/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/011204.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, December 4, 2001, Vol. 2, Issue 236 Headlines A R G E N T I N A BANCO FRANCES/BANCO RIO: Fitch Cuts Ratings Siting Uncertainty CAPEX: S&P Lowers Rating To 'CCC+'; Outlook Negative ENRON: Argentine TGS Asset Remain Stable Despite Recent Problems FERRUM: Calls In Receivers With Over $30M In Debt IMPSAT: Moody's Cuts Sr. Unsecured Debt Ratings From Caa3 to C IMPSAT: Concludes Partial Acquisition of Americatel B R A Z I L BANCO ECONOMICO: CB To Re-sell Ciquine At A Lower Base Price CVRD: Wins Concession of Santa Isabel Hydroelectric Power Plant EMBRATEL: Stocks Up Following New Telecom License Rules ENRON: LA Assets Could Go On The Block To Cover Losses ENRON: S&P Cuts Elektro Ratings On Parent Company Woes ENRON: Brazilian Asset Sale May Bring In $610M USIMINAS: Shares Gain 7.1% To 5.70 Reals, May Rise Even Further C H I L E AERO CONTINENTE: Chilean Branch Announces Plan To Cut More Jobs TELEX-CHILE: Southern Cross Presents Offer For Chilesat C O L O M B I A CAJACOOP: Clients Offered 55% Owed Or Risk Getting Nothing M E X I C O AHMSA: New CFO, COO Positions Still Vacant; Search Continues GRUPO MEXICO: Asarco To Cut Copper Output, Eliminate Jobs GRUPO MEXICO: Shares Up On Expectations Of Debt Fulfillments GRUPO SIDEK: Banamex Outbids Other Creditors In Recent Auction MCMS INC.: Plexus Acquisition Will Not Include Mexican Plant TRIBASA: Creditors' Demand Financial Audit P E R U SAYAPULLO: Three Foreign Groups Seek Alliance V E N E Z U E L A ENRON: Bankruptcy May Cancel Venezuelan Investment Plans - - - - - - - - - - - - ================= A R G E N T I N A ================= BANCO FRANCES/BANCO RIO: Fitch Cuts Ratings Siting Uncertainty -------------------------------------------------------------- Fitch lowered Friday selected individual bank ratings on Argentine banks as indicated below. In previous actions, Fitch had lowered the long and short-term debt ratings of the banks it follows to 'CC' and 'C', respectively, and these ratings remain at that level, indicating that significant uncertainty remains as to the possible imposition of further measures that may be necessary in the short term if, as seems likely, markets continue skeptical that first portion of the debt swap, scheduled for completion today, will not, by itself, stem the downward spiral of confidence that has led to accelerated deposit withdrawals and to stratospheric interest rates in the local interbank market. The change in the individual ratings detailed below reflects the further heightening of systemic risk given a higher possibility of drastic measures that may restrict all banks' actions, such as exchange or deposit restrictions, and/or the potential for a change in the currency regime presently in place, including the potential for a devaluation. Already, the Argentine legislature voted into law a measure that significantly restricts the flow of federal tax revenues to the provinces, and such flows have provided the security behind the banks' financing of the country's provinces. The eventual imposition of further restrictions seems increasingly likely, and Fitch will continue to closely watch these developments, which may lead to further rating actions as events evolve. Ratings affected: BBVA Banco Frances --Short-term affirmed 'C'; --Long-term affirmed 'CC', Rating Watch Negative; --Individual rating downgraded to 'D' from 'C/D'; --Support affirmed '3T'. Banco Rio de la Plata --Short-term affirmed 'C'; --Long-term affirmed 'CC', Rating Watch Negative; --Individual rating downgraded to 'D' from 'C/D'; --Support affirmed '3T'. CAPEX: S&P Lowers Rating To 'CCC+'; Outlook Negative ---------------------------------------------------- Standard & Poor's lowered Friday its corporate credit rating on CAPEX S.A. to triple-'C'-plus from single-'B'-minus. At the same time the rating was removed from CreditWatch where it was placed on October 10, 2001, after the downgrade of the sovereign ratings of the Republic of Argentina. The outlook is now negative, reflecting the still high refinancing risk stemming from high debt maturities taking place in 2002. The rating action is based on the high refinancing risk taking place within a very constrained economic and financial environment related to the sovereign crisis, which is reflected in the substantial increase in interest rates and the liquidity crunch. Standard & Poor's expects that CAPEX will refinance its debt maturities taking place in December 2001, partly helped by CAPEX's liquid financial assets (short-term bank deposits). However, the high debt maturities in 2002 (approximately $190 million) pose uncertainties regarding the terms of the refinancing, including the level of interest rates that could strongly affect the company's cash generation. CAPEX's primary business is the generation of electricity in the Comahue Region in southwest Argentina. Its thermal plant, with six gas-fired units and one steam unit aggregating an installed nominal capacity of 657 megawatts (MW), represents approximately 3% of total installed capacity in the Sistema Argentino de Interconexion (SADI). The SADI is a nationwide interconnected system that supplies about 92% of electricity demand in Argentina. CAPEX is one of the lowest-cost thermal operators in the system because most of the gas supplied to its plant comes from its own gas reserves, which ensures a high level of dispatch into the system. However, the level of dispatch of its power plant has been reduced during 2001 (17% in the 10-month period ended in October 2001 if compared to the same period of 2000), by an unusually high level of hydrogeneration in the Comahue region. OUTLOOK: NEGATIVE CAPEX's negative outlook reflects the still high refinancing risk stemming from high debt maturities taking place in 2002. CONTACT: Standard & Poor's Sergio Fuentes, Buenos Aires (54) 114-891-2131 or Lidia Polakovic, Buenos Aires (54) 114-891-2130 ENRON: Argentine TGS Asset Remain Stable Despite Recent Problems ---------------------------------------------------------------- Transportadora de Gas del Sur SA (TGS), a pipeline joint venture between Enron Corp and Perez Companc SA, will not be affected in light of the recent events involving Enron, AFX-Europe reports. "Solid principles that have helped build up TGS' business, such as the stability of its revenue stream, the predictability of its cash flow generation and the excellence with which the company conducts its pipeline operations to ensure maximum-quality gas public service, will remain unaltered despite any degree of financial problems that one of its shareholders may face," the Argentine company said. Both cash flow generation capacity as well as access to different sources of financing "are absolutely independent from Enron's financial position, and instead are exclusively based on TGS' own operational and financial capabilities," the Company added. The pipeline operator also said, "at this point in time there are no financial transactions between TGS and any of its major shareholders," adding that "there is no existing covenant arising from its outstanding loans, associated to the financial condition of one of its shareholders." TGS operates South America's biggest gas pipeline, which stretches more than 4,125 miles (6,600 km) from Argentina's southernmost Tierra del Fuego to Buenos Aires. It has a capacity of up to 2 billion cubic feet (56 million cubic meters) of natural gas per day. TGS turned over 479.7 million pesos in 2000; its net profit was 126.3 million pesos. The company reports assets of 2.112 billion pesos and a long-term liabilities of 745 million pesos. To see company's financial statement: http://www.bankrupt.com/misc/Enron.pdf CONTACT: Mark Palmer of Enron Corp., +1-713-853-4738 FERRUM: Calls In Receivers With Over $30M In Debt ------------------------------------------------- Despite efforts to stave off a possible collapse, Ferrum, the manufacturing company, which specializes in bathroom fittings, called in the receivers, reports El Cronista. In September, the Company reduced salaries in a bid to save $90,000 a year, and reduced production in its plants in Buenos Aires province. Ferrum also had planned to increase exports. However, all these measures were not enough to counter its financial woes. The Company reportedly owes over $30 million to banks. Primary bank creditors include Banco Frances, Rio and Banca Nazionale del Lavoro. In Argentina, Ferrum, controlled by the German group FV, is the leader in the sector with over 60 percent market share. IMPSAT: Moody's Cuts Sr. Unsecured Debt Ratings From Caa3 to C -------------------------------------------------------------- Concluding its review on Impsat Fiber Networks Inc. initiated on October 3, 2001, Moody's lowered the Latin American broadband and telecommunication network operator's senior unsecured debt ratings. Ratings downgraded were: - US$125 million, 12.125% guaranteed senior notes due 2003 to `C' from `Caa3' - US$225 million, 12.375% senior notes due 2008 to `C' from `Caa3' - US$300 million, 13.75% senior notes due 2005 to `C' from `Caa3' The ratings agency instigated the downgrades citing "Impsat's recent statement that under its current business plan for fiscal year 2001 its cash flows and liquidity will be insufficient to satisfy its obligations beyond the end of 2001 and that the company may be required to restructure its balance sheet." These and other events "raise substantial doubts about (Impsat's) ability to continue as a going concern for a reasonable period of time," said Moody's. As of September 30, 2001, Impsat reported cash and investments of approximately US$94 million and net capital assets of about US$658 million to support total debt obligations of approximately US$1.0 billion, of which US$270 million was vendor debt. Given the economic weakness in Latin America, Moody's questions the ability of IMPSAT to raise additional capital. "In addition, with the depressed market value for telecommunication assets, we believe that unsecured creditors face poor recovery prospects in a distress scenario," Moody's said. New York Michael Rowan Managing Director Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York John Page Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 IMPSAT: Concludes Partial Acquisition of Americatel --------------------------------------------------- Argentine telecommunications company Impsat Fiber Networks acquired some of the clients and assets of its Colombian counterpart Americatel, reports Ambito Financiero. According to Impsat sources, the transaction valued at $7.5 million does not constitute a complete acquisition, but is a transfer of clients and some related assets. Following Impsat's acquisition of Americatel, the Company will effectively control the majority of the Colombian data transmission market. Americatel controls 12 percent of the Colombian market, almost 50 percent of which will now be controlled by Impsat. The Colombian market records an estimated annual turnover of some $150 million. IMPSAT accounts for $50 million - $60 million of this figure and expects to record an additional $10 million. To see company's latest financial statement: http://www.bankrupt.com/misc/Impsat.doc =========== B R A Z I L =========== BANCO ECONOMICO: CB To Re-sell Ciquine At A Lower Base Price ------------------------------------------------------------ Brazilian petrochemicals firm Ciquine, one of the last assets of bankrupt bank Economico that are being sold off by Brazil's Central Bank, will be auctioned again as early as December 17, reports Business News Americas. The new auction was set following last week's failed attempt to sell the Brazilian firm at a base price of 40.2 million reais (US$16 million). The two qualified bidders, Elekeiroz, of Brazil's Itausa group and Petroquimica Mogi das Cruzes (Petrom), didn't present bids thinking that the minimum price was too high. According to Natalicio Pegorini, appointed by Brazil's Central Bank to liquidate Banco Economico, the minimum price could be reduced by up to 20 percent from the previous figure. The Central Bank is selling Economico-owned holding company Esae Petroquimica, which owns a 56.31 percent stake in Conepar, which in turn controls 82.1 percent of Ciquine. The bidder must also acquire the 11.8 percent stake in Conepar owned by Brazil's national development bank BNDES. Elekeiroz director Reinaldo Rubbi said the sale would be more attractive if the Central Bank just sold the direct stake in Ciquine, without the intermediaries. Meanwhile, Brazil's Odebrecht Quimica has filed an injunction to halt the sale saying it should be allowed tag-along rights to sell its 31.92 percent stake in Conepar in conjunction with Economico's stake. CVRD: Wins Concession of Santa Isabel Hydroelectric Power Plant --------------------------------------------------------------- The Grupo Empresarial Santa Isabel, formed by Companhia Vale do Rio Doce -- CVRD (43.85%), Billiton Metais S.A. (20.60%), Alcoa Aluminio S.A. (20.00%), Votorantim Cimentos Ltda. (10.00%) and Camargo Correa S.A. (5.55%), won a public concession to build and explore the Santa Isabel hydroelectric power plant. The concession was auctioned Friday, November 30, 2001, by Agencia Nacional de Energia Eletrica (ANEEL). Th 35-year postponable concession stipulates that the power plant must be operating within a maximum time limit of 84 months from the date of the contract being signed. The price paid for this concession involves annual installments of R$61 million from the seventh to the thirty-fifth year of the concession. The Santa Isabel power plant will be located in the Araguaia river, in the districts of Palestina do Para (state of Para) and Ananas (state of Tocantins), and will have a generating capacity of 1,087 MW. According to the strategic guidelines stated in the press release dated October 25, 2001, power generation is one of the core businesses of CVRD. Considering Santa Isabel, CVRD now participates in nine hydroelectric power plants, with total installed capacity of 3,364 MW and total investment of US$ 1.7 billion, of which 45% corresponds to CVRD's stake. EMBRATEL: Stocks Up Following New Telecom License Rules ------------------------------------------------------- Embratel Participacoes SA stocks rose 4.9 percent to 10.70 reais, as the Brazilian telecommunication regulator eased restrictions on telecommunication licenses, reports Bloomberg. Anatel, as the agency is known, said Embratel will not have the obligation to meet a covering target that was previously set in order to expand its services to the local market. "Embratel was the biggest beneficiary with these new rules," said Rodrigo Pereira, analyst at Banco Pactual SA. "Embratel can expand its services and still focus on corporate clients that have higher average revenue." With the small spike, shares at Brazil's largest long-distance telephone company still accumulated a 64 percent loss for the year. To see company's financial statements: http://www.bankrupt.com/misc/Embratel.pdf CONTACT: Embratel Participacoes S.A. Investor Relations Silvia M.R. Pereira, (55 21) 2519-9662 fax: (55 21) 2519-6388 invest@embratel.com.br or Press Relations Wallace Borges Grecco, (55 21) 2519-7282 fax: (55 21) 2519-8010 cmsocial@embratel.net.br ENRON: LA Assets Could Go On The Block To Cover Losses ------------------------------------------------------ Enron holds a number of investments in Latin America, according to a report in Business News Americas. The report reveals that some of these investments are "crown jewel" assets of considerable strategic importance. The regional assets are: BRAZIL - Gaspart, a wholly-owned subsidiary with interests in seven state natural gas distributors. - 90 percent of power distributor Elektro, which serves 1.6 million customers in the state of Sao Paulo. - 100 percent of the US$250 million, 380MW Eletrobolt merchant power plant in Brazil's Rio de Janeiro state. - 58.8 percent of the 480MW thermoelectric power plant in Cuiaba, Mato Grosso state, and 56.25 percent of the Brazilian section of the pipeline serving it, and 50 percent of the Bolivian section of the line. Partners are Shell, which has the other 50 percent of the Bolivian section and the remaining 43.75 percent of the Brazilian section, as well as 28.1 percent of the plant itself. Investment company LJM holds the remaining 13 percent of the plant. - 25.4 percent of Rio de Janeiro gas distributor Ceg, where main partners are Iberdrola and Gas Natural SDG. ARGENTINA - 100 percent of the 70MW Modesto Maranzana thermoelectric plant, - Along with local power company Perez Companc, Enron owns Ciesa, which owns 70 percent of the 4,104 mile, 2 billion cfpd TGS natural gas pipeline. - Natural gas and electric power marketing businesses. BOLIVIA - 25 percent of Bolivian transport company Transredes, which owns 51 percent of the Bolivian side of the pipeline (GTB) and 12 percent of the 3,000km Brazilian side (TBG). It also has a direct 17 percent stake in GTB and a direct 4 percent in TBG. PANAMA - 51 percent of the 355MW Bahia Las Minas thermoelectric plant DOMINICAN REPUBLIC - Smith Enron owns a fuel oil-fired 185MW combined cycle power barge at Puerto Plata GUATEMALA - 50 percent of the Puerto Quetzal plant and 50 percent of a 124MW power barge in the same city. MEXICO - 49.9 percent of water utility Desarollos Hidraulicos de Cancun and 49 percent of water utility Industrias del Agua (IASA), which serve Quintana Roo state and the Federal District respectively. NICARAGUA - 35 percent of the 70.5MW Corinto power barge, where its partners are Britain's CDC and Guatemalan company Centrans. PUERTO RICO - 50 percent of the 507MW Ecoelectrica gas-fired cogeneration plant that has the capacity to serve 20 percent of the island's needs and is building an LNG receiving terminal. Edison Mission is the other shareholder. - The company also has a stake in San Juan Gas, which has a 32km underground distribution system in San Juan, and 100 percent of the ProCaribe LNG storage terminal and propane distributor Progasco. COLOMBIA - 50 gas pipeline from Barrancabermeja to Ballena on the Caribbean coast. Enron owns part of local company Promigas, which owns the remaining 50 percent as well as a number of other gas pipelines totaling 63 percent of all gas lines in the country. VENEZUELA - Enron forms part of the Accroven consortium developing natural gas liquids extraction (NGL) facilities at the San Joaquin and Santa Barbara gas fields, and NGL fractionation, storage and refrigeration facilities at Jose on Venezuela's northeastern coast. - 97 percent of LPG distributor Ventane, 40 percent of the Bachaquero compression station and through Ventane, 94 percent of electricity distributor Calife. Business News Americas says Enron is likely to sell some of these assets to cover its distressing financial condition and bankruptcy reorganization, but details of any sell-off will not be available until either the company or its creditors set a course to resolve the situation. A likely outcome, according to Fitch analyst Ralph Pellecchia, is still not clear and has sparked a lot of conjecture, with the scale of the debate stemming from the complexity of the business. ENRON: S&P Cuts Elektro Ratings On Parent Company Woes ------------------------------------------------------ Eletricidade e Servicos SA (Elektro), the biggest Brazilian affiliate of U.S. energy giant Enron Corp., reassured its 1.6 million customers that it would continue to operate despite the near collapse of its parent company, reports Reuters. In a short statement, Elektro explained that it worked apart from Enron and its operations would not be affected by any reorganization of the U.S. firm. "Quality of customer service is a priority for Elektro, whose operation is structured independently so as to guarantee continuity and efficiency in offering services and meeting obligations in its concession contracts," the statement said. However, the Company's statement was challenged by a cut on its rating by Standard & Poor's. S&P slashed Elektro's rating to brBB- from brA+ to reflect the problems of its parent company. The credit rating agency placed Elektro on credit watch along with Enron saying its financial position had already been hurt and doubts had emerged about how the company would finance future projects. "The lifting of the credit watch on Elektro will depend on the lifting of the credit watch on Enron and the sale of Elektro," S&P said in a statement, adding that there will also be a need to clarify on how Elektro will raise cash from now on. Enron bought Elektro for $1.3 billion in mid-1998. The firm operates in Sao Paulo, Brazil's richest state. ENRON: Brazilian Asset Sale May Bring In $610M ---------------------------------------------- Embattled Houston-based energy trader Enron Corp. may be able to raise as much as $610 million from the sale of its assets in Brazil, according to analysts' and investors' estimates, reports Bloomberg. The assets on the table include Rio de Janeiro-based power plants Eletrobolt and RioGen. Sale of the plants, according to Marcos Severine, a power utility analyst at Sudameris Corretora, may bring in Enron as much as $190 million and $220 million, respectively. "They would sell those assets to make a quick buck," said Severine. Enron may also be able to raise $200 million from the sale of stakes in two natural gas distributors, said a spokesman for Petros, the employee pension fund of Petroleo Brasileiro, which is bidding for one of the companies. Brazilian energy regulators already have approved the sale, though it still requires backing from antitrust regulators. USIMINAS: Shares Gain 7.1% To 5.70 Reals, May Rise Even Further --------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais SA shares rose for the first day in five, gaining 7.1 percent to 5.70 reais, relates Bloomberg. The Brazilian steelmaker's stock price still shows a 35 percent loss for the year. "Usiminas shares have fallen a lot mainly because people were expecting the power rationing would affect the company's results. Third quarter numbers showed the impact was reduced," said Cristiane Viana, analyst at BES Securities. "There's still a lot of room to rise," the analyst added. Ms. Viana has a target price of 8.76 reais to Usiminas shares by June 2002, and recommends `buy'. ========= C H I L E ========= AERO CONTINENTE: Chilean Branch Announces Plan To Cut More Jobs --------------------------------------------------------------- The Chilean subsidiary of the Peruvian airline Aero Continente announced a plan to lay off 250 of its staff, leaving only 160 employees to maintain the airline's current domestic market share of a little under 5 percent, reports Air Transport Intelligence. Aero Continente Chile's planned job cuts follow the dismissal of 200 jobs after the airline was briefly grounded this summer amid investigations into allegations of money laundering. Several requests to put the airline under bankruptcy protection have been made due to unpaid salaries, outstanding debts with social security institutions and fuel suppliers reportedly reaching $17 million. Santiago's 28th Civil Court is currently evaluating the requests. TELEX-CHILE: Southern Cross Presents Offer For Chilesat ------------------------------------------------------- US-based investment group Southern Cross presented a bid for the control of Chilesat, the long distance and networking subsidiary of Chilean telecom holding company Telex-Chile, reports Business News Americas. Southern Cross is already a substantial Telex shareholder with 18.6 percent stake. The investment group is reportedly negotiating directly with banks and creditors who own 51 percent of Telex-Chile. Southern Cross has a shareholders' pact with the local Ibanez family, which also owns 18.6 percent. Other bidders for Chilesat include Miami-based AT&T Latin America, and local operators Manquehue Net and Grupo GTD. The Telex board was to have officially named the winner on November 30, but the announcement date has been delayed December 18. Chilesat defaulted on an US$8.9-million credit facility in April and the board subsequently recommended the sell-off after creditors refused to grant a 12-month reprieve. =============== C O L O M B I A =============== CAJACOOP: Clients Offered 55% Owed Or Risk Getting Nothing ---------------------------------------------------------- Clients of Caja Popular Cooperativa (Cajacoop), the Colombian bank under government intervention for the last four years, must accept 55 percent reimbursement from the government, suggests South American Business Information. Otherwise, they will never receive anything, and the caja or savings bank will then be liquidated. Cajacoop reportedly has negative equity of 83 billion pesos. The bank owes 16.5 billion pesos to the municipality of Cundinamarca, 5.1 billion pesos to Meta, 3.2 billion pesos to Boyaca, and 3 billion pesos to Arauca. The bank is now down to 140 employees from over 800 employees, and has just 20 branches from a total of 104 four years ago. =========== M E X I C O =========== AHMSA: New CFO, COO Positions Still Vacant; Search Continues ------------------------------------------------------------ Mexican steel company AHMSA is still looking for candidates to fill the position of CFO and COO, as it proceeds with its restructuring plans, says Mexico City daily Reforma. The report indicates that the steering committee will have the right to make appointments for the positions as it sees fit. The steering committee is led by the Bank of America, and consists of Banamex, under Manuel Medina Mora; BBVA-Bancomer, under Ricardo Guajoardo; Scotiabank-Inverlat, headed by Peter Cardinal; Banorte, run by Roberto Gonzallez Barera; and Bancomext, managed by Jose Luis Romero Hicks. One of the candidates being considered is TAMSA's Guillermo Voguel, who has held positions at Banamex and Bank of America. GRUPO MEXICO: Asarco To Cut Copper Output, Eliminate Jobs --------------------------------------------------------- Asarco Inc., a metals producer owned by Grupo Mexico SA, announced plans to cut copper output at two facilities and eliminate about 131 jobs in coming weeks, in a bid to boost prices by reducing supply, says Bloomberg. The Company, which Grupo Mexico bought for $2.25 billion two years ago, will reduce copper ore production at its Mission mining complex near Tucson by 23 percent beginning Jan. 1, said Clay Allen, a company spokesman. Asarco will also eliminate about 90 jobs, or 17 percent of the complex's workforce. Including previous cuts, production at the mine will have been reduced 61 percent since November 2000, Allen added. "These steps will provide us with the flexibility to adjust to the challenging copper market conditions," said Genaro Larrea, Asarco's president, in a statement. Asarco has also curtailed production of refined copper at its plant in Amarillo, Texas, by 29 percent, or 95,000 metric tons. That cut will eliminate about 41 positions, or 7.8 percent of the refinery's workforce. Overall, Asarco has lowered output of refined copper by 151,000 metric tons per year in the past 12 months, Allen said. GRUPO MEXICO: Shares Up On Expectations Of Debt Fulfillments ------------------------------------------------------------ Shares of the world's third-largest copper producer Grupo Mexico jumped 1.09 pesos, or 11 percent, to 10.69 pesos, coming off a seven-year low, reports Bloomberg. According to the report, a 15-percent increase in world copper prices over the last month may help the company meet debt payments. The news was welcomed after the company had missed an $84 million loan payment and was forced to set aside export revenue to meet payments on $600 million of bonds as part of a contractual agreement with bondholders. If U.S.-based subsidiary Asarco's plan to reduce output by 23 percent in January succeeds in further boosting copper prices, share prices are expected to follow suit. GRUPO SIDEK: Banamex Outbids Other Creditors In Recent Auction -------------------------------------------------------------- Sidek Credit Trust's recent auction of resort properties saw Mexican bank Banamex gaining more assets than competing creditors, says Mexico City daily Reforma. Banamex, headed by Roberto Hernandez, had been expected to play a large part in the auction, which facilitated the sale of 18 out of the struggling company's 29 packages of tourism properties, including hotels, golf courses, marinas, condominiums and land. The properties were sold for a total amount of US$183.5 million. Other creditors participating in the auction were Bancomer, under Vitalino Nafria, and Bital, led by Luis Berrondo. Meanwhile, whether Sidek will go ahead with the next round of auction as scheduled on December 6 is still unclear. Following the completion of this auction, the next one set for 2002 will include eight hotels being disputed by AMX Resort and directed by Bill L. Walters. The hotels are Las Glorias, in Cabo San Lucas, Continental Plaza Playacar, Continental Ixtapa, Continental Plaza and Hotel Sierra, in Cancun, Continental Plaza Las Glorias, in Cozumel, the Sierra Manzanillo and Nuevo Vallarta. A U.S. court is expected to decide this week whether to proceed with AMX Resort's appeal against Sidek. CONTACT: Arturo Perez Courtade, Legal Director, or Alejandro Giordano Trejo, Deputy Director, both of Grupo Sidek, S.A. de C.V., in Mexico, 011-523-678-5911 MCMS INC.: Plexus Acquisition Will Not Include Mexican Plant ------------------------------------------------------------ Plexus Corp. agreed to acquire five manufacturing plants from MCMS Inc., which filed for reorganization in U.S. Bankruptcy Court in September, for about $45 million in cash, the Associated Press reports. Plexus was the highest bidder in an auction for the assets but must still receive bankruptcy court approval at a December 4 hearing. The acquisition, which includes manufacturing plants in Penang, Malaysia; Xiamen, China; Nampa, Idaho; San Jose; and Raleigh, N.C., is expected to close by Jan. 8. A plant MCMS owns in Monterrey, Mexico, is not included in the transaction. According to MCMS chief financial officer Chris Anton, the Mexican operations will be sold separately to pay creditors in bankruptcy proceedings. TRIBASA: Creditors' Demand Financial Audit ------------------------------------------ An audit of the struggling Mexican construction company Tribasa began last week at the insistence of its creditors, reports Mexico City daily Reforma. The audit comes amid Tribasa's efforts to reach an agreement with its bank creditors to restructure the company through investment fund Advent. The results of the audit will provide a picture of the Mexican company's real financial situation and will be the basis of the legal proceedings currently under way. Already, Advent has met with the Bank of America, Bancomer and Bital-Atlantico, but the banks seem reluctant to drop their legal efforts. ======= P E R U ======= SAYAPULLO: Three Foreign Groups Seek Alliance --------------------------------------------- Two Canadian companies with Peruvian operations and a major Japanese buyer of minerals in international markets are looking to form an alliance with voluntarily insolvent Peruvian mining company Sayapullo, says Business News Americas. Accordingly, the unnamed parties are now carrying out due diligence and are expected to make a decision at the end of the year. In August, Sayapullo's shareholders approved a year-long restructuring of the company, including a delay in the search for a strategic investor. Sayapullo's problems started nearly three years ago when its mine in northern Peru was damaged by severe storms blamed on the El Nino weather phenomenon. ================= V E N E Z U E L A ================= ENRON: Bankruptcy May Cancel Venezuelan Investment Plans -------------------------------------------------------- Analysts expect that the bankruptcy filing by Enron will result in termination of its investment plans in Venezuela, Latin America's largest oil and natural gas producer, reports Bloomberg. The Company had been slated to invest three-quarters of the $700 million needed to build a liquid natural gas processing plant with state oil company Petroleos de Venezuela SA (PDVSA). PDVSA officials declined to comment on whether the plant, which would cool natural gas until it liquefies, would go on with a new partner. Enron, which also owns a small Venezuelan power company, pulled out of exploration in 2000 from an offshore block in the Gulf of Paria between Venezuela and Trinidad and Tobago. 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 * * *