/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/011016.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, October 16, 2001, Vol. 2, Issue 202 Headlines A R G E N T I N A COMPANIA MEGA: On S&P CreditWatch, Negative Implications Moody's Downgrades Argentine 11 Issuers On Currency Troubles Moody's Downs LT Foreign Bonds, Deposit Ratings At 15 Banks B O L I V I A LAB: Bolivian Government Applauds Vasp Withdrawal From Market B R A Z I L EMBRAER: Shares Up On Purchase Announcement By China Southern MOULINEX: Bidders Improve Offers While Court Readies Decision E C U A D O R BANCO DEL PACIFICO: Arrest Warrant Issued For Finance Minister H O N D U R A S GEOMAQUE EXPLORATIONS: Financial Restructuring Progressing Well M E X I C O AMERIJET INTERNATIONAL: HIG Eyes Majority Stake, Awaits Approval AMERIJET INTERNATIONAL: To Surrender, Lease Back 5 Boeing 727s CINEMASTAR LUXURY: Company Profile MAXCOM TELECOMUNICACIONES: Using Up Cash Fast SL INDUSTRIES: Company Profile VITRO: To Confront Enormous Debt In The Near-Term XEROX: Reports Better Results Despite Latin American Troubles P A R A G U A Y ANTELCO: Workers Want Parity In Bidding Race P E R U PROCACAO: Refinancing Debt To Get Back In The Black - - - - - - - - - - - - ================= A R G E N T I N A ================= COMPANIA MEGA: On S&P CreditWatch, Negative Implications -------------------------------------------------------- Standard & Poor's placed Friday Argentina-based Compania MEGA S.A.'s (MEGA) single 'B'-plus foreign currency rating on CreditWatch with negative implications. The CreditWatch placement reflects the company's technical default due to the noncompliance with certain timely information requirements to the administrative agent. It is a condition precedent for the exchange of the notes that there is not an event of default pending. MEGA is currently in the process of passing through documentation in this regard to the administrative agent and the bondholders for their consent. Another condition precedent is still pending as to the funding of the debt service reserve account (DSRA). Standard & Poor's expects MEGA to be able to resolve these issues and cure the technical default in a timely fashion. In the unlikely event that this situation is not resolved in the next couple of weeks, then Standard & Poor's might downgrade the outstanding rated debt. Compania MEGA owns a natural gas separation plant, a pipeline, and a gas fractionation facility. The company's shareholders are YPF S.A. (38%), Petrobras (34%), and Dow Quimica Argentina (28%). CONTACT: Standard & Poor's, Buenos Aires Matias Badia, (54) 114-891-2129 or Lidia Polakovic, (54) 114-891-2130 Moody's Downgrades Argentine 11 Issuers On Currency Troubles ------------------------------------------------------------ Subsequent to the downgrade of Argentina's foreign currency ceiling to Caa3 from Caa1, Moody's Investors Service lowered ratings for the issuers listed below: - Mastellone Hermanos S.A. Senior Implied to Caa3 from Caa1 Issuer Rating to Caa3 from Caa1 $225 million senior unsecured notes, due 2008, to Caa3 from Caa1 - Compania de Alimentos Fargo S.A. $120 million senior unsecured notes, due 2008, to Caa3 from Caa2 - Acindar Industria Argentina de Aceros S.A. Senior Implied to Caa3 from Caa1 Issuer rating to Caa3 from Caa1 $100 million of 11.25% senior notes, due 2004, to Caa3 from Caa1 - IMASAC S.A. Senior Implied to Caa3 from Caa1 Issuer rating to Caa3 from Caa1 $80 million senior unsecured global bonds, due 2005, to Caa3 from Caa1 - Industrias Metalurgicas Pescaroma SAIC Senior Implied to Caa3, from Caa1 Issuer rating to Caa3, from Caa1 $150 million of aggregate 9.5% senior unsecured Global Notes, due 2002, to Caa3, from Caa1 - Global MTN Program to Caa3/Not Prime, from Caa1/Not Prime - CableVision S.A. Senior implied to Caa3 from Caa1 Issuer rating to Caa3 from Caa1 $525 million aggregate of senior unsecured notes to Caa3 from Caa1 $425 million Global MTNs to Caa3 from Caa1 - Multicanal S.A. Senior implied to Caa3 from Caa1 Issuer rating to Caa3 from Caa1 MTN program to Caa3 from Caa1 $687.5 million aggregate of senior unsecured notes to Caa3 from Caa1 - Disco S.A. $100 million 9.125% senior notes, due 2003, to Caa3 from Caa1 $250 million 9.875% senior notes, due 2008, to Caa3 from Caa1 - Coto Centro Integral de Comercializacion S.A. $300 million global medium term note program to Caa3 from Caa1 - Supermercados Norte S.A. 10.875% senior notes, due 2004, t The outlook on these ratings is stable, consistent with the stable outlook on Argentina's foreign currency ceiling. New York Michael Rowan Managing Director Corporate Finance Group Moody's Investors Service JOURNALISTS: (215) 967-6233 SUBSCRIBERS: (215) 967-6233 New York Daniel Gates Senior Vice President Corporate Finance Group Moody's Investors Service JOURNALISTS: (215) 967-6233 Moody's Downs LT Foreign Bonds, Deposit Ratings At 15 Banks ----------------------------------------------------------- Moody's Investors Service downgraded the long-term foreign currency bond and deposit ratings of all the rated Argentine banks listed below. The rating actions follows the agency's announcement that it had lowered Argentina's foreign currency country ceiling for bonds and notes and the foreign currency country ceiling for long term bank deposits to Caa3. The outlook is stable. - Banco Rio de la Plata, S.A.: long- term foreign currency debt lowered to Caa3, with stable outlook; long-term foreign currency deposits and issuer rating lowered to Caa3, with stable outlook; - Banco R︽ de la Plata, S.A., New York branch: long term foreign currency debt lowered to Caa3, with stable outlook; - Banco R︽ de la Plata, S.A. Grand Cayman: long term foreign currency debt lowered to Caa3, with stable outlook; - BBVA Banco Frances, S.A.: long- term foreign currency debt lowered to (P) Caa3, with stable outlook; long-term foreign currency deposits and issuer rating lowered to Caa3, with stable outlook; - Banco de Galicia y Buenos Aires, S.A.: long- term foreign currency debt lowered to Caa3, with stable outlook; long-term foreign currency deposits and issuer rating lowered to Caa3, with stable outlook; - Banco de Galicia y Buenos Aires, S.A. (New York): long-term foreign currency debt lowered to Caa3, with stable outlook; - Banco Hipotecario, S.A.: long- term foreign currency debt lowered to Caa3, with stable outlook; long-term foreign currency deposits and issuer rating lowered to Caa3, with stable outlook; - HSBC Bank Argentina, S.A.: long-term foreign currency deposits lowered at Caa3, with stable outlook; - Banco de la Provincia de Buenos Aires: long-term foreign currency deposits lowered to Caa3, with stable outlook; - BankBoston, N.A. (Argentina Branch): long-term foreign currency deposits lowered to Caa3, with stable outlook; - Citibank, N.A. (Argentina Branch): long- term foreign currency debt lowered to Caa3, with stable outlook; and long-term foreign currency deposits lowered to Caa3, with stable outlook; - Banco de la Nacion Argentina: long-term foreign currency deposits lowered to Caa3, with stable outlook; - Scotiabank Quilmes, S.A.: long- term foreign currency debt lowered to Caa3, with stable outlook; and long-term foreign currency deposits lowered to Caa3, with stable outlook; - Banco Bansud, S.A.: long-term foreign currency debt lowered to Caa3, with stable outlook; long-term foreign currency deposits lowered to Caa3, with stable outlook; - Banco de la Ciudad de Buenos Aires: long-term foreign currency debt lowered to Caa3, with stable outlook; long-term foreign currency deposits lowered to Caa3, with stable outlook. The actions do not affect the bank financial strength ratings of the rated Argentine banks. New York Gregory W. Bauer Managing Director Financial Institutions Group Moody's Investors Service New York Jeanne Del Casino Vice President - Senior Analyst Financial Institutions Group Moody's Investors Service ============= B O L I V I A ============= LAB: Bolivian Government Applauds Vasp Withdrawal From Market ------------------------------------------------------------- The decision of the Brazilian aviation company Vasp to pull out of the Bolivian market got the support of the Bolivian government, La Razon reported October 10. The Bolivian authorities believed that Vasp's withdrawal from the local market is the only way to solve the problems caused by the airline. VASP had announced that it would sell its 50-percent ownership in Lloyd Aereo Boliviano (LAB), cutting off all ties from the Bolivian company with which it has been involved since December 1995 through an original investment of $47 million. The authorities also said that LAB has good reason to cancel the contract with its Brazilian partner considering the allegations presented at the Cochabamba shareholders meeting. LAB, which is now on the verge of bankruptcy, has estimated debts of US$50 million and 5 airplanes have stopped operating entirely. The Bolivian government ruled out selling off its interest in LAB to Vasp in order to pay debts with Bolivida (insurance). LAB generates annual sales of US$160 million. According to the government, 2 other companies have shown interest in a partnership with the Bolivian airline =========== B R A Z I L =========== EMBRAER: Shares Up On Purchase Announcement By China Southern ------------------------------------------------------------- Shares of Embraer rose on Thursday, a move perceived by analysts as a reflection of the China Southern Airlines' interest in buying at least 20 ERJ-145 aircraft from the Brazilian aircraft manufacturer, O Globo said in a report. Embraer's preferred shares rose 9.2 percent, the biggest increase since last month's terrorist attacks in the US. Ordinary shares rose by 7.7 per cent, while in the US, the company's ADRs (American Depository Receipts) gained 6.54 per cent. Andre Querne, an analyst at asset management company Maxima, said that if Embraer does win the order, its shares might start to recover. Embraer's preferred shares accumulated losses of 33.78 per cent between 11 September and 11 October 2001. The air transport sector crisis has forced the company to cut 1,800 jobs and estimate a loss of revenue of $700 million in 2001 and $1.2 billion in 2002. The company's shares have lost more than half their value since the beginning of the year amid a sharp downturn in the aviation industry. CONTACT: Milene Petrelluzzi of Embraer, in Brazil Phone: 55-12-345-3054 e-mail: milene.petrelluzzi@embraer.com.br Anna Cecilia Bettencourt Investor Relations of Embraer S.A., in Brazil 55-12-345-1106, or e-mail: acecilia@embraer.com.br MOULINEX: Bidders Improve Offers While Court Readies Decision ------------------------------------------------------------- The best-placed bidders for the French electrical appliances group Moulinex improved their offers, as the Nanterre commercial court prepares to decide on the group's future. According to a report in Le Figaro Friday, Moulinex's competitor SEB SA and the Fidei investment fund submitted new proposals to the court, but inside sources claimed these changes are `minor' and do no include any further Moulinex production sites. With regards to the group Euroland, which had said that it wanted to takeover all of Moulinex, the court said that it had heard nothing more. The Nanterre court will consider the bidders' new proposals on 16 October. Moulinex's fate, including its Brazilian operations, is expected to be decided at a public hearing of the court on either Wednesday or Thursday. ============= E C U A D O R ============= BANCO DEL PACIFICO: Arrest Warrant Issued For Finance Minister -------------------------------------------------------------- Ecuador's supreme court issued an arrest warrant Friday for Finance Minister Jorge Gallardo over allegations of irregularities he committed while he was executive president of Banco del Pacifico, according to a report in AP. The Supreme Court President Galo Pico issued the warrant based on an attorney general's investigation of Banco del Pacifico. Prosecutors allege that Gallardo set up a business trust on behalf of Banco del Pacifico shareholders to improperly transfer $78 million of past- due loans and debts to state-run Filanbanco bank before Pacifico was taken over by government regulators. Pacifico is one of 17 banks that has been taken over by the government since 1998, when the near-collapse of Ecuador's corruption-ridden banking system deepened an economic slump, set off hyperinflation and caused the country's worst financial crisis since the 1930s. Gallardo, in the wake of the allegations, resigned Thursday as Ecuador's Finance Minister. President Gustavo Novoa has accepted his resignation and appointed economist Carlos J. Emanuel (ex- director of the Central Bank) to replace him, though the exact date for accession remains unknown yet, the president's office said. =============== H O N D U R A S =============== GEOMAQUE EXPLORATIONS: Financial Restructuring Progressing Well --------------------------------------------------------------- In an official press release, Geomaque Explorations Ltd. (the "Company") announced that it has made an arrangement with its principal lender, Resource Capital Fund II L.P. ("RCF") and certain creditors whereby a total of $2,922,000 of debt owing to these creditors has been eliminated by the payment to these creditors of $825,000 and the provision of certain other consideration. The Company obtained the $825,000 as a result of the exercise by these creditors of the outstanding Warrant B, originally issued to RCF in connection with its financing of the Company. As part of the arrangement, RCF transferred Warrant B to these creditors. The exercise of the warrant resulted in the issuance to these creditors of a total of 17,471,556 common shares. - Butler Machinery Co. ("Butler") provided construction equipment to Geomaque de Mexico S.A. de C.V. ("Geomaque Mexico") for use at Geomaque Mexico's San Francisco Mine in Mexico. As full settlement for outstanding amounts invoiced by Butler totaling $2,297,000, Butler has agreed to take payment of US$500,000 plus the proceeds in excess of $500,000 from the sale of certain equipment at the San Francisco Mine. Butler was also given contingent rights, first, to any royalty that may arise on the sale of the equipment and, second, a 1% NSR on any future gold production from the unmined resources in the main pit. No present value has been ascribed to these rights. Butler paid $500,000 on the exercise of part of Warrant B and received, pursuant to the terms of the warrant, 10,597,943 common shares of the Company. As a result, Butler currently owns approximately 14% of the 75,960,637 common shares now outstanding. Butler may increase or decrease its interest in the Company as market circumstances dictate. - Sococo de Costa Rica, S.A. ("Sococo") provides contract mining services to Geomaque de Honduras, S.A. d C.V. ("Geomaque Honduras") at Geomaque Honduras' Vueltas del Rio mine in Honduras. Geomaque Honduras currently owes Sococo approximately $2,000,000. As settlement of $600,000 of this amount, Sococo has agreed to take payment of $300,000 and, the Company has agreed on an arrangement for the payment of the remaining amounts owing over a period of time. Sococo paid $300,000 on the exercise of part of Warrant B and received, pursuant to the terms of the warrant, 6,344,874 common shares. - Haywood Securities Inc. ("Haywood") is the Company's financial advisor and is providing advice to the Company in respect of its financial restructuring. The Company has agreed to apply the $25,000 received from Haywood on the exercise of a part of Warrant B to reduce fees owing to Haywood by that amount. Haywood received 528,739 common shares pursuant to the terms of the warrant. Geomaque Explorations Ltd. is an international mining company that is producing gold from its Vueltas del Rio Mine in Honduras and San Francisco Mine in Mexico, and exploring for precious metals in the Americas. CONTACT: John Paterson, President and Chief Executive Officer, (416) 956-7470 =========== M E X I C O =========== AMERIJET INTERNATIONAL: HIG Eyes Majority Stake, Awaits Approval ---------------------------------------------------------------- US investment firm HIG Capital is looking to acquire a majority interest in the bankrupt Caribbean cargo airline Amerijet International, Air Transport Intelligence reported Wednesday. The looming acquisition is part of a restructuring plan the Florida- based carrier submitted on October 5 and is now being considered by a Florida court. Should Amerijet's creditors and the court approve the plan, HIG would acquire two-thirds of the company from its current owner and chief executive, David Bassett. HIG, in turn, would provide $3 million in cash and help secure the company new financing. HIG would also purchase Amerijet's Fort Lauderdale, Florida, headquarters and lease it back to the company. The company, which primarily serves the Caribbean, Mexico and South America, blames its rapid expansion into the net lease business for its bankruptcy and claims its niche in the small but profitable Caribbean cargo market remains viable. "Amerijet has consistently maintained that our core operation is viable," says Bassett. "We believe this reorganization plan provides the tools and additional resources to enable a seamless emergency from Chapter 11, including our ongoing business relationships and present employees." Amerijet hopes to emerge from bankruptcy protection at the end of November, just three months after declaring bankruptcy. AMERIJET INTERNATIONAL: To Surrender, Lease Back 5 Boeing 727s -------------------------------------------------------------- The bankrupt Caribbean cargo airline Amerijet International announced plans of giving up and leasing back five of its owned Boeing 727 freighters, according to a report October 10 in Air Transport Intelligence. "The aircraft we are operating are being voluntarily returned to the lenders and they have agreed to lease them back," says Amerijet's outside counsel, Steven Peretz of Miami firm Luger, Peretz and Kaplan. Before its August bankruptcy filing, Amerijet had 12 727s, 10 of which it owned. However, all the aircraft were heavily financed and Amerijet began missing payments earlier this year after a dramatic reduction in its wet lease business forced it to ground half of its fleet. According to Peretz, the carrier has since returned the two aircraft it had leased from South Trust and four of its ten owned aircraft that were financed by First Star and Providence banks. He said the carrier is still negotiating the return of a sixth aircraft still in its possession to Success Bank. But its two other lenders - First Source and Joda - have agreed in principle to take back their five aircraft and lease them to the restructured Amerijet. Joda is a new bank involved in the bankruptcy, having purchased the aircraft previously controlled by Pullman Bank. CINEMASTAR LUXURY: Company Profile ---------------------------------- NAME: CinemaStar Luxury Theaters, Inc. 7220 Avenida Encinas #203 Carlsbad, CA 92009 TELEPHONE: (760) 929-2525 FAX: (760) 929-2535 WEBSITE: http://www.cinemastar.com/ Email: corporate@cinemastar.com TYPE OF BUSINESS: CinemaStar Luxury Theaters, Inc. owns and operates multi-screen movie theaters in Southern California and Northern Mexico. Approximately 69 percent of the Company's revenues are derived from the sale of movie tickets, 29 percent from concession sales, and approximately 2 percent from the operation of video games and other revenues. The Company currently operates nine theaters with a total of 103 screens. SIC: SERVICES-MOTION PICTURE THEATERS [7830] EMPLOYEES (last reported count): 54 TRIGGER EVENT: CinemaStar voluntarily filed a petition to reorganize its business under chapter 11 of the U.S. Bankruptcy Code on January 4, 2001, after overbuilding in the motion picture theatre industry and the resulting intense competition for movie patrons caused the Company to incur significant losses. CHAIRMAN/CEO: Jack Crosby CFO: Donald H. Harnois, Jr. Contact no.: (760) 929-2525 Last TCRLA Headline DATE: Friday, October 12, 2001, Vol. 2, Issue 200 MAXCOM TELECOMUNICACIONES: Using Up Cash Fast --------------------------------------------- The arrival of Fulvio del Valle and his management team has quickly drained the cash box at Maxcom, suggests a report Friday in Mexico City daily Reforma. Of the $80 million the company had in their coffers at the beginning of this year, only $20 million remains. Fulvio's management moves have been very expensive for Maxcom, as has the decision to move operations to the high-rent Santa Fe district. The move apparently resulted in $2 million of out of pocket expenses, according to the report. CONTACT: Jose-Antonio Solbes of Maxcom Telecomunicaciones 525-147-1125, or email investor.relations@maxcom.com.mx; SL INDUSTRIES: Company Profile ------------------------------ NAME: SL Industries, Inc. 520 Fellowship Road, Suite A-114 Mt. Laurel, NJ 08054 TELEPHONE: (856) 727-1500 FAX: (856) 727-1683 WEBSITE: http://www.slpdq.com Email: info@slindustries.com TYPE OF BUSINESS: SL Industries, Inc. designs and produces proprietary advanced systems and equipment for the power and data quality industry. The Company's products include a wide range of standard and custom power supplies; customized power conditioning and power distribution units; motion control systems; electric utility equipment protection systems, and surge suppressors. These products are sold to original equipment manufacturers and incorporated into larger industrial equipment and systems, or sold through distribution for general retail or commercial use. SIC: ELECTRIC LIGHTING & WIRING EQUIPMENT [3640] EMPLOYEES (last reported count): 2,000 TRIGGER EVENT: SL Industries Inc. on October 10 announced it would take a $2.5 million charge and close a plant in Reynosa, Mexico, adding that it is defaulting on some credit agreements. It also announced plans of consolidating operations in its Mexicali, Mexico facility. The company planned to take the steps to offset a slowdown in the telecommunications market. The company has also advised banks that it will be in default of the financial covenants in the revolving credit facility for the quarter ended Sept. 30. The company is recently in talks to amend its financial covenants for the quarter and beyond. The company said it is too early to determine the outcome of the discussions with creditors, noting that its ability to continue operations as presently conducted will be adversely affected if a favorable agreement is not reached. CHAIRMAN/PRES./CEO: Owen Farren VP-FIN.& ADMIN./SEC.: David Nuzzo Last TCRLA Headline DATE: Friday, October 12, 2001, Vol. 2, Issue 200 To see company's latest financial statements: http://www.bankrupt.com/misc/SL_INDUSTRIES.pdf For further information, contact: SL Industries Inc. Owen Farren, 856/727-1500 www.slpdq.com or Neil Berkman Associates Neil Berkman/Melanie Beeler, 310/277-5162 (Investors) info@BerkmanAssociates.com VITRO: To Confront Enormous Debt In The Near-Term ------------------------------------------------- The Vitro group is facing a debt load of $519 million coming due in the next year, Mexico City daily Reforma reported Friday. That amount includes a debt of $227 million in short term maturities. According to Banamex analyst Claudia Medina, Vitro already has total debts of over $1.6 billion. The Vitro administration is on record saying their intention is to defer these loans, so as not to have payments concentrated in a single year, a strategy they are already carrying out with a $235 million credit facility obtained in August for refinancing short-term loans. XEROX: Reports Better Results Despite Latin American Troubles ------------------------------------------------------------- Xerox Corporation announced Friday preliminary third-quarter results that include an estimated $3.8 billion to $4 billion in revenue and a loss in the range of 22 to 25 cents per share, before net restructuring charges of 5 cents. Results were impacted by a number of factors including a reduction of approximately 9 cents due to currency losses from unhedged exposures, a tax rate change, and a property insurance deductible related to Sept. 11 losses. "In many regards, Xerox's performance in July and August exceeded expectations and we were well positioned to meet our third- quarter targets," said Anne M. Mulcahy, Xerox president and chief executive officer. "However, the events of Sept. 11 resulted in a significant impact on sales for the balance of the month - typically the strongest two weeks of the quarter. "We continue to aggressively implement our cost-reduction initiatives and focus on operational improvements. With further progress expected in these areas, we remain cautiously optimistic for a return to operational profitability in the fourth quarter," added Mulcahy. The company also reported continued progress in strengthening its liquidity. After the repayment of approximately $350 million in third-quarter maturing debt, Xerox had $2.4 billion in cash at the end of September, compared to $2.2 billion at the close of the second quarter. Xerox had cited problems at some of its Latin American operations for revised sales and profit forecasts in the past. The company revised restated earnings for the past three years in May because some accounting practices were misapplied. Mulcahy also has said the debt crisis in Argentina, which weakened currencies in neighboring Brazil and Chile, has eroded profit. Xerox continues to be in full compliance with its debt covenants and expects the consolidated tangible net worth cushion to be approximately $200 million. Xerox will report its full third-quarter results on Oct. 23, 2001. CONTACT: Media Contacts: Xerox Corporation Christa Carone, 716/423-5074 christa.carone@usa.xerox.com Bill McKee, 716/423-4476 bill.mckee@usa.xerox.com =============== P A R A G U A Y =============== ANTELCO: Workers Want Parity In Bidding Race -------------------------------------------- Workers at Paraguay's state-run telephone company National Telecommunications Administration (Antelco) are seeking equality from the government authorities regarding the competition for an interest in Antelco, South American Business Information reported October 9. Workers have requested transparent conditions, as they don't have enough information to make an offer, while other interested parties like Telefonica are already aware of terms and conditions. They are complaining about the fact that the sale is being advised by a Spanish bank (Santander) and a Spanish advertising agency (Sanchis & Asociados). ======= P E R U ======= PROCACAO: Refinancing Debt To Get Back In The Black --------------------------------------------------- Procacao, a Peruvian candies producer, will attempt to refinance US$44 million in debts over a 10-year term at an annual interest rate of 8 percent, South American Business Information reported October 9. Accordingly, the restructuring plan drawn up by the company will be analyzed by its creditors within the next months. Procacao was prompted to refinance its debts after sales fell nearly 50 percent between 1999 and 2000, from US$31 million to US$16 million. Procacao reported sales of US$5 million for the period between January and May 2001, with a negative stockholders' equity of US$16 million. After its restructuring, Procacao expects sales to reach US$18.5 million at first, reaching US$22.5 million per year within a 10- year term. The company expects to be profitable as of the 4th year, reaching US$12 million in annual profits within 10 years. 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 American is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. John D. Resnick and Edem Psamathe P. Alfeche, Editors. Copyright 2001. 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 * * *