquidating Assets to Pay Debts
------------------------------------------------
Beunos Aires-based Company Mensajet S.R.L. is initiating
liquidation proceedings following the bankruptcy pronouncement
issued by Court No. 26 of the city's Civil and Commercial
Tribunal.
The ruling places the company under the supervision of court-
appointed trustee, Ms. Nelida Cunarro. The trustee will verify
creditors' proofs of claims until September 24, 2004.
Afterwards, the validated claims will be presented in court as
individual reports on November 8, 2004.
Ms. Cunarro 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 22, 2004.
Clerk No. 52 assists the court on this case.
CONTACT: Mensajet S.R.L.
Montevideo 665
Buenos Aires
Ms. Nelida Cunarro, Trustee
Paraguay 1269
Buenos Aires
MULTIMUSICA: Trustee To Submit General Report
---------------------------------------------
Trustee Adriana Torrado will submit a general report on the
Multimusica S.A. bankruptcy on Thursday, August 12, 2004. This
report provides the court with an audit of the Company's
accounting and business records.
Court No. 26 of Buenos Aires' Civil and Commercial Tribunal has
jurisdiction over this case that will end with the sale of all
company assets to satisfy creditors' claims.
CONTACT: Multimusica S.A.
Av Rivadavia 11509
Buenos Aires
Ms. Adriana Torrado, Trustee
Ventana 3450
Buenos Aires
PAULETTE S.A.: Plans to Liquidate Assets
----------------------------------------
Paulette S.A. of Buenos Aires will begin liquidating its assets
after Court No. 7 of the city's Civil and Commercial Tribunal,
assisted by Clerk No. 13, declared the company bankrupt.
Infobae reveals that the bankruptcy process will commence under
the supervision of court-appointed trustee, Mr. Guillermo
Alberto Ickowicz. The trustee will review claims forwarded by
the company's creditors until November 15, 2004.
CONTACT: Mr. Guillermo Alberto Ickowicz, Trustee
Talcahuano 768
Buenos Aires
SIDERAR: Posts ARP568.6M Net Income for 1H04
--------------------------------------------
Siderar S.A.I.C. (Buenos Aires Stock Exchange: ERAR), announced
on Thursday its results for the six months and second quarter
ended June 30, 2004.
Highlights: Six Months ended June 30, 2004
- Consolidated net income of ARP568.6 million. Net income per
share of ARP1.6364 (ARP13.0916 per ADS).
- Consolidated operating profit of ARP602.4 million.
- EBITDA of ARP702.4 million (43% of net sales).
- Net sales of ARP1,641.0 million.
Results for the Six Months ended June 30, 2004 vs. the Six
Months ended June 30, 2003:
Siderar recorded a net income of ARP568.6 million in the period.
Earnings per share (EPS) and per ADS were a gain of ARP 1.6364
and ARP13.0916 respectively based on a total of 347,468,771
shares outstanding as of June 30, 2004. Each ADS represents 8
(eight) class "A" shares.
Total shipments were 1,087 thousand tons, similar to those of
the same period last year. Domestic market shipments totaled 795
thousand tons, a significant 42% recovery compared to those of
the previous year as a result of the improving economic
situation in Argentina due to a sustained growth in consumption,
industrial and construction activity, and as a result of steel
imports substitution.
Export shipments totaled 293 thousand tons, down 46% compared to
the same period last year due to the recovery of the domestic
market sales.
Although the Company reduced overall exports, it kept its export
presence in traditional markets such as Latin America and
Europe.
Net sales were ARP1,641.0 million compared to ARP1,327.4 million
in the same period last year. This improvement is mainly the
result of better steel product prices. Cost of sales in the
period were ARP942.2 million (57% of net sales) compared to
ARP775.1 million (58% of net sales) in the same period last
year. Production costs increased in the period, mainly raw
materials and freights, together with domestic costs for
supplies, energy, services and labor. Some of this cost
increases only partially affected the period and will be fully
reflected in the next quarter. These increases, together with
those coming from the previous fiscal year, mainly explain the
variation in the cost of sales.
Selling, general and administrative expenses in the period were
ARP96.4 million (6% of net sales), compared to ARP98.2 million
(7% of net sales) in the previous year. The commercial expense
reduction, associated to the lower level of exports, was
compensated by some administrative expense increases, mainly due
to the tax on financial transactions as a result of higher
activity levels.
Operating profit was ARP602.4 million (37% of net sales)
compared to ARP454.0 million (34% of net sales) last year.
EBITDA was ARP702.4 million and EBITDA margin was 43% in the
period, which compares to an EBITDA margin of 40% in the
previous year.
Financial and holding results were a gain of ARP147.1 million.
This result includes a loss of ARP23.0 million in interest and
other financing expenses results, a gain of ARP17.2 million in
foreign exchange rate differences as a result of the Argentine
Peso depreciation, and a gain of ARP152.9 million in net
inventory and spare parts holding results, reflecting a higher
price of raw materials and some services.
Other income and expense represented a net loss of ARP21.7
million in the period, compared to a net loss of ARP 33.7
million in the same period last year. The reduction was mainly
the result of lower doubtful account provisions, partially
offset by higher intangible assets depreciation.
The income tax of the period was a loss of ARP268.6 million,
including a differed tax provision gain of ARP9.7 million and an
income tax provision loss of ARP278.3 million.
In the same period last year the income tax was a loss of
ARP114.2 million, including a differed tax provision loss of
ARP77.3 million and an income tax provision loss of ARP36.9
million.
The consolidated Amazonia and Ylopa equity holdings result for
the period, generated by its participation in Sidor, was a gain
of ARP109.6 million compared to a gain of ARP0.7 million in the
same period last year. This significant improvement was
generated by Sidor's operating result, causing a higher
distribution of Sidor's excess cash according to the agreed
terms, and a higher investment valuation. Sidor's shipments in
the period were a record 1,645 thousand tons, compared to 1,603
thousand tons in the same period last year.
Domestic shipments were up 118% to 815 thousand tons, while
exports were down 32% to 830 thousand tons. Siderar's
investments in Amazonia equity, and Ylopa equity and debt were,
as of June 30, 2004, US$87.8 million.
Sidor together with Tenaris established a new company
(Materiales Siderurgicos Masisa, S.A.), in which they own a
49.8% and 50.2% participation respectively. On July 9, 2004,
Masisa purchased the assets of POSVEN C.A., for a total amount
of US$120 million. The industrial plant, located in Ciudad
Guayana, Venezuela, produces hot reduced briquetted iron or HBI.
During the period the Company invested ARP113.4 million in fixed
assets and information technology, within a plan that introduced
important improvements in productivity and processes.
The plan comprises the start up of blast furnace #1, in an
advanced stage of completion and due in September 2004. The
purpose of this investment is to maintain the production of pig
iron, considering that during the next fiscal year the blast
furnace #2, now in operation, is expected to be due for
relining.
Financial debt as of June 30, 2004 was ARP 279.1 million (US$
94.4 million), down ARP 516.9 million compared to December 31,
2003. On April 22, 2004 the Shareholders Meeting approved a cash
dividend distribution of ARP58.4 million, equivalent to ARP0.168
per share (ARP 1.344 per ADS), effective May 7, 2004.
Results for the Quarter ended June 30, 2004 vs. the Quarter
ended June 30, 2003:
Siderar recorded a net income of ARP362.9 million in the
quarter. Earnings per share (EPS) and per ADS were a gain of ARP
1.0445 and ARP8.3561 respectively based on a total of
347,468,771 shares outstanding as of June 30, 2004. Each ADS
represents 8 (eight) class "A" shares.
Domestic market shipments totaled 416 thousand tons, a
significant 36% recovery compared to those of the previous year
as a result of the improving economic situation in Argentina.
Export shipments totaled 112 thousand tons, down 60% compared to
the same period last year mainly due to the recovery of the
domestic market sales.
Net sales were ARP853.6 million compared to ARP678.8 million in
the same period last year. This improvement is mainly the result
of better steel product prices.
Cost of sales in the quarter were ARP479.7 million (56% of net
sales) compared to ARP411.2 million (61% of net sales) in the
same period last year. Production costs increases in the period,
were mainly in raw materials and freights, together with higher
domestic costs for supplies, energy, services and labor. Some of
this cost increases only partially affected this quarter and
will be fully reflected into the next one.
Selling, general and administrative expenses in the quarter were
ARP48.8 million (6% of net sales), compared to ARP50.0 million
(7% of net sales) in the previous year. The commercial expense
reduction associated to the lower level of exports was
compensated by some administrative expense increases, mainly due
to the tax on financial transactions as a result of higher
activity levels.
Operating profit was ARP325.1 million (38% of net sales)
compared to ARP217.5 million (32% of net sales) last year.
EBITDA was ARP373.7 million and EBITDA margin was 44% in the
period, which compares to an EBITDA margin of 38% in the
previous year.
Financial and holding results were a gain of ARP85.5 million.
This result includes a loss of ARP9.9 million in interest and
other financing expenses results, a gain of ARP12.4 million in
foreign exchange rate differences as a result of the Argentine
Peso depreciation, and a gain of ARP82.9 million in net
inventory and spare parts holding results, reflecting the higher
prices of raw materials and some services.
Other income and expense represented a net loss of ARP13.4
million in the quarter, compared to a net loss of ARP 17.3
million in the same period last year. The reduction was mainly
the result of lower doubtful account provisions and
restructuring costs, partially offset by higher intangible
assets depreciation.
The income tax of the period was a loss of ARP144.1 million,
including a differed tax provision gain of ARP23.8 million and
an income tax provision loss of ARP167.8 million. In the same
period last year the income tax was a loss of ARP69.8 million,
including a differed tax provision loss of ARP32.9 million and
an income tax provision loss of ARP36.9 million.
The consolidated Amazonia and Ylopa equity holdings result for
the quarter, generated by its participation in Sidor, was a gain
of ARP109.8 million compared to a gain of ARP35.9 million in the
same period last year.
This result was generated by Sidor's operating result, that
produced a higher distribution of Sidor's excess cash according
to the agreed terms, and a higher investment valuation.
To view financial statements, please visit:
http://bankrupt.com/misc/Siderar_2Q04.pdf
CONTACTS: Siderar S.A.I.C.
Mr. Leonardo Stazi (CFO)
Mr. Pablo Brizzio (Financial Manager)
54 (11) 4018-2308/2249
Web Site: www.siderar.com
TRANS SERVIS: Readies Individual Reports for Submission
-------------------------------------------------------
Mr. Miguel Angel Troisi, court-appointed trustee for the Trans
Servis Combustibles S.A. bankruptcy, will submit individual
reports from the case tomorrow, August 12, 2004.
The individual reports contain information on the claims
forwarded by the Company's creditors during the credit
verification period. The court will use these documents to come
up with the official list of creditors eligible to receive post-
liquidation payments.
Court No. 9 of Buenos Aires' Civil and Commercial Tribunal,
assisted by Clerk No. 18, has jurisdiction over this case.
CONTACTS: Trans Servis Combustibles S.A.
Av Cordoba 838
Buenos Aires
Mr. Miguel Angel Troisi, Trustee
Cerrito 146
Buenos Aires
TELECOM ARGENTINA: 87% of Creditors OK Debt Offer
-------------------------------------------------
Telecom Argentina revealed Monday that creditors holding 87% of
its total debt have agreed to the Company's US$2.63 billion
debt-restructuring offer by Friday's [August 6] deadline.
This figure could rise, as a number of other creditors expressed
their support for the restructuring plan, known as APE, but
Telecom has not yet received the formal documents.
The Company, one of Argentina's largest telecommunications
groups, is offering three options to replace the existing debt.
The first, geared toward retail investors, is a step-up bond
coming due in 2014 that doesn't carry a nominal haircut. The
second choice, designed for international investors, is a step-
up bond maturing in 2011 that carries higher interest rates than
the 2014 bond but has a haircut of 5.5%. And the third
alternative is a cash payment between 70% and 80%, determined
through a competitive Dutch auction.
Telecom Argentina chief executive Carlos Felices said the
Company should complete its debt swap in the first quarter of
2005.
CONTACT: TELECOM ARGENTINA S.A.
Alicia Moreau de Justo 50, 10th Floor
Capital Federal (1107) Republica Argentina
Phone: +54 11 4968 4000
Home Page: http://www.telecom.com.ar
Contacts:
Alberto J. Ricciardi, Chief Financial Officer
Elvira Lazzati, Finance Director
Pedro Insussarry, Investor Relations Manager
Phone: (5411) 4968-3626/3627
Fax: (5411) 4313-5842/3109
E-mail: inversores@intersrv.telecom.com.ar
* IMF to Move Ahead With Third Review in December or January
------------------------------------------------------------
Argentina's Economy Minister Roberto Lavagna announced Monday
that the International Monetary Fund will move ahead with the
third review of the country's current three-year financial
program in December or January, relates Dow Jones Newswires.
"It wouldn't be convenient for Argentina, nor for the Fund, for
the revision to take place while (Argentina) is in the process
of launching the debt swap. The revision will be in December or
January," Lavagna said, adding that Argentina's dialogue with
the IMF is fluid and that "there are no fights" between the two
sides.
Argentina plans to start its US$100 billion debt restructuring
process next month and complete it by the end of the year.
The IMF had been due to approve the third review in June, but
doubts over a series of questions, including the debt
restructuring, structural reforms and the primary surpluses that
Argentina should run in 2005 and 2006, held up that review.
=============
B E R M U D A
=============
FOSTER WHEELER: Amended Exchange Offer in Process
-------------------------------------------------
As previously announced, the Securities and Exchange Commission
on July 30, 2004 declared effective the registration statement
for Foster Wheeler's amended equity-for-debt exchange offer. The
company has distributed revised offering materials related to
the amended exchange offer, which exchange offer has been
extended through August 30, 2004.
Institutional investors holding 61.0% of the 6.75% Senior Notes
due 2005, 85.0% of the 6.50% Convertible Subordinated Notes due
2007, 92.6% of the Robbins Series C and D Bonds due 2009, and
22.2% of the 9.00% Preferred Securities have agreed to tender
their securities in the amended exchange offer.
"As expected, the next step in the exchange process is to
promptly file an updated registration statement with the SEC to
reflect the financial and other information for the second
quarter of 2004 that is included in our 10-Q filed today," said
Raymond J. Milchovich, chairman, president, and chief executive
officer.
"Subject as always to the Commission's review, we intend to
distribute this revised information to our security holders in
sufficient time to allow the exchange offer to expire on August
30, 2004 as currently scheduled. We believe the support
evidenced by the institutional holders who have signed lock-up
agreements with us shows their confidence in the exchange offer.
Consequently, we are hopeful the exchange offer will close in
early September as currently scheduled."
As previously announced, Foster Wheeler will pay a soliciting
brokers' fee to registered broker/dealers for soliciting
qualifying tenders of trust preferred securities pursuant to
this exchange offer. This fee will be equal to 50 cents per
9.00% Preferred Security (liquidation amount $25) which the
registered broker/dealers tender on behalf of their customers
and which Foster Wheeler accepts for exchange, subject to
certain limitations.
Individuals holding their securities through brokers are urged
to contact their brokers to receive a copy of the prospectus and
to tender their securities.
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.
A copy of the prospectus relating to these securities and other
related documents may be obtained from the information agent.
The information agent for this exchange offer and consent
solicitation is Georgeson Shareholder Communications Inc., 17
State Street, 10th Floor, New York, New York 10014. Georgeson's
telephone number for bankers and brokers is 212-440-9800 and for
all other security holders is 800-891-3214.
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 No. 333-107054 and File No. 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, or from the information agent as noted above.
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:
Ms. Maureen Bingert
908-730-4444
Investor Contact:
Mr. John Doyle
908-730-4270
Other Inquiries:
908-730-4000
Web Site: www.fwc.com
FOSTER WHEELER: Resolves Subsidiary Performance Bonding Issue
-------------------------------------------------------------
Foster Wheeler announced Monday that, as described in more
detail in the Form 10-Q Report it is filing, it has received
waivers of financial covenants contained in performance bonding
arrangements between one of its non-U.S. subsidiaries and
certain financial institutions.
The subsidiary is party to two performance bonding facilities
containing covenants requiring the subsidiary to maintain a
minimum equity ratio (calculated by dividing equity by total
assets). As a result of the subsidiary's second quarter
operating losses, the subsidiary fell below the minimum ratios.
The subsidiary has obtained waivers of the minimum equity ratio
covenants in each facility.
The waiver for the first facility requires that the subsidiary
refrain from any dividends or other restricted payments until
the ratio has returned to the required minimum or the facility
has expired or been terminated. Because this limitation was
already covered by an existing covenant in the facility, it was
already included in the company's liquidity forecast.
The waiver for the second facility is effective through October
31, 2004, by which time the company expects the subsidiary will
have either cured the breach or obtained an amendment or further
waiver of the covenant.
For the above reasons, the company believes these matters will
not have an adverse impact on its forecasted liquidity.
As previously announced, the company delayed filing its Form 10-
Q Report for the second quarter in order to evaluate these
covenants, as well as to evaluate its disclosure controls and
procedures in light of the above. As a result of these
evaluations, the company has concluded its disclosure controls
and procedures were not effective as of the end of the first and
second quarters in 2004 to ensure the timely reporting of
covenant compliance at its subsidiaries. The company has
developed a plan to rectify this situation as described in its
Form 10-Q Report, and it believes the plan will be fully
implemented well before the end of the third quarter.
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
GLOBAL CROSSING: Selected as Authorized Quilt Vendor
---------------------------------------------------
Global Crossing (NASDAQ: GLBCE) announced Monday that it has
been selected as an Authorized Quilt Vendor for high bandwidth
capacity Internet access to The Quilt, a coalition of 22 leading
research and education networking organizations, plus global
affiliates. The Quilt is a project of the University Consortium
for Advanced Internet Development (UCAID), part of the larger
Internet2 consortium. Global Crossing is one of only five other
Internet capacity providers to have earned authorized vendor
status with this important buying group.
Under the agreement with UCAID, Global Crossing will offer
access to its MPLS-based Internet service for Quilt member
organizations. By becoming an Authorized Quilt Vendor (AQV),
Global Crossing will gain access to a select group of members
who provide network services for more than 200 Internet2
universities and thousands of other educational institutions,
including some of the hemisphere's largest, most sophisticated
regional and campus networks. Global Crossing will also
participate in The Quilt's Vendor Information Exchange (VIX), an
interest group focused on guiding the development of network
products, services and programs in line with the community's
needs.
"Global Crossing was selected for its long experience serving
the needs of research and education, and because its network met
The Quilt's requirements for peering, availability of advanced
services such as IP Multicast and IPv6, and for the quality of
its backbone and support services," said Gwendolyn Huntoon,
executive director of The Quilt. "We're excited that our members
will be able to aggregate purchases of Global Crossing services
through their association with The Quilt."
"Global Crossing has a strong worldwide commitment to advanced
research and education networking, and we're excited to offer
Internet capacity to The Quilt's member organizations, and to
the greater Internet2 community." said Paul O'Brien, Global
Crossing's senior vice president, enterprise sales.
Global Crossing's high-capacity, MPLS/IP backbone network and
extensive global fiber infrastructure support research and
educational networking projects such as SURFnet, the
Netherlands' national network for research and education; the
GANT multi-gigabit pan-European backbone; ALICE, a project to
link GANT to universities in 18 South American countries; the
AMPATH network linking research and educational institutions in
North and South America; and the eMERLIN very large
radiotelescope array.
Global Crossing (NASDAQ: GLBCE) provides telecommunications
solutions over the world's first integrated global IP-based
network. Its core network connects more than 300 cities and 30
countries worldwide, and delivers services to more than 500
major cities, 50 countries and 6 continents around the globe.
The company's global sales and support model matches the network
footprint and, like the network, delivers a consistent customer
experience worldwide.
Global Crossing IP services are global in scale, linking the
world's enterprises, governments and carriers with customers,
employees and partners worldwide in a secure environment that is
ideally suited for IP-based business applications, allowing e-
commerce to thrive. The company offers a full range of managed
data and voice products including Global Crossing IP VPN
Service, Global Crossing Managed Services and Global Crossing
VoIP services, to more than 40 percent of the Fortune 500, as
well as 700 carriers, mobile operators and ISPs.
ABOUT THE QUILT
The Quilt gathers more than 20 leading research and education
networking organizations in the United States to promote
consistent, reliable, interoperable and efficient advanced
networking services that extend to the broadest possible
community; and to represent common interests in the development
and delivery of advanced network services. Participants in The
Quilt provide network service for more than 200 Internet2
universities and thousands of other educational institutions.
Internet2, a university-led research and development consortium,
provides organizational support for The Quilt. For more
information, see: www.thequilt.net.
CONTACTS: Press Contacts
Mr. John Jainschigg
+ 1 973-937-0106
PR@globalcrossing.com
Ms. Fernanda Marques
+ 55 21-3820-4712
LatAmPR@globalcrossing.com
Mr. Mish Desmidt
Europe
+44 (0) 7771-668438
EuropePR@globalcrossing.com
Web Site: www.globalcrossing.com
===========
B R A Z I L
===========
EMBRATEL: Exchange Offer Expires
--------------------------------
Embratel Participacoes S.A. (Embratel Holdings)(BOVESPA: EBTP4;
EBTP3 - NYSE: EMT) announced Monday that the offer by its
subsidiary, Empresa Brasileira de Telecomunicacoes S.A. -
Embratel (Embratel), to exchange up to US$275 million aggregate
principal amount of Embratel's registered 11.0% Guaranteed Notes
due 2008 for any and all of Embratel's outstanding unregistered
11.0% Guaranteed Notes due 2008 (the "Old Notes") expired by its
terms at 5:00 p.m. (EST) on August 6, 2004.
The Exchange Agent has informed Embratel that holders tendered
or guaranteed delivery of US$ 272,785,000 in aggregate principal
amount of Old Notes in the exchange offer. This amount
represents approximately 99.19% of the outstanding Old Notes.
This announcement is neither an offer to sell nor a solicitation
to buy or exchange any securities. The exchange offer was made
only by means of the prospectus dated June 29, 2004.
Embratel is the premium telecommunications provider in Brazil
and offers an ample variety of telecom services -local and long
distance telephony, advanced voice, high speed data
transmission, Internet, satellite data communications, and
corporate networks. The company is a leader in the country for
data services and Internet, and is highly qualified to be an
all-distance network carrier in Latin America. Embratel's
network spreads countrywide, with almost 29 thousand kms of
optic cables, which represents about one million and sixty-nine
thousand km of fiber optics.
CONTACT: Ms. Silvia M.R. Pereira
Investor Relations
tel: (55 21) 2121-9662
fax: (55 21) 2121-6388
email: silvia.pereira@embratel.com.br
invest@embratel.com.br
INTELIG: Management Balks At Buyout Plans
-----------------------------------------
GSC World Telecom do Brasil, a consortium of Brazilian telecoms
firm Intelig's existing managers and a US investment fund,
withdrew efforts to look for a partner that would help it in
buying out Intelig, reports Business News Americas.
The move came after the owners of Intelig said they are only
prepared to sell to one of Brazil's three fixed line incumbents,
Telefonica, Telemar or Brasil Telecom, to ensure the fastest
possible rate of return.
The three operators are eyeing for Intelig but differences
between the Intelig partners - National Grid (50% of capital),
France Telecom (25%) and Sprint (25%), may complicate the
process.
Last week, Intelig started laying off 8% of its 700 employees to
maintain a cost structure that would best guarantee operational
results and prepare the Company for sale.
=========
C H I L E
=========
COEUR D'ALENE: Posts Positive Cash Flow From Operations in 2QQ4
---------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer and a growing gold producer, reported
Monday results for the second quarter and first six months of
2004. Coeur also announced that it expects to restate results of
operations for the year 2003 and the first quarter of 2004, to
reflect an increase in revenues and reduction of net loss by
approximately $1.2 million and $1.3 million, respectively from
the amounts previously reported. The restatements were the
result of an error relating to the timing of Coeur's accounting
for price changes related to sales of concentrate pursuant to
certain contracts.
Highlights
Second Quarter
-- Positive cash flow from operations of $1.0 million in the
second quarter of 2004, compared to a negative cash flow from
operations of $3.0 million in the second quarter of 2003.
-- $5.4 million second quarter net loss included $4.0 million
updated feasibility study expense for Kensington and San
Bartolome Projects, and a $3.2 million adjustment to reflect
the effect of decreased metals prices on concentrate sales
contracts subject to final metal pricing, as described below
under "Accounting Restatement - Sales of Concentrate."
-- Second quarter silver production of 3.3 million ounces.
-- Second quarter gold production of 27,949 ounces, up 27% from
2004's first quarter.
-- Second quarter revenue $27.1 million, up 2% from same
period last year.
-- $227 million in cash and short-term investments.
First Six Months
-- First six months silver production of 6.8 million ounces.
-- First six months gold production of 49,960 ounces.
-- First six months revenue $56.1 million, up 1% from a year
ago.
-- First six months net loss of $7.1 million compared to a net
loss of $35.4 million in the first six months of 2003.
Operational
-- 2004 silver production on target for expected full-year total
of 14.4 million ounces.
-- 2004 gold production expected to reach 142,000 ounces, a 7%
increase from previous projections.
-- Feasibility study completed at Kensington gold project --
initial production expected in 2006.
-- San Bartolome operating and capital costs reduced and permits
received
-- updated feasibility study nearing completion with initial
silver production expected in 2006.
-- Overseas Private Investment Corporation (OPIC) approved up to
$135 million political risk insurance for the San Bartolome
project.
-- Exploration programs in South America and Silver Valley
(Idaho) continuing to return positive results.
-- Senior Executives added to management team to complete new
mine projects and help manage continuing growth.
"As Coeur ended the second quarter, all our operations were
accelerating their production rates and lowering costs as
planned, trends we expect will continue through the remainder of
the year, with resulting increased cash flow and profitability,"
said Dennis E. Wheeler, Chairman and Chief Executive Officer.
"We have seen dramatic improvement in cash flow in the recent
quarter compared to both the first quarter of this year and last
year's second quarter, even though the Company expensed $4.0
million in connection with updated feasibility studies at our
Kensington and San Bartolome properties and that $3.2 million
was related to a change in the valuation of pending metal sales
that we initially valued at higher prices experienced in the
first quarter. For the full year, Coeur expects to achieve cash
operating costs of approximately $3.00 per ounce of silver,
which compares favorably to last year's cash operating costs of
$3.27 per ounce of silver. Meanwhile, our balance sheet remains
very strong, with $227 million in cash to fund our future
growth."
"Coeur's exploration program and development projects are
progressing well. Drilling at Silver Valley, Cerro Bayo and
Martha continue to return encouraging results, which bode well
for future reserve increases. Feasibility work is complete at
Kensington. At San Bartolome, operating and capital costs have
been reduced with additional feasibility work and the project
received the final environmental permitting needed to build the
mine. Both of these company-enhancing development projects
remain on track to begin contributing significantly to our
silver and gold production in 2006," commented Robert Martinez,
President and Chief Operating Officer.
Financial Summary
Coeur reported second quarter 2004 revenue of $27.1 million, a
two percent increase over revenue of $26.6 million in the second
quarter of 2003. The increase was due primarily to the higher
realized silver and gold market prices compared to last year's
second quarter. Company-wide production in the second quarter
was 3,325,246 ounces of silver and 27,949 ounces of gold,
compared to 3,761,787 ounces of silver and 29,682 ounces of gold
in the second quarter of 2003.
For the first six months of 2004, Company revenue was $56.1
million, an increase of one percent from the same period a year
ago. Production through the first six months totaled 6,760,337
ounces of silver and 49,960 ounces of gold. Last year through
June 30 the Company produced 7,364,715 ounces of silver and
62,845 ounces of gold.
Full year 2004 production is projected to reach approximately
14.4 million ounces of silver and approximately 142,000 ounces
of gold, as production of both metals is expected to accelerate
through the second half of the year.
The Company reported a net loss of $5.4 million for the second
quarter, or $0.03 per share, compared to a net loss of $4.1
million, or $0.03 per share a year ago. This year's second
quarter included $4.0 million in pre-development costs related
to the Company's two major development projects, San Bartolome
in Bolivia and Kensington in Alaska, designed to significantly
increase future gold and silver production. Coeur exploration
expenditures increased by $1.9 million, or 170 percent, in the
second quarter compared to the same period last year, as the
Company continued its program to increase reserves and discover
new silver and gold mineralization around its Silver Valley
(Idaho), Cerro Bayo (Chile) and Martha (Argentina) operating
properties.
For the first six months of 2004, the Company reported a net
loss of $7.1 million, or $0.03 per share, which also included
the future growth initiatives of $5.7 million in pre-development
costs and $5.0 million in exploration expenses, more than double
the exploration expenses in the first six months of 2003. In the
first half of 2003, the Company reported a loss of $35.4
million, or $0.26 per share, due largely to the early retirement
of debt as a result of the company's major restructuring last
year.
The Company's balance sheet remains very strong, with $227
million in cash, cash equivalents and short-term investments.
The second quarter of 2004 netted a positive operating cash flow
of $1 million compared to net cash used in operations of $3.0
million in the same period of 2003.
For the second quarter, Coeur realized an average silver price
of $6.35 per ounce compared to an average realized price during
last year's second quarter of $4.56 per ounce. For its gold
sales, Coeur realized an average price of $398 per ounce during
the second quarter compared to an average gold price of $335 per
ounce during the same period last year.
Accounting Restatement - Sales of Concentrate
The Company will restate its results of operations for the year
ended December 31, 2003 and the fiscal quarter ended March 31,
2004. The restatements result from an error in the accounting
for price changes related to sales of concentrate. The
restatements are expected to increase revenues and reduce net
loss by approximately $1.2 million and $1.3 million,
respectively, from the amounts previously reported for 2003 and
the first quarter of 2004.
The restatements are the result of a correction in Coeur's
recognition of revenue related to concentrate sales contracts.
Historically, Coeur has recorded revenues under these contracts
based on the gold and silver prices prevailing at the time risk
of loss and title to the concentrate passes to third-party
smelters (or the lower of month-end spot price or the average
monthly price for that month). The final settlement price is not
fixed until a later date (up to 90 days after shipment) based
upon quoted metal prices by an established metal exchange as set
forth in each contract, at such date. The terms of the contracts
result in embedded derivatives because of the difference between
the initial recorded price and the final settlement price. These
embedded derivatives should be adjusted to fair value through
revenue each period until the date of final metal pricing. Coeur
accounted for changes in metal prices when the final settlement
price was determined, but erroneously failed to account for the
embedded derivative by recording adjustments to reflect such
changes at the end of the intervening accounting periods. As a
result, the necessary revenue adjustments for periods prior to
the second quarter of 2004 were not made.
Coeur has calculated the impact of the restatement on its net
losses for the year 2003 and the first quarter of 2004, and
expects the net losses to be reduced from $67.0 million to
approximately $65.8 million for 2003 and from $3.0 million to
approximately $1.7 million for the quarter.
Coeur has called the restatement to the attention of the
Securities and Exchange Commission in connection with its
pending registration statement that pertains to the proposed
acquisition of Wheaton River Minerals, and is in the process of
reviewing the restatement with staff of the Commission and
Coeur's independent auditors. As the result, Coeur noted that
the auditors have not yet completed their audit and review of
the restatements.
As a result, Coeur has delayed filing of its Quarterly Report on
Form 10-Q for the three months ended June 30, 2004 and has filed
for an extension for up to 5 days to allow completion of the
restatement. Upon such completion, Coeur will also file an
amended Form 10-K for the year ended December 31, 2003 and an
amended Form 10-Q for the three months ended March 31, 2004, in
each case reflecting the restated financial statements.
The Company, with oversight by the audit committee, has begun a
process of identifying the changes that need to be made in
established procedures and controls as a result of the
identification of the restatement.
Overview of Operations
South America
Cerro Bayo (Chile)/Martha (Argentina)
-- 1,053,276 million ounces of silver and 11,944 ounces of gold
produced during the second quarter
-- Cash costs of $3.74 per ounce of silver during second quarter
-- First six months production of 2,271,092 silver ounces and
22,480 gold ounces.
-- Full year 2004 production expected at 4.9 million ounces of
silver and 60,000 ounces of gold at estimated average cash
cost of $1.75 per ounce of silver.
-- Cerro Bayo receives 2003 safe mining award from National
Chilean Mining Agency.
Costs at Cerro Bayo/Martha in the second quarter were impacted
by a temporary slowdown in mining work at Martha to focus on
development of newly discovered mineralization. This reduced
short-term stope production, but extended the overall mine life
another year. Consequently, most of the production for the
quarter came from low-grade stockpiles which adversely affected
per ounce cash costs. The Company expects unit costs to return
to historical levels in the third quarter. For the full year
cash costs are expected to be significantly lower at
approximately $1.75 per ounce, as both gold and silver
production accelerate through the remainder of 2004.
Accelerated exploration drilling continued through the first
half of 2004 with over 127,000 feet of drilling completed at
Cerro Bayo and Martha. More definition drilling will continue
throughout 2004 to expand and define the limits of the known
mineralization and reserves and test other targets.
At Cerro Bayo, the exploration goals consist of discovery of new
gold and silver deposits in both potential surface and
underground mineable configurations. Current exploration
includes a set of 30 targets, based on results from prior
exploration programs and comparisons to known deposits. Targets
with surface mineable potential span a range of size from 10,000
to over 700,000 tons with grades of 0.04 to over 0.13 ounces of
gold per ton and 2.5 to over 9 ounces of silver per ton.
Potential underground mineable targets range in size from 20,000
to over 150,000 tons with grades of 0.10 to over 0.14 ounces of
gold per ton with associated silver grades from 7 to over 10
ounces per ton(1).
At Martha, Coeur has over 440 square miles of exploration and
mining concessions in the Santa Cruz Province of Argentina.
These concessions include the reserves being developed at the
Martha mine and nine exploration areas, with deemed potential to
host high-grade, economic silver and gold deposits. Surface
mineable targets range from 40,000 to over 1,800,000 tons
grading 0.01 to over 0.02 ounces of gold per ton and 60 to over
110 ounces of silver per ton. Underground targets are from
35,000 to over 185,000 tons with grades of 0.03 to 0.06 ounces
of gold per ton with associated silver values from 17 to over
240 ounces per ton(1).
During the second quarter 2004, the employees at Cerro Bayo were
awarded a national mine safety award from the National Agency of
Geology and Mining for Chile (SERNAGEOMIN) for completing 640
days without incurring a lost time accident during 2002 and
2003. In winning the award, Cerro Bayo competed with all mining
companies in Chile that had accumulated between 200,000 and 1
million man-hours. Over the past five years, Coeur's Chilean
operations have been recognized three times with awards from
SERNAGEOMIN.
North America
Rochester Mine (Nevada)
-- 1,317,006 million ounces of silver and 16,005 ounces of gold
produced during the second quarter
-- 2,627,301 million ounces of silver and 27,480 ounces of gold
produced in first six months period
-- Cash costs of $4.54 per ounce of silver during the second
quarter
-- 50% increase in gold production rate expected in second half
of 2004 with continued lower costs.
-- Anticipated full year metals production of 5.8 million ounces
of silver and 82,500 ounces of gold expected at an average
cash cost of $2.75 per ounce of silver.
The higher-grade gold ores placed on the Rochester heap-leach
pad earlier this year began yielding increased gold production
by the latter part of the second quarter. This increased gold-
output is expected to continue through the remainder of the
year, with gold production projected to increase approximately
50 percent over last year's levels, and silver production
expected to be comparable to last year at 5.8 million ounces.
Full year cash costs are expected to be $2.75 per ounce.
Coeur Silver Valley - Galena Mine (Idaho)
-- Second quarter silver production of 954,964 ounces at a cash
operating cost of $4.95 per ounce
-- First six months production of 1,861,944 ounces at average
cash cost of $4.94 per ounce.
-- Exploration drilling focusing on high-grade mineralization in
three new targets near existing production areas.
-- Full-year 2004 silver production of 3.7 million ounces
expected at average cash cost of $4.74 per ounce.
At Silver Valley, Coeur's 100 percent owned operating mine in
Idaho, exploration work in the mine's long-range development and
expansion plan has encountered new high-grade silver
mineralization in three new targets. To date, over 14,750 feet
of core drilling has been completed.
The long-term plan at Silver Valley is to discover and develop
new silver mineral reserves and support a potential production
expansion to seven million ounces per year by 2007, while
lowering cash operating costs to $4.00 per ounce of silver. In
this plan, seven initial targets were identified; each in
geologic settings that have hosted high-grade silver
mineralization and/or multi-million ounces of resources,
reserves and production. The identified targets span a range of
potential size from vein splays and extensional veins of around
75,000 tons with grades of 20 to over 30 ounces per ton to
fault-hosted deposits up to 600,000 tons grading around 20
ounces per ton. New reserves are expected to be defined from
known resources and new targets to be identified with ongoing
exploration and target generation(1).
Development Properties
San Bartolome (Bolivia) silver project
-- New project profile materially lowers capital and
operating costs.
-- Permitting completed.
At Coeur's 100%-owned San Bartolome (Bolivia) silver project,
updated feasibility work has successfully reduced estimated
capital and operating cost parameters, with construction costs
declining by 20 percent from earlier feasibility-study
estimates, to $105 million, and cash operating costs lowered 5
percent, to $3.55 per ounce of silver. The reductions in costs
are the result of an initial focus in mining and processing of
the silver ores and replacing filtered tailings disposal with
paste tailings disposal. This additional engineering work is
scheduled for completion in the third quarter. The Board of
Directors approved final expenditures to complete the work
necessary to reach a construction decision in the fourth
quarter.
On July 29, the Overseas Private Investment Corporation (OPIC)
approved up to $135 million political risk insurance for the San
Bartolome project. In approving the insurance, OPIC noted the
significant positive economic impact San Bartolome brings to the
national economy of Bolivia and the local community of Potosi,
generating over 500 local jobs during the construction phase of
the project and 370 full-time jobs during operation.
The Vice Ministries of Mining, Environment and Sustainable
Development in Bolivia have issued the permits needed to build
the mine. San Bartolome is expected to begin production in 2006,
at an initial annualized rate of six million ounces of silver
per year. Probable mineral reserves at the mine are measured at
122.8 million ounces of silver.
Kensington (Alaska) gold project
-- Feasibility study completed
-- Mineral inventory updated
The final feasibility study has been completed at Kensington.
The project is expected to produce approximately 100,000 ounces
of gold annually over its expected ten to fifteen year mine
life. Estimated construction costs are $91.5 million, with
projected cash operating costs of $220 per ounce of gold. The
current estimates are within the original estimated range set by
the pre-feasibility study. The project is expected to commence
production during 2006. The Board of Directors approved final
expenditures to complete the work necessary to reach a
construction decision in the fourth quarter.
Updated feasibility work defined the current probable mineral
reserve estimates which total 4.2 million tons with grades of
0.25 ounces per ton gold, or 1.05 million contained gold ounces.
Further exploration will focus on converting the project's large
and high-grade mineralized material inventory.
By the end of the second quarter, all remaining draft permits
for Kensington had been released for public comment and all
hearings have been held by the EPA, Army Corps of Engineers and
the State of Alaska, which marked the final phase of the major
permits required for construction. The data disclosed herein has
been verified by qualified persons (as defined by Canadian
National Instrument 43-101) involved in Coeur's exploration and
development projects(2).
Organizational Update - Managing Company Growth
During the second quarter, two senior executives joined Coeur to
lead the development and construction of the Kensington and San
Bartolome projects in the next major phase of the Company's
growth. Raymond Threlkeld was named President South American
Operations for Coeur to manage the Company's operations in Chile
and Argentina, as well as the development of San Bartolome in
Bolivia. Alan Wilder rejoined Coeur as Senior Vice President of
Project Development, responsible for the construction of San
Bartolome and Kensington. The two executives have a combined 63
years experience in the development and/or construction of
mining projects around the world.
San Bartolome is designed to increase Company-wide silver
production by 40 percent over current levels, and Kensington is
expected to increase Company-wide gold production by 75 percent.
Both projects are planned to commence production by 2006.
Wheaton River tender offer
Coeur commenced mailing its tender offer documents to U.S.
shareholders of Wheaton River Minerals Ltd. (TSX: WRM, Amex:
WHT) on July 13, 2004. In connection with its offer, Coeur has
filed a Registration Statement on Form S-4 with the United
States Securities and Exchange Commission. Commencement of the
offer to residents of Canada has been delayed by the need to
provide additional information required by Canadian law (and, in
Quebec, in the French language) and by the accounting
restatement described above. Coeur will commence the offer in
Canada promptly following the filing of its quarterly report on
Form 10Q for the three months ended June 30, 2004. The
expiration date of the offer will be amended so that it is at
least 35 days from commencement of the offer in Canada.
"A Coeur-Wheaton River combination will create the fourth
largest North American precious metals company, enhance Coeur's
position as the world's largest primary silver producer,
increase our silver production by 50 percent, and create a top
10 global gold producer with among the lowest cash costs and one
of the highest growth rates in the industry. The offer provides
the shareholders of both companies a unique opportunity to
create a leader in the precious metals industry both from a
financial and operating perspective," Mr. Wheeler said.
Under Coeur's offer, Wheaton River shareholders may elect to
receive for each share of Wheaton River common stock tendered:
-- Up to Cdn$5.47 in cash, subject to proration if Wheaton River
shareholders request in the aggregate more than Cdn$570
million; or
-- 0.796 shares of Coeur common stock; or
-- 0.796 exchangeable shares of a Canadian subsidiary of Coeur,
which are exchangeable, upon the terms described in the offer
documents, for common stock of Coeur on a one-for-one basis.
The offer is subject to customary conditions, including: (i) the
tendering of at least 66 2/3% of the issued and outstanding
Wheaton River common shares; (ii) the approval by Coeur
shareholders of certain terms of the transaction, including the
adoption of a reorganization of Coeur, an amendment to Coeur's
certificate of incorporation to increase Coeur's authorized
capital and the issuance of shares of Coeur common stock in the
transactions; (iii) receipt of all necessary regulatory
approvals; and (iv) the absence of any material adverse change
relating to Wheaton River. Coeur intends to solicit the
requisite approval from its shareholders in September.
Coeur's offer represents a premium of approximately 13% to
Wheaton River's closing share price as of August 6, 2004,
assuming all shareholders elect to receive cash.
Hedging
Coeur does not currently have any of its silver or gold
production hedged.
Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.
To see tables, financial statements:
http://bankrupt.com/misc/COEUR.htm
CONTACT: COEUR D'ALENE MINES CORPORATION
Tony Ebersole, Investor Relations
800-523-1535
ENERSIS: Increases Market of Bonds
----------------------------------
Bonds for US$ 350 million already issued and placed on the
Luxemburg Stock Exchange in November 2003 may now be redeemed on
the American market.
As of Friday, August 6, 2004, Enersis obtained from the
Securities and Exchange Commission the registration of its bonds
originally placed under Rule 144 A and S, issued in November
2003 for a total amount of US$ 350 million. These Bonds were
essentially aimed at institutional investors.
In this way, the bearers of the new instruments will now acquire
a potentially greater liquidity by being able to undertake
operations on the American debt market. The period for the
redemption commences today and will last for 20 working days.
These debt instruments have a bullet maturity of ten years and
carry a rate of 7.375% per annum. These new bonds have the same
financial characteristics as those issued in November 2003
except that their recent registration on the American market
will make these titles more negotiable, thus benefiting their
bearers.
State of the Debt:
With respect to the sate of the debt of the Company, this has
been reduced significantly during the past year, from US$ 7,356
million in June 2003 to US$ 6,189 million in June 2004, a
decrease equivalent to 15.9%.
This has enabled Enersis to reach levels of debt compatible with
international companies, suppliers of electric services, rated A
and even higher.
In this regard, we must remember that the new credits have
provided for a maturity curve more in line with the real
capacity of the Enersis Group to generate cash flows and at the
same time have allowed the removal of certain restrictions
imposed by the original credits.
CONTACT: Mr. Francisco Javier Luco Victoriano
Investor Relations
Enersis S.A.
fjlv@e.enersis.cl
===============
C O L O M B I A
===============
AVIANCA: Resolves Conflict With Pilots
--------------------------------------
Embattled Colombian airline Avianca reached a labor agreement
with pilots Monday, averting a strike that could have
jeopardized a takeover bid from Brazil's Grupo Sinergy.
The labor agreement provides for increases in pilot salaries, a
guaranteed payment of US$127 million for pilot pensions and the
dropping of disciplinary action against 48 pilots who took part
in a protest.
A demand that Avianca pay US$97.6 million to retired pilots is
still pending.
"The government will study this request with pilots again. But
the solution will be led by the Ministry of Social Welfare,"
said Avianca chief Juan Emilio Posada.
Last month, 500 Avianca pilots mounted a slowdown of operations,
costing the airline about US$9 million. According to Bolivian-
Brazilian industrialist German Efromovich, who has made an offer
to purchase Avianca, a continuation of the slowdown could have
resulted in liquidation of the carrier.
Efromovich's Sinergy Group offered to purchase 75% of Avianca
for US$64 million and to assume its US$300 million debt.
=============
E C U A D O R
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PETROECUADOR: Forges Supply Deal With Pemex, Petrojam
-----------------------------------------------------
Petroecuador recently inked a one-year deal to supply an
estimated 7 million barrels of fuel oil each to Mexico's Pemex
and Jamaican oil refiner Petrojam.
Business News Americas reports that the state oil-company's
subsidiary, Petroindustrial, will prepare the mix corresponding
to fuel oil with 2.2% sulfur content plus a US$0.45/barrel
differential during the contract's life.
Energy information authority Platt's will set the prices for the
contract.
===========
M E X I C O
===========
DESC: Inks IT Contract With EDS
-------------------------------
DESC, S.A. de C.V. (BMV:DESC; NYSE:DES) ("Desc" or "the
Company") announced on Monday that it had signed an outsourcing
contract with EDS for the operation of all of Desc's information
technology for the next five years.
The outsourcing contract between the two companies includes
infrastructure support and administration for all ERP and non-
ERP applications, e-mail, network administration, call center,
user support, security and repair of key infrastructure
components, among others.
This transaction translates into direct and immediate savings
for Desc, which continues reducing its current cost structure in
order to become more competitive and flexible.
In addition, it will enable Desc to increase the efficiency of
its information technology services, and provides access to a
wide range of industry solutions, guaranteed management of
investments in technology, state-of-the-art technology, faster
response times, as well as the incorporation of best practices
and innovative ideas.
EDS is the world's leading service company, providing
strategies, consulting, implementation, business transformation
and operation of solutions for clients that operate in complex
businesses and with technology of the digital economy.
DESC, S.A. de C.V. is one of the largest industrial groups in
Mexico, with 2003 sales of approximately US$ 2 billion and
nearly 14,000 employees, which through its subsidiaries is a
leader in the Automobile Parts, Chemical, Food and Property
sectors.
CONTACT: Ms. Marisol Vazquez Mellado
Mr. Jorge Padilla Ezeta
Tel: (5255) 5261-8000
investor.relation@desc.com.mx
Ms. Maria Barona
Ms. Melanie Carpenter
Tel: 212-406-3690
desc@i-advize.com
Web Site: www.desc.com.mx
ELAMEX: Appoints Richard Harshman as New CEO
--------------------------------------------
ELAMEX S.A. DE C.V. (NasdaqNM:ELAM - News), a diversified
manufacturing services company with food, plastics and metals
operations and real estate holdings in Mexico and the United
States, announced Monday changes in chief executive positions
for Elamex and its primary operating subsidiary.
Elamex announced that Richard P. Spencer, President and Chief
Executive Officer of Elamex and of its primary operating
subsidiary, Franklin Connections LP, will leave Elamex toward
the end of this year. Effectively immediately, Richard R.
Harshman has been appointed President and Chief Executive
Officer of Franklin Connections LP. Mr. Harshman will become
President and Chief Executive Officer of Elamex when Mr. Spencer
leaves the company.
Richard Harshman is a well-known highly respected professional
in the international confectionery/food industry. He has over
thirty years of executive sales and marketing experience.
Recently, he served as Chief Executive Officer of Favorite
Brands, a $750 million company that was eventually sold to
Nabisco Brands, a division of Kraft Foods. He previously served
as President and Chief Executive Officer of Storck USA, LP for
thirteen years, where he introduced and expanded the growth of
key brands. Mr. Harshman also served in executive sales and
marketing positions with Tootsie Roll Industries and F&F
Laboratories.
On Mr. Harshman's appointment, Mr. Spencer stated:
"We believe that Franklin has now reached a stage in its
business development which requires strong leadership in sales
and marketing to take full advantage of its potential for growth
and profitability. His solid sales and marketing background and
in-depth knowledge of the consumer packaged goods industry is
well aligned with Franklin's business needs. We are pleased to
welcome Richard to the Franklin management team."
With respect to Mr. Spencer's planned departure, Mr. Eloy
Vallina, Chairman of the Elamex Board of Directors stated: "Dick
has provided strong leadership for Elamex through some very
difficult times. He has been instrumental in establishing a new
direction for the company and will leave Elamex with a strong
management team in place."
Elamex is a Mexican company with manufacturing operations and
real estate holdings in Mexico and the United States. The
Company is involved in the production of food items related to
its candy manufacturing and nut packaging operations, and metal
and plastic parts for the appliance and automotive industries.
Elamex's competitive advantage results from its demonstrated
capability to leverage low cost, highly productive labor,
strategic North American locations, recognized quality and
proven ability to combine high technology with labor-intensive
manufacturing processes in world-class facilities. As a value
added provider, Elamex's key business objectives include
superior customer satisfaction, long-term supplier relationships
and employee growth and development, with the ultimate goal of
continuously building shareholder value.
CONTACT: Mr. Sam Henry
Elamex SA de CV
1800 Northwestern Dr.
El Paso, TX 79912
Phone: (915) 298-3061
(915) 298-3071
Fax: (915) 298-3065
Email: info-elamex@elamex.com
sam.henry@elamex.com
Web Site: www.Elamex.com
HYLSAMEX: Unit Prepays $75M in Bank Debt
----------------------------------------
Mexican steelmaker Hylsamex SA's (BMV: HLYSAMXB) net debt now
stands at US$706 million, or 30% lower than it was at the end of
last year, after its main unit prepaid US$75 million in bank
debt.
In a filing with the Mexican Stock Exchange Monday, Hylsamex
revealed that the unit, Hylsa, used operating cash flow for the
payments, which were applied to amortizations due 2005, 2008,
and 2009.
According to Standard & Poor (S&P) analyst Juan Pablo Becerra,
the Company's agreement with creditors stipulates it must use
excess cash flow to prepay debt.
In June, S&P upgraded its local and foreign currency corporate
rating for Hylsa to B from CCC+ and its senior unsecured debt
rating to CCC+ from CCC-, Business News Americas reported at the
time.
"The rating action is based on the company's increasing revenues
due to a better product mix and higher price environment,
effective cost control, positive free cash flow generation and
significant debt reduction," Becerra said in the report.
Monterrey-based Hylsamex, which is being spun off by parent Alfa
SA (ALFA.MX), has been taking advantage of the recovery in the
world steel market to lower debt.
Last month, the Company prepaid US$137 million in bank debt,
releasing from a pledge the shares that Alfa held in the unit.
Alfa spun off 39% of Hylsamex in February, and will spin off its
remaining 51% in the first quarter of 2005.
Hylsamex said Monday it will continue applying extra cash to
paying down debt.
CONTACT: Hylsamex S.A. de C.V.
101 Ave Munich Cuauhtemoc
66452 San Nicolas de los Garza
Nuevo Leon
Mexico
Phone: +52 81 8865 2828
Fax: +52 81 8865 1210
Home Page: http://www.hylsamex.com.mx
Contact:
Engr. Dionisio Garza Medina, Chairman
Alejandro Elizondo Barragan, Chief Executive Engr
=================================
T R I N I D A D & T O B A G O
=================================
NWRHA: Oppositions Ask Police Commissioner to Probe NWRHA
---------------------------------------------------------
Opposition party United National Congress (UNC) does not trust
the Trinidad government to conduct a fair and thorough
investigation of alleged corrupt practices on its agencies.
The Trinidad Express reports that UNC is urging newly appointed
Commissioner of Police Paul Trevor to probe into questionable
activities at the North West Regional Health Authority (NWRHA).
A statement from the party says "We find it difficult to
understand why the PNM had sought to handcuff a former NWRHA
chairman and take him to court on an issue involving the NWRHA
but allowed senior NWRHA officials to resign while over $100
million cannot be accounted for,"
The statement comes after opposition leader Basdeo Panday's
disclosure that money intended for social services programs is
being squandered on PNM supporters.
The party is also seeking investigations on the Unemployment
Relief Programme (URP) and the Ministries of of Science,
Technology and Tertiary Education, and Legal Affairs.
=================
V E N E Z U E L A
=================
PDVSA: Congress Delays Fund Inquisition
---------------------------------------
Venezuelan state news agency Venpres reported Monday that
lawmakers have decided to delay a hearing with the president of
state oil company Petroleos de Venezuela (PdVSA) until after the
presidential recall referendum takes place Sunday.
Dow Jones Newswires recalls that members of the National
Assembly were scheduled to meet PDVSA President Ali Rodriguez
Tuesday so he could explain the creation of a controversial US$2
billion development fund from oil revenue.
Government officials have been asked by assembly members to
explain how the development fund will work. The account
reportedly now holds US$1.2 billion in windfall oil revenue that
will be used for all kinds of infrastructure and social
projects.
PDVSA: To Beef Up Security at Oil Installations
------------------------------------------------
Mr. Felix Rodriguez, vice president of PDVSA's exploration and
production unit, said the Company is planning to add military
personnel to increase security at its oil installations ahead of
Sunday's presidential recall referendum.
According to Dow Jones, the Company wants to assure stable oil
supply during Sunday's event.
Venezuela's oil production was virtually brought to a standstill
during a two-month strike that ended in February 2003.
***********
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.
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